asked the Minister for Finance the reason for the increase in consultancy fees in the Stationery Office for this financial year of 125 per cent over last year; the estimate for which fees are now £18,000; and if he has satisfied himself with the increase.
Written Answers. - Consultancy Fees.
41.
A firm of management consultants were engaged to design a computerised management information system which would enable the Stationery Office to identify precisely the costs it incurred on behalf of each user Department and on each of the 500 or so items which it regularly supplies to these Departments. The intention is to charge the user Departments for the service in the belief that greater awareness of the cost of the service will result in more prudent ordering and the avoidance of waste. The system will facilitate cost effective and cost efficient purchasing, storage and distribution of the stock items which the Stationery Office supplies to Departments at a current total gross cost of over £9 million through precise quantification of annual usage.
In the case of Government publications, for example, it will underpin a pricing policy designed to recover the full cost of publications in the interests of maximising Appropriations-in-Aid and thus reducing the net cost of operating the Stationery Office as far as possible. Continuous monitoring of demand for publications will result in the print runs being more accurately determined thus avoiding waste.
My Department are satisfied that the expenditure incurred on the consultancy is justified and that the resultant benefits will substantially exceed the costs. The total cost of the consultancy was £25,000, £8,000 of which was paid in 1986.