Garden Bridge

Bob Stewart Excerpts

Wednesday 7th September 2016 Commons Chamber

[Kate Hoey]

I absolutely agree. I stick up for London. I believe that London, being a great capital city that is loved by the people who live here while being very open to tourism, does sometimes need special arrangements, for example policing. This, however, is something very different. Perhaps the problem for my two hon. Friends is that they do not have Joanna Lumley living in their area.

Let us look at the cost. When the garden bridge was first announced, it was claimed it would not require a penny of public money. Very soon after, the former Chancellor announced £30 million of support and Transport for London also came up with £30 million. So, £60 million of taxpayers’ money has been committed to a project that came out of thin air. It had never been discussed with anyone before it was announced, unless in private discussions between Joanna Lumley, the former Chancellor and others.

From the beginning, those supporting the Garden Bridge Trust behaved as if they knew they had support in high places—and of course they had. The report in February by Project Compass, the not-for-profit procurement intelligence service, goes into great detail on how the procurement process was handled. The tender originally asked for broad options for a pedestrian bridge between Temple and the South Bank, and it made no mention of a garden/living bridge element. As a result, only the Heatherwick Studio bid responded with not just a garden bridge proposal, but a design drawing and actual location plan of the garden bridge. That had not been called for in the tender spec, yet Heatherwick Studio received the highest mark for its understanding of the brief.

A single person in City Hall—Richard de Cani, the then manging director for planning for Transport for London—assessed the technical and commercial evaluation of the three bids. Usually, subjective judgments in public tender documents have a team of assessors to ensure impartiality, but this is the same Richard de Cani who we now know used to work for Arup—the same Arup that in another flawed tendering process, as outlined by Project Compass, won the contract for the Temple bridge part of the garden bridge and has been given more than £8 million.

It gets worse. Where has Mr De Cani gone back to work? Arup, of course. Arup seems to like ex-City Hall staff, because it has recently appointed as its new global transport leader Isabel Dedring, the former City Hall deputy head of transport. She was personally involved with nearly all the meetings prior to the tendering process with Thomas Heatherwick. So, both of the officers directly involved with the entire process have now left City Hall and gone to be employed by the garden bridge engineer and lead consultant, Arup. That could be a coincidence, but I think that most fair-minded people would think that it is very strange. Even Greater London Authority’s internal audit head, Clive Walker, admitted that the procurement had been neither open nor objective.

There is a question mark over the procedure, and yet the National Audit Office could do nothing about it. It responded to me by saying that it was not in its remit to look into TfL behaviour, and that that was the responsibility of the GLA oversight committee, supported by locally appointed auditors. Ernst & Young is the GLA’s locally appointed auditor and it was also appointed by the Mayor to run the investigation into TfL, but—believe it or not—Ernst & Young is listed as having donated £500,000 to the bridge, and an Ernst & Young partner also sits on the board of the Garden Bridge Trust. The GLA oversight committee looked into that, and its chair described it as a “dodgy design procurement process” and suggested that TfL reimburse the two other applicants, WilkinsonEyre and Marks Barfield.

I think that the NAO should be able to investigate public money used by TfL. I am glad that it has agreed to look into the £30 million given by the former Chancellor of the Exchequer via the Department of Transport and how it has exercised control over the money.

The model under which the GBT operates sets a dangerous precedent—this is why this should be of interest to all Members—that allows public bodies to effectively offshore major infrastructure projects by leveraging charitable vehicles, under the oversight of the Charity Commission, to avoid the transparency and scrutiny preserved for governmental bodies via the NAO. The House will be interested to know that since July 2015, £26,720,292 has been paid to the GBT, with absolutely no accountability for how it has been spent and no visibility of its accounts.

The current Mayor stated when he came to office that £37.7 million has already been spent by the trust, but:

“Nothing has been achieved to date”.

More recently, he stated on LBC that the figure was now £42 million, yet he himself had stated that he did not want a penny more of public money. It would be interesting to know why another £5 million to £6 million has been spent since he came to office.

Recently, Lord Davies, the chair of the Garden Bridge Trust, stated on “Newsnight” that a significant amount of spend had been on two contractors, namely Arup and Bouygues, which is a French company and there are slight variations in how it is pronounced. No visibility has ever been provided over those contractual arrangements, or legal clarity provided as to whether there are clauses to return public money in the event that the project is cancelled.

I believe that contracts should not have been entered into until the land arrangements on both sides of the river had been secured because it exposes taxpayers’ funds to risk. The land deal still has to be negotiated and Coin Street Community Builders, who hold the long lease from Lambeth, are not happy with the terms of agreement even now. A judicial review has been filed. The money for that was raised by small donations across London. Quite suddenly, just a few weeks ago, the GBT changed its dates for filing its accounts, originally due on 31 July, to 31 December. Again, this lack of transparency is very worrying.

This project is at risk not just of never happening, but of being a colossal white elephant. It is nicely depicted in a cartoon in this week’s Private Eye, with a big white elephant over the Thames. We now know—it has been admitted by Lord Davies on “Newsnight”—that it is going to cost £10 million more, up to £185 million, and will be further delayed by a year even if the GBT gets what it wants. It now has to raise between £52 million and £56 million just to build the bridge, up from the original estimate of £32 million. Additional money is needed to support the running costs at £3 million per year, while the insurance is £15 million, but only £9 million has been offered as surety by the Department for Transport.

I understand—the Minister will want to go into it—why the Secretary of State agreed to continue the underwriting, but I welcome the fact that the Department did not say that it was going to increase it in any way. There was a danger of allowing it to continue, with increased amounts each month. In fact, that did not happen, which is to be welcomed. I still think that this is a ridiculous waste of public money.

The GBT’s own press release from June 2016, just a few months ago, admits to spending £22.7 million of public money solely on pre-construction activities—progressing the design, obtaining licences, permits and planning approvals, which are still not final, including stakeholder and community consultations—but no further information was provided. A number of leading construction experts have said that they cannot understand how that could have amounted to anything more than about £1 million.

I genuinely cannot understand how the Government, whether it be the Treasury or the Department for Transport, can feel comfortable with the truly remarkable amount of money already spent by the GBT. I find it hard to explain to my constituents, many of whom would be the kind of people the new Prime Minister addressed from the steps of Downing street on her first day in office, precisely how £40 million pounds of public money has already been spent on a bridge that is going to be closed regularly for private functions, that will not allow cycling and that will be subject to all sorts of rules about what can and cannot be done on it. As I said, the bridge is in completely the wrong place.

[Bob Stewart (Beckenham) (Con)]

I thank the hon. Lady for what she has said. Having come here to listen to her, I am increasingly against this garden bridge project. Is it true that the beautiful view of St Paul’s created by Canaletto will be destroyed by this project?

[Kate Hoey]

I thank the hon. Gentleman, and I am glad to hear that he has come to this debate with an open mind. Yes, as I am going to mention later, that is indeed one of the most dreadful things that will happen. It might not seem that important, but once it is no longer there, we will realise it and miss it. The wonderful views of St Paul’s from Waterloo bridge will be ruined. That will happen without a doubt if the garden bridge is built.

I also find it difficult to understand why this new Government are giving money and underwriting a project for a charity whose donors and backers too often remain unidentified. The public do not discriminate as regards which pot of money the funds come from; to them, it is all public money. There is, however, a list of donors and a breakdown of the funding up to August 2016, and what is remarkable is how many of those donors are anonymous—anonymous this and anonymous that. Why do they want to be anonymous? Some people might decide that they want to be. Strangely, however, £12.6 million is described as being “confidential until launch announcement”. Is that real money or is it a pledge from someone? It is all smoke and mirrors. I shall say more about donors in a few moments. Because of that, and because of the way the trust’s accounts have been dealt with, I welcome the Charity Commission’s investigation, which it has confirmed to me in writing.

Let me say a quick word about the business plan, which has been examined admirably and in great detail in a report entitled “Operational Viability of the Garden Bridge” by Dan Anderson, who is a director of Fourth Street. Some Members will know of Fourth Street, which has done great work for the National Trust and other public bodies. The report draws attention to all the flaws in the business plan, and I commend it to anyone who wants to understand more. In paragraph 4.2, Mr Anderson makes this crucial point:

“It is worryingly worth noting that the Garden Bridge Trust has a perverse incentive to spend money as quickly and not as efficiently or cost-effectively as possible. That is, the Trust has a powerful incentive to ensure that it reaches a ‘point of no return’ (in financial terms) as quickly as it can so that planning, land acquisition and/or legal challenges do not ultimately thwart the project.”

I think that that must be a very large part of the explanation of how such an extraordinary sum could have been spent before construction has even started.

Others, too—apart from the Government, Transport for London and City Hall—need to examine their behaviour in respect of this project. A cosy little cartel has been operating, with everyone blaming everyone else. The almost zealous support that has been given to the Garden Bridge Trust by Lambeth council is disturbing. The chief executive has attended meetings with the Mayor’s head of staff, David Bellamy, and the trust. The council’s leadership has never allowed a proper, full debate in the council and a vote, and has ignored local councillors’ views. Council officers and members have proceeded for three years without any policy basis. Their transport plan does not even mention the garden bridge, and there has been no policy paper from Lambeth explaining why the council should support it.

Lambeth could stop this project tomorrow if it wished. Coin Street Community Builders, of which I am a huge supporter, should have said no to the change in its land lease from the beginning. It, too, could stop this tomorrow if it wished. The Mayor of London, coming new to the project, should have put a stop to it, or at least consulted local politicians. It is just not good enough for him to say, “So much money has been spent that we must carry on.” He could stop it tomorrow if he wished. Will the Minister tell us who will pay the £3 million running costs? Will he confirm that it will not be the taxpayer, and will he confirm categorically that there will be no more public funding for the bridge?

Lord Ahmed had stalled everyone who objected to the bridge. No one could manage to see anyone in power except representatives of the Garden Bridge Trust, who seem to have been able to do so whenever they wished. Lord Ahmed has now written to Councillor Craig saying that he will meet local councillors, but I ask him to come and look at the site, and speak to the people who really know the area and the problems.

Having talked privately to many of those who are involved in all the different aspects of the project, I know that there is huge unease. I know that there is unease in the Department for Transport, I know that there is unease in Lambeth, and I know that there is unease in Coin Street. I know that most of those people —with the exception, probably, of the former Chancellor—would like the project to be stopped, but no one wants to be fingered as the person responsible for actually saying no.

I appeal to all the potential donors to think carefully about whether they want to be associated with the project. I believe that the reputation of many of them will be damaged by their support for this folly. As the critique of the business plan states, the garden bridge must be loved as much by the public as by its creators, or the business model will fail. Given how unpopular it is and how much has been exposed by freedom of information requests, I have to say that if I were a trustee of a body that was thinking of donating to the Garden Bridge Trust, I would be thinking again. It is ironic that this may be the only way in which we may now be saved from a complete waste of public money, even more of which will be wasted as time goes on, and a deeply flawed project which, as I said earlier, will ruin the most wonderful views of St Paul’s from Waterloo bridge, as well as making congestion on the South Bank—which is already at dangerous levels during some weekends—much worse.

Charitable trusts and private donors should now stop their support and look elsewhere for projects more in keeping with their objectives. That is what I would like to see happen.

This has been put forward as a wonderful new tourist attraction for London. It is a tourist attraction, but it has been dressed up as tourist infrastructure; it has been dressed up to get Government support when other brilliant tourist attractions in London have done this through private money. It is an inappropriate use of taxpayers’ money and, worse, it was promised from the beginning that it would not be.

We have to ask who has sold us down the river and how we can ensure that no more damage will be done and no more public money will be wasted. This Garden Bridge Trust project must be stopped by someone, and I would like to hear the Minister say he will do his utmost to make sure not a penny more will be spent and that we will find ways, when this project fails, as I believe it will, to get that public money back.

--- Later in debate ---

[Andrew Jones]

My understanding is that it would be a joint undertaking, but I will check the detail of any financial arrangements and report back to the hon. Gentleman.

As I was saying, the bridge must be predominantly funded by the private sector. As things stand, at least two thirds of the funding will come from private donations.

I understand that there are many concerns about the project, some of which I will talk about. The hon. Member for Vauxhall has already articulated a number clearly and in detail. The Garden Bridge Trust was set up in 2014 to manage the construction of the bridge. This experienced group of trustees has complete control over development and fund raising. The Department for Transport and TfL speak to the trust regularly to discuss progress and concerns. A significant amount of work has already been achieved on this complex project, which involves many different interested parties, and a huge amount of progress has been made. The land must be secured, permission to use the river obtained, and all necessary land planning conditions secured. A large ship, HQS Wellington, will also need to be moved. Those are all complex tasks that will take some time to achieve. There is still much work to be done before construction can start, but most issues are expected to be resolved soon.

[Bob Stewart]

The Minister might not know something that I became aware of today. A considerable part of the constituency of the hon. Member for Vauxhall (Kate Hoey) on the South Bank—a tree-lined avenue—will have to be demolished. The question therefore is: are we going to lose a tree-lined avenue, and will that be the equivalent of what we are going to get on the garden bridge?

[Andrew Jones]

I thank my hon. Friend for his intervention. The hon. Member for Vauxhall said that 29 trees would be removed, but the Garden Bridge Trust would argue that they would be more than replaced by the increased number of trees that would be part of the planting.

I am aware that many concerns have been raised about the bridge, and who would be able to use it and when, so let me clarify some points. While the bridge will principally be a footbridge, it will be open to all, although cyclists will be asked to dismount when crossing it. That is consistent with other footpaths in this area, such as those along the South Bank, and is simply to ensure the safety of pedestrians.