HC Deb 26 October 1992 vol 212 cc508-9W
Dr. David Clark

To ask the Secretary of State for Defence if he will set out the procedure adopted by his Ministry for the sale of surplus land and buildings including the method of binding potential purchasers, and any targets that might be set as an annual basis; and if he will make a statement.

Mr. Archie Hamilton

The MOD's general policy is to sell surplus land and buildings for the highest return for the taxpayer and the usual procedure is to sell by competitive tender. Agents are engaged to place advertisements seeking tenders and purchasers are normally expected to provide a non-returnable 10 per cent. deposit when a sale is agreed.

Special provisions apply however to the sale of housing, namely, the discounted sale of surplus married quarters and civilian houses to service personnel and sitting tenants respectively and also the bulk sale of surplus married quarters to housing associations at a discount in return for nomination rights for service personnel leaving the services over the next few years.

No formal targets are set for disposals though assumptions have, of course, to be made for the purpose of the public expenditure survey, and the long-term costings process.

Dr. David Clark

To ask the Secretary of State for Defence if he will give(a) the amount of money realised to his Ministry from the sale of surplus land and (b) the valuation of that land in each of the last five years; and if he will make a statement.

Mr. Archie Hamilton

In each of the last five financial years the following receipts have been realised from the sale of surplus land and buildings:

Year £ million
1987–88 76.6
1988–89 15.0
1989–90 71.2
1990–91 80.6
1991–92 102.3

The amount of money realised represents the market value of the property sold, with the exception that some service married quarters and civilian houses have been sold at a discount in line with departmental policy.