Westferry Printworks Development

Miriam Cates Excerpts

Wednesday 24th June 2020 Commons Chamber

[Olivia Blake (Sheffield, Hallam) (Lab)]

Like many who have spoken in the debate today, I arrived at this place as a councillor, having served for six years. I am glad we are having this debate, because the issue cuts to the heart of what is wrong with some aspects of our democracy and the way that some decisions are made. It is probably fair to say that very few of my constituents would have found out about the Westferry Printworks development if it had not been for the Secretary of State’s intervention in the planning process and the fact that it was then splashed all over the headlines. It is true that this is about a site in London, and my hon. Friend the Member for Poplar and Limehouse (Apsana Begum) has expressed eloquently the impact on her community, but it is also a familiar story to us all. It is a story about the power and influence of big property developers, the struggle to build affordable housing and address the housing crisis, and the needs of communities being ignored.

It is already well established that there is a housing crisis in the UK today. Recent research conducted on behalf of the National Housing Federation has estimated that 3.6 million people are living in overcrowded housing, that 2.5 million people cannot afford their rent or mortgage—

[Miriam Cates (Penistone and Stocksbridge) (Con)]

Will the hon. Lady give way?

[Olivia Blake]

I will not give way.

The research also found that 2.5 million people are in hidden households that they cannot afford to move out of; 1.7 million people are living in unsuitable accommodation; 1.4 million people live in poor-quality housing; and 400,000 people are homeless or at risk of homelessness. The Conservatives talk about the Labour party’s record, but we went on to fix poor-quality housing. Thousands of homes were upgraded under the Labour Government, and there was a low level of homelessness. We should be doing all we can to create better-quality, environmentally sustainable, affordable homes, given the dire situation.

It was more than reasonable for the planning inspector to say that 21% affordable housing in this scheme could be improved, as the Secretary of State agreed in his letter of approval. He admitted that the planning inspector was right:

“He agrees with the Inspector that, on the balance of the available evidence, it is likely that the scheme could provide more affordable housing and that 21% does not therefore represent the maximum reasonable amount of affordable housing within the terms of”

the London plan. The letter goes on to say that

“for the purpose of his assessment of the proposal…the Secretary of State proceeds on the basis that the maximum amount of affordable housing that could be reasonably delivered is uncertain, but may be up to 35%”.

Yet he still thought it was appropriate to approve the application. To make matters worse, he rushed it through 24 hours before the increase in the community infrastructure levy. The decision meant the council was losing £40 million towards affordable homes, at a time when local authorities up and down the country are already struggling to do this.

I want to mention briefly, if I may, Madam Deputy Speaker—

--- Later in debate ---

[Alex Sobel (Leeds North West) (Lab/Co-op)]

I am having difficulty believing that we are having the debate, as the story of the Secretary of State and Mr Desmond reads like something straight out of a Frederick Forsyth or John le Carré novel. A fabulously wealthy former pornographer and major Conservative party donor happens to sit next to the Secretary of State at a £900-a-head Conservative party dinner just weeks before that Secretary of State makes a decision on a £1 billion property deal of Mr Desmond’s.

At the dinner, Mr Desmond leans over to the Secretary of State to show him a video. I bet the Secretary of State now wishes it was from one of Mr Desmond’s former television channels, but as we now know, it was a promotional video of the luxury development. Mr Desmond openly admitted this, saying:

“What I did was I showed him the video”.

Mr Desmond revealed that the Secretary of State watched it for three to four minutes.

[Miriam Cates]

Will the hon. Gentleman give way?

[Alex Sobel]

No, I will not give way. We have very limited time in this debate.

Mr Desmond added:

“It’s quite long, so he got the gist.”

It is somewhat ironic that Mr Desmond’s autobiography is called “The Real Deal”, as he certainly tried to get the real deal from the Secretary of State.

The advertised prizes on the night of the dinner included a dinner with the right hon. Member for Surrey Heath (Michael Gove) and Sarah Vine; a flight in a Lancaster bomber with the Secretary State for Transport; a trip to a Tory donor’s house, with shooting opportunities; and a night out with a former Prime Minister—although whether or not she would be wearing kitten heels was not revealed. The prize of a planning decision from the Secretary of State was not advertised.

Mr Desmond challenged the Secretary of State’s claim just two days ago that he did not discuss the decision in any way at the £900 dinner. Just two days ago, the Secretary of State was saying that he did not discuss it, and he has now admitted that he did and that he watched the video. He has backtracked on all his claims.

At the time of the decision, on 14 January, the Secretary of State overruled his officials to approve the scheme. We now know that two weeks later Mr Desmond deposited a £12,000 donation to the Conservative party. That is a bit cheap for a man reportedly worth between £1 billion and £2 billion. The Conservative party fundraising team should try a little harder in future. Tony Blair managed to get £100,000 from Mr Desmond 20 years ago, and six years ago UKIP got £300,000 from Mr Desmond, so Conservative Members might be ruing lost income.

Of course, the real saving for Mr Desmond was the fact that the decision was approved just a day before the council approved the CIL. I take on board the Secretary of State’s view on that, but that CIL still would have bought three high schools, 10 new libraries, 50 new pocket parks or 200 new pedestrian bridges for one of the poorest authorities in the country. That is the cost of such decisions.

I was a councillor for six years. If the chair of my council’s planning committee had done what the Secretary did, he or she would have been referred to standards for a serious breach. That is what we are now facing, and the Secretary of State knows it. He knows that he has not acted with propriety or honour. He should recuse himself and there should be a full investigation on standards, because it is clear that there is a question as to whether he broke the ministerial code.