Shadow transport secretary John Redwood said he would be tabling questions in the Commons after Siemens Business Services was named as the Vehicle Inspectorate's preferred bidder for the MoT vehicle test computerisation programme.

SBS has faced a barrage of criticism for its performance as the contractors responsible for the disastrous introduction of new computer systems at the Passport Agency.

Last week a highly critical National Audit Office report concluded that the shambles at the Passport Agency cost the taxpayer £12.6m and forced about 500 people to cancel their holidays.

Hundreds more holidaymakers were forced to join huge queues to secure their passports as the computer problems held up the issuing of their travel documents.

As a result the Home Office has already ordered SBS to pay a penalty of £166,000.

No checks or contingency plans

The NAO report also criticised management for failing to check the new computer system properly before it was introduced, and for failing to make contingency plans if something went wrong.

Mr Redwood expressed surprise that a firm with such a track record should be entrusted with another substantial government contract.

"If Siemens get the contract, we would expect the government to be reimbursed for difficulties under past contracts and we would want to make sure that responsibility clearly rests on Siemens to make the system work," he said.

The MoT contract was first published in April 1998 and more than 80 companies registered interest. SBS was one of three companies shortlisted in July 1998.

The Vehicle Inspectorate's chief executive, Maurice Newey, said: "The creation of the database and network will enable us to improve our MoT enforcement, training and advisory activities among the network of 19,000 private sector garages which conduct MoT tests.