NAO: Govt savings plans are damaging
Wed 28 May 2008
23/05/2008
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The National Audit Office (NAO) has said the Department for Transport's (DfT) plans to save money by sharing human resources are "damaging". Its report revealed the failure of the department's scheme to save £57 million and claimed it will cost the taxpayer £81 million. NAO head Tim Burr commented: "It is disappointing to see a programme which aimed to improve the efficiency and effectiveness of a department leaving it on current projections some £80 million worse off." The plan hoped to achieve reductions by sharing human resources, payroll and financial services. "Departments need to be realistic about the challenges of implementing shared services and to manage suppliers effectively," Mr Burr went on. The DfT defended its performance and claimed its plans will contribute to long-term benefits across Whitehall. A spokesperson for the department said: "As with any pioneering project on such a large scale, there will always be lessons to be learned and we have already made improvements."
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