HC Deb 05 March 1998 vol 307 cc767-8W
Mr. Baker

To ask the Chancellor of the Duchy of Lancaster if he will list the properties and land owned by his Department which he has identified as surplus to requirements, giving in each case their estimated value. [30313]

Mr. Kilfoyle

[holding answer 23 February 1998]: For this purpose the Cabinet Office includes the Prime Minister's Office and the Office of Public Service and its executive agencies.

The Cabinet Office is reviewing the use of all its assets, including identifying assets which are surplus to requirements, as part of its Comprehensive Spending Review which will be completed this summer.

The Cabinet Office has, so far, identified only one building as surplus to our requirements. We are currently in the midst of negotiations to sell the property and to reveal our estimate of the value of that building would prejudice our position and the eventual income to the Exchequer.

PACE, Property Advisers to the Civil Estate, was set up as an Executive Agency of the Office of Public Service on 1 April 1996. In addition to the buildings it occupies for its own use, PACE also inherited all the wholly vacant buildings then on the Civil Estate.

PACE is charged with the disposal of this vacant estate which currently totals some 286 properties. I have asked the Chief Executive of PACE to write separately to the hon. Member.

Letter from John C Locke to Mr. Norman Baker, dated 5 February 1998: I have been asked by the Parliamentary Secretary, Office of Public Service, to reply to your Parliamentary Question relating to the estimated value of the surplus government properties for which I have responsibility. From 1 April 1996 responsibility for individual properties was transferred to government departments. At the same time, PACE inherited wholly vacant properties that were at the time surplus to departments needs. Departments retain responsibility for all accommodation subsequently declared surplus. Our Annual Report and Accounts spells out the numbers and value of the surplus property for which we are responsible. We inherited 384 properties in April 1996 which were reduced to 268 properties by March 1997. We are on target this year to achieve a further 110 disposals. The majority of the properties are leaseholds with a negative value. At 1 April 1996 this negative value was £486 million and at 31 March 1997 it was £433.3 million. So far as freeholds are concerned the opening positive book value was £80.2 million at 1 April 1996, reducing to £67.6 million at 31 March 1997, taking into account the disposals achieved during the year. Copies of our Annual Report and Accounts have been placed in the libraries of both Houses of Parliament. Our second Annual Report and Accounts will report the position at 31 March 1998. It might be helpful for me to explain how this value of surplus accommodation has arisen. Since 1990 the marked decline in civil service staff numbers, combined with rationalisation, relocation out of London and the more effective use of office space, has enabled Departments to declare an ever increasing volume of space surplus to requirements. Sluggish market conditions in the past have not enabled disposals to keep pace with these surrenders although the market has now picked up particularly in London. In the longer term reductions in the size of the government's office estate will provide the taxpayer with even greater value for money.