Chatham Docks Basin 3 Redevelopment

Neil Coyle Excerpts

Wednesday 1st May 2024 Westminster Hall

[Kelly Tolhurst (Rochester and Strood) (Con)]

I beg to move,

That this House has considered the redevelopment of Chatham Docks Basin 3.

It is a pleasure to serve under your chairmanship, Sir Philip.

The debate over the future of Chatham docks has stirred strong emotions in our community. On one side, Peel Waters has proposed a residential-focused mixed-use development, but closer examination raises concerns about its sustainability and impact on our already thriving industries. The proposal has prompted legitimate worries about the quality of jobs, uncertainty surrounding investments and the overall environmental footprint, echoing sentiments that I have been expressing for several years.

In response to those concerns, I have been championing an alternative vision alongside the Save Chatham Docks campaign. It centres around the SPPARC Architecture masterplan, which sets out revitalisation focused on modern industrial space, emphasising job creation, economic growth and environmental sustainability—all essential for the future of the port’s activities. I appreciate the opportunity today to highlight that cause and to bring further information forward as to why saving the docks is the only sensible solution.

Chatham docks was part of the old Royal Navy Dockyard Chatham estate, which has stood proudly for 457 years.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

Sir Philip, is it not normal to declare interests at the start of a debate? Is the right hon. Lady intending to make any such declarations?

[Kelly Tolhurst]

I am not too sure what the hon. Gentleman refers to.

[Neil Coyle]

Sir Philip, you may wish to explain the rules—but I think it is a requirement that where we have interests in a particular area, or a potential financial interest, we declare them before we comment on or speak to that issue. I again invite the right hon. Member to make any declarations that are relevant.

[Kelly Tolhurst]

I would like the hon. Gentleman to elaborate on which financial interest he thinks I have.

--- Later in debate ---

[Kelly Tolhurst]

My understanding is that there are other organisations operating within the port facility that want to stay where they are. Some have relocated because they unfortunately did not have another option; their leases meant that they were unable to stay.

The operations at Chatham docks span a diverse range of high-value industries. Materials and goods are brought in via water channels, undergo processing and manufacturing, and are subsequently exported.

[Neil Coyle]

Two of the companies that have been operating in Chatham docks for marine repairs are EAPL and Stick-Mig Welding. Does the right hon. Lady have anything to say about the relationship between Skipper Ltd and those two companies?

[Kelly Tolhurst]

I think the hon. Gentleman is referring to Skipper (UK) Ltd, which I am still a director of—and which has no customers or interests in Chatham docks or any of the businesses that operate in Chatham docks.

A sometimes overlooked aspect of the incumbent operations at Chatham docks is the strong commitment to nurturing talent. The array of apprenticeship programmes provides excellent avenues towards rewarding careers. In 2020 alone, 16 apprenticeship programmes offered 20 positions per 1,000 jobs, massively surpassing the Medway average of about nine apprenticeships for every 1,000 jobs. The investment in people not only benefits the individuals involved but strengthens the workforce of the entire region, offering high-quality careers that make a real difference.

Importantly, the jobs offered at Chatham docks provide above average wages, raising the median wage in Medway. The average annual earnings were £43,000 in 2023—nearly 9% higher than the Medway median wage. These positions serve as a crucial driver of economic stability, especially in an area where 13.5% of Medway’s workforce earn below two thirds of UK median pay as of 2021. It is clear that Chatham docks are absolutely essential for the local population. In 2019, it was found that 20% of its workers lived in the Chatham docks three-digit postcode—ME1—and 45% across Medway.

The economic significance of the docks extends beyond direct employment and wages: it contributes significantly to the regional economy, accounting for more than 4% of Medway’s gross value added and generating approximately £89 million in GVA annually. In addition to its economic contribution, Chatham docks also plays a vital role in generating tax revenues, which contribute essential funding for local services and infrastructure. The annual tax revenues are estimated to range between £27 million and £36 million, and the annual business rates payments are about £2 million. Those revenues also provide financial resources to support the community.

The main issue at hand, and my reason for calling this debate, is the progress of Peel Waters’ attempt to end the use of Chatham docks as a commercial port, displacing the businesses within it, with the loss of high-quality jobs. Peel Waters has a vision to implement a residential-led, mixed-use development across the site. It has been over a decade since Peel Waters first set its sights on the redevelopment of Chatham docks, and started to redevelop part of the land. Its 2013 application initially boasted that development of Chatham Waters would provide 3,549 permanent jobs once fully developed, or 2,418 net additional jobs, with an associated GVA of around £92.4 million.

The projections suggested a substantial boost to both employment and the local economy. Looking deeper into the plans as time progressed, however, all is not as it seemed. The 2013 planning statement provided a more specific breakdown of the employment that would be delivered. It showed a significant proportion of projections included employment for retail and hospitality. For the projected 764 jobs as part of phase 1, 400 to 450 would be provided at the Asda retail food store, 40 to 50 at the pub and 20 at a coffee shop. I have long championed the hospitality industry, but this would be a stark contrast to the jobs that they would replace from the manufacturing, construction and transport industries.