The PSC included substantial costs for the Crumlin Road Courthouse

2.20  The PSC included an annualised cost of £600,000 for the Crumlin Road Courthouse. This was based on the assumption that, if Crumlin Road remained in the Service's ownership, there would be pressure for the full restoration of such a landmark building for Belfast. The inclusion of the carry costs for the Crumlin Road Courthouse increased the cost of the public sector comparator by some £7 million in net present cost terms (Figure 12).

2.21  The (former) Construction Service Agency provided an estimate of the costs for Crumlin Road as follows:

  £420,000 to close down the building and to make it safe until the Service could secure further capital;

  £1.5 million for structural repairs to the envelope of the building to reduce water ingress and strengthen the stonework; and

  £4.65 million for the restoration of the building to its listed status

2.22  The Service considered that, had Crumlin Road been retained in public ownership, these costs were the minimum required to restore the courthouse to a safe condition and to retain its listed building status. In effect, the building had a net negative value. On this basis, the Service considers that the transfer of the building to Consul represented excellent value for money.

2.23  The Service believes that it would almost certainly have had to bear the costs but for the completion of the PFI deal. The assumption was that Crumlin Road Courthouse would not have any interest for the private sector, was likely to remain in the Service's ownership and therefore the costs in the PSC would have been a legitimate call on the Service's resources. There was no public sector interest in taking over the Courthouse and the PFI scheme effectively tested the open market interest for the building - in the event only Consul made a viable proposal.