by the Secretary of State for Constitutional Affairs and Lord Chancellor Lord Falconer of Thoroton
I wish to make a statement on the development of the Supreme Court for the UK in the light of recent progress since the matter was last discussed in the House on the 24th July 2006.
The Supreme Court Implementation Programme is on target to deliver the Supreme Court at Middlesex Guildhall in time for the start of the legal year in October 2009.
As the House knows we submitted an application for listed building consent for the Middlesex Guildhall to Westminster City Council on the 5th May 2006 and this application was considered at the Council meeting on the 7th September 2006. Throughout this process we have consulted widely with Westminster City Council, English Heritage and with the Local Amenity Societies and local residents. Westminster City Council Planning and City Development Committee resolved unanimously to grant the applications for planning and listed building consent, subject to formal authorisation from English Heritage and the completion of the section 106 agreement.
We are currently working with English Heritage and Westminster City Council to finalise the terms of the s106 agreement.
In parallel with the planning application we have now appointed Kier Group plc as our preferred bidder and we are in commercial discussions with them prior to agreeing the final contract. We expect to reach financial close with Kier Group early in the new year.
The Middlesex Guildhall construction project remains within the capital construction cost estimate of £30m (at 2004 prices) as detailed in my statement of 14 December 2004.
The capital construction costs involved in the refurbishment of the Middlesex Guildhall will be met by regular charges over a 30-year period as part of the lease and leaseback arrangement we are using and I will be in a position to make a statement on these annual charges when we have achieved financial close. The asset value of the refurbished building, which may be different from the capital construction costs, will be recorded in the Department's Balance sheet.
In addition to the capital construction costs, the implementation of the UK Supreme Court will incur other costs such as DCA professional adviser fees, the project team costs and the non-capital element of the fit out costs including loose furniture, IT services and library books.
The Middlesex Crown Court will cease sitting on 31 March 2007. We have developed detailed transition plans in conjunction with the judiciary to manage the relocation of court work, judges and staff. The intention is to create extra courts at Isleworth Crown Court. On 21 March 2006 the Planning Committee of the London Borough of Hounslow refused planning permission for these extra courtrooms. On 25 May, an appeal was lodged against this decision and our appeal is due to be heard on the 15th & 16th November 2006. We expect to hear the outcome of our appeal early in the New Year.
Once we have reached Financial Close with Kier Group Plc I propose to make a further statement describing the costs involved in setting up the Supreme Court and the re-provision of existing Crown Court facilities currently operating from Middlesex Guildhall.