Kew Gardens (Leases) (No. 3) Bill [HL]

Lord Carrington Excerpts

2nd reading (Hansard): House of Lords
Tuesday 7th May 2019 Lords Chamber

[Lord Carrington (CB)]

My Lords, I will not repeat the tributes made to Kew or restate the value it has given to this country. However, I warmly endorse the purpose and content of this short Bill, although it is a pity that the background information on the property portfolio affected by the Bill and the associated financial liabilities have not been fully identified and described, as to my mind this would assist Members in seeing the significance of the Bill and the likely beneficial effects on the public purse.

As in all culture and heritage matters, the importance of securing stable funding and managing cost is paramount, as institutions such as Kew Gardens—and there are many like it—nearly always rely on the generous sponsorship of the likes of the National Lottery Heritage Fund, Defra, the Arts Council, et cetera. Their resources are inevitably limited, however much we may wish otherwise, so every effort needs to be made by the management and trustees of these institutions to investigate and generate other income, either from within or from benefactors.

In the case of Kew, it is clear that by offering leases of up to 150 years for residential and commercial properties under its control, it can attract substantial capital sums. The decent length of leases enables and justifies expenditure on much-needed refurbishment, which in any event becomes the responsibility of the lessee under the terms of their lease. Of further benefit to all concerned is the ability to attract mortgage and other bank finance, which was scarcely available with short-term leases. The lessee can therefore afford to pay more and to spread the financial cost over many years.

To demonstrate just how significant the effects of this Bill will be, it would have been nice to see some more detailed projections of capital receipts and deferred expenditure than the bald figure of £40 million in the first 10 years. No doubt management and trustees have this information, as it will play a large part in determining the requirement for future grant in aid from Defra, which currently appears to be £41 million or 35% of total income.

The Bill enables many of the issues identified in the House of Commons Science and Technology Committee report to be satisfactorily resolved. Despite the lack of information on the property portfolio and the financial benefits provided by the Bill, I give it my warm support.