Government Efficiency: Sir Philip Greens’ Report

Lord Eatwell Excerpts

Thursday 14th October 2010 Lords Chamber

Asked By

[Lord Eatwell]

To ask Her Majesty’s Government what is their response to Sir Philip Green’s report on government efficiency, published on 11 October.

[Lord Taylor of Holbeach]

My Lords, as Mr Francis Maude, the Minister for the Cabinet Office, said on Monday, Sir Philip Green’s findings clearly demonstrate the scale of inefficiency and waste present in the system today. It is clear that there is a huge opportunity and a real willingness on behalf of civil servants to take on the important task of delivering efficiency. We welcome the sense of urgency that Sir Philip has brought to this work and are looking at how we can best take forward key recommendations.

[Lord Eatwell]

My Lords, I thank the Minister for that reply. Is he aware that we on these Benches welcome many of the conclusions in Sir Philip Green’s report? It is the latest in a long line of similar initiatives, such as those in the report of Sir Derek Rayner in the 1980s which uncovered gross inefficiencies in the Government of the noble Baroness, Lady Thatcher, and in the work of Sir Peter Gershon for the Labour Government, saving many billions more than the Green report identifies. However, we find the key conclusion, emblazoned on the cover of the report, that,

“The Government is failing to leverage both its credit rating and its scale”,

very disturbing. Translated into everyday language, that amounts to a recommendation that the Government abuse their market power to worsen payment terms and force down supplier prices. Will the noble Lord join me in supporting good practice in business and reject Sir Philip Green’s invitation to the Government to abuse their market power?

[Lord Taylor of Holbeach]

My Lords, I thank the noble Lord for his exposition of the Opposition’s position on this matter, but to answer his question, it is true that the Government have failed to leverage their position. Perhaps I may give an example that in fact stems from the previous Government, energy, which is a very good example of what can be achieved by using leverage. The purchase of 75 per cent of electricity and gas requirements has been centralised in an expert team, resulting in cumulative savings of £500 million. That is a substantial sum and something worth achieving.