HC Deb 24 January 1994 vol 236 cc15-7W
Mr. Corbyn

To ask the Secretary of State for Social Security what has been the annual contribution, for each year since 1979, of the Treasury to the national insurance fund.

Year Sum paid into NI Fund (£ million)
1979–80 12,343
1980–81 12,848
1981–82 12,433
Year Sum paid into NI Fund (£ million)
align="right"1982–83 12,591
1983–84 12,807
1984–85 12,597
1985–86 12,163
1986–87 12,412
1987–88 12,135
1988–89 11,653
1989–90 2nil
1990–91 3nil
1991–92 3nil
1992–93 3nil
1993–94 3 47,589
1 Treasury supplement.
2 Treasury supplement was abolished from 1989.
3 From 1990–91 the NI fund has been reimbursed for the costs of statutory sick pay and statutory maternity pay recovered by employers, but these amounts have been excluded because they are a reimbursement rather than a contribution to the NI fund.
4 Treasury grant.

Mr. Nicholas Brown

To ask the Secretary of State for Social Security what steps he has taken to prevent industrial espionage in the privatisation competition for the computer processing of national insurance records, currently carried out in-house at Longbenton, Newcastle upon Tyne.

Mr. Hague

The 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 Ann Chant to Mr. Nicholas Brown, dated 21 January 1994:

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 the steps taken to prevent industrial espionage in the competitive tendering for the computer processing of National Insurance records.

The work of the Data Entry operation at the Contributions Agency's Longbenton site falls within the Agency's Market Testing programme. The objective of Market Testing is to provide better value for money for the taxpayer through a very structured purchasing process which entails inviting bids from the private sector as well as the current civil service provider.

The Market Test of our Data Entry service is being carried out in accordance with the procurement policy as laid down by HM Treasury which observes EC Directives on the subject. As part of that process, an intensive set of tender documents which set out the Agency's business requirements has been issued to each prospective bidder. All bidders, including the In-House team, are likely to seek further information in support of their bids. To ensure equal treatment for all, an independent team deals with all enquiries and ensures that responses are copied to everyone involved in the competition. Enquiries can be made in writing, by site visit or exceptionally by telephone. When a site visit has been requested, the company concerned is met by a member of the independent team who escorts the visitors at all times. Questions are restricted to clarifying aspects of tender documentation. In no circumstances will replies be given to questions concerning how competitors' proposals to carry out the work are being developed.

The Agency has strict guidelines for staff on how to deal with any telephone enquiries. In brief, a response will not be given until the bona fides of the enquirer have been established, and in any case of doubt about the propriety of a question staff must refer the matter to a senior officer before a response is given.

The Agency treats very seriously any attempt by a competitor to obtain information which they are not entitled to receive. Any report of such activity would be thoroughly investigated and, if proven, could result in the exclusion of the offender from the bidding process.

I hope that I have clearly explained the very serious view that the Agency takes of an exercise of this nature, and that I have been able to reassure you that measures are in place to prevent any competitor gaining an unfair advantage in the tender process. If you have any further queries on the matter I would be only too pleased to discuss them with you.

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