State transport needs re-think
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The proviso is that management must be assured that it will be able to apply agreed strategies without being subject to constant review and interference, and that it will be held clearly accountable for its performance.
Accepting that no single formula may be suitable for all State-owned bodies, NEDO urges the formation for each major nationalised industry of a Policy Council serving as a buffer, or meat-in-the-sandwich, between Government and the separate Corporation boards of management.
The main functions proposed for the Policy Councils would be to agree corporate objectives and the strategies to achieve them; to establish appropriate performance criteria; to endorse corporate plans; and to monitor performance.
The Corporation Board would manage the enterprise within the framework of these objectives, strategies and criteria. It would devise policy • sent Corporation Boards, the Council would be in a better position to account to Parliament and its watchdogs.
Crucial to the case for reform is that Government would exercise its concern for the effective use of resources and for social and regional policy through the Policy Councils.
It would not be able to intervene directly in the actions of the Corporation Board, though it would have powers of specific direction, enabling it in extreme circumstances to override Policy Council decisions.
All Ministerial directions would be published, when issued, and Ministers would be accountable to Parliament for the use of their powers in the ordinary way.
NEDO does not see the proposed Policy Councils as additional layers between government and nationalised industries, but more as a permanent means of co-ordinating strategic decisions.