HC Deb 21 January 1982 vol 16 c167W
Mr. McCrindle

asked the Secretary of State for Social Services whether he will make a statement on progress on disposal of St. George's hospital, Hyde Park Corner.

Mr. Geoffrey Finsberg

In his answer on 4 August 1980 my hon. Friend the Minister for Health said that the Government would be seeking a current legal opinion on the validity of the restrictive covenant and the pre-emptive right included in the conveyance between the Grosvenor Estates and the former board of governors of St. George's hospital.

We have now received and studied this further advice and there appears no doubt that the courts would confirm the validity of these provisions.

We have already made it clear that we have no further need of the site for the NHS and I confirm absolutely that there is no point in considering negotiation on that basis. It is sensible to treat the site as a single entity and we have no justification for seeking to buy out the rights of the Grosvenor Estates, and in any case would have to do so at market value.

Moreover, we would not be justified in going to a court to have the covenants set aside under the Law of Property Act, as we have no grounds on which we could hope to secure the modification or discharge of the covenants. But even if the application were to succeed, it could only be on the basis that compensation would have to be paid commensurate with the rights so extinguished.

So far as the portion covered by the covenants is concerned, we are advised that these would take precedence over any bid by another Government Department. That Department would have to purchase an interest in this portion as well as meet the substantial costs of redevelopment, and the Government have no plans for the use of the premises.

As the Government accept these arguments on the law applicable to these provisions, we have decided, as we no longer need the site for the NHS and wish to dispose of it, to take the first step towards this by offering the preemption right, so far as it applies to the Secretary of State's interest, to the Grosvenor Estates. If it takes this up, further action on disposal will be on that basis.