HC Deb 14 December 1994 vol 251 cc657-8W
Mr. Trend

To ask the President of the Board of Trade, if he will make a statement on the outcome of the review of the Patent Office Agency.

Mr. Heseltine

I am pleased to announce that the review is now complete. A summary of the consultants' report, edited to omit commercially sensitive information, has been placed in the Libraries of both Houses. It is customary to review the status and performance of all agencies, as a matter of course, three years after their establishment. I am satisfied that the Patent Office has performed well during this period. It is meeting the legitimate expectations of users and improvements in quality of service were recognised by the award of a charter mark in 1993. Since relocation to Newport, Gwent, in 1991, the office has also reduced its cost base by about £7 million per annum, it has become a trading fund, and it has introduced a range of commercial disciplines. These will all contribute to securing its long-term future.

I have considered whether the Patent Office should be privatised and believe that this should remain an option for the longer term. I have also looked at the scope for large-scale contractorisation. But the nature and extent of the Patent Office's statutory functions would require special arrangements in this case to safeguard their proper exercise, and so render this option less attractive. I have therefore decided to confirm the status of the Patent Office as an executive agency. I will be setting new targets to take effect from 1 April 1995 which will require the Patent Office to continue its drive to improve efficiency and quality of service and these will encourage the Patent Office to contract out activities wherever this is compatible with its statutory role and good value for money. The aim is for the Patent Office to continue to provide a first rate service to its users. The office is a valuable asset in terms of its information resource and analytical expertise, and I will also support its endeavours to work with private sector partners to seek out new business opportunities both in the United Kingdom and overseas. Experience of the development of such partnerships as well as all options for ownership and delivery of service will be re-examined in any future review.