Health Service (Private Sector Involvement)

Oral Answers to Questions — Health – in the House of Commons at 2:30 pm on 25 October 2005.

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Photo of David Taylor David Taylor Labour, North West Leicestershire 2:30, 25 October 2005

If she will make a statement on the use of the private sector by the NHS.

Photo of Patricia Hewitt Patricia Hewitt Secretary of State, Department of Health

The NHS has always made use of the private sector and will continue to do so to provide services when there are clear benefits for NHS patients through faster access, more choice, better services or better value for money for the taxpayer by helping to improve productivity and innovation All those services, however, will be absolutely consistent with the founding principle of the NHS: treatment based on clinical need and not on ability to pay.

Photo of David Taylor David Taylor Labour, North West Leicestershire

In 1997, we promised to end the internal market and restore the NHS as a public service working co-operatively for patients, as opposed to a commercial business driven by profit and competition. Despite an historic level of investment, however, our county of Leicestershire now faces planned hospital cuts, ward closures and a loss of beds. Does the Secretary of State agree that her marketisation plans are going too far and too fast, and that we risk offering illusory patient choices that will widen inequalities in health and access to health care rather than narrowing them?

Photo of Patricia Hewitt Patricia Hewitt Secretary of State, Department of Health

I do not accept what my hon. Friend has said. As a result of our investment and reforms, we are already delivering substantially improved services to patients—to my hon. Friend's constituents, and to the public throughout the country. But my hon. Friend and I have been re-elected on the 2005 manifesto in which we promised to continue the programme of investment and reform, and to continue selective use of the independent and private sector where that would help us to secure better services for patients. That is what we are doing, and I hope that my hon. Friend will continue to support it.

Photo of Richard Taylor Richard Taylor Independent, Wyre Forest

In the context of the use of the private sector in health care, why has the word "competition" just been changed to "contestability"?

Photo of Patricia Hewitt Patricia Hewitt Secretary of State, Department of Health

I think that "contestability" implies something considerably wider: the challenge that we need in the system so that where parts of the NHS are underperforming, patients will have a wider choice of providers who can help to raise even further the level of innovation that already exists in the NHS. I hope that the hon. Gentleman supports that. As a result of the changes that we have made—the granting of more freedom to foundation trusts, for instance, and the selective use of the private and independent sector—waiting lists are falling faster, and services are improving faster, than many people thought possible three or four years ago.

Photo of Judy Mallaber Judy Mallaber Labour, Amber Valley

My right hon. Friend's Department is currently market-testing purchasing and supply functions in the NHS, with the laudable aim of seeking additional savings for front-line care by expanding central purchasing. Will she assure me that no private sector bid will be accepted without a clear demonstration, to the satisfaction of Members of Parliament, that it can persuade more trusts and hospitals to purchase centrally, that the agency concerned is as efficient as NHS Logistics, which is currently expanding, and that all the safety issues have been taken fully into account?

Photo of Patricia Hewitt Patricia Hewitt Secretary of State, Department of Health

As my hon. Friend knows, we are considering how we can continue to improve the performance of NHS Logistics. No decision has been made, and no decision would be made to move to a different provider unless there was a compelling case for that—and there would, of course, be the usual consultation.

Secretary of State

Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.