§ Mr. Teddy Taylorasked the Chancellor of the Exchequer (1) what progress has been made in agreeing performance indicators for nationalised industries;
(2) if he is satisfied with the arrangements for monitoring the performance of nationalised industries.
§ Mr. Peter ReesArrangements for monitoring the performance of nationalised industries are now well established. They include medium term financial targets, performance aims, and annual external financing limits as well as periodic examinations by the MMC and other external consultants. The control framework applied to nationalised industries is intended to impose disciplines akin to those which are commonplace in the private sector. We believe that the best way to ensure continuing improvement in performance in the long-term is to expose the industries to the effects of market forces. Our privatisation policy is directed to this end.
Performance aims are currently in place for over half the nationalised industries, and discussions are continuing in order to maintain and improve this coverage. The great majority also publish their own performance indicators in their annual reports and we continue to encourage the industries to make such information regularly available.