§ Mr. Spearingasked the Secretary of State for Social Services what representations he has received from Messrs. Forte concerning the nature of contracts offered to private firms tendering for National Health catering contracts; what reply he has sent; and what action he has taken, or intends to take in respect of the conditions of the contracts, or advice given to regional or district health authorities concerning acceptance of tenders.
§ Mr. Kenneth ClarkeGardner Merchant, Trust House Forte's industrial catering division, has informed me that it would prefer contracts for NHS catering services to be on a management fee basis. We are not satisfied that this would be in the best interests of the NHS, but further discussions are to take place with the British Hotels, Restaurants and Caterers Association, of which Gardner Merchant is a member. We have no present intention of changing from the fixed price form of contract which will enable authorities to improve the cost-effectiveness of catering throughout the hospital service.