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Motion made, and Question put forthwith, pursuant to Standing Order No. 118(6) (Standing Committees on Delegated Legislation),
Motion made, and Question proposed, That this House do now adjourn.--[Mr. Clelland.]
Miss Anne McIntosh (Vale of York):
I am delighted to have this debate on compensation to be paid on the compulsory acquisition of land. I am sure that the House recognises the growing demand for reform of our system of compulsory purchase and compensation. It is an extremely complicated area of law and, currently, 42 separate Acts of Parliament apply. The system is complex, slow, expensive and inefficient. It is grossly unfair and heavily biased in favour of national companies, such as the National Grid Company, and other powerful bodies. Might is not always right, so I welcome the Government's fundamental review of laws and procedures relating to compulsory purchase and compensation, and the interim report.
I should also like to take this opportunity to ask that the Electricity Act 1989 be revised and amended. My particular reason for asking for this debate is the overhead power lines that transmit electricity across the Vale of York and elsewhere in North Yorkshire. A review of both compensation and compulsory purchase and the Electricity Act would help to restore the balance by tilting it more in favour of individual landowners' rights and property interests. It is generally recognised that the Englishman's home is his castle, so how many of us would welcome agents of the National Grid Company entering our property and trampling over our land, often without sufficient warning?
Problems arise at various stages. There will be blight both before the pylon is in place and following construction. There will be a substantial drop in the value of the properties and in the enjoyment of those who live there, as their view will be impaired and there will be pollution from the lines.
The first problem is the serious lack of agreement and the inability of landowners and the National Grid to negotiate about the dent in property values. There is a discrepancy of hundreds of thousands of pounds. That problem must be addressed, procedures must be adopted and compensation levels for pylons must be put on the same basis as for road construction and flood defences.
The second problem is referred to in paragraph 8.5.1 of the interim report commissioned in the Government review. It states:
The purpose of this debate is to put before the House and the Minister the real concerns that my constituents have expressed about these problems. Tempers are running high in the Vale of York, and there was nearly an assault prior to Christmas last year because of the failure to reach an agreement. Little notice is given and scant regard is shown for property and for landowners'
rights. I shall give some examples of unsympathetic, hostile and offensive behaviour, particularly by the National Grid or its contractors.
Before the wayleave hearings, the National Grid sought to reach agreement with the landowners by offering easements for the overhead line. By offering an easement, as opposed to a wayleave, the National Grid offered a capital payment to reflect the depreciation in the value of the properties, particularly the residential properties, that would be affected by the proximity of the proposed electricity line. Any landowner who did not sign up to the easements before the commencement of the wayleave hearings had the offer withdrawn, with the threat that, once the wayleave hearings were completed and the National Grid had obtained consent for the line, the landowner would receive only an annual wayleave payment that would not reflect the depreciation in capital values suffered. That is a clear abuse of compulsory purchase powers.
I shall refer briefly to correspondence that I have received from my constituents about this matter. One letter referred to a wayleave pre-hearing meeting at Northallerton in December last year. The inspector was asked about the width of the wayleave required over a particular constituent's land. He was unsure of the answer and referred the question to the National Grid. It declined to state the required width of the wayleave to the inspector, so my constituent's question went unanswered. The National Grid then refused to state the width of the wayleave required; that places my constituent in an unacceptable position, as he is uncertain about the amount of land that will be taken out of production. My constituent believes that withholding such information is an infringement of his rights, and I share that view.
Another constituent asked that farmers be given reasonable notice--six months' notice--before the commencement of construction in order to assist them in going about their business. That is a perfectly reasonable request, particularly when such a large project is in hand. I ask the Minister why the rights of farmers are not respected in that regard.
I was struck most by a letter that I received from the Minister for Energy and Industry in February this year, in which he said:
Another constituent said that the National Grid
Another problem is that, where overhead lines pass within 150 m of a residential property, the National Grid does not require a wayleave or easement from the individual property owner. A recent complaint is that the National Grid or the contractors have deliberately entered land when the occupier is absent.
There is clearly blight on all those properties because of the associated noise and perceived health risk of a property being close to a high-voltage electricity line. Under a highways scheme, property owners would be eligible for generous compensation, but apparently compensation for such property owners is excluded under the Electricity Act.
Other companies operating in the private sector are known to make more generous payments. For example, payments received as annual rental for mobile phone masts over 15 m high, but substantially lower than the pylons in question, are only a little less than the one-off payment offered by the National Grid in respect of the giant pylons that it seeks to build.
I urge the Minister to go further in the direction that his Government are taking. They commissioned a publication produced by the Property Industry Group, called "Blight, Might and Rights". That group includes the Country Landowners Association, the National Farmers Union, the Agricultural Law Association, the Federation of Small Businesses and many others. It said:
I turn briefly to flood defences, which raise many concerns and issues similar to those raised by pylons. Coastal property owners and farmers who are faced with
the potential of managed retreat are disappointed that the Ministry of Agriculture, Fisheries and Food is still unwilling to acknowledge financial loss, even though the Select Committee on Agriculture strongly recommended a compensation mechanism.
The word "compensation" appears not to be accepted by MAFF, whereas the word "benefit" is. That is the benefit to the country as a result of farmers giving up their land for sustainable flood defences. It is only fair that compensation should be paid in such circumstances, as it is for the building of roads, airports and the like. The Government have clearly recognised that there is an acute problem with laws and procedures relating to the compulsory acquisition of land and compensation.
I am grateful for this opportunity to raise these concerns on behalf of my constituents. I make a plea to the Minister, the Government and the House to put all forms of compulsory purchase of land on an equal footing, and to make compensation for overhead power lines, flood defences and road construction equally generous and based on the same principles in every case.
I regret that, with regard to overhead line transmissions and the construction of pylons, the National Grid has clearly and often been seen to act in an arrogant, hostile and insensitive manner, at times causing great offence and concern to landowners who live in the Vale of York. Courtesy and advance notice would be appreciated--particularly more than seven days and possibly as much as six months before pylons are constructed. That is not too great a request.
That the draft Potato Industry Development Council (Amendment) Order 1999, which was laid before this House on 13th April, be approved.--[Mr. Clelland.]
Question agreed to.
8.38 pm
"A major source of grievance among property owners is the right of private companies to use compulsory powers to acquire property, paying a form of statutory compensation which is commonly perceived as benefiting shareholders at the expense of landowners."
Aberdeen university is conducting research into wayleaves. Chapter 9 of the interim report examines the programme of further work, but, surprisingly, does not mention any review of wayleaves once Aberdeen university completes its research. Why not?
"I am unable to intervene as questions of compensation for the presence of an electric line are not the responsibility of the Secretary of State, who has no powers under Schedule 4 to the Electricity Act 1989 to prescribe conditions in any wayleaves he may grant. Compensation falls to be settled by agreement between the parties or, failing agreement, by the Lands Tribunal at the request of either party."
That is a totally unacceptable response on the part of the Government, and this is an opportunity for the Minister to confirm to the House that the Government will consider that Act and give the Secretary of State the necessary powers.
"have had nine years to plan their proposed development. How do they expect a farmer to adjust his farming activities (cropping and grazing programme) to accommodate a major development with only 28 days' notice?"
On another occasion, an adviser to that landowner wrote:
"I appreciate that the Secretary of State believes he does not have the power under Schedule 4 to the Electricity Act 1989 to prescribe financial conditions in any wayleave he may grant."
12 May 1999 : Column 389
He continued:
"The Minister must look again at the Electricity Act 1989. The National Grid Company must look again at its policy for future electric lines."
I refer in particular to one constituent, Mrs. Hird, who has three young children, whom she has now discovered are on the European at-risk register on possible cancers forming because the children will be brought up under an overhead power line. Because the pylon does not pass across her land, she is not eligible for compensation. She has made a very modest request that the pylon should be moved a further 20 m away from her house. As I speak today, the National Grid has not seen fit to agree to that.
"National projects requiring compulsory purchase powers take years to deliver, and leave a trail of disaffected claimants in their wake, and fail to address blight."
It claimed:
"Compulsory Purchase Law and procedure should be updated to ensure just and equitable treatment for persons affected, at the same time as ensuring those who need property to modernise and improve the National Infrastructure"--
such as the grid--
"are able to proceed more quickly than at present."
The group's most alarming conclusion was, perhaps, that privatised utilities
"have inherited the power of the State to compel people to part with or grant rights in land and property for their own benefit. There has been no amendment of the legislation to reflect their commercial interest."
This is an opportunity for the Government, as part of their review, to amend and update that legislation. "Blight, Might and Rights" points, in particular, at procedures, costs, the blight that I have mentioned, negotiations and a code of practice.
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