Jim Hacker is on the radio, being interviewed by Ludovic Kennedy. His department, the Department for Administrative Affairs, is about to enjoy an expanded remit, with local government bureaucracy being added to its responsibilities. Kennedy puts it to Hacker that his department is more interested in increasing red tape than reducing it. The Minister responds that they have had to "take on more staff in order to reduce staff". He says that he is looking forward to the challenge, but is unable to give any detailed proposals.

The next day, Sir Humphrey Appleby is at lunch with the Cabinet Secretary, Sir Arnold Robinson. The latter remarks on Hacker's recent interview, in particular the fact that he regarded his new duties as a "challenge". Sir Arnold makes it clear to Sir Humphrey that he would have never given this task to the DAA if he thought the Minister was actually going to do anything about it, and would prefer it if the status quo is maintained. The reason is that efficiencies that are successfully enacted in local government usually rebound on Whitehall departments, which are then also forced to implement them. Sir Humphrey is fully seized of Sir Arnold's aims, but is advised — if things get tricky — to draw the Minister's attention to civil defence: the one area in which national government has little interest.

Hacker concludes a meeting in his office, and is approached by one of the participants, Dr Cartwright, an Under-Secretary who has become an expert in local government (and therefore shall rise no higher in the civil service). He proposes to the Minister that any future local authority projects must list their criteria for failure before they are given the go-ahead. Hacker is immediately interested and instructs Bernard, his Principal Private Secretary, to make this paper his top priority reading for the weekend. They are joined by Sir Humphrey, who is apprised of Hacker's new plan and is completely startled, labelling it "dangerous nonsense". Hacker impresses upon his Permanent Secretary the urgent need to bring forward proposals. Sir Humphrey falls back on Sir Arnold's advice and tells his minister that civil defence is the one area of local government which would be a "vote winner". These words have the desired effect and Hacker is curious. Sir Humphrey convinces him that there is a real public interest and mentions in passing that Ludovic Kennedy is in the process of preparing a documentary on the subject. In the meantime, the London borough of Thames Marsh spends less on civil defence than any other authority: he suggests a ministerial visit. Bernard points out that the particular borough is run by Ben Stanley — a firebrand who is subject to frequent censure by the press. Hacker asks Bernard to ensure that there be plenty of journalists in attendance for his trip.

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