§ Mr. Nigel EvansTo ask the President of the Board of Trade if he will make a statement about the future of the National Physical Laboratory, the National Engineering Laboratory, the Warren Spring Laboratory, the Laboratory of the Government Chemist and the National Weights and Measures Laboratory.
§ Mr. HeseltineDuring the three years since becoming executive agencies, the DTI's five laboratories have made much progress towards becoming more commercial and customer-focused and more cost-conscious organisations. I am now undertaking a review, involving independent consultants, which will identify how best to build on this progress. It will complement the review of the Atomic Energy Authority which my hon. Friend the Minister for Energy announced on 1 April.
The four larger laboratories—though not the NWML—are already required to operate on a business footing, financing themselves from contracts secured at arm's length from fee-paying customers. Most of their business comes, and will continue to come, from Government Departments, including the DTI itself, the Department of the Environment, the Department of Transport, and others. They also win contracts from private sector customers.
These disciplines are bringing about a major change in the culture of these organisations, and the question on which consultants will be asked to advise is how this process can be carried further, and whether putting some or all of them into the private sector would enable them to provide a better service to their wide range of customers, in and out of Government. The consultants will also be asked to consider intermediate options, short of full privatisation, such as the franchising of facilities to private sector contractors, and the possible need for rationalisation between the five laboratories.
A number of consultancy firms have now been invited to submit proposals. The chosen firm or firms should be appointed early this month, and report later this year. I will report to the House on my conclusions.