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Biographer Michael Holroyd has described the government's compromise over the future of the Public Lending Right body as "both a relief and an irritation". He also labelled its treatment of Registrar Jim Parker as "ungenerous".
Meanwhile Richard Mollet, chief executive of the Publishers Association, expressed surprise that it had taken the government two years to come to its decision.
The Department for Culture, Media and Sport confirmed this morning (27th March) that Public Lending Right would be transferred from the Stockton-on-Tees organisation, which has run it hitherto, to the British Library.
However the Stockton-on-Tees team will continue day-to-day operations and Parker will remain in post until March 2015, when he will step down, one year earlier than allowed for in his contract.
The government first announced a plan to close down the Public Lending Right body as part of its "bonfire of the quangos" in October 2010. The proposal attracted widespread opposition including from the Society of Authors and the Association of Authors Agents and a public consultation was held between May and July last year.
Holroyd, who has also been an outspoken critic of the plan, told The Bookseller: "The result is both a relief and an irritation. The administration of the Public Lending Right would have been better if it had not been interfered with at all.
"The Government wanted to do away with Stockton-on-Tees and hand everything over to the British Library. But against their will they were legally obliged to hold a public consultation and they have come up with a compromise. That the staff will still be administering the scheme at Stockton is a relief. But I believe they have treated Jim Parker, who is an exceptional Registrar, ungenerously."
He added: "I have little respect for the DCMS."
Richard Mollet, chief executive of the Publishers Association said: "I think the decision to keep the PLR in Stockton is the right one, though I'm surprised it has taken two years to come to this decision. The PA has said before that we think they do a very good job, and we never thought it should change radically. I am sure the British Library will do everything it can to maintain the service."