asked the Secretary of State for Social Services whether he will seek to encourage health authorities to reduce the proportion of their costs expended on clerical, administrative and ancillary services.

We have already pressed health authorities to seek the most effective use of resources in providing services to patients, and have welcomed examples where resources have been switched to patient care from administration and support services. We are also consulting on proposals to simplify the structure and management arrangements of the Service. If these are implemented, in the longer term they should lead to a reduction of up to 10 per cent. in management costs, which would free about £30 million a year for expenditure on services to patients.