HC Deb 19 July 1995 vol 263 cc1490-1W
Mr. Alex Carlile

To ask the Secretary of State for Social Security (1) if he will make it his policy to ensure that the vehicle leasing market for disabled users will in future benefit from competitive tendering; [35032]

(2) what assessment he has made of the adequacy of the procedures for contracting out of goods and services by the directors of the Motability charity; [35036]

(3) what is his policy in relation to competitive tendering in relation to the expenditure by Motability of money provided by his Department; [35033]

(4) if he will make it his policy that the governors of the Motability charity should not enter into any contracts for goods or services in excess of £50,000 without prior departmental approval; [35037]

(5) if it is his policy that the governors or directors of Motability may not issue guarantees, indemnities or letters of comfort except with the consent of the Secretary of State; [35046]

(6) if he will list the amounts paid in grant in aid to the Motability charity in each of the last three years; and if future payments of grant in aid are to be made conditional upon the efficiency with which Motability is managed; [35034]

(7) if he is informed by the governors of Motability, on an annual basis, of the charity's performance on providing best value for money services to its disabled users; [35038]

(8) if, in the event of Motability's articles being revoked, all assets acquired with grant in aid moneys would revert to his Department after all creditors claims had been met; and if he will make a statement. [35045]

Mr. Burt

The detailed conditions on payments of the grant in aid for administration are set out in the financial memorandum, a copy of which is in the Library. The financial memorandum contains a requirement that the charity should endeavour to provide best value for money for both the disabled customer and the tax payer. One method of providing would be through competitive tendering. The amounts paid in grant in aid to Motability in each of the last three years are given in the table.

£million
Grant-in-aid 1992–93 1993–94 1994–95
Mobility equipment fund 1.075 2.050 1.935
Administration 1.835 2.085 3.260
Total 2.910 4.135 5.195

Mr. Carlile

To ask the Secretary of State for Social Security (1) if he will make a statement on the charitable status of the Motability Tenth Anniversary Trust in relation to Motability Finance Ltd.'s charitable donations; and what sums of public money were involved in respect of the Motability Tenth Anniversary Trust; [35041]

(2) if funds held in the Motability Finance Ltd. Contingency and Tenth Anniversary funds are considered to be assets acquired with grant-in-aid monies provided by his, or any other, Department; and if he will make a statement; [35044]

(3) if he will list the beneficiaries of Motability Finance Ltd.'s charitable donations in each year between 1990 and 1993; and what assessment his Department has made of the beneficiaries in allocating funding of motability for disabled people; [35042]

(4) what assessment he has made of the adequacy of the arrangements for the auditing and accounting in respect of Motability Finance Ltd. in each year between 1988 and 1995; what assessment he has made of the independence of the senior auditor at KPMG responsible for the affairs of the charity; and if he will make a statement. [35035]

Mr. Burt

Motability Finance Ltd. is an independent company and its audit and accounting arrangements have to comply with company law. It is for MFL to make arrangements for auditing its accounts. It is not a matter for the charity.

Mr. Carlile

To ask the Secretary of State for Social Security (1) what discounts Motability users were offered in hire purchase and contract hire price lists sent to them in(a) 1992 and (b) 1995; what sums of public money were involved; and if he will make a statement; [35040]

(2) if he will make a statement on the status of Motability Finance Ltd. in relation to the Motability charity; and what assessment he has made of the status in determining the provision of public funds; [35043]

(3) if he will instruct independent experts to advise him as to the size of the discounts available to fleet leasing purchasers, in relation to the funding by his Department of the mobility of disabled people. [35047]

Mr. Burt

Motability Finance Ltd. is a supplier to the Motability scheme. It is a wholly separate organisation neither funded from, nor accountable to, the Department of Social Security. Motability's governors have the responsibility to ensure that suppliers to the scheme offer good value for money. Motability reviews its financial arrangements annually. The financial memorandum requires Motability to provide good value for money for its disabled customers.

Any questions on the discounts offered by manufacturers through the Motability scheme should be directed to Motability.