Letter to the Clerk of the Committee from
the Parliamentary Relations and Devolution Department, Foreign
and Commonwealth Office, 23 February 2004
DEPARTMENTAL PROPERTIES
Thank you for your letter of 5 February requesting
further information on the sales and purchases of residential
properties by the Foreign and Commonwealth Office.
As the Answers to the Parliamentary Question
tabled by Mr John Maples MP indicated, we are unable to provide
details of individual sales and purchase figures for reasons of
commercial confidentiality.
In the vast majority of cases property sales
were not matched by direct purchases. This is because many of
the properties which the FCO has sold in recent years have been
surplus to requirements; or it was clear that it made more sense,
from a value for money viewpoint, to reprovide by leasing replacement
assets. I attach a table which indicates the net gain (or loss)
of those properties which were sold and where we replaced them
by new purchases. As you will note, the FCO did not derive a net
gain in all such transactions. To take the Residence in Guatemala
as an example, the FCO was clear that the rationale for disposal
was that the property concerned was no longer fit for purpose
and that it was necessary to invest additional resources in order
to acquire a more modern property which did meet our business
needs.
You also asked about the FCO's rental bill during
the period 1998-99 to 2002-03. The information is set out below:
|
| 1998-99 | 1999-2000
| 2000-01 | 2001-02
| 2002-03 |
|
| £62,264,785 | £63,199,089
| £63,247,783 | £65,548,520
| £63,055,130 |
|
As you will see the FCO rental bill has remained fairly stable
during the period in question, helped by movements in exchange
rates and favourable market factors. It is difficult to predict
how the FCO rent bill will change in future years since this will
continue to depend upon changes in market forces which are beyond
our control. But I can assure the Committee that the FCO is firmly
committed, in its negotiations with individual landlords, to getting
the best deal possible from landlords where market conditions
permit.
Matthew Hamlyn
Parliamentary Relations and Devolution Department
Foreign and Commonwealth Office
23 February 2004
|
