The Government says it notes the comments made by Allan Asquez, owner of VSB Limited, relating to the negotiations in respect of the demolition and construction of the new stadium. 

A statement from the Government follows below:

• Mr Asquez has challenged HMGoG to publish the figures discussed by the parties in relation to the potential settlement. 

• In Mr Asquez’s latest correspondence he sought £1.755 million in cash as well as a lease in  the new stadium development. 

• HMGoG is advised that Mr Asquez’s legal entitlement is £115,440 – HMGOG offered a  substantially higher reasonable amount. 

His Majesty's Government of Gibraltar notes the comments made by Mr Allan Asquez, owner of  VSB Limited, relating to the negotiations in respect of the demolition and construction of the new  stadium. 

HMGoG is committed to transparency and fairness in these negotiations, which have been  conducted in accordance with Gibraltar law and with significant goodwill extended to VSB Limited. 

As requested by Mr Asquez, the Government is setting out the amounts claimed by him, his  entitlement under Gibraltar law, and the offer made by HMGOG to Mr Asquez, which was rejected. 

MR ASQUEZ’S REQUEST (VSB LIMITED) 

VSB Limited has submitted a claim totalling £1,755,000, in addition to the new premises at the  stadium development which would themselves have significant value, putting the total value of  what Mr Asquez has claimed at well above £2m. The claim is broken down as follows: 

· Murga Bar: A 149-year underlease at the new stadium development. Although this will  have considerable value, no specific amount is assigned to it in this analysis of the value  of the offer by Mr Asquez. 

· Loss of Earnings: Compensation of £500,000 OR exclusive catering rights at the  Europa Sports Facility. 

· Dining 54: Settlement of outstanding invoices for works carried out in these premises  (£255,000) and allegedly funded by Mr Asquez and legal fees (£50,000). 

· Victoria Stadium Kiosks: Either alternative catering premises (in addition to the new  premises) or a cash settlement of £950,000.

THE LEGAL POSITION 

HMGoG is advised by its legal team that the legal position under the Landlord and Tenant Act is  clear: 

· VSB Limited is entitled to £55,440 under Section 49(2) for the termination of its  tenancy. 

· An additional £60,000 is payable under Section 56 for relocation and refurbishment  expenses. 

This totals £115,440, which represent the full extent of VSB Limited's legal entitlements. Contrary  to Mr Asquez’s comments, Gibraltar law does not confer a right to alternative premises or  additional compensation beyond this amount. 

HMGOG'S OFFER 

Despite the significant disparity between Mr Asquez’s demands and his legal entitlements, HMGoG  had extended the following offer as a gesture of goodwill: 

· A 21-year commercial lease (despite the fact that he is only entitled to a rental) in the  new stadium development, valued at £800,000. The cost, if any, of the new lease to Mr  Asquez would have been subject to negotiation. 

· Part of the metres squared of the kiosks at Victoria Stadium would be within the  footprint of the new stadium bar, which Mr Asquez claimed he had a right to. HMGoG  does not agree that Mr Asquez had any legal right to the kiosks within the stadium and  therefore this was a gesture of pure good will.  

Additionally, the Government’s understanding is that Mr Asquez owes £136,000 in rent arrears,  which Mr Asquez states is incorrect. The Government was prepared to explore whether the figure  owed was in fact £136,000 or otherwise and settle on the basis of the amounts that could be agreed  after analysis.  

In so far as Mr Asquez’s request for the settlement of all of his outstanding bills and legal fees, the  Government has requested evidence from Mr Asquez of these figures, which, to date, has not been  provided. HMGoG was willing to pay any amounts due for works to Dining 54, if this amount had indeed been funded by Mr Asquez, but no evidence of this has been produced as requested.   

Finally, Mr Asquez should know that all monies paid by UEFA and FIFA were paid to the GFA and  NOT HMGoG. The Government received a payment of £16.5 million from the GFA in exchange for  the development rights over the site in question. 

While HMGoG remains committed to resolving matters amicably with Mr Asquez, it is paramount  that negotiations respect the legal framework and the principles of reasonableness and fairness  given that these arrangements would be funded by the taxpayer. 

HMGoG is willing to continue discussions with Mr Asquez and VSB Limited in good faith, but it has  an obligation to ensure that the interests of Gibraltar and its taxpayers are safeguarded in any  arrangements and will not enter into any agreement that does not pass that test. In the process of  compulsory purchase Mr Asquez and the Government will have the benefit of an objective  assessment of fairness and reasonableness being made by a judge of the Supreme Court if the  parties are unable to agree on the right figure for settlement. 

A settlement request for circa £1.8 million in addition to a lease for premises at the new stadium  development by Mr Asquez, when his legal entitlement is £115,440 will under no circumstances be  agreed by HMGOG.