HC Deb 02 February 1995 vol 253 c766W
Mr. Blunkett

To ask the Secretary of State for Employment what estimate he has of the cost of market testing the careers service; and if he will detail(a) the transaction costs and (b) the tendering costs.

Mr. Paice

The process by which my right hon. Friend, the Secretary of State is meeting his duty to provide the careers service is competitive tendering, not market testing.

I have no information on the costs of compiling bids; they were met by the bidders. The costs to the Employment Department were about £300,000, which were found from existing resources. They included £220,000 on staff and associated costs for a small team of administrators—1994–95—and £74,000 on a prospectus and publicity for tendering in 1994–95. In addition, some staff from the 10 Government offices were involved. Further figures could not be provided without incurring disproportionate cost.

Mr. Blunkett

To ask the Secretary of State for Employment if he will list which of the careers services that have gone out for tender have(a) remained in-house, (b) been won by the private sector and (c) are still outstanding.

Mr. Paice

This information is not yet available. No contracts have been awarded. Preferred bidders have been selected for post-tender negotiation and the contracts will be announced after negotiations are complete.

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