HC Deb 28 February 1996 vol 272 cc569-70W
Mr. Wilshire

To ask the President of the Board of Trade if the contracting-out exercise of the case administration functions of official receivers, begun by the Insolvency Service in July 1993, has now been completed; and if he will make a statement. [18035]

Mr. Oppenheim

The Government announced in October 1994 that, following the completion of pre-feasibility and feasibility studies, it was their intention to pursue, subject to parliamentary approval of the appropriate primary and secondary legislation, the preferred option identified by the then consultants ie the contracting out of insolvency casework by official receivers immediately on the making of the insolvency order.

Advertisements for potential bidders were placed in May 1995 and resulted in the receipt of 149 expressions of interest. One hundred and thirty-six passed through to the next stage and were sent the requirements scoping document. Ninety-one organisations went on to submit initial proposals, 34 of which were selected to participate in negotiations with the Insolvency Service. Following these negotiations, a further sift was carried out and an invitation to tender was issued to six organisations—two managed service providers and four insolvency practitioner-accountants—and formal tenders were received from all six at the beginning of December. Three—Capita Managed Services Ltd., ITnet Ltd. and Larking Gowen—were identified as possibly being able to offer value for money and a final series of discussions were held with them.

The three bids were subjected to stringent technical and financial evaluation and were considered by the Agency Steering Board, particularly the independent, private sector members.

The aim of the contracting-out process is to ensure that people receive the best service for the most reasonable price whether it is provided by the public or private sector. In this instance, having considered very carefully the evaluation of the bids and the advice of the steering board, I have concluded on these grounds that the case administration functions of official receivers should not be contracted out.

I congratulate the service and its staff on the service's performance in recent years during which its unit costs have been substantially reduced while its investigative role has been enhanced. This exercise has confirmed the value of money of the service's operation for the taxpayer and I look to it to continue to deliver improvements in the future.

Mrs. Helen Jackson

To ask the President of the Board of Trade when he intends to make the decision regarding the contracting out of the work of the official receiver; and when this decision will be announced to the House. [17468]

Mr. Oppenheim

[holding answer 27 February 1996]: As I informed the House in my answer to my hon. Friend the Member for Spelthorne (Mr. Wilshire), having carefully considered the technical and financial evaluation of the bids and the recommendation of the Agency Steering Board, I have concluded that the case administration functions should not be contracted out and the work should remain with official receivers.

Mrs. Jackson

To ask the President of the Board of Trade what involvement Dr. Alan Kemp has had in the contracting out of the work of the official receiver. [17466]

Mr. Oppenheim

[holding answer 27 February 1996]: Dr. Kemp had no involvement in the contracting out exercise undertaken by the Insolvency Service.

Arrangements were introduced to ensure that any papers concerning this matter which were sent to the then President of the Board of Trade were withheld from Dr. Kemp.

Mrs. Jackson

To ask the President of the Board of Trade (1) how many bidders for the work of the Insolvency Service who have been rejected have had insolvency experience; [17471]

(2) how many bidders for the work of the Insolvency Service who are still being considered have insolvency experience. [17470]

Mr. Oppenheim

[holding answer 27 February 1996]: Of the six tenders received for the work of official receivers, four were submitted by insolvency practitioner-accountancy firms and two by managed service providers.

However, as I informed the House in my answer to my hon. Friend the Member for Spelthorne (Mr. Wilshire), having carefully considered the technical and financial evaluation of the bids and the recommendation of the Agency Steering Board, I have concluded that the case administration functions should not be contracted out and the work should remain with official receivers.