Written question asked by Michael Jack (Conservative) on Wednesday, 14 November 2007, in the House of Commons. It was due for an answer on Monday, 19 November 2007. It was answered by Anne McGuire (Labour) on Wednesday, 12 December 2007 on behalf of the Department for Work and Pensions.

Departmental Buildings

Question: To ask the Secretary of State for Work and Pensions what formula will be used to determine his Department's share of the sale receipts when the Government offices site at Heyhouses Road, St. Annes is disposed of.

Answer: Financial gain may be generated by the expanded PRIME Contractor, Land Securities Trillium, from the sale of buildings which DWP return to them as surplus under the flexibility to vacate options in the contract. The sale prices over each financial year are pooled and compared to the Base Values listed in the contract as at 1 April 1998 (or at December 2003 for buildings covered by PRIME Expansion). Base Value is the price placed on a property, assuming vacant possession, at the start of the contract.Properties can also attract a financial loss however, whereby the sale of the property and the associated costs of this are less than the Base Value. Any such losses are therefore offset against positive gains and any resulting net gain is shared 50:50 between the Department and LST.Negative gains are offset against positive gains and any resulting net gain is shared 50:50 between the Department and Land Securities Trillium.

Secondary information