§ Mr. TippingTo ask the Secretary of State for the Environment whether it is his intention that in an area reviewed by the Local Government Commission short-term start-up costs will be offset by future savings.
§ Mr. BaldryWe have said on our guidance to the commission that change to the structure of local government should be worthwhile and cost-effective over time. Cost-effectiveness cannot be measured purely in financial terms, but for most review areas we would expect structural change to produce financial savings.
§ Mr. TippingTo ask the Secretary of State for the Environment whether the Local Government Commission is precluded from recommending an option which results in transitional costs which are not offset by future savings.
§ Mr. BaldryThe policy guidance which we issued to the commission in November 1993 provides that the commission
is not precluded from recommending an option which would be marginally more expensive than the status quo if the extra cost would be outweighed by other considerations.
§ Mr. TippingTo ask the Secretary of State for the Environment (1) how any net transitional or ongoing costs are to be met in areas reviewed by the Local Government Commission if future ongoing savings are not identified;
(2) how the additoinal ongoing costs in respect of options, put forward by the Local Government Commission in areas reviewed, which are more expensive than the status quo, are to be met by the new local authorities.
§ Mr. BaldryWe expect recommendations which would be more expensive than the status quo, or which would not lead to ongoing savings, to be the exception. We shall look at the issue of any additional ongoing costs in the light of particular recommendations. We are currently considering the treatment in years after 1994–95 of all aspects of transitional costs.