Sale of Ministry of Justice Land: Gloucester

(Limited Text - Ministerial Extracts only)

Wednesday 16th December 2015 Westminster Hall

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

As always, Mr Nuttall, it is a pleasure to serve under your chairmanship.

I congratulate my hon. Friend the Member for Gloucester (Richard Graham) on securing this debate on a subject that is vital for the residents of Gloucester. I also take this opportunity to put on the record the huge amount of work that he has done for the people of Gloucester, not only regarding this particular piece of land but more generally. As far as this issue is concerned, he has engaged with me on a regular and active basis, and he has also been instrumental in ensuring that the many other stakeholders and key players involved in the whole of this transaction have been engaged with one another. He has been instrumental in ensuring that all the threads are woven together to make one canvas, so that hopefully in the new year we will be able to arrive at an agreeable solution.

Of course, my hon. Friend and I have met on a number of occasions to discuss this issue and we have also corresponded about it. He has a terrific vision for Gloucester. My officials have engaged extensively with representatives from the many other interested parties on how the land owned by Her Majesty’s Courts and Tribunals Service in Great Western Road can form part of the wider regeneration of the city.

Let me explain at the outset that the piece of land in question was purchased quite some time ago with the intention of building a new Gloucester court. The freehold interest in the site was one of a number of magistrates courts and other properties transferred to the Courts and Tribunals Service under the Transfer of Property (Abolition of Magistrates’ Courts Committees) Scheme 2005. Since that time, the site was used temporarily as a car park by the national health service and was later used as a store to facilitate works to the adjacent railway. As my hon. Friend indicated, for quite some time it has not been in use.

Following an approach by Gloucester City Council, the Courts and Tribunals Service considered a request to transfer the land. In support of its request, the council asked that we take into account the wider economic development of the area and its importance for the city as a whole. My hon. Friend will appreciate that the Ministry of Justice and Gloucester City Council have a duty to achieve best value for the taxpayer at large and for the citizens of Gloucester. As part of that duty, the Ministry of Justice is obliged to work within Her Majesty’s Treasury guidelines for managing public money. That means that, when disposing of surplus property assets, we must always seek best value for the taxpayer. The council, for its part, has to consider the potential return on its investment in a future lease arrangement.

After careful consideration of the representations made by my hon. Friend, the council and others, it was decided that the land was no longer required for a court or tribunal building. That cleared the way for the Courts and Tribunal Service to move towards a sale of the land, at market value, to Gloucester City Council.

I understand that the council intends to enter into an agreement that would see the site being used as a car park, which, as my hon. Friend highlighted in his speech, would improve access to the nearby railway station. The redevelopment of the land is an important part of the vision to regenerate the city. Of course, the use of the site as a car park also has broader implications for the highways and traffic management within the area. This is not a simple issue but one that is complex and that involves a number of other agencies.

The Ministry of Justice has been in regular and constructive dialogue with the council, and I am pleased to say that much progress has been made. However, both parties have produced their own valuations of what the property is worth. Nevertheless, we may now be nearing some sort of agreement. I hope my hon. Friend will appreciate that, for reasons of commercial confidentiality, I cannot divulge the final details of the valuations or the negotiations. He will understand that, as is the case in almost every transaction of this kind, there are many aspects of the proposal to discuss, including the future development potential of the site; the current and future planning status; whether there should be any conditions attached to the completion of the sale; the timing of any such conditions; whether any overage or clawback should be applied, and if so, how much and over what time; what price should be paid; and whether that price should be paid in one lump sum or in staged payments.

While there remain technical details to resolve, I share my hon. Friend’s enthusiasm for seeing the matter settled, and both parties continue to work towards achieving a deal that is acceptable to all concerned. I emphasise that there is no lack of willingness on our side to achieve a mutually beneficial sale.

I turn briefly to the wider changes that we are making to courts and tribunals in England and Wales as part of our court reform programme. We have conducted a consultation on the possible closure of 91 courts and tribunals across England and Wales. The HMCTS estate is a major asset, but many buildings are underused. Indeed, around a third of our courts are used at less than half their capacity. Our proposal is to close the less efficient buildings and to transform the way that courts and tribunals operate and deliver services to the public in the future.

Those improvements cannot be secured without some difficult decisions having to be made, but I genuinely believe that the court reform programme offers a once-in-a-generation opportunity to create a modern, user-focused and efficient Courts and Tribunals Service.

[Richard Graham]

The Minister is kind to give way. I promised him that I would not extend this debate to cover the issue of the future of the courts, but I just thought it would be helpful to him if I were to put on the record the offer that Gloucester has made to the Ministry of Justice. Effectively, it is to provide land free of charge in the wonderful central area of Blackfriars, very close to the current Crown court, the families courts and the magistrates courts, to create a single justice centre for all the courts and tribunals in the city, which will provide justice for the people of Gloucestershire. I hope he will consider that offer.

[Mr Vara]

In his usual eloquent way, my hon. Friend has managed to sneak into this debate another angle, which obviously also involves his speaking up for constituents in Gloucester. I commend him for that. I am mindful of the submission that he and the people of Gloucester have made, and we are reflecting on it. No decisions have been made so far regarding the wider consultation.

As far as the court reform programme is concerned, we must recognise that the world outside the courts is changing rapidly. In the 21st century, we expect to be able to transact our business online, quickly, efficiently and at a time that suits us. Cheques and paper forms have been replaced by contactless payment cards and smartphone apps. The Courts and Tribunals Service has already established alternative ways users can interact with its services, such as the use of video links, and it is looking to expand the provisions to provide more choice than is currently available. That includes exploring whether appropriate use can be made of civic and other buildings for certain types of hearings. My hon. Friend is aware that Gloucester magistrates court is included in the consultation. The proposal is for criminal work from the court to be transferred to Cheltenham magistrates court. As he is aware, we are analysing all the responses to the consultation, and we have not made up our mind or made any decisions so far.

For the sake of good order, I assure my hon. Friend that the sale of the land at Great Western Road does not impact in any way on the decisions that will need to be made following the consultation. He will understand that I cannot give him notice of the finalised transaction, for the reasons I have given. I very much hope, however, that he and his constituents will be in no doubt that I support the positive vision that is regeneration in Gloucester—a matter that he has so forcefully put across. The Ministry of Justice is keen to be a part of that vision, and we are taking steps to ensure that we do not stand in the way of progress. At the same time, he will appreciate the importance of my Department faithfully discharging its duties to taxpayers and ensuring that we deal with valuable assets responsibly.

I again congratulate my hon. Friend on securing this important debate. I very much hope that, in the new year, there will be some resolution to all the hard work that he has put in on behalf of his constituents.

Question put and agreed to.