HC Deb 22 June 1995 vol 262 cc370-1W
Mr. McNamara

To ask the President of the Board of Trade if he will list those parts of his Department or departmental agencies which were privatised without an in-house bid; if he will indicate the expertise which was absent in his Department or departmental agencies which prevented an in-house bid taking place; which future parts of his Department or departmental agencies he intends to privatise; and which of them do not have the necessary in-house expertise to mount an in-house bid. [29418]

Mr. Heseltine

The following areas of work have been contracted out without an in-house bid under the "Competing for Quality" programme:

  1. (i) 1992–93
    • Press Notice Distribution
    • Offshore Focus Magazine
    • Gas and Oil Measurement Branch Security
    • Database Maintenance
    • Photographic Service (National Physical Laboratory)
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  2. (ii) 1993–94
    • Stationary Supply
    • Translation
    • Various Support Services (Patent Office)
  3. (iii) 1994–95
    • Accounts Services Agency
    • Ships Radio Licensing (Radiocommunications Agency)

Decisions to contract out without an in-house bid have been taken where the private sector was clearly better-equipped to deliver a specific service, has had a better understanding of market needs, or has had the capacity to invest in new technology. Such decisions have also been taken when the activity has been relatively small and peripheral to my Department's core functions. In each case overall value for money has been assessed through comparing the quality and cost of bids against a benchmark of continuing in-house provision which includes planned efficiency and quality of service improvements. Information on an individual test basis can be provided only at disproportionate cost.

Work is under way to contract out the following in 1995–96 without an in-house bid:

  • Building Management Services
  • The National Physical Laboratory

  • Companies House:
    • London Office and Satellites
    • Edinburgh Office
    • Cardiff Office—range of activities
  • The Insolvency Service:
    • Official Receivers' Administrative Functions
  • Patent Office:
    • Various support services
    • Radiocommunications Agency:
    • Various support services

Of course, staff are always free to make bids on a staff buy-out basis alongside other bidders, taking the work into the private sector. For example, there was a management bid on this basis for the Accounts Services Agency.