Ups and downs of e-targets

26 Jul 01
The government has missed one of its major e-government targets, setting back its plans to modernise Whitehall departments.

27 July 2001

Aiming to put all public services on-line by 2005, ministers originally set a target of 90% of low-value goods and services to be purchased electronically by March 2001. But in an answer to a Parliamentary question on July 20, the last day of the Commons session, Chief Secretary to the Treasury Andrew Smith said: 'Recent measurements by the Office of Government Commerce indicate that at present approximately half of low-value transactions are conducted electronically.'

But Smith said good progress had been made on e-procurement, with £100m saved in the past three years. This has involved conducting transactions using auto-fax, e-mail, web-enabled on-line ordering and payment, electronic catalogues and purchase cards.

The Treasury also insisted that 75% more electronic transactions are now being carried out than three years ago.

Many believe the 90% target was unachievable in the first place. 'It was probably never deemed to be a realistic target, it was probably always aspirational,' said Gordon Murray, procurement adviser at IPF, which runs a public sector procurement forum.

No revised target has been set for e-procurement, although OGC chief executive Peter Gershon made it clear the drive for electronic dealings would continue. 'It is no longer acceptable to keep faith with old manual systems and processes. Instead we must apply modern and electronic techniques to procurement activities. There is scope for adding real value here.'

In separate announcements, the Treasury predicted a further £45m of savings would be achieved in the next 18 months as use of the government procurement card increases. It also highlighted progress with the government's new electronic tendering system, known as OGC TenderTrust, which has been piloted across Whitehall.

The first electronic tender was issued by the Government Procurement Agency of Northern Ireland for the procurement of a street works register and notification system. The tendering system is expected to save the taxpayer £13m over four years and reduce suppliers' tendering costs by £37m.

No specific targets have been set for town halls. The recent Byatt report on procurement in local government called for councils to adopt a 'modular approach', moving first to increase their use of purchase cards and electronic payments.

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