HC Deb 04 June 1996 vol 278 cc340-1W
Mr. Barry Jones

To ask the Secretary of State for Defence what is his policy concerning market testing. [30822]

Mr. Arbuthnot

I refer the hon. Member to the answer that I gave him on 6 February,Official Report, column 120. The policy has not changed.

Mr. Murphy

To ask the Secretary of State for Defence what are the projected annual savings as a result of the market testing of health provision for British forces services; and if he will make a statement. [30985]

Mr. Soames

Market testing of health provision for British forces in Germany is expected to realise annual savings of £2 million in financial year 1998–99, £3.4 million in 1999–2000, and £4 million in 2000–01. Initial set-up costs, and some dual running to facilitate a seamless transition to the new service will result in increased costs of £2.3 million in 1996–97 and £2.9 million in 1997–98. Therefore, over the five-year period of the service level agreement with "The Health Alliance", net savings of some £4.2 million are expected to accrue to the Defence budget.

These changes have been achieved with no detriment to the overall level of service which is provided to our forces and their families. Indeed, in many aspects an improved level of service has already been achieved.

Mr. Murphy

To ask the Secretary of State for Defence if he will list(a) all of his Department's activities which have been contractorised or market tested, (b) the date of contractorisation and market testing and (c) the overall costs. [30986]

Mr. Arbuthnot

I am writing to the hon. Member and a copy of my letter will be placed in the Library of the House.