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Stormont Estate (Northern Ireland) Order 2006

My Lords, I begin by thanking all those who have spoken. I join the noble    Baroness, Lady Harris of Richmond, in congratulating my noble friend Lady Blood on her very well-deserved recognition. I am sure that the whole House will wish to do that. I begin by thanking the noble Lord, Lord Glentoran, for his observations. The contract will be about £200 million cheaper than using traditional procurement methods, which will provide the Government with best value for money and ensures funding to priority frontline services. That is also a response to the questions asked by the noble Baroness, Lady Harris. On whether it is the best deal secured for the taxpayer, we have had many years of experience of negotiating PFI contracts, many of which have been much larger contracts than what is envisaged for this programme. Examples include the PRIME and STEPS contracts for the Department of Work and Pensions and Her Majesty’s Revenue and Customs, both of which have been running successfully for some considerable time. This partnership approach aligns interests so that the public sector can benefit from new initiatives, such as refinancing. We shall be learning from the experience and track record of other contracts and ensuring that any private sector profit is a fair and reasonable one. We employed a very experienced team of advisers, with an excellent track record with these types of deals. In response to the noble Baroness, Lady Harris of Richmond, I can say that other options were considered. Workplace 2010 is one of the largest contracts of its kind in the public sector in Northern Ireland. We therefore looked at all appropriate procurement options, including traditional procurement, PFI, and a mix of the two. These options were critically analysed as part of the outline business case, which demonstrated clearly that the preferred PFI option would cost the Civil Service £200 million less than using traditional procurement methods. These figures are being refined as the procurement phase progresses. I am certain this option provides the best value for money and ensures that funding to priority frontline services is protected. This contract is an integral part of the overall strategy for the government office estate, which has been developed specifically to ensure sufficient flexibility to deal with future change. Dispersal has been carefully considered, and I assure noble Lords that this strategy will be flexible enough to cope with significant proposals for dispersal of Civil Service jobs in due course. The Civil Service will not be using money other than that currently in the funding envelope. Also, in response to the noble Baroness, Lady Harris, we are satisfied that the objectives of Section 75 and the new TSN are met. This programme is fully committed to its statutory obligations, and has already completed an initial screening equality exercise. A full equality impact assessment is being prepared for public consultation in the early spring of 2006. The outcome of the assessment will inform the development of contracts with private sector partners. The noble Baroness raised the issue of FDA feedback. There has been widespread consultation and extensive engagement with senior civil servants in all departments throughout the period of the Workplace 2010 programme. In response to the noble Lord, Lord Kilclooney, I can say that there is absolutely no political agenda. The Government would adopt an even-handed policy with regard to buildings in Scotland, Wales and England. The change is necessary to allow the government office buildings on the Stormont Estate to be included in a PFI contact for the wider Civil Service estate. It is a key element of our reform and modernisation agenda in Northern Ireland, and will provide much-needed investment to bring a deteriorating estate up to standard and deliver flexible and efficient workspace to support a modern Civil Service. The noble Lord, Lord Kilclooney, raised the issue of not all government buildings being rubbish. The buildings in this group as a whole would need major expenditure were they to be brought up to a satisfactory standard. I reassure the noble Lord, Lord Glentoran, that the money will stay in Northern Ireland for reinvestment in critical areas of need such as education and health. I am unable to give a detailed response to the noble Lord, Lord Laird, about future maintenance work and guarantees, but I give an assurance to the noble Lords, Lord Kilclooney and Lord Laird, on security issues being protected. The people of Northern Ireland can rest assured that this is being done in their interest, and does not form a part of any wider political plot or scheme. The Government’s policy has always been that the people of Northern Ireland stay in our country as long as the majority wish that. Security within the Stormont Estate is of primary concern, and NICS will retain control of security for the majority of the estate unaffected, including parkland. We will negotiate with the private sector to ensure that that security remains. The noble Lord, Lord Laid, asked about costs. We have many years of experience of handling these contracts, as I said in response in response to the noble Baroness, Lady Harris, and are confident that this proposal is in the interests of the people of Northern Ireland.