Mr. Rob Wright:

Again, the Chairman asked me to comment on this report as it existed and although I can provide a view, it is vital for the committee to take a view. Much of the advice we gave on restructuring the public service renewal part of the Department has been dealt with by the Government in a way that is different from what is in the report, but it is important. That is resolved. Over the past four years there has been much initiative with the European Union on terms that affect the timing of budgets in a more coherent way and deal with that part of the report.

There has been important progress on everything else. Are we there yet? No, but progress has been made in the midst of this reorganisation on the number of professional economists and the strength of the Department's resources on the financial institution side. There has been some restructuring that deals with some of the management issues we have in mind. There is now a full-time human resource co-ordinator, which has been in place for several years. The Department is ahead of the rest of government in having a performance management regime in place that assesses vital issues such as how to manage people.

It asks if you are identifying those who are higher in capability and those who are challenged, and if you are dealing with both. The Department is ahead of the curve on that. The Department is not as far ahead as its own staff want it to be on performance management, but it is ahead of Government. Therefore, important progress has been made.

I would say the one change that is a harder change, and it is a cultural change - I see signs that I am encouraged by - is the more active formal engagement on policy advice to the Minister. That is a cultural change and that is probably one of the most important changes we have to see. I see progress there too, but that is one the committee-----