Departmental Property (Hansard, 30 January 1996)

§ Mr. Hanley

Since 1989–90 the only cost to the FCO diplomatic wing for empty or under-utilised properties in the UK was incurred in 1995–96. Both freehold properties concerned are being sold. Rents—payable to property holdings—amounted to £98,173 with a further £114,444 contribution in lieu of rates. There were offsetting savings of £34,000 from lettings on both sites. Information in respect of 1979–80 is not available.

In respect of the overseas estate, the information requested could be provided only at disproportionate cost. It is departmental policy to dispose of vacant or under-utilised elements of the overseas estate as quickly and as cost-effectively as possible.

The ODA does not have any empty or under-utilised property.

Of the FCO's agencies and non-departmental public bodies, only the Natural Resources Institute has empty or under-utilised property and it will write to the hon. Member with full details. The information requested in respect of the British Council could be provided only at disproportionate cost.

Letter from Anthony Beattie to Mr. Malcolm Bruce, dated 29 January 1996: I have been asked by Mr. Hanky to reply for the Natural Resources Institute to your question to the Secretary of State for Foreign and Commonwealth Affairs about the cost of empty and under-utilised accommodation. The Institute, which was formed by the amalgamation of a number of scientific units of the Overseas Development Administration, became a Next Steps agency on 1 April 1990. When the Institute moved to Chatham in the period 1988–1990, a site at Culham in Oxfordshire became surplus to requirements. Disposal of the site, which was originally acquired by the Crown for wartime use as an airfield, has been complicated by both legal and planning issues. These have been resolved and the site is now in the process of sale. Pending disposal, the Institute pays rent at an assessed rate to Property Holdings (Department of the Environment). The cost to the Institute, (but not to the Exchequer) has been some £366,000 per annum, this figure being reduced in 1995–96 to £277,000 following a reassessment. The running costs of the site (primarily maintenance and security) come to some £35,000 a year. We expect to dispose of the property by the end of this financial year, although planning restrictions will limit the realisable value. As regards the Chatham site itself, a view has been taken of future accommodation requirements in the light of the first triennial review of NRI as an agency (completed 1993) and a subsequent review of business prospects up to the end of the century. These studies have also formed the basis of the current offer of the Institute for sale. The Institute's declining requirement for accommodation has enabled us to let accommodation to the University of Greenwich. thus securing an income of some £900,000 in 1994–95 and an estimated £1.3 million in 1995–96. 627W Our objective in the context of restructuring and sale of the Institute is further to reduce our accommodation to some 6,400 square metres (compared with a total site area in excess of 17,000 square metres), thereby releasing space for letting to other users. I trust the above provides the information you require.