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PLANS BY THE Department for Transport (DfT) to streamline its
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internal administration procedures to increase efficiency will cost £81m rather than save money, according to a report.
In addition, the failure of its 'shared services' strategy has impacted on the DfT's resources after the Driver and Vehicle Licensing Agency (DVLA) and the Driving Standards Agency (DSA) were forced to introduce compensating controls just to maintain internal procedures.
The National Audit Office (NAO) says the department was being unrealistic and over-optimistic to expect its shared service centre to be introduced in just one year.
Instead of making savings of £57m. the NAO says the overhaul of its HR, payroll and finance functions could end up costing aim by 2015, Its strategy of reducing costs for the DVLA and the DSA with a new IT system have also been questioned, because it did not follow a full competitive process for its development. Subsequently, staff received prompts in German and the system didn't recognise basic commands.
Exactly how the DVLA's role in the licensing of HGVs has been affected is unclear. However, the report says delays to invoice processing last summer meant the DSA struggled to deliver motorcycle tests.
The report does note that the DfT has made considerable efforts to improve its management of the programme.
A DfT spokesman says: "As with any pioneering project on such a large scale, there will always be lessons to be learnt and we have already made improvements."