My Lords, I knew there was a reason why I was looking forward to this one. I would be very grateful if the noble Earl, Lord Lytton, could send me the article about party walls; I am sure that all noble Lords would very much appreciate reading it.
On the Motion to remove Schedule 23, rather than address each of the noble Earl’s points in detail, as I do not feel properly qualified to do that, I shall put forward the Government’s reasons why the schedule should stand part of the Bill. We agree with him that the Party Wall etc. Act 1996 works in most circumstances. However, for major railway projects authorised by Parliament, it is appropriate to modify its provisions to streamline its processes, but also retain its protections for neighbouring owners. This was the approach taken by Parliament for the phase 1 Act and the Crossrail Act 2008, and it is the approach being taken here.
The modifications to the party walls Act in Schedule 23 have developed from those included in the Crossrail Act. The experience from the construction of Crossrail was that compliance with the party walls Act process, even as modified, raised risks to the project programme. It is therefore appropriate to alter the process for the HS2 project, as agreed to for phase 1, to avoid construction delays and associated cost implications.
The provisions in Schedule 23 are identical to those already agreed in the phase 1 Act, so this Bill ensures consistency across the HS2 project. Before I outline the proposed modifications in Schedule 23, I wish to make something clear. The regime I will outline does not apply where the underpinning works to adjoining buildings are due to HS2 excavations. Given the more intrusive nature of such works, a different regime is required. This regime is set out in Schedule 2 to the Bill and provides for the giving of notice; the right for adjoining owners to serve counter notices; for disputes to be referred to arbitration; and for payment of compensation. Similar provisions as regards the underpinning of buildings were made in the phase 1 and Crossrail Acts. I hope that goes some way to reassuring noble Lords that the protections for adjoining owners, where major excavation works are needed, are comprehensive.
I shall now continue briefly to summarise the effect of the proposed modifications in Schedule 23, and their purposes. First, the nominated undertaker, HS2 Ltd, would not have to serve notices under the party walls Act to carry out works to which the Act relates. Therefore, the adjoining owner does not have the opportunity to serve a counter notice. This simplifies the process and time taken for agreeing the works. However, the works would still have to be carried out in accordance with the plans and sections agreed with the adjoining owner, as is the process under the current party walls Act. If they are not agreed, the matter would be referred to a single arbitrator for determination, which I will refer to later.
Secondly, a neighbouring owner carrying out works under the party walls Act would not have an automatic right to place footings or foundations on HS2 land or to carry out works required to safeguard HS2 buildings and structures. The nominated undertaker could elect to carry out any such agreed safeguarding works instead of the neighbouring owner at the neighbouring owner’s expense. These modifications are necessary to protect the railway.
Thirdly, any disputes would be determined by a single arbitrator appointed in default of agreement by the president, at the time, of the Institution of Civil Engineers. This would replace the more cumbersome disputes determination process provided by the party walls Act. The purpose of this modification is to provide a speedier and simpler process for dispute resolution. It would ensure that, in a case involving complex railway works, the dispute was determined by a civil engineer with relevant skills, while leaving flexibility for a surveyor to be appointed where that was appropriate. In other respects, the provisions relating to the dispute process, including costs and appeals to the county court, would be the same as under the party walls Act.
The modifications would still provide safeguards for the adjoining owner including the right to compensation and for expenses to be paid in accordance with the party walls Act; the requirement to be given at least 14 days’ notice of the nominated undertaker’s entry on to land to carry out works, except in the case of emergency; that works are to be executed in accordance with such plans, sections and particulars as may be agreed between the nominated undertaker and the neighbouring owner or, in the event of a dispute, are settled by arbitration; and for disputes to be determined by a single arbitrator under the dispute resolution provided by Schedule 23.
These safeguards protect adjoining owners appropriately. To be clear, under the provisions of the Party Wall etc. Act 1996, which still apply, any works required to a party wall would be undertaken at the project’s expense, and compensation would be payable for any damage to the adjoining owner’s property caused by the works to the wall. These safeguards also go alongside the other protections for adjoining owners inside and outside of the Bill. The environmental minimum requirements, through the code of construction practice, provide for the necessary protections to manage and control any potential impacts on people, businesses and the natural and historic environment that may arise from the construction of the works authorised by the Bill.
Finally, we come to the point raised with great insight by the noble Lord, Lord Snape. Are there any party walls on the phase 2a route? The route is rural in nature. It is therefore not expected that many, if any, disputes requiring arbitration under the modified procedure will occur due to the works authorised by this Bill. Where necessary, the modified process would provide a safe and speedy resolution for both the project and the adjoining owner, if indeed there are any party walls on the route.
I shall write in response to the issues raised by the noble Earl, Lord Lytton. I would be grateful if the noble Earl could give some consideration to, and perhaps clarify, exactly what he would wish to change and why. It is very difficult to deal with a long list of, “I don’t like this, I don’t like that”, rather than understanding, given where we are in the process, what would make the difference to this Bill if it were to be changed.
Following all that, I hope that the noble Earl will feel able to withdraw his objection to the schedule being agreed.