Now that Labour has won control of Croydon Council
it will need to urgently ask itself ‘Who really runs Croydon, and for whose benefit’,
and re-think the Council’s relationship with the complex set of interconnections
between it and the big companies operating here especially those in the
property development world.
Charlotte
Davies, who is Chair of the South Croydon Community Association and a Director
of the Croydon Arts Network, has already discussed the need for an ethical
review of Croydon’s governance on Inside Croydon: http://insidecroydon.com/2014/05/31/time-for-thorough-ethical-review-of-croydons-governance.
I had also been looking at the issue which is why
I hope this blog will supplement Charlotte’s.
Council as Developer's Tail
Over the last couple of years a number of articles
in Inside Croydon have raised
concerns about potential conflicts of interest involving Conservative
Councillors like the Meads. Under the control of the Tories the Council seems
to have become the tail of developers. Labour will need to avoid falling into
the same trap.
Examples of this are the decisions:
- To build on Queen’s Gardens.
- To use CPO powers to obtain full ownership of the Whitgift complex for the partners like Hammerson and Westfield in the redevelopment of Whitgit and Centrale.
- The announcement by the Tory Leader that the Council will pay £1m to provide a new access road for the Cane Hill Hospital site housing development, letting the developer off the hook.
- Requiring only a lower level of affordable housing in developers residential schemes than elsewhere.
Under the guise of regenerating Croydon this seems
to be all about maximising the profits of the developers and their investors,
not ensuring that they have to contribute to the real needs of Croydon
residents.
Develop
Croydon at MIPIM
Why else would the Council be part of the delegation
from Develop Croydon (DC) at the international property show MIPIM in Cannes between 11 and 14 March? This was
the fourth time that this private sector consortium which claims to represent
‘the town’s collective interests’ has attended the event hoping ’to strike
deals following the success of previous years.’ A presentation at it about
Croydon two years ago can be seen on You Tube (www.youtube.com/watch?v=YxrxPIkmYxg).
DC’s website explains that the delegation ‘will showcase the borough’s potential to investors from around the globe’.
DC’s website explains that the delegation ‘will showcase the borough’s potential to investors from around the globe’.
The companies supporting the DC delegation were
Abstract Group, Barratt Homes and Barratt London (*), Berkeley (*), Canmoor,
CarVal Investors, Croydon Partnership, DA Consulting Real Estate, Essential
Living, Guildhouse Rosepride LLP, London Borough of Croydon (*), Legal &
General, Menta, Mott MacDonald, Quintessence, Redrow, Riley Consulting,
Schroders (*), Stanhope, Stiles Harold Williams (*), Sinclair Clark, UK Trade
& Industry, Wilmott Dixon, WT Partnership. [Those with (*) are members of
the DC Forum committee.]
The Council’s delegate was Jo Negrini, the new
Executive Director of Development and Environment. She has said: ‘[There was]
strong interest in overseas investors looking outside the traditional prime
London market and new emerging hotspots, like Croydon.’ (Architects Journal. 20 March). London
Mayor Boris Johnson felt the need to go to appeal to overseas investors to
prioritise selling flats to Londoners!
In relation to DC member Barratt’s Cane Hill
development Inside Croydon has suggested that few of the “family homes” to be
built by ‘will accommodate any children’, thus avoiding the need ‘to provide a
school on the site’. Barratt is developing ‘a publicly owned site, valued at
around £250 million, without having to pay much until after the houses are
built and sold off.’
Develop
Croydon
DC is a not-for-profit Community Interest Company
which consists of a group of up to 50 businesses, partners, agencies and
individuals who wish ‘to contribute to the regeneration and economic renewal of
the borough.’ An independent committee oversees it.
The Forum’s aims are to:
- Collectively
promote Croydon as a location to invest, work and live
- Influence
local, regional and national policy for the benefit of the borough through
engagement with LEPs, local authorities and other key stakeholder
partnerships
- Become
an authoritative source of accurate, agreed information and facts about
Croydon
- Actively
engage and consult with the London Borough of Croydon
- Create
PR opportunities and events to improve the perception of Croydon
- Share
ideas, best practice and marketing opportunities
- Keep
partners informed about the latest developments in Croydon
- Involve
partners in shaping the organisation and its activities and work closely
with them to ensure they obtain best value from membership.
Chaired by Stiles Harold Williams, its Committee
members are from Barratt Homes, Berkeley Group, Croydon BID, Durkan, Hammerson, John Laing plc, Croydon Council (Jo
Negrini), Pulsant, Riley Consulting, Rosepride
Properties, Schroders, Westfield and White Label Consultants. As well as
providing the Vice-Chair White Label provides the Secretary and the Acting
Treasurer.
DC Forum Sub-Group
DC
also has a Forum sub-group comprising mainly of town centre companies
of approximately 10 staff or more.
It
was set up ‘to promote and facilitate positive communication between town
centre businesses, the London Borough of Croydon and Croydon Business
Improvement District. The long-term objectives of the group include the
improvement of Croydon's future work force through employment skills and
marketing initiatives. London Borough of Croydon and Croydon BID also use the
Forum to communicate regular updates on subjects such as town centre regeneration
and BID initiatives.’
Croydon
BID
Croydon BID is the organisation of the Business
Improvement District, a club for the Town Centre business community, working
on cleanliness and appearance, safety
and security, accessibility and way-finding and perception and image. It also represents the local business
community’s interests on Town Centre issues and development plans, at both a
strategic and operational and level. Businesses operating in the Town Centre
pay a levy. Residents have no role.
Businesses had to vote in 2012 for its renewal. The Croydon Business
Improvement District Company Ltd is a not for profit company limited by
guarantee.
The
BID’s Board members are from The Whitgift, Centrale, Croydon Cathay Development
Limited, UK,, House of Fraser Croydon, Croydon College, Fairfield Halls, Stiles
Harold Williams, Nat West, Lark Insurance Group, The Croydon Park Hotel, South
London YMCA and House of Reeves, plus the Croydon Sutton member of the Greater
London Authority, and Croydon Council.
The
Council can terminate the BID if in its opinion the BID has insufficient
finances. Before this happens, however the Council must offer the BID body a
reasonable opportunity to arrange for financing the shortfall or for a
reduction in the works or services which is sufficient to offset the shortfall.
In addition, the Council must give those businesses that are liable for the BID
levy an opportunity, at a public meeting, to make representations in relation
to the termination of the BID arrangements. It can also terminate the BID if
the Council is unable, due to any cause beyond its control, to provide works or
services which are necessary for the BID to continue and the authority has
consulted the BID and conducted a consultation with such representatives of the
business community for the BID areas as the authority considers appropriate.
White Label
Consultants
This
PR and marketing company’s clients include: Whitgift Foundation, Croydon BID,
London Borough of Croydon, Develop Croydon, South London Business, Croydon
Constructing Excellence Club, Croydon Business Venture, Barratt Homes, Sinclair
Clark Consultant Surveyors, Croydon Business Awards, Airport House, Croydon
Commitment and Jurys Inn.
What Can Labour Do To Change Council's Relationship?
If
Labour is to change this close-knit network of business interests it will need
to move fast to lay the foundation stones for:
·
Greater
transparency in its affairs with business.
·
Empower
communities to have a greater say in shaping the future of Croydon.
·
Bring
in a code of ethics that blocks
membership of multiple key positions.
·
Ensure
that the minutes or notes all meetings with developers and other businesses are
published within two weeks.
·
A
ban on any more building on parks.
·
A
strategic economic plan designed to up-skill the Borough, not more retail.
·
A
review of all commercial contracts to see what changes can be made in the brief
to firms like Styles and White Label
until the end of their contractual period.
·
Ensure
that Social Value is central to all policies with regard to planning and
business development, especially through CCURV.
·
The
creation of a Croydon Bank.
Background
For background discussion about Develop Croydon
and its attendance at the 2012 MIPIM Conference see http://insidecroydon.com/2012/01/25/croydon-connected-capable-and-confident-unrecognisable.
Conflicts
of interest have also been discussed by Inside Croydon e.g. http://insidecroydon.com/2013/12/19/1bn-property-schemes-landowners-and-proper-role-of-mps
There will be an opportunity to discuss some of the issues above on
Tuesday 10 June, 7pm at Matthews Yard
Local
investment:
Are private developers the only option?
Croydon Radical History Network
presents a talk by Andrew
Fisher
author of the new book The Failed Experiment – and how to build an economy that works.
Andrew will explore issues around democracy, local economic development and the
public interest, from an economic and historic perspective, including a
discussion on the Westfield/Hammerson scheme for the Whitgift Centre. The talk
will be followed by discussion.
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