HC Deb 02 December 1977 vol 940 cc467-8W
Mr. Ridsdale

asked the Minister for the Civil Service why the Central Office of Information appoints nine suppliers for printing and does not allow other companies, especially smaller companies to tender for its supplies.

Mr. Charles R. Morris

COI intends to introduce a new scheme for the purchase of production material for Press advertising campaigns on 1st January 1978. This will not include, nor in any way relate to, the purchase of print material which is handled through Her Majesty's Stationery Office.

At present, the purchase of production material is sub-contracted amongst more than 60 different suppliers through the commercial advertising agencies appointed to handle advertising campaigns on behalf of COI. The new scheme seeks to concentrate expenditure—totalling around £¾ million per annum—in those London-based companies which are able to supply material across the range of processes required and which at the time of the survey on which this scheme is based were already significant suppliers to COI. This intention was communicated to all suppliers in the London area who were invited to apply for appointment. A total of nine companies met the criteria outlined; between them they are currently responsible for an estimated 75 per cent. of existing COI work. Following extensive consultation with the appropriate trade unions and the employers federation the list of nine companies was agreed and a volume discount negotiated by COI direct with these companies.

The list will be reviewed annually, and any company which feels at any time that it can supply the full range of services required may ask to be considered. The new scheme will ensure that economies of scale are realised and that there will be consequent savings of the order of £35,000 per annum to the public funds.

The 25 per cent. of current expenditure presently spread between the 50 or more previously contracted companies which are not included in the new scheme should not represent a critical loss to any individual concern.