§ Sir John WheelerTo ask the Secretary of State for the Home Department if he will make a statement about the future arrangements for the warehousing and distribution function of the prison service's supply and transport branch.
§ Mr. Kenneth ClarkeFollowing the market testing of the warehousing and distribution function, I approved, in July 1992, the award of a contract to a private sector company, subject inter alia to the negotiation of a satisfactory contract. It has not been possible to negotiate such a contract, and the next best bid, which is the in-house bid, now becomes the preferred bid. I have instructed officials to negotiate a service level agreement with the in-house providers. I expect the outcome of this market test to reduce the present costs of this function by about a quarter over three years.