Press Release - Improving the disposal of public sector
Information, Communication and Technology equipment
31 July 2007
The public sector should plan more carefully how it
disposes of its growing volume of personal computers and associated
equipment, according to a report out today by the National Audit
Office. The efficient, legal and socially responsible disposal of
such equipment is an increasingly important issue for the public
sector.
Many public bodies have limited information about the volume and
condition of the equipment they dispose of. On average, public
bodies replace their ICT equipment at around five years; commercial
practice indicates that the optimal age to replace such equipment
is more often at around three years of age, resulting in reduced
operating costs and increased resale value for the equipment.
Today’s report indicates that public bodies could potentially
generate significant savings, through reduced operating costs and
improved resale value, by following best commercial practice and
disposing of equipment at three years. Further work is required,
however, to more fully understand the costs and benefits involved
in changing the way in which public bodies manage their ICT
equipment and identify the optimal time to refresh their
equipment.
Public bodies, however, need to consider more than the immediate
financial value when developing their ICT equipment procurement and
disposal strategy. With growing public concern about the
environment, the report concludes that beyond consideration of
immediate value there needs to be greater joined up thinking and
leadership at the centre of Government about how best to secure
value in the longer term. This includes the need to understand
better the wider environmental costs and benefits from the
acquisition, use and ultimate disposal of ICT equipment.
The NAO recommends that the public bodies at the centre of
government with responsibilities in this area (the Office of
Government Commerce, the Department for Environment, Food and Rural
Affairs, the Department of Trade and Industry and the Environment
Agency), should conduct a joint analysis of how to maximize the
‘whole life value’ of public sector ICT equipment. This should
consider:
- opportunities to reduce the amount of ICT equipment currently
being purchased, through a better understanding of how
organisations and their staff use such equipment;
- the wider environmental costs and benefits of moving to an
earlier disposal age for ICT equipment;
- whether more second hand and re-useable ICT equipment could be
made available to other sectors (such as schools) through
discounted resale or charitable donation; and
- how the public sector can make better use of its purchasing
power to bring about environmentally beneficial changes in the
design and manufacture of ICT equipment.
In addition to value for money, public bodies also need to think
about a range of other issues when disposing of ICT equipment.
These include vulnerability to legal action, and loss of reputation
and public trust if they fail to act properly or fail to maintain
adequate oversight of the third parties they employ to resell or
dispose of ICT equipment. These risks apply to three areas:
environmental protection; data protection and security; and
electrical safety. The NAO found that, while there are some areas
of good practice, the majority of public bodies have little
oversight of their ICT equipment disposal arrangements and
therefore simply do not know how well these risks are being
managed.
As a result the NAO recommends that public bodies should put in
place the means to ensure they have oversight of their entire ICT
equipment disposal chain (for example through regular audits and
spot checks), so they are confident that all third parties are
acting legally, responsibly and ethically.
Head of the NAO Sir John Bourn said today:
“Government has so far not given enough thought to how
it disposes of its computers and related equipment. Growing
concerns about the environment and the increasing volumes of
equipment means this issue is becoming more important.
“Government needs to understand better the trade-offs
between securing better immediate financial value and the wider
environmental costs and benefits associated with the disposal of
ICT equipment. It should then use this knowledge to develop
appropriate procurement and disposal strategies.”
Notes for Editors
- ICT equipment includes: computer units (PCs); monitors; laptop
computers; servers; printers; photocopiers; fax machines; and
telephone equipment.
- The volume of public ICT equipment that will ultimately need to
be disposed of is growing. The expenditure on public sector ICT
equipment is forecast to increase from a baseline of £2.7 billion
in 2005-06 to £4.1 billion by 2010-11 (an increase in volume from
1.7 to 2.6 million units).
- Disposal can involve: re-sale; employee purchase programmes;
charitable donations; refurbishment; recycling; and landfill.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office which employs some 850 staff. He
and the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 42/07
All enquiries to Donna Watson, NAO Press Office: Tel: 020 7798
7038
Mobile: 07917 555 388