§ Mr. Allan Stewart
asked the Secretary of State for the Environment what are the estimated costs and savings of the proposed transfer of the functions of the Property Services Agency's Glasgow area office to Edinburgh for the financial years 1986–87, 1987–88 and 1988–89.
§ Mr. Chope
The proposed reorganisation of the United Kingdom territorial organisation of PSA will not come into effect until 1 April 1987, and there will, therefore, be no costs and savings in 1986–87. The costs and savings in the following two years are:
£ million Cost 1987–88 Savings 1988–89 1.65 1.09
There are further substantial savings in later years and an investment appraisal shows that payback is expected to occur in 1989–90.
Apart from these savings the reorganisation will produce substantial benefits, which cannot be quantified, 442W through better service to clients and better value for money. It fulfils the recommendation of the PAC made in its 30th report 1983–84 and its 19th report 1984–85 that the chain of command should be shortened.
The net costs and savings include savings through increased managerial efficiency through the organisation as a whole.
Specific figures for the Glasgow area office are not available.