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PRIME MINISTER
Civil
S e r v i c e Manpower
F o l l o w i n g l a s t week's C a b i n e t d i s c u s s i o n , L o r d
Soames now proposes t o make a Statement 4 December.
Mr. Channon would r e p e a t i t i n t h e Commons.
The d r a f t o f t h e Statement
i s at f l a g A.
account o f t h e d r a f t i n g p o i n t s mentioned The r e v i s e d d r a f t s t i l l disjointed.
next Tuesday,
This takes
at Cabinet.
seems t o me t o be a l i t t l e
The f i r s t h a l f seems t o presage t h e r e s u l t s
of a completed r e v i e w .
The second h a l f speaks o f a
stage i n a continuous process.
I t would h e l p t o i n t r o
duce t h i s n o t i o n o f c o n t i n u o u s a c t i o n i n t h e t h i r d o r
f o u r t h p a r a g r a p h , and not l e a v e i t t o t h e s e v e n t h one.
out?
Should we suggest a f u r t h e r amendment t o b r i n g t h i s Otherwise, content that the r e v i s e d s h o u l d be made on 4 December?
28 November 1979
Agree t h a t you s h o u l d be
i n the House, as M i n i s t e r f o r t h e C i v i l Statement?
statement
S e r v i c e , f o r the
CONFIDENTIAL DRAFT PARLIAMENTARY STATEMENT:
. REDUCTIONS I N THE S I Z E .OF, THE C I V I L
SERVICE
«
My L o r d s , "with t h e l e a v e o f t h e House, I s h o u l d l i k e t o make a statement. My hon F r i e n d t h e M i n i s t e r o f S t a t e i n t h e C i v i l
Service
Department announced o n 11 June t h a t t h e Government i n t e n d e d t o • "^rnake m a j o r s a v i n g s i n t h e s i z e and c o s t o f t h e C i v i l
Service
\'\Y
J *'
o v e r t h e n e x t few y e a r s and t h a t o u r ^ d e c i s i o n s w o u l d b e
jj
(If**
announced i n t h e autumn.
Ji<
( p ^ O^J(M^" ^° ^^-^^
R
C
~ ^*~ ^""^
The Government h a s c a r r i e d o u t a r e v i e w f o r t h r e e m a i n
reasons.
• . F i r s t , we b e l i e v e t h a t i t i s i n t h e n a t i o n a l i n t e r e s t t o r e d u c e t h e r o l e o f Government.
Secondly,
a t a t i m e when p u b l i c
expenditure a s a whole has t o be r e s t r a i n e d , i t i s r i g h t t h a t t h e r e s h o u l d , b e a c o n t r i b u t i o n f r o m c e n t r a l Government administration.
Thirdly, i t . i s
a good t h i n g t o e x a m i n e any
l a r g e o r g a n i s a t i o n , p u b l i c or p r i v a t e , from time t o t i m e and prune t h o s e a c t i v i t i e s w h i c h may have.been u n d e r t a k e n reasons b u t w h i c h a r e now l e s s
f o r good
essential.
A l l M i n i s t e r s have examined t h e a c t i v i t i e s o f t h e i r d e p a r t m e n t s to
i d e n t i f y t h e s a v i n g s w h i c h c a n be made, w h e t h e r b y i n c r e a s e d
e f f i c i e n c y o r b y t h e a b o l i t i o n or c u r t a i l m e n t o f f u n c t i o n s . A s a r e s u l t , we w i l l b e m a k i n g s a v i n g s r i g h t a c r o s s t h e C i v i l Service. •
The scope f o r t h i s v a r i e s between d e p a r t m e n t s .
At
one end o f t h e s c a l e , t h e D e p a r t m e n t o f T r a n s p o r t h a s i d e n t i f i e d s a v i n g s a m o u n t i n g t o 17%.
I n o t h e r Departments t h e scope i s
much s m a l l e r , b u t e v e n i n t h e f i e l d s o f l a w and o r d e r a n d defence,
t o w h i c h a s t h e House knows t h e Government a t t a c h e s a
particularly high priority,
some r e d u c t i o n s c a n b e made.
This review w i l l l e a d t o annual
savings i n C i v i l
Service
staff
c o s t s o f a b o u t £212m, most o f w h i c h w i l l b e a c h i e v e d b y t h e
CONFIDENTIAL
CONFIDENTIAL
f i n a n c i a l y e a r 1982-83.
The n e t e f f e c t on p u b l i c
expenditure
w i l l be r a t h e r l e s s because some o f t h e s a v i n g s w i l l come from p u t t i n g work o u t to t h e p r i v a t e s e c t o r , and t h i s work w i l l to be p a i d f o r . some 40,000.
I n terms' o f s t a f f numbers, t h e s a v i n g s
have
total
T h i s i s i n a d d i t i o n t o t h e s t e p s we have a l r e a d y
taken t o reduce
e x p e n d i t u r e on C i v i l S e r v i c e manpower t h i s
by t h e e q u i v a l e n t o f some 20,000 p o s t s . - 60,000 i n a l l .
year
The
Government's a i m w i l l be as f a r as p r a c t i c a b l e t o s e c u r e t h e r e d u c t i o n s by n a t u r a l wastage.
Cc^
wt-
<9
t
^ pT '
/v.
The s a v i n g s by D e p a r t m e n t s r e s u l t i n g from t h e p r e s e n t d e c i s i o n s
w i l l be shown i n g e n e r a l te.rms i n a t a b l e i n t h e O f f i c i a l
R e p o r t , and c o p i e s a r e a v a i l a b l e i n t h e Vote O f f i c e . Details
of t h e s a v i n g s a r e o f c o u r s e t h e r e s p o n s i b i l i t y o f t h e D e p a r t
mental M i n i s t e r s c o n c e r n e d .
What I am a n n o u n c i n g
t o d a y i s an i n t e r i m r e p o r t .
a r e those w h i c h i t h a s been p o s s i b l e t o i d e n t i f y
The s a v i n g s
reasonably
q u i c k l y by e x a m i n i n g
a series of options across the C i v i l
S e r v i c e as a whole.
The n e x t s t a g e w i l l be a number o f p o l i c y
s t u d i e s i n some Departments such as t h e Department o f H e a l t h
and S o c i a l S e c u r i t y , and o p e r a t i o n a l r e v i e w s a l r e a d y s e t i n
p r o g r e s s , p a r t i c u l a r l y i n t h e M i n i s t r y o f Defence and t h e
Department o f t h e Environment.
The s e a r c h f o r g r e a t e r - economy and e f f i c i e n c y w i l l o f c o u r s e
go on t h r o u g h o u t Ministers w i l l
t h e l i f e - t i m e o f t h i s P a r l i a m e n t . A l l
c o n t i n u e t o keep t h e a c t i v i t i e s o f t h e i r
ments under c l o s e s c r u t i n y and t h e House w i l l be k e p t
D e p a r t
informed
S i r Derek Rayner w i l l a s s i s t i n p a r t i c u l a r
from t i m e t o t i m e .
p r o j e c t s t o improve e f f i c i e n c y and v a l u e f o r money.
I w i l l not t r y t o p r e d i c t the f u t u r e s i z e o f the C i v i l S e r v i c e ,
but we have r e v e r s e d t h e major e x p a n s i o n w h i c h t o o k p l a c e u n d e r
t h e l a s t Government.
Our p r e d e c e s s o r s p l a n n e d f o r a C i v i l
S e r v i c e o f 748,000 by A p r i l n e x t y e a r . >
2
CONFIDENTIAL
The numbers now s t a n d
CONFIDENTIAL
a t 712,000. As a r e s u l t o f o u r s c r u t i n y , though t h e r e may be
s h o r t term f l u c t u a t i o n , t h e g e n e r a l t r e n d from now on w i l l
c o n t i n u e downwards.
The s i z e o f t h e C i v i l S e r v i c e must always depend upon t h e d u t i e s
.the Government o f t h e day" a s k s i t t o u n d e r t a k e .
The f a c t
that
t h i s Government s e t out t o i d e n t i f y a r e a s i n w h i c h t h e range o f
work can be narrowed and t o improve t h e e f f i c i e n c y w i t h w h i c h
the r e s t o f t h e work i s done i s no r e f l e c t i o n on t h e
conscientiousness
and a b i l i t y w i t h w h i c h c i v i l s e r v a n t s a t a l l
l e v e l s have c a r r i e d o u t t h e t a s k s t h e y have been g i v e n .
I am
g l a d t o pay t r i b u t e t o t h e s e q u a l i t i e s , as I am s u r e i s t h e
whole House.
3
CONFIDENTIAL
As I t o l d you on t h a t e l e p h o n e t h i s morning, Prime M i n i s t e r has seen a copy o f your M i n i s t e r ' s l e t t e r o f 28 November t o t h e Home S e c r e t a r y about Parliamenta.ry s t a t e m e n t on r e d u c t i o n s i n t h e s i z e the C i v i l S e r v i c e .
the
the
of
The Prime M i n i s t e r v/ould l i k e t h e s t a t e m e n t amended
t o ensure t h a t i t conveys the i d e a of a c o n t i n u o u s p r o c e s s
much e a r l i e r than i s t h e case w i t h t h e e x i s t i n g d r a f t .
She has s u g g e s t e d t h a t t h i s c o u l d b e s t be done i n t h e
second p a r a g r a p h o f t h e d r a f t , where t h e t e x t r e f e r s t o
the d e c i s i o n s t o be announced i n t h e autumn. In the
present t e x t , i t i s o n l y at paragraph 7 t h a t the t e x t f i r s
r e f e r s t o the i n t e r i m nature of the present r e p o r t .
In p a r a g r a p h 5, t h e Prime M i n i s t e r v/ould l i k e t o see
a r e f e r e n c e t o t h e volume o f a n n u a l v/astage.
I would be g r a t e f u l i f y o u c o u l d l e t me know how
y o u r M i n i s t e r proposes t o i n c o r p o r a t e t h e s e p o i n t s i n t h e
f i n a l text.
I am s e n d i n g c o p i e s o f t h i s l e t t e r t o t h e P r i v a t e
S e c r e t a r i e s t o members o f t h e C a b i n e t , i n c l u d i n g t h e
M i n i s t e r of T r a n s p o r t , and t o Murdo Maclean ( C h i e f Whip's
O f f i c e ) , and M a r t i n V i l e ( C a b i n e t O f f i c e ) .
M. A. PATTISON
G.E.T. Green, E s q . ,
C i v i l S e r v i c e Department.
10 D O W N I N G From the Private Secretary
STREET 5 December 1979
Thank you f o r your l e t t e r o f 5 December, w i t h w h i c h you
e n c l o s e d a r e v i s e d v e r s i o n o f t h e d r a f t statement on r e d u c t i o n s
i n t h e s i z e of t h e C i v i l S e r v i c e w h i c h t h e L o r d P r e s i d e n t
i n t e n d s t o make i n t h e L o r d s on 6 December, and which your
M i n i s t e r w i l l r e p e a t i n t h e Commons on t h e same day.
The Prime M i n i s t e r i s s a t i s f i e d t h a t t h e s t a t e m e n t now
p r o p e r l y r e f l e c t s t h e c o n t i n u o u s n a t u r e of t h e e x e r c i s e on
C i v i l S e r v i c e manpower and i s c o n t e n t w i t h your e x p l a n a t i o n
of t h e problems w i t h a s p e c i f i c r e f e r e n c e t o t h e volume o f a n n u a l
wastage.
The Prime M i n i s t e r has noted t h e r e f e r e n c e i n p a r a g r a p h 4
t o t h e net e f f e c t on p u b l i c e x p e n d i t u r e . She c o n s i d e r s t h a t
Mr. Channon w i l l need t o be armed w i t h a f i g u r e t h a t can be
quoted i n r e s p o n d i n g t o s u p p l e m e n t a r i e s i f not i n t h e s t a t e m e n t
itself.
S u b j e c t t o t h i s p o i n t , t h e Prime M i n i s t e r i s c o n t e n t w i t h the r e v i s e d d r a f t ; i t might be h e l p f u l f o r us t o have a word
about t h e p u b l i c e x p e n d i t u r e q u e s t i o n e a r l y tomorrow m o r n i n g .
I am s e n d i n g c o p i e s o f t h i s l e t t e r t o John S t e v e n s
( C h a n c e l l o r of t h e Duchy of L a n c a s t e r ' s O f f i c e ) , R i c h a r d P r e s c o t t
(Paymaster G e n e r a l ' s O f f i c e ) , Murdo MacLean ( C h i e f Whip's O f f i c e )
and M a r t i n V i l e ( C a b i n e t O f f i c e ) .
M. A. PATTISON
G.E.T. Green, E s q . ,
C i v i l S e r v i c e Department.