§ Mr. FrenchTo ask the Secretary of State for Defence what success he has had in persuading the services to implement efficency and savings.
§ Mr. Archie HamiltonA specific efficiency programme was introduced on 1 April 1988, to last for three years. The target is to enhance efficiency, either by producing the same output from reduced input or by increasing output from the same input, by 2½ per cent. per annum. This target encompasses the whole of the defence budget except for service pensions and capital equipment procurement, the latter being the subject of separate value for money initiatives. This is an important initiative aimed to ensure that we make the most cost-effective use of the resources available to us. It has the full and enthusiastic support of the top management of the department, including the service chiefs of staff.