HC Deb 16 March 2004 vol 419 cc215-6W
Paul Holmes

To ask the Secretary of State for Work and Pensions (1) pursuant to the answer to the hon. Member for Tatton (Mr. Osborne) on 10 February 2004,Official Report, column 1342W, on the New Deal for Young People, what the projected cost is for the unit costing system to be operational in April; and if he will make a statement; [156657]

(2) pursuant to the answer to the hon. Member for Tatton (Mr. Osborne) on 10 February 2004, Official Report, column 1342W, on the New Deal for Young People, what the original projected date of completion was for the Resource Management System; what the current projected completion date is for the system; what the original projected cost of the system was; what the current projected cost of the system is; what the reasons are for the delays in introducing the system on time; and if he will make a statement. [156658]

Mr. Browne

Our initial aim was for the Department's Resource Management System (RMS) to become operational from April 2003, with costs estimated at £144 million1. However, initial negotiations with suppliers resulted in proposals that did not meet the Department's requirements, both in terms of value for money and management of the system.

Competition for the contract for Resource Management Systems operations work is in progress under EU rules. We have advertised for the provision of operational services through the Official Journal of the European Union and a small number of potential bidders have qualified. A statement of requirements is being drawn up with the aim of issuing an Invitation to Tender in April 2004, and awarding a contract in August 2004.

Costs and completion dates will be determined during the tendering process but planning assumptions are that roll out of the new system will commence from September 2005 for 12 months, with likely costs estimated at £151 million1.

Information on the projected cost of the unit costing system, scheduled to be operational in April, is not separately available. 1Figures are rounded to nearest million.