XN000022-1990-05-09 — Page 24

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WEDNESDAY, MAY 9, 1990

ARE

"IN ADDITION, WE

WORKING ON AN OVERALL STRATEGY FOR CONTROLLING MORE TIGHTLY THE RATE OF GROWTH OF RECURRENT EXPENDITURE, AND HENCE ALSO OF THE CIVIL SERVICE.

"MANY DEPARTMENTS WILL HAVE TO LIVE WITH ZERO GROWTH FOR A NUMBER OF YEARS; SOME WILL EXPERIENCE REDUCTIONS," HE SAID.

ALSO, THE FINANCE BRANCH WOULD CONTINUE ITS PROGRAMME OF VALUE FOR MONEY STUDIES TO ASSIST DEPARTMENTS TO ACHIEVE THE NECESSARY INCREASE IN PRODUCTIVITY.

"IN RECENT YEARS THESE STUDIES HAVE ENABLED THE DELETION OF SOME 2,500 POSTS VALUED AT ABOUT $500 MILLION A YEAR.

"ANOTHER 30 STUDIES ARE CURRENTLY UNDER WAY," SIR PIERS SAID, ADDING THAT HE EXPECTED FURTHER SAVINGS AS A RESULT.

"UNDERPINNING THESE VARIOUS INITIATIVES, OF COURSE, IS THE RESOURCE ALLOCATION SYSTEM- A SYSTEM OF COMPREHENSIVE LONG TERM PLANNING OF EXPENDITURE," SIR PIERS SAID.

THIS SYSTEM, INTRODUCED IN 1987 TO IMPROVE FORWARD PLANNING, WAS DESIGNED TO ENSURE THAT PUBLIC SPENDING REQUIREMENTS WERE IDENTIFIED EARLY AND THAT LEVELS OF SPENDING COULD BE MAINTAINED WITHOUT MAKING AN UNACCEPTABLE CLAIM ON THE ECONOMY.

FOR FOR

SIR PIERS SAID THE STARTING POINT WAS THE EXPENDITURE BASELINE.

"THIS IS NOT SIMPLY LAST YEAR'S EXPENDITURE ADJUSTED UPWARDS INFLATION; IT MAY BE ADJUSTED DOWNWARDS AS A RESULT OF THE VALUE MONEY STUDIES AND THE STAR CHAMBER MEETINGS TO WHICH I HAVE

REFERRED.

"DISCUSSIONS ARE HELD BETWEEN THE FINANCE BRANCH AND INDIVIDUAL DEPARTMENTS ON THE BASELINE.

"AT THE END OF THIS PROCESS, THE TOTAL AMOUNT OF MONEY REMAINING FOR NEW INITIATIVES IS ESTABLISHED.

AND

"POLICY SECRETARIES BID COMPETITIVELY FOR THIS NEW MONEY, THE CHIEF SECRETARY AND I, FROM OUR RESPECTIVE VIEWPOINTS, TAKE A CLOSE PERSONAL INTEREST IN THE PROCESS TO ENSURE THAT THE OUTCOME IN BALANCE WITH APPROVED POLICIES," HE SAID.

IS

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