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DUCHY OF LANCASTER

Market Testing

Mr. Alan Keen: To ask the Chancellor of the Duchy of Lancaster if he will make a statement on the 12 guiding principles for using market testing and contracting out. [14544]

Dr. David Clark: Following consultation with the Council of Civil Service Unions and the CBI, I have published "12 Guiding Principles in Using Market Testing and Contracting Out" for central Government Departments, including their agencies. I am grateful for the assistance of the Council of Civil Service Unions and the CBI. Wherever possible I have incorporated their suggestions.

The "12 Guiding Principles" have been very well received. They will also apply to private finance initiative projects that involve staff transfers.

The Government's "12 Guiding Principles" are as follows.

1. Our aim is to develop modernised, high quality, efficient, responsive, customer-focused central Government services. Our approach to this is pragmatic not dogmatic.

2. We will work in partnership with the private sector, extending the circle of those involved in public service.

3. We will use market testing and contracting out when in individual cases these can be shown to offer better value for money, that is: better quality services at optimal cost. Our approach to this is pragmatic not dogmatic.

4. Existing plans for market tests and contracting out, therefore, should proceed, unless the Minister is satisfied that in the circumstances of an individual case, better value for money can be achieved by other means, which will enable a Department to live within its running costs ceilings. This judgment should be based on a robust and objective comparison of the particular market test or contracting out exercise and the alternative means available.

5. Ministers remain accountable for services contracted out to the private sector. (That is the Carltona principle is replicated).

6. The energy, skill and commitment of staff are our best assets in modernising public services. They should be properly trained to carry out market testing, contracting out, benchmarking, restructuring and other means for achieving better value for money that is: better quality services at optimal cost.

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7. The concerns of those affected by change should be fully taken into account and properly addressed.

8. Where the relevant circumstances apply when work transfers, staff will be protected by the Transfer of Undertakings (Protection of Employment) Regulations (TUPE) and the consultation and information requirements of those regulations should be followed scrupulously. To avoid a successful claim for constructive unfair dismissal when staff transfer from Crown employment in circumstances to which TUPE applies, Departments should ensure that the new employers offer broadly comparable occupational pension provision or suitable compensation.

9. Full, effective and continuous communication is a key to successful improvement and change. It should begin as soon as a review which might lead to change is mooted and it should continue afterwards to share what has been achieved. It should happen even when there may be little to report. That way, staff, and their recognised trade union representatives, can be engaged throughout and rumours can be avoided.

10. There should also be full and open information and communication with Departments' customers and stakeholders.

11. Relations with the private sector need to rest on two-way openness and trust. Until the Government's new arrangements on freedom of information are in place, Departments should apply a liberal interpretation to the existing "Code of Practice on Access to Government Information" and its "Guidance on Interpretation." Unsuccessful bidders need to know why they were unsuccessful and how they could succeed next time. For the public, it is important to know how much central Government services cost, no matter who provides them. Commercial confidentiality must not be used as a cloak to deny the public's right to know.

12. Senior management in Departments must give leadership in all these areas and should encourage innovation and continuous improvement.

The guidance on market testing and contracting out, by central Government departments, is being up-dated to reflect these 12 guiding principles. The Council of Civil Service Unions and the CBI are being involved in this work.

Computers (Century Date Change)

Mr. Malcolm Bruce: To ask the Chancellor of the Duchy of Lancaster (1) what is his estimate of the total cost of the United Kingdom public sector of resolving the computer millennium problem; and if he will make a statement; [13229]

(2) what assessment he has made of the progress being made by departments towards computer millennium compliance; if he expects all departments and public bodies to have achieved complete computer millennium compliance prior to 1 January 2000; and if he will make a statement. [13231]

Dr. David Clark: I have asked Government Departments to provide me with detailed and costed plans for dealing with the year 2000 date change problem as soon as possible after 1 October 1997.

I am awaiting an analysis and report on these plans from the Central Information Technology Unit and the Central Computer and Telecommunications Agency so that I can form an overall picture of progress, costs and future plans. Once I have done so I will inform Parliament.

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Mr. Malcolm Bruce: To ask the Chancellor of the Duchy of Lancaster if he will list those Departments and agencies which did not respond to the Central Computer and Telecommunications Agency questionnaire regarding progress towards millennium computer compliance, sent out in December 1996 to January 1997. [13230]

Dr. David Clark: In December 1996 and January 1997, the Central Computer and Telecommunications Agency issued a year 2000 questionnaire to a sample of 133 central government departments, executive agencies and other public sector organisations. The majority of large departments and agencies responded to this questionnaire. Departments and agencies which did not respond are listed in the table. Most of these have responded to a follow-up survey carried out in the summer. All departments and agencies are required to complete a full and detailed costed action plan as soon as possible after 1 October 1997.

Export Credits Guarantee Department;

General Register Office for Scotland;

Intervention Board;

Legal Aid Board;

Lord Chancellor's Department;

Scottish Office Agriculture, Environment and Fisheries Department;

Serious Fraud Office;

The Royal Parks;

UK Passport Agency.

Mr. Malcolm Bruce: To ask the Chancellor of the Duchy of Lancaster if he will publish the action plan, due by 1 October 1997, for resolving the computer millennium problem in his Department, its agencies and other public bodies for which he is responsible; if such was fully completed on time; and if he will make a statement. [13632]

Mr. Kilfoyle: The action plans for resolving the computer millennium problem in the Cabinet Office, Office of Public Service, its agencies and associated public bodies are complete. These plans will be published by my right hon. Friend, the Chancellor of the Duchy of Lancaster, when he has completed his analysis of the situation across Government as a whole.

Mr. Malcolm Bruce: To ask the Chancellor of the Duchy of Lancaster what is his latest estimate of the total cost of resolving the computer millennium problem in (a) his Department, (b) its agencies and (c) other public bodies for which he is responsible; if he will state in each case (i) expenditure incurred to date, (ii) expenditure planned for 1997-98, (iii) expenditure planned for 1998-99 and (iv) expenditure planned for 1999-00; and if he will make a statement. [13633]

Mr. Kilfoyle: Estimates of the total cost of addressing the computer millennium problem within the Cabinet Office, Office of Public Service, its Agencies and associated public bodies are:

	To date	1997-98	1998-99	1999-00
(a) Cabinet Office, Office of Public Service	minimal	£27,600	minimal	minimal
(b) Office of Public Service Agencies	£61,128	£50,520	£136,457	£99,350
(c) Other public bodies	nil	nil	nil	nil

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Mr. Malcolm Bruce: To ask the Chancellor of the Duchy of Lancaster when his Department, its agencies and other public bodies for which he is responsible completed the millennium computer compliance audits of systems; and if he will make a statement. [13635]

Mr. Kilfoyle: In the Cabinet Office, Office of Public Service, its Agencies and associated public bodies for which I am responsible, millennium computer compliance systems audits were completed between 1994 and September 1997.

Mr. Malcolm Bruce: To ask the Chancellor of the Duchy of Lancaster if he will make a statement on what funding provision has been made to accommodate the expenditure needed to resolve the computer millennium problem; and if he expects to have sufficient funding to pay for the work necessary to achieve complete millennium compliance by 1 January 2000. [13634]

Mr. Kilfoyle: The expenditure required to address the computer millennium problem will be met from within existing planned expenditure totals.

Mr. Malcolm Bruce: To ask the Chancellor of the Duchy of Lancaster which (a) Minister and (b) civil servant has overall responsibility for ensuring millennium computer compliance in his Department and its associated public bodies. [13636]

Mr. Kilfoyle: Within the Cabinet Office, Office of Public Service, its agencies and associated public bodies, ministerial responsibility for ensuring millennium computer compliance rests with my right hon. Friend the Chancellor of the Duchy of Lancaster. The Cabinet Office civil servant with responsibility for this work is the head of infrastructure. Responsibilities within the agencies are as follows:

	Responsibility
Central Computer and Telecommunications Agency	Year 2000 Programme Manager
The Buying Agency	Director of Finance and IT
Property Advisers to the Civil Estate	Director of Corporate Services
Security Facilities Executive	Director of Finance and IT
Civil Service College	Head of IS Services
Government Car and Despatch Agency	Director of Finance
Central Office of Information	Principal Establishment and Finance Officer

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