§ Mr. JanmanTo ask the Secretary of State for the Environment (1) what grant in aid the National Rivers Authority is receiving for its laboratory investment programme; what assessment has been made of the impact of running costs in such a programme as against contracting out these services; and what is his policy towards funding such work;
(2) what cost-benefit analysis was undertaken before the National Rivers Authority reversed the original intention of contracting out analytical requirements; and if he will make a statement.
§ Mr. Heathcoat-AmoryThe National Rivers Authority may claim grant in aid in respect of that part of its laboratory investment programme which is not financed by cash transfers from water and sewerage undertakers. The total net cost of the programme is not yet known, but amounted to some £2 million in the period 1 September 1989 to 31 March this year.
In those regions where water authorities transferred one of their laboratories to the authority a full cost-benefit analysis was not thought appropriate. In those regions where new laboratories were to be provided and where contracting services were, or might have been, available a comparative cost analysis was carried out to assess whether building new laboratories was the best way of providing the required capability.
500WI am satisfied with the decisions reached on the authority's ownership of its own independent laboratory facilities and that grant in aid should support their provision.
§ Mr. JanmanTo ask the Secretary of State for the Environment what is the estimated cost of new laboratory facilities at Reading for the National Rivers Authority; and what is the estimated annual revenue cost of undertaking analysis in-house as against contracting out.
§ Mr. Heathcoat-AmoryThe estimated capital cost of the National Rivers Authority's new Reading laboratories is £3.62 million. The estimated annual revenue cost of using it to undertake analysis in-house is £1.02 million, compared with a contracting-out cost of £1.31 million.
§ Mr. JanmanTo ask the Secretary of State for the Environment whether the National Rivers Authority is able to compete for and perform any third-party work.
§ Mr. Heathcoat-AmorySection 145 (2) of the Water Act 1989 gives the National Rivers Authority power to carry out work for other public bodies. It also has general powers to do anything which, in the opinion of the authority, is calculated to facilitate, or is conducive or incidental to, the carrying out of the authority's functions.