26
3 May 1989]
The correct comparison is:
MINUTES OF EVIDENCE TAKEN BEFORE
1988-89
1990-91
Running costs (excluding 1988-89
406
457
overseas price movements)
Planning totals
439
470
Running cost percentage of total
92.5
97.2
[Continued
The above comparison is somewhat misleading in as much as it sets gross running cost figures against the net cash planning totals in table 2.1. Since the latter totals take account of increased receipts, a fairer comparison would be between gross running costs and gross planning totals:
Running costs (excluding 1988/89
overseas price movements)
Gross planning totals
Running cost percentage of total
1988-89
1990-91
406
457
487
532
83.4
85.9
The reason for the increased ratio of running costs to gross planning totals is that running costs (in particular salaries and allowances) are rising faster than other costs.
POLITICAL AND ECONOMIC WORK
4. Cm 602 contains a list of political and economic objectives for 1989. What effect are these objectives expected to have on the work of the Diplomatic Service?
-What arrangements are there to assess at the end of the year to what extent these objectives have been achieved?
The political and economic objectives in Cm 602 provide broad policy guidelines for FCO work in those areas in 1989. While these cannot attempt to be exhaustive, they do identify a number of the FCO's major current objectives, reflecting the Government's overall foreign policy priorities. Within this framework, individual British posts overseas and departments and senior officials at home have established measurable and specific short-term objectives for 1989. Resource allocation decisions are directed towards the fulfilment of these objectives. Performance will be formally reviewed against these short-term objectives at the end of the year. Objective-setting and monitoring is an integral part of the FCO management and policy formulation process.
COMMERCIAL WORK
5. Table 2.8 in Cm 602 shows an increase over the planning period in commercial work, together with stability in staff resources and an increase in expenditure over that shows in Cm 288. In its Report last year (HC (1987–88) 429) the Committee expressed concern at constraints on the provision for commercial work particularly in the Newly Industrialised Countries of the Far East. Is the increase (albeit small) in planned provision intended to address this area?
The increase in planned provision referred to-additional cost forecasts of between three and four per cent per annum over the next three years-is essentially due to increased worldwide costs of our representation.
We are well seized of the importance of export promotion and other commercial work in support of British interests in the newly industrialising economies of the Far East and the Western Pacific rim generally. An additional officer was posted to Singapore in 1988 to help build up the British market share in Singapore's rapidly-growing market for high technology goods and services. The FCO Inspection roster for 1988 did not include any of the Newly Industrialised Countries in the Far East. (The nearest to be inspected was our Embassy in Indonesia and its commercial resources were found to be at the right level.) At the same time the FCO Top Management Round resource allocation process in 1988- 89 did not produce calls for reinforcement of commercial sections in the Newly Industrialised Countries of the Far East.
Those who manage our commercial work in the area will continue to be consulted annually about their requirements in meeting new demands which arise.
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