21 MAY '91 9:35
FROM GF 1
PAGE.003
4. The broad estimate of £40M operating cost is derived as
follows:
Manpower, Stores, POL etc
Maintenance and repair
Support
£1.6M per annum
£0.8M per annum
£5.1M per annum
Total
Total 63 months
£7.5M per annum
£40M
7
5.
Costs for stores consumed over the period would be likely to
be more or less the same as those incurred by HMG, provided that
HKG chose to operate the vessels in a similar manner. Manpower
should prove to be cheaper using Loan Service personnel and
locally engaged staff. Significant savings should accrue in the
provision of infra-structure and general support since HKG
already have some existing facilities which may be suitable for
future use. HKG would need, however, to carry out a detailed
study to establish their precise requirements.
6. LEP service would be terminated with MOD picking up the cost
of gratuities. HKG would be free to re-employ any LEPS with
special expertise on their own terms. The transfer of some HK
nationals to the Marine Police would provide expertise in
operating and maintaining the Peacocks and would also result in
savings in training costs.
2
** TOTAL PAGE.003 **