Privatisation is on the cards for VI
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• Privatisation of the Vehicle Inspectorate comes a step closer with the publication of a report claiming that no further improvements to its service can be made in its present form.
The report, by the Government's National Audit Office, says that 40% of the Inspectorate's customers surveyed by MORI say that its service has improved since it became an independent agency in 1988.
The NAO says that the VI has become 8.8% more efficient in the past two years against a target of 3.7%. This equates to a saving of £.3.5m. Becoming an agency is said to have made the Inspectorate more responsive to the needs of its customers.
However, the NA() says that the "difference between agencies and market-led businesses limits the scope that the Inspec torate has for making more improvements.
For example, for policy reasons the Inspectorate is not free to rationalise the location of its testing stations which are significantly under-utilised. In addition, the Inspectorate has only limited discretion to compete with the private sector for additional work."
It suggests some improvements that could be made within the VI's present structure, including more research before introducing additional customer service initiatives and setting targets at district level.
The VI, which is carrying out its own internal report into the viability of privatisation, says it recognises that there are practical improvements to be made, and it promises to address the areas identified.