HL Deb 20 February 1997 vol 578 cc68-9WA
Lord Wise

asked Her Majesty's Government:

What plans they have for defence agency status for the Armed Forces' personnel administration and pay organisations.

Earl Howe

The Armed Forces Personnel Administration Agency (AFPAA) will be launched on 1 April 1997. The aim of AFPAA is the cost-effective provision, on a tri-service basis, of data and systems for the payment of military personnel, and to support the personnel management function, in peace (including crisis), transition to war and war. The agency will be formed from the Directorate of Naval Personnel Services and the Directorate of Naval Pay and Pensions at Gosport; the Directorate of Administrative Information Systems (Army) at Worthy Down, near Winchester; and the Directorate of Administrative Information Systems (RAF) and the RAF Pensions Branch at Innsworth, near Gloucester. In addition, a small agency headquarters office will be created at Innsworth in the first instance. On formation, the agency will employ some 1,000 civilian and 200 military staff. It is also the intention, at a later date, that pay, pensions and personnel administrative elements of the recently formed Army Personnel Centre (APC) in Glasgow should come within the agency.

The agency proposal followed a feasibility study which concluded that personnel administration offered scope for significant harmonisation and, eventually, the development of an integrated tri-service computer system. Arrangements are in hand to contract a private sector partner under the Government's private finance initiative to deliver most of the services required of the agency. The partner would also be responsible for developing and operating new computer systems to improve efficiency, while at the same time shouldering much of the business risk involved.

AFPAA has developed a comprehensive set of performance indicators, including measures to monitor the quality, timeliness and efficiency of its outputs. The chief executive has been set the following targets for the agency's first full year:

  1. 1. Pay, Allowances and Pensions Payments. While making 100 per cent. of payments of pay, allowances and pensions by the due date, the number of errors per 1,000 payments not to WA69 exceed 10 for pay and allowances, and not to exceed five for pensions.
  2. 2. Accuracy of Personnel Records and Liabilities Data. Determine measures to set baseline of completeness and accuracy of the record of service.
  3. 3. Currency of Personnel Records and Liabilities Data. Update all records within three days of receipt of valid input.
  4. 4. Responsiveness. Resolve inquiries across all three services within 10 working days of receipt.
  5. 5. Customer Satisfaction. Develop systematic and objective methods of ensuring customer satisfaction, in consultation with the owner and customers.
  6. 6. Private Sector Participation. Agree a PFI service delivery contract with a private sector partner by July 1997, to provide significantly better value-for-money than the public sector comparator.
  7. 7. Efficiency. Develop cost ratios and implement appropriate measures for benchmarking efficiency in core personnel administration services.