Select Committee on Treasury Appendices to the Minutes of Evidence


APPENDIX 2

Letter to the Clerk of the Sub-committee from Mr Mick Jones, Sector Director, CMG Admiral

  Thank you for your letter of 25 October, to Geoff Neville, about the forthcoming inquiry into the work of the Office of Government Commerce.

  As one of the key suppliers of services to HM Government, CMG recognise the important role played by OGC in raising the standards of procurement across the public sector and in delivering better value for money. We appreciate that developing a sound understanding of the supply base is an important aspect of the OGC function and we are pleased to work with the Chief Executive and his team towards that end. We do have a regular series of discussions with OGC directors and we have recently, for example, shared our own internal government sector business strategy with them.

  CMG is particularly interested in seeing the introduction of more effective working relationships between customer and supplier for the delivery of IT-enabled business change programmes and services. We have been innovative in areas of government such as Export Credit Guarantee Department, Heath and Safety Executive and Radio Spectrum International (the joint venture between CMG and the RadioCommunications Agency) and we contribute to the work of the Senior IT Forum, chaired by Peter Gershon. In addition to the medium term benefits of greater value for money that new partnership based contracts can bring, we share with government the long term goal of seeing a greater proportion of success stories in this field and the realisation of a genuinely mature procurement environment. We also share the OGC view that the co-operatively-based approach, far from suggesting cosiness, can in fact be mutually challenging and rewarding—the benefits flowing from a frank and open recognition by each party of the others legitimate interests.

  Just as the customer-supplier relationships of the future will call for much greater co-operation and openness, so the work to help shape this new environment must also be joint and co-operative. There is a great deal still to do and we look forward to continuing to be able to actively contribute to the debate.

12 November 2001



 
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