HC Deb 21 March 1986 vol 94 c316W
Mr. Kirkwood

asked the Secretary of State for Social Services if he will make a statement on the privatisation of hospital ancillary services.

Mr. Fowler

The Government are seeking to achieve the best value for money in the National Health Service and the maximum amount of resources devoted to patient care. Part of this policy is to improve the cost effectiveness of the domestic and cleaning services, the catering services and the laundry services. So far, health authorities have put one-third of these services out to competitive tender. Our latest estimate is that as a result of this policy annual savings of £42 million are now being achieved. This compares with a savings figure of only £9 million 12 months previously. These savings come in part from the use of outside contractors and in part from improvements in the efficiency of the in-house organisation. Savings are now mounting steadily as more services are put to tender and further substantial progress can be expected. These savings are being retained by health authorities for use in running and developing services to patients. The resources released are now making a substantial contribution to patient care.

The savings achieved in individual regions are shown in the table:

£ '000
Northern 2,528
Yorkshire 3,378
Trent 2,565
East Anglian 2,855
North West Thames 4,725
North East Thames 3,145
South East Thames 2,986
South West Thames 5,906
Wessex 911
Oxford 1,788
South Western 2,078
West Midlands 2,970
Mersey 3,933
North Western 1,120
SHA's 1,086
Total 41,974

Forward to