HL Deb 08 September 2003 vol 652 cc31-2WA
Lord Lester of Herne Hill

asked Her Majesty's Government:

When the present headquarters of the Home Office was built; and what was the cost (including fitting-out and moving costs) taking inflation into account. [HL4048]

Baroness Scotland of Asthal

The lease for the present headquarters of the Home Office commenced on 24 June 1976. The costs associated with their fitting out and moving are not known. They were the responsibility of the former Property Services Agency (PSA).

Lord Lester of Herne Hill

asked Her Majesty's Government:

What is the estimated total cost of building and fitting out the proposed new headquarters for the Home Office, and of moving there from the present headquarters. [HL4049]

Baroness Scotland of Asthal

The demolition of the previous building, design, construction, fitting out and operation of the new Home Office headquarters in 2 Marsham Street is a PFI for a period of 29 years (three years construction, 26 years operation) commencing 26 March 2002.

The net present cost (NPC) at the time of contract signature in March 2002 was £311 million reflecting an initial annual cost of £30.3 million. The capital cost of the building including its fit-out is the responsibility of the Supplier Annes Gate Property plc (AGP).

The costs of moving staff, excluding IT. are part of the PFI. The IT costs associated with the move are currently being negotiated with the PFI supplier for the Home Office IT services, SIRIUS.

Lord Oakeshott of Seagrove Bay

asked Her Majesty's Government:

What are the Home Office's estimates of the current open market value with vacant possession of their surplus central London freehold properties Cleland House, Abell House and Horseferry House; and what professional advice they took on the risks of double-banking their exposure to the central London office market at financial close of their commitment to their new headquarters in March 2002.[HL4207]

Baroness Scotland of Asthal

The most recent open market valuations with vacant possession were prepared in March 2002:

Cleland House £23.3million
Abell House £27.3million
Horseferry House £17.7million
Total £68.3million

These figures were provided by a leading firm of independent property consultants familiar with the central London office market. The department's accommodation strategy has secured the disposal by way of an agreement for the transfer to the Department of Constitutional Affairs of the present Home Office at 50 Queen Anne's Gate. This follows the transfer in December 2002 of Clive House to that department. Together this reduces the department's exposure to the London office market by about 39,500m2. Inclusion of the sale of the above freehold buildings in the PFI contract for 2 Marsham Street was considered. However, the property consultants advised the department that the price tendered by the developer of £33.75 million was unlikely to offer better value for money in comparison to their expectation of what the department would achieve by arranging disposal of these buildings using a competent firm of property agents. The Office of Government Commerce also advised that it could be better value to the Exchequer as a whole if the properties were retained for potential other government use should one be identified before the new headquarters at 2 Marsham Street is occupied, Decisions on the sale of these buildings have still to be reached.