§ Mr. Watsonasked the Secretary of State for the Environment if he will make a statement about the top management of the Property Services Agency.
§ Mr. Patrick JenkinThe appointment of Mr. Montague Alfred as chief executive of the Property Services Agency ended yesterday.
Mr. Alfred appeared before the Public Accounts Committee on 27 and 29 February 1984 on matters including the Wardale Touche Ross inquiry into recent cases of fraud and corruption in the agency. When I learnt of the line he had taken in answer to questions, I reluctantly concluded that his answers were inconsistent with the Government's policy on the Wardale Touche Ross report, as set out in a statement I issued on 5 October 1983. It did not seem to me that Mr. Alfred could in these circumstances remain in the Government's service, and his three-year service contract, due to run to the end of this year, has been terminated by mutual agreement. I very much regret this, and would like to thank Mr. Alfred for his services as chief executive since he joined the agency in 1982. Until a successor is appointed, the permanent secretary of my Department, Sir George Moseley, will act as the accounting officer of the agency and the Crown suppliers.
The proposals which Mr. Alfred had put forward for restructuring the agency have already been the subject of wide consultation; many hon. Members have expressed interest in them. It had become evident that the proposals raised questions about whether the existing objectives of the agency should be modified and that questions must be answered before decisions are taken on management and structure. For this reason Ministers are not yet ready to take decisions on restructuring. It is clear, in any event, that the original timetable envisaged for implementing the restructuring proposals is now impracticable. I have therefore instructed the agency to suspend those aspects of contingency planning geared to that timetable.
I am very well aware that the prospect of restructuring has been causing much uncertainty among staff. The Government will make a further statement on the future of the agency as soon as possible.