HISTORIC PRESS RELEASE : More Commercial Freedom for a More Commercial Future – Modernising the Royal Mint [July 1999]

The press release issued by HM Treasury on 9 July 1999.

Greater commercial freedom for the Royal Mint, making best use of new opportunities to expand its business into new areas and developing partnerships with the private sector, were announced by Economic Secretary Patricia Hewitt today.

Ms Hewitt said:

“More commercial freedom, to win more business : that is what we promised for the Royal Mint and that is what we have delivered.

“This is a bold step forward in the Government’s approach to managing its agencies. These measures – including steps to bring corporate governance and financial reporting more closely into line with best commercial practice – will enable the Royal Mint to update the way it is run in today’s modern commercial and business world and make it fit for the twenty first century

“The new framework will make the Treasury a better shareholder and the Royal Mint a better enterprise. It will also ensure that the Royal Mint makes the best possible use of the opportunities it faces. That includes the ability to offer an extended range of goods and services and to make fuller use of its expertise and capacity.”

The new framework includes provision for :

• a new Treasury panel of top private sector analysts and managers to provide more rigorous shareholder discipline and inject greater private sector expertise into the Treasury’s oversight of the Royal Mint as shareholder;
• a better defined role for non-executive directors of the Royal Mint, who, like the directors of private companies, will in future have a clear responsibility to enhance the prosperity of the business over time;
• bringing the Royal Mint board more closely into line with best private sector practice, in particular by bringing the number of executives and non-executives into more even balance;
• financial reporting that is more closely aligned with that of private companies, making it more easily understood by customers, potential partners and analysts;
• the expertise of the panel to be used to improve and sharpen the incentives on the Royal Mint, with the aim of making its decision making more transparent, and more commercial.

These changes complement a relaxation of controls which have previously restricted the Royal Mint’s activities. At present, the Royal Mint can only make coins and medals. In future it will be free to exploit its technical skills and assets by offering a wider range of products, such as jewellery, and expanding into non-coinage business, where it is commercially viable. It will also be able to participate in a wider range of ventures with the private sector. These changes will enable the Royal Mint to reach its full potential, on its own or in partnership with private sector firms.

Ms Hewitt added :

“The package is essential to the running of a good, modern forward-looking business. The Royal Mint has a successful track record. In recent years it has delivered ever-improving efficiency to the benefit of UK taxpayers, and has seen its business grow internationally, making it a world leader we can all be proud of.

“Today we have taken a first important step in laying the foundations for the Royal Mint’s future prosperity to the benefit of all stakeholders which marks the start of an ongoing process of improvement and development. The world coinage market is increasingly competitive, marked by constant innovation. The Royal Mint must be ahead and stay ahead of the game if it is to thrive. We cannot stand still if we want to maintain its position at the forefront in the global marketplace.”

The announcement follows a detailed review of a range of possible options for developing the Royal Mint. The review was wide ranging with the aim of identifying the actions needed to position the Royal Mint for closer partnership with the private sector.