HC Deb 31 October 1986 vol 103 cc274-5W
Sir Eldon Griffiths

asked the Secretary of State for the Environment what estimate he has made of the cost of the Property Services Agency's proposed reorganisation of its United Kingdom territorial organisation in each of the years 1987 to 1991, respectively; and how additional public expenditure will be incurred.

Mr. Chope

The present estimated net costs and savings arising from reorganisation of the United Kingdom territorial organisation are as follows:

Year £ million
1987–88 Cost 1.65
1988–89 Saving 1.09
1989–90 Saving 7.86
1990–91 Saving 5.91

There are further substantial savings in later years and an investment appraisal shows that pay-back is expected to occur in 1989–90. Apart from these savings the reorganisation will produce substantial benefits, which cannot be quantified, through better service to clients and better value for money. It fulfils the recommendation of the PAC made in its 30th report 1983–84 and its 19th report 1984–85 that the chain of command should be shortened.

Sir Eldon Griffiths

asked the Secretary of State for the Environment what estimate he has made of the additional costs and prospective savings to be realised in the eastern region of the Property Services Agency in the course of its proposed reorganisation.

Mr. Chope

In my reply to my hon. Friend today I have given him the net costs and savings arising from the reorganisation of the UKTO throughout the country. These figures include savings from increased managerial efficiency through the organisation as a whole. Specific figures for individual areas are therefore not available.

Mr. Irving

asked the Secretary of State for the Environment (1) what will be the total cost to carry out the proposed re-organisation of the Property Services Agency;

(2) what are the estimated annual savings that will result from the re-organisation of the Property Services Agency; and, in particular, what are the estimated annual savings which may result from the proposed closure of the Cheltenham area office.

Mr. Chope

The present estimated net costs and savings arising from reorganisation of the United Kingdom territorial organisation are as follows:

£ million
1987–88 1.65 cost
1988–89 1.09 saving
1989–90 7.86 saving
1990–91 5.91 saving

There are further substantial savings in later years and an investment appraisal shows that pay-back is expected to occur in 1989–90. Apart from these savings the organisation will produce substantial benefits, which cannot be quantified, through better service to clients and better value for money. It fulfils the recommendation of the PAC made in its 30th report 1983–84 and its 19th Report 1984–85 that the chain of command should be shortened.

The net costs and savings include savings through from managerial efficiency through the organisation as a whole. Specific figures for the Cheltenham area office are not available.

Mr. Robert Banks

asked the Secretary of State for the Environment if he will list the present number of personnel employed by the Property Services Agency in the Leeds area at each of the buildings occupied, the square footage of space provided at each address with the annual cost per square foot where rentals apply.

Mr. Chope

Buildings occupied by the PSA in Leeds are:

Building Staff Area Occupied Sy ft Cost Where rentals Apply
Government Building 223 46,200 Freehold
Lawnswood
Liverpool Victoria 59 8,900 £4.1 per sq
House Headingly ft rent
District Works Office 141 221,000 Freehold
Kirkstall Road
1 Including 15 industrial
2 Including workshops

Mr. Gregory

asked the Secretary of State for the Environment what alternative office accommodation is being considered for the staff currently employed at the PSA area works office in York; and at what cost per square foot by comparison with existing accommodation.

Mr. Chope

[pursuant to his reply, 28 October 1986, c. 116]: The intention is to base all staff transferred to Leeds at the regional headquarters at Lawnswood, Leads, but because of other changes on the Government estates it will be necessary to base some staff in accommodation elsewhere in Leeds which has not yet been identified and costed.

The cost per square foot for accommodation at Lawnswood is £4.35 as against £3.65 for the present accommodation in York.

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