§ The Secretary of State for Work and Pensions (Mr. Andrew Smith)In my written answer on 24 July 2002,Official Report, column 1583W, I announced that my Department had decided to negotiate with its existing supplier LandSecurities Trillium (LST) to provide estate 18WS and property services to its former Employment Service buildings by expanding the existing PFI (PRIME) contract.
These negotiations have now reached the point where I can announce that agreement in principle has been reached. Subject to contract, the expansion will occur later this year. As part of this deal, my Department will receive £100 million as a transfer payment as part of the agreed valuation of the former Employment Service estate.
The expansion of the PRIME contract represents the best value solution. It will provide a uniform and consistent service with sufficient flexibility to meet the Department's future business needs.
Note: PRIME (Private Sector Resource Initiative for the Management of the Estate) is a PFI contract let to Trillium (now LandSecurities Trillium) in April 1998.