Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Questions 100-107)

16 MAY 2007

HM REVENUE AND CUSTOMS

  Q100  Mr Williams: Well if you achieve those targets, I am sure the CBI will strike you a medal and there will be rejoicing.

  Mr Gray: I was at their annual dinner last night and I heard their appeals in that direction.

  Mr Khan: More importantly the then Prime Minister in 2011 will be giving you a medal.

  Q101  Chairman: We have had this amalgamation of the Revenue and the Customs and this was presented to us as a sea change, a dramatic difference, customers were going to be helped much more, the revenues were going to rise, costs would be cut, but frankly the way you have described it this afternoon it strikes me that your organisation, in terms of helping business, is just moving forward at a snail's pace. Is this not a betrayal of all the hopes that were raised at the time of the amalgamation? What is your personal commitment to try to change the whole culture of the two organisations you now head?

  Mr Gray: My personal commitment is very strong. I do not with respect accept the "snail's pace". In the first two years we have managed a very complex merger without—

  Q102  Chairman: I do not deny that there have been huge discussions and changes of deckchairs and bureaucratic committees. I am not interested in what is going on inside your two organisations; I am interested in the burden placed on business, very heavy burdens in dealing with corporation tax, VAT. I want you to tell me how the amalgamation of these two great departments of state has actually improved things on the ground for your customers.

  Mr Gray: We have made significant strides in the first two years; we have reduced cost to ourselves and the taxpayers.

  Q103  Chairman: You have reduced costs to yourselves. That is precisely not answering my question.

  Mr Gray: And costs to our customers. We now have these targets which I am very keen to exceed.

  Q104  Chairman: Well the targets, as we have heard, are virtually derisory.

  Mr Gray: That is why I am saying I wish to exceed them.

  Q105  Chairman: By how much are you going to exceed them? As they are meaningless targets in any event, tell us now what you are going to do.

  Mr Gray: Setting my own targets for the organisation is not the way things operate.

  Q106  Chairman: Who is setting the targets? Let us ask the Treasury what they are going to do to try to have some meaningful targets.

  Mr Gallaher: We will work with the HMRC to ensure that they meet their objectives and setting targets is a matter for discussion between HMRC and the Treasury.

  Q107  Chairman: That is a complete non-answer. Carry on Mr Gray.

  Mr Gray: My summary is that I think we have made a really good start on all those dimensions. My commitment is to turn this into a much more effective organisation, one that is easier to deal with. I am afraid I do not accept your snail's pace description. When I finish this job, whenever it is, I want to see all of those dimensions very significantly transformed and that is my commitment.

  Chairman: Good. Well I do not think we are going to get any more out of you. Thank you very much Mr Gray.





 
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