Select Committee on Crossrail Bill Minutes of Evidence


Examination of Witnesses (Questions 17980 - 17999)

  17980. Thank you very much. First of all, perhaps we can have put up the exhibit which shows the precise relationship between the sewer and the redevelopment?[2] Can you explain why the existing piles have to be removed, or may have to be removed, and the new building might have to be slightly redesigned?

  (Mr Berryman) Yes, as I think has been given in evidence previously, the sewer diversion for the Ham and Wick sewers needs to go under this building. You can see here a plan of the intended development. You can see here there is a development of flats, a block here, a block here, and a link block between them with a courtyard around. We have chosen this location as it appears to be the area where it will be easiest to reconfigure the piles to allow the tunnel to pass through. I should say at this point, there are two problems: the existing piles which may or may not be there, and the future piles which will be provided to support this building. We will not know where the existing piles are until the demolition of the existing building takes place by virtue of the fact that we have no piling records for the site. If it appears that by minor tweaking of the alignments we can avoid having to remove the existing piles, then we will do that. As we said in our Petition response, we are happy to work with the Petitioner to achieve that objective. We will also work with them to help minimise the redesign of piles that they may have to do in order to accommodate the tunnel going underneath. I think we made both of those points, as I think counsel for the Petitioner has just mentioned in his opening remarks.

  17981. Is there any chance at all of redesigning the sewer so that there will be no impact on this building?

   (Mr Berryman) Unfortunately not. The building, as you can see, is quite a long site. It goes virtually all the way from Wick Lane down to the next road, Fairfield Road. The sewer has to go somewhere in that area to avoid our tunnels.

  17982. Are there other instances along the route where landowners have had to redesign buildings in order to accommodate Crossrail and have done so at their own expense?

   (Mr Berryman) Yes, there are a number of such buildings where that has been done. Perhaps the most notable is the Paddington Central development which is immediately to the west of Paddington Station. I know it is a different scale of project but the builder of that scheme spent a very substantial amount of money in providing transport structures so that our tunnels could pass underneath easily. Of course it is a very high-rise building so that was an expensive operation. There is another example in Farringdon Road where a building was redesigned to make allowance for the tunnels to pass underneath. These were for the main running tunnels rather than for the sewer.

  17983. Mr Bishop has mentioned, and members of Paddington Churches have mentioned at formal meetings, the potential cost of £300,000. Obviously the Committee are not here, and you are not a quantity surveyor, to assess the precise cost, but what would be your professional view of the likely order of magnitude of cost that we would be talking about here?
  (Mr Berryman) I would be quite surprised if it was over £100,000. I have been surprised many times in my career, of course, but based on another similar example of the Farringdon Road site, the cost then was roughly £70,000 for doing that. I would need a bit of convincing that £300,000 was the right figure.

  Cross-examined by Mr Bishop

  17984. Mr Bishop: I have one or two questions, Mr Berryman. Presumably, from what you say, discussions have not ended, but will be ongoing because, until you get below ground, you do not know what you are going to find?
  (Mr Berryman) Absolutely right, and we do have a certain amount of freedom of movement as to the exact location of the sewer. We cannot put it completely outside the development site, but we can move it to some extent to try and minimise the impact on your clients.

  17985. Do I understand you right when you suggest that you do not expect to find too much in the way of existing piling, but it is the newer, modern, deeper piling which is going to be of more significance?

   (Mr Berryman) No, that is probably not true. We think the existing building is piled, but we do not know exactly where the piles are, we do not know what kind of piles they are and we do not know how deep they are, so we can only establish that when the building has been demolished, and I understand your clients are about to start work on that demolition.

  17986. I mentioned the figure which had been given to me, the £300,000. Do you have any idea where that figure might have come from?

   (Mr Berryman) I am afraid I do not, no. I really cannot comment further on it without seeing a breakdown. At first sight, it seems quite high to me.

  17987. Leaving aside the question of the piling that has either got to be removed if it is old or put in particular places if it is new, are there any other significant design issues in relation to the foundations that are going to have to be taken into account?

   (Mr Berryman) No, I do not think there should be. This is a sewer, not a railway, so issues of noise and such like do not arise here. It is a small-diameter tunnel as well, so issues of settlement are also trivial. I do not think there are any other issues which need to be taken into account.

  17988. Have you any idea how long the situation is going to remain fluid, as it were, as to determining either what is going to have to be removed or where new pilings are going to have to be put in?

   (Mr Berryman) I think that will be determined by your clients. As soon as the building is demolished and we can see where the piles are, what we would want, and seek, to do is to work with them to get the best fit between minimising the cost of the new foundations and minimising the cost of taking old foundations out, if needed. We are trying to maintain, and I think succeeding in maintaining, a regular dialogue and we will continue to do that until the building work starts.

  17989. Just one final question, and perhaps a fundamental one: the cost of those works falls on Paddington Churches Housing Association, is that correct?

   (Mr Berryman) The cost of the pile removals and the piling, I am afraid it does, yes.

  17990. Mr Bishop: Yes, thank you.

  17991. Ms Lieven: I have no re-examination, sir.

  The witness withdrew

  17992. Ms Lieven: I shall proceed to my closing, sir, which, as always, is going to be brief. I think the first point to emphasise is that the project will seek to minimise the impact on this building, and Mr Berryman has just given evidence about that. We are fully committed to talking to Paddington Churches and doing whatever we can in terms of design of the sewer and helping them with the design of their piles in order to minimise the interface and to minimise, therefore, the cost. Sir, that is an ongoing process and it may be almost wholly successful and it may be that there are no existing piles and that the cost of redesign is really very minimal, but we will do everything we can to assist with that process.

  17993. Next, Mr Berryman's view, and it can only be a very general view at this time, is that the cost will not be nearly as high as that which Paddington Churches are concerned about, the £300,000, which is quite important in terms of the scale of what we are talking about, but I would also emphasise two points.

  17994. Firstly, if there is a cost, Mr Bishop told us that Paddington Churches Housing Association had bought this site, subject to planning permission, and that is extremely important in terms of financial impact because any professional valuer who advised them would have said that the value was diminished by having to comply with the conditions or was likely to be diminished and, therefore, the amount of money that Paddington Churches paid for this site would have taken into account the cost of complying with the conditions. Sir, instinctively, one has a good deal of sympathy with the idea that Paddington Churches, as a housing association, should not have to bear this cost, but if they were competently advised when they bought this property, given that they did so subject to planning permission, then they are not the ones bearing the cost; the people who bear the cost are the people who sold the land to them in the first place because the value would have been diminished. If the cost was not diminished, the price did not fall, then there must have been something wrong with the advice that Paddington Churches were getting, so I would suggest, sir, that that is a very important point in the underlying true merit of this case.

  17995. Secondly, sir, and probably equally importantly, there are a number of people up and down the line who have had to incur increased costs in order to comply with the Crossrail safeguarding. Now, of course one might say, "Well, the Housing Association are in a bit of a different position because they are a housing association", but, on the other hand, the developers of Paddington Central are probably going to have to spend hundreds of thousands, if not millions, to redesign and nobody is compensating them for that. Complying with safeguarding is not a matter that one gets compensation for in this type of situation. Paddington Central is this very, very big development at Paddington Station where huge blocks with piles will have had to have been slightly redesigned. Sir, it is by no means a unique situation and, in my submission, it comes back to the fact that the Compensation Code does not cover it and all our submissions in the past remain about that. Thank you, sir.

  17996. Mr Bishop: Sir, I think I have more or less shot my bolt at the outset, but, in reply to those points, I concede, as I did in opening, that we bought with the planning permission with the knowledge. I cannot say as to what financial adjustments or forecasts were made in that regard, and I have to concede that that must have been a factor and, if it was not, it should have been. I do not think we seek to hide that or back away from that, but my point is, looking at the way this is having to proceed and from what we hear from Mr Berryman, what we are presented with is an evolving situation and one which is not entirely predictable. As I said, we do not seek either particular sums of money or blank cheques. If one was seeking perhaps enormous costs in a court case, one might say that that should be the subject of a detailed assessment in due course, but we point, sir, to the fact that this an evolving situation with which we are confronted and in the final analysis we are in the hands of Crossrail as to what is acceptable and what has to be done or not. They will in a way set the budget for us to an extent and we can only ask, if it is found in due course that we face onerous obligations perhaps beyond what might reasonably have been expected, that some consideration can be given to recompensing the Association for that, given that it is particularly spending public money on providing social housing. Sir, I do not think I can assist the Committee any further.

  17997. Chairman: You may be able to assist the Committee in a slight way if you could go back to your clients and ask them whether, when they bought the site, they did actually get this advice because, if they did not get this advice, they should have, as you rightly pointed out, and, therefore, they would have a claim against their advisers, so that may be a possibility. It would be helpful for the Committee to know, therefore, whether or not you did get that advice at the time of the purchase and, if you could be in correspondence with the Clerk, that would be most helpful.

  17998. Mr Bishop: You are saying you would like a written response to that?

  17999. Chairman: Yes.


2   Crossrail Ref: P134, Ham and Wick Sewer Diversion in relation to Paddington Churches Housing Association (SCN-20070118-003). 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