§ Mr. McWilliamTo ask the Secretary of State for Social Security if she will list the PFI projects currently being undertaken by her Department, indicating in each case(a) the expected savings, (b) the savings to date, (c) the cost to date, (d) whether the projects are on target or delayed, (e) the extent of any delay, (f) whether the delay is due to the civil service or agency or the private partner and (g) the projected total cost. [6246]
§ Mr. FieldI refer my hon. Friend to the reply given today by my right hon. Friend, the Secretary of State to my hon. Friend the Member for Bradford, North (Mr. Rooney).
We currently have two PFI contracts—the automation of benefit payments through Post Office outlets—BA POCL—and a replacement for the national insurance recording system NIRS2:
NIRS2
The contract was signed in May 1995, allowing for a phased delivery between February 1997 and April 1999. It is expected to cost some 60 per cent. less than a public sector development. Although there are no operational savings thus far, there will also be no payment to the service provider until NIRS1 is replaced in April 1998.
582WUnder the original contract, NIRS1 was to be replaced in February 1997. In fact, it will not be decommissioned until April 1998. However, the first release of NIRS2 was delivered as planned in February 1997 and the whole development phase remains on schedule for completion in April 1999. The revised implementation date was at the request of the service provider.
The contractor charge will be volume driven, but, over the life of the contract, it is estimated to be some £45 million.
BA POCL
The project is at an early stage. Implementation of the benefit payment card began in October 1996 with a trial involving child benefit recipients. Other benefits will be added to the system over the next few years. The project is expected to be cost-neutral in administrative terms, but, over its life, savings are expected of some £1,200 million from reduced fraud losses.