§ Mr. McCrindleasked the Secretary of State for Social Services if he will make a statement on progress made by health authorities in contracting out ancillary services.
§ Mr. NewtonThe initiative launched by the Government in September 1983 was competitive tendering for domestic cleaning, catering and laundry services in the National Health Service. In England, health authorities continue to make good progress in putting these services out to tender thereby testing their cost effectiveness. By 31 March 1987, 78 per cent. of these services had been put out to tender.
Total annual savings generated as a result in England are estimated at £93.3 million — an increase of £7.3 million over the figure reached at 31 December 1986. £26.1 million of the total savings generated have been realised from 194 contracts let to private contractors and £67.2 million from 1046 tenders secured by in-house organisations.
Information for Scotland and Wales is for my right hon. and learned Friend the Secretary of State for Scotland and my right hon. Friend the Secretary of State for Wales, respectively.