§ Mr. Maplesasked the Secretary of State for Energy what steps have been taken by his Department since May 1979 to improve its efficiency; what has been the result; what further steps are currently being taken to improve efficiency; what the results are expected to be; and what output criteria have been developed by his Department to help measure its efficiency.
§ Mr. Peter WalkerThe need for virtually every post in the Department has been examined individually since 1979 and critical scrutiny is being maintained. Five efficiency studies have been carried out and a sixth is due to start shortly. A number of management studies have led to streamlining of procedures. Substantial reorganisation has taken place.
Taken together these initiatives have contributed to a gross reduction in manpower of around 16 per cent. without any major loss of function and with some 426W activities, for instance on energy efficiency, being stepped up. My target of reducing staff numbers by a further 7 per cent. by 1988 is well above average for small departments.
Since 1979 there has been a reduction in the real costs of running my Department. I am confident that the target I set of saving a further 1 per cent. of running costs this year through even greater efficiency will be met.
My Department has developed its management information and budget systems in line with the principles of the financial management initiative. They are described in more detail in Cmnd. 9058 "Financial Management in Government Departments", published in September 1983. The scope for using output measures in a small policy department is limited, but ways of extending their use are being examined.