13 The new passport processing system has yet to achieve the performance targets set in the business case. While the partnership with Siemens is likely to continue, the Agency now faces a decision whether and when to roll-out the system, and the supporting process changes, to its remaining offices. In doing so, it will need to reach a view on whether it can deliver the volume of output required, within targets for processing time and at acceptable cost. The Agency will also need to be confident that it has assessed all the relevant risks and that its contingency plans will be sufficient to manage them. Temporary extra production capacity will be needed to cover for any capacity which is unavailable during the roll-out process. Recent advice from the Agency's consultants concluded that the system should be able to perform to the standards originally set for it, if a plan to define and develop process improvements is fully implemented. The Agency and Siemens are now considering a range of measures, including modifications to software and changes to clerical processes, to improve productivity. Nonetheless, the unit cost to the taxpayer of issuing a passport, which is reflected in the fee, is expected to rise to £14 during the remaining roll-out of the new system, compared to £12 in the Agency's business case, and to reduce thereafter to reflect the operation of a single system for passport processing and potential improvements in productivity.
14 In March 1999, the Government's White Paper "Modernising Government" (Cm 4310) set out proposals for making public services more responsive to the needs of citizens, including quick and helpful telephone services, better information on services, and doing everything reasonably possible to make public services available when needed, where there is demand. The Agency's performance in 1999 fell short of these goals. The Home Office and the Agency acknowledge the shortcomings and told us that they are seeking to redress the balance between the previous emphasis on unit cost and the importance of providing a service to meet legitimate public expectations. The Agency is now considering a number of measures including expanding the capacity of its telephone enquiry service and passport issuing service to cope with demand during peak periods; improving the information it makes available to the public through advertising and via the internet; and, possibly, making greater use of high street outlets such as The Post Office to undertake initial processing of applications. The Agency and the Home Office acknowledge that a more sophisticated approach to customer service is needed in the future. These additional measures are likely to add over £3 to the cost of producing each passport, bringing the unit cost to over £17 from 2000-01 onwards.
15 In normal circumstances, the Home Office expects the Agency to act along commercial lines without intervening in its day to day management, in much the same way as its other Next Steps agencies. However, at a time of crisis, a small agency may not necessarily have the capacity to deal on its own with the volume of telephone queries and correspondence generated, and the need for effective and extensive communication with the media. In addition, there may be a need for additional planning capacity, recruitment action and letting contracts quickly. In this case, the Agency was slow to seek assistance – a point recognised by both the Home Office and the Agency. The Home Office told us that it would be considering its relationship with the Agency as part of its quinquennial review of the Agency now underway.