§ Mr. HoyleTo ask the Secretary of State for the Environment if he will list the business ventures that made use of Warrington and Runcorn development corporation property; how long each of them used the property rent-free; and how much in each case was eventually deducted from fees paid by the corporation to take into account the use of its property.
§ Mr. Chope[holding answer 12 July 1990): Although Warrington and Runcorn development corporation did not at the outset charge business ventures directly for the use of its property, the fees which the corporation paid to business ventures were exclusive of accommodation costs. This ensured that the costs incurred by the corporation were no greater than if the work of business ventures had been retained in-house. The absence of a direct rental charge to business ventures did not represent a subsidy. After the first year the development corporation reduced the fees it paid to business ventures to reflect the use they made of its accommodation in carrying out work for other clients. The period over which each business venture used corporation property and the fee reduction in respect of work for other clients are as follows:
503W
£ Mainmet 1 August 1988 to 30 September 1989 Nil Dixon Webb 1 October 1988 to 30 September 1989 Nil
§ Mr. HoyleTo ask the Secretary of State for the Environment whether business ventures supported by the Warrington and Runcorn development corporation paid the bills covering rates, heating and lighting(a) during the period they used corporation property rent-free and (b) after the corporation had started to make deductions for the use of its property.
§ Mr. Chope[holding answer 12 July 1990]: Since the fees paid by Warrington and Runcorn development corporation to business ventures were exclusive of accommodation costs, it would not have been appropriate for the business ventures to have paid bills covering rates, heating and lighting. However, these items were taken into account in the adjustment to fees paid to business ventures to reflect the use they made of corporation accommodation in carrying out work for other clients.
§ Mr. HoyleTo ask the Secretary of State for the Environment what savings were made as a consequence of the privatisation of Warrington and Runcorn development corporation services; what records were kept to show what savings had been made; and whether the contracts awarded to these business ventures will be offered for competitive tender when they come up for renewal.
§ Mr. Chope[holding answer 12 July 1990]: Business ventures were established on the basis that they should cost Warrington and Runcorn development corporation no more than the cost of retaining the work in-house. Budgetary controls were used, and appropriate records kept, to ensure that this objective was achieved. It is the normal policy for the Commission for the New Towns to let contracts on the basis of competitive tender.