HC Deb 31 October 1996 vol 284 cc255-6W
Mr. Matthew Banks

To ask the Chancellor of the Exchequer what plans he has for that part of the Paymaster agency which is to remain in the public sector. [2110]

Mr. Oppenheim

The then Paymaster General announced on 15 July 1996,Official Report, columns 372–73, that the Government were accepting the recommendations of a prior options review concerning the privatisation of the Paymaster agency. He acknowledged that a small part of the agency's banking business must stay in the public sector.

This element, which will maintain the formal title of the Office of HM Paymaster General—OPG—will be separated from the agency on 1 November, when the present head of the National Investment and Loans Office—NILO—will be appointed assistant paymaster general and become responsible for the management of the Paymaster General's accounts at the Bank of England. The OPG will remain a separate statutory body within NILO, will manage the future contract for the provision of banking services once the agency is privatised next spring, and will ensure the protection of market-sensitive data.