§ Mr. Chris SmithTo ask the Secretary of State for Social Security (1) how many staff are currently employed by the Contributions Agency in identifying those evading their proper social security contributions; and how many he expects will be employed following332W the implementation of the business unit implementation exercise for the reorganisation of offices; [39971]
(2) what has been the cost of the employment of consultants in connection with the business unit implementation exercise for the reorganisation of Contributions Agency offices; what consultation has so far been undertaken with local authorities, citizens advice bureaux and local chambers of commerce in this connection; and what overall budget savings are expected from the exercise. [39972]
§ Mr. HealdThe administration of the Contributions Agency is a matter for Mrs. Faith Boardman, the chief executive. She will write to the hon. Member.
Letter from Faith Boardman to Mr. Chris Smith, dated 31 October 1995:
As Chief Executive of the Contributions Agency, I have responsibility for answering questions about operational matters relating to the Agency. I have been asked to reply to your questions about the cost of consultants in connection with the Business Unit Implementation exercise for re-organisation, what consultation has taken place with various bodies, expected overall budget savings, and the numbers of staff employed in identifying those contributors evading contributions. In view of the nature of the questions I have combined the responses.I am unable to provide the cost of consultants used in connection with the Field Operations Business Unit Implementation as this information is subject to commercial confidentiality provisions.The Agency proposes to reduce its Field Operations network from the existing 248 offices to approximately 115. The proposed Field network is being developed in consultation with local management, staff and Trade Unions. A decision on specific locations will not be taken until this process is complete. Thereafter the business community, including Local Authorities, Citizens' Advice Bureaux, Chambers of Commerce and Members of Parliament will be fully consulted before implementation takes place.Precise details of savings cannot be determined during the planning and development stage of the re-organisation. However it is estimated that there will be significant savings in management costs. Savings in accommodation and related costs will also be captured as the new Field network is implemented.The Agency has responsibility to ensure compliance with the law in relation to National Insurance contributions. Non-compliance is not solely due to evasion but is frequently the result of lack of awareness or genuine error. Because of this, it is impossible to estimate the proportion of work or staff directly dealing with evasion. Of the Agency's current total Field force of 3093 staff, approximately 1300 are employed on inspectorate duties which bring them into direct contact with employers and the self-employed. It is not anticipated that inspectorate numbers will significantly change as a result of the Business Unit Implementation process.I hope that this reply proves helpful. Please let me know if I can be of any more assistance.