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Laboratory of the Government Chemist

Mr. Hargreaves: To ask the President of the Board of Trade if he will make a statement on the sale of the Laboratory of the Government Chemist. [24761]

Mr. Ian Taylor: The Government completed on 31 March the sale of the Laboratory of the Government Chemist to LGC (Holdings) Ltd., a company formed by a

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consortium lead by the chief executive, Dr. Richard Worswick, and comprising LGC management and staff, the Royal Society of Chemistry and 3i Group plc.

The intention to privatise LGC was announced by my right hon. Friend the Member for Henley (Mr. Heseltine) on 14 April 1994.

On 10 November 1995, the consortium was selected as the preferred bidder after extensive evaluation against the Department's objectives for the sale and a wide range of quantitative, technical and financial criteria which demonstrated that their bid represented the best value-for-money option for the Department.

The consideration will be a payment of £360,000 to the Department, to be adjusted subsequently in the light of the level of net current assets at completion. At the same time, the Department will be making a payment to the purchaser of £1.96 million to relieve the Department of the liability for (a) site separation work to allow LGC to untie from the national physical laboratory on the Department's Teddington site, and (b) building dilapidation works; the purchaser will take on the entire responsibility for the successful completion of these projects.

In the event that the purchaser is not awarded a contract which was assumed in the bid, there will be (a) payment to the purchaser of £300,000 to forestall consequential redundancies and to enable it to develop alternative business streams, and (b) an indemnity for the cost of any such redundancies up to a maximum sum of £500,000.

Dr. Worswick has been reappointed as the Government Chemist. Virtually all the staff in the undertaking will transfer to the purchaser.

This represents a highly satisfactory outcome for Government and for LGC. The unique combination of the existing management and staff, the RSC, and 3i will allow LGC to forge a new future as a successful commercial enterprise, building on its existing strengths in analytical chemistry. At the same time, LGC will continue to meet the Department's needs as the centre of excellence in chemical metrology. The involvement of the RSC will help to maintain LGC's independence and impartiality which is of particular importance for the discharge of the Government Chemist's statutory responsibilities. I particularly welcome the confidence shown in the laboratory by the staff, many of whom will be investing in the new company to be operated by the purchasers.

Crude Oil (Storage)

Mr. Ainger: To ask the President of the Board of Trade if he will list the minimum tonnage of crude oil as collated by Customs and Excise required to be stored at each of the United Kingdom oil refineries. [24263]

Mr. Page: There is no requirement for crude oil to be stored specifically at UK oil refineries.

Oil refining companies are currently directed to hold stocks of petroleum products amounting to 75 days of their deliveries into final consumption in the previous year in three product categories specified by EC directive 68/414/EEC. Directions do not specify the location in which stocks are to be held.

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Mr. Ainger: To ask the President of the Board of Trade if he will list the tonnage of crude oil as collated by Customs and Excise stored at each of the United Kingdom oil refineries on or about 15 January, 15 February 1996 and 15 December 1995. [24262]

Mr. Page: The information requested is not readily available in the time given and is treated as commercially confidential.

The information provided by the oil industry does not separate oil held at refineries as opposed to other facilities. The collection of the information required would impose disproportionate costs.

Patent Office

Mr. Alex Carlile: To ask the President of the Board of Trade what are the criteria on which a decision to contract out the work of the central inquiry unit of the Patent Office will be based; and if he will make a statement. [24159]

Mr. Ian Taylor: The general criterion is increased value for money through improvements in efficiency and quality of service. More specific criteria will be drawn up for inclusion in any invitation to tender.

The overall objective is to ensure the Patent Office is in a position to withstand competitive pressures.

Mr. Carlile: To ask the President of the Board of Trade if the Patent Office management board is authorised to oppose a study into the contracting out of the work of Departments with the Patent Office; and if he will make a statement. [24163]

Mr. Taylor: The final responsibility for decisions on contractorisation rests with the Minister concerned. Such decisions take into account advice from the chief executive and his board.

Mr. Carlile: To ask the President of the Board of Trade what percentage of the marketing budget of the Patent Office is accounted for by the central inquiry unit; and if he will make a statement. [24158]

Mr. Taylor: About 30 per cent. of the Patent Office budget for publicity and marketing is allocated to the central inquiry unit.

Mr. Carlile: To ask the President of the Board of Trade when the Coopers and Lybrand report on the Patent Office information services department will be published; what has been the cost of the report; and if he will make a statement. [24162]

Mr. Taylor: The report contains commercially confidential material and will not be published. The cost of the review was £49,300.

Mr. Carlile: To ask the President of the Board of Trade if he will (a) name the bidders for the London office of the Patent Office, (b) announce the date on which the contracts will be awarded and (c) list the dates on which consultation has taken place with the Patent Office unions; and if he will make a statement. [24166]

Mr. Taylor: The decision on the successful bidder for the management of the London front office is expected in late April and will be announced shortly thereafter. Under the 1989 arrangements for consultation on contractorisation projects, the Patent Office trade unions

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were consulted on the invitation to tender in January 1996. The topic was also raised with me by the trade unions during my visit to the Patent Office on 27 March.

Mr. Carlile: To ask the President of the Board of Trade if he will outline the time scale for any study into contracting out the work of the central inquiry unit of the Patent Office; who is responsible for the study; when the contracts expire; and if he will make a statement. [24164]

Mr. Taylor: A preliminary study of the feasibility of contracting out the central inquiry unit is being carried out in-house. It is expected to be ready in late June.

Mr. Carlile: To ask the President of the Board of Trade if he will list the members of the Patent Office steering board; and if he will make a statement. [24157]

Mr. Taylor: The current members of the Patent Office steering board are:


Mr. Carlile: To ask the President of the Board of Trade how many information technology consultants are employed at the Patent Office information technology services department; who employs them; and he will make a statement. [24161]

Mr. Taylor: Contract staff recruited to provide specialist skills not available in-house to the Patent Office currently number 36. They are supplied by a number of companies selected through an open competition. These suppliers are:


Mr. Carlile: To ask the President of the Board of Trade what official notification his Department has made of a study into the contracting out of the work of the central inquiry unit of the Patent Office; and if he will make a statement. [24165]

Mr. Taylor: The staff of the central inquiry unit and trade union representatives have been told of the decision to carry out a feasibility study of contractorisation by the Patent Office management. Members of Parliament with an interest have been informed through parliamentary questions or ministerial correspondence.

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Mr. Carlile: To ask the President of the Board of Trade when the last civil servant was recruited to work at the Patent Office information technology services department; and if he will make a statement. [24265]

Mr. Taylor: Two civil servants were recruited into the Patent Office information technology services department in January 1995.

Mr. Harvey: To ask the President of the Board of Trade if he will list (a) the number and (b) names of the private consultants currently employed in the Patent Office. [24371]

Mr. Taylor: Only Coopers and Lybrand is currently employed by the Patent Office. Marketing Improvements and Logica Ltd. have recently been employed but have now submitted their final reports which are under active consideration.

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