§ 29. Mr. Peter AinsworthTo ask the Chancellor of the Duchy of Lancaster what steps the Government are proposing to increase competition in the provision of services paid for from public funds.
§ Mr. David HuntThey are many and varied.
§ Mr. AinsworthCan my right hon. Friend confirm that, whereas some Opposition Members seem to have grasped the political advantage of moving away from state monopolies for the provision of public services while others still seem possessed of a union-inspired fear of competition, no such confusion exists among Conservative Members? Will he continue to pursue with vigour his policy to bring down costs and improve services in the interests of the public and not of the public sector unions?
§ Mr. HuntYes, I am happy to reply in the affirmative to my hon. Friend. This has been a remarkably successful programme and it has produced cost savings of more than £400 million a year, which is an average of 20 per cent. That is excellent news for the taxpayer.
§ Mrs. RocheIn terms of the provision of services and the bringing down of costs through competition, did the Secretary of State's Department advise the Home Office about the contract for Group 4 to run Wolds prison, because Group 4 did not submit the lowest tender?
§ Mr. HuntIn the overall scheme of things, what matters is quality and value for money for the taxpayer. Generally, that can involve improvement in the quality of service. It is important to recognise that many of the savings were achieved as a result of tremendous effort by all the staff involved. That applies particularly where there was an in-house bid. We are in the current year now examining a further £860 million-worth of public services and a programme for another £250 million-with non-departmental public bodies. Value for money and an improvement in quality will result.