§ Mr. Merchantasked the Secretary of State for the Environment whether he is now able to make a statement 808W about the guidelines for Ordnance Survey commercial activities as foreseen in his answer of 24 January, Official Report, columns 475–6.
§ Mr. WaldegraveIt is my right hon. Friend's intention that the Ordnance Survey should continue to operate efficiently and cost effectively and to minimise its call on public funds. To achieve this it will be encouraged to engage in commercial activities and to compete in the market place with private sector firms. It is important, therefore, to meet legitimate concern that competition between OS and private firms is fair. Provided there is no unfair cross subsidy between Exchequer supported work and commercial activities, the increased competition, yielding greater choice for the consumer and a reduced burden on the taxpayer, is healthy and in line with established Government policy, which derives from the 1973 Janes committee recommendation that OS should be given greater commercial freedom to compete, greater responsibility to fix certain prices, and the ability to take a full range of commercial decisions, reinforced by the recommendations of the Ordnance Survey Review Committee (1979). This policy was endosed by the decisions announced by the then Secretaries of State for the Environment in 1977 and 1981. The OS Advisory Board, in its report on the future status of Ordnance Survey (1983), supported this policy and made recommendations aimed at giving OS a clear remit to be an efficient and businesslike operation. The Government accepted this report in January and announced their intention to seek external professional advice on the basis used for the preparation of the OS annual trading accounts. This is in hand. My right hon. Friend also announced that the Government would establish and publish formal guidelines for OS commercial activities, and copies of these have been placed in the Library. These guidelines will be reviewed by Ministers from time to time and any changes will be included in the Ordnance Survey annual plan.