§ Mr. RedmondTo ask the Secretary of State for Defence what(a) asset rent and (b) internal charging systems apply to budget holders in his Department; and if he will make a statement.
§ Mr. SoamesUnder the new management strategy introduced in 1991, budget holders have gained progressively greater authority for and control of resources they require to undertake the tasks set out in their management plan. More recently, one of the benefits of the proposals envisaged from the introduction of resource accounting and budgeting announced by the Chancellor of the Exchequer in his November 1994 Budget is the greater visibility of the investment in capital assets by central Government. Consequently, a number of project teams are developing appropriate mechanisms to assist budget holders to use defence assets more efficiently. Resource accounting and budgeting will provide budget holders with increased awareness of the cost of services provided by one subordinate formation to another so as to inform choices on resource mix and usage. This aligns with one of the objectives of the financial management reforms arising from the defence cost study. In support of this process, the use of charges for defence estate occupation is under consideration.