§ Tim LoughtonTo ask the Secretary of State for Health what changes have been made to the forms of the bid for Inventures agreed in September 2002 by the preferred bidder consortium. [116459]
§ Mr. HuttonNegotiations are ongoing with the preferred bidder and terms are commercial in confidence.
§ Tim LoughtonTo ask the Secretary of State for Health (1) what price has been secured by the sale in the Inventures disposal of(a) St. Margaret's Hospital, Epping, (b) Barnsley Vale land in Bromsgrove, (c) the City Chest Clinic, Derby, (d) Towers Hospital land, Leicestershire, (e) Stretton Hall farmland, Leicester, (f) Sewer Field, Herrison, (g) Herrison Lower Farm Buildings, (h) Herrison Cottages, (i) Brunel House, Gloucester and (j) Newfoundland Court, Bristol; when Insignia Richard Ellis carried out a valuation or valuations of the site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of its suitability for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114090]
(2) what price has been secured by the sale in the Inventures disposed of in land at (a) Key House, Skegness, (b) Limes, Himley, (c) adjoining Reckett House, Clacton, (d) Harwich Hospital, (e) Wilson Hospital, Croydon, (f) Doncaster Moor, (g) Hartlepool General Hospital, (h) Hull Maternity Hospital, (i) Seacroft Hospital, Leeds, (j) Prudhoe Hospital, Prudhoe, (k) Stannington Children's Hospital, Morpeth, (l) Clayton Hospital, Wakefield, (m) Newton Hill, Wakefield and (n) Ashington General Hospital; when Insignia Richard Ellis carried out a valuation or valuations of each site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of its suitability for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114033]
(3) what price has been secured by the sale in the Inventures disposal of land at (a) the Bucknall main site in Stoke-on-Trent, (b) Beeches Hospital, Telford, (c) Worcester Royal Infirmary, Castle Street branch, (d) Coldfast Hospital, Fareham, (e) Knowle Hospital and Cottages at Fareham, (f) St. Francis Hospital, Hayward's Heath and (g) Leybourne Grange Hospital, Middlesex; when Insignia Richard Ellis carried out a 150W valuation or valuations of each site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether each site will be sold to the preferred partner with planning permission what assessment has been made of the suitability of each site for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on each site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114002]
(4) what price has been secured by the sale in the Inventures disposal of (a) Unit 7 Merlin Court in Aylesbury, (b) Beaumont Villa, Northampton, (c) Coach House, Kingworthy, Winchester, (d) Bordon Ambulance Station, (e) Remy Lodge, Northampton, (f) land at St. Mary's Hospital, Isle of Wight, (g) land at St. Mary's Devon, Axminster, (h) land at Brown's Brook, Dawlish, (i) land at Burdock Hospital, Falmouth and (j) Holsworthy Ambulance Station and Health Centre, Holsworthy; when Insignia Richard Ellis carried out a valuation or valuations of each site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of the suitability of each site for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114012]
(5) what price has been secured by the sale in the Inventures disposal of part of (a) Old Manor Hospital, Salisbury, (b) the Severalls Hospital site, Colchester, (c) the De la Pole University Campus at Willerby and (d) the Shotely Bridge Hospital, Consett; when Insignia Richard Ellis carried out a valuation or valuations of the site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of its suitability for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114048]
(6) what price has been secured by the sale in the Inventures disposal of land at (a) Linton Hospital, Maidstone, (b) the Royal Sea Bathing Hospital, Margate, (c) Milford Hospital, Milford, (d) Royal Earlswood North, Redhill, (e) Hill House, Rye, (f) Sheppey Hospital, Minster, (g) Southlands Hospital, Shoreham, (h) Hazel Farm, Southampton, (i) St. John's Hospital site, Stone, (j) Tatchbury Hospital, Tatton, (k) Fair Miles, Hospital Wallingford and (l) Gebec Place, Cholsey; when Insignia Richard Ellis carried out a valuation or valuations of each site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on 151W subsequent sale for development by a developer; whether the site will be sold to the preferred partners with planning permission; what assessment has been made of the suitability of each site for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114003]
(7) what price has been secured by the sale in the Inventures disposal of NHS land at (a) Heath Close, Billericay, (b) Wandsworth Golf Course, (c Tindale Crescent Hospital, Bishop Auckland, (d) the Lord Mayor Treloar site, Alles, (e) Dog Kennel Wood, Aylesford, (f) Park Prevett, Basingstoke, (g) St. Augustine Hospital, Chatham, (h) Mabledon Hospital, Dartford, (i) Storehouse Hospital, Dartforcl, (j) Alpha House, Droxford, (k) St. Ebbas, Epsom Cluster, (l) Horton Farm, Epsom Cluster and (m) Horton Retail Centre, Epsom Cluster; when Insignia Richard Ellis carried out a valuation or valuations of the site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of its suitability for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114065]
(8) what price has been secured by the sale in the Inventures disposal of (a) The Crescent and the Down Road site at St. Augustine Hospital in Chartham, (b) Homelands Hospital, Creek, (c) Winwick Social Club, Warrington, (d) Winwick Farm, Warrington, (e) Scotforth, Piccadilly Gardens, Lancaster, (f) Whittington Hospital Site in Preston, (g) Countess of Chester site in Chester, (h) Cane Hill, Coulsdon and (i) St. Clements Social Club, Ispwich; when Insignia Richard Ellis carried out a valuation or valuations of the site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in the value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of its suitability for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114085]
(9) what price has been secured by the sale in the Inventures disposal of (a) West Park in the Epsom cluster, (b) Graylingwell in Chicester, (c) the De La Pole site at Willerby, (d) Cherry Knowles Hospital, Sunderland, (e) Bisney Hall Farm, Ponteland, (f) Pontefract General Hospital and (g) Wharfedale General Hospital, Otley, (h) Aycliffe Hospital, Newton Aycliffe, (i) St. Georges Hospital, Morpeth, (j) Maiden Law Hospital, Lanchester, and (k) Killingworth Stores; when Insignia Richard Ellis carried out a valuation or valuations of the site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation 152W and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of its suitability for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114084]
(10) what price has been secured by the sale in the Inventures disposal of land at (a) Lea Castle Hospital, Kidderminster, (b) Ledbury Cottage Hospital, Ledbury; (c) Smallwood/Crown Mews/Red House, Redditch, (d) Royal Shrewsbury Hospital, Shrewsbury, (e) Chelmsley ADR, Solihull, and (f) Middlefield Knowle, Solihull; when Insignia Richard Ellis carried out a valuation or valuations of each site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether each site will be sold to the preferred partner with planning permission; what assessment has been made of the suitability of each site for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on each site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114001]
(11) how much land at the Runwell Hospital site in Wickford has been included in the bulk sale of properties in the Inventures disposal; what price has been secured by its sale; when Insignia Richard Ellis carried out a valuation or valuations of the site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of its suitability for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff; [114049]
(12) what price has been secured by the sale in the Inventures disposal of land at (a) Belmont Hospital, Tiverton; (b) Okehampton Castle Hospital, Okehampton; (c) Cookes Green Hospital, Gloucester; (d) St. Leonard's Hospital, Ringwood; (e) Tiverton District Hospital, Tiverton; (f) St. Lawrence's Hospital, Bodmin; (g) Kingsway Hospital, Derby; (h) Grimsby, North side; (i) Springfield, Grimsby; (j) Seathe Hall, Grimsby; (k) Ashover House, London; and (1) Norton Aerodrome, Sheffield; when Insignia Richard Ellis carried out a valuation or valuations of each site on behalf of his Department; what arrangements have been made to compensate the Department for uplift in value between final valuation and eventual proceeds realised on subsequent sale for development by a developer; whether the site will be sold to the preferred partner with planning permission; what assessment has been made of its suitability for future clinical use or key worker accommodation for NHS staff; and whether a requirement will be placed on the site for it to be used wholly or in part for future clinical use or key worker accommodation for NHS staff. [114019]
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§ Mr. HuttonThe list of properties in the portfolio is still in the process of being finalised. Overage agreements will cover uplifts in value.
§ Tim LoughtonTo ask the Secretary of State for Health who is responsible for the final decision of the selection of the preferred bidder for Inventures in his department at(a) ministerial and (b) operational level. [114050]
§ Mr. HuttonFollowing the agreement of officials of the Department of Health and Her Majesty's Treasury, the final decision on the preferred bidder for Inventures will be taken by the Secretary of State for Health and the chief executive of the national health service.
§ Tim LoughtonTo ask the Secretary of State for Health what compensation will be paid to underbidders in the Inventures sale for costs incurred in(a) the bidding process and (b) subsequent legal action. [114051]
§ Mr. HuttonIndependent legal advice confirms that due process was followed. Compensation would therefore be inappropriate. No indication was given that costs would be underwritten, and bidders were therefore placing bids at their own expense.
§ Tim LoughtonTo ask the Secretary of State for Health why the decision was taken to sell the surplus NHS sites in a package as a whole. [114052]
§ Mr. HuttonThe decision to explore a real estate partnership for the retained estate was reached following robust option appraisal, including input from independent property experts, which identified an option which offered the greatest potential return for the public purse.
§ Tim LoughtonTo ask the Secretary of State for Health where the proceeds from the sale of Inventures and NHS properties will be remitted. [114053]
§ Mr. HuttonThe proceeds from the proposed property transaction will be remitted to the Department of Health and will support the modernisation of the national health service.
§ Tim LoughtonTo ask the Secretary of State for Health what criteria were used to determine which of the bids from the four consortia bidding in the Inventures sale were compliant with the bidding process; which Inventures bids were non-compliant, and why; if he will publish the processes used by KPMG to evaluate the bids for Inventures; how much will be paid to KPMG in total for its work in respect of the Inventures sale; and what role was played by KPMG in evaluating the bids for Inventures. [114054]
§ Mr. HuttonAll bids for Inventures were compliant. The evaluation focused on a number of issues, mainly human resource issues and value for money, but also included the use of skills and how transitional arrangements would be dealt with. Details of these processes will be included in the income plan, which will be published one month after financial close. KPMG were involved in the financial evaluation of bids for Inventures. As the transaction is not yet completed, we are not in a position to state what KPMG's fees will be in total.
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§ Tim LoughtonTo ask the Secretary of State for Health who in Inventures(a) commissioned and (b) signed off valuations of the properties forming part of the surplus NHS site sales to be included in the Inventures sale; what restrictions will be included in the bid regarding the subsequent on-sale of Inventures as a separate company; and how many current Inventures staff he estimates will be recipients of incentive schemes when transferred to the preferred bidder. [114055]
§ Mr. HuttonInventures was not involved in the valuations of these properties. Issues around selling-on are being covered in the current discussions with the preferred partner and we expect to share in any profit of subsequent on-sale. Details of staff matters are still being negotiated.
§ Tim LoughtonTo ask the Secretary of State for Health when the Chief Executive of Inventures spoke to each of the bidding consortia about the sale ahead of the announcement of the preferred bidder; what restrictions will be placed on current senior management of Inventures who are transferring to the preferred bidder or completion benefiting financially from subsequent sales of NHS properties included in the Inventures sale; and whether current senior management of Inventures who are transferring to the preferred bidder on completion will be the subject of equity or profit scheme incentives in the SPV acquiring the NHS estates being sold as part of the Inventures sale. [114056]
§ Mr. HuttonContact with bidding consortia was conducted according to rules set down by NHS Estates, which prohibits unchaperoned meetings between the Inventures management team and bidders. To the best of my knowledge, no such meetings have taken place. The corporate structure of the transaction clearly separates into two companies, the Inventures business and the properties.
Receipts from subsequent sales of properties will belong to the company owning the properties and not the company employing Inventures, thus preventing the Inventures senior management from benefiting financially. There are no plans that the senior management of Inventures will obtain equity or profit scheme incentives in the company (SPV) acquiring the property.
§ Tim LoughtonTo ask the Secretary of State for Health what the estimated cost is of the National Audit Office inquiry into the Inventures sale. [114057]
§ Mr. HuttonThis information is not held by the Department of Health.
§ Tim LoughtonTo ask the Secretary of State for Health what legal costs have been incurred by his Department for work done by Beechcroft Wansbroughs in relation to the Inventures sale(a) before and (b) after the announcement of the preferred bidder. [114058]
§ Mr. HuttonThe total cost incurred for work done by Beechcroft Wansbroughs in relation to the Inventures sale, before the announcement of the preferred bidder, was approximately £254,000.
Since that announcement, in early September 2002, further costs of £76,000 have been incurred.
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§ Tim LoughtonTo ask the Secretary of State for Health what arrangements there are for capping the cost of legal work by Beechcroft Wansbroughs in relation to the Inventures sale. [114059]
§ Mr. HuttonBeechcroft Wansbroughs were originally appointed following a competitiveOfficial Journal of the European Community process. Legal rates have been capped for 28 months at the same rate as at 3 January 2001. Fees have been benchmarked against other legal firms to ensure continuing value for money.
§ Tim LoughtonTo ask the Secretary of State for Health what the latest expected completion date is for the Inventures sale; and if he will place the details of the arrangements and valuations with the preferred bidder in the Library. [114060]
§ Mr. HuttonThe completion date for the proposed sale of Inventures will depend on the progress of negotiations with the preferred bidder. Any details will be commercially sensitive until after the completion of the transaction. It is normal practice for business cases to be made publicly available one month after financial close.
§ Tim LoughtonTo ask the Secretary of State for Health on what basis he decided to sell the surplus NHS estates properties outright to the preferred bidder Miller/HBOS. [114061]
§ Mr. HuttonThe Department is currently considering a real estate partnership rather than an outright sale. The transaction aims to derive best value from the retained estate, following detailed option appraisals and evaluations from leading specialists, the input of the district valuer and a competitive process.
§ Tim LoughtonTo ask the Secretary of State for Health what valuation has been placed on the company Inventures without surplus NHS properties attached. [114062]
§ Mr. HuttonAn independent valuation has been carried out, but, as negotiations are currently in progress, it would be inappropriate to publish this commercially sensitive information.
§ Tim LoughtonTo ask the Secretary of State for Health what the outstanding(a) pension and (b) other liabilities of Inventures are; what the ownership structure of Inventures is; and whether the sale terms for surplus properties by NHS estates will specify that the successful bidder must include Inventures in the acquisition. [114063]
§ Mr. HuttonNegotiations are on-going with the preferred partner with regard to the terms and conditions of the staff of Inventures. In accordance with Cabinet Office guidance, employees will be offered access to a scheme certified by the Government Actuary Department as broadly comparable with their current scheme. Staff will then have the option either to transfer their accrued rights or alternatively freeze their rights in the old scheme and enter the new scheme as a new joiner following the transfer. There should therefore be no residual liabilities. As to other liabilities, it is not anticipated that there will be any residual liabilities over and above those that normally arise in the conduct of businesses such as this. Inventures is part of NHS Estates, which is an Executive Agency of the156W Department of Health. Bidders were invited to state whether they attached greater value to Inventures and the retained estate portfolio being sold together, or singly at the short-listing stage. Bidders' responses suggested that better value for money would be obtained through a combined sale, and the evaluation of bids was carried out on that basis.
§ Tim LoughtonTo ask the Secretary of State for Health when Insignia Richard Ellis has carried out valuations of the properties forming part of the Inventures sale; and which sites have been valued more than once. [114163]
§ Mr. HuttonInsignia Richard Ellis has carried out no valuations of the properties forming part of the Inventures sale.
§ Tim LoughtonTo ask the Secretary of State for Health how much has been paid to Insignia Richard Ellis for its work in relation to the sale of surplus NHS properties as part of the Inventures sale. [114164]
§ Mr. HuttonIt is not anticipated that any properties will be sold as part of the Inventures sale.