Royal Ordnance (Hansard, 27 October 1988)

Mr. O'Neill
To ask the Secretary of State for Defence if he will name the chartered surveyors who were commissioned by him to value the land and buildings of the Royal Ordnance prior to its sale.

§ Mr. Sainsbury
Messrs Weatherall, Green and Smith.

Mr. O'Neill
To ask the Secretary of State for Defence what instructions he gave, concerning the assumptions to be made about planning permission, to the firm of chartered surveyors that he commissioned to value the land and buildings of Royal Ordnance.

§ Mr. Sainsbury
The instructions to Messrs Weatherall, Green and Smith required it to submit valuations of the freehold and leasehold properties of Royal Ordnance for balance sheet purposes as at 31 December 1985. It was also asked to advise on open market alternative use values of the properties. It was left to the chartered surveyors to use their professional judgment in assessing the effect on such values of any possible future changes in planning constraints. Both of these were updates of an earlier valuation in 1984.

Mr. O'Neill
To ask the Secretary of State for Defence whether the chartered surveyors who estimated the open market value of the Royal Ordnance sites at Waltham Abbey and Enfield in 1984 gave any estimates of their value that did not assume that their location within the metropolitan green belt area would inhibit their redevelopment.

§ Mr. Sainsbury
In 1984 alternative use valuation took account of existing planning constraints, and of the assumptions that a prospective purchaser might make about the prospects of obtaining consent for development. The 1986 updating was conducted on a similar basis.

Mr. O'Neill
To ask the Secretary of State for Defence what information he has as to why the chartered surveyors commissioned by him to value the assets of Royal Ordnance were unable to determine an open market value for all of its assets.

§ Mr. Sainsbury
The chartered surveyors did provide such a valuation for the Royal Ordnance sites, using their professional judgment in assessing the likelihood of planning permission being granted for redevelopment and the possible timing of any such permission.