§ Mr. Allan StewartTo ask the Secretary of State for Scotland by how much the figures previously announced of savings from competitive tendering in the National Health Service will be affected by requirements to pay value added tax.
§ Mr. Michael ForsythThe figures already given will not be affected by requirements to pay VAT. Value added tax will continue to be recoverable for contracts awarded up to 1 December 1989. For contracts awarded from that date VAT will also continue to be recoverable where the cost of a private contract plus VAT, after taking account of redundancy costs, exceeds the cost of an in-house contract. Except in a few cases I expect therefore that VAT will continue to be recoverable but where it is not the proportion of unrecoverable VAT to overall savings will be small.
§ Mr. Allan StewartTo ask the Secretary of State for Scotland what is the total amount of moneys released for use by health boards as a result of competitive tendering in Scotland since December 1987.
§ Mr. Michael ForsythSince December 1987 more than 150 contracts have been awarded estimated to release over £59 million during the periods of the contracts and this money is available for investment in direct patient care. Savings of this order could buy over 5,500 kidney dialysis machines or pay for 19,500 hip replacement operations or about 9,000 heart by-pass operations.