Brian Simpson MEP

Labour Member for the North West of England

Lakeside, Alexandra Park, Prescot Road, St. Helens, WA10 3TT, Lancashire, UK
Tel (01744) 451609 Fax (01744) 29832 Email briansimpson.labour@virgin.net
Web page www.briansimpsonmep.co.uk

6th November 2009

The Rt Hon Bob Ainsworth – Secretary of State for Defence

Ministry of Defence
Old War Office
Whitehall
London SW1A 2EU

Dear Bob,

I have been contacted by one of my constituents who works for the Service Personnel
and Veterans Agency, an Executive Agency of the Ministry of Defence, providing pay,
pensions and compensation services to the Armed Forces and pensions and welfare
services to Veterans. My constituent is based locally, but SPVA is located on three
other primary sites, Centurion at HMS Sultan, Gosport, Imjin Base near Cheltenham
Spa 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 sale
and 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.) The
actual cost to the taxpayer however over the 20 year lease period will be in the region
of £140 million when rent and maintenance costs are calculated. It was stated at a PCS
MoD all members meeting in Kentigern House recently that senior officials within
Defence Estates and Land Forces areas have already admitted that it does not make
financial sense, but such is the perilous financial situation in the MoD, they need to
raise income quickly. If this is the case, there has been severe financial mismanagement
across the M

I 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 to
relocate their work elsewhere. This is particularly likely to happen if the rumours are
true, 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 is
singularly deserving of clarification from the Minister.
My constituent states that the MoD has failed to properly consult with PCS, the
recognised Trade Union, and seem driven by short term desperation to plug a funding
gap. This is unacceptable and urgent action is needed to halt the plans which are at a
very advanced stage. The existing MoD budget must be utilised more efficiently as an
alternative to wasting taxpayer’s money.

I am confident that when you investigate the details of this sale you will agree that it
should be reviewed.

I would be extremely grateful for your comments on the above.

I look forward to hearing from you soon,

Best wishes,

Brian Simpson MEP

Chairman of the Transport and Tourism Committee in the European Parliament

Labours Team in Europe

Brian Simpson MEP 01744 451609 ~ Arlene McCarthy MEP 0161 906 0801