News
09-December 2011
– LGC’s
privatisation cited as a model of
success
LGC highlighted in new report on ‘Getting
better value from public sector research
establishments’
“Some of the privatised organisations, such as LGC…have grown
strongly and profitably since privatisation” states a new report
from CentreForum, the independent, liberal think-tank.
Entitled ‘Getting better value from public sector research
establishments’, the report examines the experience of public
sector research establishments where private sector involvement was
introduced into their ownership and/or management, and compares
that with the experience of research establishments which remained
in the public sector. The report considers whether there is
evidence that effectiveness and efficiency are improved by greater
private sector involvement.
The report highlights favourably the private equity backed model
used by LGC and emphasises how “LGC has grown very strongly and
profitably by a process of spotting technology areas with
potentially broad commercial value, investing in targeted R&D
in these areas, and then leveraged the capital of its shareholders
to make small, strategic acquisitions to bolster capability.”
Whilst it is evident from the report that privatised companies
succeed, the report also discusses the need for some organisations
to remain in government ownership. However, it also
accentuates how “LGC’s very successful operation of the statutory
Government Chemist function demonstrates that with the appropriate
contractual mechanisms even statutory/regulatory functions may be
discharged effectively and efficiently by privatised bodies.”
Download the
report.
-Ends-
Notes to editors