§ Mr. BurnsTo ask the Chancellor of the Exchequer what progress has been made in improving value for money in Government procurement.
§ Mr. PortilloThe Treasury has today published the annual report of its procurement group on progress made in Government procurement.
The group offers advice and guidance to Departments on policy, best practice and the achievement of value for money in public procurement and the management of construction projects.
The report notes that most Departments significantly exceeded their 1992–93 purchasing savings targets. These targets are set to encourage them to seek better value for money in procurement. In the sample area, where total spending is £3.4 billion, savings of £166 million were registered. For 1993–94 Departments have set a collective savings target of 3.5 per cent. The main message of the report is that while progress continues to be made in improving performance in Government procurement, in the management of construction projects and in increasing professionalism and value for money, further work is required if procurement staff are to take full advantage of market opportunities.
Copies of the report have been placed in the Library.