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Post Office

Mr. Llwyd: To ask the President of the Board of Trade if he will make a statement on the future of the Post Office. [10002]

Mr. Oppenheim: The Government's plans for the future of the Post Office were set out in a statement on 11 May 1995 by my right hon. Friend the then President of the Board of Trade.

Small Firms

Mr. David Nicholson: To ask the President of the Board of Trade what is the outcome of the recent review of the small firms loan guarantee scheme; and what changes he proposes to make to the rules. [12816]

Mr. Page: I expect to be able to make an announcement shortly.

Departmental Payments

Mrs. Roche: To ask the President of the Board of Trade what discussions his Department has held with other Government Departments following the publishing of the figures showing percentages of bills paid late in 1994-95. [12224]

29 Jan 1996 : Column: 515

Mr. Page: My hon. Friend the Economic Secretary to the Treasury is responsible for issuing guidance on monitoring methods and payment policies to Government Departments.

As Minister for Small Business, I have also stressed the importance of prompt payment at meetings with all the small firms Ministers across the Government and shall continue to do so.

In addition, this Department has substantially improved its payment performance over the past year. I recognise the need to build on this improvement and this Department will re-examine payment procedures and checking systems will be made even more comprehensive.

Business Links

Mrs. Roche: To ask the President of the Board of Trade how many inquiries business links handled in the last year for which figures are available. [11962]

Mr. Page: During the period October 1994 to September 1995, business links provided advice and information to the following numbers of companies:


Each company is counted only once each quarter. To the extent that some companies may seek information and advice more than once in each quarter the total number of inquiries dealt with will be higher than above.

British Gas

Mr. Wigley: To ask the President of the Board of Trade if he will hold discussions with the Office of Gas Supply about the measures which should be taken to ensure that the cost of take and pay contracts entered into by British Gas is not passed on to gas consumers. [11498]

Mr. Eggar: The Government have decided not to include a provision in the standard conditions of the gas shippers licences to recover the costs of "take or pay" contracts. Regulation of prices in the tariff market is, and always has been, the responsibility of the independent Director General of Gas Supply.

Value Added Tax

Mr. Gordon Prentice: To ask the President of the Board of Trade how many businesses (a) registered and (b) deregistered for VAT in (i) the north-west and (ii) Pendle in 1994 and 1995. [12598]

Mr. Page: The latest available figures are for 1994 and are as follows:

VAT registrations and deregistrations in 1994

RegistrationsDeregistrations
North-West17,37517,751
Pendle261246


29 Jan 1996 : Column: 516

The above estimates include adjustments for the effects of the changes in the VAT threshold in November 1993, and hence differ from those published elsewhere by Her Majesty's Customs and Excise.

Scott Inquiry

Mr. Robin Cook: To ask the President of the Board of Trade if copies of draft sections of Sir Richard Scott's report are in the possession of Ministers or officials in his Department other than those to whom draft sections of the report were sent by Sir Richard Scott. [11876]

Mr. Lang [holding answer 25 January 1996]: In forwarding sections of Sir Richard Scott's report to Ministers and officials, the inquiry expressly stated that individuals could at their discretion make a copy for a legal or other adviser and another for the Department concerned. Whether they did so is a matter for the individuals concerned.

Mr. Robin Cook: To ask the President of the Board of Trade if (a) Ministers and (b) officials in his Department have used copies of draft sections of Sir Richard Scott's report to prepare the Government's response to Sir Richard Scott's report. [11877]

Mr. Lang [holding answer 25 January 1996]: No decision about the response to Sir Richard Scott's report will be taken until the report has been received.

In considering issues relating to the Scott inquiry, all Departments naturally take account of material properly available to them.

Departmental Expenditure

Mr. Malcolm Bruce: To ask the President of the Board of Trade what assessment he has made of the expenditure of his Department, agencies and non-departmental public bodies on all external consultants including management consultants for each of the years (a) 1979-80, (b) 1989-90, (c) 1991-92, (d) 1993-94, (e) 1994-95 and (f) 1995-96 (i) to date and (ii) as estimated for the whole year; what estimate he has made of such expenditure for 1996-97; and if he will estimate the savings accruing to his Department from the use of consultants in each of these years. [11387]

Mr. John M. Taylor [holding answer 25 January 1996]: The value of contracts let centrally to external consultants including management consultants for 1993-94 was £24.17 million, for 1994-95 it was £6.66 million, and for 1995-96 to date it is £3.96 million. Other information on central expenditure can be provided only at disproportionate cost.

Information on savings is not collected centrally and estimates can be provided only at disproportionate cost.

Information in respect of non-departmental public bodies is not kept centrally and could not be compiled without disproportionate cost.

The above information excludes external consultancies let independently by the Department's executive agencies. I have asked agency chief executives to reply separately.

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Letter from R. D. Worswick to Mr. Malcolm Bruce, dated 24 January 1996:


Letter from P. R. S. Hartnack to Mr. Malcolm Bruce, dated 29 January 1996:



    The President of the Board of Trade has asked me to reply, in relation to the Patent Office, to your Question about the use of external consultants.
    The Patent Office made no use of external consultants in 1992/93, 1993/94 and 1994/95. In 1995/96 expenditure to the 31st December 1995 is £113,204 with the full year estimated at £130,000. In 1996/97 provision has been made for £100,000 as continuation of existing work aimed at identifying scope for savings in activities such as marketing and use of computer services. Figures relating to 1979/80, 1989/90 and 1991/92 are not available and could only be provided at disproportionate cost.
    The savings accruing to the Office from this work will depend on the extent to which better value for money can be obtained while preserving the current quality of service.

Letter from Seton Bennett to Mr. Malcolm Bruce, dated 29 January 1996:



    I have been asked by the President of the Board of Trade to reply on behalf of the National Weights and Measures Laboratory to your question concerning expenditure on external consultants.
    I regret that information is not available for 1979-80, but the figures for the years since 1989 are as follows:

    £ thousand
    1989-90Nil
    1990-912
    1991-9210
    1992-9322
    1993-9458
    1994-9539
    1995-96 (to date)30
    1995-96 (full year estimate)35
    1996-97 (estimate)30

    The consultants employed have provided exclusively technical advice, mostly related to accounting changes and the development of the Agency's quality system. It is therefore impossible to estimate what savings, if any, may have accrued as a result.


29 Jan 1996 : Column: 518

Letter from David Durham to Mr. Malcolm Bruce, dated 29 January 1996:



    Mr John Taylor MP has asked me to reply in respect of Companies House Executive Agency to your question to the President of the Board of Trade on the expenditure of external consultants; and the estimated savings derived from the use of consultants by Companies House Executive Agency, for certain years since 1979.
    The information you sought is as follows:

    Expenditure on Consultants

    Year£ thousand
    1993-94172
    1994-95122
    1995-96 (to date)167
    1995-96 (full year forecast)279

    The expected expenditure for 1996-97 is not available at this stage, as Companies House is still developing its budget plans for next year.

    Information on earlier years can only be provided at disproportionate costs.

    There are no direct savings attributed to the above consultancy costs, since the consultants were employed by Companies House to provide technical advice on matters such as structural building repairs and IT system design and implementation.

    I trust you will find this information helpful.


Letter from Michael Goddard to Mr. Malcolm Bruce, dated 29 January 1996:



    The Parliamentary Under Secretary of State for Competition and Consumer Affairs, has asked me to reply to your Question about expenditure on external consultants.
    2. The Agency did not assume responsibility for letting its own contracts until 1994. Expenditure on external consultants, including management consultants, in FY 94-95 amounted to £237,207, and to date in FY 95-96 to £247,377. Expenditure in earlier years is covered in Mr. Taylor's reply to your question. Planned expenditure in FY 96-97 is unlikely to exceed the level of previous years.
    3. All the expenditure in FY 94-95 and FY 95-96 involved the provision of strategic advice. Savings resulting from decisions taken in response to such advice will not be quantifiable for some time. When engaging external consultants "value for money" is the Agency's prime consideration.

Letter from Peter Joyce to Mr. Malcolm Bruce, dated 29 January 1996:



    The President of the Board of Trade has asked me to reply to your question about expenditure on external consultants and the estimated savings resulting from their employment by The Insolvency Service.
    Details of the costs associated with external consultants engaged by The Service are:

    Cost including VAT
    Organisation Purpose1993-94 £1994-95 £1995-96 to date £1995-96 estimated total £
    Coopers and LybrandAccountancy support--60,000----
    KPMGMarket test45,000------
    Ernst and YoungMarket test and accountancy support107,80013,100----
    Price WaterhouseUser survey--124,800----
    Stoy HaywardContracting out and management consultancy76,67094,150----
    Shreeveport Ltd.Contracting out--129,000421,100506,400
    Bevan AshfordContracting out----26,46536,500
    Bond PearceContracting out--10,100--10,000
    Total 229,470431,150447,565552,900

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29 Jan 1996 : Column: 519



    Prior to 1994 contracts for consultants were let by the Department of Trade and Industry, and information in relation to 1992 and 1993 was provided in a Parliamentary Question No. 146 for Ms Diane Abbott MP dated 25 January 1994, Columns 211-217. Information on consultancies prior to 1992-93 can only now be provided at disproportionate cost.
    The Service has also used outside private sector organisations for advice on, development of and delivery in relation to specialist areas such as training, design and information technology systems. Details of the organisations concerned, the payments made to them and any estimate of savings accrued could only be provided at disproportionate cost.
    The £60,000 payment to Coopers and Lybrand for accountancy support for the Agency was in and about the setting up of systems to enable it to produce commercial style accounts.
    Ernst and Young were engaged in 1993-94 to prepare a specification for the market test of The Service's Central Accounting Unit and to assist with the evaluation of the bids at a cost of £107,800. KPMG were engaged to assist the in-house bid team in the preparation of their bid at a cost of £45,000. The annual saving in the overall cost of the activities market tested is approximately £85,000 in each of the five years of the resulting Service Level Agreement.
    Ernst and Young were also engaged in 1995 on accounting reconciliation work for the Central Accounting Unit at a cost of £13,100. This did not produce direct savings but provided independent professional assurance that financial data had been properly transferred to the CAU's new computer system (BANCS).
    Consultants have been engaged by The Service throughout the period of the current contracting out exercise which has yet to reach its conclusion. Any estimate of savings accrued as a result could only be determined once the decision has been taken on contracting out.


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