to a private individual or body, to a local authority, to a 
Dominion, a Colonial or a Foreign Government. In these cases 
it is equally clear that failure to collect the full cost of the ser- 
vices amounts to a subsidy given at the expense of the British 
taxpayer. 
Between these two extremes there are various intermediate 
types of case which are not uncommon in practice. A service 
may be rendered by a Government Department to a fund such 
as the Unemployment Insurance Fund to which the taxpayer 
is not the sole contributor; or to a body the expenses 
of which are not charged directly against Votes of Parlia- 
ment but to which Parliament contributes a lump sum 
grant, as in the case of the Forestry Commission and 
the Development Fund. The Road Fund and the Savings 
Bank Fund represent other types of case in which Govern- 
ment Departments render administrative services on repay- 
ment terms to Funds with an independent financial status. 
Last under this head we may mention the case of Government 
manufacturing establishments, e.g., the Ordnance Factories, 
which are treated as trading concerns and as such should be and 
are charged with the full cost of services rendered to them, 
which in turn is taken up in the production cost of the products. 
We wish to make it clear that in our report we have classified 
111 these intermediate cases as ‘ extra-departmental.”” Where 
we refer to ‘‘ Exchequer Departments > or to ‘‘ inter-depart- 
mental transactions between Exchequer Departments ’* we mean 
only those Departments or transactions which come under the 
first head, where the precise allocation of a charge which is in 
any case to be incurred does not alter the burden on the tax- 
paver. 
3.—The present position. 
[.—Transactions between Exchequer Departments. 
The position may be thus summarised :— 
(a) There is a definite, recognised practice by which cer- 
tain services, known technically as ‘‘ Allied Services,” are 
rendered free of charge by Civil Departments to one another 
and to the Service Departments, i.e., the Admiralty. War 
Office, and Air Ministry. 
The following is a list of the more important *‘ Allied 
Services ’’ 1— 
Services performed by Provision and maintenance of 
the Office of Works. accommodation and furniture ; 
heating, lighting, &ec. 
gception.—A charge is raised 
against the Service Depart- 
ments for services other than to 
Headquarter Offices. 
+4)