§ Mr. Galbraith
To ask the Secretary of State for Scotland if, when evaluating contracts in competitive tendering of ancillary services, the cost of redundancy and early retirement is set against the private tender.
§ Mr. Michael Forsyth
Yes. Redundancy payments are real costs to the Health Service and boards are specifically instructed to have regard to them in the final assessment of all bids relating to competitive tendering. Similarly premature retirement costs, if any, are also required to be taken into account.