Oral Answers to Questions

Andrew Selous Excerpts

Wednesday 27th April 2011 Commons Chamber

[Mr Letwin]

The right hon. Lady is confusing two levels of lending and investment. There is the question of what the big society bank demands of the investments that it makes, and as I have said, that will be both a social return and a modest financial return, but not the type of commercial return that one might make with a hedge fund or in another such way. Then there is the relationship between the big society bank and the main commercial banks that are party to the Merlin agreement. My right hon. Friend the Minister for the Cabinet Office and Paymaster General is currently discussing the exact terms on which that investment will be made. It will have to be compatible with social objectives and the social returns that the big society bank is intended to make.

[Andrew Selous (South West Bedfordshire) (Con)]

10. What recent progress his Department has made on establishing public sector mutuals.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

In August last year, we launched a pathfinder programme of 21 groups of public sector workers setting up mutuals with the help of mentors. In addition, millions of public sector employees will be given rights to provide public services as mutuals, such as those recently announced in the national health service. That will free up public sector workers to innovate and provide better and more efficient services. We have committed to funding a £10 million support programme to help such new organisations get off the ground. [Interruption.]

[Mr Speaker]

Order. I am bound to say that it is very difficult even for me to hear what the Minister is saying. As a consequence, I feel sorely under-nourished. The situation is unsatisfactory.

[Andrew Selous]

Given the evidence that productivity and efficiency increase dramatically when staff are given a role in shaping services, is not the scaremongering about the proposals on mutuals unhelpful to users, taxpayers and the staff concerned?

[Mr Maude]

Anyone who visits the pathfinder mutuals, talks to the staff—now co-owners—of those organisations and sees the excitement with which they are pursuing their new vocation will give up on the scaremongering. This is a profoundly important movement that should command support from throughout the House.