HC Deb 24 July 2002 vol 389 cc1108-9W
Mr. Hancock

To ask the Secretary of State for Defence (1) what role Annington Homes Ltd. has in deciding which properties are released back to them for disposal; and if he will make a statement; [71817]

(2) how much money has been received in each year since 1996 from the profit share on his Department's homes released to Annington Homes Ltd. for disposal; what share of the profit these amounts represent; and if he will make a statement. [71840]

Dr. Moonie

Annington Homes has no influence over which properties are released to them. They can only reject properties if a release is not in accordance with the sale agreement. This states that a release must comprise, as Annington's minimum entitlement, the lesser of

10 per cent. of a site or 20 units. The Ministry of Defence releases to Annington Homes only those families quarters for which there is no longer a service requirement.

The sale agreement incorporates a profit share agreement which has yielded the following by financial year:

£ million
1997–98 2.29
1998–99 3.53
1999–2000 6.80
2000–01 8.03
2001–02 18.79

The Exchequer receives a proportion of any gains in excess of an agreed level according to the sliding scale as follows:

Percentage
1997 50
1998 45
1999 40
2000 35
2001 30
2002 25
2003 25
2004 25
2005 25
2006 25
2007 22
2008 19
2009 16
2010 13
2011 10