3.13 The nature of the asset studies, and the potential for identifying new candidates, means that work on this aspect of the Operational Efficiency Programme needs to be ongoing. This is necessary to ensure that:
• the full range of options for each asset can be properly considered, including the appointment of relevant advisors;
• once the most appropriate option for progression has been selected, that adequate time is built in to prepare the organisation for change, and to engage with the appropriate stakeholders;
• there is sufficient time to oversee the implementation of the changes identified; and
• in addition, there needs to be an ongoing wider challenge to government in relation to the assets it holds, and on the way in which it manages them efficiently.
Recommendation 3.1: There should be an ongoing six-monthly review exercise, carried out across government and the public sector, to identify new assets for consideration. This would be tied in to Pre-Budget Report and Budget announcements each year, together with an update on progress made with the existing portfolio of assets. |
3.14 The role of the Shareholder Executive, working with the backing of the HM Treasury, Departments, and other responsible public sector entities, would remain central to the identification of these assets and in leading the work going forward.
Recommendation 3.2: Assets examined by the Programme should be reviewed by individual project teams coordinated by the Shareholder Executive with the full support of HM Treasury, the responsible department or public sector entity, and the relevant management. These teams should: • consider whether the most efficient use is being made of the assets from the point of view of business model, capital structure, organisational and customer requirements, including whether the current position within the public sector is appropriate; • bring forward for decision-making the findings of these studies; • once decisions are made, oversee the implementation stage to ensure that plans are properly converted to appropriate action; • where and when appropriate, lead disposal and/or partial disposal activity with departments; and • report progress publicly, to be tied in to Pre-Budget and Budget processes. |
3.15 As part of this work it will be important for the Government to consider addressing and bringing forward any necessary legislation, so as to enable relevant changes to assets to be made in a timely manner.
3.16 This will be supported by the package of accountability and performance management mechanisms, described in the Executive Summary of this document, that ensure that departments and other parts of the public sector are challenged on their efficiency performance at the highest levels.