Jul 2007 16

Estimated cost* of government websites

As regular BOM readers may recall, back in 2001 Tony Blair held a Special Information Age Cabinet (see this blog). He breathlessly announced:

"I want the UK to be the world’s leading Internet economy… I am bringing forward our target for getting all Government services online to 2005… people and businesses will be able to access Government services 24 hours a day, seven days a week."

Last week, the National Audit Office updated us on progress. For some reason, it seems that despite spending £1bn, and despite ongoing costs of £208m pa, the stock to form the 24/7 departure is still stuck on its inward journey at Crewe.

As it happens, your correspondent spends a deal of time on government websites, trying to track down information. It’s rarely a good experience.

Sites such as the Department of Health, the Home Office, or the Office for National Statistics, contain huge masses of stuff. But their indexing systems are usually either incomplete or impossible to fathom, while their dedicated search engines are very poor, throwing up a million possibilities or nothing. You end up scrabbling through page after page of dense text, clicking on a whole string of links, opening a massed confusion of new windows, swearing and spilling cocoa over your keyboard.

In fact, unless you know specifically where to look, it’s usually faster and much much kinder on the nerves to Google.

The NAO user survey found the same thing:

"Most department and agency sites were unfavourably compared with participants’ experiences of commercial sites, especially banks and travel sites. Participants said that they found department and agency sites hard to navigate, particularly when arriving at the homepage. Internal search engines, in particular, were found to be unhelpful in finding the information being sought."

Part of the problem seems to be the not-invented-here-syndrome: a deeply entrenched unwillingness to use off the shelf industry standard solutions. Not only does that mean we taxpayers have to pay more, but the resulting system isn’t tried and tested.
To make matters worse, since 2004, the government has thrown its previous website strategy into reverse. Originally it let every tinpot department and offshoot set up its own independent site. The result was 951 separate identified websites- an extraordnary number with an extraordinary pricetag.

Our flipflop government’s new cunning plan is to do the opposite: to slash this number, and focus instead on just two so-called supersites: Directgov and businesslink.gov.uk.

The question is, why should we believe that be any better value for money?

The NAO is certainly not convinced (para 3.11):
"There is no parallel to the UK’s planned supersite strategy overseas and interviewees from our comparator countries viewed it as a very radical step."

A VERY RADICAL STEP.

Where government IT is concerned, those are the very four words you never want to hear.
*Footnote- The NAO’s departmental website costs are only estimates because "many organisations could not provide any costs for their websites". But why would they bother? It’s not their money.
Jul 2007 15
Shutting after five years

In the news this week:

£25m school shut after just five years- "Plans have been made to close a secondary school in Essex built at a cost of £25m five years ago. Bishops Park College in Clacton (pic above) opened in 2002 and was hailed as a state-of-the-art school for 900 pupils… Mike Davis, school head, said "[The council] know they got their numbers fundamentally wrong – at the end of the day the county council has spent something like £25m on a school that should never have been built." (BBC News 10.7.07- htp Zulqar C)

£48m blown on useless community trust- "A community trust charged with spending £48m of public money to improve a rundown estate has been criticised for wasting funds on failed projects and consultants. Marsh Farm Community Development Trust was set up in 2001 by the government to help regenerate the Marsh Farm area of Luton… The Trust, which has seen 41 directors resign over the past five years, has also spent about £3m on consultants… A present director of the Trust, who has asked not to be named, expressed concerns about the information directors are being told. "Since the time I’ve been there, we’ve received no financial information whatsoever. The one item we got was the end of year report. There’s no interim or quarterly statements which they are supposed to do. That’s in the governance. We are supposed to get them to ascertain whether these projects are financially viable and being conducted correctly. I’ll be absolutely blunt with you, if Marsh Farm Trust closed down tomorrow people in Marsh Farm wouldn’t mind because they’re getting nothing of it now." (BBC 13.7.07; htp Jon D)

£111,000 bill for crackdown on peace protester- "THE true bill for the police crackdown on anti-war protester Brian Haw in London’s Parliament Square last year exceeded £111,000, it emerged yesterday. The sum – revealed by Scotland Yard in new figures – is more than four times greater than first estimated. Some 428 police officer shifts and five police staff shifts were devoted to the overnight raid to scale back Mr Haw’s sprawling "peace camp" on 23 May… Police put restrictions on him under the Serious Organised Crime and Police Act." (Scotsman 14.7.07)

Council green advisors cost £100m pa- "Council leaders are paying out £100 million to fund an army of 3,500 workers to tackle climate change. Despite continuing disputes within the scientific community over the causes of global warming, how profound its effects may be and even its very existence, a nationwide investigation has revealed massive spending on new local authority staff with job titles such as "carbon reduction advisors" and "climate change managers". The Taxpayers’ Alliance, calculated that councils on average now employ eight such people… the average salary paid to such staff was £29,283, suggesting a total expenditure by councils across the UK of £102 million. News of the spending comes as many local authorities face criticism for axing weekly rubbish collections and reducing long-term care for the elderly." (Sunday Telegraph 15.7.07)

Total for week- £173,111,000

Jul 2007 14

There has been some speculation in recent days that regional assemblies are about to be abolished.Seera     The faux-oversight they were supposed to offer the vast regional development agencies was always a sham, and now it seems that Gordon Brown has had enough of them.  In yesterday’s Times, the move to abolish them – and reportedly to transfer their remit over regional planning and housing decisions back to Whitehall as part of Brown’s policy of creating “eco-towns” and 3 million new homes – exposed a contradiction in the policy of the opposition Conservative Party.  In fact, the opening paragraph required something of a double-take:

“Gordon Brown’s plans to scrap regional assemblies and hand their powers to other regional quangos were criticised by the Conservatives last night who claimed that they were undemocratic. Eric Pickles, the Shadow Communities Secretary, said that Labour was trying to remove the key tier of opposition to its plans to build hundreds of thousands of homes in the South and South East”Times

Since when was a decision by an elected Government to abolish an unelected quango undemocratic?  That said, if it is only a prelude to more powers being centralised in the hands of bureaucrats in Whitehall, then sham democracy has something over no democracy at all.  But is that really where the Conservatives are coming from?  After years of opposition to the principle of regional government, do they now see regional assemblies – especially those in the South with majority Conservative representation – as a bulwark (however limited) against socialist planning diktats that Brown would otherwise be able to ram through?  If so, this is quite a major u-turn.  After all, in 2002, Eric Pickles described himself as a “born again localist”:

Pickles1 "We want to give a bigger emphasis to local government, rather than just chasing John Prescott and his six ministers around. I took the job on after Stephen Byers’ resignation. For us, local government is the key – it’s the building blocks by which we’ll get back to Westminster. I’ve spent the summer talking to local authorities, and in Tyne Tees, for example, 60% of people don’t want a regional assembly. People there don’t want to be controlled by Newcastle. Ditto for Yorkshire – the people of North Lincolnshire hate the idea of being run by Leeds and Bradford."

If this is still his view, why should people in Dartford, or Dover or Tunbridge Wells, have their views overruled by unelected South East of England Regional Assembly (SEERA) members – of any party colour – in Guildford? Later in the same article, Mr Pickles hedges on the planning subject but also replays the Conservative Party’s conventional message about regional government:

“The regional assemblies are unelected, unaccountable and unwanted. But the musical chairs of passing their functions from one regional quango to another will do nothing to give local communities a greater say on where new homes should go, nor speed up the planning system.”

In other words – "the system is crap but it’s working for us at the moment so we may as well play ball and do our best to annoy Brown".  How any of this fits with the party’s preference for more new housing to help first time buyers is anyone’s guess.  Or indeed how this national policy – insofar as it is one – is going to go down with local Conservative councils who have been some of the most vehement opponents to any new housing, however much it is needed (these “Nimby” councils incidentally, would of course in Pickles’s eyes be the preferred recipients of any planning powers redistributed if regional government was ever abolished).

These are all details that seem to undermine the Conservative position on planning and local democracy.  It is clear that on this, like so much else, the Conservatives don’t really know what they think, even when it isn’t hard to know what argument plays best with the public.  We all know that regional assemblies are unpopular (and they seem to know they are – it is quite satisfying to think that SEERA felt the need to dedicate an entire page of its glossy website to justify itself…), and the only time the public were given an opportunity to have a say in the North East in November 2004 they were also resoundingly rejected as a concept. 

Despite this, some Conservatives seem to have decided regional assemblies are good for something and many have now built new careers for themselves inside regional government (the head of the UK delegation to the European Committee of the Regions is a Tory Cllr). It isn’t unreasonable to say that Conservatives who sit on regional assemblies (they have done so for years), now have a clear vested interest in retaining them – and even increasing their powers (unlike UKIP MEPs in the EU).  Some Conservatives councillors sitting on regional assemblies have already argued for this – even if always as an alternative to losing these powers entirely back to Whitehall.  From the same Times article:

"Keith Mitchell, the Tory chairman of the South East England Regional Assembly, said: “The assembly gives elected local councillors the power to make decisions on housing, transport, the economy and the environment that are too big for a single local authority to make. Without the assembly these decisions would be made by quangos or remote civil servants.”

Most UKIP MEPs have to hold their noses when they spend time in Strasbourg or Brussels.  Conservatives on regional assemblies seem to actively enjoy their new power and status (and expenses allowance). 

All this is pretty inconsistent and the question now is: would a future Conservative government actually  reverse the costly and bureaucratic regional government agenda that has taken over planning and regeneration in the last ten years, or would they just settle for being the majority party in charge and therefore in a position to use them as a tool for their own ends?  If Brown doesn’t actually abolish them, are regional assemblies and development agencies (where the real money is), here to stay?  Like Bank of England independence, tax credits and the minimum wage, is regional government a permanent part of the Blairite inheritance that will be as difficult to abolish as the national curriculum in schools?  Earlier last week Alan Duncan, the Shadow Business Secretary suggested not, but if you were going to scrap the RDAs, there would be no need for the regional assemblies at all.

We sincerely hope that the Conservatives iron-out the contradictions on their regional government policy, as much on democratic as on cost grounds.  Regional government is a key pillar of our bloated quango state that drains public money at a terrifying rate.  The best part of £3 billion is filtered down to these corporate bureaucracies every year and as a result, we have created well-paid local technocratic elites who represent nothing and no-one except the worst examples of our political class (they are typically unqualified, lazy, junket-loving and incompetent…).  But there is also the more important democratic argument. You are either in favour of more local control – which means devolution to the lowest possible level as the Direct Democracy group favour – or you are not.  Regional government is not and never has been localism and it doesn’t become any better just because your mates are running the show. 

Pickles and co. should commit to a clear manifesto pledge to scrap all vestiges of regional government, including regional development agencies and instruct all those Conservative councillors currently sitting on regional assemblies to resign.  Those Conservatives who then chose not to, would find themselves in conflict with the popular declared policy of the Party leadership, and also on the wrong side of a people vs. politicians divide.  In today’s political environment – not a very comfortable place to be.

Jul 2007 13

Campaign News

Visit the new TaxPayers’ Alliance website…

Launched at the weekend, the new TPA website has a brand new layout and improved design. We listened to feedback on the site and from responses to our website survey and have tried to accommodate the wishes of our existing audience as much as we can. The content of the website is still very much a work in progress – most of the main TPA material is there, and the new blog layout should make it easier to find. We will be gradually uploading our older content in the coming weeks, including campaign documents, activist material and previous TPA polls and press releases from 2005 and 2006.

The site now has five themed blogs – Better Government; Economics 101; Burning Our Money; Campaign and Media Coverage – around which everything else is organised. New items in these sections are then linked to on the frontpage as they are uploaded so you’ll know what is new just by visiting the main page.

The Homepage will have a selection of news that we think you’ll find relevant every morning and we’ll deliberately be linking to news and comment items you might not see on other sites. Every weekday morning from 9.30am you can visit the site to catch up with the latest TPA news, see that day’s coverage of tax and government waste issues, read new TPA blogs commenting on the news agenda and get involved in the debate yourself by posting a comment.

The content will be changing regularly throughout the day so why not set www.taxpayersalliance.com as your homepage, and visit us over lunch or before leaving work or having dinner?You can also watch videos about the campaign via our blogs or our dedicated YouTube channel and you can also visit our Facebook page and join our growing online community. The aim of the new site is to drive up visitor traffic in order to help spread news about the TPA and to give visitors of all types plenty to read and download.

We want to ensure that there is something for everyone on the new site – be they TPA activists, supporters, interested passers-by or journalists – and by the end of the year, we want the TaxPayers’ Alliance website to be one of the top 5 political websites in the UK. We hope you like it. Please feel free to send suggestions of anything you’d like to see integrated into the new website in future to [email protected]

New Research

Today the TaxPayers’ Alliance has launched a major report, “Beyond the Dome: Government projects £23 billion over budget” examining the record of government capital procurement. The report examined the record of government projects and found that it isn’t only famous failures like the Dome or the Eurofighter that go over budget. Up and down the country there are big overruns in the building of hospitals, roads, science facilities, defence systems, IT projects and even art galleries.

Looking at over three hundred projects, completed in the last two years or ongoing, it was found that there was a net overrun of £23 billion, an average of over 33 per cent. Even this figure is probably an underestimate as the numbers for many major projects are thought to have been fiddled. This is a vast amount of money, equivalent to £900 for every household in Britain. Some examples: Barts & the London hospital overran by £380 million. Astute Class submarines by over £1.1 billion. The “THE pUBLIC” art gallery in Sandwell, in the West Midlands, is £30m over budget.

Politicians and civil servants fail to properly specify what is desired from a project before the project begins, underestimate costs to get the project approved and pay over the odds in an attempt to solve the problem. They do this relying upon the taxpayer to pick up the tab. You can read the report here.

TPA in the Media

We continue to get high levels of media coverage – especially around the release of a new report. Over the last few days we have been on Sky News, Five Live and a dozen local radio stations. Our new report on over-budget public projects was covered by the Telegraph, Times, Sun, Mail, Express and many other local newspapers and radio stations and websites. A selection of our latest press coverage is here.

Other News

The TPA has recruited ten new local organisers and lots more activists in the last fortnight who are all keen to get stuck into campaiging. If you would like to become an activist for the low-tax cause, email the TPA’s Grassroots Coordinator on [email protected]

The Institute of Economic Affairs (IEA), has just published an excellent duffer’s guide to the life and work of Adam Smith – the man on the new £20 banknotes. Adam Smith: A Primer – is authored by TPA Academic Advisory Council member Dr Eamonn Butler, Director of the Adam Smith Institute. You can read it here.

The Pensioners’ Party recently endorsed the TPA campaign to reform council tax and make all our taxes lower, fairer and simpler. Look out for their new campaign sticker supporting lower taxes.

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Join the campaign today – [email protected] | 0845 330 9554

Jul 2007 13

So long suckers

The NHS financial crisis is costing us a fortune. Brown’s seven years of plenty may have come to an abrupt halt, but in an organisation legendary for squandering public money, that translates into ever more, and ever crasser wastefulness.

This morning we learn of yet another huge golden goodbye for a departing NHS manager:

"David Johnson, the former head of a regional strategic health authority, was one of about 70 staff who left the organisation when it was abolished as part of a restructuring programme. The 50-year-old received a package worth £899,810 including salary and pension arrangements."

Described as "a lottery win rather than a payout", Mr Johnson’s package is part of the estimated £320m splashed out by the NHS in redundancy payments during the current crisis.

This is mismanagement on a huge scale. The NHS is not some bombed out car maker, but an operation that has benefited from massive growth in revenue over recent years- a doubling since Brown turned on the taps in 2000. How on earth can it now find itself having to declare thousands of redundancies?

Of course, we know the answer: all that money was blown with very little - if any – thought to the future. New staff were taken on in droves and in haste. There was no effective manpower planning, still less any vision of where the whole bloated edifice might be heading or need to change.

Another measure of the same thing is the continuing jobs crisis for newly qualified health professionals. We’ve spent billions on training them, but post all those mega pay rises, the NHS suddenly discovers it can’t afford to take them on.

Last year, we blogged the shortage of posts for thousands of newly qualified nurses, estimating it had cost us £0.5bn in wasted training (see here). Last year too, the BMA estimated we’d wasted £1.4bn on training doctors (at £250 grand each) who couldn’t find UK posts.

Today we hear about the same problem with physiotherapists. They cost us £30 grand to train, and it looks like 1500 of them will not get NHS jobs this year. The Blob just trained far more than it was going to employ. Another £45m tossed on the fire.

Truly madly deeply spectacularly irredeemably buttockclenchingly hopeless management.

And of course, it isn’t just the NHS.

Yesterday we blogged the case of the 180 DfES civil servants who had absolutely nothing to do but were left in post anyway. Management apparently just ignored the problem.

And earlier this week we got an update on the disastrous Rural Payments Agency. We’ve blogged that fiasco many times of course, including the Public Accounts Committee meeting where ex-CEO Johnston McNeill spilled the beans on just how badly the whole thing was managed, all the way up to the spineless power-without-responsibility performance of Defra ministers (see here).

Now McNeill has been back before the PAC to say he’s considering legal action against the government for unfair dismissal. That’s because they sacked him without any prior warning or even any indication they thought his performance was unacceptable. We’ve already paid him £250,000, including £60 grand for unfair dismissal, but now he says:

"I’ve had no disciplinary hearing, I’ve had no correspondence about what exactly it is I have done wrong, I’ve had no opportunity to appeal."

And as anyone who has ever sacked anyone for poor performance knows, you can’t just do it. There are procedures you have to go through, written warnings you have to give, difficult conversations you must have and document. All to meet employment protection legislation laid down by – yes, you guessed it – the government.

The reality is, as we’ve said many times, you wouldn’t trust the average government department to run a whelk stall. Hopeless at strategy, hopeless at planning, and hopeless at execution. That’s pretty well a clean sweep.

There’s just one mystery.

Why do we trust them to spend 43% of our incomes?

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