§ Ms RuddockTo ask the Secretary of State for the Home Department (1) what payment has been paid to Hyperion Properties in respect of the cancellation of the move of the Prison Service headquarters to Derby; and on what basis the payment was made;
(2) what payment has been made to any company other than Hyperion Properties in respect of the cancellation of the move of the Prison Service headquarters to Derby; and on what basis such payment was made;
(3) what has been the cost of negotiations between the Prison Service and/or his Department and companies seeking compensation in respect of the cancellation of the move of the Prison Service headquarters to Derby.
§ Mr. Peter LloydResponsibility for this matter has been delegated to the Director General of the Prison Service, who has been asked to arrange for a reply to be given.
Letter from Derek Lewis to Ms Joan Ruddock, dated 1 February 1994:
The Home Secretary has asked me to reply to your recent Questions about the cancellation of the move of Prison Service Headquarters to Derby.A payment of a little under £9 million has been paid to Hyperion Properties plc in settlement of their claim for damages for breach of contract following the cancellation of relocation. This payment represents full and final settlement of all claims from Hyperion, their contractor and sub-contractors.In addition, £20,000 was paid to Barcol-Air (UK) Ltd in respect of design work for the air conditioning system which would have been installed in the headquarters in Derby.The Prison Service's costs in negotiating this settlement amounted to around £128,000.