Efficiency Unit scrutiny of public sector research establishments : oral and written evidence / Science and Technology Select Committee.

  • Great Britain. Parliament. House of Commons. Select Committee on Science and Technology.
Date:
1994
Catalogue details

Licence: Open Government Licence

Credit: Efficiency Unit scrutiny of public sector research establishments : oral and written evidence / Science and Technology Select Committee. Source: Wellcome Collection.

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    —————————————————————————————————SSSESESESSSSSSSSSSSsSMFsi—Oef period has been completed, it would be inappropriate for me to comment at this time on the Scrutiny recommendations. However, you may find it helpful to keep up to date with progress on the DTI’s work in this area, and I am writing to you on that basis. The President of the Board of Trade announced on 14 April this year, following a review, his plans for three of the DTI’s laboratories. These include privatisation of the National Engineering Laloratory (NEL) and Laboratory of the Government Chemist (LGC) and contractorisation of the National Physical Labora- tory (NPL). The President made a subsequent announcement about the National Weights and Measures Laboratory which is to be retained as an executive agency within the DTI, on 21 July. While the DTI’s laboratories were included in the multi-departmental Scrutiny, the Scrutiny took account of the DTI’s review. The DTI’s review was in fact very much in line with the task set for the Scrutiny. The Scrutiny was commissioned to consider the future of civil and public sector research establishments in England, Scotland and Wales and to look at privatisation, rationalisation and different ownership options. The aim was to ensure government resources were spent on science rather than on administrative overheads. In announcing his decisions on the DTI laboratories, the President concluded that they would best be able to respond to future challenges by operating within the private sector. Recognising that each of the DTI’s laboratories was an important national resource, the review revealed that competition for public funds was intense and that the laboratories would need to continue their efforts to be more focused, more responsive to the demands of the market and more cost efficient. To broaden and commercialise the scope of their business, while maintaining their reputation for quality, integrity and impartiality, the DTI’s laboratories will be able to raise and use capital and develop and exploit markets more effectively without the constraints of operating within government. Plans are being developed to bring about the privatisation of NEL by means of a trade sale by November 1995. It is proposed that LGC will be privatised as a non-profit distributing company, or by trade sale if a suitable buyer comes forward who can demonstrate the requisite independence. In either case it is proposed that the transfer of staff and assets will be concluded by April 1996. Recommendation 24 in the Scrutiny Team’s Report referred to a Home Office review dealing, inter alia, with the possible merger of the Metropolitan Police Forensic Science Laboratory (MPFSL) with either the Forensic Science Service (a Home Office agency) or LGC. The DTI is keen to consider the possibility of a merger between MPFSL and LGC and to this end we are discussing the matter further with the Home Office. For NPL, it is proposed that private sector contractors be appointed to operate the laboratory by April 1995. Given the complexity of the tasks involved, the Department has appointed PA Consulting Group to assist in the implementation of the decisions on NEL, NPL and LGC. Do please let me know if you would like any more information on this subject. Memorandum from the University of Warwick The University welcomes the Scrutiny Report, and the possibility of greater privatisation of some research establishments. We wish to comment primarily on those recommendations which relate to University/ Institute links. Recommendation 3 Departments and research councils should routinely examine the potential for transferring PSREs to Universities (paragraph 3.11) Recommendation 4 PSREs should, within two years, develop effective formal links with Universities where these do not exist at present (paragraph 3.12). Recommendation 8 In their responses to this report, departments and research councils should publicly declare themselves open to approaches from private sector firms or Universities wishing to discuss the potential for taking on some or all of the activities of individual PSREs (paragraph 3.8). The University strongly supports these recommendations. There are clear benefits to be gained from closer institute/University links, providing the partners are chosen carefully: — as the Scrutiny Report recognises, there can be significant synergy between the research programmes, with appropriate transfer of, and co-operation between, staff, sharing of research facilities, etc.; — there can be considerable advantage in relation to teaching and research training. The University can help ensure a flow of younger research workers; the institute provides a different context within which training can be undertaken;