CAB129-37 — Page 485

Page 485

Page 485

Page 485

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In addition, I would suggest

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Page 486chairmen of (Official CommittePage486 of 19971 and Interdepartmental, should be specifically instructed to look. out for and to call' special attention to opportunities for

It sometimes economy which emerge in the course of their work. happens that committees charged with some wide or specific object run across instances where significant savings could be obtained but do not follow them up as the matter is outside- their particular terms of reference. I propose that all (official

economy as within their terms of reference in future, and should be told to include in their reports recommendations for saving public expenditure. Apart from its yield in detailed atmosphere in all Departments.

Dow as include Committees should be instructed to regard suggestions for

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(b) Economy by local authorities is just as important as economy by Departments and may well offer even greater scope. I suggest that, when the Report on Local Government Man-power is received, the Prime Minister might consider inviting leading representatives of local authorities along to No. 10 Downing Street to impress on them the need for drastic retrenchment and to invite their suggestions on methods by which their relations with central government might be more economically conducted by adjustments on both sides. The wide differences in the cost of provision of similar services, such as school places and housing, by different local authorities might also be further ventilated.

Special Investigations

6.

I do not think, however, that we should under-estlinate the obstacles in the way of securing a more economical administration. Many of the drastic methods resorted to in the past have undoubtedly been brought about by a sense of the vast mass of vested interest, complacency and inertia that has to be overcome. From this point of view, special investigations are of great value. The Chancellor of the Exchequer, in consultation with me, set up last year a Committee under the Chairmanship of Sir Henry French on the Cost of Home Information Services which made a thorough review, with the willing support of the Central Office of Information and of information officers in Departments, and has been instrumental in stimulating substantial savings without serious detriment to this important branch of Government. As the Minister responsible to the Cabinet for information policy generally, I welcomed and, indeed sought, that independent critical investigation. This technique seems to be particularly called for in the services which were swollen under war-time conditions and which have never been brought back to anything like their peace-time size. The Debate also raised the question whether administrative economies might not be achieved by merging certain Departments. Enquiries into such matters, if well run and sufficiently independent, can liven up administration and produce greater efficiency at less cost.

7.

My specific proposal under this head is that the Chancellor of the Exchequer should be invited to bring before the Economic Policy Committee a list of Departments and problems which merit high-level investigation with a view to more economical administration, with suggestions how they should be carried out.

Levels of Expenditure

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When all these things have been done, however, Page 486 of 1097% fundamental problem to whichPage 486 @fd097binet or the Economic Policy Comittee should devote some attention.

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