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Advice to Dan Bramwell

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Enquiry

From
Dan Bramwell
Date advice given
16 November 2017
Enquiry type
Email

As you are more than aware LRCH has now delayed the submission of its DCO Application for the The London Resort for a fourth time, further extending the uncertainties and potential disruption faced by local businesses, residents and communities, many of which are already treading on eggshells.

PMG, representing the 140 businesses on the Swanscombe Peninsular, has had some meetings with LRCH representatives and despite assurances that they want to work with us, it is now evident that they are pursuing a course through the Compulsory Acquisition route as LRCH currently has no funds to buy properties or relocate businesses. Thus, if the DCO Application is granted it could mean the extinguishment of many very successful, profitable and valuable businesses and the loss of thousands of full-time jobs, not to mention the impact on local communities.

Furthermore, LRCH and its sister businesses' financial credibility is open to question as they have yet again - for the third year running - failed to file annual accounts to Companies House on time, apart from for one dormant company. Surely the commercial NSIP process was not introduced to allow a near 'insolvent' business to undermine and kill-off many very successful smaller businesses.

I would welcome the DCLG's opinion on this situation and, in particular:

• Did DCLG undertake any financial checks on LRCH prior to granting NSIP status? • Does PINS monitor applicants' financial credibility (accounts etc) during a DCO Application process? • How long will DCLG allow an applicant to submit a potential commercial DCO Application before suggesting that any NSIP should be withdrawn if the timescales are constantly being deferred? Technically, I know there is no time limit but, in this case, I would be surprised if DCLG thought such applications could be used to undermine local businesses and communities. This is totally against the current Government's ethos and, if this commercial NSIP status is allowed to continue, will be a sign to any developer that there is potential to acquire land and property through this process irrespective of existing uses.

If you feel this matter is beyond your remit, I'd be grateful of you could forward it to the relevant contact within DCLG and the appropriate Minister. Many thanks for your time.

Advice given

I apologise for the delay in replying to you. Two of your direct questions were matters for the Department for Communities and Local Government (DCLG). Having consulted my colleagues there, I will attempt to answer your questions:

  1. DCLG is not required to undertake financial checks on applicants prior to making a direction that a project is nationally significant (where the project will be treated as development for which development consent is required). This is a matter which is explored during the examination of an application, please see below.

  2. Any application for a development consent order must be accompanied by a statement to indicate how an order that contains the authorisation of compulsory acquisition is proposed to be funded. This is called a ‘funding statement’. The Secretary of State has published guidance which explains that this statement should provide as much information as possible about the resource implications of both acquiring the land and implementing the project for which the land is required.

You can find a copy of that guidance here: https://www.gov.uk/government/publications/planning-act-2008-procedures-for-the-compulsory-acquisition-of-land

That funding statement, along with the remainder of the application documents, will be carefully considered by the examining authority if the application is accepted for examination; and the examining authority’s report will have regard to all relevant and important matters. If, having seen the funding statement, you wish to register to participate in the examination and make submissions to the examination on matters of funding, you are welcome to do so. Landowners identified by the applicant as affected by compulsory acquisition do not need to register in order to participate in the examination.

  1. The Secretary of State took the view in issuing the direction on 9 May 2014 that this project is nationally significant for the reasons given in his letter, here: https://infrastructure.planninginspectorate.gov.uk/wp-content/ipc/uploads/projects/BC080001/BC080001-000025-Direction Letter.pdf

The project is therefore considered to fall under the nationally significant infrastructure regime. Once a project has been directed into the regime in this way, it is for the applicant to take it forward to submit an application under the provisions of the Planning Act 2008 (as amended). As you indicate, the Secretary of State’s direction letter sets no time limit for that to happen and there is no legislative requirement to do so.

If you have any questions, please do not hesitate to contact me