HC Deb 16 March 1995 vol 256 cc720-2W
Mr. David Nicholson

To ask the Secretary of State for Defence (1) if he will make a statement on the reasons for the failure of the project to transfer MOD married quarters to a housing trust; and what are his present intentions for the married quarters owned by his Department;

(2) what severance payments are to be paid to Mr. Mike Robinson and Mr. Mark Taylor in respect of the failed MOD housing trust project; how far these exceed the amounts required by contract; and who was responsible for negotiating the original contracts.

Mr. Fatchett

To ask the Secretary of State for Defence if he will make a statement on the employment of(a) Mike Robinson, as chief executive, and (b) the senior managers of the housing trust; and what sum of public money will be used to terminate their contracts.

Dr. David Clark

To ask the Secretary of State for Defence (1) if he will give details of the severance clauses contained in the employment contracts of the current(a) chairman and (b) finance director of the Defence housing trust;

(2) what are his Department's future plans for the married quarters housing stock;

(3) what is the total cost of the severance pay, including pension rights, for (a) Mr. Mike Robinson, chairman of the Ministry of Defence Housing Trust, and (b) Mr. Mark Taylor, finance director of the Ministry of Defence Housing Trust.

Mr. Jamieson

To ask the Secretary of State for Defence (1) what is(a) the minimum and (b) the maximum amounts of severance pay that Michael Robinson and Mark Taylor, employees of the housing trust, are entitled to under their contracts;

(2) if he will list the criteria which will be used to decide if the Chief Executive of the housing trust receives a performance related bonus in April 1995;

(3) how much the chief executive of the housing trust has received, or will receive in severance pay;

(4) how much Mark Taylor, an employee of the housing trust, has received or will be receiving in severance payment.

Mr. Soames

[holding answers 8 and 9 March 1995]: In keeping with our determination to improve the management of service housing, my right hon. and learned Friend the Secretary of State announced on 17 November 1994, Official Report, column 1, our plans to establish a Defence Housing Executive. This organisation will manage the married quarters estate on a fully integrated basis an deliver important management improvements as sought under the earlier proposals for a housing trust.

The trust proposals had to be abandoned when it was concluded that the proposed new body could not properly be classified to the private sector, and would not therefore be able to gain access to private sector capital to fund its operations and improve the housing stock. Since the three senior managers of the embryo housing trust had originally been recruited and appointed by the Ministry of Defence, following open competition, for the specific purpose of setting up and managing the trust, they were consequently entitled to be released from, and paid for the unexpired portion of their contracts. All three agreed to stay on, however, to assist us in reorganising the way in which we manage our housing estate and preparing for the establishment of the Defence Housing Executive.

This work, to which their contribution has been invaluable, has progressed well, and the Defence Housing Executive is on course to take up its responsibilities from 1 April 1995. Meanwhile, and in addition to the Defence Housing Executive initiative, we are continuing to consider alternative possibilities for transferring the married quarters estate to the private sector.

Once the Defence Housing Executive formally comes into being, my Department will no longer require the services of two of the senior managers, Mr. Robinson and Mr. Taylor. They will accordingly he made redundant on 31 March. In line with the provisions of their contracts, they will be entitled to compensation for the remainder of the three-year period of their contracts, calculated at the annual rate of the first year's salary plus any bonus earned during the first year. Although the amounts of compensation have yet to be finalised, they are expected to be around £200,000 for Mr. Robinson and £170,000 for Mr. Taylor, depending on the final assessment of performance against milestones agreed with their line management. The basic pay for their period of service will he pensionable.

I am pleased to be able to announce that the third manager recruited to the trust, Mr. James, will stay on in the role of chief executive of the Defence Housing Executive. Under Mr. James's direction, the executive will bring together the disparate housing staffs, and will manage and maintain the married quarters estate as a single entity in accordance with best professional practice. Drawing on may of the plans originally developed for the housing trust, it will be able to maximise efficiencies and provide a better service to service personnel and their families.

Mr. Fatchett

To ask the Secretary of State for Defence if he will set out the total amount of fees paid to(a) estate agents and (b) consultants in relation to the sale of surplus Ministry of Defence houses in the period 1 January 1993 to 31 December 1994.

Mr. Soames

[holding answer 14 March 1995]: Although this information is not available in the precise form requested, fees paid to estate agents and consultants in support of the land and buildings disposal programme total £7.27 million for the period in question. These fees cover the cost of advice on planning, highways and other matters, and help to ensure that the best return for the taxpayer is obtained.