Transport for London Bill [Lords]: Revival

Clive Efford Excerpts

Monday 16th November 2015 Commons Chamber

[Bob Blackman]

The hon. Lady might wish to probe that point further on the revival of the Bill when we debate particular aspects of changes to it, but it is not about the revival of the Bill in its own right.

Clause 6 expands the list of entities through which TfL can undertake commercial activities to include limited partnerships, limited liability partnerships and companies limited by guarantee. This enables TfL to conduct its affairs more flexibly and meet the maximum value from its assets. Clause 7 gives TfL greater flexibility to mitigate its risks through hedging, including allowing it to hedge commodity prices when it is exposed to fluctuations as a consequence of a transport contract or a contribution risk to the pension fund.

Contrary to assertions made on Second Reading and elsewhere, the Bill does not give TfL any new powers to sell or to develop its land. TfL has had such powers since it was created in 2000 and is not seeking to extend them in any way, shape or form. TfL must obtain the consent of the Mayor to dispose of surplus land by sale or granting a long-term lease. If that land is operational, or has been operational in the past five years, the Secretary of State must also give his or her consent. TfL is also subject to scrutiny by the London Assembly and has various obligations to publish financial details in its accounts and details of its surplus land and building assets. The powers TfL is seeking in the Bill will not detract from its discharge of its core functions.

[Clive Efford (Eltham) (Lab)]

Will the hon. Gentleman give way?

[Bob Blackman]

I will not give way any more.

The discrete scope of the Bill should be taken as indicative of a desire by TfL to meet its business needs more flexibly, and cost-effectively.

One of the key issues that has been identified during the whole process, which I think we all agree on, is the opportunity to maximise the development of assets for housing purposes. If the Bill were finally to become law, TfL would release more than 300 acres of land in London to help create more than 10,000 new homes across London. Sixty-seven per cent. of this phase of development is in travel zones 1 and 2.

--- Later in debate ---

[Clive Efford]

That is a really important point. Too often, people talk about housing numbers and bandy around the word “affordable” for properties that are by no means affordable for most people in London. Making available 300 acres of land for housing that people from London, particularly those on moderate and low incomes, will not be able to access will contribute nothing to their housing needs.

[Emily Thornberry]

I have to say that Islington residents who are on what could be seen as high incomes are very concerned about their children, as are those who are on middle and low incomes. How will children who were born in Islington remain in Islington, given the price of housing? The Mayor of London’s answer has been to redefine affordable housing. It is a little like getting rid of child poverty by taking income out of the definition.

--- Later in debate ---

[Emily Thornberry]

Yes. Representing and living in the area that I do, I could not agree with my hon. Friend more. The property market continues to be stoked. The Government say “Let’s cut back on the amount of housing benefit available and that will dampen down the property market.” I laugh, because clearly that is not what happens. Instead, rents and property prices continue to rise, and we continue to price Londoners out of London. If it continues to eat itself, London will cease to function. But perhaps that is fine by TfL: no one will need to travel into London because no one will be able to live or work in London. They will need to live so far out that working in the centre will not be viable.

[Clive Efford]

My hon. Friend, like me, heard the hon. Member for Harrow East (Bob Blackman) say that TfL should be able to maximise the income from the sale of this land, but, as she pointed out, where land values are extremely high, that is likely to squeeze out affordable and social housing. TfL is a public body, however, and there is a shortage of public land on which to build social housing, which is why we need properly to scrutinise how this land is used, instead of selling it off to the highest bidder in every case.

[Emily Thornberry]

If we do not use public land to build affordable housing, what land will we use? If we sell off the land, and it ends up in the hands of private property speculators, that will be the end of it, in terms of its being within the reach of Londoners.

Again, perhaps someone can enlighten me, but there has been talk that TfL could set up a subsidiary to insulate itself against risk. I do not understand what TfL has said about that, but, on the face of it, if it continues to own the land, or at least to manage it, it seems that a court would say, “The legal instrument might say one thing, but the reality is quite clear”, and strike it down. The project is being built on the never-never, and on very dubious grounds. We are asking serious questions about the risk this public body is being put under. What is TfL going to be doing with our land? What does it mean for the future of London? There are so many questions. I appreciate the Bill has a long history, but that makes it even more disappointing—to say the least—that these questions cannot be answered. They have been asked of TfL many times, yet we still do not have answers. In the absence of such answers, it does not seem correct to revive the Bill.

--- Later in debate ---

[Claire Perry]

No, I will not.

TfL has already implemented a savings and efficiency programme that will enable it to invest in infrastructure while holding down fares. I have not heard any Labour Members stand up for their constituents who have to get on to the tube every morning, and who are delighted that fares have been kept down.

[Clive Efford]

Will the Minister give way?

[Catherine West]

Will the Minister give way?