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Warrington And Runcorn Development Corporation

Volume 175: debated on Wednesday 4 July 1990

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To ask the Secretary of State for the Environment which contracts were awarded by Warrington and Runcorn development corporation to business ventures on the basis of competitive tendering.

No contracts were awarded by Warrington and Runcorn development corporation to business ventures on the basis of competitive tendering.

To ask the Secretary of State for the Environment, pursuant to his reply of 27 June to the hon. Member for Warrington, North, how the value of services provided to Warrington and Runcorn development corporation by business ventures was assessed in order for the corporation to make appropriate reductions for the use of its property; how the rentable value of that property was assessed by Warrington and Runcorn development corporation; and which business ventures made use of Warrington and Runcorn development corporation property for 30 months.

The basis of the fees paid to business ventures by Warrington and Runcorn development corporation was that they should not exceed the costs which the corporation would have had to bear if the function had remained in-house. The fees payable were initially based on payroll costs and direct expenses and were exclusive of accommodation costs. Thereafter, as the business ventures began to undertake work for other clients, the corporation reduced its fee payments to reflect the use made of its accommodation in providing these services. The engineering business venture, involving a merger with Rendel Palmer and Tritton, made use of corporation accommodation for 30 months.

To ask the Secretary of State for the Environment, pursuant to his answers to the hon. Member for Warrington, North of 27 June, what were the three largest redundancy payments made to Warrington and Runcorn development corporation staff who joined business ventures employed by the corporation; and to which officials they were paid.

The three largest redundancy payments made to staff of Warrington and Runcorn development corporation who joined business ventures were as follows:

£
Chief Estates Officer (Runcorn)45,328
Chief Engineer44,264
Chief Legal Officer43,507