dictated by the Treasury, they may end up having to pay some £300,000 more for their operation in Hong Kong after moving into the new building than they do now. (OED say their figures are maximums and that they will do further work to categorise more accurately the various elements of running costs and rent. Several of the elements in the Swires figures on which both the British Council and OED figures are based are inappropriate for the British Council for instance
"estate expenses" accounting for 10% or so of the total cost). Key figures to the nearest thousand pounds are as follows:
BC's present running costs/rent in Henessy Rd
of which rent approximately
£806,000
£650,000
BC estimate of running costs in new building
£794,000
OED estimate of running costs in new building
£508,000
OED estimate of likely rent in the new building,
assuming discounted Treasury rate
£614,000
OED estimate of likely cost to BC of running
costs/rent in new building
£1,122,000
OED estimate for commercial rate for BC space
£3,000,000
/ 86 Mr Smith's minute to me of 17 September and mine of 8
September to Mr Morris give some background to the figures and how they were arrived at.
British Council reaction
3. The British Council will find the suggestion that they should expect an increase of around £300,000 in their bill for
running costs plus rent once they move into the new building
humbc.CONGEN.dbj
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