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11.22 pm
The Minister for Transport in London (Ms Glenda Jackson): I congratulate the hon. Member for Twickenham (Dr. Cable) on obtaining this debate. First, it may be helpful to the House, Sir Alan, if--
Mr. Deputy Speaker (Sir Alan Haselhurst): Order. I remind the hon. Lady that we are no longer in Committee.
Ms Jackson: Thank you, Mr. Deputy Speaker.
It may be helpful to the House if I say something about the constitution and statutory powers of the Port of London Authority, before dealing with the authority's relationship with residential boat owners on the river.
The PLA is the statutory harbour authority for the River Thames. It is a trust port with statutory responsibility for conservancy of the tidal River Thames. It owns much of the river bed and foreshore. The statutory provisions relating to the PLA are set out in the Port of London Act 1968. Under that Act, the PLA provides navigational services and is responsible for maintaining shipping channels, moorings and navigation lights. The authority is also responsible for licensing river works. In the case of houseboats, works licences are issued to cover the mooring points.
With regard to the hon. Gentleman's points about requiring changes to the PLA, as I am sure he is aware the Department is conducting a review of trust ports. Accountability is one of the important factors that is being examined. We are also looking at the relationship to be established between the PLA and our proposed Greater London authority.
The PLA funds statutory functions by charging for services provided, including the issuing of works licences. The 1968 Act requires the charge for licences to be the best consideration that can reasonably be obtained having regard to all the circumstances of the case. The PLA regards that as "the market rate". Section 67 of the Act provides for disputes regarding charges to be considered by an independent arbitrator appointed by the president of the Royal Institution of Chartered Surveyors.
Arbitration in such cases should be possible at a reasonable cost to all parties involved, as the arbitrator will be able to assess the appropriateness of the charges being disputed without the need for a detailed legal case. I understand that it has rarely been necessary to resort to arbitration, as it has almost always been possible to reach a commercial agreement by negotiation.
There are 234 residential craft moored on the tidal Thames within the PLA's jurisdiction. Those craft range from floating, purpose-built two-storey houses and bungalows to Dutch-type barges, canal narrow boats and various other vessel conversions with much less living space. Residential craft are mainly concentrated on licensed moorings on both banks of the river between Cheyne walk in Chelsea and Swan island in Twickenham.
Six licensees have negotiated long-term agreements with the PLA's agents in respect of 99 of those craft. Fees have been set and reassessment criteria established for 20-to-60-year terms. A further 105 residential craft are moored at 11 separate locations on bulk licences held by seven licensees. The remaining 30 craft are held on river works licences granted to 23 individual licensees.
Thus, the current 234 moorings are licensed to 36 licensees. That means that the vast majority of occupiers are tenants of the licence holder. In those cases, there is no agreement whatever between the occupier of the boat and the Port of London Authority.
I shall now deal with the current dispute between boat owners and the Port of London Authority. In 1986, the PLA consulted the Residential Boat Owners Association and, at that time, arrangements were made for a rate per foot length to be applied to all residential craft moored on the tidal Thames and linked to the annual retail prices index. That arrangement continued until 1993, when the PLA gave notice to licence holders that a review would be undertaken in 1997.
In recent years, a number of new residential mooring developments have been licensed and the PLA's chartered surveyor agents have negotiated long-term agreements with new licensees. The current annual consideration agreements are for greater sums than those paid under the 1986 arrangements. In addition, the nature of houseboats has changed to some degree, with purpose-built floating houses and bungalows now appearing on residential moorings up and down the Thames.
The PLA was advised that an assessment based solely on the length of craft was no longer appropriate, and was not in accordance with the PLA's obligation to obtain the best consideration. Charging by craft length did not produce a market rate as it took no account of the amount of living area available in each dwelling.
Ninety-nine moorings are not subject to the current round of reassessments. Of the 135 that are currently being re-assessed, some 20 are licensed to individuals. To date, notice of the revised annual charge has been given to two bodies and three individuals in relation to 49 craft. The PLA has explained to those concerned the procedure for making objections to the charges. The
PLA's assessor would discuss the grounds for the objection with the licensee and, failing an agreement on the annual sum, an arbitrator would then be appointed, as provided for in the Port of London Act 1968.
All those so far reassessed have formally objected in accordance with the procedure that I have described. The Swan Island harbour at Twickenham, with 37 craft, has appointed a chartered surveyor to represent it in negotiations with the PLA. The Richmond Upon Thames Churches Housing Trust and the three private individuals have appointed the Residential Boat Owners Association to represent them. The remaining 86 moorings fall due for reassessment in the first quarter of 1998.
The Residential Boat Owners Association has recently written to me and to those hon. Members whose constituencies cover the Thames. The association wants the PLA to negotiate directly with the occupants of the houseboats rather than with the licensee of the mooring. That would be possible where the harbour legislation provides for the occupants of houseboats to have licences with the harbour authority, but that is the position for only a few occupants under the Port of London Act.
The Residential Boat Owners Association has asked the Government to intervene. The hon. Member for Twickenham has also asked Ministers to hold a meeting. I found the hon. Gentleman's remarks offensive. I would not disregard a request from people, even if they did break the crockery, and it is clearly a duty of Ministers to meet those who have concerns. I am not aware that his letter also contained a request for a meeting, but if he wishes to ask for one, I shall be happy to oblige.
My Department has no locus to intervene in disputes over mooring charges. However, my officials have raised with the PLA the concerns that have been expressed to me. The PLA has shown that it is keen to reach an agreement and that its agent is anxious to deal directly with the licence holders and those who are appointed to represent them. If that is not possible, there is, as I explained earlier, a procedure for objections which has been notified to licence holders. In the last resort, the Act gives them recourse to arbitration as a means of ensuring that the charges imposed are reasonable.
I accept that occupants who are the tenants of the licence holder are unable to use the arbitration route since the PLA is not levying a charge on them. The fact that all the reassessments made so far are subject to objections demonstrates that the licence holders are not simply accepting the revised charges. Therefore, it would appear that the objection procedure is working effectively, and that licence holders are taking steps to protect the interests of boat owners, who are, in effect, their tenants.
I hope that I have reassured the House that the procedures that are currently in force for the licensing of houseboats on the Thames make adequate provision for those who wish to object to the proposed increases in houseboat mooring charges.
Question put and agreed to.
Adjourned accordingly at twenty-nine minutes to Twelve midnight.
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