§ Mr. Eggarasked the Chancellor of the Exchequer if he will list and describe the studies from within or without his Department relating to the effectiveness and efficiency of his Department together with the recommendations and action taken on those recommendations.
§ Mr. HayhoeBecause of its central responsibilities, shared with the Management and Personnel Office, for the pursuit of economy and efficiency across central Government as a whole, the Treasury is continuously involved in stimulating and contributing to a wide range of studies and reviews in other Departments or groups of Departments. Such activity is fundamental to the effectiveness and efficiency of the Treasury itself, for example in relation to expenditure control, the procurement and effective use of computing and telecommunications equipment, and the introduction and improvement of management accounting systems.
The Treasury has also conducted various studies with a view to improving the effectiveness and efficiency of its internal operations. These include policy reviews, Rayner scrutinies and participation in centrally co-ordinated multi-department reviews, as well as those mounted as part of continuous work in the fields of staff inspection, management services and internal audit. Such studies form an essential part of normal good management, and have 352W been given extra impetus both specifically by the reorganisation of the central Departments in 1981 and generally by this Government's determination to cut out unnecessary work, simplify administration and get the best value for the taxpayers' money. Full details of all such studies and the action resulting from them could be assembled only at disproportionate cost. Their scope may be judged from the following examples taken from recent years.
A policy review on forecasting and macro-economic analysis confirmed the need for an internal Treasury capacity in both respects. It resulted in a better directed and co-ordinated forecasting effort and some manpower savings. The seven Rayner scrutinies carried out in the Treasury have covered areas as varied as the support services, which have resulted in a streamlining of the paper-handling and typing services in the Department; the staffing and organisation of the public expenditure divisions, which recommended changes, currently being implemented, in the posting arrangements and training of those engaged in the control of public expenditure; and the Civil Service catering organisation, the recommendations from which are currently being considered. Immediately following the reorganisation of the central Departments in 1981, a study was mounted and has since been implemented to ensure the fullest integration of the functions of expenditure and manpower control. A study has recently been completed of the Department's management accounting system, and the action flowing from this should improve the effectiveness and efficiency of both line management and the supporting services, and enable modern information technology to make a full contribution to financial management in the Treasury.
Current work includes a study to evaluate the potential for extending the use made by the Department of word processing facilities, and participation in the review of administration forms across many departments. The Treasury is also preparing plans for its own financial management under the initiative described in Cmnd. 8616—"Efficiency and Effectiveness in the Civil Service"—as well as overseeing centrally with the Management and Personnel Office the development of this initiative across Departments generally.
In addition, my Department is subject to the full range of examinations carried out by the Exchequer and Audit Department, the results of which are reported to the Public Accounts Committee of the House of Commons.