§ Mr. MillerTo ask the Secretary of State for Defence if he will make a statement on the outcome of the periodic review of the Defence Bills Agency. [64087]
§ Mr. SpellarThe Periodic Review showed that the Defence Bills Agency, DBA, had performed well against the targets set in the initial Service Level Agreement between the Agency and its MOD customers. The Agency has contained its operating costs with an increased volume of business, achieved higher standards of quality and responded to considerable challenges in the development of Resource Accounting and Budgeting. Following initial operating cost savings of 25 per cent. in the first year, the 331W Agency has realised further efficiencies and is now focusing on transaction costs as the key benchmark for future operations. A summary of this report is being placed in the Library of the House.
The Review was carried out in accordance with the Government's policy of securing best value for money in the provision of Services. We have concluded that this aim can best be achieved by extending Agency status for DBA for a further five years from 1 April 1999. The Agency will be given new and more challenging targets to make progressive reductions in transaction costs, while maintaining and further improving the quality of service, and meeting the Government's commitment to the prompt payment of bills. These targets will be included in a revised Framework Document which will be published in due course.