§ Sir John Hannam
To ask the Secretary of State for Defence what capital value was ascribed to Kentigern house, Glasgow in arriving at the comparative costs of provision of the new Army personnel office.
§ Mr. Archie Hamilton
The Government already own Kentigern house, and therefore its capital value was not a factor taken into account in determining the cost of the Army personnel centre. The investment appraisal was carried out in accordance with Her Majesty's Treasury guidelines in these matters and the opportunity cost of utilising space in Kentigern house for the Army personnel centre rather than for other purposes was included. This showed Kentigern house to be the most cost-effective solution.