§ Baroness Park of Monmouthasked Her Majesty's Government:
What was the cost of setting up the Defence Secondary Care Agency, and what are its annual operating costs, including salaries.
Earl HoweThis is a matter for the Chief Executive of the Defence Secondary Care Agency. I have asked the Chief Executive to write to my noble friend.
Letter to Baroness Park of Monmouth from the Chief Executive of the Defence Secondary Care Agency, Mr. Ron Smith, dated 20 February 1997.
I am replying to your Question about the cost of setting up and operating the Defence Secondary Care Agency (DSCA) as this matter falls within my area of responsibility as Chief Executive of the DSCA.
The only costs which can be attributed to setting up the DSCA, as opposed to implementing the broader recommendations arising from Defence Costs Study (DCS) 15 on the restructuring of secondary care, are those incurred by the Secondary Care Agency Review Team (SCART). SCART's task was to determine the structure of the agency and put that structure in place. SCART's total expenditure, which was all incurred in financial year 1995/96, was £3.36 million. Of this total, £2.84 million was spent on setting up the computer systems necessary for the running of the agency and in particular for the production of agency accounts on a commercial basis, and on establishing and equipping the agency headquarters. The balance of £0.52 million covered staff and other operating costs of SCART itself.
Turning to the second part of your question, estimated operating costs for the DSCA in the current financial year are £103 million. This figure compares with the pre-DCS 15 budget for secondary care, in financial year 1995/96, of £165 million. Both these amounts are at 79WA 1996/97 prices. 1995/96 was the last year in which the single Services had responsibility for their own secondary care. The figures also exclude secondary care costs for Germany, which are not part of my agency's responsibilities.
As a result of the restructuring of secondary care, there has been an improvement in its efficiency and effectiveness within the DMS along with substantive savings to the Defence Budget. The new arrangements better reflect the need to support the front line with well trained medical personnel.