HL Deb 04 June 1996 vol 572 cc117-8WA
Lord Vivian

asked Her Majesty's Government:

Whether the Chiefs of Staff of the Armed Forces have agreed to the terms for sale of married quarters to the private sector and whether these terms satisfy the interests of the Services and their families and accord to a sale price which properly reflects the public interest.

Earl Howe

My right honourable friend the Secretary of State has made it clear that the sale will only proceed on terms which satisfy the interests of the Services and at a price which properly reflects the public interest. That remains the case. The terms of the sale proposal have been designed in full consultation with the Chiefs of Staff.

Lord Vivian

asked Her Majesty's Government:

What safeguards and controls will be incorporated to ensure that the better quality married quarters in popular development areas are not sold leaving the poorer quality houses for Services families; and how many current official Service residences will be retained for representational command appointments.

Earl Howe

After the sale of the married quarters estate, we will retain substantial control over which quarters we retain and which we relinquish in the years ahead. Approximately half the current official service residences in England and Wales will be included in the sale of the married quarters estate. In common with the rest of the estate, they will be retained on underleases where we have a continuing need for them.

Lord Vivian

asked Her Majesty's Government:

Why the Armed Services married quarters estate is to be sold to the private sector on lease back scheme and why the sale of surplus married quarters could not provide greater savings and be more cost effective if undertaken by the Defence Housing Executive rather than by the private sector.

Earl Howe

The purpose of the sale is to improve the quality and management of Service housing, while transferring to the private sector an asset which the Government do not need to own. The sale will enable us to carry out an accelerated programme of improvements to the housing stock which otherwise would not be possible. It will also assist us in reducing the number of empty homes we hold. The Defence Housing Executive is a maintenance and management organisation, and does not undertake property disposals.

Lord Vivian

asked Her Majesty's Government:

What percentage of the sale price will be returned to the Defence Housing Executive for the maintenance and refurbishment of houses if the Agency undertakes the sale of surplus married quarters.

Earl Howe

A successful sale will provide funds enabling the Defence Housing Executive to carry out an accelerated programme of upgrading Service families' homes. The funding will not be fixed as a percentage of the sale proceeds, but will reflect our estimate of need.

Lord Vivian

asked Her Majesty's Government:

Why rents for married quarters were increased by 25 per cent. this year and what rent controls will be implemented in the future.

Earl Howe

It is the independent Armed Forces Pay Review Body (AFPRB) which makes recommendations to the Prime Minister on levels of Service pay and charges, including charges for married quarters. The AFPRB has explained the reasoning behind its recommended increase to married quarters charges of between 10 and 25 per cent. (averaging some 14.5 per cent.) in this year's report [Cm 3091—I], a copy of which is held in the Library of the House. The AFPRB will continue to seek to ensure broad comparability with the private sector in both pay and charges and to recommend married quarter charges which are in line with outside comparators, taking into account the relative disadvantages of living in Service accommodation.