Tag: Treasury

The press release issued by HM Treasury on 26 February 2001.

Chancellor Gordon Brown and Clare Short today called for a global campaign to fight child poverty and meet the 2015 International Development Targets.

Speaking at a conference in London to uniquely assembled global participants – from developed and developing countries, Government and business, NGO and civil society, the UN, UNICEF and UNDP, the IMF and World Bank – the Chancellor stressed the need for urgent action, and for collective effort, with all groups present being individually accountable for what they can do to create stronger international action against child poverty.  He said:

“Over 10 million children will die before the age of 5. 120m children are not in primary school. Each of us as partners must be prepared to make radical changes in the way we act so that the goals of 2015 can be achieved.”

In inaugurating this global initiative, Nelson Mandela said:

“I warmly welcome Gordon Brown and Clare Short’s conference as a start of a new initiative calling for collective action.  And I say to the delegates – find the courage to be bold.”

International Development Secretary Clare Short said:

“One in five of us live in extreme poverty. If we can together coordinate our efforts behind the leadership of developing county governments, we can achieve the international development targets. Only if we all collaborate can we achieve this enormous objective.”

The Chancellor set out a range of new initiatives on education and health:

On education the Chancellor said:

“Today I am pleased to announce that the British Government will create, in Her Majesty the Queen’s Jubilee Year, a fund to help achieve universal primary education in the Commonwealth. The Government will provide new resources for this initiative. We will call on business to support this effort.”

On health, the Chancellor outlined a series of measures :

• A new international initiative to address the devastation caused by the killer diseases – particularly HIV/AIDS, malaria and TB, which are responsible for 5 million deaths a year.

He announced his intention to :

• Introduce new tax incentives for research and development into effective and affordable drugs and vaccines for these diseases, linked to increased commitments by the industry itself.
• Remove constraints in the tax system on donations of drugs and vaccines – linked to increased commitments from the industry to make donations on a more consistent basis, in support of developing countries own health strategies

Details on these measures will be set out in the Budget.

• A new global purchase fund, both to encourage the development and delivery of effective and affordable treatments that do not yet exist, and for the treatments already available.

Gordon Brown linked these new initiatives with a challenge to the pharmaceutical industry – to raise the level of R&D on diseases of the poor, and to work to provide the affordable drugs and vaccines that the world so desperately needs.

The current level of R&D to develop new vaccines yet to be discovered for the world’s killer diseases is inadequate. The international fund for vaccines provides a new approach. Work will now begin urgently to specific and agree the terms of the new fund and to lead a new international crusade to mobilise political will and resources in support of this monumental challenge.

Carol Bellamy, head of UNICEF, welcomed the new announcements on health saying:

“It can help save the lives of children in developing countries by closing the gap, and giving them speedier access, to necessary drugs and life saving vaccines.”

This new health initiative builds on the UK government’s commitment to better health delivery systems.  Since 1997 the Department for International Development (DFID) has committed £1 billion to strengthen primary health care in poor countries.  A report issued for the conference by DFID, the Treasury and the Cabinet Office’s Performance and Innovation Unit (“Forging a New Commitment: Tackling the Diseases of Poverty”) describes the Government’s comprehensive strategy in more detail.

These initiatives and the themes of the conference will be taken forward through a series of international meetings throughout 2001 and beyond – by the UN, World Bank, and the G8. The UK will work closely with the Italian Presidency of the G8, to build on the announcements at the conference today by Italian Prime Minister Amato and Finance Minister Visco.

NOTES TO EDITORS

1. The keynote address to the conference was given by Nelson Mandela and Graca Machel, representing the Global Movement for Children. Other speakers included, in alphabetical order:

Mike Aaronson	Save the Children
Giuliano Amato	Italian Prime Minister
Kofi Annan	UN Secretary General
Carol Bellamy	Executive Director, UNICEF
Matthews Chikaonda	Malawian Finance Minister and Co-chair of HIPC Finance Ministers
Rt Hon Don Johnston	Secretary General, OECD
Horst Kohler	Managing Director, IMF
Jean Lemierre	President, EBRD
Mark Malloch Brown	Administrator, UNDP
Bishop Diarmuid Martin	Vatican Council for Justice and Peace
Rev Agnes Mukandoli	Mothers Union, Rwanda
Gabriella Nunez de Reyes	Honduran Finance Minister
Francisco Songane	Mozambique Finance Minister
Vincenzo Visco	Italian Finance Minister
James Wolfensohn	President, World Bank

 

The press release issued by HM Treasury on 26 February 2001.

CONCLUDING STATEMENT BY CLARE SHORT, SECRETARY OF STATE FOR INTERNATIONAL DEVELOPMENT AND GORDON BROWN, CHANCELLOR OF EXCHEQUER

Background

We enter the 21st century with nearly 10 million children dying every year before their first birthday. 12 million die before their 5th birthday. And 120 million children are without even 5 years of schooling. In the face of these tragic facts – and in the year of the United Nations Children’s Summit – all the participants at the conference today recognised we must do much more to tackle the poverty of today’s children and so build hope for the next generation.

Child poverty and the seven international development targets

Over the last ten years the nations of the world have agreed upon seven international development targets to be achieved by 2015. Achieving these targets would mean halving the proportion of children living in poverty, making primary education accessible for all children, ending discrimination against girls in education, dramatically improving the health position of the poorest children and their families and finally reversing the trend of environmental degradation so that there is a sustainable world for our children to inherit.

Reaffirmation of commitment to seven international targets

Today, we all therefore reaffirmed our joint commitment to making every possible effort to reach these international targets and acknowledged the need to intensify our collective efforts. We aim, through achieving these targets, to offer this generation of poor children the opportunities denied to their parents.

Roles and responsibilities

We all welcomed the stronger leadership role that developing countries are starting to play, such as through the Millennium Programme for the Renaissance of Africa and the Poverty Reduction Strategy process.

As representatives from developed and developing countries, the private sector, non-governmental organisations, faith communities and multilateral institutions, we recognise the need to work within our powers and responsibilities to ensure that a greater effort is made to guarantee that the International Development Targets are met.

Our joint responsibility for the targets must reinforce, not diminish, accountability for the outcome. We all have a joint responsibility to work towards these goals, with each accountable for actions within specific responsibilities.

Today, we agreed to work together to commit to a clear set of specific actions for which we will all be individually accountable.  These commitments will enable us to deliver the international targets and so break the intergenerational cycle, which would otherwise mean that today’s poor children would become the parents of tomorrow’s poor children.

Our discussions today have been a key step in the process of developing such a set of actions. But we will need to work together over the coming months to develop these further, with the aim of finalising them in time for the UN Special Session on Children.

We therefore welcome the specific commitments made by representatives today in particular that

UNICEF will

• continue to invest in programmes to reduce infant and under-five mortality and promote child survival;
• increase the share of resources for basic education to ensure all children get a quality primary education, with a special emphasis on girls.

UNDP will

• ensure that UN development agencies focus their efforts around realisation of the Millennium Declaration and the achievement of the International Development Targets;
• work with government, civil society and private sector partners to support nationally owned, inclusive Poverty Reduction Strategies;
• ensure that the UN system plays a full part in facilitating both government led programmes and donor co-ordination;
• help developing countries set, measure and reach national poverty reduction and human development targets. To this end, UNDP will support country teams produce, in partnership with developing countries, regular national reports which benchmark progress towards the achievement of the Millennium Declaration and the International Development Targets;
• aggregate national reports into the Secretary-General’s annual report on progress towards the achievement of the Millennium Declaration and International Development Targets;
• upgrade the quality and impact of National Human Development Reports;
• make the Secretary-General’s Global Compact ‘local’ by organising action-oriented dialogue among stakeholders, including business, civil society and government, with a view to promoting sustainable and broad-based economic development.

IMF and World Bank will

• continue actively to use the International Development Targets as a common framework to guide policies and programmes and to assess their  policies’ and programmes’ effectiveness;
• help governments to broaden participation and develop greater ownership of macroeconomic, structural and social policy issues;
• support governments in developing programmes, policies and budgets that are in line with comprehensive poverty reduction strategies and which are pro-poor and pro-growth, shifting support towards activities that demonstrably benefit poor people and promote both equity and efficiency;
• ensure that appropriate social impact analysis is undertaken of  structural reform measures, so that countervailing measures can be put in place to support groups adversely affected by reforms;
• ensure appropriate flexibility in fiscal targets of IMF programmes (such as in post conflict situations, in response to unexpected external shocks;  and to ensure that development assistance is genuinely additional to a country’s own resources);
• assist governments to improve accountability of public resource management (including by providing regular assessment in their IMF review);
• assist governments to cost and regularly assess what needs to be done in order to achieve their poverty reduction targets and the International Development Targets;
• strengthen support to countries by further decentralisation of World Bank functions and expertise.

UK will, and encourages other developed countries to

• make every effort to increase development assistance;
• increase the proportion of development assistance going to the poorest countries;
• untie all development assistance;
• coordinate their efforts more effectively and ensure development assistance is directed at the needs of the poorest, without consideration of the convenience of the donor;
• base their assistance on countries? own Poverty Reduction Strategies by:
• limiting the administrative burdens placed upon recipient countries;
• ensuring compatibility with countries? budget-setting priorities and procedures work;
• ensuring donor support is used in support of long-term reform programmes;
• ensure that level of development assistance is predictable;
• work to remove barriers to market access for all goods from least developed countries;
• ensure export credit supports to poor countries are not used for unproductive expenditures and tighten controls on small arms transfers;
• renounce the right from this year onwards to any benefit from the historic debt owed by the HIPC countries, in addition to committing to write off 100% of all bilateral HIPC debts starting at decision point.

Developing countries will

• analyse macroeconomic policies for impact on poverty reduction;
• ensure that poverty reduction policies fight all aspects of inequity in their countries;
• ensure that Poverty Reduction Strategies demonstrate how they will enable International Development Targets to be delivered;
• adopt fully costed programme budgets and comprehensive long term expenditure frameworks;
• strengthen capacity to spend debt relief savings and new assistance effectively on poverty reduction programmes and on improving the quality of services;
• take the lead in co-ordinating donors, NGOs, faith groups and the private sector in supporting country Poverty Reduction Strategies;
• continue their efforts to empower the poor, by integrating participation into all their democratic structures;
• work to strengthen the accountability of financial management systems so as to eliminate corruption;
• accelerate efforts to improve domestic resource mobilisation to increase domestic funding for poverty reduction;
• tightly limit new external borrowing for productive purposes;
• improve the access of the poor to equitable justice systems;
• intensify efforts to promote peace in their regions;
• strengthen health care systems and access for poor people (including putting in place universal primary health care systems) so that existing HIV/AIDS drugs and the new support investment treatments can be made available to all.

Private sector and medical research community will

take the lessons and commitments made today to a parallel conference on the role of business to be held later this year;

• develop at that conference an action plan to meet this challenge.

Group of seventeen NGOs will, and encourage other NGOs, Faith groups & committed individuals to

• raise public awareness regarding the outrage of child poverty and build global solidarity with poor girls, boys, women and men as they struggle to secure their rights and better their lives;
• in partnership with poor communities and southern civil society organisations work to overcome the causes of poverty and injustice and specifically to:
• ensure that the poorest and most marginalised including children speak and are heard in the decisions, processes and institutions affecting their lives including Poverty Reduction Strategy Papers and other resource allocation processes;
• ensure all decision makers are held accountable to poor people of all ages for concrete progress towards the realisation of rights and the achievement of the International  Development Target;
• campaign and advocate north and south for urgent action on international debt, trade, education, health, HIV/AIDS, conflict and violence and other key issues impacting directly on the ability of poor countries and people to secure rights and achieve the International Development Targets;
• assist government and communities through funding expertise and other inputs in developing sustainable and participatory solutions that improve  the daily lives of poor children and their families.

Next steps

We all agreed on the need to take action and to pursue any further measures necessary in the months and years ahead to ensure the 2015 targets are met in every country.  We will be doing this in all the fora we all work in, such as the HIPC Finance Ministers meeting in June 2001, the UN Special Session for Children in September 2001, the World Bank and IMF in the Spring and Annual meetings, and as we develop national and international policy.  The aim will be, year by year, country by country, to improve the impact of our work in support of the world’s poorest children.

The press release issued by HM Treasury on 27 February 2001.

The Treasury is seeking private investors for a 51 per cent stake in Partnerships UK, the wholly owned government company set up to develop and implement more efficient public private partnerships (PPPs) and to promote the development of Wider Markets projects, Chief Secretary Andrew Smith announced today.

By selling a 51 per cent stake, the Treasury plans to raise a minimum of £22.5 million of equity by private placement with qualifying institutions. Prior to completion of the Offer, it is expected that Partnerships UK will have a capital base of £45 million. Each potential qualifying investor will be invited to invest between £1 million and £5 million.

Speaking about the announcement to dispose of a majority shareholding to the private sector Andrew Smith said:

“The opening up of the market in this way is a significant development in the PPP sector in what is becoming an increasingly mature market place.

By turning Partnerships UK into a public private partnership the Government is creating a key market opening for private sector shareholders, keen to seize the opportunity to help the public sector deliver modern, high quality public services.

Partnerships between the public and private sectors are the cornerstone of the Government’s modernisation programme. With Partnerships UK already pioneering a business model in a strong private sector market they are well positioned to play a pivotal role in developing and expanding the PPP market and to bring private sector disciplines to bear on public sector procurement.

PPPs bring with them new challenges that require specialist skills and a high level of expertise. With their high calibre management team and skilled practitioners with significant public and private sector experience and their public sector mission, I expect Partnerships UK to remain at the cutting edge of project improvement and development for years to come.”

Derek Higgs, Non Executive Chairman of Partnerships UK said:

“This move marks a major stepping stone in Partnerships UK’s business plan. Having access to new capital will accelerate the fulfilment of PUK’s public sector mission in driving forward successful PPPs.

The initial response has shown that interest in investing in Partnerships UK is high and we look forward to working with our public and private shareholders to make the business a success.”

James Stewart, Chief Executive of Partnerships UK said:

“Partnerships UK is already fully operational and working on a wide range of PPP projects. The move to a PPP and the raising of capital will be the springboard to develop the business further.

We are confident that we can drive forward the Government’s ambitions to see effective public private partnerships. Partnerships UK will strive to be at the forefront of the development and implementation of better, faster and stronger PPP transactions, helping to deliver value for money public services and efficient utilisation of public sector assets.”

The Private Placement offer will close on 27 March 2001. The basis of allocation under the offer is expected to be announced at the end of March. Following the completion of the Offer, Partnerships UK will be 51 per cent owned by the private sector and 49 per cent owned by the public sector.

N M Rothschild & Sons Limited is acting as Placement Agent for and financial adviser to the Treasury in connection with the offer for sale by the Treasury to certain qualifying institutions. Partnerships UK’s financial targets will be to achieve a rate of return of its investors which is commensurate with the risks of its activities.

Following completion of the Offer, Partnerships UK will become a public private partnership : a joint venture with the public sector owning a minority interest and the private sector owning a majority. The governance structure is designed to balance private sector disciplines with Partnerships UK’s public sector mission. A majority of board members will come from the private sector and the public sector will be represented by two non-executive directors appointed by the Treasury. The wider public interest will be represented through an Advisory Council made up of representatives from Government departments, Devolved Administrations, local authorities and other public bodies from amongst Partnerships UK’s clients.

As the successor to the Treasury Taskforce, Partnerships UK will aim to make PPPs a success, working in partnership with public bodies. Partnerships UK has been set up to help the public sector deliver:

• fast and efficient development and procurement of PPPs
• strong PPPs that build stable relationships with the private sector;
• savings in development costs;
• better value for money.

Partnerships UK plc has entered into a Framework Agreement with the Treasury for up to five years under which Partnerships UK will continue the work of the Treasury Taskforce, providing general support to the Treasury, the Office of Government Commerce and other parts of the public sector.

The press release issued by HM Treasury on 28 February 2001.

The IMF has “commended” the UK Government “for the continued strong performance of the UK economy”.

At a discussion in Washington on 23 February, the IMF said that “plans to increase public investment in infrastructure and human capital are justified in light of the evidence” and welcomed the Government’s efforts “to enhance competition, innovation and entrepreneurship”.

The Directors agreed that “sound fiscal and monetary policies, underpinned by transparent medium-term policy frameworks as well as sustained implementation of structural reforms” have contributed to the strength of the economy in recent years. They also “expected output growth would remain robust” while “prospects for inflation remain benign”.

Against this benign inflation outlook, the Directors noted that “even after taking into account recent spending decisions, the fiscal position remains sound and fully consistent with the authorities medium-term fiscal framework”.  The Chancellor agrees entirely with the Directors’ conclusion that “additional fiscal stimulus would limit the room for further interest rate cuts”. That is why he has made clear that he intends in the Budget to lock in the tough fiscal stance set out in the pre-Budget report and Budget 2000.

Commenting on the IMF’s report, the Chancellor, Gordon Brown, said:

“I welcome the IMF’s report. It outlines the importance of economic stability and the contribution of the Government’s macroeconomic framework to the ongoing success of the UK economy.  Moreover, it highlights the contribution of our prudent and cautious approach to managing the public finances to these successes in recent years.

I agree with the IMF that boosting UK productivity performance is a key priority to achieving higher long-term growth and sustained increases in living standards.  Our approach recognises the importance of economic stability and strong policy frameworks, combined with microeconomic reforms and policies to enhance competition, innovation and entrepreneurship, for building long-term economic strength, high levels of productivity growth and rising living standards for all.”

As was the case last year, at the request of the UK Government the IMF is today publishing its Article IV staff report on the UK economy in full, along with the record of the IMF board discussion, and the UK’s statement in the board meeting.

Commenting on publication of the Article IV and associated papers, the Chancellor said:

“The publication of the IMF’s report on the UK economy clearly demonstrates our commitment to open up the IMF’s scrutiny process.  Making available clear independent information on policy is an essential part of the new international financial architecture.”

The press release issued by HM Treasury on 6 March 2001.

Paul Myners today published his report on institutional investment, commissioned by Chancellor of the Exchequer Gordon Brown in his Budget speech on 21 March 2000.

In response, the Treasury said :

“This is an important report. The Chancellor will respond in tomorrow’s Budget. The Government will also publish a joint DSS/HMT document on the future of the MFR.”

HM Treasury and DSS announced the publication of a consultation document and joint review of the future of the minimum funding requirement (MFR), which applies to most occupational pension schemes, on 14 September 2000.

Paul Myners published his views on the MFR ahead of his main report on institutional investment in a letter to Gordon Brown and Social Security Secretary Alistair Darling on 8 November 2000. This was to enable respondents to the joint review to take account of Mr Myners’ views during this consultation, which closed on 31 January 2001. The Treasury and DSS will take account of all views received in its announcement on the outcome of the joint review.

The press release issued by HM Treasury on 12 March 2001.

Help with debt and easier access to mortgages for the financially excluded will be available from 1 April under measures to boost credit unions, Economic Secretary Melanie Johnson announced today.

Savers, including young people, will also benefit from steps towards deregulation of credit unions. These include :

• increasing the savings limits for young people to £5000 – the fixed limit for adults.
• enabling all credit unions to offer secured loans for seven years and unsecured loans for three years, helping members with debt problems.
• enabling credit unions meeting stricter regulatory requirements to offer secured loans for 12 years and unsecured loans for five years, helping members seeking longer loans, eg for house purchase.

More flexible loan periods permit credit unions to offer easier repayment arrangements to their members. This should assist some of the larger credit unions to offer more substantial loans and increase their capacity to offer mortgages.

Welcoming implementation of the proposals on 1 April, Miss Johnson said :

“This is good news for everyone, but particularly the financially excluded, for whom credit unions offer alternative access to financial services. These measures mark an important step towards improving the service which credit unions are able to offer savers and borrowers.

Enabling them to save more will encourage young people to join credit unions and get used to planning and managing their finances sooner. Greater loan flexibility will make it easier for credit unions to help members overcome personal debt problems and to compete for mortgage business.

Credit unions are an effective way of widening access to affordable credit and savings opportunities to those who cannot or do not want to deal with mainstream financial services providers. The movement is growing and there are now around 700 credit unions in Britain with assets of over £200 million.

We wish to see the movement grow and to realise its potential. But individual credit unions must be effectively managed and offer appropriate safeguards to make them attractive to those looking for better ways to manage their money and financial affairs.

The measures which will come into force next month will ease the regulatory burden and help the credit union movement to grow further and faster and attract more members.”

The press release issued by HM Treasury on 15 March 2001.

Trustees of occupational pension schemes will benefit from the removal of a barrier to investment in venture capital later this year, Economic Secretary Melanie Johnson announced today.

The measure implements one of Paul Myners’ recommendations, as part of his review of institutional investment in the UK, to reform the law on investment in limited partnerships whose purpose is to undertake investments in private equity.

Miss Johnson said :

“This is a change which will be welcomed by the occupational pensions industry. It is a significant and useful measure that will make it easier for pension funds to consider investment in private equity.

It is fully in line with the Government objective of encouraging greater investment in private equity as part of the drive to increasing UK productivity.”

The change will be implemented at the same time as other key provisions of the Financial Services and Markets Act 2000 (FSMA).

Miss Johnson also announced today that the target date for the commencement of these provisions, known as N2, will be no later than the end of November 2001. The actual date will be confirmed as soon as it is possible to do so.

The press release issued by HM Treasury on 22 March 2001.

The radio spectrum is a key resource for many new and developing high-tech industries. The management and development of the spectrum will play an important role in creating a knowledge driven economy.

The Chancellor announced in Budget 2001 that Professor Martin Cave, Vice Principal at Brunel University, will lead the independent review of spectrum management.

The review will publish an issues paper in May 2001, setting out initial areas of interest.

Professor Cave said:

“The radio spectrum is a key resource for many new and developing high-tech industries that are important to the future growth and productivity of the UK. Ensuring spectrum is managed in the best interests of the economy will mean we fully benefit from these new technologies. Consultation by the review will be wide and extensive, and involve many interested parties in industry, academia and government.”

The review will ensure that the spectrum management framework is at the forefront of change. It will advise on the principles that should govern spectrum management and what more needs to be done to ensure that all users, including non-commercial users, are focussed on using their spectrum as efficiently as possible. The review will consider the use of spectrum management tools such as spectrum valuation, trading and pricing.

The review will report to the Chancellor and the Secretary of State for Trade and Industry by the end of the year. It will address issues early where its advice will be relevant to the institutional framework for spectrum management proposed in the Communications White Paper.

The press release issued by HM Treasury on 28 March 2001.

A new Framework to improve the quality of performance information in the public sector was launched today. This will help to provide the good quality information essential for the public, Parliament and other bodies scrutinising public services and seeking continuing improvement in their delivery.

‘Choosing the Right FABRIC:  a Framework for Performance Information’, sets out principles for good performance information agreed between the Treasury, Cabinet Office, National Audit Office, Audit Commission and Office for National Statistics. All five bodies were represented at the launch of this significant collaborative initiative.

Welcoming the new Framework, Chief Secretary Andrew Smith said:

“To ensure that programmes are working as effectively as possible – and to identify opportunities for further improvement – we need high quality, reliable information about how public sector bodies perform.

The new Framework for Performance Information sets out agreed principles that will make it easier to set clear, transparent targets for their organisations to deliver public service improvements that we all want to see.”

Cabinet Office Minister Ian McCartney said:

“This Government has launched the biggest investment programme in public services in modern times.

But resource must be matched with reform and a responsibility to use those resources effectively and listen to what customers want.  The initiative launched today will help us do just that.”

Sir John Bourn, Comptroller and Auditor General said:

“Good performance information is a crucial component of better management and improved accountability to Parliament and the public.  The Framework for Performance Information provides a set of criteria for the coherent development of better performance information across government, and hence better public services.”

Andrew Foster, Controller of the Audit Commission said:

“Performance measurement is a vital tool in helping to improve public services and the Audit Commission is very pleased to be bringing its experience in this area to the table.

“It ensures that poor performance is challenged and best practice shared. But it also ensures that the providers of public services are accountable by making information available to the public in an accessible and meaningful way.”

Len Cook, National Statistician said:

“For the public to have confidence in government statements about its objectives and targets, trusted information is critical. I have been pleased to play a role in this Framework, which recognises the importance of high quality National Statistics.

My job, under this Framework, is to help meet the objective Sir Winston Churchill set when he established the Central Statistical Agency in 1941 – that arguments should be about what should be done, not about what are the right figures.”

Also launched today is the Government Strategy for Performance Information. This was developed in response to the Performance and Innovation Unit’s ‘Wiring It Up’ report on the management of cross-cutting issues. The Strategy outlines a number of initiatives, including both existing and new work, such as the Framework, that are helping the public sector to improve the way it produces and uses performance information.

The press release issued by HM Treasury on 3 April 2001.

Andrew Smith, Chief Secretary to the Treasury, today announced that the drive for better value for money in government procurement has produced its latest ‘quick win’, in the area of hotel accommodation and conferencing, with the Office of Government Commerce (OGC) delivering £18million savings to the taxpayer over three years.

The OGC initiative under which the Department of Social Security (DSS) took the lead on behalf of Government in the tendering exercise and award of contract to Expotel, provides a single contract to Government at competitive rates to drive down the cost of hotel rooms and external conferences, minimising paper based transaction charges and eliminating government re-tendering costs.

Speaking in London at Public Sector Expo, OGC’s ‘One Year On’ conference, Andrew Smith said: “This latest quick win initiative for hotel accommodation and conferencing is another example of how the OGC is working with departments to make a real difference in the way Government does business.  The £18 million savings demonstrate what can be achieved by optimising the purchasing power of government.

There are clear benefits for Government in entering strategic partnerships with major private sector providers of government services and products.

This is excellent news for the taxpayer because for every pound saved in procurement an extra pound can be spent on front line public services.”

Peter Gershon, Chief Executive of the OGC said:

“One year on, OGC’s pursuit of value for money improvements and our strategic approach to the purchase of key procurement commodities and services is making a real difference to the way the Government and its departments are able to develop their commercial activities.

This innovative DSS led contract is available to the whole of the public sector and is further proof that the OGC is making a real difference both in disseminating best practice and in delivering value for money improvements.”

The main features of the contract with Expotel include:

• A Guaranteed Average Room Rate, dependent upon subsistence rates, which equates to a saving of approx £5.50 per night to the DSS;
• A booking agent rebate of 63 per cent equivalent to approx £3.50 per room;
• A £30 process cost reduction through on-line booking;
• £30,000 savings for each department from unnecessary re-tendering.

The potential annual spend in hotel accommodation and conferencing costs across central civil government averages around £60m each year and the contract provides scope delivering further savings on conference facilities.  The newly negotiated DSS contract with Expotel gives a high priority to reducing transaction costs in the booking service by establishing an on-line booking facility in the drive to meet Government’s commitment to do business on line.

Currently Departments operate individually negotiated contracts for hotel accommodation.  By using the Expotel contract, negotiated by DSS, the need for Departments to incur further tendering costs is negated.

The contract with Expotel will run for three years and there is the scope for the contract to be extended for a further two years if there is clear evidence that further savings can be achieved.

The agreement is another in a series of initiatives arranged by the OGC following up its ‘quick wins’ on the Vodafone and Watermark contracts, the introduction of the Gateway Review process and introduction of best practice procurement guidance.