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11 Jul 2005 : Column 737W—continued
NHS Logistics
Mr. Mike Hall: To ask the Secretary of State for Health (1) what assessment she has made of the fitness for purpose of the IT system at NHS Logistics; and what assessment she has made of the requirement for a new IT system to expand the market served by NHS Logistics; [9491]
(2) if she will publish the report by KPMG on IT systems used by NHS Logistics and the IT systems capacity required to service the NHS supply chain. [9493]
Jane Kennedy: The NHS Logistics Authority (NHSLA) undertakes an annual review of its information technology strategy, which covers issues such as system capacity and fitness for purpose. KPMG, NHSLA's internal auditor, has assisted NHS Logistics with these reviews. The reviews have concluded that the existing systems, with future planned enhancements, are capable of meeting the known medium term needs of the national health service and NHSLA.
KPMG prepares reports for their client, NHSLA, on a confidential basis and, therefore, it has no plans to publish these reports.
Jonathan Shaw: To ask the Secretary of State for Health when the last significant restructuring of the management of NHS Logistics was. [9632]
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Jane Kennedy: The last significant restructuring of the management of NHS Logistics was implemented in April 2000. This restructure was a result of recommendations made by the 1998 Cabinet Office Review of NHS Procurement. NHS Logistics has been subject to one internal management restructure since 2000, which was implemented in April 2003.
Jonathan Shaw: To ask the Secretary of State for Health what growth occurred in the supply of goods by NHS Logistics, including the share of the NHS consumables market each year since 1997, broken down by (a) volume and (b) value. [9633]
Jane Kennedy: The NHS Logistics Authority (NHSLA) was formed in April 2000 and the income generated from the supply of goods is shown in the table. During this time, product revenues have grown by an average 8 per cent. per annum, which is a 38 per cent. increase on NHSLA's first year activity.
| Sales (£000) | |
|---|---|
| 2000–01 | 529,812 |
| 2001–02 | 560,695 |
| 2002–03 | 593,288 |
| 2003–04 | 677,928 |
| 2004–05 | 732,051 |
The national health service non-pay spend is circa £13billion per annum and the consumable healthcare element, the area in which NHSLA operates, is estimated at around £4.2 billion.
This healthcare element has also grown by an average 8 per cent. per annum, resulting in a stable NHS logistics market share estimated at 18 per cent. by value and 70 per cent. by volume.
Jonathan Shaw: To ask the Secretary of State for Health whether NHS Logistics management has been asked by her Department to prepare a business plan relating to future expansion. [9634]
Jane Kennedy: As part of the business case process and evaluation of bidders' responses to the invitation to submit outline proposals, the NHS Logistics management was asked to prepare a 10-year forecast.
Jonathan Shaw: To ask the Secretary of State for Health (1) whether NHS Logistics management has prepared a business plan relating to future expansion; [9635]
(2) what the market growth target for NHS Logistics is. [9636]
Jane Kennedy: The NHS Logistics Authority has prepared a business plan for the 2005–2006 financial year, which was approved by the Department. NHS Logistics has also produced a three-year corporate plan approved by the Department.
NHS Logistics sales budget target for 2005–06 is £777 million.
Judy Mallaber: To ask the Secretary of State for Health what consultation has been undertaken with stakeholders on the future provision of each category of products used by NHS bodies but not supplied by NHS Logistics. [9904]
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Jane Kennedy: The National Health Service Purchasing and Supply Agency and NHS Logistics have an established network and ongoing contact with NHS trust level supplies managers, supply management confederations and collaborative procurement hubs. This is supplemented by an extensive range of product and category specific commodity advisory groups, comprising NHS product users and other stakeholders.
These communication streams are consulted and provide input into the contracting process for the consumable products routed through NHS Logistics and also for those products that are supplied directly to the NHS. Selection of the most appropriate supply route for products is a key component of the contracting process and NHS Logistics is considered for all consumable product categories.
NHS Pensions
Harry Cohen: To ask the Secretary of State for Health whether she has fully funded the NHS for the costs its has incurred from its commitment properly to contribute to its staff pensions; and if she will make a statement. [9351]
Mr. Byrne: The Government Actuary periodically assesses the current and prospective liabilities of the national health service pensions scheme and recommends a contribution rate at a level commensurate with those liabilities. The employer's contribution rate is currently set at 14 per cent. of pensionable pay.
The costs of employers' pension contributions are taken into account in setting allocations.
NHS Supplies Service
Judy Mallaber: To ask the Secretary of State for Health if she will publish the business case for inviting companies to submit bids to provide the NHS supplies service. [9464]
Jane Kennedy: The business case contains commercially sensitive information and is not publicly available.
Judy Mallaber: To ask the Secretary of State for Health on what basis bidders to provide the NHS supplies service were accepted for the shortlist who may now be invited to negotiate. [9465]
Jane Kennedy: Under the European Union procurement rules, bidders were subject to a pre-qualification process. This process was conducted by the Department in conjunction with NHS Logistics and the NHS Purchasing and Supply Agency.
Pre-qualification assessed bidders on technical skills, financial standing and willingness to comply with the Transfer of Undertakings for Protection of Employment (TUPE) legislation and Treasury guidance on staff transfers and pensions.
Mr. Mike Hall: To ask the Secretary of State for Health whether potential bidders to run the NHS supplies service have been advised that they require a new IT system. [9492]
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Jane Kennedy: The invitation to submit outline proposals did not refer bidders to the need for a new information technology system, but explained that change to the system was envisaged over the 10 years of a potential contract.
Mr. Mike Hall: To ask the Secretary of State for Health what assessment she has made of whether additional warehouse capacity that may be required for the expansion of the NHS supplies service provided by NHS Logistics or its successor should be (a) rented and (b) purchased. [9494]
Jane Kennedy: The NHS Logistics Authority has undertaken an assessment of its future warehouse capacity requirements. This indicated that the preferred option for future provision of additional capacity was through a contract with a third party service provider. The third party provider would be responsible for the provision of warehousing capacity and other resources needed to fulfil the contract.
Judy Mallaber: To ask the Secretary of State for Health what specifications for IT equipment have been laid down for potential bidders to run the NHS supply service. [9963]
Jane Kennedy: The current specifications for information technology equipment, as used by NHS Logistics, will continue to be used.
NHS Suspensions
Mr. Lansley: To ask the Secretary of State for Health what estimate she has made of the proportion of (a) medical and (b) non-medical clinical staff who were suspended from work pending a fitness-to-practise investigation and subsequently return to work if they are cleared. [9362]
Mr. Byrne: This information is not collected centrally.
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