Select Committee on Culture, Media and Sport Minutes of Evidence


Examination of Witnesses (Questions 160 - 170)

MONDAY 20 MARCH 2006

MR PAUL SPOONER, MR JIM GILL AND MS HEATHER EMERY

  Q160  Janet Anderson: I could not agree more with what Heather and Paul have said about the need for early consultation, because I have got some of this going on in my own constituency. I would like to ask you whether you think there could have been better guidance to local authorities about the way in which they involve the local community. I am thinking in particular about some of the letters that were sent out to my constituents which were very insensitively worded. Sometimes there is a tendency to think if you have distributed leaflets and held a couple of meetings, then you have consulted everyone, and that is not necessarily the case. My short question is, could better guidance be given to the local authorities and others that are managing new schemes?

  Mr Spooner: I do not know about the particular case you are referring to, but I would say broadly speaking there has been a lot of lessons learned over the last 10 years about consultation and engagement of local people in the development of areas and particularly areas that are going to be changed quite dramatically. I think it is very important that that experience where it is has worked—and I can think of examples, say, in East Lancashire where we have had particular experience recently, but there are many other areas—is recorded and shared, so best practice in terms of the way to engage local communities in the process of change is spread across the country. English Partnerships has a role there because part of our role in supporting urban renaissance is to promote good practice. We do that by producing best practice guides and holding workshops that bring people together from different local authorities to share their experiences. For example, we have a workshop on housing market renewal which is being organised in April and that is two years after the start of housing market renewals. We look at those areas that have involved local people in the design and development of neighbourhood renewal schemes to see what we can learn from that experience. I do think it is important that best practice is shared. However, I do feel the process of housing market renewal does require in some cases the level of transformation and change which means that even with every bit of consultation there will be some people who feel that this is not the outcome they were seeking. The overall aim must be to design with local people a scheme which improves the quality of life and environment and creates future prosperity for that area.

  Mr Gill: Can I make an observation on that point as well. It is not one which I make from personal involvement so it may be prejudice as much as observation, but Paul is right about best practice. It seems to me, as he said, that we have learned an awful lot, and I am sure that Liverpool City Council has learned a lot over the last 10 years and does not insensitively send out letters, certainly not deliberately. Best practice works both ways and I know that Pathfinders in the early days were under huge pressure to spend the resources that were allocated to them. I am sure the Chancellor will not change practice on the basis of this conversation but annuality is not best practice. Obliging the local authority to spend money by 31 March, and if it does not, it loses it, often makes people rush rather than take the necessary time to do things. I think there is a sense in which the balance and different priorities affect things in different ways and sometimes that may explain why people are insensitive or rush into things.

  Q161  Philip Davies: Just to do this to death to a certain extent, would you accept that the term "public consultation" has got a pretty bad reputation in that many people feel on all sorts of things that public consultation is something that authorities, or whoever it might be, go through because they have to go through, rather than with any genuine intent to listen to what that consultation throws up? Therefore many people will not take part in that consultation because they think there is no point, the decision has already been made and they are jumping through hoops now to say they have had public consultation. Apart from best practice of local authorities, how do you persuade the general public that the consultation is genuine and their view is going to make a difference, because if people do not feel that, they are not going to take part because they think their view will not make a difference? How do you persuade them that their view will make a difference?

  Mr Spooner: I think, in our experience, you do not do it by sending out leaflets saying, "Come to a public meeting". You have to be a lot more sophisticated these days and certainly you have to continue to involve local people throughout the process not just once, not just in drawing up the masterplan. English Partnerships has been involved in East Manchester where, by any definition, it has gone through and is going through dramatic change in terms of a lot of clearance of run-down industrial buildings and a lot of brownfield sites which have been remediated and brought back into proper use for public benefit. All of that work with East Manchester, with Manchester City Council, has been successful only because everybody involved has repeatedly engaged local people at the local level by being at the street level, involving people in the changes, not standing back and inviting people to come to public meetings but ensuring there are people on hand locally to give advice, counselling and support to people during a period of change. We are investing, as English Partnerships, significantly in an area of East Manchester known as New Islington which has required the demolition of a lot of, quite frankly, very poor condition 1960s housing which local people were very pleased to see the back of, but they wanted to be involved in the design and development of the new housing which replaced it. For example, the architects on part of the scheme have designed the individual properties to meet the bespoke needs of those families who want to stay in the area and want homes that meet their purposes today. That has been very successful and that was not achieved by the traditional approach of formal public consultation, but by having people from, in this case, the City Council and the regeneration partnership on the ground locally, working on site with local communities, involving people and sitting around tables endlessly to discuss how those schemes and designs might be taken forward. There is no panacea, but one example of good practice is not to talk about public consultation but to seriously engage local people at the local level in the design of the scheme.

  Ms Emery: Could I just add to that, RENEW, the centre of excellence is working—Are you aware of RENEW?

  Q162  Philip Davies: Yes.

  Ms Emery: It is the centre of excellence for the North West and they are developing different ways of understanding regeneration and good practice in regeneration and in community engagement and how they can pass on the good practice through masterclasses and exemplars. That whole process has started and it is about learning lessons.

  Q163  Mr Sanders: Simply, the bottom line for any local authority that makes a decision which upsets people is they do have the power to remove councillors via the ballot box. If your organisations get it wrong or make the wrong decision, how do people get rid of you?

  Mr Spooner: More often than not in English Partnerships we put the local authority in funds, so it comes back to us through them eventually, I guess. I think the important thing is that, as English Partnerships, we are only one partner and we are part of a partnership locally which is often rooted in local accountability through the local authority being a partner in that scheme, so we work closely with local authorities across the country. Again, an example at the moment in Manchester where we are working with the Heritage Lottery Fund and English Heritage is the Gorton Monastery area, which is a fantastic listed building but we happen to own the site adjacent to it. If we were to operate in a completely independent way, we could have taken that site and gone to the market, got a developer for that site and said, "Well, you work with the Council", but no, we feel a responsibility, as the national regeneration agency, to work hand in glove with the local authorities, local members, local councillors and local people on the ground. In this particular case of Gorton Monastery, we have said our land and the refurbishment of the monastery will work as one scheme and we will work with the local authority—and we are—to appoint a developer who is sympathetic to the needs of the local community. I do not think agencies like ourselves can operate independently any more. We have to work hand in glove with local accountability.

  Mr Gill: If you bear with me, I will tell you a little bit about Liverpool Vision. Liverpool Vision is an Urban Regeneration Company. It was the first of the regeneration companies established in 1999. The initiative came from English Partnerships, the local authority and the Regional Development Agency. The company is an independent company limited by guarantee. It has 13 board members. The board members are the members of the company, although we have representation from the local authority, the leader of the council, the leader of the opposition group and the Chief Executive. Paul is on our board as a representative of English Partnerships, and the chief executive of the Regional Development Agency is on the board. Between them the public partners pay my salary, they cover the operating costs of the company, some of the feasibility work and framework planning work that I have talked about. We have influence but no formal powers. We have influence because they have asked us to be here and because of the quality of the non-public sector members of the board. We do not have the power to take decisions on anything: we do not have any planning powers, we do not hold land and do not let contracts to undertake works. We work by persuasion, that is persuasion of our core funding partners, as I call them, it is the persuasion of the businesses that we work with and the persuasion of the communities in the areas that we work. The City Council, English Partnerships or the Development Agency could get rid of us tomorrow by simply saying, "Sorry, at the end of this year we will not be funding you any more". If councillors start losing their seats because they have been listening to us, then I am pretty sure indirectly the electorate will get rid of them as well.

  Mr Hall: I think just for the record, with the scheme we have been talking about there is 72% approval for this particular redevelopment and only one poster in one window, so I do not think there is that much of an outrage about the proposals that have been put forward.

  Chairman: There were a few more.

  Q164  Mr Hall: There may have been a few more. Can I ask a specific question for English Partnerships, the Government has just given English Partnerships responsibility for taking ownership of 67 redundant hospitals. Has English Partnerships got any brief to repair and maintain those hospitals while decisions about this proposal are being made?

  Mr Spooner: We do have responsibility for the 67. They have already required some work. We do have management responsibility for the 67 and are taking that responsibility very seriously and yes, there are more coming our way.

  Q165  Mr Hall: What basis is there to determine what is going to be demolished or what should be repaired?

  Mr Spooner: Within the protocol for the hospital sites and the large number of hospital buildings, those formal sites are very significant in historical terms and very important in the national heritage view. Knowing we were going to take on board those heritage sites, we sat down with English Heritage and started to use their expertise and knowledge in order to determine what could or could not take place. That has continued and we have very close liaison with English Heritage and the local planning authorities in the areas where the hospital sites are to ensure the plans for future development respect their heritage and retain the buildings that need to be retained. To give you one example, in the North West at the moment we are looking for a development partner for a major hospital outside Preston called Whittingham Hospital. It has a number of listed buildings, but for the other buildings English Heritage has agreed a conservation statement which we are inviting shortlisted developers to set their proposals against so we do put them out to tender. We take very seriously the responsibilities we have to protect their heritage sites, where it is appropriate, and we are getting guidance and good advice where we might go about that. What is interesting in this case and in other cases is private sector developers are equally keen to invest in those sites but to invest in the way that we require.

  Q166  Mr Hall: Who has the final decision about which sites are retained and redeveloped? Is that English Partnerships' decision?

  Mr Spooner: The decisions that are made in relation to each of these sites are guided and directed by the local planning policy. The decision to develop a site, for example for housing and in the case of Whittingham Hospital the proposal is for building something like 580 new affordable homes, is made in the context of the formal planning policy, formal decisions made by English Partnerships, by our boards, and the decision is made in line with approved planning policies. It is not the case where English Partnerships are looking forward to bring in sites in the Green Belt which are not zoned for residential.

  Q167  Mr Hall: It is interesting that you mention the Green Belt because in my constituency, in the Osterley Green site which is in the Green Belt, we have a redundant sanatorium in an appalling state of disrepair. The development with the Crown Estate has come forward with a plan to redevelop this for residential development. Because it is a listed building, in the Green Belt and it is covered by planning guidance, the Government has got to consider this for redevelopment. What have you got to say about that?

  Mr Spooner: English Partnerships would continue to be guided by the local planning authorities. The local planning authorities' view was the only way that building would be maintained was if it was to be developed for some form of housing that is considered as a suitable exception to the planning policy. That is something we would consider is not our intention or any intention for the 67 sites to go forward with.

  Q168  Mr Hall: Just for clarification, because national government policy exempts listed hospital buildings from green belt constraints, this is why this particular land can be developed? My local council has no control over that?

  Mr Spooner: In that case, if it is a governmental planning policy, we would be guided by that.

  Q169  Janet Anderson: Just on that, Mr Spooner, could I ask you, in what circumstances would you think it feasible to demolish a former Victorian workhouse if the locals wanted to demolish it and new build a new community hospital on the same site? Is that an acceptable reason for you to demolish?

  Mr Spooner: It is a hypothetical example. Let us take it as a hypothetical example without referring to a specific one. If there were no constraints on the demolition of that property in terms of policy—for example it is not a listed building or it is a building which the local planning authority believe could be redeveloped and particularly redeveloped for community benefit, perhaps to provide new health benefits—English Partnerships would seek to do that with the PCTs, the Primary Care Trusts. We have examples within the 67 Trusts. Although we have an important role to play in creating many new homes, we do recognise, and we have many examples, where the schemes involve more than housing; they do involve in many cases new health facilities, community facilities, new walks and open spaces and in some cases new business opportunities. In Chester we do have a case which will help create jobs for local people and we are trying to create a scheme for planning policy that meets fully the community.

  Q170  Philip Davies: One issue that keeps coming up in all of the evidence we get is VAT and the cost of repairs to historic buildings. It came up with Manchester and Liverpool and again today. What do each of you think would be the implication for you and for the private sector of the VAT rate staying as it is at 17.5% or reduced to 5%? What do you see the implications of that decision being?

  Mr Spooner: The first thing to say is English Partnerships is involved in a number of projects which do seek to retain and convert property and to bring investment partners in to converting property where houses can be retained for the sake of the street scene, but where we are looking to expand and improve them. In those cases, we do feel we are operating with an additional cost base because of VAT which does not affect other schemes that involve new development. We concur with points made earlier by Manchester and Liverpool, the VAT implications of refurbishment are disadvantageous compared with the non-VAT implications of new build. Therefore anything that seeks to reduce the VAT implication of 18% to 5% on refurbished property would help to make schemes more viable and potentially reduce the public investment to make them work.

  Ms Emery: I can only agree with that. Similarly, we have been involved in investing in the restoration of buildings, and changes on the VAT would obviously help those sorts of proposals.

  Chairman: If my colleagues do not have any further questions, thank you very much.






 
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