§ Denzil DaviesTo ask the Chancellor of the Exchequer what the total saving to his three departments has been in each of the years to April(a) 2002, (b) 2003 and (c) 2004 arising from the STEPS agreement. [178604]
§ Dawn PrimaroloOver the 20-year life of the STEPS contract, when compared with the Public Sector Comparator, the Departments expect to save £344 million (in net present values), with an estimated first year saving of some £27 million. In addition further benefits and savings will accrue over the life of the contract, for example through the transfer of risk and payment by the departments of a reduced facilities price as an offset against the deferred capital payment at the outset of the contract. Because all of these savings and benefits are taken over the 20 year life of the contract it is not possible to quanify annual savings.