Property is necessary, but it is
not necessary that it should remain
for ever in the same hands.
Rémy de Gourmont
Decisions to dispose of an asset require
thorough
examination and economic
appraisal. Like acquisition decisions
(see Section 4), they must be taken within
an integrated planning
framework that
takes account of service delivery
needs, corporate objectives, financial
and budgetary constraints and
the Government's overall resource allocation objectives.
Disposal options, which include
alternative use, rental, sale, or sale and
lease-back, should
be considered as
part of the acquisition strategy.
Asset disposal terminates control of a
particular
asset, but may generate
the need for a replacement to support the
continuing delivery
of services.
Disposal is therefore a crucial component
of the
asset management life cycle
(see Figure 2.8).
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Figure 2.8
Asset life cycle: the disposal stage
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