Research Laboratories (Hansard, 24 May 1995)

§ Mr. Heseltine

In the light of the announcement I made on 14 April 1994,Official Report, columns 251–53 on the future management of the DTI's laboratories, the targets I have set the Laboratory of the Government Chemist and the National Engineering Laboratory for 1995–96 are set out below. In addition, I expect the chief executives of the laboratories, including the National Physical Laboratory, to continue to reply within 10 working days to all letters from Members of Parliament delegated to them for reply.

Primary Financial Targets LGC Recovery of full costs from income for customer work. NEL Recovery of full costs through "arms-length" contracts from customers.

Secondary Targets LGC: To achieve an average rate of 93 per cent for completion of reports on analysis of (or research into) samples by the date agreed with customers for the year as a whole. To achieve more than 87 per cent. of contract research milestones within the time scale agreed with the customer. To maintain NAMAS accreditation for the categories of work in which the Laboratory operates, registration for Good Laboratory Practice (GLP) and Laboratory-wide registration to BS EN ISO 9001. NEL: To increase the number of non-DTI customers who provide revenues of more than £100,000 per annum by 25 per cent. To increase the number of hours charged to customers per staff member by 10 per cent. To carry out post completion reviews, with customers, on 20 per cent. of all contracts valued in excess of £250,000.

Bids are currently being considered from the private sector for the contractorisation of NPL. For the time it is expected to remain an agency, its primary target is to recover its full costs from income for customer work after taking account of the special circumstances arising from the task of preparing for transfer to private management. NEL and LGC are expected to have been privatised by the end of 1995–96 and hence to cease to be agencies.