DfT criticised for cost-cutting exercise
The Department of Transport has been criticised for the ‘incompetent’ implementation of a plan to reduce administration expenses, the BBC reports.
The plans which should save £57m will now end up costing the taxpayer £81m according to MPs.
The project which included moving payroll, finance and services all to one site in Swansea and the implementation of a new computer system; has been rushed through and not fully introduced and is now set to make a loss.
The Commons public accounts committee criticised of the project while the new computer system was accused of being ‘in some cases’ worse than the old.
Eight months after the department’s own deadline had passed, only two of its seven agencies were using the new system.
The shared services centre in Swansea was originally forecast to cost £55m and lead to £112m of savings, a benefit of £57m.
But the department now estimates the programme will cost £121m and save £40m, meaning it makes a loss of £81m.
Committee chairman Edward Leigh, Tory MP for Gainsborough told the BBC:
“The department knew that it was pushing things with such a tight timetable but, without robust challenge to such a risky strategy, ploughed on confidently,” he added.
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