§ Mr. Rostasked the Secretary of State for Social Services if he has studied the proposal by South Derbyshire health authority to contract out heat services at its centralised laundry; what cost savings are expected; and what advice he is giving other health authorities on how they might achieve similar cost savings.
§ Mr. Kenneth ClarkeOfficials of our Department have held discussions with health authority officials about 589W these proposals, which the authority estimates may lead to savings of up to £30,000 a year. The Department issued a circular in September 1983 requiring health authorities to investigate the use of private contractors for laundry and other support services. We are also encouraging authorities to consider the use of private contractors as an option for providing services of all kinds wherever worthwhile savings might be made to release extra resources for patient care. We shall consider, in the light of the experience of those authorities which have contracted out energy services, whether specific guidance on these particular services is required.
§ Mr. Rostasked the Secretary of State for Social Services if he will list those health authorities which have, or are proposing to contract out, energy services management and maintenance to private sector concerns.
§ Mr. Kenneth ClarkeOur Department does not keep a record of health authorities which have contracted out energy services to private sector concerns or which are proposing to do so. The Government's policy is that the NHS should contract out all support and maintenance services where this can be shown to be cost-effective and operationally sound.
§ Mr. Rostasked the Secretary of State for Social Services what studies his Department has undertaken to assess cost savings in hospitals and other National Health Service establishments which can be achieved by contracting-out heat services, boiler maintenance and energy management to private sector operators.
§ Mr. Kenneth ClarkeNo such studies have been carried out by our Department, but we are aware that some authorities have taken steps to contract out these services with the prospect of worthwhile savings.
§ Mr. Kirkwoodasked the Secretary of State for Social Services (1) if he will list in the Official Report figures, for the last five years for which the information is available, for all the commercial organisations who have been awarded contracts for the supply of goods and services to the National Heath Service where the contract costs have been in excess of £10,000, showing the goods or services provided and the amounts paid to the contractors, with an indication of which contracts were subject to competitive tendering;
(2) if he will issue guidelines to those branches of his Department engaged in procuring goods and services outlining procedures to eliminate monopoly and ensure opportunity for competitive bids and tenders;
(3) if he will publish in the Official Report the procedures used by his Department for concluding bargains with major suppliers of goods and services to his Department for use in the National Health Service.
§ Mr. Kenneth ClarkeAlmost all goods and services used in the NHS are bought by health authorities and not by Government. Information about the value of contracts is not centrally available and would be disproportionately expensive to collect. Authorities are expected to follow the Government purchasing guidelines set out in the third report of the Committee on Public Accounts of 1981–82.I would expect most contracts exceeding £10,000 to be subject to competitive tender.