Q181 Mr Williams: What use have you been able to make of the 70,000 square feet that have been released?
Mr Hopkins: It comes in two forms, either freeholds or leaseholds so it depends on where it is and what it is. We have managed to sell a freehold down at Southampton where we paid some of the development gain back to the departments. They have a share in that.
Q182 Mr Williams: They do have a share in any profit?
Mr Hopkins: We pay part of the profit we make on the property back to the departments. That is part of the transaction. Some of the leaseholds that we have had we still have sitting vacant so that is the risk transfer that is passed across which is something we need to deal with.
Mr Williams: To save time can you let us have a note on this arrangement.10 I am relieved to hear that you are sharing the profit.
Q183 Chairman: Lastly before we go into private session, there is one further question that we can ask in public. If you look at 3.7, which you will find on page 24, you will see that you needed to find out more about the cost consequences of the deal being terminated. It says: "The Chairman also believed it was crucially important to get a better understanding of the consequences of the contract coming to a premature end . . ." What I do not understand is why you signed the contract without working out all the consequences of your position on termination?
Mr Varney: I think that is indeed one of the lessons from this Report. It is drawn out precisely by the National Audit Office in terms of lessons to be learnt for the future.
Q184 Chairman: Thank you very much. We will now move into private session. Would members of the public and people who are not officials connected to this please leave.
Mr Varney: Chairman, would you be happy if Mapeley withdrew?
Chairman: Alright.
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