HC Deb 18 May 1988 vol 133 cc488-9W
Mr. Soley

To ask the Secretary of State for the Environment ( 1) what was the total debt outstanding on the Thamesmead estate after its sale by the London residuary body; and when and to whom he anticipates the debt will be repaid;

(2) which company approached his Department to reduce the price following the valuation of Thamesmead estate for the London residuary body by chartered accountants; and what adjustment was made;

(3) when the valuation was made of Thamesmead estate by the chartered accountants; and what value was assigned;

(4) what price per house was paid for the Thamesmead estate to the London residuary body;

(5) to which company the Thamesmead estate was sold by the London residuary body; and what was the price paid;

(6) what is (a) the total rent income on the Thamesmead estate and (b) the total service charge income; and how much of this will be used to pay the outstanding capital debt owed to the former Greater London council.

Mr. Chope

Accountants were employed by the Government to produce a business plan (not a valuation) which would enable terms to be set for the disposal of the Thamesmead estate to Thamesmead Town Ltd. which would maximise the return to London boroughs while enabling the company to remain viable. For the terms of the sale, I refer the hon. Member to the answer given by my hon. Friend the Minister for Housing and Planning to the Member for Erith and Crayford (Mr. Evennett) on 20 July 1987, Official Report, column 106. Particulars of rent and service charge income can be obtained from the company. The debt outstanding on abolition of the GLC was £138.8 million which was included in the total of debt for which servicing arrangements by the London boroughs, pro rata to population, were made in the Local Government Reorganisation (Repayment of Loans) (Greater London) Order 1986 (SI 1986/439). The boroughs have however been relieved of an onerous burden and they will receive a share of lettings and of receipts from sales of housing.

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