HC Deb 19 March 1996 vol 274 cc98-100W
Mr. Redmond

To ask the Chancellor of the Duchy of Lancaster what length of notice customer organisations of the HMSO agency were given regarding its proposed privatisation; and if he will make a statement. [20605]

Mr. Freeman

I announced a review of options for the future of HMSO, with a view to privatisation, on 27 September 1995 and confirmed the Government's intention to sell the business on 13 December. Customers have been aware of our proposals since then.

Mr. Redmond

To ask the Chancellor of the Duchy of Lancaster which functions of HMSO are to be sold in the course of its privatisation; and if he will make a statement. [20667]

Mr. Freeman

HMSO's business includes print, publishing and distribution, office supplies, business systems, office furniture and copiers. It has facilities across the UK to serve its almost exclusively public sector customers.

As I said in the House on 13 December last year, at column 989, the Government intend to privatise the whole of HMSO, apart from a small residual body carrying out statutory and quasi-statutory functions.

Mr. Redmond

To ask the Chancellor of the Duchy of Lancaster what factors underlay his decision on the time scale for privatising HMSO; and if he will make a statement. [20622]

Mr. Freeman

My aim is to complete the privatisation as soon as possible, subject to the need to ensure that the process is fully controlled and that all relevant concerns have been addressed.

Mr. Redmond

To ask the Chancellor of the Duchy of Lancaster what consultations he held with staff of HMSO prior to the announcement of its privatisation; and if he will make a statement. [20662]

Mr. Freeman

I gave details of my contacts with HMSO staff and unions in my answer of 4 December 1995 to the hon. Member for Coventry, South-East, column33. Since then, I have had a further meeting with national and local trade union representatives.

The Government are committed to ensuring that staff are treated fairly during the privatisation, and to ensuring that their legal rights are fully respected. I and my colleagues and officials will continue to keep HMSO staff informed, and are willing to hold further meetings as necessary.

Mr. Redmond

To ask the Chancellor of the Duchy of Lancaster what plans he has for a public consultation in respect of the privatisation of HMSO; and if he will make a statement. [20668]

Mr. Freeman

I and my officials are naturally willing to discuss matters with those with an interest in HMSO. In particular, we have already been in contact with customers and suppliers of HMSO, trade associations, unions and others with a direct interest in HMSO's privatisation.

Mr. Redmond

To ask the Chancellor of the Duchy of Lancaster what steps he is taking to protect the pension entitlement of staff of HMSO after privatisation; what assessments he has made of efficiency gains from the privatisation; and if he will make a statement. [20666]

Mr. Freeman

All those bidding to acquire HMSO will have to offer its staff a pension scheme certified by the Government Actuary as offering broadly comparable benefits to those available in the principal civil service pension scheme. Bidders not fulfilling this requirement will be disqualified.

Privatisation should result in efficiency gains in several areas. Trading in wider markets will enable the privatised business to spread its overheads over a wider customer base, the stationery office will become free to borrow and invest without seeking prior Treasury approval, and it will be freely able to diversify as business opportunities become available. This is consistent with the experience of previous privatisations.

By contrast, if HMSO were to remain in the public sector, it would continue to be constrained by its shrinking market and the rigours of public expenditure controls. In these circumstances, further widespread job losses would be inevitable, resulting in an added burden to the taxpayer.

Mr. Redmond

To ask the Chancellor of the Duchy of Lancaster what assessment he has made of the market value of the skills of HMSO staff for the purposes of privatisation; and if he will make a statement. [20725]

Mr. Freeman

The skills of HMSO's staff contribute to its performance. HMSO's trading record, together with its prospects and the value of its physical assets, provide the basis for the benchmark valuation which will be constructed by my advisors. It is not possible to separate out a value for staff skills, nor is it desirable to make public the overall valuation, since that would damage the Government's negotiating position and their ability to secure the best deal.