HC Deb 15 February 1995 vol 254 cc718-22W
Mr. Redmond

To ask the Secretary of State for Defence what action his Department has taken to ensure the provision of an efficient and cost-effective service to customers of his Department's property services; and if he will make a statement.

Mr. Soames

A new Defence Estate Organisation is to be formed which will incorporate the staff who are involved in providing services to the occupiers of the defence estate. The intention is that this will provide a top-down oversight of the estate and thereby improve the efficiency of those services. As announced on 17 January, the chief executive of the new organisation will take up his appointment on 1 April.

Mr. Redmond

To ask the Secretary of State for Defence what is his policy as to the notice given to agents appointed to dispose of property by reference to the date of closure of a service; and if he will make a statement.

Mr. Soames

When disposing of surplus property, it is our policy to seek the smoothest possible transition from service to civilian use by ensuring that as much notice as possible of closure and vacation dates together with other appropriate information is given to appointed agents.

Mr. Redmond

To ask the Secretary of State for Defence what action is taken to ensure that the use of joint ventures is encouraged so that optimal value is achieved for property disposals; and if he will make a statement.

Mr. Soames

It is our practice to consider alternative methods of disposal, including joint venture, where professional advice indicates that conventional open market sale would not achieve optimal value.

Mr. Redmond

To ask the Secretary of State for Defence if he has established a clear distinction between his Department as estate owner and the various budget holders as occupiers; and if he will make a statement.

Mr. Soames

The responsibilities of the budget holders as occupiers of the defence estate are clearly established. They are responsible for the efficient and economic use of the estate in ensuring that the armed forces are properly prepared for war. Their responsibilities include the maintenance of the estate, taking account of operational requirements, conservation, the interests of tenants and, wherever possible, the generation of income and allowing access by the public. The budget holders are ultimately responsible to my right hon. and learned Friend the Secretary of State for Defence, in whom title to the estate is vested, for the discharge of these duties.

Mr. Redmond

To ask the Secretary of State for Defence what assessment he has made of the effect of disposal pressures on the achievement of optimal value for property disposals; and if he will make a statement.

Mr. Soames

We are conscious that many factors such as the size and nature of the establishment; the local planning environment; the state of the market; and the timing of the disposal can impact on the achievement of optimal value. All such factors are taken into account in developing a disposal strategy for a site.

Mr. Redmond

To ask the Secretary of State for Defence what action his Department has taken to promote the effective utilisation of landed property and its rationalisation, reductions in cost of use and operation and consequently properly planned redundancy and disposal; and if he will make a statement.

Mr. Soames

The director of estate rationalisation, defence lands service is specifically charged with identifying opportunities for rationalisation and disposal of the defence estate, so as to promote its best and most cost-effective use; this includes ensuring that estates issues are taken fully into account in investment appraisals and studies.

Mr. Redmond

To ask the Secretary of State for Defence what is the normal time scale for the disposal of surplus property; what discretion is given to the defence estate in this respect; and if he will make a statement.

Mr. Soames

In common with other Government Departments, it is our policy to dispose of surplus property, wherever practicable, within three years. It is accepted that for some sites a longer-term disposal strategy is required, and in those circumstances, a flexible approach is adopted.

Mr. Redmond

To ask the Secretary of State for Defence if he will restructure the defence land service and the defence works service and infrastructure to form one overall organisation; and if he will make a statement.

Mr. Soames

It was announced on 17 January that the first chief executive of the Defence Estate Organisation will be Mr. Brian Hirst who will join the Ministry of Defence on 1 April this year. The new organisation will incorporate the defence lands service, the defence works service and the infrastructure and logistics, infrastructure, division.

Mr. Redmond

To ask the Secretary of State for Defence what plans he has to amend budgetary rules related to anuality to ensure that optimal value is achieved for property disposals; and if he will make a statement.

Mr. Soames

There are no plans to seek changes to the existing end-year flexibility scheme which allows funding to be carried forward from one year to the next subject to certain criteria being met. All defence operating costs, including property disposals, and defence procurement expenditure are eligible for carry-forward under this scheme.

Mr. Redmond

To ask the Secretary of State for Defence if all his Department's property assets are valued; if a comprehensive database has been established; and if he will make a statement.

Mr. Soames

Some parts of the defence estate have already been valued and other elements are to be valued under a programme which is due to be completed by the end of 1996. As a separate but related exercise, a new database is to be created containing a more detailed record of property assets held by my Department.

Mr. Redmond

To ask the Secretary of State for Defence what action he is taking to ensure his Department's estate becomes more proactive in overall occupational and budgeting decisions; and if he will make a statement.

Mr. Soames

Defence estate issues are already given the fullest possible exposure in Departmental studies and other initiatives involving occupational and budgeting decisions.

Mr. Redmond

To ask the Secretary of State for Defence what is his strategic plan encompassing property interests at his Department; and if he will make a statement.

Mr. Soames

It is our objective to manage the defence estate so that it supports, cost effectively, the military capability of the armed forces in peace and war. Property which is no longer required for these purposes is disposed of.

Mr. Redmond

To ask the Secretary of State for Defence for what reasons phasing plans are used for large-scale disposals of his Department's property; and if he will make a statement.

Mr. Soames

A phased disposal strategy may be employed under various circumstances including: where market supply exceeds demand; where planning objectives can best be met by staged release of land; or, where the financial return from sale cannot otherwise be maximised.

Mr. Redmond

To ask the Secretary of State for Defence what measures he takes to ensure value for money in property maintenance in his Department.

Mr. Soames

Following my Department's untying from the Property Services Agency on 1 April 1990, property maintenance became the responsibility of individual top-level budget holders. At each unit which controls maintenance programmes, three independent parties undertake clearly defined tasks. The Department appoints a service or civilian officer as property manager who is advised by a contractor—establishment works consultant. Another contractor acts as works services manager carrying out the tasks. This system, centering on contractorisation, reinforced by independent reviews and audits, is intended to ensure best value for money.

Mr. Redmond

To ask the Secretary of State for Defence what action he is taking to ensure his Department's property estate places greater emphasis on active asset management and asset realisation; and if he will make a statement.

Mr. Soames

The Department is taking a number of steps to place greater emphasis on the management of the defence estate as an asset. These include the creation of the Defence Estate Organisation which will provide a top-down view of all estate related activities. In addition, the estate is being valued as a precursor to the introduction of resource accounting and the valuation work is linked to the creation of a new property database.

Mr. Redmond

To ask the Secretary of State for Defence in what circumstances his Department's estate is allowed to enter into term contracts with the private sector; and if he will make a statement.

Mr. Soames

As with all contracts, term contracts are used when they are both appropriate and to my Department's advantage in terms of value for money. The scale and nature of the demand and delivery requirements are also factors used to determine whether a term contract is the most appropriate means to meet a particular need.

Mr. Redmond

To ask the Secretary of State for Defence what advice his Department gives in the preparation of planning briefs for significant disposals of property, including joint ventures, to ensure appropriate greater local authority involvement; and if he will make a statement.

Mr. Soames

It is normal practice to seek to develop, in co-operation with the local authority, a planning brief for large or complex sites.

Mr. Redmond

To ask the Secretary of State for Defence if he will list the surplus air bases in the eastern counties of the United Kingdom that(a) have and (b) have not a phasing plan for disposal; and if he will make a statement.

Mr. Soames

The following air bases in the counties of Essex, Norfolk and Suffolk have been declared surplus to RAF requirements: RAF Bentwaters, RAF Sculthorpe, RAF Swanton Morley, RAF West Raynham and RAF Woodbridge. An offer has been accepted for the sale of RAF Bentwaters in its entirety. No disposal plans have been finalised for the other sites, several of which remain under consideration for alternative defence uses.

Mr. Redmond

To ask the Secretary of State for Defence if his Department will liaise with the Department of National Heritage and other appropriate bodies where buildings need to be preserved for posterity; and if he will make a statement.

Mr. Soames

My Department has developed good working relationships at all levels with the Department of National Heritage, English Heritage and other national heritage bodies with the aim of achieving the highest standards of conservation of its historic buildings.

Mr. Redmond

To ask the Secretary of State for Defence if he will make it his policy to ensure that buildings declared surplus but which have feasible alternative uses are not neglected to such an extent as to make their disposal at a later date more difficult and less cost-effective; and if he will make a statement.

Mr. Soames

It is already our policy to take steps, wherever possible, to maintain the viability of surplus buildings which have alternative use potential and to explore the scope for realising revenue through their short-term commercial use where disposal of the freehold is not in immediate prospect.

Mr. Redmond

To ask the Secretary of State for Defence what account is taken in his strategy for control of his property operations of heritage policy and the military married quarter estate; and if he will make a statement.

Mr. Soames

Within the overall strategy of holding the minimum amount of land and buildings necessary to support the operations of the armed forces, historic buildings are considered for their suitability alongside other buildings. Many continue in full use and others are being adapted to a new defence use but where an historic building is redundant, my Department seeks to dispose of it for an alternative use which will preserve its architectural and historic value.

The Department is committed to ensuring that the number of married quarters is kept to the minimum necessary to meet service demands. Responsibility for management of the estate will pass to the defence housing executive on 1 April 1995.

Mr. Redmond

To ask the Secretary of State for Defence what consideration he has given to forming a holding agency to cover those properties held by his Department for which there is no immediate market; and if he will make a statement.

Mr. Soames

The House of Commons Defence Committee report on the defence estate recommended that consideration be given to the creation of a separate agency to hold and dispose of surplus land. This recommendation will be given further consideration when the chief executive of the new Defence Estate Organisation takes up his appointment on 1 April 1995.

Mr. Redmond

To ask the Secretary of State for Defence what steps he has taken to learn from the experience gained by the NHS in a conservation strategy for his Department's buildings; and if he will make a statement.

Mr. Soames

Officials in the Department of National Heritage who have been working with the NHS on their conservation strategy also work with my Department and policy is being developed along similar lines. In particular, my officials are working with English Heritage on the selective listing of aviation structures, dockyards and barracks, on which thematic surveys are being carried out. In addition, officials from my Department held a meeting in August last year with the chairman of the historic hospitals working group to discuss common problems and respective approaches.

Mr. Redmond

To ask the Secretary of State for Defence what phasing plans exist for disposal of Old Park barracks, Dover; and if he will make a statement.

Mr. Soames

Discussion with the local authority and other interested parties concerning a single regeneration budget to assist in the development of the site is ongoing. A planning brief has been agreed for the site and phased development is an option for disposal.

Mr. Redmond

To ask the Secretary of State for Defence if he will list those properties(a) sold by his Department and (b) in the process of being sold where the sale involved a joint venture with private or public sector partners; and if he will make a statement.

Mr. Soames

Although, to date, no Ministry of Defence properties have been sold through joint venture schemes, the following properties are in the process of being sold through such schemes: the former central vehicle depot, Hilton, Derbyshire, and the former ordnance storage depot, Ruddington, Nottinghamshire.