News and announcements
Green Investment Bank moves to the Shareholder Executive
9 January 2012
Establishing the Green Investment Bank (GIB) is a top priority for BIS. The GIB has a mission to accelerate private finance into the green economy, addressing significant market failures in the financing of green infrastructure projects. It will operate commercially at arm's length from Government, using its funding of £3 billion over this Spending Review period to leverage in as much private capital as possible.
Major policy and strategic considerations around the establishment of the Bank have been agreed across Whitehall and this project is now moving into a new phase which is the establishment of the Green Investment Bank as an operational entity so that its doors can open in 2012.
The Shareholder Executive (ShEx) is the centre for corporate finance expertise across Government, and has been intimately involved in advising the GIB team to date. ShEx is therefore very well placed to support this activity going forward. Hence, as from Monday 9 January, the Green Investment Bank (GIB) will move from the Advanced Manufacturing and Services Directorate in the Business and Skills Group to the Shareholder Executive (ShEx).
The Executive Director of the GIB team will be Oliver Griffiths. Senior Reporting Officer (SRO) responsibilities will move to Mark Russell.
Plans for releasing publicly-held spectrum
9 December 2011
Government has published details of the progress made to free up publicly-held spectrum.The plan sets out how the Government would meet its target of releasing 500 MHz of public sector spectrum by 2020. Government departments have been working to identify bands for release and today's document sets out a shortlist of those bands.
Further information on DCMS News
New Chair of Land Registry
24 October 2011
The Department of Business, Innovation and Skills has today announced the appointment of Mark Boyle as the first non-executive Chair of HM Land Registry.
The introduction of a Chair position, separate from the role of Chief Executive, was one recommendation of a recent Governance Review undertaken by Land Registry. The move will bring Land Registry into line with best practice for corporate governance.
Mark brings a broad experience gained across the corporate and banking worlds and latterly in Whitehall. Mark currently works in the Shareholder Executive in BIS which he joined in 2008 and where he is Chief Operating Officer. Before this he spent 12 years in senior commercial and corporate development roles with Compass Group and with Rentokil Initial, prior to which he spent 15 years in banking with Lloyds and Kleinwort Benson.
Mark's experience in both the public and private sectors will provide strengthened leadership for Land Registry and in particular will help Land Registry contribute to the development of thinking on a Public Data Corporation and how it might best support the Government's public data and economic growth objectives.
Patrick O'Sullivan appointed as non-executive Chairman of the Shareholder Executive
13 October 2011
Patrick O'Sullivan will succeed Philip Remnant, who has been in the post since June 2007, in the first quarter of 2012. Patrick O'Sullivan is currently Chairman of Old Mutual and Deputy Governor of the Bank of Ireland (appointed in 2009). He is Non-Executive Director of COFRA Holding and a past Finance Director of Zurich Financial Services Group.
As Chair, Patrick's key role will be to provide high level strategic direction to the Shareholder Executive. Patrick's appointment is for a period of two years. He will work for the Shareholder Executive one day a week.
Government consults on Mutualisation of the Post Office
19 September 2011
On 19 September 2011 the Government launched a public consultation that explores what a mutualised Post Office Ltd might look like. It seeks feedback for more clarity on the issues that the Government would need to take into account before mutualisation could be achieved. The consultation closes on 12 December 2011.
For more information see the Mutualisation of the Post Office consultation.
Public Data Corporation
4 August 2011
Another significant milestone was reached today in the establishment of a Public Data Corporation. Alongside the Open Data consultation, which sets out Government's overall approach to transparency, Francis Maude and Edward Davey launched a public consultation on Data Policy for a Public Data Corporation.
This consultation engages data users, and the public more generally, in some of the important data policy questions that need to be considered in order to successfully establish a PDC later this year. It explores questions on key aspects of data policy – charging, licensing and regulation of public sector information produced by a PDC that will determine how a PDC can deliver against all its objectives. The responses will then enable Government to reflect on an appropriate policy framework before consideration of the business case and decisions on membership and structure of a PDC are taken in the autumn.
Both consultations will run from 4 August until 27 October 2011.
Cabinet Office press release
Land Registry, Met Office and Ordnance Survey become part of the BIS Family
18 July 2011
The Prime Minister announced today that responsibility for the Land Registry, Met Office and Ordnance Survey will pass to the Department for Business Innovation and Skills (BIS).
The Department’s Permanent Secretary, Martin Donnelly, welcomed the move, which marks a significant step towards establishment of a Public Data Corporation, plans for which were announced by the Government in January this year.
Martin Donnelly said:
“It is good to welcome the Land Registry, Met Office and Ordnance Survey to the BIS family. The talents and abilities of their staff will be a welcome addition to the Department’s teamwork to ensure sustainable economic growth across the U.K.
“Staff and customers should know that these organisations will continue to deliver a high level of service going forward.”
Final decisions on membership, structure and commercial strategy of the Public Data Corporation will be taken later this year, following a consultation on PDC data policy, due to launch over the summer. In the meantime, BIS Minister Edward Davey will jointly chair with the Minister for the Cabinet Office Francis Maude a PDC Transition Board which will consider membership, structure and governance for the PDC.
Postal Services Act 2011
13 June 2011
The Government's Postal Services Bill was read out in the House of Lords and the House of Commons. This means that the Bill has received Royal Assent and is now the Postal Services Act 2011. Further information on the act can be found on the Postal Services pages of the BIS website.
Postal Services Bill agreed by Parliament
9 June 2011
Government legislation to safeguard the future of Royal Mail and keep the Post Office in public ownership has today been agreed by both Houses of Parliament.
Further information can be found in the press release
Sale of Tote to Betfred for £265 million is agreed
03 June 2011
The sale of the Horserace Totalisator Board (the Tote) to the UK bookmaker Betfred for £265 million has today been agreed. This comes less than a year after the Chancellor announced the Government’s intention to resolve the future of the Tote, and follows numerous failed attempts to do so in the past.
Today’s announcement delivers much needed certainty to the Tote and its employees so they can continue to develop the business as part of a larger group for the benefit of all stakeholders. In addition, racing will benefit from payments of more than £155 million as a result of this deal.
The sale has been achieved in line with the Government’s declared objectives of recognising the support the Tote currently provides to the racing industry whilst also securing value to the taxpayer. It is subject to appropriate consultation with employees and is expected to complete in around 4-8 weeks’ time.
Among the specific terms of the deal:
- Betfred has agreed to pay a headline value of £265 million for the business. This is comprised of an initial payment of £150 million and deferred amounts, including accrued interest, of £115 million;
- After deductions including debt and pensions, the net equity value to be paid to Government by Betfred is over £180 million;
- The taxpayer will retain over £90 million as its 50 per cent share of the net proceeds of the sale;
- Racing will receive over £90 million as their 50 per cent share of net proceeds from the sale (use of which will be subject to compliance with state aid regulations). In addition, Betfred has committed to making commercial payments to racing of £11 million to March 2012 and an expected £9 million p.a. over the following six years;
- The Tote Pension scheme will benefit from a £25 million upfront contribution to the plan; and
- Tote employees will have assurances on jobs and an end to many years of uncertainty.
As part of the sale process Betfred will receive an exclusive seven year licence to operate Pool betting operations on all UK racecourses, one condition of which is a requirement to provide pool betting on every approved racecourse in the country.
Betfred have provided a number of undertakings to Government relating to the racing industry and employees, including not to sell on the pool betting part of the business and to continue payment of the Levy to racing even if part of the Tote business subsequently moves offshore, until the Government’s current consultation on off-shoring has concluded and the position has been resolved. They have also publicly committed to the establishment of a Tote Racing Development Board with racing to help run the pool and foster wider collaboration. The Tote brand will remain on all UK racecourses.
Gambling and Racing Minister John Penrose, who has overseen the sale process for the Government said:
"Most people can’t understand why, in the modern world, the Government should be even a part owner of a bookie. So we pledged last year to end years of dithering and resolve the future of the Tote, and today we have done just that. Throughout this process we’ve bent over backwards to deliver a good deal for racing, and for the dedicated Tote staff around the country, so we are pleased that today’s agreement will see racing receive not only their 50 per cent share of net proceeds but also the separate commitment from Betfred to racing of a significant ongoing stream of commercial payments, plus a contractually guaranteed cap on the number of job losses."
Culture Secretary Jeremy Hunt added:
"It was a closely fought contest which has ended up giving the Tote business and the racing industry the certainty they have been looking for. Of the £265 million in the headline price only just over £90 million will end up being paid to the Treasury. So this deal has been carefully calculated to make sure that the interests of racing, Tote employees and the Tote Pension Fund were given the greatest possible weight."
The sale process was led by the Shareholder Executive on behalf of DCMS.
Government was advised during this sale process by Lazard & Co. Limited, Linklaters LLP, and Ernst and Young.
Further information available on DCMS website
