HM Treasury News Release
94/97                                          31 July 1997
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         REFURBISHMENT OF TREASURY BUILDING 

     Paymaster General Geoffrey Robinson today announced that
negotiations with Exchequer Partnership plc over the
refurbishment of the Treasury building have been terminated. 
Following a review of options, Ministers will now decide what
work on the building is needed and how it should be taken
forward.

     In a written answer to a Parliamentary Question by
Stephen Timms MP (East Ham), Mr Robinson said:

     "At a time when all Departments are undertaking
comprehensive spending reviews and are subject to extremely
tight expenditure controls, my rt hon Friend the Chancellor of
the Exchequer was unwilling to embark on a major construction
project of this scale, which would have involved substantial
expenditure and significant financial risks for the other
Government occupants of the building in terms of the disposal
of property elsewhere.  The plans to refurbish the main
Treasury building under the Private Finance Initiative
represented good value for money in their own terms, but
Ministers judged they had to have regard for wider
considerations.

     "My Rt Hon Friend the Chancellor has therefore decided to
terminate negotiations with our private sector partner,
Exchequer Partnership plc". 


Notes to Editors


1.   Plans to refurbish GOGGS (Government Offices Great George
Street), were announced on 24 January 1995.  Exchequer
Partnership plc were chosen as preferred bidder on 13
September 1996.

2.   If you have access to the Internet, you can find this
news release at http://www.hm-treasury.gov.uk.  Material on
other Treasury issues can also be found at this address.