§ Dr. Cunninghamasked the Secretary of State for the Environment for which aspects of the work of the Audit Commission he is accountable to Parliament.
§ Mr. Patrick JenkinThose over which I have been given some degree of control. My powers and functions under the Local Government Finance Act 1982 are as follows:
- —Powers to appoint, remove, and determine the remuneration of, the Chairman, Deputy Chairman, and Members of the Commission (section 11, Sch. 3 paras 4 and 5).
149 - —Appointment of first Controller, determining his terms and conditions of employment, and approval of appointment of subsequent Controllers (Sch. 3 para 7(1) and (7)).
- —Determining the date by which the Commission must offer employment to notified persons employed in the district audit service (Sch. 3 para 8).
- —Approval of alternative qualifications for auditors appointed by the Commission (Section 13(5)).
- —Approval to the Commission's undertaking audit of bodies connected with local government by agreement with those bodies (Section 29(3)).
- —Powers to meet initial expenses of Commission, to make grants for its working capital, to specify an aggregate borrowing limit, and to make and approve loans to the Commission (Section 35(5) and Sch. 3 para 10).
- —Laying the Commission's Code of Audit Practice (and any alterations of it) and its Annual Report before Parliament; prescribing the form of the Commission's statement of account, directing the date of its submission, and transmitting the statement to the Comptroller and Auditor General for certification and laying before Parliament (Section 14(5) and Sch. 3 paras 12 and 15).
- —Reserve power (exercisable after consultation) to prescribe a fee scale in place of the one prescribed by the Commission (Section 21(7)).
- —Reserve power to require the Commission to direct an extraordinary audit (Section 22(2)).
- —Reserve powers (exercisable after consultation) to direct the Commission as to the discharge of its functions, and to require from the Commission related information — but not in respect of any particular body whose accounts are required to be audited (Sch. 3 para 3(1) and (2)).
§ Mr. Irvingasked the Secretary of State for the Environment what is his latest estimate of the cost of restructuring the Property Services Agency; and if he will take steps to ensure that no escalation of costs will occur.
§ Sir George YoungThe initial broad estimate of additional non-recurring costs included in the proposals now under consideration totalled £l1 million to £12 million. Before my right hon. Friend takes any decision on the proposals, the figures will be revised to take account of any changes which may be made as a result of the consultations now taking place. There may also be revisions as more detailed analysis of the proposals is completed. I cannot at this stage say what the overall effect will be.
§ Mr. Irvingasked the Secretary of State for the Environment whether he will ensure that the proposed restructuring of the property Services Agency will not result in an increased distance between a Department and its clients in some areas, with a subsequent increase in operational costs due to increases in travel and subsistence claims.
§ Sir George YoungNo. The general management structure of the agency cannot be determined on this single factor.
§ Mr. Irvingasked the Secretary of State for the Environment whether the proposed restructuring of the Property Services Agency will be implemented without employing additional staff.
§ Sir George YoungAny implementation of the proposals currently under consideration would have to be accompli shed within the agency's agreed overall manpower ceilings.
§ Mr. Irvingasked the Secretary of State for the Environment in what way the proposed restructuring of the Property Services Agency will (a) make best use of resources and (b) increase efficiency or effectiveness.
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§ Sir George YoungThe proposals would involve:
- (a) the elimination of an entire tier of management in the regional organisation.
- (b) the creation of an organisation structure more closely related to the needs of the agency's main clients; and
- (c) the introduction of improved budgetary control and financial management systems.
Each of these would contribute directly to the objectives referred to by my hon. Friend.
§ Mr. Irvingasked the Secretary of State for the Environment whether he is satisfied that the proposed restructuring of the Property Services Agency will not result in the closure of offices and associated loss of contracts.
§ Sir George YoungAs my hon. Friend knows, the proposals which are now being considered do involve some closures of existing PSA offices, but no decisions have yet been taken. I see no reason why they should in themselves result in any loss of contracts.
§ Mr. Wrigglesworthasked the Secretary of State for the Environment whether he has discussed the proposals to restructure the Property Services Agency with bodies concerned with the quality of the built environment, such as the Royal Fine Art Commission.
§ Sir George YoungNo.
§ Mr. Wrigglesworthasked the Secretary of State for the Environment which Departments of state he has consulted about the proposed restructuring of the Property Services Agency.
§ Sir George YoungConsultations have been held with all the agency's client Departments.
§ Mr. Wrigglesworthasked the Secretary of State for the Environment whether he will conduct an investment appraisal of the proposals to restructure the Property Service Agency before he authorises any expenditure on their implementation; and whether he will lay a copy of the appraisal before the House.
§ Sir George YoungThe restructuring proposals are aimed at the longer-term improvement of the management of the agency and of the effectiveness of its service to clients. It is not, therefore, appropriate to seek to quantify benefits solely by financial measures. Initial broad estimates show costs of some £l1 million to £12 million with an expected pay-back period of three to four years. Should there be any changes in these estimates, either as a result of changes in the proposals themselves or following more detailed analysis of their implications, I will, of course, make the figures available.
§ Mr. Wrigglesworthasked the Secretary of State for the Environment which financial year was used in working out the proposals to restructure the Property Services Agency as the base year for the agency's work load; what was the total work load in that year; what it has been in subsequent years; and what it is expected to be in the current financial year and in 1984–85.
§ Sir George YoungThe initial proposals were developed using the 1982–83 expenditure figures. Overall figures for that year and forecasts for subsequent years are contained in the PSA annual report 1982–83, a copy of which is in the Library.
§ Mr. Wrigglesworthasked the Secretary of State for the Environment what consequential changes there would 151W be in the headquarters directorates of the Property Services Agency should the agency be restructured; how many staff would have to move to jobs out of their normal working area; and what will be the cost of such changes.
§ Sir George YoungDiscussions on the structure and functions of the headquarters directorates are still continuing and the detailed information is not, therefore, available at this stage. It is likely that, if we proceed, there would be some increase in the number of staff in headquarters either as a direct result of the restructuring proposals or from associated changes in functions exercised by headquarters directorates.