asked Her Majesty's Government:

Why the Driving Standards Agency has given a contract for the delivery of the driving theory test to an American company and allowed the processing and storing of data to go overseas. [HL3054]

The requirement for IT-based driving theory test examination services was advertised in the Official Journal of the European Union in February 2003 and 67 expressions of interest were received. Nine companies were selected to submit tenders and following a rigorous evaluation process, the contract was awarded to Pearson Driving Assessments Limited (PDA), a UK-registered company.

Data are processed on behalf of PDA in the United States by NCS Pearson Inc, another company in the Pearson group. A three-way data processor agreement covers this arrangement.

The processing and storing of data overseas is allowed because NCS Pearson Inc has “safe harbor” status. This is the standard by which US companies ensure they adhere to the eighth data protection principle of the Data Protection Act 1988 which governs the transfer of data outside the European Economic Area. Safe harbor is recognised by the Information Commissioner as providing an adequate level of protection for the purposes of that principle.