§ Mr. James Whiteasked the Secretary of State for Scotland whether he will make a statement on his offer of grant to the city of Glasgow District Council towards 187W the cost of the proposed gallery to house the Burrell Collection.
§ Mr. MillanThe district council has not as yet accepted my formal offer of grant made on 23rd September 1976. Subject to certain minor conditions, the offer was of 50 per cent. of the lesser of the following amounts, after deducting what was still available of the sum left by Sir William Burrell for the housing of his collection:
- 1. The total cost estimated by the former Glasgow Corporation at £8 million at July 1974 prices revalued to take account of changes in prices between July 1974 and the date of the tender, together with certain other additions; and
- 2. The total tender date construction cost as approved by me on the basis of a tender related to the design proposals.
Contrary to recent Press reports, the estimate of £8 million at July 1974 prices, and therefore the above offer, included the cost of necessary electrical and mechanical equipment, which represents a considerable part of the total estimate.
On 10th February 1977 the district council asked that a different index should be used to revalue the total cost of the project on the grounds that the basis I proposed did not take sufficient account of the increase in the cost of mechanical and electrical equipment since 1974 compared with other building costs. Since then there have been detailed discussions with the district council about the revaluation formula, and I hope to write to the council shortly with my decision on the matter.
Subject to this, there has been no change in the offer of grant which I made last September, which, I emphasise again, was made and remains on the basis of total costs, including necessary electrical and mechanical equipment.