27 July 2007
The Office for National Statistics has hit back at criticisms from MPs that its plans to relocate staff to South Wales threaten the quality of key economic data such as inflation figures.
The official statistics body says the relocation programme, prompted by the Gershon efficiency programme and slated by the Treasury
sub-committee in a report this week, will 'enhance' the quality of its data, 'not reduce it'.
Its plans to move all statistical work out of London have sparked concerns that vital expertise in producing statistics that underpin key decisions, such as the level of interest rates, will be lost.
There are fears that many staff will leave rather than relocate to Newport in Gwent.
But the ONS claims it has taken these risks into account. A spokesman said: 'Relocation, combined with the ONS's efficiency savings programme, does give rise to risks. The ONS has put in place strategies to manage the risk to statistical outputs arising from relocation.'
However, the Bank of England, in its evidence to the committee, gave a stark warning about the impact of the loss of experienced ONS staff. 'The relocation programme poses a serious risk to the maintenance of the quality of macro-economic data. If substantial numbers of ONS staff are unwilling to relocate, the loss of skilled individuals could have a severe impact on a range of statistics.'
The MPs' report, published on July 23, says there is 'considerable evidence' that data quality could be undermined, and concludes the relocations 'lie at the heart of fears' about the ONS's future efficacy. It reveals that, on the ONS's own assumptions, just 10%–15% of London-based staff are expected to move.
'We recommend that as a matter of urgency the Treasury review the case for, and the consequences of, the current relocation programme of the ONS,' the report urges.
But a Treasury spokesman immediately ruled out such a review. 'The efficiency targets set in the 2004 Spending Review were based on the robust evidence of Sir Peter Gershon's independent review into efficiency. We fully expect these to be achieved. Indeed, each of the chancellor's departments is on track to deliver the efficiency targets by March 2008,' he said.
'The National Audit Office has recognised that service quality has improved in many areas. The Treasury continues to work closely with departments to support delivery of the efficiency targets,' he added.
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