Transport for London Bill [Lords] — House of Commons, 2016-04-12
Topic: Transportation
Daniel Stephen Zeichner (Labour, Centre-left): That is a fine distinction. Most of us understand that the reason we pay our taxes is for exactly the kind of high quality transport system that a capital city such as London needs, and it is a huge risk that this Government are taking. The Government are forcing TfL to limit the damage, and they are using ingenious means and utilising existing assets to do so. The Budget indicates that there will be a move towards the full retention of business rates by local authorities, and we welcome the ability of local councils to have control over funding, but this is uncharted territory and we should be in no doubt about the risks to our transport system in London—risks that are a direct consequence of the political choices of this Government We want TfL to be modernised and to become a highly efficient public sector organisation. TfL has been making savings, some very difficult and controversial, but in its annual budget in 2014, TfL said that it is "becoming progressively more difficult to achieve this without compromising our core services." This pattern of cuts is visible not just in the capital, but across the country. Cuts to local authority budgets have been extreme, leading the Local Government Association to point out that even if councils stopped filling in potholes, maintaining parks, closed all children’s centres, libraries, museums, leisure centres and turned off every street light they would not have saved enough money to plug the financial black hole they face by 2020. Department for Transport resource funding has been cut by 37%, from £2.6 billion in 2015-16 to £1.8 billion in 2019-20, representing a real terms decline of 71% since 2009-10 Let us consider the fact that last year a record 8.6 million people were living in London. By 2030, that figure is predicted to reach 10 million. That is the pressure under which TfL finds itself. We are not ideologically opposed to TfL’s maximising the value of its assets to increase the revenue seized by the Treasury. They do what they have to do, and using resources efficiently is important to keep our capital city running. On Second Reading, my hon. Friends and I expressed concern about certain measures in the Bill, including clause 5, which we have discussed. We are happy with the principle and understand the necessity of TfL’s having greater commercial freedoms, but the implications of those so-called freedoms were problematic. The controversial Earls Court development, a joint venture between TfL and the private developer Capital & Counties, set a worrying precedent for further public-private partnerships. Clause 5 would allow TfL to enter into limited partnerships with private property developers. Those partnerships are vague in legality and opaque in accountability I said on Second Reading that we must consider carefully the long-term impact of introducing powers to enter into those partnerships. We are reassured both by the fact that TfL has noted those concerns and by its decision to table amendments to remove clause 5 and references to limited partnerships from the Bill. It is encouraging that our opposition to that problematic part of the Bill was taken into account, and we are pleased with the outcome I also spoke on Second Reading about the importance of putting public needs above private profit. Property development to increase TfL’s revenue must not happen without the backing of local communities—those who are affected most directly. Those who bankroll projects should not subsequently be able to steamroller over local people. TfL is obliged to obtain the consent of the Mayor to dispose of an interest in land by sale or by granting a long-term lease. If that land is operational or has been in the previous five years, the Secretary of State for Transport must give his or her consent. It must be noted, however, that that did not prevent the unhappy saga around the developments at Earls Court from unfolding. The balance between the provision of affordable homes on the one hand, and maximising revenue to reinvest in transport, is an extremely significant and fine political judgment. We will be watching closely to ensure that proper balance is secured In conclusion, as clause 5 has been shelved, I think we are all hopeful that TfL can now move forward. We are keen to see how TfL uses its commercial freedoms to develop and improve the transport network that keeps our great capital city moving, but we will be watching closely to ensure that profit is used to benefit the public, and not the other way round