WORKERS at one of Hampshire's biggest employers have been warned that job losses cannot be ruled out following a sweeping government shake-up.

The warning from the boss of Ordnance Survey, in Southampton, comes after it was announced the business would become a government-owned public company by spring in 2003 - one of the biggest transformations in its 200-year history.

Speaking exclusively to the Daily Echo, Ordnance Survey chief executive and director general, Vanessa Lawrence, pictured, said the 1,400 strong workforce would have to find "better more efficient ways to operate" if the business was to thrive.

But she stressed that full privatisation of the business had been effectively shelved - at least in the foreseeable future.

She added that more jobs would be created in key sectors such as information technology.

She said: "This is not a contraction plan. There is no agenda for job cuts but we can't offer any guarantees. We obviously can't rule job losses out.

She went on: "If we become a government-owned company, we will be able to adopt the best practices of the private sector balanced by a public sector ethos.

"It will ensure that we are able to develop and deliver our products and services more effectively, while continuing to provide national coverage of quality, definitive geographic information backed by the stamp of government integrity. But we must be certain that this is a cost-effective way forward which brings real benefits. We look forward to the further work that will be undertaken before a final decision is taken."

The planned change in status at Ordnance Survey was announced by the government yesterday following an independent review of the organisation.

The review procedure has ruled out privatisation but recommended that the OS became a government owned company by April 2003.

Stage Two of the review process, the end of which is likely to see the Ordnance Survey become a public limited company, will begin early next year.

Prospect, the trades union representing most of the Ordnance Survey staff, welcomed the news that the organisation would not be privatised or set up as a private public sector partnership.

But it urged government ministers to improve pay and conditions for staff as recommended in the report.

Elizabeth Jenkins, national officer for Prospect, said: "This is a well argued report by independent consultants. It recognises that pay and conditions have been held down by the Treasury and this has damaged the Survey's ability to modernise.

"None of this has prevented Ordnance Survey from maintaining its world-beating status in mapping. The need is to ensure that any future shake-up at the agency does not jeopardise that success."

See pages 2 & 3 of today's Daily Echo to read the answers Vanessa Lawrence, chief executive and director general of the Ordnance Survey, gave to questions posed by our reporter David Newble.