HC Deb 19 February 1969 vol 778 cc469-70
41. Mr. Bruce-Gardyne

asked the Secretary of State for Defence what consideration he gives, in deciding which one of any two home defence establishments may be scheduled for closure, to the relative value of the land which is to be released for civilian development in the one or the other case.

Mr. Reynolds

Many factors are involved in planning the future of defence establishments. The value of the land at different establishments is taken into account wherever it is relevant.

Mr. Bruce-Gardyne

Can the right hon. Gentleman tell us why a junior Minister in another place last week flagrantly anticipated decisions to be announced tomorrow by saying that the move of a unit from my constituency to the south of England would save £1.2 million a year? Can the Minister tell us whether the cost of land that might have been released if the move were to be made in the opposite direction was taken into account?

Mr. Reynolds

I find it difficult to relate this to the cost of land. I do not know of any instance in the last couple of years or so where the cost of land has been the only factor involved in any such decision. There are usually many factors, of which the value of the land concerned is one.

Mr. Driberg

May we take it that the market value of the land will not be one of the factors taken into account when my right hon. Friend is considering the release of the land adjoining the Tate Gallery?

Mr. Reynolds

There are many factors, as in all cases. In this particular case there are many factors to be taken into account, one of which again is the value of the site, but it is only one of many factors.

Mr. Gordon Campbell

Do the Government make a full economic appraisal involving other Departments than the Ministry of Defence in such cases, including the cost of grants, loans and development aid which may be needed by the replacement for employment in the area concerned?

Mr. Reynolds

Yes. Full calculations of that kind are made bringing in all the factors: the cost of social security benefits, capital cost per job, and providing alternative jobs. All these matters are looked into very closely by the Ministry of Defence and other Departments concerned.