§ Mr. Nicholas BrownTo ask the Secretary of State for Social Security, pursuant to his answer of 24 January,Official Report, column 15, regarding firms which do not comply with his department's guidelines over privatisation bids, what plans he has to disqualify CNN Data Company from tendering for the DSS Longbenton national insurance computor processing contract.
§ Mr. HagueThe administration of national insurance is a matter for Miss Ann Chant, the chief executive of the Contributions Agency. She will write to the hon. Member.
Letter from Miss Ann Chant to Mr. Nicholas Brown, dated 8 February 1994:
1988–89 1989–90 1990–91 1991–92 1992–93 1993–94 Total Offset of occupational pension against unemployment benefit -15 -63 -66 — — — -173 Unemployment benefit rules changes — -21 -49 -55 — — -141 Widows benefit measures — 22 13 13 13 — 69 Abolition of pensioners earnings rule — 190 386 401 412 — 1,529 Statutory sick pay measures — — -72 -86 -92 — -269 New RMO procedures — — — -8 -8 -8 -25 Statutory sick pay: 80 per cent, reimbursement — — — -181 -190 -197 -587 Statutory sick pay higher rate freeze — — — -109 -119 -125 -365 Statutory sick pay/child benefit measures — — — 3 3 3 9 Statutory sick pay standard rate freeze — — — — -20 -21 -42 Carer's package — — — — — 1 1 Invalidity benefit: new medical control procedures — — — — — -108 -108 Statutory sick pay higher rate freeze — — — — — -21 -21 Notes:
376W
- (a) All figures are expressed in millions. They are in cash terms except for the totals which are expressed in real terms (1993–94 prices).
- (b) It should be noted that only the costs/savings to National Insurance benefits have been shown. The figures therefore should not be regarded as the actual costs/savings arising from individual policy measures.
As Chief Executive of the Contributions Agency I am responsible for answering questions about relevant operational matters. I have been asked to reply to your question about possible plans to disqualify CCN Datacom BV from tendering for the computer processing of National Insurance records.When I wrote to you on 24 January 1994 in response to your earlier question I explained the procurement policy adopted by this Agency in its Market Testing (not privatisation) activities. CCN Datacom BV were invited to tender for the Contributions Agency's Data Entry operation along with the current In-House service provider and 3 other private sector companies. As part of that process, everyone invited to tender is entitled to seek clarification of the Agency's requirements.A representative of CCN Datacom BV, apparently acting on her own initiative, telephoned an ex-colleague who now works within the data Entry Group of this Agency, seeking information about the current operations. This approach was not in accord with the Agency's requirements for the supply of information. The incident was immediately and thoroughly investigated. It was concluded that no evidence exists that any information of a confidential nature or which could give the company an unfair advantage had been disclosed.CCN Datacom BV has stated that it was unaware of the action of the employee and has apologised for the breach of procedure.After a careful review of the facts it was decided that there were insufficient grounds for excluding the company from the tender exercise. The 2 key issues in reaching this decision were that the approach was at a level where information of any significance was unlikely to be forthcoming and in fact no information of any importance was passed over to the company. Nevertheless, CCN Datacom are now well aware of the Agency's view on the matter, and that even relatively minor breaches of the correct procedure will be taken extremely seriously.I hope that I have clarified the facts of the matter but if you do have any further queries I would be pleased to discuss them with you.