HC Deb 06 July 1989 vol 156 cc272-3W
Mr. David Porter

To ask the Secretary of State for the Environment what progress has been made towards establishing the Queen Elizabeth II conference centre as an executive agency; and if he will make a statement.

Mr. Chope

I am pleased to announce that the Queen Elizabeth II conference centre will today become an executive agency of the Property Services Agency.

The centre provides secure conference facilities for national and international Government meetings up to the highest level. It also markets its facilities commercially, competing for business on quality and price with a wide range of public and private undertakings, both at home and overseas. The centre has already achieved a great deal since it opened in 1986. Establishing it as an agency will give it additional management tools to develop its business further on increasingly commercial lines, and the scope to compete even more effectively in a highly competitive national and international market.

The centre will be expected to reduce progressively its net cost to the Exchequer. To this end I have set progressively more demanding targets against which its future progress and performance will be assessed. Peat Marwick McLintock management consultants have been commissioned to undertake a full review of the centre's performance since it opened, and to consider the possibilities for further improvements in the future. They have been asked to advise on specific targets and performance indicators. Their recommendations will influence the Government's decisions on financial and other targets for incorporation in the corporate plan and business planning process. Meanwhile I have instructed the centre chief executive to seek to increase controllable revenue and decrease expenditure each by 2½ per cent. per annum compared with the centre's previous forecast so as to produce a surplus before interest, depreciation and rates of £50,000 in 1989–90, £200,000 in 1990–91 and £320,000 in 1991–92.

Mr. Roy Kendrick, who has been responsible as general manager for the successful development of the centre's business since its opening, has been appointed chief executive of the new agency. I wish him and his staff every success in their continuing endeavours.

Copies of the framework document are being placed in the Library of the House.