Welsh Government could save millions through better asset management – says National Assembly committee

23 August 2013

Millions of pounds of public money could be saved if the Welsh Government tightened up its management of its own estate – says a National Assembly for Wales committee.

The Finance Committee found that, rather than a single coherent approach to the way it manages its properties around Wales, government departments had different approaches which were largely independent of each other.

The practice is in sharp contrast to the Welsh Government’s own requirement of local authorities which must formulate distinct strategies which identify savings and best practice opportunities.

The Committee wants to see a unified, coherent approach across the whole organisation.

The Welsh Government publishes an annual report, ‘State of the Estate’, which contains information on the performance of its administrative offices, which currently numbers 41. But the Committee wanted to see more detail in this report, including data about other assets including industrial estates and business parks.

The Committee also found a lack of consistent data across different organisations including Local Health Boards, local authorities and fire and rescue services. This made it difficult to accurately monitor performance.

“Changing economic conditions have brought new interest to the unheralded world of asset management,” said Jocelyn Davies AM, Chair of the Finance Committee.

“At its simplest, efficient management of assets saves money. The less you have to spend on accommodation, the more there is to go in to frontline services. There are many examples of good work going on in Welsh Government and around Wales, but more could still be done to unlock valuable resources.

“Inside the Welsh Government there is a confusing sub-division of assets where individual ministerial fiefdoms take precedence over an integrated whole.

“The Committee believes that a step change in the way asset management is handled – in particular through greater collaboration across Welsh Government departments, and in the Welsh Public Sector as a whole - will unlock precious resources to protect frontline services and I would urge the Welsh Government to take on board our findings.”

The Committee makes 14 recommendations in its report including:

• That the Welsh Government draws up an Asset Management Plan for its entire administrative estate, (or revises the content of the State of the Estates Report) with appropriate targets, and reports regularly on performance against those targets;

• That the Welsh Government draws up an overarching Asset Management Strategy which covers ALL the assets it holds, not just its administrative estate.

• That the Welsh Government reports back annually on how it is working with senior leaders across the public sector to highlight the importance and benefits that can be derived from sound asset management, and maintaining up to date records and plans.

More information about the asset management inquiry can be found here.