25 January 2002
Committee chair Edward Leigh said that the Radiocommunications Agency's partnership with CMG had achieved value for money and should be considered as a potential model for future public-private ventures.
The Radiocommunications Agency is responsible for managing and regulating the civil radio spectrum in the UK. The joint venture company Radio Spectrum International was set up in 1998 with the remit to export radio IT expertise. The secretary of state at the DTI owns 30% of the company.
Initially, RSI lost money but a recent restructuring has helped save £8m over the agency's previous arrangements.
Leigh said RSI had been adept at managing risk and protecting the public interest in the company and noted that the Treasury `should disseminate these lessons through the guidance [for public-private initiatives] they are developing for all departments.'
PFjan2002
