THE Ministry of Defence confirmed yesterday that it has chosen Glasgow

as its favoured location for a new integrated Army Personnel Centre,

which would bring 700 new jobs to the city and provide employment for

1380 people.

The decision was forecast in a report yesterday in The Herald which

stated that the Ministry had decided against buying Tay House in Charing

Cross and had instead chosen to expand its existing facilities at

Kentigern House in Anderston.

The decision is subject to ratification following consultation with

trades unions and other interested parties which should be completed by

late June.

The formal announcement in the House of Commons yesterday by Mr Archie

Hamilton, Minister for the Armed Forces, ends months of uncertainty for

staff at Glasgow Development Agency and other sectors involved in

Glasgow's bid.

Originally, the Ministry of Defence had indicated it was keen to buy

Tay House, the controversial office development at Charing Cross, at a

cost of #25m.

Then a late attempt by Stockport to lure the proposed centre to a

cheaper 1970s office block seemed as if it might threaten Glasgow's

chances. The cost of the Stockport premises was #4m but the cost of

installing computer equipment and bringing the building up to standard

was estimated at a further #11m.

Yesterday, Mr Hamilton said that locating the personnel centre in the

MoD's existing premises at Kentigern House, remodelling its interior,

and relocating some of the staff at nearby Wellesley House, another MoD

facility, would cost #6m.

Mr Hamilton told the House yesterday that the Ministry's review had

concluded that use of its existing purpose-built offices at Kentigern

House in Glasgow offered the most viable and cost-effective solution.

''Investment appraisal has shown this to be the cheapest option in

terms of both capital expenditure and net present value -- the initial

cost would be about #8m less than the next cheapest option and, over a

25-year period, it would save the tax-payer nearly #65m (in net present

value terms) by comparison with the status quo,'' he said.

Mr Hamilton added: ''The building already meets the stringent security

requirements for MoD occupancy and accommodates the existing Glasgow

Manning and Records Office, thus enabling relocation to take place with

the minimum of disruption.''

The centre is expected to be fully operational by the end of 1995.

Mr David Farquhar, senior client executive at Glasgow Development

Agency, who has managed the MoD project, praised the partnership between

all the sectors involved in Glasgow's bid: ''At the end of the day, we

had a package to offer and Stockport had just a building.''

The announcement was welcomed in many quarters. Scottish Secretary Ian

Lang said: ''Today's announcement is very good news indeed and a fitting

reward for all the hard work which has gone into presenting the Scottish

case.''

Mr Lang added: ''This will be a significant boost to job opportunities

in the Glasgow area and will take the Ministry's presence in Glasgow to

over 2300 staff.''

Shadow Scottish Secretary Tom Clarke, said: ''It is no coincidence

that this announcement has been made to Parliament in the week of the

Scottish Tory Party Conference.

''Today's announcement must not divert us from the main issue of

defence-related jobs in Scotland, which is the future of Rosyth Royal

Dockyard.

''Over 4000 jobs at Rosyth and another 14,000 outside the yard will be

affected by the Government's decision on submarine refitting.''

Shadow Social Services Minister Donald Dewar, Labour MP for Glasgow

Garscadden, said last night: ''I welcome this decision. It will bring

700 much-needed new jobs to Glasgow.

''Local MPs have worked closely with the Glasgow Development Agency

and the city council to try to advance Glasgow's case. It now looks as

though our efforts have been successful and that is a big boost for the

city.''

Mrs Margaret Ewing, parliamentary leader of the SNP, said the

announcement was welcome news for Glasgow but added: ''It is still the

case that the vast majority of Government civil servants continue to be

concentrated in London.''

Mr Stuart Gulliver, chief executive of Glasgow Development Agency,

said: ''While this effort has been led by GDA's Business Location

Service, it has involved tremendous commitment and support from our

partners in both the public sector and business community.''

Glasgow's Lord Provost Robert Innes said: ''Securing the Army

Personnel Centre demonstrates that, in today's world, with today's

sophisticated communications, Glasgow's position on the periphery of

Europe is not a handicap as a base for international business

operations.''

Meanwhile, Tay House, owned by the Swedish bank Svenska Handelsbanken,

is still on the rental market. Mr Farquhar said that the GDA was working

with agents on half-a-dozen inquiries, ranging from requirements of

30,000sq. ft to 100,000sq. ft.

It has been suggested that at least two other Government departments

are considering relocation or expansion in Glasgow and also that The

Daily Record and Sunday Mail might be considering locating its

non-production staff to such a city-centre location when it moves its

printing facilities out of Anderston Quay.