§ Mr. RaynsfordTo ask the Secretary of State for the Environment how long former Department of Trade and Industry premises in Victoria street have been empty; how long he expects them to remain unoccupied; what proposals he has for the future use of these premises; and what is the weekly cost of keeping the premises unoccupied, including maintenance, insurance and security liabilities.
§ Mr. BaldryThe property was vacated in September 1991 because it needed major works to render it suitable for continued occupation. Some time beforehand, negotiations were opened with the landlords to agree to a package whereby the property would be refurbished at their expense and the Secretary of State would enter into a new lease at a modern rent.
540WWith the dramatic downturn in the property market, the landlords were reluctant to commit themselves to substantial capital expenditure while rents continued to fall. However, significant progress has been made and subject to finalisation of the negotiations a 24-month contract period will deliver the building fully refurbished and ready for occupation. It is intended that the building will be re-occupied by a Government Department or Departments.
We are still contractually liable, under the terms of a long lease, for rent plus costs for insurance, maintenance and security of £40,000, but this will be reduced to £12,000 when the building contract commences shortly.