Brian Simpson MEP

Labour Member for the North West of EnglandLakeside, Alexandra Park, Prescot Road, St. Helens, WA10 3TT, Lancashire, UKTel (01744) 451609 Fax (01744) 29832 Emailbriansimpson.labour@virgin.netWeb page www.briansimpsonmep.co.uk

November 2009The Rt Hon Bob Ainsworth – Secretary of State for DefenceMinistry of DefenceOld War OfficeWhitehallLondon SW1A 2EUDear Bob,I have been contacted by one of my constituents who works for the Service Personneland Veterans Agency, an Executive Agency of the Ministry of Defence, providing pay, pensions and compensation services to the Armed Forces and pensions and welfareservices to Veterans. My constituent is based locally, but SPVA is located on threeother primary sites, Centurion at HMS Sultan, Gosport, Imjin Base near CheltenhamSpa and in Kentigern House, Glasgow as well as various satellite offices.I have been informed that The MoD is currently marketing Kentigern House on a saleand leaseback basis. A 20 year lease is being sought in exchange for £47 million pounds. (I understand an offer in excess of £50 million has already been made.) Theactual cost to the taxpayer however over the 20 year lease period will be in the regionof £140 million when rent and maintenance costs are calculated. It was stated at a PCSMoD all members meeting in Kentigern House recently that senior officials withinDefence Estates and Land Forces areas have already admitted that it does not makefinancial sense, but such is the perilous financial situation in the MoD, they need toraise income quickly. If this is the case, there has been severe financial mismanagementacross the MI am further informed that the sale of the building will also threaten the security of 400 jobs in Hewlett Packard (EDS) who is a tenant within Kentigern House and SPVA’s‘business partner’, who, if faced with a massive increase in rental costs, may look torelocate their work elsewhere. This is particularly likely to happen if the rumours aretrue, and it is the case that HP (EDS) currently only pay a peppercorn rent of, allegedly,£1 for their occupancy of Kentigern House. This fact in itself is something of a scandal,if true, as it would allow HP(EDS) an unfair advantage in bidding for contract work,undercutting civil service employees and other commercial suppliers alike, and issingularly deserving of clarification from the Minister.