Examination of Witnesses (Questions 6820
- 6839)
6820. BARONESS FOOKES: Supplementary
to that, is it a requirement then that all the former owners should
have an interest or is it open to such former owners who are interested
in this to put forward a scheme?
6821. MR MOULD: It is the latter, such
former owners as are interested. If there are 20 interests in
the site which the Secretary of State identifies to offer up to
the market following construction of the station works, it is
not necessary that all 20 should participate in the consortium.
6822. BARONESS FOOKES: I think that is
important because I got the impression from Mr Pritchett that
he thought that was the case but it is not.
6823. MR MOULD: Yes.
6824. BARONESS FOOKES: Therefore how
would he then set about keeping in touch with Crossrail? Is it
up to him and the former owners to keep in touch with Crossrail
about further developments? Is there any mechanism by which you
inform him or them?
6825. MR MOULD: No, I think it would
be up to him essentially, but Mr Smith has been working, in relation
to a number of sites to which this policy will apply, with landowners
who have aspirations to do what Mr Pritchett has sought the opportunity
to do and those negotiations are in various stages of progress
with a view to reaching agreement in due course. I think Mr Smith
referred you to Appendix 1 to the land disposal policy document,
paragraph 1, "Where an address of the former owner of a Qualifying
Interest in the whole or part of the site is known a letter will
be sent by or on behalf of the Secretary of State". I do
not need to read it all out but it is set out there.
6826. BARONESS FOOKES: Thank you very
much.
6827. CHAIRMAN: Mr Mould, there is a
little bit of history here, I think. The Crichel Down Rules originated
with a parcel of land in Wiltshire requisitioned, if I remember
rightly, from the Addington family.
6828. MR MOULD: In wartime.
6829. CHAIRMAN: And when it was not wanted
by the Ministry of Defence any more, or whoever it was at that
timeit was not the Ministry of Defenceit was not
offered back to the Addingtons.
6830. MR MOULD: That is right.
6831. CHAIRMAN: There was a row about
this, and since then the Crichel Down Rules were that there was
a pre-emption for the original owners if it had not been changed
in character, because it was still open land.
6832. MR MOULD: That is right, yes.
6833. CHAIRMAN: That does not work in
central London and therefore there has had to be a modification
and, as Lady Fookes has just been exploring with you, somebody
may have a pre-emptive right, but then they may have to get together
with other people because somebody has got to put in a planning
application for what is going to be built over the top of the
ticket hall. If it is a collection of the people who were previous
owners of the land they will get a favourable position so far
as concerns the right to acquire it. Is that right?
6834. MR MOULD: That is right, exactly.
I think I used the word "pre-emption" earlier and the
more colloquial way of putting it is "right of first refusal".
It is important to bear in mind that because with relation to
sites of this kind there may very well be a multiplicity of existing
interests. There should be some mechanism to control the timescales
within which development may come forward because what we do not
want to have here is a process which creates delay and thus causes
sensitive sites, such as Mr Pritchett described here, a site within
a conservation area, a very characterful part of the West End
of London, lying fallow whilst negotiations continue month on
month, year on year trying to get former owners to agree with
each. There has to be some discipline and that is what Mr Smith
has explained to you. That is one of the reasons why, for example,
the Secretary of State is not attracted by the idea of trying
to play off competing bids between former owners, but that is
why he says, "Well, if I get a situation where"to
pick up on Baroness Fookes' point"I have a bid from
a consortium of 18 of 24 brokers but then I have the other two
putting in their own rival bid", I don't set up some sort
of lotting system, I say, "Right, I will put it out into
the market, they can both bid but let's draw it to a close, let's
bring things to a head and let the market take its course",
because effectively there is a market in those circumstances.
There is a competitive situation. That is the safest and most
sensible way of getting things moving and securing the public
interest in the site being brought forward for redevelopment brought
back into an appropriate state as regards oversite development
following completion of the works.
6835. LORD JONES OF CHELTENHAM: I am
looking at the options for Mr Pritchett here. He can go round
his fellow residents and say, "We need to get together in
a consortium with a property developer in order to put in a bid
and make sure we are the only bid", but this is a valuable
site in the West End of London and I can imagine a situation arising
where other property developers say, "No, we want a piece
of this. We will approach one of the people who is not signed
up to Mr Pritchett's consortium who is a former resident, give
them some inducement or whatever in order to put in a rival bid",
and then we are in the situation that you talk about, it has to
go on to the open market. From what you have explained, it is
in Mr Pritchett's and the other residents' interest to make sure
they are in a consortium of some sort because they will have a
benefit when the next development goes ahead on here: if it is
flats, for instance, they might get the option of buying an offplan
flat at a lower price than what it will be when it is built.
6836. MR MOULD: That would be a matter
for them if they can find agreement between themselves and secure
an appropriately qualified lead developer who would impress the
Secretary of State sufficiently to cause her to apply her policy
or to operate her policy in their favour, that must be right,
but I can do no more than speculate on that. Of course your Lordship
is right, sites of this kind will no doubt be attractive to developers
but again that is a matter which is for existing proprietors to
manage for themselves and to take whatever action or negotiation
as they see fit to secure their own best interests. I do not know
whether Mr Pritchett is alone in his desire to participate ultimately
in the redevelopment of this site, or whether there are others
within the block of property who share his aspirations in that
respect but again that is a matter for him and him to discover
essentially.
6837. LORD JONES OF CHELTENHAM: I am
right in thinking that the planning process for the next development
on here can start almost immediately after Royal Assent, or even
before Royal Assent?
6838. MR MOULD: Yes. The planning process
in the sense of promulgation of detailed policy to guide the sensitive
and appropriate redevelopment of the site is already underway.
That is illustrated by the fact that Westminster has promulgated,
as you know, the development brief which sets out very detailed
aspirations as to the kind of development, both in terms of mixed,
physical characteristics and so forth, which, as a planning authority,
they wish to see coming forward. That is something which takes
place outside the scope of this Bill, as we made clear. That is
a matter over which Westminster will quite properly have regulatory
control.
6839. LORD JAMES OF BLACKHEATH: I am
just trying to think through some of the complications which could
arise and how they would be dealt with. Let us suppose for the
present moment that there is a wish by the tenants, one of which
is going to be Mr Pritchett, who comes with an offer at the appropriate
time, they are still going to need an appropriate vehicle to back
it because this is a big professional project when it happens,
it is not one for a small trader to undertake on his own account.
Supposing by that time Mr Pritchett, for argument's sake, has
become the finance director of a significant property company
and wishes to get them to front the deal for him as such. Does
that put him in an advantage or disadvantage vis-a"-vis the
entire approach or does he become excluded because he is no longer
doing it in his own name?
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