Coal Authority (Hansard, 30 October 2000)

§ Mrs. Liddell

Work has now commenced on the second quinquennial review of the functions and organisation of the Coal Authority. The terms of reference for the review are as given.

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Overall Aim

To determine whether any changes are necessary to the functions and organisation of the Coal Authority.

First Stage: Prior Options

To examine whether the Coal Authority should be retained as an NDPB and, if so, should continue to carry out some or all of the functions it presently delivers.

In the course of this, to consider specifically: whether an NDPB is the best way of meeting DTI objectives in this area and the Authority's past performance in doing so; whether the role and functions of the Coal Authority contribute to the delivery of wider DTI and Government objectives; whether existing functions still need to be undertaken or reduced and whether new functions could usefully be undertaken by the Authority; whether there is potential for closer working with other parts of the public sector, or the private sector, on particular activities, including possible transfer of activities to or from those bodies; how functions can best be delivered and whether there is scope for other organisational options, including discontinuing, contracting-out, market-testing, merging or rationalising, privatising, or restructuring internally, some or all of them; whether the statutory framework within which the Authority operates is appropriate or whether changes to its powers would be desirable; whether the funding regime within which the Authority operates is appropriate or whether changes (commensurate with public accountability) would improve the ability of the Authority to carry out its functions.

Second Stage: Review of Efficiency

If NDPB status for the Coal Authority is confirmed, in the light of the findings of the Prior Options Stage consider how the Authority's operations, services and functions could be provided and operated more efficiently and effectively in the future.

To consider particularly: the Authority's aims and objectives and the part they play in delivering wider DTI and Government objectives; performance targets and whether they are sufficiently comprehensive and stretching, and properly reflect the Authority's aims and objectives; how the Authority can improve its responsiveness to those who use its services and functions and the involvement of its staff in the way it works; whether the Authority's organisational structure and effectiveness, its staffing, management and personnel policies adequately take into account changes in workload; opportunities for joint-working with other bodies to enhance the efficiency and effectiveness of service delivery; whether the Authority can make better use of new technology to improve the delivery of its services and functions; the Authority's system of financial management and control together with the budgetary process and the application of fees and charges; existing outsourcing arrangements and confirm that they are providing value for money. In particular, to advise on whether the boundary between in-house and outsourced work is appropriately drawn in all areas including that of monitoring work on subsidence and historic liabilities; whether there is scope to increase the current level of efficiency savings and income and to improve the utilisation of its assets; whether the Authority needs different freedoms or flexibilities to improve delivery of its services; whether the roles and reporting arrangements of the Authority, the Department and Ministers need clearer definition and whether they provide proper support for operational and policy work.

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The findings of this review will be summarised in a report in a format agreed with the Department, including a set of recommendations.

The first stage of the review will be carried out by an official in the Department of Trade and Industry. If, once this stage is completed, it is decided to proceed to a second stage, it is likely that this work will be undertaken by consultants. The first stage should be completed by the end of 2000 and stage two would commence early in 2001. The review is being overseen by a Steering Group chaired by the Director of Coal Unit in my Department. The team includes the Chairman of the Coal Authority and an independent member.

My Department is particularly keen to hear the views of interested parties including suggestions for improvement in the provision of services. Any comments, which should be sent by 30 November, should be addressed to Mr. Brian Morris, Department of Trade and Industry, Bay 179, 1 Victoria Street London, SW1H 0ET (e-mail: brian.morris@dti.gsi.gov.uk).