Noreast Building Management

HC Deb 19 January 1994 vol 235 c673W

Mr. Fatchett

To ask the Secretary of State for the Environment if he will set out(a) the proceeds from the sale of Noreast Building Management, (b) the amount of money set aside to cover possible redundancy costs and (c) on the latest available figures, the total number of redundancies and the cost involved.

Sir George Young

[holding answer 18 January 1994]: The vendor will receive proceeds of £8 million from the sale of the Noreast Building Management business. The agreed limit to the Department's liability for severance payments to Noreast Building Management staff is £29.5 million, covering staff made redundant in the first five years post sale. The Department shares liability pound for pound with the purchaser for severance costs in excess of £25 million—until the cap of £29.5 million is reached. The total number of staff made redundant since sale is 222, at an estimated cost of £9.1 million; of these only one was a transferred member of staff made redundant by the purchaser.