HC Deb 22 January 1990 vol 165 c563W
Mr. Dalyell

To ask the Secretary of State for Defence if he will make a statement on the £9 million increase in his Department's budget relating to the costs of privatisation of the Property Services Agency; and if he will give details.

Mr. Archie Hamilton

The £9,182,000 increase in the Ministry of Defence's cash limit for 1989–90 to which the hon. Member refers is not connected with the decision to privatise the Property Services Agency announced on 26 October 1989. It is the share borne on Class 1, Vote 4 of additional expenditure arising from the reorganisation of the PSA on more commercial lines in preparation for Government Departments being untied for works services from 1 April 1990. The principal areas of expenditure covered information technology support, the setting up of the Business Development Directorate and the taking over of some functions of the Crown Suppliers such as the Government car service.

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