§ Mr. Sumbergasked the Secretary of State for the Environment what is the estimated cost of building the international conference centre at Broad Sanctuary; and if he will make a statement.
§ Sir George YoungI told the House on 30 March 1983 — [Vol 40, c.172] — that the agreed value of the management contract for the centre at first quarter 1982 prices was £35.6 million. In real terms, the current estimate for this work, at £37.4 million, remains unchanged. The overall estimated cost of all work including telecommunications, security equipment and landscaping, which did not form part of the above contract, is £44 million at third quarter 1983 prices. This sum remains within agreed estimates and, as normal includes contingencies, but excludes furnishings.
As announced by my right hon. Friend the then Secretary of State for the Environment on 7 April 1982 — [Vol 21, c. 367]—the Government decided not to proceed with the offer of funding received from the Pearl Assurance Company and instead to use public sector funds to construct the centre. There has been no change in this position. Bovis Construction Limited was appointed in April 1982 as management contractor for the construction of the superstructure. The form of contract was specifically devised by the Property Services Agency and was not a standard Bovis management fee contract. The earlier contracts for the substructure of the centre—which includes the parliamentary telephone exchange—were completed as a separate project before Bovis began work.
Despite an early problem when Willment Brothers Limited, who held two of the sub-contracts, went into liquidation; I am satisfied the the project is on programme and is under effective control.