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Land Securities Trillium

Volume 455: debated on Thursday 11 January 2007

To ask the Secretary of State for Work and Pensions what the (a) costs and (b) liabilities are relating to his Department’s Private Finance Initiative contract with Land Securities Trillium; and if he will make a statement. (109514)

The forecast cost and liabilities for the Department’s Private Finance Initiative contract with Land Securities Trillium between 1998 and 2018 is £11.517 billion including rates and utilities. The capital values for the contracts are £455 million. The Unitary Charge element, based on actual cash payments to date plus estimated payments to the end of the contract is estimated to be £9.7 billion. The balance between the £11.5 billion and the £9.7 billion is accounted for by rates and utility pass through costs.

The NAO report of 1998-99 estimated that this contract cost 22 per cent. less than continued public sector ownership and management of the estate.