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DfT cuts costs through better procurement

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BETTER procurement rather than job cuts is expected to deliver the major chunk of a £750M cost cutting programme, the Department for Transport (DfT) said this week.

It said the savings would be released for use on transport projects between 2005/6 and 2007/8.

The savings plan has been devised in response to demands by Chancellor Gordon Brown in his summer Comprehensive Spending Review (NCE 15 July).

Transport secretary Alistair Darling is pinning his hopes on the recent Highways Agency moves to streamline roads procurement, and on moves to transfer this expertise to local government.

He also expects to deliver savings through improved operation of London's Underground under the public private partnership with Metronet and Tubelines.

The DfT is to shed 200 staff, through a mixture of early retirement and natural wastage.

There will be no redundancies.

These jobs are likely to be mainly in the human resources and pensions divisions, rather than the officials directly involved with delivering transport policy.

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