Select Committee on Public Accounts Fourth Report


3 The implications of public-private partnership status

Financial analysis

17. The Home Secretary's announcement on 17 July 2003 followed a Quinquennial Review of the Agency by Robert McFarland, published in July 2003, which recommended public-private partnership status.[27] The issue was debated in the House of Commons on 5 November 2003.[28] When asked about the financial analysis supporting this recommendation, the Treasury said that the merits of the various options facing the Agency had been considered, including some financial analysis. As this was a public-private partnership rather than a private finance initiative, a public sector comparator would not necessarily have been used.[29]

Custodianship of the National DNA Database

18. The Agency operates the National DNA Database on behalf of the Association of Chief Police Officers (ACPO). The Agency's Chief Scientist, as custodian of the database, is responsible for assessing and recommending authorisation of any suppliers of DNA profiles to the database. These include the Forensic Science Service itself and its two main competitors.[30]

19. When asked how custodianship of the database would be organised following transition to public-private partnership status, the Agency said that a decision had yet to be reached. The Criminal Justice, Public Order and Data Protection Acts required information on the database to be used only for the purposes of criminal investigations and prosecutions. The Agency felt confident that this legislation offered sufficient protection to maintain standards of confidentiality.[31]

Restructuring

20. The number of staff at the Agency almost doubled between 1997-98 and 2001-02. Over 75% of the 2,700 staff employed in March 2002 were operational, with the remainder in support roles such as finance and human resources.[32] The Agency was now engaged in a restructuring programme. The Metropolitan Police Service had transferred trade with a value of £7 million from the Agency to its private sector competitors and the Agency also wanted to increase the ratio of operational staff to support staff in order to provide a more responsive service. The restructuring process was not connected to its future transition to public-private partnership status. The main concern of staff was the implications of public-private partnership status for their pension arrangements.[33]

21. A subsequent submission[34] showed that, at 9 October 2003, the Agency had reduced its staff by 253. Approximately half of these had been through natural wastage (for example, resignation) and the other half had taken voluntary redundancy or voluntary early retirement. The Agency anticipated a further loss of 37 staff. Of the 253 staff who had left so far, 57 were from operational roles. The submission stated the Agency's intention to avoid compulsory redundancies and that it hoped to achieve the further staff losses by other means, such as natural wastage and the reassignment of roles. The submission estimated the costs of the restructuring programme at £6.3 million.


27   Home Office, Review of the Forensic Science Service: Executive Summary, (July 2003) Back

28   HC Deb 5 November 2003 cc 259-282WH Back

29   Qq 33-40 Back

30   C&AG's Report, para 1.7 Back

31   Qq 26-29, 166-167 Back

32   C&AG's Report, para 1.14 Back

33   Qq 60-71, 112-125 Back

34   Q 68; Ev 17 Back


 
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