HL Deb 28 March 2001 vol 624 cc31-2WA
Lord MacKenzie of Culkein

asked Her Majesty's Government:

Whether the Cabinet Office Statement of Practice for Staff Transfers where council employees transfer to private firms or consortia applies throughout the United Kingdom. [HL1297]

The Parliamentary Under-Secretary of State, Department of the Environment, Transport and the Regions (Lord Whitty)

The Statement of Practice sets out a framework to be followed by the public sector organisations to implement the Government's policy on the treatment of staff transfers where the public sector is the employer when contracting out, or the client in a subsequent retendering. It applies directly to all United Kingdom central government departments and agencies and to the NHS but the Government expect other public sector organisations, including local government, to follow it.

The Statement noted that local government was subject to some different considerations, particularly the restrictions in legislation contained in Part I and II of the Local Government Act 1988. However, abolition of CCT from January 2000 and the Local Government, Best Value (Exclusion of Non-commercial Considerations) Order 2001, which came into effect on 13 March 2001, means that best value authorities in England may now consider "workforce matters" and hence adopt the policy set out in the Statement. In doing so, they must have regard to the need to comply with their best value duties.

Lord MacKenzie of Culkein

asked Her Majesty's Government:

In relation to the transfer of council employees to private firms or consortia, whether a money purchase pension scheme is broadly comparable to a defined benefit or final salary pension scheme. [HL1298]

Lord Whitty

Guidance issued by the Government Actuary in May 1999 indicated that, when it undertakes assessments of broad comparability, only defined benefit schemes will be certified as broadly comparable to defined benefit schemes, and only defined contribution schemes will be certified as broadly comparable to defined contribution schemes. I understand that the same principles normally apply in other actuarial assessment arrangements.