Outsourcing (Government Departments) Debate
Full Debate: Read Full DebateLord Cryer
Main Page: Lord Cryer (Labour - Life peer)Department Debates - View all Lord Cryer's debates with the Cabinet Office
(12 years, 4 months ago)
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That is an excellent point, and we should be guided by the evidence. If the Minister can demonstrate that that is not the case, I will be interested to hear his response. Certainly, in relation to the national health service, the detailed impact assessment published with the Health and Social Care Bill proved that in-house services were considerably cheaper than those offered by the private sector, as well as being more responsive, accountable and fitting in with the wish for better integration.
A little earlier, different models of provision were mentioned. The coalition Government are promoting different models for outsourcing different services within different Departments—for example, academies and education, the utilities model and the NHS, or payment by result for welfare and benefits. However, although those are different models, the driver is the same. Emergency 999 call centres have been privatised and outsourced together with the administration of the benefit system. The roads on which we drive are the latest to go, as the pace of outsourcing to the private sector speeds up.
Another example is the translation service. Since it was moved into the private sector, a plethora of problems have included translators failing to turn up at court and criminals walking away without being tried because no translator was present.
There are many examples where the proposals for privatisation, outsourcing or whatever models are being piloted have not produced positive results. I do not have the opportunity to list them all owing to a shortage of time, but I am grateful to my hon. Friend for that example.
The Welfare Bill passed through Parliament in March and lays the foundations for billion-pound contracts of five years or more for private companies to run welfare-to-work programmes and the administration of the new benefits system. I believe that the rush to outsource the biggest spending Department—the Department for Work and Pensions—rather than develop a coherent strategy to create jobs and growth in the economy, is a dereliction of duty by the Government.