HC Deb 21 May 1991 vol 191 cc417-8W
Mr. Dunn

To ask the Chancellor of the Exchequer if he will make a statement about the progress of the arrangements introduced in 1990–91 for payment by Government Department clients for works services supplied by PSA Services.

£10,000 to £12,000, £12,000 to £15,000, £15,000 to £20,000, £20,000 to £25,000, £25,000 to £30,000 and over £30,000.

Mr. Maude

Estimates are based on projected information from the 1988–89 survey of personal incomes and the 1989 family expenditure survey and are provisional. They are also based on the assumptions that interest rates remain at their current levels for the rest of 1991–92.

Mr. Mellor

Arrangements for payment were introduced on schedule from 1 April 1990. However, some teething problems with the invoicing arrangements have meant that client Departments have not been able to complete all the normal checks on some of the invoices presented to them by PSAS. In order to ensure that amounts paid by PSAS to contractors on clients' behalf are brought to account in appropriation accounts for 1990–91, interim arrangements have been made. Under these, Departments will pay from their votes, as adjustable advances, amounts shown on PSAS invoices, provided that they can identify the expenditure as relating to buildings or projects for which they are responsible; that they are aware that work has been done, or services provided, in respect of the building or project concerned; and that the amount charged is not grossly excessive. Any payments of this nature will be identified in a note to the appropriation accounts for 1990–91. PSAS will take any significant balance of expenditure reflected in invoices still unmet to its own Vote. Customer Departments and PSAS will pursue outstanding queries and make any necessary adjustments as early as possible in 1991–92. Such adjustments will be noted in the appropriate accounts for that year.