§ Mr. Tim SmithTo ask the Chancellor of the Exchequer what progress is being made in implementing the report, "Government Purchasing", of December 1984.
§ Mr. BrookeA report by the central unit on purchasing on progress in 1987–88 is published today. It records that in 1987–88 central Government Departments (excluding the Ministry of Defence) reported value-for-money improvements in their purchasing totalling £252 million, equivalent to just under 4 per cent. of total purchasing expenditure and an increase of £84 million on the previous year. For 1988–89 Departments have set targets for value-for-money improvements totalling £337 million, equivalent to 5 per cent. of expenditure and an increase on 1987–88 of £85 million. Taking into account that in 1985–86, the first full year after the purchasing initiative was launched, Departments reported value-for-money improvements of only £70 million, these successive increases in the savings reported by Departments are encouraging. Nevertheless, the report emphasises the need for continuing action by Departments to further improve their organisation, systems and staffing for purchasing and supply, so that efficient procurement becomes a standard part of good management practice. A copy of the report has been placed in the Library of the House.