§ Mr. Gordon PrenticeTo ask the Chancellor of the Duchy of Lancaster what assessment he has made of the advantages and disadvantages in the privatisation of HMSO. [40479]
§ Mr. HoramThe future of HMSO has been examined in depth several times in recent years, against the background of changing markets and a developing business structure. The most recent examination found that privatisation is feasible and that there should be sufficient interest to maximise proceeds through competitive tender.
Coopers and Lybrand is now considering urgently options for the future of HMSO, with a view to privatisation, as my right hon. Friend the Chancellor of the Duchy of Lancaster announced last month. We are consulting the authorities in this House and the other place on the necessary safeguards to protect the continued high standards of HMSO's service to Parliament before taking a decision on the way forward.
HMSO's core market in the public sector is shrinking and it faces intense competition from the private sector. At the same time, it is constrained by having to operate from within government: it cannot trade in wider markets, nor can it diversify or raise investment capital as easily as its competitors. Unless these constraints are removed there is a real risk of the business declining. An early privatisation, subject to the needs of Parliament being met, would open up opportunities for the business.