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SCOTTISH EXECUTIVE EFFICIENCY TECHNICAL NOTES: MARCH 2005: page 46

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SCOTTISH EXECUTIVE EFFICIENCY TECHNICAL NOTES: MARCH 2005

1. Portfolio/Number/Name:T/C5 - Highlands and Islands Airport (HIAL) Limited

2. Programme/Activity: Please include a short description

Savings will be made largely from travel and subsistence budgets and repairs and maintenance budgets which will present a challenge to HIAL to maintain operational efficiency. Performance and Financial management Review to be undertaken during 2005, which will include review of regulatory requirements and HQ costs.

3. Planned Savings

2005-06

2006-07

2007-08

Cash (m)

0.5

0.5

0.5

Time Releasing (m)

0

0

0

4. Accountable Officer for delivery

Eddie Frizzell

5. Project Manager

Ken Crawford

6. EGDG account manager

Iain Dewar

7. Quality Impact

Describe any impact on the quality of service delivery. Be specific and explain if the expectation is positive, negative or neutral.

The effect of these efficiency measures on the quality of service that customers receive will be neutral.

8. Dependencies

Explain if your savings are dependant on legislation or other structural changes.

These savings are not dependant on legislation or other structural changes.

9. Description of efficiency and actions to be taken

9.1 How will the saving be made? Be specific about number/size of contracts, staff, posts dates etc.

Savings will be made largely from reductions in travel and subsistence costs and repairs and maintenance budgets and from improved procurement of utilities etc.

9.2 What action is critically needed to secure delivery of this saving? Be specific, and name the key action managers if they are outwith your immediate management chain (e.g. in an NDPB.)

The HIAL Board has approved the revised budgetary priorities.

10. Impact on Staffing to achieve the efficiency gain

If there are to be any changes in staff numbers (at activity level) to achieve the efficiency gain, please indicate how many full time equivalents and how far you expect savings to be achieved by natural wastage (show additions as + and reductions as -).

2005- 06

2006- 07

2007- 08

+

-

Net

Explanation

N/A

11. Benefits

In general, the benefits of the Scottish Executive Efficiency Plan are the enhanced outputs from the resources Ministers have been able to allocate in SR04. But if there is a direct connection between this efficiency saving and the enhancement of a particular service please describe it here.

N/A

12. Gross/Net Cash Savings

12.1 Please set out the gross recurring saving and any offsetting recurring expenditure.

The gross recurring saving is 0.5 million by 2007-08. There is no offsetting expenditure associated with this saving.

12.2 Against what budget does this expenditure and saving fall?

Transport: Air Services in Scotland: HIAL Deficit and Capital Grant

12.3 Has this saving been built into your budget?

No

12.4 If so, what is the maximum allowable expenditure against the budget data, in each year, for that saving to be delivered?

N/A

12.5 If not, how do you propose to invest the additional cash back into public services?

The resource saving will be transferred to capital works, such as the upgrading of the terminal building at Benbecula.

12.6 What plans do you have to exceed the required saving? Explain by how much in each year.

None.

13. Time - release savings

13.1 Please explain any time-releasing savings indicated at question 3.

N/A

13.2 Please describe the method you plan to use to calculate the cash equivalent of those time release savings.

N/A

14. Measurement and Monitoring

14.1 How are you proposing to measure the expected efficiency benefits (e.g. in terms of costs, level of output or quality of service)?

The efficiency benefits will be measured by measuring expenditure on operating costs and expenditure on capital costs.

14.2 What monitoring & reporting procedures will be put in place to measure the efficiency savings (How often will progress towards the target be monitored? Who will have lead responsibility for reporting progress and what procedures will be in place?)

Progress will be monitored through monitoring HIAL monthly management accounts and annual accounts. These accounts will be reviewed quarterly and reported to the Board to ensure that HIAL is on course to deliver the efficiencies.

14.3 Monitoring Data: Sources, validation and risks

  • What data will be used to measure progress? Is all the required information quantifiable and readily available? If not what action will be taken to rectify this?

    Data will be taken from HIAL's operating costs and capital programme figures in management accounts.


  • What measures will be in place to validate the accuracy of the data? Who will take responsibility for this?

    HIAL's annual accounts are subject to Board scrutiny and will also be audited by external auditors.
  • Are there any issues or risks relating to how you plan to use the data? (e.g. accuracy, difficulties in collection)

    No.

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Page updated: Thursday, March 31, 2005