United Kingdom Hydrographic Office (Hansard, 12 June 2002)

§ Dr. Moonie

I am pleased to announce today the outcome of the first stage of the Quinquennial Review of the United Kingdom Hydrographic Office (UKHO).

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Phase 1 of the review, announced on 9 May 2001, was headed by Admiral Sir Jonathon Band, then Deputy CINCFleet. A steering group directed the work of the review team. It had an independent chairperson and comprised representatives of the Royal Navy, the UKHO, the Maritime and Coastguard Agency, the Meteorological Office, HM Treasury, Cabinet Office and the Ministry of Defence's business improvement team.

The UKHO was established as a Defence support agency of the MOD in 1990, and has operated as a Trading Fund since 1996.

Evidence was taken from a wide range of stakeholders and customers, including the Royal Navy, commercial customers, other Government Departments, port authorities and other hydrographic offices, as well as from staff.

Phase 1 of the review recommends that the UKHO should seek to maintain its position as the leading hydrographic office internationally, and should focus on meeting UK defence and Safety of Life at Sea (SOLAS) obligations. It should continue as a trading fund for the immediate future, but its future status needs to ensure that it is best placed to maintain its self-financing structure in the digital era. While the strong national interest of the UKHO's work is deemed consistent with continued Government ownership and responsibility, the UKHO is encouraged to seek partnerships with the private sector to help it to better exploit both current and new wider markets.

I have accepted the Phase 1 report, in particular the recommendation that the UKHO should aim in the medium term to convert to a wholly owned, Government-owned, company if certain conditions relating to its future role in the digital era are met. Accordingly, I have asked the chief executive to report to the Hydrographic Office Ministerial Advisory Board in two years time, to allow the board to review progress towards viability as a Government-owned company in the digital era, covering both income and cost base, and the protection of data supply. I have placed copies of a summary of the report in the Library of the House.

Phase 2 of the Quinquennial Review will cover the implementation of the recommendations of Phase 1, and review efficiency measures. It will also cover the strategy for addressing the requirements of other Government Departments, and governance and scrutiny issues.