# = pounds sterling

HM Treasury News Release
205/98                                      7 December 1998
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		PAYMASTER GENERAL ANNOUNCES NEW PANEL TO 
		    IMPROVE PUBLIC SECTOR PRODUCTIVITY
                                

The membership and direction of the new Public Services
Productivity Panel was announced today by Paymaster General
Geoffrey Robinson.

Speaking at the second Productivity Roadshow in Cambridge, Mr
Robinson said:

     "The productivity challenge must be met across all sectors
     of the economy -  that includes the public sector.  We want
     to improve the effectiveness and efficiency of public
     spending, and the quality of service it buys.  We are
     determined that the extra 40 billion billion we are investing in
     health and education delivers real measurable improvements.

     "The new Public Services Productivity Panel will draw on
     private sector experience to look at ways of improving the
     productivity of Government departments and other public
     sector bodies. 

     "It will examine the Public Service Agreements to determine
     what will be most critical to each department's ability to
     deliver its targets. It will also offer specific
     recommendations on service delivery improvement.

     "I look forward to working with the Panel on how we can
     improve our productivity in Government."

The Panel will be chaired by the Paymaster General; and the Vice
Chair will be Byron Grote, of BP-Amoco.

Participating in the Cambridge event, Tottenham chief and
entrepreneur Alan Sugar said:

     "The Productivity Panel is another excellent Government
     initiative, designed to stimulate innovation and enterprise
     and I welcome the opportunity to help whenever I can in this
     worthwhile programme."

Alan Sugar, a member of the Treasury's team of business leaders,
will tomorrow relaunch his nationwide Enterprise Tour of Schools,
with the Chancellor and Paymaster General. 


NOTES FOR EDITORS
1.   The members of the Public Services Productivity Panel are:

     Geoffrey Robinson MP, Paymaster General (Chair)
     Byron Grote, Group Chief of Staff, BP (Vice Chair)
     Lord Simon, Department of Trade and Industry
     Lord Sainsbury, Department of Trade and Industry
     Dame Sheila Masters DBE, Partner KPMG
     Clare Spottiswoode, Senior Vice President, Regulatory
     Affairs, Azurix 
     John Mayo, Finance Director, GEC plc
     John Makinson, Group Finance Director, Pearson plc
     Andrew Foster, Controller of Audit, The Audit Commission
     John Dowdy, McKinsey

2.   The Panel's remit is to advise the Government on ways of
     improving the productivity and efficiency of government
     departments and other public sector agencies.  It will
     report to the Cabinet Committee charged with overseeing
     departments' progress against their new Public Service
     Agreements.

3.   The roadshow was held at TWI (The Welding Institute) at
     Abington, near Cambridge.  There will be other similar
     regional events throughout the UK over the next few months,
     as part of the Government's consultation on the Pre-Budget
     Report.  Ministers from a number of Government Departments
     will be involved - they will want to discuss directly with
     local business people and others possible solutions for
     closing the productivity gap.  The roadshow will end in
     Birmingham on 5 February.

4.   The Pre-Budget Report was published on 3 November.  As well
     as setting out the steps needed to secure high and stable
     levels of employment, it forms the basis for a wide-ranging
     consultation on the steps that need to be taken to  address
     the UK's long-standing productivity gap.

5.   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.