Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses (Questions 40 - 46)

MONDAY 10 NOVEMBER 2003

COUNCILLOR BILL FLANAGAN OBE, PROFESSOR STEVE FOTHERGILL, MR STEVE BURROWS AND MR KEITH MACKENNEY

  Q40  Mr Cummings: I am very sad to hear that, Chairman. Knowing the tenacity of the CCC, I am surprised that no-one has come forward to try and accommodate meetings with ministers. You have many friends in Parliament, many Members of Parliament representing ex-coalfield areas. Have you ever approached them on this particular score?

  Professor Fothergill: We have tried several routes in. Let me say the criticism here is not directed at individual ministers but more at a corporate culture, more at the orientation of the civil servants in the Department of Transport.

  Councillor Flanagan: Perhaps I can explain that we are aware of it. You did ask earlier, Mr Cummings, about emphysema, the miners' pension fund and various other things. We have seven staff in the CCC. There is a lot of work for them to do, and at present we are trying to get the Treasury to stop taking £400 million out of the miners' pension fund. So we have a lot to do, as have you.

  Q41  Mr Cummings: I would certainly agree with you there, as long as you are not expecting that £400 million to go into regeneration projects.

  Professor Fothergill: The issue on the miners' pension fund is that there is this large flow of cash out of the fund into the Treasury, and we are saying to the Treasury that more of that money should be left in the pension fund for the benefit of retired miners. But we are also saying that more of what they do take out of the pension fund should then be recycled back to regeneration.

  Q42  Mr Cummings: You have no right to say that. It does not belong to CCC. It belongs to many hundreds of thousands of mine workers who have contributed all their lives.

  Mr MacKenney: On behalf of Kent, there is a wide understanding that most of the expenditure on road and rail has gone into the South East, but I have to say that East Kent has not seen much benefit from that. It takes people very quickly through East Kent but it does not do much for the people of East Kent. As Professor Fothergill has made this point, I would like to relate it to the question of the Channel Tunnel Rail Link domestic services. Very little account has until recently been taken of the potential regeneration benefits of introducing these services to East Kent. I hope that things have changed now, and things seem to be improving. However, neither the railway nor the roads investment in East Kent take account of the regeneration efforts of SEEDA or anyone else. There is still considerable work required on both road and rail.

  Mr Cummings: Can I thank Mr MacKenney for that, because that was going to be my next question.

  Q43  Christine Russell: Can I move on to housing. Many coalfield areas are blighted by a collapse in the housing market. What solutions do you have on that front? Do you think the Government should be doing more to help you?

  Councillor Flanagan: The Government are doing all right, again, in Meden Vale, Mansfield and Bolsover with English Partnerships. It took a long time to get it off the ground, but there are 600 houses there. One of the problems, of course, was the absentee landlords that bought up Coal Board estates. When industry comes back, there will be a need for housing and people will buy it and do it up, but it is the people who cannot sell their property that is causing the trouble, the people who were encouraged to buy council houses—not by you but by some people. Then they closed the pits, and they are left with a house that they cannot afford to keep. They cannot afford the mortgage. They have no job. They cannot sell it because nobody will buy it because there are no jobs to come to. They cannot get another job elsewhere because they have this mortgage round their neck. Houses are being sold for £200 in Grimethorpe. This is the problem, and you can see it. It is just tiredness, a bit of depression all round. There is money for industry, and I think local councils have asked for a bit more to be earmarked specifically for housing. This is the trouble; whenever we get more for housing, it is across the board. If there is more for education, it is across the board. If there is more for social services, it is across the board. Those who are behind always stay behind. You have to earmark additional money for coalfield areas and housing, and that will do it. That would be great.

  Q44  Mr Cummings: There is another element to this, and that is the number of carpetbaggers who are moving into coalfield areas and snatching up properties, and they do not have any intention whatsoever of improving or regenerating the area.

  Councillor Flanagan: That is the absentee landlord, but from this Department, from the Office of the Deputy Prime Minister, Chesterfield has received a Neighbourhood Regeneration Grant, which has given encouragement to about 1,500 people in that area. The money has been spent wisely, it is being monitored, local people are getting interested, dogs are not allowed to foul, gardens are starting to be built, cars are not parking on grass verges. In that area, which is part of the Markham Pit, you can see the pride coming back through getting this Neighbourhood Renewal money. It has been tremendous. It has done a good job.

  Q45  Christine Russell: So Neighbourhood Renewal is a good programme to get into those areas, is it?

  Councillor Flanagan: Very good.

  Q46  Christine Russell: What about the experience in Kent and Staffordshire? Has there been a collapse in the housing market there in the old mining areas?

  Mr MacKenney: Not in Kent.

  Mr Burrows: In Staffordshire there has not been a complete collapse in the housing market, but it has been awarded Pathfinder status. That is partly in recognition of the fact that it has a considerable surplus of social housing, although much of it is in the wrong places and much of it is of the wrong type. Much of it is three-bedroomed, semi-detached on traditional estates where the demand is for single person accommodation, particularly for old-person specialist accommodation. Some of it is in the wrong areas. Some of the estates are half-occupied and half-abandoned. We have the problem of mixed ownership, where some is still publicly owned and some is privately owned. Those are the issues that the Pathfinders have got to deal with. It is intending to produce its strategy-cum-business plan by March, and at the moment it is doing quite a lot of research into these particular problems, but there are clearly some fairly serious issues to be addressed.

  Professor Fothergill: Even the Government admits that of the areas of low demand housing around the country, only perhaps half of them are within the existing Pathfinder areas. What we are trying to do at the moment jointly with English Partnerships is to pinpoint the scale of the problem in the coalfields out there beyond the Pathfinder areas, and we are beginning to get a handle on it. As to what the solutions are, I think that is inevitably going to vary from place to place. In some instances it will no doubt involve demolition and perhaps rebuilding, but not on the same scale. In other areas it may involve transfer of ownership from absentee landlords to local authorities or housing associations or whatever. I think we are at an early stage in tackling this one, but it is clear that if we are going to tackle it, it is probably going to need some cash.

  Chairman: Gentleman, I apologise for the interruption in our proceedings, but we do appreciate you coming along. Thank you very much.





 
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