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 (NAO).

The NAO has discovered that on average, public bodies replace their IT equipment every five years, but research suggests it is more cost effective to replace equipment at around three years, as this results in reduced operating costs and increased resale value of the equipment.

"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 mean this issue is becoming more important," said the head of the NAO Sir John Bourn.

"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."

The report indicates that these public bodies would benefit greatly by following best commercial practice and disposing of equipment at three years.

However the NAO says that further investigation is required to understand more fully 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.

The report concludes that the central government bodies should conduct a joint analysis of how to make the most of their IT systems.

This should include looking into how departments and their staff use such equipment to make sure they have the best tools for the job, and to see 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.

As a result the NAO recommends that a public body should be formed to oversee the entire IT equipment disposal chain through regular audits and spot checks, enabling government to be sure that all third parties are acting legally, responsibly and ethically.