Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 20-39)

CABINET OFFICE AND OFFICE OF GOVERNMENT COMMERCE

27 NOVEMBER 2006

  Q20  Mr. Touhig: So there is a skills gap?

  Mr. Watmore: There definitely was, but that gap is closing.

  Q21  Mr. Touhig: On page 37, paragraph 3.25 refers to the inexperience of many senior responsible owners. Do you find that you are able to learn lessons—people are able to learn from one another? Very often, I find at these sessions and in reports that come to us that Departments do not look at the lessons learned. Is there a lessons-learned culture?

  Mr. Watmore: Again, I would say that historically the Government were siloed in this across their different Departments, whereas we are trying to create a culture of sharing and learning across. One of the first things we did was to create what we call the Chief Information Officer Council. That is the heads of IT of all the major Government Departments, meeting regularly, commissioning work offline to—

  Q22  Mr. Touhig: So trying to get them out of the bunker?

  Mr. Watmore: And get them out of the silos.

  Q23  Mr. Touhig: It is not only politicians who suffer from departmentalitis, then?

  Mr. Watmore: It is just to get the lessons learned across Whitehall as well as deeply within the Department.

  Q24  Mr. Touhig: The preface says on page 4, "We do not in this Report consider the issue of the different types of contracting arrangement, whether highly legalistic with exacting penalty clauses for non-performance, or ones based more upon partnership." Given your background, do you think one size fits all here and it is better to have a partnership approach to solving IT issues, or a very heavy contract from which there are very severe penalties?

  Mr. Watmore: I am always cautious about saying one size fits all for any problem, but in this particular space I very much lean towards the partnership end of the spectrum. In my experience, adversarial contracting ends in a lose-lose situation—both sides lose. We can look at all the best successful projects, and the Report draws this point out. To go back to the Pension Credit example, one of the reasons why success appeared there was that there was a co-operative relationship between the buyer and the supplier.

  Q25  Mr. Touhig: Yes, that is interesting. The preface says on page 5, "This Report should act as an encouragement to those in Government responsible for IT-enabled business change to believe that success is entirely possible." Self-belief is the first one we must all have, of course. The preface then says, "But from the outset such change requires clarity of purpose, clear leadership and commitment from the very top—including Ministers". The Chairman introduced the subject of Ministers earlier. Ministers enter the equation at last in this respect.

  Let us look at page 31. The Chairman touched on some of the points in paragraph 2.11 about the lack of contact Ministers have with SROs. Mr. Oughton, I think you made the point that there had been changes and that now every Department has an assigned Minister when you have an IT project, but what is the point if they do not meet those who are carrying out the work?

  Mr. Oughton: Well, not all of them do as frequently as perhaps is necessary, but I think—

  Q26  Mr. Touhig: 20% have never met their Minister at all, it appears.

  Mr. Oughton: Yes, and my personal view is that the Minister should expect to receive information on programmes and projects frequently enough to discharge their responsibilities.

  Q27  Mr. Touhig: I am sure. Who is responsible for that? Is it the civil service or the Minister?

  Mr. Oughton: It is a combination, clearly. The Minister has to discharge his or her responsibilities. The Accounting Officer has to do the same. Both should have a shared interest in wanting to ensure that everybody is aware of the issues on a programming project as it proceeds.

  Q28  Mr. Touhig: When I was a Minister and I was charged by my Secretary of State to try to solve a problem we had in the Department, we decided on a course of action, but I was actively discouraged from meeting the people responsible for it day to day. First, I was told they are of a salary grade that should not be brought into the presence of a Minister. Secondly, I was told that they would be overawed to be brought into the presence of a Minister. But when I got the people in, they would have frightened Rommel—they would have put anybody off. Do you think that that is widespread? Senior civil servants sometimes discourage their consultants from coming in and having face-to-face contact with Ministers.

  Mr. Oughton: I certainly have not run into a problem of gradeism in making the connection between Ministers and civil servants, so I am surprised by your experience.

  Q29  Mr. Touhig: It comes down to priorities. Ministers have to decide their priorities, of which they sometimes have so many. Do you find that Ministers are being given the information to understand that IT projects are a major priority for them?

  Mr. Oughton: My experience with those programmes with which I have had the closest connections suggests to me that, yes, Ministers are. Let us consider the Connecting for Health programme, on which the National Audit Office reported earlier this year and the Committee took evidence in the summer. The Secretary of State and Health Ministers are involved very closely, with regular stock takes on a monthly and, in the case of Lord Warner, weekly basis to ensure that they are absolutely up to date with the progress of the programme. I think that that is a very good model.

  Q30  Mr. Touhig: But is there a format for a standard letter or a routine whereby a new Minister is briefed by his officials and told: "Minister, you are responsible for IT projects."? Is it made absolutely clear that that is a priority?

  Mr. Oughton: That is not standard across Government as a whole.

  Q31  Mr. Touhig: Should it be? Mr. Watmore, you are one of the Prime Minister's top advisers on delivering public service priorities. Should that not be a priority?

  Mr. Watmore: The phrase that you used in the question—IT projects—needs to be developed. I do not perceive there to be such a thing as an IT project. There are only business projects that happen to have IT at their heart. If those are described and presented as IT projects, that does not connect to the ministerial agenda. However, if they are described—appropriately—as business projects for which the Minister is primarily responsible, it goes hand in glove that he or she should be made aware of the current status, should seek regular updates and should be able to act when necessary.

  Q32  Mr. Touhig: I certainly found in my experience as a Minister serving in the present Government that if the Prime Minister was engaged on an issue and convinced that a certain course of action was needed, and if an instruction came from No. 10, there was a response from the civil service and the Minister. Perhaps you might continue the success by suggesting that.

  Mr. Watmore: That certainly helps.

  Mr. Oughton: Mr. Touhig, keep in mind that that process works already in major mission-critical programmes. I report to the Prime Minister periodically—quarterly—on the key, mission-critical projects. I would expect him and his office to follow up with individual Departments where he found issues that warranted that. So that system works now.

  Q33  Mr. Touhig: I, too, have had experience of that, but I am saying that it should be fairly standard if IT projects are vital to the core business of what the Government want to do. The Report highlights successes; we want to underpin those successes. If, from the top, Ministers who are charged with that responsibility are told quite clearly, "This is what you have to take on board", it will be on their agenda every day.

  Mr. Oughton: I think that we are in agreement on that.

  Mr. Touhig: Progress indeed.

  Q34  Chairman: You say that you report to the Prime Minister quarterly. Is that personally?

  Mr. Oughton: Yes, that is correct, although of course my report draws heavily on the advice of my own staff in the Office of Government Commerce and on Mr. Watmore's and Mr. Suffolk's staff in what was formerly the e-Government Unit.

  Q35  Chairman: Is the Prime Minister personally committed totally to computer technology?

  Mr. Oughton: You would have to ask him that question.

  Chairman: He is notoriously not.

  Mr. Oughton: He is certainly committed, as I think is clear in all his statements, to a major modernisation programme, and many of the changes that he is pursuing of course require IT enablement to make them happen.

  Chairman: Thank you for that answer. Dr Pugh.

  Q36  Dr. Pugh: I think that you have put on record your opposition to the publication of gateway reviews, but you will be aware that the magazine Computer Weekly has campaigned in favour of US-style legislation that would compel the public sector to police good practice and publish the results. I think that you are familiar with that proposal, but presumably demur from it. Can you explain what you understand by that proposal and your objections to it?

  Mr. Oughton: My objection, if I may start there, is that the gateway review process, when it was first established, drawing on examples of similar techniques used in the private sector, was designed to be an independent peer review process of major programmes and projects done for the project and senior responsible owner, and conducted confidentially to encourage those involved in the project to speak their minds and to speak frankly about the challenges and the difficulties that they saw. The review was to take place in what we call a safe space so that people could speak frankly. We believe very strongly that, in that way, problems can be identified sooner than would be the case if the process were conducted in the public spotlight.

  Q37  Dr. Pugh: But America has different legislation. What is going wrong in America as a result that leads you to think that this legislation has no place in the UK?

  Mr. Oughton: My view is that legislation would not be appropriate here.

  Q38  Dr. Pugh: Would it be detrimental?

  Mr. Oughton: I think it would make our job more difficult because the gateway review process, as I said, is conducted in a private fashion. Now of course, as you probably know, Dr. Pugh, we are currently engaged in an appeal against a request under the Freedom of Information Act 2000 for release of gateway Reports relating to the Government's identity card programme. With the agreement of Ministers we are pursuing that appeal. It is extremely difficult for me while that appeal is under way and before it comes to the Information Tribunal in March to comment in substance on what we might say in that appeal process, so if you will forgive me I cannot go down that road.

  Q39  Dr. Pugh: But I am asking you what is going wrong in the USA, which has this legislation.

  Mr. Oughton: I do not think there is anything going wrong in the USA. I think our models and our approaches are fundamentally different. In the United States system much of what is achieved in government is necessarily done through legislation. In the British system much of that can be achieved through administrative action without the need for legislation. This is one of those cases where I believe the benefits of a thoroughgoing review of a programme and a project can be achieved without the need for legislation to mandate it.

  Dr. Pugh: It is a question of different cultures.

  Mr. Oughton: I think so. Ours is a very different approach, based on administrative action, in the UK.


 
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