HC Deb 18 May 1994 vol 243 cc519-20W
Mr. Blunkett

To ask the Secretary of State for Health, pursuant to her answer to the hon. Member for City of Chester (Mr. Brandreth) of 18 April,Official Report, column 396, what areas have been selected for internal charging; what system of charging is proposed; and how the transaction costs of internal charging will be allocated.

Mr. Sackville

The Department's internal management consultancy unit's services were fully internally charged from 1 April 1993 and the unit competes with commercial management consultancy firms. In addition, for a number of services now contracted out, such as printing and travel, expenditure is charged out within the Department to the point of consumption. For services being market-tested, and any provided to other Government Departments or

Total is £ Average real value of benefit at April 1993 prices over the period £ Equivalent value of benefit at April 1993 prices at date of uprating £ As a percentage of all adults average earnings %
April 1988 79.10 102.19 104.26 36.2
April 1989 84.80 103.86 106.12 35.4
April 1990 89.65 102.39 105.51 34.1
April 1991 96.90 103.86 105.10 34.0

executive agencies under service level agreements, a system of overhead allocation has been developed. The Department is considering further developments in internal charging in areas where this makes management sense, and where the benefits of introduction clearly outweigh the costs of implementing and maintaining the internal charging systems.

Mr. Blunkett

To ask the Secretary of State for Health, pursuant to her answer to the hon. Member for City of Chester (Mr. Brandreth) of 18 April,Official Report, column 396, what was the outcome of the market-testing programme for 1993–94.

Mr. Sackville

The Department's 1993–1994 market-testing programme runs from October 1993 to September 1994 and was published in the citizens charter second report 1994, copies of which are available in the Library. To date the following market tests have been completedReprographic service on the London estate—contract awarded to Libra Business Services. Building management in certain Department of Health buildings—contract awarded to Procord Facilities Management. Survey of infant feeding practices—contract awarded to Office of Population, Censuses and Surveys.

Mr. Blunkett

To ask the Secretary of State for Health, pursuant to her answer to the hon. Member for City of Chester (Mr. Brandreth) of 18 April,Official Report, column 396, what areas the market-testing programme for 1994–95 will cover; and what are the personnel consequences.

Mr. Sackville

The Department will shortly be agreeing its 1994–1995 programme with the efficiency unit of the Cabinet Office.