HL Deb 15 October 1996 vol 574 cc189-90WA
Earl Russell

asked Her Majesty's Government:

Whether the sale of benefit offices by the Department of Social Security will lead to the closure of benefit offices in rural areas, and whether any proposed sale will include guarantees against asset-stripping.

The Minister of State, Department of Social Security (Lord Mackay of Ardbrecknish)

The supplier will not have the ability to dispose of accommodation that is essential to business needs unless an acceptable alternative is supplied. In realising any development opportunities we will ensure that profits from these are shared.

Earl Russell

asked Her Majesty's Government:

Whether, as reported in the Guardian of 29th June, the Department of Social Security benefit offices are to be sold to the private sector and leased back for 20 years, and if so, what is going to happen after 20 years.

Lord Mackay of Ardbrecknish

The department is already in the position of occupying leased accommodation which will expire over the next 15–20 years. On expiry of any lease we need to consider the business need to remain in that accommodation.

When we transfer the estate to the private sector the contract will ensure the supplier meets the department's property requirements for a period of 15–20 years. Our property needs will be continually assessed during that period and any changed requirements will be met by the supplier. The supply of our serviced accommodation requirements will be re-negotiated when the contract expires.

Earl Russell

asked Her Majesty's Government:

Whether a private company administering state benefits has the option of abandoning the contract if it believes the benefit cannot be effectively delivered for the sum of money the Secretary of State has allocated to the purpose.

Lord Mackay of Ardbrecknish

Any contract for administering state benefits will include not only financial agreements, but will also detail the service and quality levels required of the supplier by the Secretary of State. Before a contract is awarded, the DSS will need to be confident that the chosen supplier can deliver that performance for the agreed price. A company "abandoning a contract" would clearly be in serious breach, and the contract itself will include the specific actions the Secretary of State could take against a supplier. Such action is likely to be punitive.

Earl Russell

asked Her Majesty's Government:

If Department of Social Security benefit offices are to be leased to the private sector under the private finance initiative (PFI), how the PFI can be used for activities which do not generate an income.

Lord Mackay of Ardbrecknish

We propose that the Department of Social Security's estate portfolio should be transferred to the private sector under the PFI. In return the successful bidder will provide serviced accommodation to the department for the period of an agreed contract.

The successful bidder will, as the new asset owner and property manager, take on the risks and responsibilities of, for example, building maintenance, vacant space and security. The economic benefits for the taxpayer of the proposals are therefore in the better value for money over the lifetime of the contract and for the private sector there are opportunities to generate additional revenue from commercial development of land or buildings surplus to the requirements of the department.

Earl Russell

asked Her Majesty's Government:

How they propose to ensure that the involvement of private companies in the delivery of benefit in designated areas does not threaten the confidentiality of benefit data.

Lord Mackay of Ardbrecknish

There will be no question of weakening the rigorous controls that currently exist for the protection of customer confidentiality. The contract specifications will contain all the necessary safeguards to ensure confidentiality of information is maintained to the high standards required of civil servants; with all staff involved being bound by the same stringent security and confidentiality rules. These include a requirement for all staff to sign a declaration acknowledging the provisions of Section 123 of the Social Security Administration Act 1992, which makes it a criminal offence to disclose information provided for Social Security purposes.