New Covent Garden Market

Debate between Teresa Pearce and Chris Heaton-Harris

Tuesday 2nd July 2019 Westminster Hall

[Chris Heaton-Harris]

I agree. I thank the hon. Lady for her contribution and the way she represents the market in this place. I regularly speak to various of my old friends—I think they are friends; lots of them were customers or people I bought things from, so perhaps they are business associates—and I know that she is a very good representative of the market who talks to the tenants a great deal and represents their concerns wisely.

We are squeezing a big, successful business into a smaller space. The market had a massive footprint, and when I was trading there a lot of it was not used effectively, so it is possible to understand some sort of consolidation, but the scale we are talking about now makes that an interesting prospect. At a time when the turnover of the businesses in the market is growing, it seems odd to reduce the market’s footprint. Although the tenants are not over-happy with the overall reduction in size, they have tried their best to make it work. Various pieces of land have already been sold off, and in some instances they are sold on again. The market area is to be reduced even more. Among other changes, the temporary flower market site will be incorporated into the main site. In essence, we are squeezing a quart into a pint pot and hoping that the businesses inside the pot do not get squeezed.

Over the years, the tenants have repeatedly raised concerns through their association that the proposed end-state configuration of the market that the authority is now engaged in building will not be able to operate successfully because the proposed layout and footprint simply will not accommodate the vehicle movements needed for the market to operate effectively and efficiently. The tenants of the market are very knowledgeable—and, indeed, vocal—about how the business of the market works, and their opinions about whether what is proposed will work should carry significant weight. They have retained the services of a specialist transport consultant, who advises that there are significant failings in the transport analysis and planning undertaken by the market authority. The Minister is well aware that the market authority is a public body that has a statutory duty to provide functioning market facilities and prevent traffic congestion on the market land.

The market authority is currently redeveloping the market under a contract entered into with the developer, Vinci and St Modwen Properties, in 2015. The developer commenced the main works in October 2018. Since then, an independent logistics consultant, instructed by the tenants association, has confirmed that, as designed, the market will not be operationally viable in parking and loading/unloading terms, and will therefore constrain the businesses it contains. The market authority has allowed the developer to start the construction works, but there are problems, because the tenants say that that has happened without the authority having taken the tenants’ logistics consultant’s advice about the design, and without its waiting to see the final report prepared by Arup, a logistics consultant instructed by the developer, which confirmed that the new market, as presently designed, would not be operationally viable. Arup’s final report said that to make it viable certain measures identified in a list contained in that report would need to be adopted. I am told that Arup had been asked by the market authority to use transport data that was known to be out of date and inaccurate when assessing the viability of the options, but it still came to that quite drastic conclusion.

The market authority has power under its contract with the developer to require changes to be made to the design of the market, but it has yet to decide to follow up Arup’s advice. Instead, the developer presses on with the works as they stand. I wonder whether my hon. Friend the Minister is comfortable with that decision. I also wonder whether the Department for Environment, Food and Rural Affairs has been provided with a report from a logistics consultant—or any report—confirming that, contrary to the view of either the tenants association’s logistics consultant or Arup itself, the current design will be operationally viable. If so, would it be possible for the tenants to see it, to give them some comfort that these changes will work?

This is where my old life as a tenant of the market comes into its own, because battles over rent were legendary back in the day when I worked in the market: in April this year, the market authority sent notices to terminate the tenancies of market tenants and threatened, in a letter from its solicitors, that if tenants did not immediately agree to give up their statutory right to apply for a new tenancy and agree to vacate their units at the expiry of the notice, they would not be offered tenancy of a unit in the newly developed market and would have to depart the market instead.

[Teresa Pearce (Erith and Thamesmead) (Lab)]

It is my understanding that one of the key roles of the Covent Garden Market Authority is to nurture good relations with tenants. How do such actions nurture good relations?

[Chris Heaton-Harris]

I know that changes at the top of the market authority have been welcomed by the tenants, and that much better conversations are being had now than have been had for many a year, but I do not believe that this is an appropriate way for a public authority to behave.

Additionally, the new draft leases issued by the Covent Garden Market Authority are removing the rights of the wholesale tenants to operate in the critical and traditional way on the bit of the market that everybody loves so much, the buyers walk or trading floor, turning that essential space into a corridor rather than a market. I can honestly tell the Minister that removing that space will almost completely remove the heart, soul and character of the market.

In the new leases, the market authority has also changed the rent negotiation process and general service charge calculations, as it has now declared that it is in fact a commercial landlord. Those actions will inevitably result in many of the smaller companies based at the market closing as the site becomes unaffordable.

Since the whole process started, there have been vast changes in how the market operates. Goods are now mostly chilled instead of being stored at ambient temperatures, and businesses’ being able to unload big lorries, repick orders and deliver in quick time continues to reduce the number of large vehicle movements required on London’s roads. However, that makes the traffic studies more important than most people believe. There is yet to be a traffic study conducted that says the future design of this important food distribution hub for London will work; indeed, all those that have been done, or at least those that are in the public domain, say that it will not. If it does not work, the market will eventually die. All the catering outlets, restaurants and food businesses currently served by the market will not go away; they will simply be catered for by businesses that travel many more miles to get into London, further adding traffic and pollution in this great city of ours.

I do not think we can ignore the facts, stand back and allow the developer and the market authority to build a market that is functionally inoperable. Action must be taken. I hope that the Government have given due consideration to the effect on tenants, businesses and the wider economy if the market were to go into decline or fail altogether. There is no need for that to happen.

I would like to think that the Minister, whose knowledge of and commitment to solving these issues is both impressive and welcome, will continue to ask those on all sides of this debate to come together to find a mutually agreeable and workable solution—all sides meaning the market authority, the tenants, the developer and the Department itself. This needs to be sorted before millions of pounds are wasted in court and one of the most vibrant parts of London’s market culture possibly ceases to be.

Housing Costs (Reformed Welfare System)

Debate between Teresa Pearce and Chris Heaton-Harris

Tuesday 3rd March 2015 Commons Chamber

[Chris Heaton-Harris (Daventry) (Con)]

It is a pleasure to take part in this debate. I am sorry that I missed the first couple of minutes of the speech by the hon. Member for Aberdeen South (Dame Anne Begg), because she speaks very sensibly on this issue and many Government Members listen to what she has to say about it. I will pick up on a couple of points she made.

The hon. Lady has spoken in the past about the amount that we spend on housing benefit. It was a matter of concern to us all that the housing benefit budget seemed to be getting out of control in the run-up to the last general election. In fact, the housing benefit bill was forecast to rise over the current Parliament from £21 billion to more than £26 billion. This Government’s reforms have only pegged back that increase by about £2 billion a year, which, given the potential growth in the budget, is not very much at all.

The hon. Lady spoke about how the spare room subsidy has been working in practice. Like the hon. Member for Birmingham, Yardley (John Hemming), my constituency surgeries were visited by many people when the policy was first mooted, perhaps because they were scared by stories that were being circulated at the time about how it would affect them. There was a general lack of knowledge about discretionary housing payments and who can receive them for. I am pleased that we were able to help every person who came through the door of my constituency surgery advice centre seeking help in that area, and all received discretionary housing payments.

Interestingly, Daventry and District Housing, which serves a huge area of my constituency, saw the policy change coming down the line. It is a good housing association in many ways because it talks to its tenants on a regular basis and gets to know them, and it therefore made sure that they were ready for the change. Most tenants in Daventry and District Housing accommodation knew that the change was coming, and knew that discretionary housing payments were available and how to access them.

I sit on the Public Accounts Committee, which discusses these matters—I will mention the report that the hon. Member for Aberdeen South spoke about in moment—and it is fairly obvious that different parts of the country, different housing associations, and different councils have acted in completely different ways over this change. They have probably acted in their best local interests, which is fine, but it has led to different outcomes in various parts of the country that all have remarkably significant and different pressures on them.

In one of my first years on the Committee, its Chair, the right hon. Member for Barking (Margaret Hodge), took us to see a primary school and surrounding housing estate in her constituency. We had been talking about health and housing inequalities, and the trip was to see how primary education was working. I acknowledge that the pressures on housing in Erith and Thamesmead, or in Barking and Dagenham, are completely different from those in my constituency, and that is why local experts and housing associations in that area know their tenants well.

The interesting background to this debate concerns an area of spending that was constantly growing and needed to be brought under control—however we paint the picture, the Government’s moneybags were not particularly full when they came to office in May 2010, and although they are a bit better now, there are still tough decisions to be made. Such decisions must be based on fairness—I know that some Opposition Members do not consider this measure to be fair at all—and we must consider how we change a policy that is already enacted for those in the private rental housing sector but not for those in the public rental sector.

At this point I should say that I rent out a house. My private property in Lincoln is noted in the Register of Members’ Financial Interests and I rent it to a private sector tenant who to my knowledge is not on any type of benefit. There is a proper debate to be had about this issue, which was started in no uncertain terms by the previous Government.

This Government brought forward their proposals with the safety net of discretionary housing payments. I do not want to disagree with the hon. Member for Erith and Thamesmead (Teresa Pearce) because she will know her local area much better than I will, but perhaps I misheard her. She was talking about warrants for evictions, and perhaps she meant from the private rental sector.

[Teresa Pearce]

indicated assent.