DEFRA TOPS LEAGUE TABLE OF WASTEFUL DEPARTMENTS - HUHNE

12.00.00am UTC (GMT +0000) Sun 28th Jan 2007

Information technology projects across government have overrun their initial budgets by more than £260 million over the last five years, according to official figures uncovered by the Liberal Democrats.

The Department of the Environment Food and Rural were the worst offenders with the highest proportional overruns, the official figures show.

Two departments - the Department of Trade and Industry and the Department of Education - had such poor management systems in place that they could not provide sufficient data.

Defra managed to run over budget by an average of 46 per cent with one scheme costing the department 72 per cent more than anticipated. The total overspend would have bought a new and fully-equipped general hospital - at about £250 million - with enough small change to buy carbon offsetting for ministerial jet flights.

Commenting, Liberal Democrat Shadow Environment Secretary, Chris Huhne MP said:

"This is chronic mismanagement on an epic scale. Any public company with this sort of track record would have sacked its board of directors.

"It is astonishing that the Government has managed to waste so much public money by repeatedly failing to manage these IT contracts properly, and even more astonishing that the Treasury has not read the riot act. Indeed, the Treasury itself overran by 7.3 per cent on its own projects.

"We are increasingly building up a picture of ministers who are only interested in spinning new policy announcements rather than delivering better outcomes.

"Having witnessed the Rural Payments Agency fiasco it comes as no surprise that Defra has lost control of its IT costs. It's a disgrace that Defra has an open chequebook policy for these projects but can't find the money to maintain properly flood defences or support British waterways.

"The Foreign Office has had to find an extra £35 million to make up for its shortfall. Bearing in mind Margaret Beckett's dismal record at Defra there is little cause for optimism at the FCO.

"It's is time for Government departments to get their house in order and learn to live within their means.

"David Miliband must explain how his department can justify axing vital services having happily dished out public money to private IT firms who can't stick to budget."