§ Mr. PoundTo ask the Secretary of State for Transport, Local Government and the Regions if he will make a statement on the progress of the Quinquennial Review of Ordnance Survey. [24994]
§ Ms KeebleI am pleased to announce today the outcome of the first Stage of the Quinquennial Review of Ordnance Survey. I have placed copies of the Stage 1 Report in the Libraries.
519WStage 1 of the Review of Ordnance Survey, announced on 15 February 2001 was managed by a Steering Group chaired by my Department. It also included representatives from Ordnance Survey, HM Treasury, Cabinet Office and two external members from the Association of Geographic Information (AGI) and the London borough of Lewisham. Consultation took place with a wide range of stakeholders and customers in the geographic information business in Great Britain.
Ordnance Survey is a Government Department and Executive Agency operating within a Trading Fund regime. The main recommendation of the review is that it should further strengthen its business focus by becoming a Government-owned plc on 1 April 2003, with Government owning 100 per cent, of the shares. This would provide Ordnance Survey with additional commercial freedoms that are considered to be essential if it is to use its full potential to develop the geographic information and e-business marketplace.
The Stage 1 Review rejected the options of abolition, merger, contracting out and market testing. It considered privatisation carefully, but stated that this was not a real option at present because there is much for Ordnance Survey to do to increase its value as a business through increasing market presence and decreasing cost through operational efficiencies. Additionally, the reviewers concluded that privatisation could endanger Ordnance Survey's existing partnerships, both within the Government and the private sector. Government-owned plc status would balance the requirement of the national interest in maintaining consistent, up-to-date, and fit-for-purpose geographic information, with the commercial imperatives of an efficient organisation.
I have carefully considered the Stage 1 Report and its argument that there is a need for a further step change from the current Trading Fund status to enable Ordnance Survey to respond effectively to the requirements of the marketplace. I have accepted that the change in status will enable the further development and expansion of their business of providing geographic data for others to add value and generate commercial products, but I wish to have this confirmed by means of a clear business case.
The report's recommendation is in line with the wider Government policy of increasing accountability for Government organisations and increases the potential for high quality managers to raise the return to Government from the efficient and effective use of Ordnance Survey assets and investment.
I am minded to accept the Review's recommendation and have authorised the Steering Group to proceed to a Stage 2 Review which will be asked to undertake a detailed analysis of the best structure for a company, confirm the benefits and costs compared to the current Trading Fund status, consider the right operating framework, and propose means of removing any obstacles which will influence the establishment of Ordnance Survey as a Government-owned company by 1 April 2003. Stage 2 will also investigate how further public-private partnerships might benefit Ordnance Survey.
I will make a further statement when the Stage 2 Review is complete and I have assessed its findings.
520W
§ Mr. Clifton-BrownTo ask the Secretary of State for Transport, Local Government and the Regions, pursuant to his answer of 4 December 2001,Official Report, column 279W, on the Ordnance Survey, what further stages in the Quinquennial Review of the Ordnance Survey will follow stage one; what the timetable will be for completion of such stages; and whether a staged timetable was envisaged when the Government announced the Quinquennial Review on 15 February. [22757]
§ Ms KeebleI refer the hon. Member to the answer that I gave today to my hon. Friend the Member for Earing, North (Mr. Pound) regarding Stage 1 of the Quinquennial Review of Ordnance Survey, at columns 518–19W.
Cabinet Office guidelines stipulate a two-stage approach to Quinquennial Reviews. The content of the second stage of Quinquennial Reviews is dependent on decisions made following the first stage. The first stage of the review has considered and made recommendations regarding the most appropriate organisation for delivering the functions currently carried out by Ordnance Survey.
Work will begin on the second stage of the review early in the new year, which will consider further the issues raised within Stage 1, and on how Ordnance Survey can improve its performance. Cabinet Office guidelines recommend that the second stage of a review should be completed within three months.
I can confirm that a staged timetable was envisaged when Stage 1 of the Ordnance Survey Quinquennial Review was announced.