HM Treasury News Release

193/98                              17 November 1998
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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.

4.   If you have access to the internet, you can find this press
     release and material on other Treasury issues at
     http://www.hm-treasury.gov.uk.

# = pounds sterling