193/98
17 November 1998
BETTER VALUE FOR PUBLIC MONEY - REVIEW OF CENTRAL GOVERNMENT PURCHASING
Getting best value for the #12 billion central Government Departments spend annually is the target of a review of central Government's civil procurement activities announced by Paymaster General Geoffrey Robinson and Cabinet Office Parliamentary Secretary Peter Kilfoyle today.
Launching the review, Geoffrey Robinson said:
"Peter Kilfoyle and I are convinced that efficient public sector procurement is an essential element in delivering the Government's modernisation and competitiveness agendas.
"Some 200 Departments and agencies employ 5000 staff on procurement tasks. They spend #12 billion of taxpayers' money every year. It is important to ensure the best value for this major element of public expenditure.
"Important progress has already been made over the last year. This review will examine whether the current disposition of procurement activities supports this and, if not, what improvements can be made. It will put us on course to deliver even better value for money for the taxpayer".
The review, commissioned by the Prime Minister, will be undertaken by Peter Gershon, Managing Director, Marconi Electronic Systems, supported by the Treasury Procurement Group and the Cabinet Office Efficiency Unit. It will complement implementation of an earlier review of Government procurement efficiency and effectiveness undertaken in the context of the Comprehensive Spending Review.
Its terms of reference are :
"To review civil procurement in Government in the light of the Government's objectives on efficiency, modernisation and competitiveness in the short and medium term and to report within three months".
The review will start on 1 December, drawing on private and public sector expertise. It will report its findings to the Prime Minister in February 1999.
NOTES FOR EDITORS
1. The CSR review "Efficiency in Civil Government Procurement" published in July identified the need to take advantage of electronic trading, collaboration between departments and coordination of supplier relations. The Gershon Review will examine whether the current organisation of procurement practice supports this and, if not, what improvements can be made.
2. The Gerson Review covers central civil procurement. It will not cover procurement on defence or by local authorities and universities.
3. Peter Gershon, currently MD Marconi Electronic Systems, was formerly MD GPT and before that, MD STC Telecom and has held senior positions in the computing industry.