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Treasury

Answer

Mr. Matthew Banks: To ask the Chancellor of the Exchequer what plans he has for that part of the Paymaster agency which is to remain in the public sector. [2110] Mr. Oppenheim: The then Paymaster General announced on 15 July 1996, Official Report, columns 372-73, that the Government were accepting the recommendations of a prior options review concerning the privatisation of the Paymaster agency. He acknowledged that a small part of the agency's banking business must stay in the public sector. This element, which will maintain the formal title of the Office of HM Paymaster General--OPG--will be separated from the agency on 1 November, when the present head of the National Investment and Loans Office--NILO--will be appointed assistant paymaster general and become responsible for the management of the Paymaster General's accounts at the Bank of England. The OPG will remain a separate statutory body within NILO, will manage the future contract for the provision of banking services once the agency is privatised next spring, and will ensure the protection of market-sensitive data.

Secondary information

Type

Written question

Reference

2110; 284 c255W

Session

1996-97

Subjects

Contracts Banks Executive agencies Private sector Privatisation Paymaster General Paymaster Agency National Investment and Loans Office