History and background

The Radiocommunications Agency is responsible for most non-military radio spectrum matters in the UK. It was established as an Executive Agency of the Department of Trade and Industry (DTI) in April 1990. The Agency's objectives are discussed in the preceding pages. The Agency is funded through the Department of Trade and Industry Resource Account for 2001/02, Request for Resources 1: Increasing UK Competiveness. HM Treasury's Accounts Direction dated 26 February 2002, under the provisions of Section 7 (2) of the Government Resources and Accounts Act 2000, requires the Agency to comply with the accounting principles and disclosure requirements of the Resource and Accounting Manual, which is in force for the year ended 31 March 2002. These accounts comply with the Accounts Direction.

Results and appropriations

The surplus for the year amounted to £71.6M (2000/01: £58.8M). Details of the amount surrendered to the DTI and other movements on the General Fund are shown in Note 12.

The Agency achieved its key financial target for the year which required it to cover its costs (see note 3). Performance against other measures is listed on Tables 8 and 9 of the Annual Report.

Review of activities

The activities of the Agency and development of its business are reviewed in the Annual Report.

The Agency began an auction for the remaining 26 licences for Broadband Fixed Wireless access at 28Ghz (not taken up in the original auction in October 2000) but no bids have been received to date. The auction is scheduled to continue until October 2002. There is no new provision for deferred income (see notes 16 and 17 for more information).

In the light of growing demands on spectrum use, the opportunities presented by the proposed new regulatory framework and greater use of market-based tools, the Chancellor of the Exchequer and the Secretary of State for Trade and Industry commissioned an independent review of the principles that should govern spectrum management to ensure efficient use of spectrum. The review was carried out during 2001/02 under the leadership of Professor Martin Cave and the resulting report was presented to Ministers during February 2002. This report was published on 6 March 2002 and the Agency is required, in consultation with other interested parties, to provide a response in summer 2002.

The Public Accounts Committee reviewed reports produced by the National Audit Office on the Agency's administration of the 3G Auction and the establishment of its joint venture partnership with CMG. Both hearings were complimentary of the Agency's performance.

The joint venture company, Radio Spectrum International Consulting Limited known as RSI, traded profitably in its business of providing the resources required to meet the Agency's IT needs. RSI also continued with its efforts to build on the Agency's internal connections by providing consultancy services to overseas administrations. See Note 8 for details. The Agency's share of RSI's dividend for the year ended 31 December 2001 was £280,500.

There are no other special factors that affect these accounts.

Fixed assets

The changes in fixed assets are detailed in note 7 to the accounts.

The Agency continues to invest heavily in IT to improve its services to customers, and to contribute to the government's e-commerce targets. There has also been substantial investment in new equipment to monitor spectrum usage.

Future developments

The Agency's management continues to be committed to modernising business processes in order to improve efficiency and customer service, in line with the objectives of the Modernising Government initiative. This requires considerable ongoing investment in IT services and development.

The Government passed an Office of Communications Act in March 2002 which paved the way for the creation of OFCOM. This will permit a Board to be appointed to oversee the creation of the new body. The Agency will work closely with the other four organisations involved (Radio Authority, Independent Television Commission, Broadcasting Standards Commission and Office of Telecommunications) and the consultants appointed to make proposals to the OFCOM Board on all operational issues.

The Government also published a draft Communications Bill (issued 7 May 2002) inviting comment from all interested parties on the establishment of OFCOM. The legislative process is not expected to be completed until the second half of 2003 and the new organisation will not be operational until January 2004 at the earliest.

The Cave Review may have a significant effect on the way that the Agency manages the spectrum. Some proposals are wide ranging, in particular those that relate to selling some of the spectrum for private leasing, and will have considerable resource implications if not carefully managed.

Management Board

The Chief Executive is the Accounting Officer responsible for the day to day running of the Agency. He is assisted by the Agency's Management Board which comprises the Chief Executive and Directors responsible for each Executive as follows:

The Chief Executive and Directors are appointed under the terms of the Civil Service Management Code. Information on their remuneration is given in note 4.

Steering Board

Chairman:
Mr Jonathan Spencer
Director General
Business Competitiveness Group, DTI
(resigned 31 January 2002)

Mr Mark Gibson
Director General
Business Group, DTI
(appointed 1 February 2002)

Members:
Ms Jane Tozer
Managing Director,
JET Consulting

Mr Bill Dennay
Consultant

Mr Alan Wright
Director
Resource Management, DTI
(appointed 8 April 2002)

Mr David Edmonds
Director General,
Office of Telecommunications (OFTEL)

Mr Rob Meakin
Consultant

Mr David Hendon
Director
Communications and Information Industries Division, DTI
(until 7 April 2002 - Chief Executive Radiocommunications Agency)

Mr Michael Goddard
Acting Chief Executive
Radiocommunications Agency
(acting Chief Executive from 8 April 2002)

Mr William McIntyre CB
Director
Communications and Information Industries Division, DTI
(resigned 5 April 2002)

Dr Philippa Lloyd
Director
Resource Management, DTI
(resigned 5 April 2002)

Members of the Steering Board who are not civil servants are offered fees of £4,000 per annum, and reimbursement of reasonable travelling expenses. Members who are civil servants do not receive these fees.

Supplier payment policy

The Agency aims to pay valid invoices within 30 days of receipt or as agreed with suppliers. In 2001/02, this was achieved for 100% of invoices. No payments were made under the Late Payment of Commercial Debt (Interest) Act 1998.

Disabled persons

The Agency's policy is to promote equal opportunity for all, regardless of disability. Wherever possible, every effort will be made to ensure that staff stay in their current post should they become disabled while an employee in the Agency; alternatively wherever possible, they will be provided with an alternative post which makes use of their expertise. The Agency was accredited with the Disability Two Ticks symbol in June 2001, has been applying the principles of this commitment and has already made progress towards being re-accredited in 2002.

Equal opportunities and diversity

The Agency is committed to the principle of equality of opportunity and respects the diverse society in which it operates. Being fair to people and recognising that people have different skills and attributes to contribute is at the heart of that commitment. The aim is to ensure that all employees and job applicants are treated equally regardless of their gender, marital status, race, colour, ethnic or national origin, nationality, sexuality, disability, age, religion, employment status or trade union activities. The Chief Executive has continued to support the Commission for Racial Equality's Leadership Challenge and has a programme of action to implement and reinforce its equal opportunities and diversity policy, which is described in the Annual Report. Our policy is line with the DTI policy and builds on statutory obligations of employees under the Sex Discrimination Act 1975, the Race Relations Act 1976 and the Disability Discrimination Act 1995.

Employee involvement

The Agency encourages teamwork and communication between staff at all levels in the organisation. Business and other issues that may be of interest or concern are brought to the attention of staff at various levels in a variety of ways.

There is ongoing dialogue, both formal and informal, with trade union representatives.

The Agency is committed to training and developing its staff as an integral part of achieving business success, as exemplified by its re-accreditation to the new Investors in People standard in May 2002. Details of current development programmes are given in the Annual Report.

Auditors

These accounts have been audited by the Comptroller and Auditor General.

Michael Goddard
Acting Chief Executive
03 July 2002