NATIONAL ENGINEERING LABORATORY (Hansard, 17 May 1989)

§ Secretary of State for Trade and Industry (Lord Young of Graffham)

The I have now received the report from Touche Ross Management Consultants, whom I appointed on 29th November 1988 to undertake a detailed study of the National Engineering Laboratory and to advise on the restructuring that is necessary as the way forward towards privatisation. I am arranging for copies of a summary of their report to be placed in the Libraries of both Houses and made available to staff at NEL.

Taking account of the report and the advice of the NEL Supervisory Board, I have concluded that the considerable skills of the laboratory are best exploited in a framework which provides greater opportunities for commercial drive. In my view this is best secured through privatisation. I have concluded that, in order to achieve a successful privatisation, restructuring and a new commercially oriented approach to business must first be established. This process could take some years.

To prepare for privatisation, I propose to follow the recommendation of Touche Ross and to transfer the laboratory out of the Civil Service into the ownership of a limited company, to be called the National Technology Centre Ltd., whose shares will be held initially by government, but which could later be sold when the business of the laboratory has been transformed. I shall bring forward the necessary legislation as soon as possible. The laboratory will play a central role within the National Technology Centre and within the East Kilbride site. The future of the East Kilbride site is also important, and I intend that it should be developed as a science and technology park which will be an attractive location for science-based companies.

1279WA