Departmental Public Bodies

Business, Innovation and Skills written question – answered on 30th March 2011.

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Photo of Tessa Jowell Tessa Jowell Shadow Minister (Olympics and London), Shadow Minister (Cabinet Office)

To ask the Secretary of State for Business, Innovation and Skills

(1) what estimate his Department has made of the level of savings which will accrue from the change in function of the British Hallmarking Council;

(2) what estimate his Department has made of the level of savings which will accrue from the abolition of the Waste Electrical and Electronic Equipment Advisory Body;

(3) what estimate his Department has made of the level of savings which will accrue from the abolition of the Union Modernisation Fund Supervisory Board;

(4) what estimate his Department has made of the level of savings which will accrue from the abolition of the Strategic Advisory Board for Intellectual Property;

(5) what estimate his Department has made of the level of savings which will accrue from the abolition of SITPRO Ltd;

(6) what estimate his Department has made of the level of savings which will accrue from the abolition of the eight Regional Development Agencies;

(7) what estimate his Department has made of the level of savings which will accrue from the abolition of the National Endowment for Science, Technology and the Arts;

(8) what estimate his Department has made of the level of savings which will accrue from the abolition of the Local Better Regulations Office;

(9) what estimate his Department has made of the level of savings which will accrue from the abolition of the Hearing Aid Council;

(10) what estimate his Department has made of the level of savings which will accrue from the abolition of the Copyright Tribunal;

(11) what estimate his Department has made of the level of savings which will accrue from the abolition of Consumer Focus;

(12) what estimate his Department has made of the level of savings which will accrue from the abolition of British Shipbuilders;

(13) what estimate his Department has made of the level of savings which will accrue from the abolition of British Nuclear Fuels Limited;

(14) what estimate his Department has made of the level of savings which will accrue from the abolition of the Aircraft and Shipbuilding Industries Arbitration Tribunal;

(15) what estimate his Department has made of the level of savings which will accrue from the merging of Postcomm and Ofcom;

(16) what estimate his Department has made of the level of savings which will accrue from the merging of the Competition Commission and the Office of Fair Trading;

(17) what estimate his Department has made of the level of savings which will accrue from the merging of the Central Arbitration Committee and the Certification Office.

Photo of David Willetts David Willetts Minister of State (Universities and Science)

On 16 March 2011, Hansard, columns 9-10WS, the Minister for the Cabinet Office and Paymaster General, my right hon. Friend Mr Maude, issued a written ministerial statement updating Parliament on progress on public bodies reform. That statement also announced that Departments estimate cumulative administrative savings of at least £2.6 billion will flow from public bodies over the spending review period.

The following table sets out estimated cumulative net administrative savings from structural reforms to BIS's public bodies over the spending review period.

These are our best current estimates of net administrative savings and are dependent upon factors such as the individual timetables for implementation-many of which require the Public Bodies Bill and subsequent secondary legislation.

Public body reform Estimated cumulative net administrative savings over the spending review period
Change in function of the British Hallmarking Council £48,000
Abolition of the Waste Electrical and Electronic Equipment Advisory Body £40,000
Abolition of the Union Modernisation Fund Supervisory Board No savings to the Exchequer
Abolition of the Strategic Advisory Board for Intellectual Property No savings to the Exchequer
Abolition of SITPRO Ltd £1.9 million
Abolition of eight regional development agencies £727.7 million
Abolition of the Local Better Regulation Office £560,000
Abolition of the Hearing Aid Council No savings to the Exchequer
Abolition of Consumer Focus Potential savings not yet quantified
Abolition of British Shipbuilders £52,000
Abolition of British Nuclear Fuels Limited No savings to the Exchequer
Abolition of the Aircraft and Shipbuilding Industries Arbitration Tribunal No savings to the Exchequer
Merger of Postcomm and Ofcom Potential savings not yet quantified
Merger of the Central Arbitration Committee and the Certification Office £650,000(1)
(1) We do not expect the overall budget for the new organisation to change In real cash terms over the SR period. The savings identified above reflect static cash spend when measured against estimated inflation.

We estimate that annual savings from the merger of the Competition Commission and the competition functions of the Office of Fair Trading would be between £3.5 million and £6.8 million, with a best estimate of £5.1 million, but that there would be a one-off transitional cost for which our best estimate is £6.8 million.

We intend to change the status of the National Endowment for Science, Technology and the Arts so it is no longer a non-departmental public body, and establish it as an independent charity. While financial savings were not the driver for this change in status, it is likely to lead to some savings, though they have not yet been quantified.

We are considering changing the status of the Copyright Tribunal so that it is no longer a non-departmental public body, and jurisdiction of the tribunal is moved into the Ministry of Justice's Tribunals Service. Any potential savings have not yet been quantified.

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