My Lords, before moving this amendment, I hope that the House will not mind if I, too, express my shock at the news about the noble Lord, Lord Kennedy of Southwark. Not only by his charm and skill at the Dispatch Box has he won our affections but, as leader of a London authority—I declare that I am, too—I know that he is respected in local government across London. I hope that other noble Lords will convey to him what I know will be the best wishes of every London borough leader for a speedy recovery.
In introducing this amendment, I make it clear that I do not wish to press it in its present form. It is a probing amendment. I said earlier in these proceedings that it is in some ways a provocative amendment. I would not press it as there is a risk that it might make the Bill hybrid, among other things, but also because the solution will not be the solution proposed in this amendment. However, I believe that the issue needs to be aired. I know that it has not pleased the Lee Valley authority; because its lobbying efforts are poorly directed, I have quite a little dossier of material that it has sent out to various people asking for the status quo to be defended.
The Lee Valley Regional Park Authority runs what is a 26-mile long linear park running from Ware in Hertfordshire to the East India Dock. It was set up under legislation passed in 1966 and started in 1967. That is, frankly, another world—remember England as World Cup winners, Harold Wilson at No. 10 and the young Leonid Brezhnev thrusting his way forward in the Soviet Union. Since then, in those 50 years, a lot has changed. The area has been transformed by the staging of the 2012 Olympics and from those Olympics the Lee Valley authority received a legacy of the Olympic velopark, the only site in the world that brings together all four Olympic cycling disciplines. It was lately the site of the world’s cycling championships, which I saw reported to have been before sell-out crowds with a global television audience—a venue claimed on the LVA’s own website to be,
“a jaw-dropping events space … in the super league of London’s … venues”.
It has the Lee Valley Hockey and Tennis Centre, another Olympic facility, which will stage the Women’s Hockey Champions Trophy in June with finals-day tickets priced up to £62.50 a throw—they have already sold out—and with indoor tennis courts at £20 an hour off peak. It has the Lee Valley White Water Centre, another Olympic venue, offering corporate half-days at a minimum of £164 per person and the self-proclaimed state-of-the-art Lee Valley Athletics Centre. There is the Lee Valley Ice Centre, home to two ice hockey teams, and the Lee Valley Riding Centre, with stables offering full five-star livery services for £10,000 a year—not exactly a service for London’s poor. There are two golf courses, two boating marinas, two large camp and caravan sites, six heritage sites, a sports ground complex, seven parks and wetland sites and 1,400 hectares of land and water resources. In addition, the authority runs two farms which the accounts say feature £250,000 of “biological assets”—dairy cattle to you and me. I am surprised that the TaxPayers’ Alliance has not cottoned on to that one.
According to the 2014-15 accounts, not one of those assets made a profit, apart from a princely £17,000 from the Lee Valley Boat Centre. Even netting out the £1.9 million cost of leisure management services and ignoring the losses on tourism services reported in the accounts, these facilities cost £35 million to run for a gross income of under £12.5 million. The authority had eight staff with packages of over £100,000 a year and a director of communications paid some £73,000, who, it seems, lifts the phone to the lobbying firm some of us have heard of, London Communications Agency, whose fee I cannot find disclosed in the accounts, although I note from its own website that the agency’s chairman boasts Lee Valley among the prized accounts that he handles personally, along with Chelsea Football Club. I doubt whether London’s council tax payers get that PR service cheaply. In short, here is a large public sector body sitting on immense resources and losing money on them. There is no reason to think that any of these vital sporting and environmental assets would be threatened by reducing or ending the LVA planning rule or by better or changed management or a plan to bring the thing into balance.
The fact is that were these prize assets subject to any other public local authority, we would be expected by the Front Bench and taxpayers alike to be looking
for a way to balance the books fast by outsourcing, raising income or cutting costs. It defies belief that such a massive and diverse portfolio as I have described needs a huge public subsidy. Instead, because the LVA has a residual planning function and a legal right in carrying out its park and planning duties to precept 32 London boroughs and councils in the counties of Essex and Hertfordshire, including Thurrock Council, it has a captive subsidy and therefore relatively little incentive to be efficient. It simply posts a bill to taxpayers, often an hour or two away from its facilities, to pay for half of all its activities—£10.8 million in precept. Formal break-even targets are vaguely spoken about but are far away.
Looking at some of the typical levies, Bexley’s levy of £230,000 would not cover the authority’s advertising budget and Kingston’s levy would not cover the cost of its chief executive’s pay package. There is no relation between the levy and performance, benefit or usage. It is simply a tax—taxation without representation—for many London authorities that pay the lion’s share, have few visitors to the park and no representation on the board, while other districts that pay nothing do. My amendment would introduce accountability by ensuring that the Lee Valley Regional Park Authority had to prove its worth and competence in order to win payments from willing, not captive, councils. It asks that a proposal to support the Lee Valley Regional Park Authority be put on the same basis as any other budget proposal put before a council.
I recognise, as do all those authorities unhappy with this archaic system—and I have been encouraged by many other London local authorities and Essex County Council—that in the real world that is unrealistic. However, it reflects a legitimate end-result aspiration, so by raising this issue I ask instead that we might look at reform. I hope that my noble friend may be prepared to consider addressing this issue and launching a swift consultation with the Lee Valley Regional Park Authority and all others concerned to find a better and more equitable way forward to ensure financial stability, phase out the subsidy from the precepted planning authorities and safeguard the regional park’s assets. It has to be unwound in a way that protects the existing precepting authorities and does not leave the riparian authorities on their own paying for it. At a minimum, we might seek a taper of the precept leading to abolition, perhaps over a four-year period in line with the four-year settlements being sought.
There may be many ways in which we can achieve that. We need to understand why the authority loses so much on so many facilities, why more income per head is not raised and why we cannot work better. Above all, this archaic precept, which may once have served well, needs to be addressed and progressively removed to bring a worthy 20th-century authority into the modern world to manage effectively and to preserve the important 21st-century facilities that it has in its charge. I beg to move.