§ Mr. BercowTo ask the Secretary of State for Work and Pensions if he will make a statement on the saving from the PRIME contract with Trillium for estate management services. [18988]
§ Malcolm WicksIn line with the findings of the National Audit Office, the public sector comparator for PRIME estimated that the Department will save £560 million over the life of the 20-year contract. This is some 22 per cent. less than it would have cost the Department had we continued with our previous estate management arrangements.
In addition to this significant reduction in our running costs, the financial benefit of many innovative ideas in the PRIME contract such as the sharing of gains on disposal of properties and various contractor incentivisation and benefit sharing provisions, are now being realised. The first three full years of the contract with Land Securities Trillium has brought about the following returns:
£ million 1998–99 Centralisation of CILOR (Contribution In Lieu Of Rates) Control 3.000 Release of surplus space @ 1.4.98 10.000 Release of space 1.000 1999–2000 Credits from CILOR appeals 12.488 Development Gain 10.992 Utilities reconciliation 2.714 Energy savings 1.709 Release of space .856 Unavailability deduction .128 2000–01 Business rate corrections with LAs 8.000 Development Gain pool 1.000 Energy savings .400 Utilities reconciliation .460