§ 28. Mr. Shepherdasked the Minister of Public Building and Works what is the charge made by his Department for designing, engineering and supervisory services in respect of buildings erected for other Departments.
§ Mr. C. PannellThe cost is normally borne on my Department's Votes. When recovered from another Department, an addition of 20 per cent. is made to the cost of construction.
§ Mr. ShepherdIs not this figure of 20 per cent. on the cost outrageous? Will the right hon. Gentleman say what is the normal cost which is charged as a percentage of total building operation so that the House can compare it with the normal charges which obtain for professional advisers outside?
§ Mr. PannellThe charge covers the full range of services provided, including salaries, accommodation and associated costs, and is calculated from the cost of the service performed in relation to the Ministry's staff bill. The charge of 20 per cent. is a flat rate but applies to all clients with a few minor exceptions.
§ Mr. ShepherdThe right hon. Gentleman has not answered my question. What does it amount to as a percentage of cost on average?
§ Mr. PannellThe original Question did not ask for that information, but I would be prepared, of course, to take up with the hon. Member specifically any matters which he has in mind. This is a case of the swings and the roundabouts. It was intended to give a global answer, not an evasive one.
§ 29. Mr. Shepherdasked the Minister of Public Building and Works what is the charge made by his Department for acquiring freehold and leasehold building for other Departments.
§ Mr. C. PannellFor the Post Office, the full cost of the staff time spent on acquiring premises for them. For an Exchequer department, our out-of-pocket expenses: for a non-Exchequer body a sum equal to the scale fee of the Royal Institution of Chartered Surveyors.
§ Mr. ShepherdCan the right hon. Gentleman say whether the Government Departments are allowed any freedom to use either the services of his Department or the services of outside bodies, if they think that these services are to be preferred?
§ Mr. PannellNo, Sir. Generally speaking, we do this for the Post Office, but, of course, we often put the work out to other people, that is all. But we act as the general agents for the Post Office.