New clause 1 will inform all stakeholders and interested parties that an asset held by TfL is being considered for use in a development deal and that action is under way or being planned over the next 12 months to use it in some way. That information will trigger the interest of stakeholders and enable them to gear up for discussions and consultations with TfL about the development and use of that asset. If the new clause is agreed to, no more would we see communities and local authorities shocked and surprised to find, late in the day and contrary to their wishes, that a site in their area has been included in a development deal with a private development company.
The proposal for the publication of a list of TfL’s and its subsidiaries’ assets and a statement of TfL’s intentions for them also goes to the heart of the concern of many hon. Members and others in relation to clauses 4 and 5. They are anxious about the Mayor’s ambition to use the vast range and magnitude of TfL’s and its subsidiaries’ assets to secure borrowing, which we will come to in the second group of amendments. There is concern that TfL’s standing could be put in serious jeopardy.
This is simply about ensuring that people are properly informed about the intentions, so that they can calculate the risk involved. The proposed report would be an
invaluable tool in enabling all stakeholders to hold TfL and the Mayor to account if they launch a new venture as part of large-scale property development deals. Hon. Members should not underestimate TfL’s massive asset base—it has 3,000 properties across London—and in particular the assets located in central London. Those historic inherited sites are located in the most lucrative parts of the city, which private developers have an interest in developing. In fact, it is widely known in property circles that property developers from across the world are desperate to engage in dialogue with TfL on the prospect of gaining access to those sites and, to be frank, of running rings around TfL and the Mayor and walking away with massive profits.
There is a risk in so many TfL sites and assets coming into the market as part of such development deals. A report requiring TfL to identify the value of the assets, in bands, and its plans for the asset sites over the next 12 months would at least result in a proper assessment taking place. The report would shed critical light on both the quantum and the timing of the potential risk to TfL, Londoners, passengers, employees and council tax payers. That is why new clause 1 is so fundamental to the Bill.