Transport for London Bill [Lords]: Revival

Debate between Emily Thornberry and Rachael Maskell

Monday 16th November 2015 Commons Chamber

[Emily Thornberry]

It is as though the risk is being nationalised and the profit privatised. That is what is happening for the sake of George Osborne being able to balance the books in the CSR.

[Rachael Maskell]

A further risk is that profits for some of those property developers may be invested offshore and they may not pay tax here. The Treasury would lose even more money on that land.

[Emily Thornberry]

Many questions need to be asked about the status of the partners that TfL will be able to join in partnership. Will they be offshore? Will they pay taxes here? Will they be able to move the control of the partnerships from one party to another without the public—it is our land—being able to stop it? One hears many scary stories, such as money from Moldova being laundered through Scotland—all sorts of extraordinary things go on under these instruments—and my concern is that the limited partners are liable only for the value of any investment they make and do not need to be involved in the management of the partnership. They put their money in, that is the extent of their liability, and we do not know what sort of profits they will then be able to make and we do not know whether they will pay any tax in this country. Those questions need to be asked before we revive this Bill.

--- Later in debate ---

[Rachael Maskell]

I am not going to give way. I heard the point the Minister made from a sedentary position. It is clear that the Bill carries a potential risk. We have heard about financial risk, housing risk and the skills risk. As a result, and given the changing world we live in, we have serious questions about what the limited partnerships would bring. Opposition Members are concerned that we are seeing the social remodelling of London. Housing that is inaccessible is being built in the heart of the city, in zones 1 and 2 and further afield, which means that people cannot afford to live where they work.

[Emily Thornberry]

My hon. Friend began with the important point that the property market has changed so much in recent years. Is she aware that overseas developers have been especially active in the land market, accounting for nearly three quarters of the £1.8 billion spent on land for development in central London in the second quarter of 2015?

[Rachael Maskell]

I thank my hon. Friend for sharing that fact. Those figures were not quite on the tip of my tongue, but it does show that the level of overseas investment in the city is pricing everybody else out, leaving the centre of the city void of community life. People are spotted around the city, but do not actually live in a community.

We are not looking at the infrastructure needed to support these developments—social areas, additional staff, schools and other facilities—because that is not part of the legislation either. One concern is this: we talk about limited partnerships being agreed, but what happens after that agreement? Plans and proposals can change. Ultimately, we could end up with a very different animal from what we started with.