1. Section 51 advice
  2. Advice in detail

Advice to Peter Binding

Back to list

Enquiry

From
Peter Binding
Date advice given
24 August 2018
Enquiry type
Email

Does PINS routinely accept for examination plans for developments where the money will be raised at a later date? Did PINS consider how the project would be funded before accepting this application for examination? Is PINS satisfied that the sources of funding for this project have been made sufficiently clear and that the sources are legitimate sources of funding? What will happen to the DCO if it emerges that the compensation bill is likely to be far higher than the £7.5 million which RSP have allowed for? Will the examination be stopped or will you allow a hiatus in the process whilst they go off to try to raise further funds? If the DCO were completed and RSP were able to fund acquisition of the site, what would happen if they were then unable to raise the money to deliver the development they have proposed? At that point, would PINS accept a modified proposal which was not the same in nature or scale to the original proposal?

Advice given

“Does PINS routinely accept for examination plans for developments where the money will be raised at a later date?”

The test in The Infrastructure Planning (Applications: Prescribed Forms and Procedure) Regulations 2009 requires that, where a proposed order would authorise the Compulsory Acquisition of land or an interest in or right over land, applicants provide “a statement to indicate how an order that contains the authorisation of compulsory acquisition is proposed to be funded”. RiverOak Strategic Partners provided a Funding Statement setting out how it proposes to fund the order. The content of the Funding Statement can be interrogated by the Examining Authority in the course of the examination.

“Did PINS consider how the project would be funded before accepting this application for examination?”

The Planning Inspectorate issued advice about the content of draft funding statements at the following meetings:

• https://infrastructure.planninginspectorate.gov.uk/projects/south-east/manston-airport/?ipcsection=advice&ipcadvice=70d0cc5690 • https://infrastructure.planninginspectorate.gov.uk/projects/south-east/manston-airport/?ipcsection=advice&ipcadvice=11d13371d4

“Is PINS satisfied that the sources of funding for this project have been made sufficiently clear and that the sources are legitimate sources of funding?”

The Planning Inspectorate has not reached any conclusion in this respect. The evidence provided by the Applicant in the application documents will be tested by the appointed Examining Authority, at its own discretion, in a manner that seeks to be fair to all parties and thorough in its examination.

“What will happen to the DCO if it emerges that the compensation bill is likely to be far higher than the £7.5 million which RSP have allowed for? Will the examination be stopped or will you allow a hiatus in the process whilst they go off to try to raise further funds?”

The six month Examination stage is statutory. It has never been extended. If in any case an Examining Authority is not, by the end of the examination, satisfied in respect of one or more of the tests associated with the Compulsory Acquisition of land and rights, a positive recommendation may not be made to the relevant Secretary of State in respect of the Compulsory Acquisition powers sought.

Please see ‘Planning Act 2008: Guidance related to procedures for the compulsory acquisition of land’ for more information: https://www.gov.uk/government/publications/planning-act-2008-procedures-for-the-compulsory-acquisition-of-land

“If the DCO were completed and RSP were able to fund acquisition of the site, what would happen if they were then unable to raise the money to deliver the development they have proposed? At that point, would PINS accept a modified proposal which was not the same in nature or scale to the original proposal?”

There is a formal process for requesting changes to Development Consent Orders post-consent. The principles are explained in ‘Planning Act 2008: Guidance on changes to Development Consent Orders’: https://www.gov.uk/government/publications/changes-to-development-consent-orders