Supplementary memorandum from the Ministry
of Defence on efficiency measures for 1998-99
I wrote to you on 19 May with supplementary
notes following the Committee's evidence session with Colin Balmer,
the Principal Finance Officer. In these notes the Department undertook
to provide the Committee with a fuller list of the most significant
efficiency measures for 1998-99, and an indication of the total
number of measures contributing to the overall efficiency programme
for 1998-99 and 1999-2000.
The attached note provides this material, and
should be read in conjunction with the list attached to my letter
of 19 May for new efficiency measures in 1998-99.
Ministers have announced the overall performance
of the Department for efficiency in 1998-99 and have illustrated
this with the information attached.
ADDITIONAL NEW
EFFICIENCY MEASURES
Total number of measures in 1998-99 is more
than 1,300 and in 1999-2000 is more than 1,600, most of which
are small in value. The more significant ones in 1998-99 include:
— Collocation of staff from Chessington
and satellite offices within central HQ at Sutton Coldfield on
the creation of the Defence Estates Agency led to savings of £2.1
million.
— A competition to supply food to the
armed forces has produced savings of £1.6 million.
— Defence Housing Executive IT Project.
The introduction of a national computer network to assist in the
allocation and maintenance of all service family accommodation
produced savings of over £9.6 million.
— Restructuring of working practices
within HQ Army Training Recruitment Agency has produced savings
of £4.8 million.
— The creation of a dedicated team
to manage the works and property management programme at the Defence
Secondary Care Agency has resulted in a more efficient use of
resources and £1 million savings.
— A contractual negotiation with the
supplier of surgical equipment and medical products has led to
savings of £0.3 million.
— Income generated from commerecial
exploitation of RAF Ground Training has led to annual savings
of £0.5 million.
— A variety of utility and energy savings
have been implemented across the Naval air command producing savings
of £0.4 million.
— A further management review in the
Clyde Base Review has offered up savings of £0.54 million.
— At the Headquarters of 3rd Brigade
greater use was made by works maintenance of water and oil metering
to determine actual use and requirement in each area. Consequently
the more efficient use of resources has led to reduction in utility/energy
bills of £0.25 million.
— Replacement of consultants employed
on Project CAPITAL by permanent civil servants has led to savings
of £1.1 million.
— Civilianisation of posts with Directorate
of Naval Reserves organisation has produced savings of £0.27
million.
— The disposal by the army of various
surplus land and holdings has produced £3.5 million savings.
— A review of a number of training
functions at RAF Cosford has led to a reduction in manning level.
This has produced savings of £1.5 million.
— Re-negotiation of IT maintenance
fees and the discounts achieved for volume orders have led the
Quartermaster General to achieve savings of nearly £2 million.
— A scrutiny of RAF Strike Command's
Works and Lands Budget has offered up savings of £3 million.
— The PFI contract at the Defence Helicopter
Flying School produced savings of £1.3 million.
— A re-assessment of Sky Flash rocket
motor stocks by the RAF enabled the operational life to be extended,
thereby saving the cost of replacements. This led to savings of
£3 million.
— Following the cessation of operations
there, RAF Ash was closed leading to savings of over £2 million.
— The Restructuring of the Royal Naval
Supply School at HMS Raleigh has led to savings of £0.17
million.
5 August 1999
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