§ Mr. J. Morrisonasked the Financial Secretary to the Treasury what is the basis for reckoning that 20 per cent. should be added to the rest of costs as administrative expenses to cover work done by Government officials in connection with any Departmental expenditure which is chargeable to the individual citizen.
§ Mr. SimonWith the exception of certain services to the public which are subsidised at a matter of Government policy, charges to individual citizens for work done by Government Departments or agencies are calculated to recover at least the full cost of the service as recommended by the Ramsey Committee in 1927 (Cmd. 2950). The method usually adopted is to add to the direct costs a percentage to cover administrative expenses and any other overheads. The percentage addition varies according to 55W the relationship between the total overhead expenses for particular services and the direct costs of these services.