§ Mr. McAllionTo ask the Secretary of State for Defence what guidance he has issued on the uses to which money awarded under the Department's efficiency exercise incentive scheme can be put; and how the expenditure of such moneys is monitored.
§ Mr. Kenneth CarlisleGuidance was issued to management areas about the way money awarded under the Department's trial efficiency incentive scheme was to be used. The guidelines stated that the scheme was intended to provide as much flexibility as possible on the type of project on which a management area chose to spend its reward, provided that the project did not breach Treasury guidelines and complied with departmental instructions on propriety and value for money; and that the project should benefit the defence community as a whole and/or contribute to its future efficiency. Proposals for projects on which management areas wished to spend their rewards were required to be approved by the relevant service executive committee member, commander-in-chief or the chief of defence procurement, and also by the relevant senior finance officer. Details were reported to a central point where the expenditure could be monitored against the sums awarded.