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| Version 3 | Version 4 |
|---|---|
| Transport Dept plan 'incompetent' | Transport Dept plan 'incompetent' |
| (20 minutes later) | |
| A "stupendously incompetent" government efficiency drive designed to save £57m will end up costing £81m, MPs say. | A "stupendously incompetent" government efficiency drive designed to save £57m will end up costing £81m, MPs say. |
| The Department for Transport scheme aimed to cut administration expenses by basing payroll, finance and personnel services all on one site in Swansea. | The Department for Transport scheme aimed to cut administration expenses by basing payroll, finance and personnel services all on one site in Swansea. |
| But the Commons public accounts committee said the project had been rushed through, was not yet fully introduced and was set to make losses. | But the Commons public accounts committee said the project had been rushed through, was not yet fully introduced and was set to make losses. |
| The new computer system had even issued messages in German, the MPs added. | The new computer system had even issued messages in German, the MPs added. |
| But the DfT said the scheme was now beginning to bring "real progress". | But the DfT said the scheme was now beginning to bring "real progress". |
| 'Overly optimistic' | 'Overly optimistic' |
| The DfT had attempted to bring in "shared services" project - part of a wider £1.4bn Whitehall savings plan - in a year, the committee said. | The DfT had attempted to bring in "shared services" project - part of a wider £1.4bn Whitehall savings plan - in a year, the committee said. |
| The MPs criticised the department for setting itself a deadline of April this year for getting all its agencies involved, calling this "overly optimistic". | The MPs criticised the department for setting itself a deadline of April this year for getting all its agencies involved, calling this "overly optimistic". |
| The department knew that it was pushing things with such a tight timetable but, without robust challenge to such a risky strategy, ploughed on confidently Edward Leigh, Commons Public Accounts Committee chairman | The department knew that it was pushing things with such a tight timetable but, without robust challenge to such a risky strategy, ploughed on confidently Edward Leigh, Commons Public Accounts Committee chairman |
| Staff had "little confidence" in the new computer system, which "in some cases" was worse than the old one. | Staff had "little confidence" in the new computer system, which "in some cases" was worse than the old one. |
| Committee chairman Edward Leigh, Tory MP for Gainsborough, said it was one of the most worst cases of "project management" he had seen. | Committee chairman Edward Leigh, Tory MP for Gainsborough, said it was one of the most worst cases of "project management" he had seen. |
| "The department knew that it was pushing things with such a tight timetable but, without robust challenge to such a risky strategy, ploughed on confidently," he added. | "The department knew that it was pushing things with such a tight timetable but, without robust challenge to such a risky strategy, ploughed on confidently," he added. |
| "The result was lamentable. The underlying computer system was inadequately procured and tested, resulting in an unstable set-up when it was switched on," he added. | "The result was lamentable. The underlying computer system was inadequately procured and tested, resulting in an unstable set-up when it was switched on," he added. |
| Eight months after the departments own deadline had passed, only two of its seven agencies were using the new system, Mr Leigh said. | Eight months after the departments own deadline had passed, only two of its seven agencies were using the new system, Mr Leigh said. |
| 'No dismissals' | 'No dismissals' |
| In its report, the committee said: "Despite the extent of mismanagement in this case, no individuals have been dismissed or properly held to account." | In its report, the committee said: "Despite the extent of mismanagement in this case, no individuals have been dismissed or properly held to account." |
| Mr Leigh called on the department to deliver a functioning, trustworthy and beneficial system. | Mr Leigh called on the department to deliver a functioning, trustworthy and beneficial system. |
| The shared services centre in Swansea was originally forecast to cost £55m and lead to £112m of savings - a benefit of £57m. | The shared services centre in Swansea was originally forecast to cost £55m and lead to £112m of savings - a benefit of £57m. |
| But the department now estimates the programme will cost £121m and save £40m, meaning taxpayers will have to make up the £81m difference. | But the department now estimates the programme will cost £121m and save £40m, meaning taxpayers will have to make up the £81m difference. |
| We continue to develop shared services and believe that the new way of working will result in significant improvements. Department for Transport | We continue to develop shared services and believe that the new way of working will result in significant improvements. Department for Transport |
| A DfT spokesman said there had been "consequences" for some staff of the staff involved in setting up the scheme. | A DfT spokesman said there had been "consequences" for some staff of the staff involved in setting up the scheme. |
| He added: "As with any large scale and long term project, there have been aspects of shared services that have taken longer to implement than others. | He added: "As with any large scale and long term project, there have been aspects of shared services that have taken longer to implement than others. |
| "However, the system is now starting to deliver real change within the department with smoother and more streamlined processes. | "However, the system is now starting to deliver real change within the department with smoother and more streamlined processes. |
| "We continue to develop shared services and believe that the new way of working will result in significant improvements. | "We continue to develop shared services and believe that the new way of working will result in significant improvements. |
| "We welcome this report and will be responding to its recommendations in due course, with an update on our progress." | "We welcome this report and will be responding to its recommendations in due course, with an update on our progress." |
| Shadow transport secretary Theresa Villiers said: "It is scandalous that at a time when Labour mismanagement has put our public finances in such a disastrous mess that Geoff Hoon's officials are pouring taxpayers' money down the drain. | Shadow transport secretary Theresa Villiers said: "It is scandalous that at a time when Labour mismanagement has put our public finances in such a disastrous mess that Geoff Hoon's officials are pouring taxpayers' money down the drain. |
| "Hard working taxpayers will be incensed that a project that was supposed to save money will actually cost them £81 million - money that would have been far better spent on much needed transport improvements that Labour have promised so many times and failed to deliver." | |
| Liberal Democrat transport spokesman Norman Baker said: "Here's yet another Government Holy Grail which has so far failed to bring any benefit. | |
| "It is astonishing that the department failed to meet any of its targets and completely unacceptable that no one has been held to account for this mess." |