§ Mr. Holtasked the Chancellor of the Exchequer whether the Government have had a progress report on departmental purchasing from the Central Unit on Purchasing; and if he will make a statement.
§ Mr. MacGregorThe Director of the Central Unit on Purchasing submitted an interim progress report in August. This shows that Departments have made progress in improving their purchasing and supply activities and made value for money improvements of around £70 million in 1985–86. Further improvements in excess of £100 million are targeted for the present year. This is commendable, but the Unit's Director believes there is room for further substantial improvements.
The central unit is working with Departments to install basic information systems and to improve the expertise and resources needed to enable them to carry out their purchasing and supply activities in a more professional manner. Some Departments have already taken positive steps in this direction. However, further significant progress is needed if Departments are to be able fully to implement Government purchasing policies. The unit is giving priority to helping Departments establish much more challenging value for money targets in the future. They will also be assisting Departments in such areas as control of major capital projects and competitive tendering.