§ Mr. Hicksasked the Secretary of State for the Environment what are the terms of the lease and the annual rent paid by his Department to the Duchy of Cornwall for the fundus of the river Tamar; what proposals the Duchy has made so as to necessitate a change in the method of evaluating mooring charges for boat and yacht owners; and if he will make a statement.
§ Sir George YoungThe Ministry of Defence leases the fundus of the Tamar from the Duchy of Cornwall for operational reasons. This is managed by the Property Services Agency as agents for the Ministry of Defence and includes responsibility for mooring licences. The lease is for twenty one years from 1 April 1978.
It is Departmental policy never to disclose rents in issue as this is considered to be commercial in confidence.
PSA have to negotiate a rent review with the Duchy of Cornwall as owners on 1 April 1984 and the potential income from the moorings will be a negotiating factor. The tendering procedure which my officials have put in hand is part of normal commercial practice to establish a 270W rental level. It is anticipated that enough tendering exercises will take place over a twelve month period to establish an average rent, and it is this average rent which will then be applied to the moorings.
My officials must obtain a fair market rent because of the rent which MOD must pay. There can be no question of the taxpayer subsidising these facilities.