THE SALE OF AEA TECHNOLOGY
EXPERIENCE
OF
THE
DEPARTMENT'S
TEAM
53. The Department's staff handling the sale were
experienced in matters relating to the business of the United
Kingdom Atomic Energy Authority and in trade sales. This was important
because much of the preparation of the business for sale required
a good understanding of the business and because a trade sale
was seen initially as the most likely method of sale. The team
as a whole, however, had no previous experience of handling a
flotation. They had access to advisers from senior management
and others in the Department, the Treasury privatisation team
and their own advisers.[42]
54. The Department told us that one member of the
steering committees overseeing the sale had experience of sales,
but Britoil was the only share sale.[43]
55. In response to our 13th Report, Session
1989-90, the Treasury undertook to be involved in all privatisations
and offer advice. We asked whether the Treasury official on the
sale steering committees gave any advice on share allocation and
phasing. The Treasury said that their representative on the sale
steering committees was in contact with colleagues in the Treasury
who had been involved in other privatisations but that the Treasury
had not been approached for advice on the procedures to follow
in relation to allocations and had not given advice on phasing.[44]
Conclusion
56. We are surprised at the lack of experience of
the Department's team in managing this sale and at their failure
to seek the Treasury's advice on key issues such as phasing and
allocation, particularly in view of the wealth of experience in
handling sales that there now is in the public sector and the
expertise that resides in the Treasury. We look to departments
and the Treasury to ensure that sales teams, as well as steering
groups overseeing costs, include individuals with relevant and
up to date sales experience.
42 C&AG's Report paras 1.10-1.11 Back
43
Q9 Back
44
Qs 123-125, 177-180 Back
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