§ 21. Mr. Doigasked the Secretary of State for Scotland if he will now make an estimate of the final cost of the Nine-wells Hospital in Dundee ; and when it is likely to be completed.
Mr. Edward TaylorThe estimated total cost as published in the 1971–72 Supply Estimates is £18.2 million, but the financial outcome of the arbitration between the contractors and the Eastern Regional Hospital Board cannot yet be estimated. The conclusion of the review referred to in the reply given to the hon. Gentleman on 10th February last is that, instead of the dates announced on 17th December, 1969, some buildings should be handed over before the end of 1972, but total completion cannot now be expected much before the middle of 1973.—[Vol. 810, c. 181–2; Vol. 793, c. 325.]
§ Mr. DoigIs the hon. Gentleman aware that his party had this hospital in its election manifesto in 1955? Is he further aware that architects and consultants are paid on a percentage basis and that their fees up to now exceed £2 million? [HON. MEMBERS : "Shame!"] Is the hon. Gentleman further aware that there is a financial incentive in delay? Will he take steps to end this ridiculous system of paying fees to architects and consultants on a percentage basis?
Mr. TaylorThis is a very serious problem. It is fair to say that the 1961 estimate of £10 million and the 1971 estimate of £18 million are not directly comparable as the latest estimate includes £2½ million for equipment. Additions to the original scheme account for about £700,000 and the rest of the difference is made up mainly in provision for increased prices normal in a construction job of this size and other items incidental to the main development. As to the question of architects' fees, the hon. Gentleman will be aware that we 483 recently agreed with the architects new scales of charges which allow for tapering on major contracts. In fairness, I should say that a major complex such as a teaching hospital would be excluded.