§ Mr. RedmondTo ask the Chancellor of the Exchequer if he will list for each of his agencies what market testing has been carried out into the services they provide and what were the results. [30045]
§ Mrs. Angela KnightThe information requested falls within the responsibility of the chief executives of the Royal Mint, the Office for National Statistics, the Valuation Office and Paymaster agencies. I have asked each of them to arrange for a reply to be given.
Letter from A. J. Longford to Mr. Martin Redmond, dated 22 May 1996:
In your question to the Chancellor (ref: 30045) you ask what market testing has been carried out into the services provided by the Agency and what were the results.The Valuation Office is an Executive Agency within the Inland Revenue and carries out valuations of land and buildings for a wide range of clients in the public sector throughout England, Wales and Scotland, including an estate surveying and valuation service for other government departments, public bodies and local authorities.The main functions of the Valuation Office are to:
- undertake rating and council tax valuation work in England and Wales;
- provide valuation services to the Inland Revenue in England, Wales and Scotland mainly in connection with inheritance tax and capital gains tax;
- provide various other statutory and non-statutory valuation services to Government Departments and the wider public sector in England, Wales and Scotland;
- assess, make and recover contributions in lieu of rates in respect of Crown occupation of properties within the United Kingdom, Isle of Man and Gibraltar and make payments of rates in respect of properties in the United Kingdom occupied by overseas Governments;
- Provide policy advice to Government Departments and Ministers on property valuation matters.
The initiative to undertake market testing for non-statutory work rests with other government departments, public bodies and local authorities and the Valuation Office responds by tendering on a regular basis for estate surveying and valuation services in competition with the private sector.Please let me know if I can assist further.Letter from Roger Holmes to Mr. Martin Redmond, dated 22 May 1996:
The Chancellor of the Exchequer has asked me to reply to your Question about market testing.The Royal Mint has operated as a trading fund since 1 April 1975 and already runs on a commercial basis with normal private sector disciplines rigorously applied. As a leading player in export markets with two-thirds of our sales overseas, all our sourcing decisions must be commercial. In these circumstances the Royal Mint does not operate a formal market testing programme, but managers review regularly whether goods and services should be provided internally or outsourced and, as a result, sub-contract or outsource a wide range of items.I trust my reply is helpful.Letter from Keith Sullens to Mr. Martin Redmond, dated 22 May 1996:
193WThe Chancellor of the Exchequer has asked me to reply to your Question asking if he will list for each of his agencies what market testing has been carried out into the services they provide and what were the results.The following tables show what services PAYMASTER has had market tested and what the results were:
Banking business Service Market Tested Result 56 NHS Trusts and Health Authorities Either retained existing level of business or gained additional business in some cases Teachers' Pensions Agency Lost the banking transaction business but retained the vote funding element NHS Pensions Agency Retained Countryside Council for Wales Retained Further Education Funding Council Retained Funding Agency for Schools Won English Nature Part retained BBSRC Part retained
Pension services Service Market Tested Result Teachers' Pensions Agency Database and Payroll Services Retained Customer Services Lost to in house bidder NHS Pensions Agency Pensioner Payroll and Retained via subcontract with Administration MDIS Pensioner Administration Lost Computer System Letter from Tim Hold to Mr. Martin Redmond, dated 22 May 1996:
194WThe Chancellor of the Exchequer has asked me to reply to your Question of 17 May about market testing of services provided by the Office for National Statistics (ONS).The ONS was created as a new government department and executive agency on 1 April 1996. It brought together the Office of Population Censuses and Surveys (OPCS) and the Central Statistical Office (CSO). This response provides information covering market tests completed by March 1995. Competing for Quality figures for the period between April 1995 and March 1996 are being compiled for the ONS Efficiency Plan. It is anticipated that this information will be published in the 1996 Next Steps Review.CSO Market Testing Activities up to March 1995:
- Activities included in the 1995 Next Steps Review
- Catering Services
- Retail Price Index (local price collection)
- Statistical Methodology
- Training
- Other activities, not published in the 1995 Next Steps Review
- Internal Audit
- Graphic Design Services
- Producer Price Index (computer development)
- Four of these were awarded externally, three retained in-house.
- OPCS Market Testing Activities up to March 1995:
- Activities included in the 1995 Next Steps Review
- Reprographics
- London Housekeeping
- Registration Bindery
- Redevelopment of NHSCR IT system
- Other activities not published in the 1995 Next Steps Review
- Voice and Data Communications
- One of these was awarded to the private sector, four were retained in-house.