XN000022-1986-03-25 — Page 7

TUESDAY, MARCH 25, 1986

(0) IF THE PILOT SCHEME IS SUCCESSFUL, PRIVATE INSURANCE COMPANIES SHOULD BE INVITED TO OFFER INSURANCE COVER FOR THIS HIGHER STANDARD OF ACCOMMODATION WITHIN GUIDELINES ESTABLISHED BY THE GOVERNMENT. (PAGE 11-29)

CHAPTER 5 OF THE REPORT SETS OUT THE COST IMPLICATIONS OF THE

THE CONSULTANTS RECOMMENDATIONS OVER THE FIRST FIVE YEARS. ESTIMATED THAT THESE WOULD BE IN THE ORDER

OF:

ADDITIONAL COSTS:

ONCE OFF (5 YRS)

RECURRENT

(PER ANNUM)

SETTING UP COSTS

200M

STAFF COSTS

450M

100M

UPGRADING FACILITIES

300M

30M

REDUCED COSTS

BETTER USAGE OF FACILITIES

950M

13.3M

REDUCED BUILDINGS

400M

REDUCED STAFF COST

200M

60M

IMPROVED EFFICIENCY

360M

120M

960M

180M

THE CONSULTANTS HAVE THUS CONCLUDED THAT FIVE YEARS AFTER IN THE ESTABLISHMENT OF THE NEW AUTHORITY THE COSTS OF IMPLEMENTING THE RECOMMENDATIONS IN THE REPORT WOULD HAVE BEEN COVERED. ARRIVING AT THIS CONCLUSION A NUMBER OF MAJOR ASSUMPTIONS WERE MADE AND THESE WILL BE CLOSELY EXAMINED BY THE GOVERNMENT DURING ITS DETAILED CONSIDERATION OF THE REPORT.

THE SPOKESMAN