Getting better value from public sector research ... - CentreForum

Getting better value from Public Sector Research Establishments
Of course, it is possible to reduce and possibly to remove some
of these constraints within the public sector. Mechanisms
such as trading fund structures, executive agency status and
so on have been developed to do just that. But the evidence
from the case studies, particularly of those organisations
which have been successfully privatised, is that even where
such public sector mechanisms have been used, they
have not fully removed significant operating constraints.
QinetiQ and LGC, for example, spent significant resources
removing vestigial public sector constraints through major
transformation programmes. Some of the constraints, such
as lack of access to capital, are not easily addressed in the
public sector.
There are, of course, reasons why some organisations need
to remain in government ownership. These include access to
impartial advice (e.g. Dstl) or to ensure that strategic/security
sensitive assets remain in government hands (AWE).
However, examples such as LGC’s very successful operation
of the statutory Government Chemist function demonstrate
that with the appropriate contractual mechanisms even
statutory/regulatory functions may be discharged effectively
and efficiently by privatised bodies.
A final point is that the ex-public sector employees we
interviewed, who now work in privatised establishments,
were very positive about the impact on transition from the
public to the private sectors on their careers.
As one senior scientist who had made the transition
commented: “[We now have] a more focused approach to
getting the output which customers want. I’m very positive
about what has been achieved. I’m very positive or I would
not still be here.” Similar comments have been made by
staff who have moved from the civil service to a GOCO
management company, such as at NPL.
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