HC Deb 01 July 1988 vol 136 cc385-6W
Mr. Neil Hamilton

To ask the Secretary of State for Social Services what measures he is taking to ensure that the true redundancy and severance pay implications for health authorities of private contractors' tenders for hospital services are independently assessed.

Mrs. Currie

Tendering and contractual matters are already subject to independent audit. Additionally, guidance to health authorities already makes it clear that authorities must give an estimate of redundancy costs that arise if a contract is awarded to an outside contractor, when issuing tenders. Authorities may also consider spreading those costs over a period longer than the intended contract period where local circumstances make this appropriate. The 1987 National Audit Office report on competitive tendering in the NHS concluded that procedures for evaluating tenders and awarding contracts were being implemented fairly and in accordance with departmental guidance.

Mr. Neil Hamilton

To ask the Secretary of State for Social Services whether he has taken steps to ensure that health authorities properly estimate the value of existing plant and machinery when they require private contractors to purchase it as part of a tender for hospital services; and whether he will ensure that such estimates are reviewed independently.

Mrs. Currie

Detailed guidance to health authorities on this type of contract stresses the need for authorities to arrive at valuations which are seen to be fair and realistic

Accidents to children under 5 involving baby walkers
HASS: Hospital attendances at accident and emergency department
Not admitted to hospital Admitted to hospital Incomplete information
Year (1) Sent home or (2) referred to GP or (3) out patient In patients Specialist or other hospital Other disposal Unknown Total
1982 173 22 1 — 1 197
1983 171 12 2 1 — 186
1984 242 8 2 2 — 254
1985 212 14 2 — 1 229
1986 285 14 4 2 — 305

by both parties at the start of the contract. Authorities have already been advised to seek independent assistance from specialist firms or consultants where appropriate.

Mr. Rost

To ask the Secretary of State for Social Services what steps he will take to ensure that successful in-house tenders for hospital services are properly monitored.

Mr. Neil Hamilton

To ask the Secretary of State for Social Services if he will take steps to ensure that health authorities monitor the costs of successful in-house lenders for hospital services.

Mrs. Currie

Guidance to health authorities already stresses the continuing need for effective monitoring and control of contracts whether held by in-house teams or private contractors. To assist health authorities in this task the Department part-financed a study on contract monitoring for domestic, catering and laundry services sponsored by the Nuffield Provincial Hospitals Trust. The study, carried out by outside consultants, resulted in the publication of a practical guide and handbook on the management and monitoring of contracts for these services, which was issued by the Nuffield Provincial Hospitals Trust to health authorities last November arid includes specific guidance on contracts awarded in-house.