STEPS Agreement

Treasury written question – answered on 19th July 2004.

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Photo of Mr Denzil Davies Mr Denzil Davies Labour, Llanelli

To ask the Chancellor of the Exchequer pursuant to his answer of 15 June, Official Report, column 835W, on the STEPS agreement, what his present estimate is of the total payments over the 20 years' contract that will be paid to Mapeley STEPS Ltd. for the Chancellor's departments.

Photo of Dawn Primarolo Dawn Primarolo Paymaster General (HM Treasury)

In their report on the STEPS deal, the NAO estimated that the Departments would pay Mapeley STEPS Contractor Ltd. some £1,500 million over the 20 years of the contract. This relates to the major contract price element (the facility price) for serviced accommodation. The NAO noted that this cost reflected the Departments anticipated requirements which may vary over time.

Taking this uncertainty into account, the figure contained in the NAOs report remains a reasonable estimate of the likely total Facility Price payments due to Mapeley over 20 years.

In addition to this the contract provides a flexible framework in which we are able to transact with Mapeley to provide a range of services including, utilities, business rates, and major and minor building works. Under the contract the cost of these additional services are charged on to the departments separately and will vary according to demand.

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