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Proceeding contribution from Lord Berkeley (Labour) in the House of Lords on Thursday, 23 October 2008. It occurred during Committee of the Whole House (HL) and Debate on bill on Planning Bill.


Planning Bill

I shall to speak Amendment No. 438 in my name and that of the noble Lord, Lord Bradshaw, who has apologised for not being here. I am afraid that the amendment adds to the list of pleas for exemption from CIL—in my case, the railways. Some people might think that Network Rail is a charity; it is, in fact, a not-for-profit distribution company—in the private sector, according to the Treasury, although most of its money comes from government in one shape or form. I tabled the amendment before I read my noble friend’s Amendment No. 437A, and it rather looks as if developments of railway infrastructure will be exempt. I would be grateful if my noble friend confirmed that. However, that leaves stations. They are part of a regulated railway. Network Rail calculates that if it has to pay CIL on station developments, it will cost about £250 million a year. It may have to pay CIL, but it may be that the train operators, which have been given franchises by the Government, will have to pay Network Rail. One is likely to have a virtual circle of train operators bidding for franchises, not knowing how much CIL they will have to pay if they wish to propose upgrades to stations. There will be added risk and uncertainty. I suspect that it will end up with stations not being developed. What normally happens with many station developments is that local authorities contribute to them. We see that in many places around the country. We will go from a situation in which local authorities are contributing to rebuilding station buildings, better platforms or better car parks, to one in which they will tax Network Rail so that it will pay. One does not need a PhD to understand that the consequence will be that station developments will not happen. I hope that the Minister can give me some assurance on this because it is a classic case of the law of unintended consequences. I have one other question, which follows from Amendment No. 444A, tabled by the noble Lord, Lord Best. Can the Minister explain when, under Clause 208, Section 106 agreements apply and when CIL applies? The circumstances look vague. Is it possible for local authorities to apply both at the same time?


Secondary information

Type
Proceeding contribution
Reference
704 c1304-5 
Session
2007-08
Chamber / Committee
House of Lords chamber
Subjects
Compensation Appeals Charities Costs Housing Finance Fees and charges Land Greater London Infrastructure Exemptions Local government Navigation Planning permission Payments Planning Natural gas Railway stations Railways Mayor of London Network Rail Scotland Voluntary organisations Transport Social rented housing Taxation Rented housing Revenue and Customs Community infrastructure levy Norfolk and Suffolk Broads
Legislation
Planning Bill 2007-08
Link
View this Proceeding contribution on www.publications.parliament.uk