19)
reduced to a uniform basis. But we think the principle of a
fixed percentage for Works Services is right, even if it has to
be a different percentage in the case of the Office of Works.
Class E. Professional Services.—These are so very various
shat no precise rule can be laid down, but the general aim should
be that only direct out-of-pocket expenses should be charged
as between Hxchequer Departments. If the identification of
such charges should be found to involve any appreciable account-
ing difficulty, the case would be met by a flat rate calculated
to cover the Minimum Charge (see Paragraph 6) and such over-
heads as are represented by the 2% per cent. which we have
recommended in the case of goods supplied from store. The
form of the charge would vary according to circumstances;
thus, in cases where the only service rendered is the inspection
of goods, we should see no objection to a very simple rule such
as a fee of X pence a yard for inspecting cloth, provided that the
fee were calculated substantially in accordance with our recom-
mendation. We do not, however, wish to rule out any reason-
able arrangements for meeting the difficulty ; for instance, where
several Departments are regularly using the services of the
same establishment, e.g., an Inspection Branch, the annual
expenses of the establishment might be apportioned between
the Departments. Another permissible exception is where a
Department is rendering services on a large scale to the public
and only exceptionally to Government Departments, e.g., the
supply of telephonists by the Post Office. Here it will be simpler
to apply to the two Departments the ordinary public charge,
since it is not worth while seeking to eliminate from the charge
possible elements of profit where the total payments involved
are small.
8.—We would add that we are not satisfied with the system
of a uniform charge for all services (whether building works
or not) hitherto adopted in the case of the Office of Works.
We think that the charge should be much reduced or abolished
in the case of purchase of sites for Exchequer Deparfments,
and that, in the case of goods supplied from store, the agency
fee of 2} per cent. already recommended should meet the case.
In connection with the supervision of gas and electricity con-
tracts the service rendered consists of little more than the pay-
ment of bills. We understand that there are good reasons why
the payment of these bills should in all cases be left to the
Office of Works, but we are strongly of opinion that in this
and any similar cases which may exist the service shonld be
rendered without pavment.
EXTRA-DEPARTMENTAL TRANSACTIONS.
9.—Ag stated in paragraph 2, * Extra-departmental Trans-
actions include not only transactions between Govern-
ment Departments and private individuals. local authorities.