Dead fish Department of Health has lost sight of the "public" in "public service" – Sir David Nicholson KCB CBE

Key Stage 3 is that phase in the education of our children which takes place in England between the ages of 11 and 14. The syllabus is demanding and includes a course on management consultancy. No mere ivory tower training divorced from the real world, students are expected to give policy advice to Whitehall departments. Advice on procurement, for example, much needed by the Department of Health.

All procurement should be centralised, said the team from Stretchford Middle School, so that stakeholders in the NHS all pay the same price and, with the economies of scale available to the Department, currently spending about £120 billion of our money every year, that price should be a minimum, offering the best value for public money.

Similar advice was given to the Civil Service by Sir Philip Green, of course, on one of his rare visits from Monaco. Philip Green's efficiency purge recommends more centralisation, ran the headline in the Guardian, before going on to spell it out:

The government has little control over the money its own civil servants spend and is wasting billions every year by failing to negotiate the best contracts for phones, IT equipment and rent, according to the Topshop boss Sir Philip Green, who was brought in by ministers to assess efficiency in Whitehall ... The report identifies massive variation in procurement with one department paying £73 for a box of paper and another paying £8. The most paid for printer cartridges is £398 and the least is £86 ...

As all management consultants know, you hand in your report full of tightly argued recommendations, you go back to Monaco (or Stretchford) and what does the stupid client do?

Something stupid.

Like ignore your recommendations.

Generally true, that is not the case at the NHS. Not by a long chalk. Sir David Nicholson KCB CBE, Chief Executive, runs a tight ship. The National Programme for IT (NPfIT) divides England into five regions, the contracts are held by just two organisations, (CSC-3 and BT-2), and they all come together at just one central point, CfH, Connecting for Health, as recommended.

And now, a cautionary tale.

Some poor deluded soul at the Whittington Health NHS Trust went out on his or her own and bought an electronic patient records system (EPR). They could have got it from BT, who have the NPfIT contracts for London and for the South of England. But, no, poor benighted fools that they are, lambs to the slaughter, they set out to do the procurement themselves.

BT's EPR is an American package called Cerner Millennium. In London, Cerner Millennium costs £31 million on average. And in the South of England, health trusts pay an average of £36 million for the same thing. Almost the same price. Only £5 million different.

And, wantonly ignoring all the added value of Whitehall's magisterial assistance acting energetically exclusively in the public interest, what did the naïve neophytes of Whittington Health pay?

£7.1 million.

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Hat tip: as so often, Tony Collins.

What the students learn at Key Stage 4 is that all the normal rules of logic, arithmetic, business and economics that govern rational open markets break down in Whitehall.

These rules melt in the heat of the close personal bonds between the Department and its suppliers. The Department of Health's friendship with BT and CSC is not a unique example. We have already seen a similar  case of producer capture at the UK Border Agency where Rob Whiteman, the Chief Executive, would rather not mention Atos's name in connection with the immigration computer system breaking down for a month.

These relationships are intense. Too intense to accommodate any other loyalties. Other loyalties such as public service.

Dead fish Department of Health has lost sight of the "public" in "public service" – Sir David Nicholson KCB CBE

Key Stage 3 is that phase in the education of our children which takes place in England between the ages of 11 and 14. The syllabus is demanding and includes a course on management consultancy. No mere ivory tower training divorced from the real world, students are expected to give policy advice to Whitehall departments. Advice on procurement, for example, much needed by the Department of Health.

The other Golden Jubilee – 60 years of Whitehall's disgraceful public administration, "administrative lawlessness"

In The English Constitution (1867) Walter Bagehot famously wrote:

No one can approach to an understanding of the English institutions, or of others which, being the growth of many centuries, exercise a wide sway over mixed populations, unless he divide them into two classes. In such constitutions there are two parts (not indeed separable with microscopic accuracy, for the genius of great affairs abhors nicety of division) first, those which excite and preserve the reverence of the population — the dignified parts, if I may so call them; and next, the efficient parts — those by which it, in fact, works and rules.

We have all just had a pleasant four days here in the UK to reflect on and to observe the success of the dignified parts.

The Constitution doesn't come with guarantees but, since 1936 when Edward VIII mercifully got rid of himself, we seem to have enjoyed dignified parts of the Constitution which live up to their name.

Now the four days are over and it's back to the efficient parts, which don't.

In his book The Socialist Case Douglas Jay wrote:

Housewives as a whole cannot be trusted to buy all the right things, where nutrition and health are concerned. This is really no more than an extension of the principle according to which the housewife herself would not trust a child of four to select the week's purchases. For in the case of nutrition and health just as in education, the gentlemen of Whitehall really do know better what is good for the people than the people know themselves.

That was in 1937, 75 years ago, and things have changed since then – no civilised man today believes that women are inferior and no four year-old can still subscribe to Lord Jay’s Doctrine of the Infallibility of Whitehall.

In 1952 Professor GW Keeton published his book The Passing of Parliament. Keeton was Dean of the Faculty of Laws at University College, London. He debunks The Socialist Case and points to the danger of the Executive moving beyond the reach of either Parliament or the Common Law:

... Very far from the Common Law replacing administrative tribunals, more and more are being created outside the Common Law year by year, and some of the cases discussed earlier in this book will show how, in spite of obvious willingness, the courts have failed to hold back the onward rush of administrative lawlessness.

That was 60 years ago. Keeton’s question then was, in summary, what was the point of going through all the suffering of the Civil War and of establishing the supremacy of Parliament in the 1689 Bill of Rights if we end up with an Executive behaving for all the world like some latter-day monarch whimsically exercising his or her prerogatives?

In those same 60 years, while the dignified parts of the Constitution have given the definitive lesson in public service, too often Whitehall has continued arrogantly to ignore the interests of the public it is meant to serve while it makes one defective decision after another, inefficient and accountable to no-one.

We have just celebrated two Golden Jubilees. One of them is Whitehall's 60 years of "administrative lawlessness".

The other Golden Jubilee – 60 years of Whitehall's disgraceful public administration, "administrative lawlessness"

In The English Constitution (1867) Walter Bagehot famously wrote:

No one can approach to an understanding of the English institutions, or of others which, being the growth of many centuries, exercise a wide sway over mixed populations, unless he divide them into two classes. In such constitutions there are two parts (not indeed separable with microscopic accuracy, for the genius of great affairs abhors nicety of division) first, those which excite and preserve the reverence of the population — the dignified parts, if I may so call them; and next, the efficient parts — those by which it, in fact, works and rules.

We have all just had a pleasant four days here in the UK to reflect on and to observe the success of the dignified parts.

The Constitution doesn't come with guarantees but, since 1936 when Edward VIII mercifully got rid of himself, we seem to have enjoyed dignified parts of the Constitution which live up to their name.

Now the four days are over and it's back to the efficient parts, which don't.

Dead fish Home Office has lost sight of the "public" in "public service" – Rob Whiteman

Thanks to Anna Leach writing in The Register magazine, the following astonishing interchange at a Home Affairs Committee evidence session (15 May 2012) is brought to everyone's attention. The Chair of the Committee is Rt Hon Keith Vaz MP and Rob Whiteman is Chief Executive of the UK Border Agency, part of the Home Office:

Q151 Chair: ... over the issue of your computer system that crashed at Lunar house. Hundreds of people were turned away, and we hear that some were in tears at the fact that the system did not work. What went wrong? Have we got compensation from the IT company? Will it happen again, and have we rearranged all the appointments? Rob Whiteman: We contacted people over the bank holiday weekend and rearranged appointments. Around 500 appointments that were cancelled were rearranged. The issues around IT are incredibly frustrating for my staff, as well as for our customers. When I meet staff, it is a constant frustration that systems do not work all the time and that some of the resilience issues do not conform to common standards. In terms of morale and other issues, it is absolutely vital that we get to the heart of these IT problems. They are complex, yes, but- Q152 Chair: Yes, but we do not want to go into that now. Do we know why it broke down? Rob Whiteman: We do know why it broke down. It was an error on the network that affected the way appointments were queued from the system, and therefore they could not travel properly around the network. It was an IT failure, but, to answer your question, I have discussed this several times with the Chief Executive of the IT company that is the primary IT provider. Q153 Chair: What is the company? Rob Whiteman: I would rather not say. Q154 Chair: I am sorry, Mr Whiteman; this is a Select Committee of the House- Rob Whiteman: It is Atos. Q155 Chair: There is no need to be secret with us; we will find out. It is public money. It is not coming out of your pocket. The taxpayer is paying. What is the name of the company? Rob Whiteman: Atos. Q156 Chair: And what was his explanation as to why it broke down? Rob Whiteman: The reason I was reluctant, Chairman, is that we have a contract with Atos. It is trying its best to resolve the issues, but obviously we are being a demanding client and saying that performance is not good enough. Q157 Chair: As you should be. Rob Whiteman: I would not want to cast aspersions on the effort that it is making. It has put an additional team in to try to analyse the problem, and I receive daily and weekly reports from them. The point I would make is that in terms of UKBA improving over the next couple of years ...

The first reaction of a senior civil servant like Mr Whiteman is meant to be in favour of the public. That's what the public service ethos is. But when Mr Whiteman is asked to name the contractor responsible for the failure of a major IT system his first reaction is "I would rather not say".

His first reaction is to try to hide information. From Parliament and from the public.

His first reaction is in favour of the producer. "I would rather not say". This is producer capture.

The relationship between the Home Office and its suppliers in this case and others is pathological. Mr Whiteman's posture is craven. He isn't meant to be beholden to his suppliers. That's the wrong way round. Instead of serving the public, he finds himself serving UKBA's consultants and contractors. Which leaves the public paying and unserved.

Dead fish Home Office has lost sight of the "public" in "public service" – Rob Whiteman

Thanks to Anna Leach writing in The Register magazine, the following astonishing interchange at a Home Affairs Committee evidence session (15 May 2012) is brought to everyone's attention. The Chair of the Committee is Rt Hon Keith Vaz MP and Rob Whiteman is Chief Executive of the UK Border Agency, part of the Home Office:

Q151 Chair: ... over the issue of your computer system that crashed at Lunar house. Hundreds of people were turned away, and we hear that some were in tears at the fact that the system did not work. What went wrong? Have we got compensation from the IT company? Will it happen again, and have we rearranged all the appointments? Rob Whiteman: We contacted people over the bank holiday weekend and rearranged appointments. Around 500 appointments that were cancelled were rearranged. The issues around IT are incredibly frustrating for my staff, as well as for our customers. When I meet staff, it is a constant frustration that systems do not work all the time and that some of the resilience issues do not conform to common standards. In terms of morale and other issues, it is absolutely vital that we get to the heart of these IT problems. They are complex, yes, but- Q152 Chair: Yes, but we do not want to go into that now. Do we know why it broke down? Rob Whiteman: We do know why it broke down. It was an error on the network that affected the way appointments were queued from the system, and therefore they could not travel properly around the network. It was an IT failure, but, to answer your question, I have discussed this several times with the Chief Executive of the IT company that is the primary IT provider. Q153 Chair: What is the company? Rob Whiteman: I would rather not say. Q154 Chair: I am sorry, Mr Whiteman; this is a Select Committee of the House- Rob Whiteman: It is Atos. Q155 Chair: There is no need to be secret with us; we will find out. It is public money. It is not coming out of your pocket. The taxpayer is paying. What is the name of the company? Rob Whiteman: Atos. Q156 Chair: And what was his explanation as to why it broke down? Rob Whiteman: The reason I was reluctant, Chairman, is that we have a contract with Atos. It is trying its best to resolve the issues, but obviously we are being a demanding client and saying that performance is not good enough. Q157 Chair: As you should be. Rob Whiteman: I would not want to cast aspersions on the effort that it is making. It has put an additional team in to try to analyse the problem, and I receive daily and weekly reports from them. The point I would make is that in terms of UKBA improving over the next couple of years ...

The first reaction of a senior civil servant like Mr Whiteman is meant to be in favour of the public. That's what the public service ethos is. But when Mr Whiteman is asked to name the contractor responsible for the failure of a major IT system his first reaction is "I would rather not say".

His first reaction is to try to hide information. From Parliament and from the public.

His first reaction is in favour of the producer. "I would rather not say". This is producer capture.

The relationship between the Home Office and its suppliers in this case and others is pathological. Mr Whiteman's posture is craven. He isn't meant to be beholden to his suppliers. That's the wrong way round. Instead of serving the public, he finds himself serving UKBA's consultants and contractors. Which leaves the public paying and unserved.

Some food for the thoughts of Jon Ungoed-Thomas and Philip Johnston – IdA/DWP

You weren't invited to Ovum's Industry Congress on 24 May 2011, were you, so you didn't hear Phil Pavitt's talk on the "frictionless services" that he says the public is demanding from HMRC.

Still, you can read about it in Computer World UK, where you will discover that Phil is the Chief Information Officer (CIO, i.e. what we used to call the "DP Manager") at HMRC and he says frictionless services require identity assurance (IdA).

He may be right about that, after all we don't know what a frictionless service is, but he must be wrong when he says: "We don't currently have ID authentication in UK government".

That's just not true. Some of us small businesses have been submitting our VAT returns online using the UK Government Gateway every three months for several years now and that requires ID authentication by the UK government. And millions of people use HMRC's self-assessment website for income tax, again via the Government Gateway.

Why does Phil make this false statement?

Because no-one in Whitehall likes the Government Gateway. It doesn't look anything like the front end of Amazon or eBay or Facebook or Google. They want the Government Gateway to go away, it's old and ugly and not the sort of accessory a hip young CIO wants to be seen dead wearing. It cost millions. It works. It seems to be secure. But it's got to go.

What will the IdA replacement look like? Not long to wait to find out now, says Phil, "in March of this year the Department for Work and Pensions (DWP) revealed plans that will see it be the first central government department to roll out identity assurance services, in a project that is set to cost £25 million".

£25 million? What's the betting that there's a 1 in front of that by the time the National Audit Office get to take a look? If we're lucky. Otherwise a 4. While even Oxfam won't want the old Government Gateway, already paid for, years of successful use behind it, but pensioned off in its prime.

What do we foresee? All together now – friction!

Some food for the thoughts of Jon Ungoed-Thomas and Philip Johnston – IdA/DWP

You weren't invited to Ovum's Industry Congress on 24 May 2011, were you, so you didn't hear Phil Pavitt's talk on the "frictionless services" that he says the public is demanding from HMRC.

Still, you can read about it in Computer World UK, where you will discover that Phil is the Chief Information Officer (CIO, i.e. what we used to call the "DP Manager") at HMRC and he says frictionless services require identity assurance (IdA).

He may be right about that, after all we don't know what a frictionless service is, but he must be wrong when he says: "We don't currently have ID authentication in UK government".

That's just not true. Some of us small businesses have been submitting our VAT returns online using the UK Government Gateway every three months for several years now and that requires ID authentication by the UK government. And millions of people use HMRC's self-assessment website for income tax, again via the Government Gateway.

Why does Phil make this false statement?

Because no-one in Whitehall likes the Government Gateway. It doesn't look anything like the front end of Amazon or eBay or Facebook or Google. They want the Government Gateway to go away, it's old and ugly and not the sort of accessory a hip young CIO wants to be seen dead wearing. It cost millions. It works. It seems to be secure. But it's got to go.

What will the IdA replacement look like? Not long to wait to find out now, says Phil, "in March of this year the Department for Work and Pensions (DWP) revealed plans that will see it be the first central government department to roll out identity assurance services, in a project that is set to cost £25 million".

£25 million? What's the betting that there's a 1 in front of that by the time the National Audit Office get to take a look? If we're lucky. Otherwise a 4. While even Oxfam won't want the old Government Gateway, already paid for, years of successful use behind it, but pensioned off in its prime.

What do we foresee? All together now – friction!

Some food for the thoughts of Jon Ungoed-Thomas and Philip Johnston – IdA/GDS

Those chaps in the Government Digital Service (GDS) get about a bit. California. Estonia. And now the White House.

GDS's job is to do Martha Lane Fox's bidding and make public services digital by default. In order to achieve that, they need to deliver an identity assurance service (IdA) and they were in Washington "to share, learn and collaborate with some of the key individuals and organisations in the US wrestling with the challenges of identity in cyberspace" including Senator Barbara Mikulski.

The encounter between these wrestlers "focused on the economic necessity of creating an ecosystem of trust both for individual users of the internet, who are overwhelmed by usernames and passwords, and for businesses where the increasing cost of fraud is offsetting the efficiency benefits from digital channels".

The notion that Whitehall could create an ecosystem of trust needs to be compared with the markets they have created to date, e.g. PFI.

Far from being overwhelmed by usernames and passwords, individuals worldwide appear to be using the web more and more. Of course what GDS are offering is yet more usernames and passwords. But with this difference. Theirs will be the only usernames and passwords we have to remember. They will act as gateways to all the other services we use. We will become entirely dependent on GDS and its various unicorn-hustler agents (Facebook, Google, ..., Mydex) to conduct any transactions with anyone. Can they be trusted in this rôle?

And the cost of fraud appears to be shrinking, not increasing. The only cloud on the horizon is DWP's Universal Credit scheme which, if it follows the government's independent learning accounts and tax credits, promises to be the locus of a fraud feeding frenzy.

But apart from that – three false propositions in one sentence, a record? – after a long bout, there was one result: "the Senator made it clear that volunteers are needed if the voluntary approach in the US is to be successful".

Gluttons for punishment, our GDS delegates went on from the White House to OIX, the Open Identity Exchange, where "there was great interest in what the UK Identity Assurance Programme is doing and an offer from OIX to help us achieve our goals – which we readily accepted".

Hands up everyone who remembers voting to have their identity traded on a US exchange?

Some food for the thoughts of Jon Ungoed-Thomas and Philip Johnston – IdA/GDS

Those chaps in the Government Digital Service (GDS) get about a bit. California. Estonia. And now the White House.

GDS's job is to do Martha Lane Fox's bidding and make public services digital by default. In order to achieve that, they need to deliver an identity assurance service (IdA) and they were in Washington "to share, learn and collaborate with some of the key individuals and organisations in the US wrestling with the challenges of identity in cyberspace" including Senator Barbara Mikulski.

The encounter between these wrestlers "focused on the economic necessity of creating an ecosystem of trust both for individual users of the internet, who are overwhelmed by usernames and passwords, and for businesses where the increasing cost of fraud is offsetting the efficiency benefits from digital channels".

The notion that Whitehall could create an ecosystem of trust needs to be compared with the markets they have created to date, e.g. PFI.

Far from being overwhelmed by usernames and passwords, individuals worldwide appear to be using the web more and more. Of course what GDS are offering is yet more usernames and passwords. But with this difference. Theirs will be the only usernames and passwords we have to remember. They will act as gateways to all the other services we use. We will become entirely dependent on GDS and its various unicorn-hustler agents (Facebook, Google, ..., Mydex) to conduct any transactions with anyone. Can they be trusted in this rôle?

And the cost of fraud appears to be shrinking, not increasing. The only cloud on the horizon is DWP's Universal Credit scheme which, if it follows the government's independent learning accounts and tax credits, promises to be the locus of a fraud feeding frenzy.

But apart from that – three false propositions in one sentence, a record? – after a long bout, there was one result: "the Senator made it clear that volunteers are needed if the voluntary approach in the US is to be successful".

Gluttons for punishment, our GDS delegates went on from the White House to OIX, the Open Identity Exchange, where "there was great interest in what the UK Identity Assurance Programme is doing and an offer from OIX to help us achieve our goals – which we readily accepted".

Hands up everyone who remembers voting to have their identity traded on a US exchange?