Select Committee on Crossrail Bill Minutes of Evidence


Examination of Witnesses (Questions 240 - 259)

  240. The reason I say that is because they are not planning to propose a new ticket hall at the Liverpool Street end of Livergate but they are proposing to, to put it crudely, knock a hole in the wall of the existing ticket hall and direct passengers into that existing ticket hall, ticket hall B.

  241. The planning, transport and economic policies promoted by the Mayor of London are also designed to maintain the continued attractiveness of London to world business with a phased supply of appropriate floorspace for international business activities and the specialist services that supply them.

  242. The importance of Crossrail is acknowledged in the Mayor's transport strategy and of particular importance to this case which your Committee is considering the link between the Crossrail project and future growth opportunities is identified. It is noted that Liverpool Street is close to the key development opportunity at Bishopsgate Goods Yard.

  243. If Crossrail is to achieve its objectives, it is vital that it provides the necessary transport infrastructure to serve the offices which are needed to facilitate the growth in the financial and business services sector which is in turn essential to the maintenance of London's world city role and its continued substantial contribution to the health of the UK economy.

  244. These planning policies are not just promoted by the Corporation of London and neighbouring authorities; they are promoted by the Mayor of London. They indicate where growth in employment needed to sustain London's role and to provide jobs for its residents is to take place. Businesses such as British Land that provide office accommodation for the international financial and business service sector users rely on those policies in making investment decisions, as one would hope and expect. If Crossrail is to achieve the stated objectives it is essential that it provides the capacity to serve the development that is envisaged by the policies. The Mayor of London's policies envisage considerable additional employment growth in London for 2016. Of the 636,000 additional jobs anticipated in the period between 2001 and 2016, it is expected that the financial and business service sector will contribute 463,000. The London Plan, in planning for that growth, assumes that 93,000 jobs will be added in the City of London by 2016. In addition the London Plan identifies two significant opportunity areas adjacent to the City at Bishopsgate/South Shoreditch, where it anticipates 16,000 jobs and 800 homes by 2016 and Whitechapel/Aldgate at 14,000 jobs and 700 homes by 2016.

  245. You will ask why do we need to know these precise figures. In due course you will hear evidence as to the location of those areas and their proximity to Liverpool Street. That is the relevance. The City of London's unitary development plan seeks to promote the City as the world's leading international financial and business centre. The plan identifies Bishopsgate/Spitalfields as a major development opportunity. It also identifies an eastern cluster of high buildings and it sets a policy framework which envisages further tall buildings where they would enhance the City's skyline.

  246. That eastern cluster, you will hear, is closer to the Liverpool Street end of the proposed station than it is to Moorgate. That is of significance. The job growth in the eastern cluster is expected to take place closer to Liverpool Street than Moorgate.

  247. The Corporation estimates that the pipeline of permitted developments and other identified sites could add over two million square metres of gross office floorspace by 2016 which is likely to be sufficient to accommodate the 93,000 additional jobs envisaged by the Mayor. It is not only the City that is planning for this growth. The neighbouring boroughs of Islington, Hackney and Tower Hamlets also envisage office and business related development in the area surrounding the City, the City fringe.

  248. It is not only planning policy which envisages this growth, but it is happening. The existing office stock in the City is 7,540,000 square metres as of June 2005. There are 412,000 square metres of offices under construction and an additional 1,049,000 square metres has the benefit of planning permission, but construction has not started. On top of that, sites under discussion have further potential for an additional 280,000 square metres of office floorspace.

  249. Analysis of employment distribution in the City of London—not taking account of employment distribution in the City fringe—within 800 metres of Moorgate and Liverpool Street Stations indicates that the bulk of existing employment floorspace is closer to Liverpool Street Station than to Moorgate. The relative proportions are 39% closer to Moorgate and 61% closer to Liverpool Street.

  250. To illustrate that, you should have a bundle of documents, a blue bundle with the City of London's logo on the front.[4] If you go to tab nine, you will see this point illustrated. You will find the figures that I have just mentioned in the first bar. You will see that two circles have been drawn showing an 800 metre radius from Moorgate Station and Liverpool Street, a line drawn down the middle where they meet. You will see that the area outside the City of London is shown white but you will know that it is not green fields but intensive development.


  251. For the purpose of this exercise, it is just the City floorspace that is looked at. These are 2003 figures. You have the 39% closer to Moorgate and 61%. The permitted shows similar proportions and under discussion again it is all biased in favour of Liverpool Street. The City fringe is not based on the plan on the left.

  252. Sir Peter Soulsby: Can you explain why 800 metres and why the area outside the boundary is drawn as envisaged?

  253. Mr Cameron: 800 metres is given as a convenient walking distance. We also have figures of 400 and 600 metres. The 800 metres is the distance people might be expected to walk from a station to a place of work. The answer to the other question is because we have access to detailed employment figures for the City. We do not have access to detailed employment figures for the areas outside the City. That is why this table has been produced in this form.

  254. Sir Peter Soulsby: Surely for us to make a realistic assessment of the situation we do need to see the wider picture.

  255. Mr Cameron: Yes, sir, and during the course of the evidence I anticipate you will do. This is just a graphical illustration based on the best information available because the City has detailed employment figures for areas within the City. We have not ignored outside the City, this is just an illustration on the basis of the best figures we have, but we will come back to the City fringe.

  256. Turning to paragraph 41, significant tall or large buildings which are being proposed in the vicinity of Bishopsgate would be more accessible from Liverpool Street Station than from Moorgate. Buildings with planning permission include 51 Lime Street, the Heron Tower, 201 Bishopsgate, 122 Leadenhall Street, the Minerva Building and the former Stock Exchange.

  257. British Land owns a significant quantity of offices in the City of London and elsewhere. They have significant experience of making development decisions and of tenant requirements. Tenant requirements are of particular importance as they have a significant bearing on the ability to let or relet premises. Consequently, developers are unlikely to provide buildings to accommodate growth in the financial and business services sector unless those buildings meet tenant requirements. It is British Land's experience that a key factor in the continuing appeal of their Broadgate development is its proximity to public transport facilities. One of the first considerations for a city business considering relocation is how the change of premises will affect their existing staff's commuting patterns. The ability of existing staff in locations such as Broadgate to access Liverpool Street Station is an important factor for tenants occupying that space. Similar considerations are likely to apply to tenants considering occupying space in offices developed in the Bishopsgate/South Shoreditch area of opportunity and the eastern cluster of tall buildings. Unless landlords are able to offer buildings with good public transport access they are unlikely to be able to provide the new office space required to facilitate job growth in the financial and business services sector.

  258. The Promoter's decision, late in the day, to alter the project by removing the proposed eastern ticket hall at Liverpool Street Station will undermine Crossrail's ability to provide the enhanced public transport capacity required to serve the growth in financial and business services employment in the vicinity of Liverpool Street Station and thereby jeopardise the proposals for growth set out in the planning policy documents and, as a result, both undermine London's ability to meet the challenge posed by international competition. Sir, on that part I hand back to Mr Laurence.

  259. Mr Laurence: Thank you for that. It follows from everything that Mr Cameron has been saying and what I said before that, as frequently happens between the best of friends, something of a squabble—really, quite a serious one—has broken out. Fortunately, your Committee is here to help resolve it. I am here on behalf of the Corporation to call two main witnesses to explain why there must be a proper ETH at Liverpool Street Station for Crossrail passengers. They are Mr Peter Rees, who Mr Cameron will call first, and Mr Joe Weiss, who I will then call, each hugely experienced in his field. I do not intend, as was once common in proceedings such as these, to steal their thunder by summarising any further their evidence before they have actually given it. It is enough for me to tell you, sir, what the Corporation says should be your attitude while you consider that evidence. But before I do that I would wish to say something more about the position of British Land.


4   Committee Ref: A2, Exhibits produced by the City of London. Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2007
Prepared 14 November 2007