Q131 Mr Bacon: They did not do an index-linked bond.
Mr Jones: No, we did not. AGP were part of that transaction as well.
Q132 Mr Bacon: But it was not a bond, it was a bank loan.
Mr Jones: No, it was not a bond. The reason why it was not was predominantly because of the size of that transaction; it was a transaction of about £80 million bank debt. Generally what we find is that there is a cut-off threshold at which the bank and the bond become better value for money. I would say above about £120 million the bond generally becomes better value for money and below that a bank deal.
Q133 Mr Rendel: When was the demolition originally due to be completed?
Mr Racine: November. Due to be completed? Sorry, August this year.
Q134 Mr Rendel: When was it completed?
Mr Racine: Let us say two months after August.
Q135 Mr Rendel: The briefing we have had from the NAO, Mr Gieve, tells us that you told them that AGP did complete demolition in August and that was nearly three months ahead of schedule. It sounds as though they did not complete it in August and that it was two months behind schedule.
Mr Racine: May I comment on this?
Q136 Mr Rendel: If you like, if you can get Mr Gieve out of his problem.
Mr Racine: Just to explain. When the demolition was completed in August, in the basement there are some huge rotundas which are very difficult to demolish.
Q137 Mr Rendel: I noticed them. I live close to the area.
Mr Racine: We were stuck in one particular area of the site for longer than this, but it did not prevent us from starting the works as planned in our schedule, which means that the information given is correct.
Q138 Mr Rendel: The demolition was later than expected. Mr Gieve, can you still explain to me why you apparently told the NAO that the demolition was completed in August and that was three months ahead of schedule?
Mr Gieve: It sounds as though that was a mistake, if that is what we said.
Q139 Mr Rendel: Would the NAO like to comment on that? Part C of your briefing appears to say that the Home Office told you that it was completed in August, three months ahead of schedule. Can you confirm that was what you were told?
Mr Airey: Yes, that is right.
Q140 Mr Rendel: Perhaps, Chairman, we might like to ask Mr Gieve whether he can go back to whomever gave that information and let us have a note on why wrong information was given.
Mr Gieve: Yes.18