HC Deb 09 July 1984 vol 63 cc430-2W
Mr. Maples

asked the Secretary of State for the Environment 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. Patrick Jenkin

My Department has employed a range of mechanisms to secure improved efficiency in specific areas and to promote good management as a continuing policy. The achievements since May 1979 include the following:

DOE (Central)

  1. 1. Comprehensive management information systems (MINIS and MAXIS) have been introduced to enable Ministers to review regularly the Department's objectives, its performance, and the deployment of administrative resources. Together with management services, staff inspection, and internal audit, these systems have enabled us to achieve substantial economies and improvements in efficiency.
  2. 2. Functions which can be carried out in the private sector or by public bodies outside the Civil Service have been transferred out of the Department. The hydraulics research station has been privatised, and the Audit Commission and the Historic Buildings and Monuments Commmission have been established; the staff of the Countryside Commission are no longer civil servants. Other work has been contracted out. Some 2,150 posts have been saved as a result.
  3. 3. For the functions which remain, it has been possible to save some 2,460 posts through eliminating unnecessary work, structural streamlining, and improvements in efficiency. Nine Rayner scrutinies have been completed and have helped to contribute to these results: four more are in the programme for 1984–85. Applications of new technology are being developed where appropriate.
  4. 4. As a result of these measures, a reduction in staff of 4,612 (41 per cent.) has been achieved between April 1979 and April 1984. The aggregate saving in staff salaries alone has been £50 million after allowing for payments for services now contracted out.
  5. 5. The drive for efficiency and effectiveness is continuing. A substantial programme of work on Financial Management is in hand. MINIS is being developed with an additional report reviewing performance in relation to each departmental expenditure programme. This enables Ministers to review with officials the aims and objectives of each programme or to assess what is being achieved against these objectives in a systematic manner.
  6. 6. The Department's internal arrangements for financial management are being actively reconsidered, following a recent review (Review of the Role of Finance Divisions in the Department of the Environment, November 1983, copies of which have been placed in the Library of the House).
  7. 7. New financial management arrangements are also being developed with the Department's non-departmental public bodies. Most are now producing corporate plans, which among other things will be used as a basis for discussing and agreeing, at Ministerial level, objectives and targets for future years, and in due course for reviewing past performance against previous objectives.

Unmeasured Water Supply Unmeasured Sewerage Service Environmental Service
Water Authority Standing Charge £ Increase since 1980–81 Per cent. Rate Poundage p Increase since 1980–81 Per cent. Standing Charge £ Increase since 1980–81 Per cent. Rate Poundage p Increase since 1980–81 Per cent. Rate Poundage p Increase since 1980–81 Per cent.
North West 13.00 30 11.00 10 — — 21.00 77.5 0.50 6.4
Northumbrian 8.00 n.a. 21.93 38.8 8.00 n.a. 18.22 45.8 0.60 -(25.0)
Severn-Trent — — 16.70 38 — — 18.50 34.1 0.60 39.5
Yorkshire 5.00 n.a. 24.50 16.7 — — 25.10 66.2 0.50 Nil
Anglian 12.00 20 14.25 37 15.00 n.a. 20.45 21.0 0.70 75
Thames 12.00 100 9.06 25.5 12.00 100 8.96 11.2 0.28 21.7
Southern 7.60 n.a. 14.00 7.7 12.40 n.a. 16.60 11.4 0.55 37.5
Wessex — — 22.40 20.4 — — 23.85 39.8 0.74 39.6
South West 17.20 135.6 15.00 2.7 11.00 n.a. 22.00 11.7 1.40 9.4
Welsh 11.50 64.3 29.24 46.9 6.50 n.a. 29.68 37.4 1.38 25.5

Property Services Agency

  1. 1. PSA similarly operates MINIS which is now in its fifth year. The development of MINIS has been a continuing process and further improvements are planned to establish more specific targets for managers down the line so as to improve accountability and to enable comparisons to be made between similar operating units.
  2. 2. There are also other management information systems covering resource and programme expenditure which have been subject to review to improve their effectiveness. Developments currently in hand include phased installation of micro-computers in all 154 district works offices and the introduction of a computer-based estates records system for the civil estate. In parallel with these measures, a wide-ranging study has been completed to identify a strategy for the long-term development of new systems and the introduction of new technology.
  3. 3. Since May 1979, eight Rayner scrutinies have been completed which, together with a number of PSA internal reviews, have contributed to improve efficiency within the agency. There have been two external studies—the Wardale/Touche Ross report and the NAO report on Building Maintenance Expenditure in the United Kingdom—which have been of particular importance in highlighting a number of areas where improved management performance and better control systems are required. Following these reports, PSA has embarked on major action plans to improve further the management, financial control and value for money of the maintenance process.
  4. 4. Between the period April 1979 and April 1984, the PSA has achieved a reduction in staff of 11,588 (30 per cent.). The major savings have been achieved through the substantial progress made in contracting out more maintenance and design work, but over 3,000 posts have been saved through eliminating unnecessary work, structural streamlining and improvements in efficiency.
  5. 5. In response to the financial management initiative, a substantial programme of work has been put in hand, including measures to provide better budgetary control of both programme and administrative expenditure.
    • Further information on many aspects of progress in both DOE (Central) and PSA may be found in the relevant chapters of the White Paper "Financial Management in Government Departments" (Cmnd. 9058 September 1983): the Government intend to issue a further progress report shortly.