§ 33. Mr. D. G. SOMERVILLEasked the Minister of Agriculture what has been the highest ground rent charged in respect of the recent building leases in Regent Street to a sitting tenant; and what alternative was available to such tenant if he had refused to accept the terms offered by the Crown Lands Department?
§ The MINISTER of AGRICULTURE (Mr. Elliot)The highest ground rent per square foot which was agreed with a sitting tenant was 36s. for an unusually valuable site in Lower Regent Street, extending into Piccadilly Circus. The remainder of the question is hypothetical and I am accordingly afraid I can express no opinion.
§ 34. Mr. SOMERVILLEasked the Minister of Agriculture whether he is aware that a tenant who occupied large ground floor and upper floor space in a Regent Street building was recently offered a tenancy direct from the Crown in the Haymarket at a rent lower than that which could economically be accepted in the Regent Street building, owing to the high ground rent charged by the Crown Lands Department; and whether he will assure the House that this practice will not be continued?
§ Mr. ELLIOTI presume that my hon. Friend refers to the case of a company who were sub-tenants of accommodation at Nos. 14–16, Regent Street. The tenancy in the Haymarket referred to was not offered direct from the Crown, but was a sub-tenancy granted by the Crown lessees of the Haymarket premises in question, and the commissioners are not aware of the rent charged under the subtenancy. The last part of the question does not arise.
§ 35. Mr. SOMERVILLEasked the Minister of Agriculture whether he is aware that a Crown lessee in Regent Street was recently obliged to let space to the Income Tax Commissioners at a rental of approximately 5s. a square foot; that this rental was determined by a valuation made by Government surveyors; that 523 such valuation is only half what would be necessary if the building were let at a figure sufficient to cover the ground rental charged by the Crown Lands Department and the cost of the building erected to the Crown's requirements; and whether he will make an inquiry into the circumstances of this case?
§ Mr. ELLIOTI understand that a Crown lessee in Lower Regent Street recently granted a fourth-floor tenancy for the purpose of an Income Tax office at a rental of 5s. a square foot, exclusive of rates, taxes and cleaning, that being the rate offered by the lessee after negotiations between his agents and the Office of Works. The rental was not determined by a valuation made by Government surveyors. In the absence of full information as to the history of the premises since rebuilding, the amount of the expenditure incurred on building and equipment respectively, and the various lettings and the accommodation provided in each case, I can express no opinion on the calculations made in the third part of the question.
§ Mr. SOMERVILLEIs it fair that a price should be offered which has been fixed by the Crown Surveyor, and which, if accepted, makes it utterly impossible to let such premises at an economic rent?
§ Mr. ELLIOTI have stated that the rent was not determined by a valuation made by the Government Surveyor.
§ Mr. SOMERVILLEI am informed that it was.