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Fire Services: Contracts

Volume 489: debated on Tuesday 17 March 2009

To ask the Secretary of State for Communities and Local Government pursuant to the answers to my hon. Friend the Member for Ruislip-Northwood (Mr. Hurd) of 26 January 2009, Official Report, column 108W, on fire services: contracts, and of 22 January 2009, Official Report, column 1635W, on Government contracts, who authorised the decision not to include the recommended break clauses in the regional fire control rooms contracts. (263931)

There are three main contracts that CLG are responsible for in relation to FiReControl. Of these, the IT contract with EADS Defence and Security and the Facilities Management contract include appropriate non default termination provisions. These are in line with OGC Guidance.

The RCC leases are structured as finance leases, to defer capital cost over the stated intended life of the project. This was done to maximise VFM through the use of a core public sector/government covenant to maximise the investment value of such assets over an extended period, and thereby reduce cost to the public purse. The insertion of break clauses, while feasible, would have reduced or removed the benefits of that covenant yield and, ultimately, increased the cost of the initial asset.