HL Deb 25 February 1998 vol 586 cc678-9

2.46 p.m.

Lord Steel of Aikwood

asked Her Majesty's Government:

Whether they will co-ordinate the policies of the Treasury, the Department of the Environment, Transport and the Regions and the Ministry of Defence to change the present policy whereby the Ministry of Defence in disposing of urban properties is required to seek the highest market price, thus enabling supermarkets, office blocks and hotel developments to outbid potential housing developments on brownfield sites.

Lord Hoyle

My Lords, we are all aware of the potential for the use of redundant MoD sites to provide housing. The MoD is closely involved in a research project with the Department of the Environment. Transport and the Regions, which includes consideration of the issues raised by the noble Lord. Ultimately, however, it is for the planning process to determine the alternative use to which such sites are put.

Lord Steel of Aikwood

My Lords, I thank the Minister for his reply. He will appreciate that this Question was tabled before the statement by the Deputy Prime Minister in the other place. which has been widely welcomed. Since it is now the determination of the Government to secure more housing on urban land and less in the countryside, surely it would make sense for the Treasury to review its policy requiring the highest possible price from the MoD regardless of other circumstances? Does the Minister agree that when land is already held by the state housing should he the priority for it?

Lord Hoyle

My Lords, there is co-operation between government departments. as I have said, at official and ministerial level. In disposing of surplus property the Ministry of Defence seeks to work closely with the local authorities and regional government offices to try to accommodate the local plan itself as far as possible. As regards the Treasury rules at the moment, they allow each case of disposal to be considered on its merits. However, the issue will be examined again by the DETR research project.

Lord Dean of Beswick

My Lords, is the Minister aware that there is a precedent for a government to give priority to local authorities to purchase some of the properties which have been government-owned? For example, under that policy Manchester purchased a large disused armaments factory and turned it into a very successful building components factory. Can the Minister give an undertaking that he will look into examples of that kind in order to try to carry out part of the policy enunciated by the noble Lord, Lord Steel?

Lord Hoyle

My Lords, I agree with my noble friend when he refers to what occurred in Manchester. I can assure him that part of the review that is being considered will look at the best way forward. As I say, in the meantime we try in the MoD to work very closely with local and regional authorities in order, wherever possible, to meet the demands of the local population.

Lord Marlesford

My Lords, is the Minister aware that there has been a number of instances where the Ministry of Defence has been remarkably inept at disposing of land? I give one example of RAF Bentwaters in Suffolk, where two false attempts were made to sell property, but in each case the person with whom the deal was agreed did not have the money? Is not the real answer to the point raised by the noble Lord, Lord Steel, for the Ministry of Defence, once it has decided that it does not need public property, to transfer it to the Department of the Environment, Transport and the Regions which, in disposing of it, could take into account the wider requirements of public policy, particularly that of the environment?

Lord Hoyle

My Lords, those matters will be considered in the review. We are well aware of the need to use brownfield sites wherever possible for housing development, as was discussed the other day in your Lordships' House. It is estimated that there are enough brownfield sites in MoD possession which may be disposed of to provide 26,000 houses. It is important that such points are borne in mind. As I have said, we are awaiting the results of the review.

Lord Burnham

My Lords, I understand that estate agents handling MoD redundant property are not allowed to give any indication of the price. Will the Government review that situation?

Lord Hoyle

My Lords, again I am sure that that point will be considered by the review. We want to see the best use being made of MoD land, taking into account the needs of the local authority and the content of the local plan.