Examination of Witnesses (Questions 7080
- 7099)
7080. It may be helpful to the Committee if
I give you a brief background to the business of Antique Hypermarket
Limited, which is a business that may be unique along the intended
Crossrail line. The company has been operating Antique markets
at 58 Davies Street which trades as Grays Antique Market and 1-8
Davies Mews which trades as Grays in the Mews for about 30 years
and 28 years respectively. They are now well established as a
focus for the West End for the antique jewellery trade and for
other small high-value antique objets d'art. The antiques trade
is one of the few where likes attract—in other words, antique
dealers happily trade alongside each other in competition, which
is why Portobello Road, Kensington Church Street and places like
Broadway thrive as antique centres.
7081. As a leaseholder of these two buildings,
the company provides an umbrella under which well over 100 antique
dealers trade. The markets are open six days a week—unlike
so many others which are one or two day markets—and Grays
and Grays in the Mews are actually home not only to 100-plus antique
dealers but over 100 businesses. Of the two buildings, 58 Davies
Street is a prominently located Grade II listed landmarket building,
whereas 1-8 Davies Mews, which is also Grade II listed, is tucked
away in a mews location and is in a secondary or tertiary retail
location. The Mews is therefore entirely dependent on 58 Davies
Street for its survival. The company goes to great efforts to
encourage visitors to the obvious first port of call at 58 Davies
Street to walk round the block to also visit the Davies Mews property.
The Mews market could not survive on its own, as it would not
be able to draw sufficient numbers of the public to generate sufficient
trade.
7082. Fifty-eight Davies Street provides just
under 12,000 sq ft of trading space on ground floor and basement
levels and 1-8 Davies Mews just over 12,000 sq ft. So they are
substantial buildings. The company has created high quality trading
environments in both buildings. Each floor is divided into individual
stalls which are let out to dealers on licences which do not carry
the protection of the Landlord & Tenant Act 1954. There are
parts of the building which cannot be let out because areas need
to be provided for circulation space, walkways, common facilities
such as toilets and cafes etc.
7083. The licensees pay all-inclusive licence
fees to include the space they occupy and a proportion of the
cost of running the markets, such as light, heat, rates, repairs
and cleaning. Antique Hypermarket take responsibility for marketing
and promotion of the business, managing the markets, providing
cafes, toilets, secretarial services, telephones and, of course,
paying rents to Grosvenor and rates on the markets.
7084. The Crossrail proposals show that 58 Davies
Street and 1-8 `Davies Mews will each sit above the running tunnels
and platforms of the Bond Street Crossrail Station. In addition,
it is proposed that there will be an escalator shaft rising up
from the platforms to the new Bond Street Station to be built
on the site of the present building at 65 Davies Street which
will pass within 9 metres of the ground level of 58 Davies Street,
so it comes up from under the building.
7085. Antique Hypermarket have very real concerns
over what the construction works will cause to the business as
a result of road closures, part road closures, noise, dust, lorry
movements and the generally hostile environment in Davies Street
and Davies Mews during the construction period. Secondly, there
is potential for the new escalator to create a noise nuisance.
Thirdly, the total inadequacy of compensation payable under the
Compensation Code.
7086. Antique Hypermarket Limited's overriding
objectives are, firstly, to continue operating the antique markets
without interruption and with the least interference during the
construction period, and, secondly, to ensure that proper and
full compensation is paid for any disturbance, loss of profits
or goodwill caused by the works, either to the company or the
licensees. The first point, I think, we can now deal with because
of the proposal that has been made this afternoon to ensure that
the building is not acquired and that there will be no works that
are carried out in the basement other than inspection works.
7087. So it might be better to move on to construction.
It is likely that there will be considerable disruption both to
Davies Street and Davies Mews during the construction process
and to involve road closures, services diversions, half road width
closed off and boarded for the full period of the new station
being constructed. There will be numerous daily lorry movements,
there is bound to be noise and dust. I appreciate that construction
sites are now much better protected than they ever used to be
but there is bound to be some escape. In short, we are concerned
that Davies Street and Davies Mews will be a hostile environmental
over a long period of time and not the sort of environment in
which to carry out a high end retail business, in which we are
attractive to customers and pedestrians.
7088. The company also has concerns about the
potential of ongoing noise from the operation of the new escalator
being constructed under 58 Davies Street, which could be only
five to six metres below the basement level of the antique market
at 58 Davies Street. Although Antique Hypermarket Limited's use
is less sensitive than many other uses such as recording studios,
clearly the continuous background noise from an operating escalator
could be an annoyance to occupiers. I do not have the details,
obviously, of the likely impact but we would ask that this nuisance
is eliminated through proper sound attenuation.
7089. The Committee heard at length yesterday
from Mr Norman Winbourne on behalf of the Residents' Society of
Mayfair and St James' on the issue of compensation. The objection
to the Compensation Code expressed by Mr Winbourne are similar
to those held by Antique Hypermakret Limited, and I do not propose
to take up the Committee's time by reciting those objections again.
In any event, I am not a compensation expert. However, I do want
to stress that we consider the Compensation Code will be inadequate
for properly compensating Antique Hypermarket Limited.
7090. In this case it is not anticipated that
any land will be taken, yet the works to carry out the construction
of Crossrail could have a substantial impact on the Antique Hypermarket
business and also the businesses of the many antique dealers occupying
the stalls within the market. In addition to the noise, dust and
disruption caused as a result of the construction process, access
to the properties could be severely restricted, which will impact
on the visitor numbers to the markets. This in turn could affect
the short-term viability of the antique markets. There could be
a reduction in profits of the businesses of Antique Hypermarket
Limited, albeit temporary.
7091. Antique dealers are a fickle lot and because
they can get up and walk at short notice, if the environment in
Davies Street and Davies Mews becomes too unpleasant they might
just do that. If that does happen then the whole viability of
the business could be put at risk, albeit this might be only temporary.
The company will still have to pay rent to Grosvenor and pay other
overheads. It may suffer a reduced income. The company is entirely
dependent on licence fee income for its survival. Proper provision
needs to be made for compensation payable in this event.
7092. Secondly, there is the impact on the licensees
themselves. As I understand it, under the Compensation Code the
licensees can only benefit from very little compensation because
they are not leaseholders and, therefore, do not have the interest
in the land. There is no provision to cover damage caused to the
businesses due to the construction of Crossrail and there is little
opportunity either for the stall holders to relocate to other
premises. There is no other market in central London where they
could go to. We would ask that the licensees are also properly
compensated as if they were businesses. Many have been in the
antique markets for 30 years, or getting on for 30 years, and
they therefore should be treated as being landholders rather than
licensees. That is my evidence.
7093. Chairman: Mr Mould, do you want
to respond?
7094. Mr Mould: Sir, I will just respond
briefly to deal with one or two points. First of all, in relation
to the last point, that is to say the question of compensation,
we have made the submission to you on a number of occasions that
it is appropriate that the ordinary provisions of what we have
called the national compensation code should apply to Crossrail,
and that of course is the point the Committee is considering as
part of its deliberations in relation to this and a number of
other Petitions. So there is no reason in relation to this Petitioner,
or indeed any of the others that you have heard thus far, to make
any special arrangements in relation to the application of the
code.
7095. As you know, as far as noise, dust and
other disturbances are concerned, the law proceeds on the position
that those who undertake public works of this kind should do so
with all reasonable care in carrying out the works, whether that
duty arises in common law not to cause a nuisance or in relation
to the compensation code. That requirement is, we would submit,
properly and fully reflected in the approach that we have indicated
to the Committee we are committed to take in relation to the construction
of Crossrail, and you have had evidence before as to the comprehensive
provisions of the construction code and the measures within and
without the Bill for the control of environmental impacts and
the broad proposition, so far as reasonably practicable, to minimise
and reduce the environmental impacts of those who are affected
by construction works of the project. That applies with no less
force to the construction of the Western Ticket Hall at Bond Street
as it does in relation to any other of the major works that exist
and are proposed along the route.
7096. Turning to specifics, briefly: as far
as dust is concerned, the Committee will recall that the approach
taken in the environmental assessment has been to consider the
risk of dust emissions from sites on receptors in the vicinity
and to grade the severity of that risk in a series of tiers, the
highest and most severe being tier 3. Insofar as the Davies Street
worksite and for the purposes of the Bond Street Western Ticket
Hall is concerned, that is a site that has been identified as
a tier 3 category site. That is one with a high risk of dust emissions,
and I remind you that the construction code, paragraph 6.3.8 states
that where a site has been identified as having a high risk of
dust emissions due to the proximity of receptors, the type of
activity on site for the duration of the operation, then the highest
standard of dust control reasonably achievable will be adopted
and then some indication is given of the techniques that may be
employed in order to bring about that approach, and this includes
possible monitoring, management of dust emissions and things such
as total enclosures and so on. You have heard evidence in relation
to this in relation to Smithfield, amongst other cases.
7097. It is not at this stage appropriate to
go into detail as to what design process might be decided as the
appropriate mechanism or package of measures here, but that is
the approach taken in the construction code and that is the appropriate
tier that has been identified in the Environmental Statement for
the Davies Street west worksite.
7098. So far as noise is concerned, we have
emphasised to you that the Bill does not seek to affect the operation
of the controls vested in local authorities under the Control
of Pollution Act for the control of construction noise and vibration,
section 16.61 of that Act. You are aware of that and there is
a direct regulatory process which local authorities operate in
relation to noise, as here, working on the construction site.
7099. So far as environmental assessment is
concerned, this is a site which has been identified in the Environmental
Statement as one where the range of mitigation measures set out
in Section D1 of the statement will be applied, including the
erection of a 3.6 metre-high hoarding around worksites and the
housing of pumps of compressors in enclosures , so works are identified
to control and mitigate the noise emissions of that source in
relation to this site.
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