§ Mrs. RoeTo ask the Secretary of State for Defence if he will make a statement on the performance of the Hydrographic Office in its first year of operation as a defence support agency and on performance targets for 1991–92.
934W
§ Mr. Archie HamiltonI have today placed in the Library a copy of the Hydrographic Office Defence Support Agency's annual report for the year 1990–91.
At the time of the launch in April 1990 the chief executive was set a number of demanding targets covering quality of service, efficiency and productivity. The results from the first year of operation as an agency have been very encouraging. As the 1990–91 annual report shows, the Hydrographic Office has met or exceeded most of its targets. This has been achieved in a year in which the Hydrographic Office played a significant role in support of Operation Granby.
The need to secure economies in defence spending continues, and defence support agencies which remain an integral part of the Ministry of Defence cannot be exempt from contributing to this process. Against this background, and recognising the progress already made, the key targets for this financial year and beyond have been revised.
On quality of service, the chief executive is required to continue to ensure that all immediate dangers are promulgated by radio navigation warnings within the now reduced period of 20 hours, and to accelerate the programme of modernisation and metrication of charts by reducing the number of imperial unit charts remaining in the inventory by at least 90 such charts per annum. The chief executive is also required to increase the number of new charts and new editions by at least 5 per cent. per annum to 1994–95.
As regards commercial sales a higher target has been set, to increase revenue from such sales by at least 13 per cent. over the first five years of the operation of the agency. Over the same period the aim remains to increase productivity by an average of at least 1 per cent. per annum.
The chief executive has also been required to reduce the agency's net operating costs by £0.9 million per annum but may offset all or part of such a reduction by increasing revenue above that already budgeted.
As regards an overall efficiency target to which the above key targets and other targets in the agency's business plan will contribute, the assumption is that the discipline of the next steps approach and the additional freedoms and flexibilities which agencies receive will allow them to do better in terms of efficiency than in the rest of the Department. The chief executive is, therefore, being required to achieve an efficiency target of 2.5 per cent. this year, compared with 1.5 per cent.for the Department as a whole. I would, however, hope an average of 3.5 per cent. would be achievable over the period 1992–93 to 1994–95.
As the annual report for 1990–91 shows, progress has been made on the remaining two key targets, to develop within 1990–91 an improved system of output measurement and improved management information and management accounting systems. Those targets have now been refined to provide for the development of the agency's financial and management accounting information system by 1 April 1992 and the installation of a fully integrated IT-supported management information system by 1 April 1994.