§ 16. Mr. Murtonasked the Minister of Housing and Local Government whether he will make a statement about the recent £7½ million project by Southwark Council's Direct Labour Department.
§ Mr. MacCollThis scheme for about 1,400 dwellings was approved in 1966 on the basis that a separate management team should be employed, as advised by the National Building Agency. This team was set up, with the assistance of management consultants. I understand that work proceeded well to start with, but the month-to-month cost control revealed early this year that costs were beginning to exceed estimates; progress was also falling behind schedule. The council has now decided to bring in Messrs. Bovis Ltd. on a fee basis to manage the remainder of the work for it. Messrs. Bovis estimates that the cost will exceed the original estimate by about 13 per cent.
§ Mr. MurtonIn view of the fact that excess costs are already in the nature of £400,000 and that the consultants' fee is £20,000, will the Minister confirm or deny that further excessive cost, in excess of £150,000, are very likely to take place?
§ Mr. MacCollI think it too early to reach a final figure on what the increase will be.