§ Mr. Malcolm BruceTo ask the President of the Board of Trade what is her estimate of the expenditure of her(a) Department, (b) agencies and (c) non-departmental public bodies on external consultants in (i) 1995–96, 814W (ii) 1996–97, (iii) 1997–98 to date and (iv) 1997–98 full year; and if she will also estimate the cost savings resulting from the employment of such consultants for each of the above years. [26593]
§ Mrs. Beckett[holding answer 5 February 1998]: The value of contracts let centrally to external consultants for 1995–96 was £4.37 million, for 1996–97 was £1.13 million, and for 1997–98 to date is £1.21 million. The estimated forecast for the full year 1997–98 is £4.54 million.
It is not possible to identify separately any cost savings resulting from the engagement of external consultants, whose work typically contributed to broader consultation exercises.
Information in respect of expenditure by non-departmental public bodies on external consultants is not kept centrally and could not he compiled without disproportionate cost.
The above information excludes external consultancies let independently by the Department's Executive Agencies. I have asked Agency Chief Executives to reply separately.
Letter from Peter Joyce to Mr. Malcolm Bruce, dated 19 February 1998:
The President of the Board of Trade has asked me to reply to your question about the estimated expenditure on external consultants and the estimated cost savings resulting from their employment by the Insolvency Service.The costs of external consultants engaged by The Service are as follows:
£ 1995–96 1996–97 1997–98 (to date) Forecast 1997–98 (full year) Shreeveport Ltd 460,492 — — — Bevan Ashford 35,653 — — — Bond Pearce 6,392 — — — Ernst & Young 7.284 — — — Ibbotson Twigg 84,890 — — — Bowrings 2,937 — — — Impact 122,311 — — — Psychological Services — 13,512 12,128 16,240 Birmingham Tec — — 2,562 5,000 Kathy Beavers — — 7,612 10,200 Beamans Management Consultants — 23,427 7,593 11,353 TQM International — — 2,514 7,914 The expenditure in 1995–96 was principally in respect of The Service's contracting out study. Ministers decided that the administrative work of Official Receivers should remain in-house, and in 1996–97 a saving of 8% on the unit cost of case administration, representing some £2 million that year (and subsequently), was achieved.Expenditure in 1995–97 and in the current year principally relates to The Service's commitment to the achievement of IIP accreditation and to the introduction of a new grading and pay system for Service staff.Letter from Dr. Seton Bennett to Mr. Malcolm Bruce, dated 19 February 1998:
The President of the Board of Trade has asked me to reply on behalf of the National Weights and Measures Laboratory to your question about expenditure on external consultants.815WThe last consultant employed by this Agency was in 1995/96, at a cost of £3,800. No consultant has been employed by us in the two subsequent years. The 1995/96 consultancy was a rather small exercise and the resultant cost savings cannot readily be estimated.Letter from Roger Louth to Mr. Malcolm Bruce, dated 19 February 1998:
1. Margaret Beckett, President of the Board of Trade, has asked me to reply on behalf of the Radiocommunications Agency to your Parliamentary Question about expenditure on external consultants.2. Agency expenditure is as follows:
£ Financial year Expenditure 1995/96 256,000 1996/97 860,831 1997/98 to date 1,478,698 1997/98 full year 2,359,819
3. All the expenditure involves the provision of strategic advice. Savings resulting from decisions taken in response to such advice will not be quantifiable for some time. When engaging external consultants "value for money" is the Agency's prime consideration.Letter from John Holden to Mr. Malcolm Bruce, dated 19 February 1998:
I have been asked to reply to your recently tabled Parliamentary Question to the President of the Board of Trade on consultancy contracts; the information you require is as follows:
Expenditure on external consultants £000 Year Expenditure 1995/96 130 1996/97 1,000 1997/98 to date 900 1997/98 full year estimate 1,200 (year to date—9 months grossed up)
Consultants have only been employed—principally in the field of IT—where they represented the most cost-effective, and in some cases the only, solution to deliver a defined business benefit in excess of their cost.Letter from P. R. S. Hartnack to Mr. Malcolm Bruce, dated 19 February 1998:
I am replying for the Patent Office to your Parliamentary Question to the President of the Board of trade about use of external consultants.In 1995/6 the Patent Office spent £138,000 on external consultants and in 1996/7 £124,000. So far it has spent £39,000 in 1997/8 and that is likely to be the total spend. There have been reductions in staff and accommodation costs and efficiency gains through streamlined work practices consequent on these consultancy studies. It is difficult to quantify savings in each and every case but reductions in accommodation needs have, for example, led to continuing annual savings of nearly £140,000 from 1995/6.Letter from Ian Jones to Mr. Malcolm Bruce, dated 19 February 1998:
I have been asked by the President of the Board of trade to reply, in respect of the Employment Tribunals Service (ETS), to your question about expenditure on external consultants.The ETS did not assume responsibility for letting its own contracts until it gained agency status on 1 April 1997. Expenditure on external consultants in the financial year 1997/98 has so far amounted to £64,250.30. The figures you requested for expenditure in earlier years are covered by replies from the Department for Education and Employment (for the former Employment Department) and the Department of Trade and Industry. Planned expenditure for this financial year in full is estimated at £72,250.30.816WSavings resulting from decisions taken in response to consultancy work will not be quantifiable for some time. When engaging external consultants "value for money" is the Agency's first consideration.I hope that this is helpful.