§ Mr. LawsTo ask the Chancellor of the Exchequer what reasons underlie the reduction in expenditure by the Office of Government Commerce between 2001–02 and 2002–03; and if he will make a statement. [93441]
§ Mr. BoatengThe level of resource consumption estimated for 2001–02 for the Office of Government Commerce (OGC) in the latest H.M. Treasury Departmental Report (Cm5425) was £88 million, reducing to a planned -£5million in 2002–03. The actual level of resource consumption in 2001–02 was £6million. The change between the estimated and actual outturns for 2001£02 is largely accounted for by a revaluation to and change in timing of the run down of some of the provisions the OGC holds in respect of its obligation to dispose of the Government's remaining surplus Residual Civil Estate. The change in the timing will also affect the outturn for 2002–03 where it is now anticipated that the likely outturn will be some £50 million. Such fluctuations in the valuations of and timing for the sale of the remaining surplus Estate, which reflect market conditions and opportunities, can be expected to continue in the future, although on a smaller scale as the size of the remaining Residual Estate continues to reduce. The actual change in resource consumption between years also reflects a reduction in the level of income the OGC generates.