Select Committee on Public Accounts Minutes of Evidence


Examination of witnesses (Questions 140 - 159)

WEDNESDAY 25 FEBRUARY 1998

MR FRANK MARTIN, Second Treasury Officer of Accounts, HM Treasury, further examined. SIR PAUL CONDON, QPM, and MR DAVID OMAND

  140.  Perhaps it was before your time. We had a rather amusing exchange in relation to computers which rather confirmed our doubts about anyone computerising actually! It has taken you about six years to develop these things, I think you said. Why so long?
  (Sir Paul Condon)  When I returned to the Met in 1993, the Met for historical reasons was under-provided in terms of technology. We needed to provide a new radio system, a new command control system, new crime computers, to support the intelligence-led policing approach which has led to, I think, the dramatic reductions in reported crime in London. When we were faced with the tough choices of, did we put all our eggs into the operational basket or into the support basket, most of the effort in those early two or three years went into the operational front end for the specific benefit of the public. The personnel computer system has been running for a number of years. It has been a bottom-up approach to infrastructure and that comes to fruition in the timescale I have said. But we have delivered in that same time the most sophisticated crime computer system in the world, we have delivered probably the best personal radio system of any large city anywhere in the world, and the Audit Commission and others show we provide the best emergency response through our command control of any major city in the world. So I would pray in aid a significant record of achievement in computerisation over the last five years, but we cannot do everything at once.

  141.  I understand that. I was just asking about the system and after six years you still were not able to tell the NAO the amount of overtime which was required as a result.
  (Sir Paul Condon)  Because it is not fictional, but it is purely speculation.

  142.  It should not be speculation if it is working properly, should it?
  (Sir Paul Condon)  Well, it is speculation because if someone goes sick tonight at a location, the chances are that there will be no overtime incurred at all.

  143.  You have said that and we understand that, but a personnel computer system which does not record the facts is not much good, is it?
  (Sir Paul Condon)  It may record the facts, but you get into a cost-benefit analysis where you have to ask whether that piece of information worth is perhaps a million pounds' expenditure on. If I thought we were using lots of overtime to backfill on sickness, then a cost-benefit analysis would suggest it was a worthwhile thing to do.

  144.  How much has it cost so far?
  (Sir Paul Condon)  The PIMS computer?

  145.  Yes.
  (Sir Paul Condon)  I do not have the full costs to hand, though I can certainly give them to you, but we are talking in single figure millions. If I may, sir, I would rather let you have a note on that.

  146.  It is in millions, but less than 10 million?
  (Sir Paul Condon)  Yes.

  147.  Well, if you let us have a note on that and perhaps you will also let us have a note on compatibility with the divisions[4] because if the divisions cannot speak to it, it is difficult to see how it will work, but a note will do. Can I then jump to a point raised by Mr Hope? He raised the question of medical retirement and, if I come on to the first point, I want to clarify the costs of this. Now, on early medical retirement, I think you said, and it may have been in reply to the Chairman, that it cost £57,000 per person, was it?
  (Sir Paul Condon)  It is a very personal computation based on each individual, depending on length of service, whether they are going out with a straightforward medical pension, whether they have any——

  148.  I understand that. It is only the average I am asking about. I do not want you to go into detail.
  (Sir Paul Condon)  The average for the relevant year, 1996/97, and again if I may confirm by note, sir, to make sure I get the accuracy, the figure I have in my mind is an average of about £57,0001.

  149.  Well, if it is not, just pop a note in.
  (Sir Paul Condon)  That is a product of a colleague commuting their pension. They can commute up to a quarter of their pension and take a lump sum.

  150.  Yes, I appreciate that. Did you say that 457 of your officers take early medical retirement a year?
  (Sir Paul Condon)  The figure in this report, and again I cannot remember this exactly, but I think it was 457 or 458 in the last year.

  151.  So that means that early medical retirement is costing you £26 million a year. Is that £26 million a year part of the £72 million or is it in addition to the £72 million cost?
  (Sir Paul Condon)  The £72 million is the opportunity cost lost through officers being sick when they could be working, so it does not embrace the cost of medical pensions1.

  152.  So really the cost of illness to you is not £72 million, but it is at least £98 million, the cost of them retiring and the ongoing costs, so in fact a third of your costs in relation to sickness, or the equivalent to a third of your costs in relation to sickness is the cost of retirement.
  (Sir Paul Condon)  Hence the importance that I and others have placed on this and why we are looking forward to the pension review.

  153.  I was only trying to get to the reality. You must understand, I am sure you do, you have been here often enough, the reason we are asking these questions is not because we are antagonistic, but it is our job to ask questions of you.
  (Sir Paul Condon)  And I respect that entirely, sir.

  154.  If we do not ask the questions, you might ask them of your colleagues.
  (Sir Paul Condon)  It is helpful, sir, because I think we need the force of this Committee and others to encourage reform of these areas.

  155.  Can I just explore then a little further what you said to Mr Hope. If I understood correctly, you accepted his proposition that some people use the medical route to escape disciplinary action, but you rightly said that you are hoping that action will soon be taken by the Home Office in this respect.
  (Sir Paul Condon)  To put that into context, before the Home Affairs Committee when I was asked to quantify that, then it was the figure, which again if I may confirm it by a note[5], but I think the figure that I had researched and prepared was perhaps 34 officers over a three-year period where we had anxieties that there was an unhelpful interplay between sickness provisions and the disciplinary provisions.

  156.  So that cost you £2 million?
  (Sir Paul Condon)  It would depend on their age and service, but they may not have been typical of colleagues generally.

  157.  But accepting your average and accepting your number of people, as a ballpark figure, it has cost you around £2 million over the last three years for people who are using the medical system to evade the disciplinary system?
  (Sir Paul Condon)  I would not want to be associated with that figure as tightly as you are suggesting it because they are a typical group and the discipline may have been triggered at any point in a 30-year career, whereas we know there is a clustering of medical pensions around 26 or 27 years.

  158.  It is helpful information, it is useful for us to know and it enables us to add some strength to the resolve of the Home Office when we produce our report that they should help you in dealing with the problem, so I think it has been beneficial from everyone's point of view. May I then switch completely to figure 16 on page 40? This is the chart you have referred to on several occasions showing the fall in the working days lost to injury on duty and the rise in stress related. Can I just ask you to look at the footnote, the small print? It says, "Any injury incurred by an officer between leaving and returning home ... is recorded as an injury on duty". Why?
  (Sir Paul Condon)  Because that is a statutory obligation.

  159.  But what is the sense of it? If he slips on a piece of ice or he slips on a banana skin or he gets knocked over by an errant cyclist or something of that sort, why should he be treated as on duty when he is not? I do not know of anyone else who is treated in that way?
  (Sir Paul Condon)  It is a legislative requirement, but part of the reform we have argued for is that an injury on duty should be confined to an officer exercising his powers related to being a police officer.


4   Note: See Evidence, Appendix 1, page 30 (PAC 218). Back

5   Note: See Evidence, Appendix 1, page 28 (PAC 218). Back


 
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