§ Mr. Barry FieldTo ask the Secretary of State for the Environment when he proposes to vacate 2 Marsham street; and if he will make a statement.
§ Mr. HowardOn 2 June I announced that the Government proposed to relocate some 2,000 staff of the956W Department of the Environment to docklands. I did so in the light of advice that exceptional value for money was available there. I made it clear that I intended to secure fully commercial terms giving value for money to the taxpayer. I fully expected to be able to do so.
Subsequently, it emerged that rents elsewhere in London were falling rapidly and sharply. In pursuit of value for money my Department commissioned a further study to look at other locations, including the future availability of sites on the existing Government estate. Steps were also taken to establish the feasibility of remaining in Marsham street beyond the end of 1993 and precisely how much it would cost.
The further work led us to conclude that taking account of falling rents and the considerable and continuing staff related costs involved in a move to docklands, such a move did not now represent best value for money for the Department. Nor, given the present severe constraints on public spending, could I now justify the substantial one-off costs of a move in 1993–94. The study of 2 Marsham street has shown that it is both safe and affordable to remain there for a period although the building will, in due course, have to be pulled down.
The Government has therefore decided that the Department of the Environment should remain in Marsham street for about three years, and use the intervening period to find the most suitable accommodation at the best value for money for the taxpayer.