§ 9. Mr. Thurnhamasked the Secretary of State for Transport what further plans he has for controlling the use of resources in his Department following the report, "Financial Management in Government Departments."
§ The Minister of State, Department of Transport (Mrs. Lynda Chalker)We are currently engaged in a review of the objectives and cost of the Department's activities. An accountancy adviser has recently been appointed and the Finance Directorate is being strengthened to develop the Department's management accounting systems and review the planning and control of programme expenditure.
§ Mr. ThurnhamI thank my hon. Friend for that reply. What further progress has been made since the last report and what benefits have there been to the Department?
§ Mrs. ChalkerOur review of objectives and costs is in progress. A performance indicator and output measures have been developed for the Department's main activities, and several were published in this year's public expenditure White Paper. The MAXIS system has completed its first trial year. We are using it to monitor and control the Department's administrative costs. We are making a significant increase in cost-consciousness throughout the Department, especially by giving line managers far greater freedom to make the best use of their budgets without constant referral.
§ Mr. MacleanWith regard to cost consciousness in the Department, and with a view to improving economic performance, will my hon. Friend pay special attention to 687 the excellent booklet which she has just received from the Temple Sowerby bypass committee, which puts forward proposals for a bypass in my constituency at a fraction of the cost of the one originally planned by the Department, but which was later unfortunately scrapped? Does she agree that that is an economic use of resources?
§ Mrs. ChalkerI congratulate my hon. Friend on his ingenuity. Of course I will examine the booklet carefully. Any sensible cost saving that can be found will be given much further study.