Select Committee on Crossrail Bill Minutes of Evidence


Examination of Witnesses (Questions 21460 - 21479)

  21460. The Committee may remember there were two options being floated the last time we met and we have decided to go with the cofferdam option. It does not require an additional provision because it falls within our limits of deviation, but it does require to be assessed environmentally which is why there is a supplementary Environmental Statement. The solution which we are setting out here has been discussed in detail with the boat owners and the position we have arrived at is that navigable access consistent with that currently existing will be maintained during the construction of Crossrail at Isle of Dogs subject to possible temporary restrictions during the construction of the cofferdam. What we mean by those last words has been set out to Poplar Dock and Blackwall Basin residents in a letter dated 18 June 2007. In essence, we are talking about a period of about three months when there may be some restrictions. They will be able to get in and out but not all of the time, wholly unrestricted.

  21461. In terms of the size of vessels, what we have agreed is that the position of the cofferdam will be such that the largest vessels currently in Popular Dock and Blackwall Basin can safely navigate the channel. We are working with both BWB and the Dock residents to achieve that result. In the light of that work, and the discussions with the boat owners, they have indicated that they are content not to appear in Committee. You may remember they were adjourned last time, so they had the right to come back even if they did not petition again, but they have indicated that they are happy with the position. Hopefully that is a happy end to that particular problem. Sir, that is all I intend to do in opening, so unless the Committee have any questions at this stage, I was going to hand over to Mr Mould to open specifically on AMP.

  21462. Mr Mould: We have up the map showing the position of the station box and the position of the premises at Woolwich, which Ms Lieven was showing you a few moments ago.[9] AMP Limited and Mr Charlesworth are long leaseholders and business occupiers of the building at number 16 Gunnery Terrace, Woolwich. The footprint of that building is shown here outlined in red. You can see on the southern side it has a little nib coming out beyond the elevation there and we will see in a photograph in a moment that is part of the building occupied by the Petitioners. We have here the outline of the station box which Ms Lieven showed you a few moments ago. As you have been told, that represents the outline of the box that is proposed under the additional provisions before the Committee. The construction arrangements for that box are essentially a cut and cover proposal, so it follows that anything that lies on or over that box at the present time will perforce be called to be demolished and removed to enable the box to be dug.


  21463. As you can see straightaway, that would include a portion of the Petitioner's building at 16 Gunnery Terrace. The simple proposition is that the Petitioner's building and land is needed for the purpose of constructing the proposed station for Woolwich, for Crossrail. I will not repeat what has been said by Ms Lieven as regards the constraints which have led to the box being located where it is and the proposed line of the railway as it passes through this location, she mentioned to you a number of constraints which serve to govern what is proposed, both in terms of horizontal alignment and in terms of vertical alignment. Those are important points to bear in mind.

  21464. If we turn to Exhibit 007, please, just to see a photograph of what you have just seen on the plan.[10] This is the AMP building and, as I mentioned, this is the element of the AMP building at 16 Gunnery Terrace which just comes slightly to the south of the main building line and roughly the area that is required to be demolished for the purposes of digging the station box includes this building and the portion of the main building to about this point here. In physical terms, that is what is required to enable the box to be constructed. What we propose then is the compulsory acquisition of AMP's land at 16 Gunnery Terrace. The demolition of the building is for the purposes of constructing the station box and the integral ventilation and escape shafts, the use of the balance of the Petitioner's land, that is to say, the remainder of the building which will be demolished as part of a larger worksite to serve the construction of the Woolwich Station.


  21465. If you could put up 004, please.[11] Here you see in yellow the station box. Here is broadly the footprint of the Petitioner's building and as you can see a larger worksite extending to the north is proposed including, amongst other things, the provision of a batching plant and fabrication yard. We have shown the worksite as extending around the whole of the box work area with indicative arrangements for activities and so forth. I shall not take further time to describe the various elements, but that information is before you. AMP occupy their building as their headquarters for their mail distribution and storage business and it is plain that our proposals will require them to relocate to alternative premises. We recognise three matters in relation to that requirement: firstly, that they should be given as much advanced notice as is reasonably possible to enable them to plan relocation. We have already committed to them that we will give them 12 months' advanced notice of entry on to their premises.


  21466. The second point is we recognise that they should have assistance with relocation and we have already explained to you in earlier hearings that we have a policy to set up an agency in relation to that to assist commercial occupiers who are displaced as a result of the Crossrail proposals, and we have in this case already sought information from AMP on their requirements for relocation. There has been correspondence in relation to that.

  21467. Thirdly, they will be entitled to land compensation which will embrace both the full market value of their leasehold premises but also the reimbursement of their reasonable costs incurred in relocating their business to another location which will be recoverable as disturbance compensation. Not all of the Petitioner's land is likely to be required for Crossrail on a permanent basis and the surplus land, which will essentially be a part of the balance of their site which is required for a worksite, surplus land at 16 Gunnery Terrace, will be dealt with following the completion of the construction phase in accordance with the Secretary of State's adopted Land Disposal Policy. In due course, I will ask Mr Smith to give evidence to explain to you how that would work in a little more detail so far as is necessary to enable you to complete your hearing of this Petition.

  21468. Finally, the Petitioner's land had been within the safeguarding for Crossrail Woolwich since 2005. Under the Hybrid Bill scheme it was proposed that there should be a vent shaft at the south-eastern end of the Arsenal Way car park. If we could put up plan SE5(i), please.[12] This shows the arrangements under the now superseded Hybrid Bill. Here is AMP's building again, here is Arsenal Way. Under the Hybrid Bill there was a proposal for a vent shaft at this location and that would have affected AMP's land by virtue of not only the location of the shaft but also the worksite arrangements associated with it. Under Additional Provisions 3 the shaft was proposed to be moved to the east, this location shown by the red dot and the worksite shifted at the same time so that it fell within the car parking and open space associated with this block here, which is the IO Centre. You may recall Ferrotec, they are the occupiers of that centre. Essentially, the purpose of that change under AP3 was to enable AMP to remain in their premises throughout the then current proposals for Crossrail at Woolwich. That arrangement was the subject of an agreement in principle with the Petitioners through their agents in May of last year, that is to say, well in advance of this Committee's interim decisions in July which led ultimately to the Secretary of State promoting the Woolwich Station arrangements which we now see before you. It follows that it is essentially the promotion of the proposed station at Woolwich under AP4 in response to your Committee's interim decisions which leads to the position we are now in whereby, as we have explained, we require AMP's building to displace from their current premises in order to enable Crossrail in its current form to proceed. The reason I mention that in opening and just set out the factual position is because I anticipate that one of the points which Mr Jones, who is acting for AMP, will raise before you in a moment is a question as to costs and I want to set out the basic history, the chronology in relation to the proceedings.


  21469. Chairman: Essentially you are saying it is our fault!

  21470. Mr Mould: I am not saying it is your fault. I am not seeking to attribute blame; I am simply explaining the chronology. Both yourself and the Secretary of State, as is well known, have reached a sensible meeting of minds in relation to Woolwich and today's proceedings very much reflect that. That is all I propose to say by way of opening. I shall pass over to Mr Jones.

  21471. Mr Jones: Mr Mould has given me the pointer, but I cannot guarantee to the Committee that I am going to be as au fait as Ms Lieven and Mr Mould!

  21472. Chairman: I always find it slightly amazing that you are all on very good salaries but you never can afford more than one pointer!

  21473. Mr Mould: We have to account for our own expenses and keep the taxman happy!

  The Petition of Citipost AMP Limited.

  Mr Gregory Jones appeared on behalf of the Petitioners.

  21474. Mr Jones: We are trying to be sustainable in recycling! Could I say, I am not going to open at all in length, other than just to headline the issues, partly foreshadowed by Mr Mould and then for Mr Danny Charlesworth to give evidence. Could I say that so far as my clients are concerned, we are not in the business of attributing blame to either the Secretary of State or to this Committee, that is for others to decide. One thing I think we can agree is we are not to blame for the circumstances in which my client finds himself. As Mr Mould rightly foreshadowed in correspondence, my client has been co-operative as a Petitioner to the AP3 scheme. Right from pretty much the start it indicated to the Promoters that it was not necessary to put a shaft in the middle of our service area so that we were forced to relocate our headquarters. We employed legal, engineering and other consultants and we were successful in discussions with the Promoter in persuading the Promoter, if you like, of the error of their ways. The Promoter agreed that the matter could be dealt with by way of an undertaking and that would have been it. The position is we now face relocation. My client does not oppose the scheme, my client sees the benefits for the area where most of our employers come from, it does not oppose the scheme, but we do say that those costs have been incurred and the question for this Committee is where fairly should they fall? Should it fall on my client, someone who is losing their land, having to be relocated and then rubbing salt in the wound, we have got to pay costs by being co-operative, doing everything that this Committee and the Secretary of State would like us to do and the costs fall with us. We say, and there can be no dispute about this, in my submission, that that would be unfair.

  21475. It is also right to note, as Ms Lieven indicated in opening, the reason why we lose our site, quite justified from the point of view of the Promoter, is that it is going to save costs to the Promoter, do a cut and fill job for the station. Another alignment for a deeper station would have avoided the need for taking our site. We are not suggesting that that is an alternative which should be taken, no doubt the cost/benefit justifies that, but given that that is a saving of a considerable degree to the Secretary of State, we are suffering the burden of having to move our business as a result of that cost. We then have the position of who should then bear the costs thrown away on AP3 and we say that should also be the Promoter's cost since in any event, as it so happens, by following this scheme and taking our land, it is actually saving a considerable amount of money. That is one point that we will be raising for the Committee's consideration.

  21476. The second point really flows and can be sub-divided, and that is this: we do ask that the land, which, as Mr Mould indicated, is not required permanently, be retained within our ownership or that we be given a freestanding option to repurchase it back it at market value. My client is prepared to enter into any appropriate lease or licence arrangement so as to allow the Promoters full access to that land to do with as they wish for site construction.

  21477. The Promoter says there is no agreement with Berkeley Homes for the land to the east of Arsenal Way. We may explore that a little bit further to see what stage that has reached. There is no suggestion by the Promoter that the development of the remainder of our land is necessary to fund the Woolwich Station. That is not part of the case.

  21478. In closing, I will deal with the principles of compulsory purchase, which I think are trite law, but one should not use a Draconian power to compulsorily purchase more than is absolutely necessary for the public purpose. That means not just geographically but the type of interest you are acquiring: freehold rather than leasehold. Then we would say, first of all, that we are prepared to offer a leasehold or a licence, and if the business case was being promoted that that land was needed for some ulterior purpose then that should be transparently put before the Committee, and it has not been. In the alternative, we would also ask that we be given an option to purchase back and not in accordance with the land disposal policy of the Secretary of State, which you have probably had cause to look at before—I do not know—but which does not provide the guarantee of an option to purchase back at market value.

  21479. Can I say the second sub-point very briefly? The reason we have such concern for the retention of our land, and an interest in that—either by way of option or licence—is, to be quite frank, we are very unsure how committed the Promoters are to seeing through the Woolwich scheme and the Woolwich station. We are reinforced in that view by today, which is the first time we have been privy to the undertaking that has just been produced today; we have not seen any sign of that, which is rather surprising. I see it is dated 10 July. That undertaking, again, reflects the uncertainty which one finds in the Environmental Statement as to the commitment by the Promoters to do anything else than, via Berkeley Homes (that well-known station builder) to provide a shell of a station. We believe there is a very real risk, as envisaged in the Environmental Statement, as envisaged by the undertaking, and also the agreement which I will be making some submissions on (Ms Lieven referred to the heads of terms agreement signed in March which expresses that it was due to be completed by May and is still not completed), that there can be certainty that the scheme will go ahead.


9   Crossrail Ref: P159, Woolwich Station-Position of a Station Box and Petitioner's Premises (GRCHLB-AP4-6-04-005). Back

10   Crossrail Ref: P159, Woolwich Station-16 Gunnery Terrace from the south end of Cornwallis Road (GRCHLB-AP4-6-04-007). Back

11   Crossrail Ref: P159, Crossrail Woolwich Station-Worksite Arrangements (GRCHLB-AP4-6-04-004). Back

12   Crossrail Supplementary Environmental Statement (SES4), Map SE5(i), Woolwich Station, Amendment of Provisions-Original Scheme and Context Plan (LINEWD-AP4A-009). Back


 
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