§ Dr. Cunninghamasked the Secretary of State for the Environment what is the cost of computer time used in calculations relating to the 1983–84 rate support grant settlement and subsequent supplementary reports; and if he will estimate expenditure so far incurred in connection with the 1984–85 rate support grant settlement.
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§ Mr. Patrick JenkinThe total cost of computer time — usage and storage — used in calculations for the 1983–84 rate support grant settlement and first supplementary report for that year is estimated to be about £400,000, including VAT. Expenditure incurred up to the end of November in connection with the 1984–85 RSG settlement is estimated at £260,000, including VAT.
§ Mr. Chopeasked the Secretary of State for the Environment in which country the computer calculations for the rate support grant are now carried out; and what are the costs of these calculations.
§ Mr. Patrick JenkinAll the final calculations for the 1984–85 rate support grant settlement were carried out using computer facilities in this country. Following a competitive tender, my Department, earlier this year, awarded a new contract for this work to a small, United Kingdom —owned bureau. Previously the work had been held for a number of years by two large American--based bureaux, with some of the computing work carried out in Holland.
The changeover is expected to yield cost savings of up to £200,000 per annum in future years. Expenditure for the current financial year — 1983–84 — with commercial bureaux for all RSG work, including supplementary reports and development work on grant-related expenditures, is estimated at £600.000, including VAT.
Some additional expenditure is incurred on internal computing facilities in the analysis of local authority returns and payment of RSG.