§ Mr. MorganTo ask the Chancellor of the Exchequer (1) when his departmental guidelines on cost-benefit analysis for all Government-sponsored or supported infrastructure projects were last updated with respect to the treatment of betterment; [5470]
(2) if he will list the occasions during the past 10 years when there was prolonged and significant disagreement between his Department and spending Departments over the interpretation of cost-benefit analysis carried out into major infrastructure project proposals; what sanctions he has to enforce his interpretation of his Department's cost-benefit analysis; and if he will make a statement; [5447]
(3) if he will list the occasions on which spending Departments have proceeded with Government-sponsored or supported infrastructure projects (a) against the advice or (b) without the approval of his cost-benefit analysis unit: [5474]
(4) if he will list the main elements of the procedure for resolving disputes between his Department and spending Departments concerning the approval by Departments of Government-sponsored or supported infrastructure schemes and the correct interpretation of cost-benefit analysis carried out on infrastructure project proposals; and if he will make a statement. [5469]
§ Mr. Waldegrave[holding answer 21 November 1996]Guidance for officials and managers in central Government Departments with responsibility for the appraisal and evaluation of proposals entailing central Government expenditure is set out in "Economic Appraisal in Central Government: A Technical Guide for Government Departments"—HM Treasury, HMSO, April 1991—known as the Green Book.
The Green Book describes the principles of appraisal and project evaluation, and provides for specialist readers, technical guidance on issues of wide application in central government, including agencies.
Departments approve major capital projects within their delegated limits and responsibility lies with individual departmental accounting officers to ensure value for money.
Above delegated limits approval is subject to agreement by the relevant Treasury expenditure team that the proposed expenditure provides value for money in terms of public expenditure. A central unit in the Treasury provides general guidance, it does not approve individual projects.
The Green Book provides general guidance. From time to time, more specific guidance is written on particular issues such as the use of land and buildings. An annex on land and buildings, which refers to the treatment of betterment, is in the current version of the Green Book. In addition, and for many applications, departments develop and maintain their own guidance tailored to their specific needs and consistent with the conventions set out in the Green Book.
The current edition of the Green Book was produced in April 1991. Treasury officials are currently leading a Whitehall-wide interdepartmental group with the aim of providing an updated and revised edition of guidance for publication in the first quarter of 1997.