HL Deb 31 July 1997 vol 582 c81WA
Lord Graham of Edmonton

asked Her Majesty's Government:

What progress has been made on the proposal to refurbish the Treasury building in Great George Street under the Private Finance Initiative.

Lord McIntosh of Haringey

At a time when all departments are undertaking comprehensive spending reviews and are subject to tight expenditure controls, my right honourable friend the Chancellor of the Exchequer was unwilling to embark on a major construction project of this scale, which would have involved substantial expenditure and significant financial risks for the other government occupants of the building in terms of the disposal of property elsewhere. The plans to refurbish the main Treasury building under the Private Finance Initiative represented good value for money in their own terms, but Ministers judged they had to have regard to wider considerations.

My right honourable friend the Chancellor has therefore decided to terminate negotiations with our private sector partner, Exchequer Partnership plc.