§ Mr. AllenTo ask the Secretary of State for Transport for what reasons leaseholding operators of motorway service areas are not required to pay annual rent to his Department. [9397]
§ Mr. WattsOriginally, operators of motorway service areas paid an annual rent based on turnover. In 1978 the Prior committee report on MSAs concluded that this arrangement was discouraging new investment and the improvement of standards. A new policy was announced in October 1979 under which operators would pay a lump sum at the beginning of their lease term and a peppercorn annual rent thereafter. That arrangement had been adopted for all MSAs, new and existing, by 1982. It continues to apply to the 19 existing MSAs for which the Department currently owns the freehold, pending their sale to the private sector. The provision of MSAs was deregulated in 1992 and the issue of payment of rent to my Department no longer arises with new MSAs.
§ Mr. AllenTo ask the Secretary of State for Transport what are the costs to his Department of acting as a freeholder for motorway service areas in England. [9398]
497W
§ Mr. WattsThe costs are minimal and will reduce to nothing as the Department's remaining freehold interests in motorway service areas in England are sold to the private sector.