§ Mr. Silvesterasked the right hon. Member for Taunton, as Chairman of the Public Accounts Commission, what action has been taken to acquire a single headquarters building in London for the National Audit Office in accordance with the recommendations made by the Public Accounts Committee.
§ Mr. du CannIn paragraph 19 of its First Report (HC 290 dated 9 March 1984) the Public Accounts Commission informed the House that it had approved in principle the proposal that a single headquarters building in London should be acquired during 1984–85. The National Audit Office is currently accommodated in 28 different offices in London.
On 24 July the Commission considered a proposal from the Comptroller and Auditor General that he should purchase the former Victoria air terminal from British Airways and adapt it for use as the headquarters office for the National Audit Office. This building will provide the office space required for the foreseeable needs of the National Audit Office. It is suitably located for access to Government Departments and the Palace of Westminster. The building will require alteration and refurbishment, but it should be available for occupation in the autumn of 1985.
In his search for a headquarters building over the past 12 months the Comptroller and Auditor General has had advice from the Property Services Agency and a leading firm of surveyors on all suitable properties available on the market. The Comptroller and Auditor General is of the opinion, which the Commission accepts, that the terminal building is suitable and is more economical than any alternative building known to be available. Some 23 alternative locations have been considered.
The cost of acquisition of a 127-year lease at a peppercorn rent—it has not so far proved possible to purchase the freehold — and adaptation and refurbishment of the building, on the basis of a full survey and advice from two professional firms, is estimated to be up to £22.7 million, falling for payment in 1984–85 and 1985–86. The Commission considered the alternative options of outright purchase or rental on the assumption that private finance could be secured for purchase and refurbishment. It is satisfied, from a detailed investment appraisal undertaken by the Comptroller and Auditor General following standard Treasury guidance, that purchase is by far the more economical course to adopt. It would also be more economical, as well as more efficient, than continuing to occupy a large number of different rented offices as at present.
The Treasury has informed the Commission that it supports the conclusion that immediate purchase is the option to be preferred.
The Public Accounts Committee has for the past two years been urging early action to provide the National Audit Office with a single headquarters building in London. It has advised the Commission that the terminal appeared to it to meet satisfactorily the needs of the 277W National Audit Office provided that the Commission was satisfied on detailed investigation that this was an economic investment.
The Commission has concluded that this building will provide a cost effective solution to the National Audit Office's needs. It will be more economical than any alternative option, including that of continuing in existing rented offices. It will also enable the National Audit Office to achieve increased efficiency in providing Parliament with the service which it has a right to expect.
Accordingly, a contract for the acquisition of the building was signed on 25 July.
Taking account of provision already made, the net extra provision required in 1984–85 on the Vote for the National Audit Office (Class XIII B Vote 1) will be up to £12.5 million. The Commission will seek parliamentary approval for this new service in a Winter Supplementary Supply Estimate. Pending that approval, any urgent expenditure will be met by repayable advances from the Contingencies Fund.