§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
How many square metres of the former Employment Service Estate, to be outsourced by the Department for Work and Pensions to Land Securities Trillium, can be vacated under the contract in each year up to 2018; and [HL5259]
Why the Valuation Office was instructed to value the Employment Service Estate on a vacant possession basis when the Department for Work and Pensions is committed to occupy and pay an annual charge on the majority of the Estate for the next 15 years; and [HL5261]
Further to the Written Answer by the Baroness Hollis of Heigham on 29 October (WA 45–46), in respect of the Former Employment Service Estate to be outsourced by the Department for Work and Pensions to Land Securities Trillium, whether they will place in the Library of the House full details of the "transparent and demonstrable calculations" necessary to ensure that value for money is obtained; and [HL5287]
In respect of the former Employment Service Estate to be outsourced by the Department for Work and Pensions to Land Securities Trillium, who has undertaken ongoing independent scrutiny to ensure the robustness of the outcome; how the results of that scrutiny have been reported; when; and to whom; and [HL5288]
Why the freehold properties in the former Employment Service Estate are to be transferred to Land Securities Trillium at a price of £100 million compared with the agreed valuation of £128.4 million.[HL5289]
§ The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Hollis of Heigham)The arrangement negotiated with Land Securities Trillium as part of the expanded PRIME contract allows the department a flexible approach to the way it can vacate its surplus property without additional cost. In total 228,000m² can be vacated on this basis. This has been profiled in the medium term to reflect the requirements of the department's Estate Strategy and it is not possible therefore to provide an estimate for each year up to 2018.
The Valuation Office was instructed to value the former Employment Services estate on the basis of vacant possession as this is the way in which Land 309WA Securities Trillium was asked to price its bid and because the investment value of the department's occupation during the term of the contract is reflected in the unitary charge that DWP will pay Land Securities Trillium for occupying space.
It is not possible to publish information in relation to the value for money calculations, as this remains commercial in confidence at the current time. The National Audit Office is carrying out an independent scrutiny and its report is due to be published in spring 2004.
The department has sought to obtain the best value from the way it received payment for its properties. It was found that a capital receipt of £100 million from Land Securities Trillium, with the balance of the property values used to reduce the ongoing unitary charge payments, provided us with the optimum value for money solution.