07 July 2006
Public sector regulatory bodies facing merger should look to the successes of Ofcom, government auditors said this week.
The broadcasting regulator, which began operating in 2003, brought together the work of five bodies: the Broadcasting Standards Commission, the Independent Television Commission, the Office of Telecommunications, the Radio Communications Agency and the Radio Authority.
A National Audit Office assessment found the merger brought many of the expected benefits. But there was criticism of the lack of measures at the start of the process to determine whether the merger was a success.
The merger was funded by a £56m loan from the Department of Trade and Industry, but NAO investigators determined that the full costs were more than £80m. The July 5 report urges Whitehall departments to give serious consideration to likely costs before sanctioning any mergers.
The government proposes to streamline the 11 public sector watchdogs into four super-regulators covering education and children's services, health and social care, criminal justice, and local services.
The report includes 14 specific recommendations.
Commenting on the report, Public Accounts Committee chair Edward Leigh said: 'It is easy for policymakers in government to decide bodies should be merged together and imagine it will automatically change things for the better.
'This report shows that mergers are both hard work and costly.'
PFjul2006
