HC Deb 19 January 1995 vol 252 cc839-40
7. Mr. McGrady

To ask the Secretary of State for Northern Ireland what assessment he has made of the effect of compulsory competitive tendering and market testing on the delivery of health and social services and job creation in Northern Ireland; and if he will make a statement.

Mr. Moss

Following a market test, contracts are monitored to ensure that they provide the specified service at the agreed cost. I understand that, overall, those contracts have maintained or improved services and have shown significant savings. Market testing is about the best way of providing services; it is not about job creation.

Mr. McGrady

I thank the Minister for his reply, which is totally at variance with the experience of the people of Northern Ireland. Subsequent to competitive tendering, the quality of services has been reduced, jobs have been lost and conditions in respect of future employment and tenure of office have deteriorated. Does not that show a fault in the Minister's research? I also draw the Minister's attention to the current attempt by the Down and Lisburn unit of management to extend compulsory competitive tendering well beyond the Department's remit to include matters such as security, porterage, telecommunications, ground maintenance, meals on wheels and so on, without consulting the Department. The board refuses to meet employees' union representatives. Will the Minister intervene immediately to remedy that impossible situation?

Mr. Moss

Market testing in the health and personal social services in Northern Ireland, in all material respects, is the same as in Great Britain. There are only minor procedural differences between the detailed implementation of the policy of market testing in Northern Ireland and in Great Britain. The real impact of market testing has been on costs. Until March 1994, for example, more than £60 million of support services have been market tested, with identified savings of more than £11 million per annum. That money has been retained and deployed by the HPSS for the benefit of patients.

Rev. Martin Smyth

Is it, therefore, Government policy to squeeze the wages of lowly paid workers and to reward chief executives and managers for so doing? Does not that policy militate against the hands-on care of people in the community as well as of those in hospital and add to demand on the social security budget?

Mr. Moss

It may have been true to say that market testing was piloted in certain ancillary services, but, since publication of the White Paper, "Competing for Quality", in November 1991, market testing has been expanded into all HPSS support services. In overall terms, it is true that efficiencies have been achieved and the number of directly-employed staff has been reduced. It should be made clear that not all categories of staff have been reduced. For example, in the period September 1990 to September 1993, medical staffing levels increased by 6 per cent.

Mr. Spellar

In view of the Minister's health brief he will be aware of clubs' concern at the delay in the publication of his consultative paper on licensing. When will he produce that paper, and will he ensure full consultation with all those concerned, especially the clubs?

Mr. Moss

The related reviews of the liquor licensing laws and on registered clubs have now been completed. I have taken decisions on the changes that I propose to make and I intend to issue a statement next week on the main changes to be contained in proposals for draft Orders in Council. Those will be published for consultation in due course.