HC Deb 05 May 2004 vol 420 cc1620-1W
Mr. Hoban

To ask the Secretary of State for Health (1) what the cost to the Department was of the decision to terminate the sale of surplus NHS properties to Miller/HBOS, including costs borne by the potential acquirer, for which the Department will have to pay compensation; [168346]

(2) what discussions the Department has had with Miller/HBOS about the compensation for costs incurred on the aborted property transaction. [168347]

Mr. Hutton

Discussions about levels of compensation are continuing. Once concluded any sums agreed will be declared in the Department's accounts.

Mr. Hoban

To ask the Secretary of State for Health when Miller/HBOS were advised that the deal to sell them the surplus NHS sites would no longer go ahead. [168348]

Mr. Hutton

Miller/Halifax Bank of Scotland were formally informed by NHS Estates that they would not be proceeding with the proposed real estate partnership on 19 December 2003.

Mr. Hoban

To ask the Secretary of State for Health what the proceeds of the sale of surplus NHS sites to the Office of the Deputy Prime Minister will be; what they would have been under the aborted sale to Miller/HBOS; when the receipts will be received; when they would have been received from Miller/HBOS, and how many affordable houses(a) will be built and (b) would have been built on the site under the aborted sale to Miller/HBOS. [168349]

Mr. Hutton

Negotiations concerning the proposed real estate partnership with Miller/Halifax Bank of Scotland had not concluded when the decision was taken not to proceed and it is not possible to say what the final terms would have been, nor the timings of any payments.

Discussions are still underway with the Office of the Deputy Prime Minister (ODPM) on the timing of any transfer and the market value of the sites.

The number of affordable homes to be built on those sites which are transferred will be determined by the ODPM and the planning process.

Mr. Hoban

To ask the Secretary of State for Health if he will list the current owners of each of the surplus NHS sites to be sold to the Office of the Deputy Prime Minister. [168352]

Mr. Hutton

All the properties are owned by the Secretary of State for Health, other than a small number where a leasehold interest is held.

Mr. Hoban

To ask the Secretary of State for Health if he will make it his policy that the proceeds of the sale of each of the surplus NHS sites should be given to the relevant local primary care trust or other local NHS trusts. [168353]

Mr. Hutton

No. All of the sites to be transferred to the Office of the Deputy Prime Minister have been identified as surplus for some time. The cost of managing surplus properties rests with central budgets and these are credited with the benefit of any receipts.

Cash surpluses are added to normal allocations and passed out to the benefit of the entire national health service.

Mr. Hoban

To ask the Secretary of State for Health what proportion of the proceeds of the sale of surplus NHS sites to the Office of the Deputy Prime Minister will be(a) retained by the Department for use on (i) capital and (ii) revenue projects that it specifies and (b) allocated to the local NHS trust in the areas where land sales will take place. [168354]

Mr. Hutton

Proceeds from the sale of surplus land are treated as capital receipts. The net sale receipts, after holding and sale costs have been paid, is added to the overall capital allocations and passed out to the national health service. No funds are earmarked for use either locally or nationally.