Departmental Reorganisation (Hansard, 3 July 1992)

§ Mr. Heseltine

In a speech on 1 June, 1 announced that I would be reshaping some of the Department of Trade 759W and Industry on more sectoral lines; and in his statement to the House on 16 June—Official Report, columns 777–78 —my right hon. Friend the Chancellor of the Exchequer made it clear that I would announce details before the summer recess.

I intend to reorganise my Department so as to relate more closely to individual sectors of the industry. The reorganisation will include three main elements: the creation of a new industrial competitiveness division to see what lessons can be learnt from other leading industrialised countries and to help ensure that policies of all Government Departments take due account of the need to promote the competitiveness of British industry and commerce; the adoption of a sectoral approach to the industries for which the DTI is responsible by explicitly recognising the extent to which we already follow such an approach and establishing new divisions to cover the key sectors which arc not dealt with at present; assigning to all the sectoral divisions, both new and existing, an explicit role to sponsor their industries, not in an uncritical way but as a basis for an informed dialogue and a constructive partnership between Government and business.

The new structure will allow for the establishment of some new divisions, and the recasting of some previously existing divisions so as to establish a division dealing with industrial competitiveness, together with a range of sectoral divisions dealing with industries including chemicals and biotechnology, steel, metals and minerals, textiles and retailing, electronics and electrical engineering, mechanical engineering, vehicles, aerospace, and telecommunications and posts. In addition, there will, of course, remain other sector-orientated divisions, including the divisions previously belonging to the Department of Energy dealing with fuels, as well as divisions dealing with research and technology policy, the environment, and information and manufacturing technology. Although the DTI has a long-established programme of inward and outward secondment with industry, I am also making clear that the Department will be looking for further industrial secondees. I also expect to fill a small number of posts with staff drawn from the National Economic Development Office.

A reorganisation on these lines, with the relevant divisions having a clear remit to sponsor the industry with which they deal, will, I am convinced, be welcomed by industry and commerce.