Transport for London Bill [Lords]: Revival

Debate between Emily Thornberry and Mike Freer

Monday 16th November 2015 Commons Chamber

[Emily Thornberry]

I do not know that it would. It is vague in the extreme. In my view, it is inappropriate for a public company to go into partnership with public assets with who knows who—for us to take the risk of putting the assets out there and see who will put up the money. That is not the sort of slippery Joe operation we should deal with. We are talking about public land in my constituency in the centre of London, and frankly I do not want it to be controlled by the Russian mafia, for instance.

[Mike Freer (Finchley and Golders Green) (Con)]

I realise that the hon. Lady has concerns, so I will try to be helpful. To answer the questions she has asked, she might want to talk to Labour Sheffield, Labour Barking and Dagenham or Labour Gateshead, which have all entered into similar joint limited partnership arrangements, to see how they have worked.

[Emily Thornberry]

I do not know what the conditions are in those limited partnerships. If the hon. Gentleman wishes to enlighten me, I will give way again. It is a question of what controls are available.

[Mike Freer]

From my limited investigations, I understand that Sheffield entered into a local housing company in which the council invested the land and the joint venture partner invested the finance, with shared risk. Barking and Dagenham had a special purpose vehicle, in which the council put in the land and the private investor put in the money. Gateshead had a local asset backed vehicle—I believe such vehicles were introduced by the previous Government—where the council put in the property but the private sector put in the finance.

[Emily Thornberry]

As the hon. Gentleman said, there was some form of shared risk, but there is no shared risk in this instrument as I understand it. If I am wrong I am open to being corrected, but I do not believe I am. That, essentially, is my concern.