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7. The cost of building and furnishing such a centre would be about £12 million. Management and maintenance costs would be about £50,000 a year. The working party estimated that by allowing the centre to be used on suitable occasions for non-government purposes the centre could be used on average to about two-thirds of its capacity. After allowing for the saving in Government expenditure on other accommodation and for revenue from non-government uses the net cost is estimated at about £90,000 a year of which £89,000 represents the equivalent of interest charges on the capital cost of the site, the buildings and furniture. Some gains in foreign exchange could be expected.
8. The working party suggested that the best site for such a centre would be on the South Bank near the Royal Festival Hall.
9. Although the provision of even a smaller centre is not strictly an economic proposition, I agree that it is desirable that London should possess such a centre. We have however a number of urgently needed Government building schemes ahead, some of which have recently been postponed on economy grounds. I could not recommend that a conference centre should take priority over these. But I suggest that we look again at the proposal when the need for economy in Government expenditure is less insistent. I think it would be undesirable to acquire a site until we decide to build, and a site on the South Bank may no longer be available if it is subsequently decided to go on with the scheme. I think we must run this risk.
Recommendations
10. I therefore invite my colleagues to agree that-
(1) it would not be justifiable to build a centre large enough for the General
Assembly of the United Nations;
(2) when there is less need for economy we should again look at the proposal
for a smaller centre to accommodate up to 500 delegates; (3) in the meantime no action should be taken to acquire a site.
Ministry of Works, S.E.1, 29th November, 1955.
N. B.
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