Oral question asked in the House of Lords, by Baroness Murphy (Crossbench). It was answered on Tuesday, 9 March 2010.

NHS: Competition

Question: Does the Minister agree that reversing a successful policy after approximately 10 years by an announcement at a party conference at the end of September looks very much like a sodden sop, pre-election, to the public sector unions? What impact do the Government feel that this reversal of policy will have on the co-operation and competition panel? In my view, it is clear that it will have a major impact.

Answer: I refute the suggestion of the noble Baroness about this policy. It seems to us that the preferred provider policy sets out the grounds on which NHS services can be challenged, so that staff know where they stand and so that they will have the opportunity to improve services before those services are put out to tender. There is no expectation or intention either to freeze out private or third sector providers, or to diminish their contribution to NHS services. The decisions of the co-operation and competition panel are based on our policy. I will go back and investigate whether there is a problem here, but I think the noble Baroness is mistaken.

Secondary information