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The Essential Guide to British Quangos 2005

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The Essential Guide to British Quangos 2005 EFFICIENCY IN GOVERNMENT The Essential Guide to British Quangos 2005 DAN LEWIS EFFICIENCY IN GOVERNMENT UNIT . ECONOMIC RESEARCH COUNCIL CENTRE FOR POLICY STUDIES 2005 THE AUTHOR DAN LEWIS IS Director of the Efficiency In Government Unit, jointly sponsored by the Centre for Policy Studies and the Economic Research Council. He is also a journalist and market research consultant with a particular interest in governmental, environmental and energy affairs. His report Recharging The Nation (ERC, 2003) assessed the prospects for the expansion of existing, renewable technologies. He has since advised policymakers and investors about renewable energy and the environment. He is the Director of Environmental Affairs at the Stockholm Network, and Research Director of the Economic Research Council. He has contributed to numerous publications including the Wall Street Journal Europe. His website is www.danlewis.org. The aim of the Centre for Policy Studies (www.cps.org.uk) is to develop and promote policies that provide freedom and encouragement for individuals to pursue the aspirations they have for themselves and their families, within the security and obligations of a stable and law-abiding nation. The views expressed in our publications are, however, the sole responsibility of the authors. Contributions are chosen for their value in informing public debate and should not be taken as representing a corporate view of the CPS or of its Directors. The CPS values its independence and does not carry on activities with the intention of affecting public support for any registered political party or for candidates at election, or to influence voters in a referendum. The Economic Research Council (www.ercouncil.org) is Britain’s oldest economics-based think tank, founded in 1943, which has historically concentrated on monetary practice. Today it is a registered charity, dedicated to discuss, dispute, debate and generally seek enlightenment on economic issues of all kinds. ISBN No. 1 903219 86 8 Centre for Policy Studies, February 2005 57 Tufton Street, London SW1P 3QL Printed by 4-Print, 138 Molesey Avenue, Surrey CONTENTS Preface 1. Main Findings 1 2. Policy recommendations 6 Appendix A: Quangoes established since 1997 7 Appendix B: Non-Participants in the Survey 11 Appendix C: 529 Quangos 14 PREFACE ALSO KNOWN AS Non-Departmental Public Bodies (NDPBs), Quangos can be defined as bodies that are either entirely or partly financed by government departments, and which act with a large degree of independence from government. Sometimes they are entirely self-financed by their activities but come under the jurisdiction of a particular government department. There are four main types of quangos: Executive; Advisory; Tribunal; and the Boards of Visitors. Executive NDPBs are established in statute and may have powers to fine, regulate and control their own budget. Advisory NDPBs are usually set up to investigate and build up knowledge of specialist subjects for Ministers to consult on. Tribunal NDPBs have jurisdiction in a specialised field of law. Finally, Boards of Visitors exist as overseers of the prison system. This Guide focuses on Executive and Advisory Quangos (which account for about four-fifths of all NDPBs) and is essentially a directory of information, providing data on one of the least debated and least understood areas of government. I would like to take this opportunity to thank Britain’s civil service and NDPB employees for their response to our initial survey on NDPBs. Their participation shows two important points. First, there is huge demand amongst those in the Quango industry for this information to be made available on a comparative basis. This information will therefore be continually updated and made available on the Efficiency In Government website (wwww.eig.ercouncil.org). Secondly, there is a great deal of public spirit and civic duty alive and well in the civil service. Much effort was made by civil servants to provide details of the work of the bodies that they serve. Their co- operation has made this publication possible. Regrettably however, a few NDPBs chose not to respond to the survey. This is disappointing as they were asked no more than they would be expected to provide under the Freedom of Information Act. We have listed those non-participants in Appendix B. Dan Lewis Director – Efficiency In Government February 2004 CHAPTER ONE MAIN FINDINGS Duplication of Effort An entrepreneurial civil servant, a skilled lobbyist with developed government connections or a Minister with an agenda may choose to set up a quango. Unlike in the private sector however, there is no cut and thrust of competition to weed out weaker players. As a result, a substantial number of NDPBs duplicates each other’s efforts. Energy quangos The Energy Savings Trust and the Carbon Trust have overlapping agendas (both seek to prevent the UK’s contribution to global warming by reducing CO2 emissions and promoting renewable energy). Their combined annual budget is £130 million – a sum that could provide 12 million boiler jackets to the UK’s homes with a payback period of just six months. The duplication of effort and objectives of the two quangos is likely to raise the cost of policy implementation for the taxpayer. Environment quangos Britain’s leading executive environment bodies are the Countryside Agency, English Nature and the Environment Agency. To quote Public Bodies 2003 the Countryside Agency “aims to conserve and enhance the natural beauty of the countryside…” while English Nature “promotes the conservation of English Wildlife” and the Environment Agency seeks to “protect and improve the environment in England and Wales”. It is not obvious why these three public bodies with many interests in common should not be merged and rationalised. Tourist quangos A record 12.5 million tourists visted Britain in the first six months of 2004. Tourism is Britain’s sixth largest industry, contributing £76 billion in 2002 and employing the equivalent of 6.1% of the working population. But how many of these tourists came to the United Kingdom because of the activities of: The British Tourist Authority? English Tourism Council? Northern Ireland Tourist Board? Visit Scotland? Wales Tourist Board? Would the numbers be much different if they weren’t there? Isn’t this a function that could be better promoted by a private sector business on a voluntary basis? At the very most, wouldn’t just one smaller tax-funded quango suffice? 1 THE ESSENTIAL GUIDE TO BRITISH QUANGOS 2005 Sport Quangos The UK has had a good Olympics in Athens receiving 30 medals in total. UK Sport, Sport Scotland, Sports Council for Wales, Sports Council for Northern Ireland and Sport England no doubt feel that they played an important role in this. But involving the state more and more financially in Sport to boost our national image suggests considerable lack of self- confidence. Britain is not yet Australia or even East Germany. Surely one sports quango for the United Kingdom should be enough? The 10 most costly NDPBs Annual Budget Medical Research Council £414,770,000 Western Health and Social Services Board £438,500,000 Southern Health and Social Services Board £466,000,000 Engineering & Physical Sciences Research Council £497,000,000 Scottish Further Education Funding Council £500,000,000 National Council for Education and Training in Wales £500,000,000 Teacher Training Agency £514,634,000 Northern Health and Social Services Board £550,000,000 Scottish Higher Education Funding Council £800,000,000 Legal Service Commission £2,100,000,000 The 9 most useless quangos British Potato Council (BPC) The BPC is a statutory levy body that charges potato growers and consumers to fund research and promote overseas markets. That such a body exists with a full complement of 60 staff due to government legislation in 1997 is surprising. If such an organisation was necessary, it should be voluntary. Few British potato consumers would feel that their life was blighted if the BPC were to disappear. The BPC is now under a second statutory review with all levy payers entitled to a vote on its existence. Milk Development Council (MDC) In a similar vein the MDC which was set up in 1995 is financed by a levy on British Dairy Farms. It raises £7.5 million a year and employs 43 staff. Why shouldn’t Britain’s struggling dairy farmers be given the option of contributing or not to what is effectively a nationalised lobby? Energy Savings Trust (EST) Set up under John Major after the Rio Summit, the EST now has an annual budget of £80 million. Yet it is far from clear that the value of energy it saves exceeds its costs. Its programmes include a 50% subsidy for the world’s most expensive renewable – solar energy. Even with this subsidy, the payback period is 30 years which is probably beyond the lifetime of the module itself. A more efficient way would be to use the £80 million to buy 8 million boiler jackets for UK homes. With a payback period of six months, this would be a far more useful way to save energy. 2 MAIN FINDINGS Agricultural Wages Committees The Agricultural Wages Committee, the Agricultural Wages Board for England and Wales, the Agricultural Wages Board for Northern Ireland and the Scottish Agricultural Wages Board all exist to set a minimum wage and working conditions for the UK’s farm workers. All of these are financed by a statutory levy on farmers. It is widely thought that non-compliance with minimum wages runs highest in the agricultural industry and it seems absurd to levy extra costs on the UK’s farmers, many of whom may not pay any attention when there is a plentiful supply of immigrants ready to work for as little as £1 an hour.
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