Research Laboratory (Hansard, 30 March 1994)

§ Mr. Macgregor

Following a review I commissioned from consultants, KPMG Peat Marwick, I have decided that the transport research laboratory should transfer to the private sector.

I have considered the consultants' report very carefully. I have also had discussions with the TRL trade unions. The consultants concluded that retention of TRL in the public sector would risk the laboratory being unable to respond adequately to changes in its market and so lead to a cycle of cumulative decline. The likelihood is therefore that TRL would be unable to continue to offer its current breadth of research. The consultants' analysis confirmed that privatisation was both feasible and desirable in allowing the laboratory to compete more effectively across a wider market than is currently available to it.

I am satisfied that privatisation will provide the best opportunity for TRL's future progress. In setting objectives for the sale I shall have regard to a number of requirements, including to the need to secure the 751W Government's continuing requirement for high quality, independent transport research at good value for money, and the needs of staff working in the laboratory.

I shall announce details of the form of sale in due course. My current aim is to provide for a competitive sale, attracting bids for the whole of the TRL business from a wide range of possible purchasers. I hope privatisation can be achieved during 1995–96.