DoT EXECUTIVE AGENCIES (Hansard, 27 May 1993)

§ Viscount Goschen

The Government's plans are as follows:

(a) DVOIT: preparations for the privatisation of the agency are proceeding to timetable, with the aim of completing the sale by the end of the year.
(b) The Vehicle Inspectorate: the consultation document issued last September said that standard-setting and enforcement will continue to be provided by the agency. That remains our firm intention. We are grateful to all those who commented on the options described in the consultation document for the future provision of the testing of heavy goods vehicles and passenger carrying vehicles. We have carefully considered those views and have concluded that, in principle, VI's testing activities are suitable for transfer to the private sector, provided effective arrangements can be made to ensure that road safety standards are protected. The scope for this transfer is to be given further WA 39 study. A copy of a letter to be sent to interested bodies about this has been placed in the Library; copies are available from the Department of Transport on request. We shall reach a final decision and announce it when the further studies have been completed.
(c) Transport Research Laboratory: We believe that the Laboratory should be transferred to the private sector so as to enable TRL's managers and staff to compete more effectively for research work both here and abroad. We are appointing consultants to advise on the options for privatisation and their feasibility.
(d) The Driver and Vehicle Licensing Agency, Driving Standards Agency, and the Vehicle Certification Agency: As my honourable friend the Parliamentary Under-Secretary of State for Roads and Traffic at the Department of Transport indicated on 20th November 1992 Official Report, House of Commons, cols. 406–407), we have been looking at the options for these agencies as part of the normal reviews of their framework documents. We have now concluded, on balance, that there should be no change in the status of DVLA at this stage. In the case of the Driving Standards Agency, we are not satisfied that fair and uniform standards of testing could be secured if the work were contracted out, without disproportionate enforcement arrangements. The agency was awarded the Charter Mark last year and we want it—like DVLA—to concentrate on WA 40 further measures to improve the quality and efficiency of its services. The first priority for the Vehicle Certification Agency over the next few years is to ensure the smooth and effective adaptation to the new EC arrangements for whole vehicle-type approval. The options for privatisation and contracting out will, however, be reviewed again for all three agencies in three or four years' time. Meanwhile, we have asked the chief executives to make full use of the market testing initiative to secure best value for money.