Market Testing (Hansard, 23 May 1994)

§ Ms Ruddock
To ask the Secretary of State for the Home Department what has been the total cost of all market-testing exercises(a) within his Department excluding the Prison Service and (b) within the Prison Service.
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§ Mr. Charles Wardle
The most recent published figures on the costs of market testing, covering the period April 1992 to December 1993, are contained in table 3 of the "Competing for Quality" section of the citizens charter second report 1994 (Cm. 2540).
Column 3 of that table shows, as an annual figure spread over 10 years, consultancy and other set-up costs for the Home Office of £24,000. It is not possible to identify separately the Prison Service element of this figure. Column 4 of the same table shows, on an annualised basis, central market-testing support costs for the Home Office as £3,383,000. This figure includes costs of £1,626,000 for the Prison Service. These terms are defined in the notes to table 3 on page 102 of the report.

§ Ms Ruddock
To ask the Secretary of State for the Home Department what was the full cost of the market test of information and library services at his Department including(a) the cost incurred by the market-testing division, (b) the cost of consultants used by the market-testing division, (c) the cost of the in-house bid, (d) the cost of consultants used by the in-house team and (e) the cost of advice for other internal departments.

§ Mr. Charles Wardle
A study was undertaken last year of the scope for market-testing the Home Office's information and library services. This study identified a lack of market readiness to provide these services and it was therefore decided not to proceed with the market test. The study also identified efficiency improvements to the existing service. The staff costs for the scoping study are estimated to be about £12,000, substantially lower than the value of the efficiency improvements. No other significant costs were incurred: no consultants were employed and no bids were invited.

§ Ms Ruddock
To ask the Secretary of State for the Home Department what is the estimated cost of the market test of the research and planning unit; and how many staff hours it is estimated will be involved.

§ Mr. Charless Wardle
The internal research function of the Home Office's research and planning unit has been included in the Home Office's provisional market-testing programme for the programme year October 1994 to September 1995. If its inclusion in the programme is confirmed, an initial study will consider the scope for testing this activity against the market. In advance of that study, it is not possible to estimate the staff and other costs of any market test.