AT THE HEART OF THE ROAD TRANSPORT INDUSTRY.

Call our Sales Team on 0208 912 2120

John Darker analyses the NEDO repori THE WELLPU BLICISED report to the

3rd December 1976
Page 26
Page 26, 3rd December 1976 — John Darker analyses the NEDO repori THE WELLPU BLICISED report to the
Close
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

Government on the role of the major nationalised industries has already resulted in some caustic criticisms of the National Economic Development Office (NEDO), whose director Sir Ronald McIntosh, led the Study Team producing the report.

Understandably, many of those working in, or respon sible for, State-owned industries and services have not welcomed increasing public disillusionment with the quality and price of the product or service offered.

The nationalised industries — the National Freight Corporation, National Bus, British Rail and British Airways in transport, plus coal, gas, electricity, steel and the Post Office — together account for nearly 85 per cent of the net output of all UK public corm porations, and nearly 10 per cent of total Gross Domestic -Product.

Because of the dominant role of many of the Stateowned bodies the public have virtually no alternative service for a wide range of needs. There are calls for the breaking up of some State-owned bodies, or their exposure to more effective competition.

In their indictment of the performance of the nationalised industries, there will be many who will applaud the analysis of the NEDO Study Team. Unquestionably, the existing framework of relationships, developed under governments of both main political parties, needs radical change.

There is widespread lack of trust, and mutual misunderstanding, between those running nationalised industries, politicians and civil servants, and some would include employees in subordinate ,undertakings.

There is confusion about the respective roles of the controlling boards, Ministers and Parliament, with blurred responsibility and accountability.

The absence of a systematic framework for agreeing long-term objectives and strategy, and the lack of continuity when decisions are eventually reached, reflects the failure of generations of politicians to think through the inherent problems of State-owned monopolies or near monopolies.

The existing systems for monitoring the performance of nationalised industries and assessing managerial abilities, leave much to be desired.

NEDO does not blame any group of participants or pin-point any single factors, contenting itself with the thought that what was workable 25 years ago has become increasingly less appropriate.

It rejects the idea that the existing administrative system could be effectively improved by, say, a pep talk by Jim Callaghan.

A new approach quite sensibly calls for a "combined ops" method involving government, unions and other key interest groups. options for consideration by the Council; undertake necessary detailed planning and accept responsibility for implementing policies and plans, once they had been agreed by the Council.

NEDO suggests that the Policy Council would be chaired by a president — appointed by the Government — with considerable security of tenure.

The chairman of the Corporation Board, and some of his colleagues, wnuld be Council members sitting down with senior civil servants from the Treasury and sponsor departments, trade unions representatives and members reflecting user and other independent viewpoints.

The Council would appoint the chairman and members of the Corporation Board, who would all be responsible to the Council. Being much more representative than the pre NEDO even believes that th transfer and integration c functions and responsibilitie will lead to net savings in stai throughout the system.

It would be a superficis judgment to say that th proposed changes would no improve th.e present set-ur The consumer councils, whic: were built into the machiner of State corporations at th outset, have been large], unsuccessful. The joint con sultation systems enjoined oi State corporations have als, been notably undynamic an self-protective. An obvious problem if th NEDO suggestions are adopt ed is the reconciliation o strategies between the variou Policy Councils.

A Policy Council for Ra. would not necessarily liv happily with a Policy Counc. for the NFC. Both bodie could be in a state of con flic with the grand-daddy of a State-owned bodies, the Pos Office, with its several thou sand managers earning ove £7,000 a year.

Those in private industr who believe that excessiv trade union dominanc explains the relative failure c State corporations to provid the service expected at thei inception — in the hatcyo days of the Attlee Govern ment — should ponder on th effects of the likely legislatio on workers' democracy, i particular on the implication of a new Companies Ac requiring employees' interest • to rank equally wit _shareholders'.

It. is mach to be hoped tha State corporation bosses wh. have endured the frustration of recent years will emulat those politicians who tav revealed some secrets of th Cabinet room in recen memoirs. When a State bos retires he should have th courage to come clean. Fo only by such indiscretions cal the public — and we ii transport are part of th public — know what has gon wrong and why.

The discreet NEDO repor exposes with a broad brusl the unsatisfactory ad m i n is tration of publicly ownei industry. Policy Councils especially if they operate full public view, will enabl, consumers to know what i and what should be happen ing.


comments powered by Disqus