Written question asked by Roger Williams (Liberal Democrat) on Thursday, 16 November 2006, in the House of Commons. It was due for an answer on Monday, 20 November 2006. It was answered by Derek Twigg (Labour) on Tuesday, 28 November 2006 on behalf of the Ministry of Defence.

President of the Regiment Institute Shops

Question: To ask the Secretary of State for Defence what guidance his Department gives to commanding officers on (a) appointing external commercial businesses to run President of the Regiment Institute shops, (b) the profit margins which such businesses should charge on their sales and (c) overhead costs.

Answer: President of the Regiment Institute shops are charities, of which the units’ Commanding Officer is the Managing Trustee. Instructions on the running of PRIs are not issued by the Department as the unit Commanding Officer is fully responsible for the running of their PRI as the Managing Trustee. However, they should be run in accordance with Service Funds Regulations and Defence Council Instructions General 3/2005.The Commanding Officer may appoint any individual or organisation to manage the PRI, and may set whatever profit levels they see fit. Overhead costs are advised by Defence Estates and include licence to occupy, utility costs and ensuring adequate insurance is taken.

Secondary information