Sale of Ministry of Justice Land: Gloucester

Wednesday 16th December 2015 Westminster Hall

11:00

[Richard Graham (Gloucester) (Con)]

I beg to move,

That this House has considered the sale of Ministry of Justice land in Gloucester.

Today’s debate is about the agonising detail of pushing forward one aspect of the regeneration of the ancient and small city of Gloucester. It is, as I will explain, a story of our time—a story of complex partnerships—and, hopefully, it has a happy ending. I will start with the context of today’s debate. The regeneration of Britain’s big cities has ploughed ahead successfully for some time. The previous Labour Government did it through Government-funded or private finance initiative-funded projects, especially in the north of England; the coalition Government did it through growth funds and bids via local enterprise partnerships; and this Conservative Government are continuing that process with the additional features of devolution, local powerhouses and more pressure on the public sector to release unused and unneeded real estate—I will return to that last point in a moment.

At the same time, inevitably, there has been a process of consolidation in both the public and private sectors in that part of the west of England bordering the west midlands, the River Severn and Wales, which is Gloucestershire. The Government, like the Crown Prosecution Service, have been tempted to retreat to Bristol, and some businesses have done likewise. A city such as Gloucester, therefore, has to paddle very hard to attract new businesses, growth and jobs, and as the Minister knows, paddling hard is precisely what Gloucester does. The turnaround in global aerospace demand and the Government’s support for Britain’s technology and innovation advantages in aerospace have benefited the M5 corridor from Bristol to Gloucester and Cheltenham, and our subcontractors have benefited from the Government’s support for research and development, apprenticeships and capital allowances.

If I may list a few more areas of growth that are relevant to the importance of the car park in question, I highlight the huge rise in the importance of cyber that has driven interest in the cheaper real estate and convenient location of Gloucester for a new cyber- centre. The importance attached to nuclear energy is a huge boost for EDF Energy’s nuclear operational headquarters in Barnwood and has brought Horizon, which is going to build two new nuclear power stations, to the edge of our city. The waterside location of Gloucester Quays has attracted tidal lagoon power, which will surely be approved before long to create Britain’s new tidal energy hub and will be a huge contributor to the production of our green energy. At the same time, through Peel plc, we have been able to become a major shopping and leisure destination, with more than 5 million visitors a year to Gloucester Quays, and we have benefited from hosting the rugby world cup this autumn, using sport as a catalyst for regeneration.

Importantly, alongside all those major developments, we have seen a huge increase in the number of new businesses created in Gloucester—I call them new Gloucesterpreneurs. We are ranked in the top six in the country for the creation of new businesses. Last, but by no means least for this MP who studied history, thanks to the Heritage Lottery Fund, forward-thinking trustees of different charities and, I hope, strong political support, we have made much more of our heritage to win bids for funding to improve and highlight our destinations, and to host new festivals that, in turn, are bringing more visitors; the cathedral has a critical role in that. Should the Minister have the chance, I would be delighted to show him our city—not just the car park in which he is playing such an important role, but a city where heritage comes alive and new businesses thrive.

A common theme for all such growth is, of course, transport. On the edge of the M5 between Bristol and Birmingham, and two hours by train from London, one of Gloucester’s key attractions for inward investors is our transport links, which also support those living in neighbouring constituencies such as Forest of Dean, Stroud and Tewkesbury. Gloucester’s growth means that the most recent railway passenger statistics show an increase of 4% in passengers from Gloucester, which is a third more than the national figure of 3%. That will increase and, as the Minister may know, trains will shortly be running every half hour from London towards Gloucester and Cheltenham, which in turn will increase the number of passengers using our station and, inevitably, the station car park. In turn, of course, that will put significant pressure on existing facilities, which is precisely where the Ministry of Justice comes in—this is the crux of today’s debate.

Almost 10 years ago, the previous Labour Government bought land for new courts in Gloucester. We will return to that theme another day and, before the Minister gets nervous about the scope of today’s debate, I assure him that I will not be raising the issue of a new justice centre in Gloucester today. The land acquired on Great Western Road, a former car park, lies beside platform 4 of the station, although it is currently without access to it, and opposite Gloucestershire Royal hospital, which employs many thousands of people and, of course, has many more patients every year. The car park has sat empty and unused for a decade, ever since the Labour Government changed their mind about new courts for Gloucester. In October 2014, I launched a campaign to bring the car park back into use as a new long-term car park for the station, with new access to the station from that side.

The ingredients for that project, or “stakeholders”, if we prefer that term, were many. I needed support in principle for the idea, above all, from what was then First Great Western and is now Great Western Railway—a name resonant from my younger days in Gloucestershire and my many school journeys from Moreton-in-Marsh to Colwall. I needed the Department for Transport’s support for Great Western Railway’s proposal in its seven-year franchise extension. Both Great Western Railway and the Department for Transport, led by the Secretary of State for Transport, who visited Gloucester, responded magnificently. I needed support from the county council, which it also gave, not least because there is a spin-off benefit in relieving some of the traffic pressure from the station forecourt on to Bruton Way from the current car park. And I needed support from the city council for the potential planning application, which it gave in principle, noting the huge added convenience for Gloucestershire Royal hospital staff and patients and the regeneration implications for the site, the road and the city.

Lastly, but by no means least, as the Minister knows, I needed support, both in principle and in practice, from the Ministry of Justice in disposing of the land and being the catalyst for something that, although modest in itself, will have much wider transport, traffic and growth implications, enabling a virtuous circle of easier access for travellers, more trains, better experience, more visitors and more jobs from the economic boost.

The Minister and the then Secretary of State for Justice, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), could not have been more helpful, and I wish to put that on the record. Everything was agreed in principle in March 2015, but of course the business of process, transfer to a Government entity to avoid any question of state aid, legalities, price and the number of entities involved—the Ministry of Justice, the valuers, the independent valuer, the city council, Great Western Railway, the Department for Transport and Network Rail at one point—plus the summer holidays meant that progress during the middle of this year was somewhere between modest and slow, but the pace has picked up in the last few weeks, which is perhaps in part due to the Chancellor’s determination that the Government should make much greater use of their real estate assets as soon as possible. My understanding of the current situation is very encouraging, and part of today’s objective is to hear whether the Minister shares my understanding.

First, I believe that the Ministry of Justice has agreed in principle to sell the land to Gloucester City Council, and I understand that a recommendation on the price and an agreement goes to a Ministry of Justice real estate board in early January 2016. Secondly, Great Western Railway has agreed in principle to lease the land from the city council and intends to submit a planning application in January. Thirdly, Great Western Railway and the Department for Transport are holding talks to ensure that the land is retained as a station asset way beyond the current franchise. Fourthly, the city and county councils have submitted a bid of almost £5 million for various station improvements, in line with my recommendations of October 2014, to the Gloucestershire local enterprise partnership, and that bid is likely to be high on the LEP’s list of priorities.

I hope that I have laid out that never was an empty car park so important to the development of transport in our city, or to our city’s regeneration; its value as a catalyst for change is much greater than its commercial value. A year and a bit on from a series of proposals laid out by e-news to my constituents, I believe that the public sector—Government and local government—working together with the train operator means that we are close to bringing this opportunity to reality.

Today, I hope that the Minister can confirm his understanding of where things are, and that he will continue his key role in urging that the most important of Government responsibilities—the implementation of decisions already made in principle—be carried out, so that early in the new year, the city of Gloucester can have certainty that ideas on paper will become reality.

In the bigger scheme of things, this car park is at the very fringes of the Minister’s empire of responsibilities and goals to deliver, but I hope that it is a project—small as it is—about which he and his Department will be able to say shortly, “We reviewed this proposal. We agreed with it in principle. We promised to make it happen. And we have now delivered.” If that is the case, Gloucester will be very grateful, but it will also set a magnificent precedent for other opportunities involving MOJ real estate around the country.

11:11

[The Parliamentary Under-Secretary of State for Justice (Mr Shailesh Vara)]

As always, Mr Nuttall, it is a pleasure to serve under your chairmanship.

I congratulate my hon. Friend the Member for Gloucester (Richard Graham) on securing this debate on a subject that is vital for the residents of Gloucester. I also take this opportunity to put on the record the huge amount of work that he has done for the people of Gloucester, not only regarding this particular piece of land but more generally. As far as this issue is concerned, he has engaged with me on a regular and active basis, and he has also been instrumental in ensuring that the many other stakeholders and key players involved in the whole of this transaction have been engaged with one another. He has been instrumental in ensuring that all the threads are woven together to make one canvas, so that hopefully in the new year we will be able to arrive at an agreeable solution.

Of course, my hon. Friend and I have met on a number of occasions to discuss this issue and we have also corresponded about it. He has a terrific vision for Gloucester. My officials have engaged extensively with representatives from the many other interested parties on how the land owned by Her Majesty’s Courts and Tribunals Service in Great Western Road can form part of the wider regeneration of the city.

Let me explain at the outset that the piece of land in question was purchased quite some time ago with the intention of building a new Gloucester court. The freehold interest in the site was one of a number of magistrates courts and other properties transferred to the Courts and Tribunals Service under the Transfer of Property (Abolition of Magistrates’ Courts Committees) Scheme 2005. Since that time, the site was used temporarily as a car park by the national health service and was later used as a store to facilitate works to the adjacent railway. As my hon. Friend indicated, for quite some time it has not been in use.

Following an approach by Gloucester City Council, the Courts and Tribunals Service considered a request to transfer the land. In support of its request, the council asked that we take into account the wider economic development of the area and its importance for the city as a whole. My hon. Friend will appreciate that the Ministry of Justice and Gloucester City Council have a duty to achieve best value for the taxpayer at large and for the citizens of Gloucester. As part of that duty, the Ministry of Justice is obliged to work within Her Majesty’s Treasury guidelines for managing public money. That means that, when disposing of surplus property assets, we must always seek best value for the taxpayer. The council, for its part, has to consider the potential return on its investment in a future lease arrangement.

After careful consideration of the representations made by my hon. Friend, the council and others, it was decided that the land was no longer required for a court or tribunal building. That cleared the way for the Courts and Tribunal Service to move towards a sale of the land, at market value, to Gloucester City Council.

I understand that the council intends to enter into an agreement that would see the site being used as a car park, which, as my hon. Friend highlighted in his speech, would improve access to the nearby railway station. The redevelopment of the land is an important part of the vision to regenerate the city. Of course, the use of the site as a car park also has broader implications for the highways and traffic management within the area. This is not a simple issue but one that is complex and that involves a number of other agencies.

The Ministry of Justice has been in regular and constructive dialogue with the council, and I am pleased to say that much progress has been made. However, both parties have produced their own valuations of what the property is worth. Nevertheless, we may now be nearing some sort of agreement. I hope my hon. Friend will appreciate that, for reasons of commercial confidentiality, I cannot divulge the final details of the valuations or the negotiations. He will understand that, as is the case in almost every transaction of this kind, there are many aspects of the proposal to discuss, including the future development potential of the site; the current and future planning status; whether there should be any conditions attached to the completion of the sale; the timing of any such conditions; whether any overage or clawback should be applied, and if so, how much and over what time; what price should be paid; and whether that price should be paid in one lump sum or in staged payments.

While there remain technical details to resolve, I share my hon. Friend’s enthusiasm for seeing the matter settled, and both parties continue to work towards achieving a deal that is acceptable to all concerned. I emphasise that there is no lack of willingness on our side to achieve a mutually beneficial sale.

I turn briefly to the wider changes that we are making to courts and tribunals in England and Wales as part of our court reform programme. We have conducted a consultation on the possible closure of 91 courts and tribunals across England and Wales. The HMCTS estate is a major asset, but many buildings are underused. Indeed, around a third of our courts are used at less than half their capacity. Our proposal is to close the less efficient buildings and to transform the way that courts and tribunals operate and deliver services to the public in the future.

Those improvements cannot be secured without some difficult decisions having to be made, but I genuinely believe that the court reform programme offers a once-in-a-generation opportunity to create a modern, user-focused and efficient Courts and Tribunals Service.

[Richard Graham]

The Minister is kind to give way. I promised him that I would not extend this debate to cover the issue of the future of the courts, but I just thought it would be helpful to him if I were to put on the record the offer that Gloucester has made to the Ministry of Justice. Effectively, it is to provide land free of charge in the wonderful central area of Blackfriars, very close to the current Crown court, the families courts and the magistrates courts, to create a single justice centre for all the courts and tribunals in the city, which will provide justice for the people of Gloucestershire. I hope he will consider that offer.

[Mr Vara]

In his usual eloquent way, my hon. Friend has managed to sneak into this debate another angle, which obviously also involves his speaking up for constituents in Gloucester. I commend him for that. I am mindful of the submission that he and the people of Gloucester have made, and we are reflecting on it. No decisions have been made so far regarding the wider consultation.

As far as the court reform programme is concerned, we must recognise that the world outside the courts is changing rapidly. In the 21st century, we expect to be able to transact our business online, quickly, efficiently and at a time that suits us. Cheques and paper forms have been replaced by contactless payment cards and smartphone apps. The Courts and Tribunals Service has already established alternative ways users can interact with its services, such as the use of video links, and it is looking to expand the provisions to provide more choice than is currently available. That includes exploring whether appropriate use can be made of civic and other buildings for certain types of hearings. My hon. Friend is aware that Gloucester magistrates court is included in the consultation. The proposal is for criminal work from the court to be transferred to Cheltenham magistrates court. As he is aware, we are analysing all the responses to the consultation, and we have not made up our mind or made any decisions so far.

For the sake of good order, I assure my hon. Friend that the sale of the land at Great Western Road does not impact in any way on the decisions that will need to be made following the consultation. He will understand that I cannot give him notice of the finalised transaction, for the reasons I have given. I very much hope, however, that he and his constituents will be in no doubt that I support the positive vision that is regeneration in Gloucester—a matter that he has so forcefully put across. The Ministry of Justice is keen to be a part of that vision, and we are taking steps to ensure that we do not stand in the way of progress. At the same time, he will appreciate the importance of my Department faithfully discharging its duties to taxpayers and ensuring that we deal with valuable assets responsibly.

I again congratulate my hon. Friend on securing this important debate. I very much hope that, in the new year, there will be some resolution to all the hard work that he has put in on behalf of his constituents.

Question put and agreed to.

11:21

Sitting suspended.