3.4 The range of potential assets for inclusion in this strand of work was vast. As a starting point for detailed investigation into the assets held in the public sector, an initial list of specific assets to focus on was identified. These assets were identified from across a range of trading funds, public corporations, and other organisations or activities that were thought to be commercial in their nature, and where there was believed to be scope for increasing efficiency. This first short- list of assets was developed in conjunction with the Shareholder Executive who have led and project managed the subsequent review work. This role for the Shareholder Executive is consistent with their wider remit, which is to act as an intelligent shareholder of assets within the public sector, enabling professional commercial skills sets to be used for the public benefit.
3.5 The 2008 Pre-Budget Report announced an initial list of nine assets, for which detailed studies would be carried out to consider the potential for alternative business models, commercialisation, new market opportunities, and where appropriate, alternatives to public ownership. These assets were as follows:
Table 3.A: Initial list of assets included in the asset management and sales strand
| Asset (parent department) | Principal Activity |
| British Waterways (Defra) | Ownership and maintenance of canal infrastructure and land alongside the waterways |
| QE II (CLG) | Conference centre located in Westminster for Government and private use |
| Ordnance Survey (CLG) | Provider of high quality geographical data covering Great Britain |
| Land Registry (MOJ) | National registry of property and land ownership |
| Dartford Crossing (DfT) | Road transport bridge and tunnel crossings of the River Thames at Dartford |
| Royal Mint (HMT) | Manufacturer of circulating and commemorative coins |
| Met Office (MOD) | National weather forecasting service |
| Oil and Pipelines Agency (MOD) | Management of the Government Pipeline and Storage System |
| Defence Storage and Distribution Agency (MOD) | Management and infrastructure of MOD equipment storage and distribution agency. |
3.6 A tailored approach was applied to each of the studies, taking into account the very different circumstances surrounding each and appreciating that a single approach would not be appropriate in all cases. There were no pre-conceived conclusions to the studies, and each study considered fully the benefits of the whole spectrum of appropriate options.
3.7 The studies were taken forward using a collaborative approach, working with the Shareholder Executive, relevant departments, and the management of the assets involved. Project teams were set up for each of the assets, with representation from all of these groups. This helped both to drive radical conclusions in respect of each study, through ensuring that the expertise of those who understand the asset best was drawn upon, whilst at the same time providing innovative thinking and external challenge.
3.8 In carrying out the studies there has been close tie-in, where relevant, with the Trading Funds Assessment (see Box 3.A).
| Box 3.A: Trading Funds Assessment The first phase of the Trading Fund Assessment considered how a number of Government businesses could open up the information they create or hold as a result of carrying out their core public duties. The businesses were Met Office, Land Registry, Ordnance Survey, Companies House, Driver and Vehicle Licensing Agency and UK Hydrographic Office. Availability of the information produced by these Trading Funds generates opportunities for innovation, added-value and growth in both the wider economy and society. Accurate and easily available information enables the better delivery of public services and increased accountability of government. The Assessment identified key principles of good practice relating to information produced by all Trading Funds. These principles are: • information easily available - where possible at low or marginal cost; • clear and transparent pricing structures for the information, with different parts of the business accounted for separately; • simple and transparent licences to facilitate the re-use of information for purposes other than that for which it was originally created; and • clearly and independently defined - with input from customers and stakeholders -core purposes ("public tasks") of the organisations. The Office of Public Sector Information will provide enhanced oversight and governance to ensure application of these principles across the Trading Funds that create significant amounts of information. A new business strategy for Ordnance Survey has been developed (see Box 3.H) which also will ensure easier and simpler access to high-quality information. Further work on the future business plans and models for specific Trading Funds - as well as consideration of the effectiveness of the Trading Fund model - will now be incorporated into the Operational Efficiency Programme. |
3.9 In addition, the workstrand was closely aligned with the work being carried out by the Intellectual Property Office (IPO) on intangible assets. The IPO have been leading cross- government work looking at how the public sector can identify and get the most value from its intangible assets. To facilitate this, the IPO is establishing a UK-wide virtual network for public sector stakeholders to promote the sharing of best practice, experience and greater collaboration. A number of public sector organisations have undertaken a systematic review (or 'health check') of the management of their intangible assets to see what improvements can be made and others are planning such health checks in the coming year. The virtual network will enable the sharing of knowledge and experience from these and other activities.
3.10 Whilst the specific asset studies in this workstrand have been the main focus so far, they represent only a small part of the picture. Work has been continuing elsewhere in Government in respect of other assets, for example on the United Kingdom Atomic Energy Authority (UKAEA), and it is important that government continues to have an ongoing responsibility in challenging itself on the best ways forward for the whole range of assets in its portfolio.
3.11 What the OEP asset studies have succeeded in doing is adding momentum and direction to this challenge, supporting departments in new thinking around specific assets, and helping change mindsets across the public sector to ensure that a more commercialised approach is applied throughout.