5
WEDNESDAY, MARCH 6, 1991
THE EXERCISE INVOLVES THE CHIEF SECRETARY AND MYSELF, ALL THE POLICY SECRETARIES AND THROUGH THEM THE HEADS OF DEPARTMENTS, SIR PIERS SAID.
"POLICY SECRETARIES ARE ABLE TO ARGUE THEIR CASE FOR NEW SERVICES AND PROJECTS, BUT THEIR ARGUMENTS MUST INCLUDE AN ASSESSMENT OF THE LONG TERM FINANCIAL IMPLICATIONS OF EACH PROPOSAL.
THE WHOLE
"RESOURCE ALLOCATION IS THUS AN IMPORTANT PART OF PROCESS, CONDUCTED AT THE HIGHEST LEVEL WITHIN THE ADMINISTRATION."
HE SAID NOT SURPRISINGLY, THE COST OF ALL THE PROPOSALS PUT FORWARD INVARIABLY EXCEEDED THE BALANCE OF FUNDS AVAILABLE, USUALLY BY AN EMBARRASSING ORDER OF MAGNITUDE, AND SO IT WAS NECESSARY TO
DETERMINE PRIORITIES.
"THIS
IS THE MAIN FUNCTION OF THE RESOURCE EXERCISE, SIR PIERS SAID.
ALLOCATION
HOWEVER THE FINANCIAL SECRETARY POINTED OUT THAT IN 1990 THE GOVERNMENT DECIDED TO EXTEND ITS SCOPE BY LINKING IT TO THE ONGOING ATTACK ON RECURRENT EXPENDITURE AND TO VALUE FOR MONEY STUDIES.
HE SAID IN HIS SPEECH LAST YEAR, HE EMPHASISED THE NEED TO LOOK PRIMARILY то BASELINE EXPENDITURE, THAT WAS, THE COST OF
OF EXISTING SERVICES, IN ORDER TO ACCOMMODATE IMPROVEMENTS AND NEW SERVICES.
"THIS IS NOW BEING DONE.
AT
"IT HAS REQUIRED AN IMAGINATIVE, CRITICAL AND RADICAL LOOK ALL EXISTING SERVICES, WITH THE ACTIVE INVOLVEMENT OF EVERY DEPARTMENT AND POLICY BRANCH.
BASELINES,
"THE STARTING POINT IS A GENERAL REVIEW OF EXISTING IN WHICH WE IDENTIFY THOSE AREAS WHERE WE WANT SOME EXPANSION, THOSE WHERE WE LOOK FOR ZERO GROWTH, AND FINALLY THOSE WHERE NEGATIVE GROWTH SHOULD BE IMPOSED."
THUS, THE STAR CHAMBER'S ROLE JN THE ALLOCATION OF NEW RESOURCES HAD BEEN EXPANDED TO INCORPORATE A SYSTEMATIC EXAMINATION OF AREAS WHERE SAVINGS COULD BE ACHIEVED AND PRODUCTIVITY INCREASED, HE SAID.
申
IDEAS MAY FLOW FROM THE STAR CHAMBER ITSELF, OR FROM POLICY SECRETARIES OR FROM HEADS OF DEPARTMENTS.
"WHERE APPROPRIATE, THOSE IDEAS ARE PURSUED THROUGH VALUE FOR MONEY STUDIES.
"SOME 200 ITEMS ARR PRESENTLY ON THE ACTIVE LIST," THE FINANCIAL SECRETARY SAID.
HE SAID VALUE FOR MONEY STUDIES WERE CONDUCTED BY FINANCE BRANCH AND CONTINUED TO TARGET SPECIFIC ACTIVITIES OR SOMETIMES THE FUNCTIONS OF A WHOLE DEPARTMENT. AS A RESULT OF THESE STUDIES, THAN 2,500 POSTS HAD BEEN DELETED SINCE 1988.
MORE
/ON LEGOO