§ Mr. Robin CookTo ask the Secretary of State for Scotland (1) whether, in evaluating tenders for services in the health service in Scotland value added tax is taken into account to conform to Treasury guidelines referred to in paragraph 3(b) of appendix 1 attached to the Scottish Home and Health Department circular dated 16 October 1989;
(2) if he will identify contracts awarded prior to the circular of 16 October 1989 where value added tax and premature retirement costs were not taken account of in the evaluation process.
§ Mr. RifkindValue added tax has been taken into account by health boards in the evaluation process for contracts awarded after 1 December 1989. All evaluations have taken account of premature retirement costs. I would direct the hon. Member to the answer which my hon. Friend the Minister for health gave on 23 November 1989 to my hon. Friend the Member for Eastwood (Mr. Stewart) where he confirmed that VAT would continue to be recoverable for contracts awarded up to 1 December 1989.