HC Deb 11 March 1994 vol 239 cc406-7W
Mr. Peter Bottomley

To ask the Secretary of State for Transport how much he paid the corporate finance section of KPMG for advice on the future of the Transport Research Laboratory.

Mr. Key

A total of £91,826.26 inclusive of VAT.

Mr. Peter Bottomley

To ask the Secretary of State for Transport which tenderers for the work of advising him on the future of the Transport Research Laboratory were individuals or groups with expertise in commissioning or completing casualty reduction, environmental, structural or mechanical research.

Mr. Key

All tenderers were free to structure teams as they judged best able to undertake the contract, KPMG Peat Marwick assembled a team which embraced a range of skills, including transport and research specialisms.

Mr. Peter Bottomley

To ask the Secretary of State for Transport if he will publish the terms of reference and correspondence with the corporate finance section of KPMG on the future of the Transport Research Laboratory.

Mr. Key

I am placing copies of the terms of reference for the study in the Library. These terms of reference were the subject of consultation with the trade unions.

Exchanges between the Department and the contracted consultants during the course of such studies necessarily take place in confidence because they involve a range of sensitive issues which may be commercially confidential. It would not be appropriate to make such exchanges public.

Mr. Peter Bottomley

To ask the Secretary of State for Transport (1) if he gave instructions that the corporate finance section of KPMG should advise on(a) whether it would be possible or (b) whether it would be sensible to have a clean break between the Transport Research Laboratory and his Department;

(2) for what reasons he advocates a clean break between the Transport Research Laboratory and his Department.

Mr. Key

KPMG Peat Marwick's work was guided by the terms of reference for the study. The desirability of a clean break was identified by the consultants in light of the Government's wider policy for securing the complete transfer to the private sector of functions that need not be undertaken in the public sector, along with associated assets.

Mr. Peter Bottomley

To ask the Secretary of State for Transport what was the competitive advantage of the corporate finance section over other sections, and the competitive advantage of KPMG over other consultancies, in respect of the future of the Transport Research Laboratory.

Mr. Key

KPMG Peat Marwick was appointed following a competitive process involving a written submission and a subsequent interview. They were judged best able to achieve the requirements of the study set out in the terms of reference. It was their decision to manage the work from their corporate finance section.