HC Deb 22 May 1996 vol 278 cc283-5
10. Mr. Chris Davies

To ask the Secretary of State for Education and Employment what provisions have been made to restrict the profits that can be made by Capita for administration of the nursery voucher scheme. [29101]

Mrs. Gillan

Capita Managed Services Ltd. was awarded the contract to administer phase 1 of the nursery education voucher scheme through a competitive tender. That process ensures that the successful contactor offers the best value for money.

Mr. Davies

Does the Minister accept that head teachers in my constituency are concerned that public funds will go to private profits, while nursery provision in their schools faces the threat of disruption as a result of the introduction of vouchers next year? Does she accept that it is important that every three and four-year-old in this country has the opportunity of nursery provision? That will cost a great deal of money. Instead of gimmicks such as the scheme, would it not be better to ensure that proper provision is made through education authorities, funded, if necessary, by general taxation?

Mrs. Gillan

I am ashamed that Opposition Members have still not grasped the fact that the nursery voucher scheme is proving a great success. At every stage, the Opposition have tried to cast doubt on the scheme because they have nothing better to put in its place. Capita has successfully implemented phase 1 of the scheme. In fact, a report produced by the National Childrens Bureau, which was published in March, said: All four authorities felt their relationship with Capita was good. When problems had arisen, they had been solved. When mistakes were made, they had been put right quickly. There is certainly no need to impose a restriction on profits, since the competitive tendering process ensures that profits are not excessive.

Mr. Harry Greenway

Are not all parents and children aware of what is value for money and sound education? All concerned will be watching. Should we not remember that children are as diverse between the ages of three to five as they are at any later age? The diverse provision that the nursery education voucher scheme will inspire will therefore be valuable. If primary schools continue to attract children to their nurseries as they do now, they will lose nothing.

Mrs. Gillan

My hon. Friend is absolutely right. The voucher scheme pursues our policy of choice and diversity in all areas of education. The contractor for phase 1 was chosen specifically on the value for money and quality of services offered. The quality of Capita's proposals exceeded those of the other shortlisted candidates.

Mr. Stevenson

Capita continues to cream off its profits, but is the Minister aware that my constituents are concerned about the madcap scheme? If the Minister is serious in her projection that more nursery places will be available as a result of the scheme, will she give my constituents some assessment of how many extra places will be provided in Stoke-on-Trent and Staffordshire? Is not the scheme another bureaucratic, expensive and Government-inspired education red herring?

Mrs. Gillan

The hon. Gentleman must do his homework before he comes into this classroom. There are already 300 extra places in the phase 1 areas. I am really rather tired, as I am sure is the House, of the Opposition continually trying to cast slurs on Capita. The Capita group is the largest provider of managed services to the public sector. It is used to working with local education authorities and is responsible particularly for the SIMS software package, which is used by more than half the LEAs. The Opposition just cannot stand the scheme proving to be a great success.