Capital for Enterprise Ltd

House of Lords written statement – made on 17th July 2012.

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Photo of Baroness Wilcox Baroness Wilcox The Parliamentary Under-Secretary of State for Business, Innovation and Skills

My honourable friend the Minister of State for Business and Enterprise (Mark Prisk) has today made the following Statement.

The triennial review of Capital for Enterprise Ltd will commence during October 2012.

The coalition Government made a commitment to review public bodies, with the aim of increasing accountability for actions carried out on behalf of the state.

BIS has agreed with the Cabinet Office that Capital for Enterprise Ltd will be one of the NDPBs for which the review will commence during the second year of the triennial review programme (FY 2012-13).

The review will be conducted as set out in Cabinet Office guidance, in two stages.

Stage 1 will:

identify and examine the key functions of the Capital for Enterprise Ltd and assess how these functions contribute to the core business of BIS;assess the requirement for these to continue;if continuing, then assess delivery options and where the conclusion is that a particular function is still needed examine how this function might best be delivered, including a cost and benefits analysis where appropriate; and if one of these options is continuing delivery through Capital for Enterprise Ltd, then make an assessment against the Government's "three tests", these are: technical function; political impartiality; need for independence from Ministers.

If the outcome of Stage 1 is that delivery should continue through Capital for Enterprise Ltd then the second stage of the project will be to ensure that it is operating in line with the recognised principles of good corporate governance, using the Cabinet Office "comply or explain" standard approach.

The report of the review should be completed within six months from commencement, and will be placed in the Libraries of the House.