§ 3.5 p.m.
§ Lord Graham of EdmontonMy Lords, I beg leave to ask the Question standing in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government whether legislation would be necessary to privatise the Crown Suppliers by way of—
- (a) flotation;
- (b) trade sale;
- (c) consortium sale;
- (d) deferred purchase.
§ Lord BelsteadMy Lords, it is too early to say. The Government are still considering reports on options for the future development of the Crown Suppliers.
§ Lord Graham of EdmontonMy Lords, I am grateful to the Minister. I am sure that he recognises that the different privatisation options in the Question are lifted directly from the terms of reference of the Coopers and Lybrand and Samuel Montagu study. Can the Minister tell us whether any estimate has been made of the costs if and when the Crown Suppliers were to be privatised in particular in relation to the increase of staff of other Government departments to take up the slack which will be left if privatisation takes place?
§ Lord BelsteadMy Lords, the report to which the noble Lord is referring is still being considered by my right honourable friend's department.
§ Baroness DavidMy Lords, is the Minister aware that there was a report by the Audit Commission in March of this year entitled Improving Supply 1036 Management in Local Authorities and that this report commends the use of the Crown Suppliers? When the Government are deciding what they will do in this matter will that report be taken into consideration?
§ Lord BelsteadMy Lords, the answer to that is certainly, yes. However, I should point out that as the Crown Suppliers operate as a trading fund it is possible that it is more appropriate for them to be in the private sector. That is what is being considered at the moment.
§ Lord Graham of EdmontonMy Lords, I am sure that the Minister is aware that 95 per cent. of the commodities supplied by the Crown Suppliers are British made. Will the Minister bear in mind—whatever the report advises—that the small businesses, in particular the sheltered workshops which are one of the main sources of supply, will be given preferential treatment and protection if any change is to be made?
§ Lord BelsteadMy Lords, I shall not go so far as that. I shall draw the attention of my right honourable friend to what the noble Lord, Lord Graham, has said.