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DD2402 GLAP Donation to London Homeless Charity Group

Key information

Decision type: Director

Reference code: DD2402

Date signed:

Date published:

Decision by: Rickardo Hyatt, Executive Director of Housing and Land

Executive summary

GLA Land & Property Ltd (GLAP) owns the freehold interest of ExCel Exhibition Centre in Newham, East London. GLAP receives income from ExCel as a result of this interest, annually and in arrears. Since 2001 ExCel has held an event every two years known as Defence and Security Equipment International (DSEi). The event has attracted significant opposition from various campaign groups, most notably Campaign Against the Arms Trade. In 2017, the Mayor of London made clear his opposition to London being used as a place for the trade of weapons to those countries that contribute to human rights abuses.

The Mayor asked GLAP to explore whether, by way of its freehold interest in the centre, it is able to prevent or frustrate the event taking place and has concluded that there are no legal means to do so. This paper is seeking approval to donate the income GLAP received from the event in 2017 to the London Homeless Charity Group. A further approval will be sought to donate the income received from the 2019 DSEi event once the amount of that income is confirmed.

Decision

That the Executive Director of Housing & Land approves:

The donation of £88,266 to the London Homeless Charity Group.

Part 1: Non-confidential facts and advice

1.1. GLA Land & Property Limited (GLAP) is the freeholder of the ExCel Exhibition Centre in Newham, East London. ExCel has a long leasehold interest and as a condition of the lease GLAP receives a percentage of ExCel’s turnover annually, in arrears.

1.2. The lease requires ExCel to provide a turnover certificate to evidence the amount they are required to pay GLAP. They are not required to provide event billing and profit information, so it is not possible to calculate the exact income received by GLAP from individual events or commercial activities.

1.3. Since 2001, ExCel has hosted an event, every two years, known as Defence and Security Equipment International (DSEi). The event is supported by the Department for International Trade. The next event is scheduled to take place between the 10th and 13th September 2019.

1.4. The event has attracted significant opposition from the Mayor of Newham, and various campaign groups, most notably the Campaign Against Arms Trade. There is a significant security and policing operation which takes place in the run up to and during the event.

1.5. Since the current Mayor of London was elected there has been one other DSEi which took place in September 2017. The Mayor of London has made clear his opposition to London being used as a place for the trade of weapons to those countries that contribute to human rights abuses.

1.6. The Mayor asked GLAP to explore whether, by way of its freehold interest in the centre, it is able to prevent or frustrate the event taking place. GLAP took legal advice which has concluded that there are no direct legal means to do so at this time.

1.7. GLAP is also freeholder to the water in the Royal Docks and is a major shareholder in the management company tasked with managing the water areas in the Royal Docks, the Royal Docks Management Authority Limited (RoDMA). RoDMA have a 225 year lease of the water and are entitled to licence moorings in the Docks. RoDMA licence parts of the water to Clarion, the DSEI organisers to allow for a number of war ships to be showcased at the exhibition.

1.8. Similarly, the Mayor has no direct right to stop RoDMA from agreeing to the licences. However, the GLA and LB of Newham, via the directors representing their interests on the board of RoDMA have made representations to the board of RoDMA.

2.1 The Mayor of London does not wish GLAP to financially benefit from DSEi. As GLAP do not have the ability to prevent the event by way of its freehold ownership it is proposed that an estimate of the income that GLAP receives from ExCel that relates to DSEi is donated to a charitable cause that benefit Londoners.

2.2 ExCel run a wide variety of events year-round but DSEi is one of the largest and logistically challenging. There are other high-ticket events, such as Sibos 2019, and these happen roughly monthly.

2.3 Therefore it is recommended that GLAP donates 1/12 of the turnover income it received from ExCel in 2017 which is £88,266. It is recommended that the same approach is taken once the income from 2019/2020 is confirmed.

2.4. As GLAP’s business objectives relate to Housing and Regeneration it is deemed that a charity that relates to these objectives is most appropriate. The London Homeless Charities Group includes 22 charities from across London working on homelessness and rough sleeping. The donation would make a contribution to addressing issues relating to homelessness and rough sleeping in London.

3.1 Under section 149 of the Equality Act 2010 (the “Equality Act”), as a public authority, the GLA/GLAP must have ‘due regard’ to the need to eliminate unlawful discrimination, harassment and victimisation, and to advance equality of opportunity and foster good relations between people who share a protected characteristic and those who do not. Protected characteristics under the Equality Act comprise age, disability, gender re-assignment, pregnancy and maternity, race, religion or belief, sex, sexual orientation and marriage or civil partnership status.

3.2 When considering the needs of Londoners and those that will be affected by the proposed donation the donation will not disadvantage those with protected characteristic groups within society. This decision is therefore expected to have positive impacts on persons with a protected characteristic under the Equality Act, as the donation will help to address problems such as overcrowding and homelessness in London, which evidence indicates disproportionately affect specific groups, including Black and Minority Ethnic groups and women.

3.3 The contribution will directly support homeless people and rough sleepers many of who have protected characteristics.

4.1 The income from the 2017/2018 the ExCel was received in 2018. An amendment to the current estate budget is required as there is no allocation in this year budget to cover this donation.

a) Key Risks and Issues

4.2 This is the first time we have donated to a charitable cause in this way. As GLAP’s business objectives relate to Housing and Regeneration it is deemed that a charity that relates to these objectives is most appropriate. The London Homeless Charities Group includes 22 charities from across London working on homelessness and rough sleeping. The donation would make a contribution to addressing issues relating to homelessness and rough sleeping in London.

4.3 The DSEi has taken place in London at the ExCel since 2001 and is backed by HM Government. Legal have confirmed that whilst we are the freeholder of the land that ExCel is located on, we do not have the power to prevent the event from taking place. We have made representations to ExCel, RoDMA and DSEi to voice our opposition to the event taking place in London.

b) Links to Strategies and Strategic Plan

4.4 The Mayor of London’s Housing Strategy and his Rough Sleeping Action Plan set out the GLA’s plans to tackle the capital’s housing crisis, provide a sustainable route off the streets for every rough sleeper, and to provide all Londoners with a good quality home they can afford.

5.1. This decision requests approval to make a charitable donation of £88,266 to the London Homeless Charities Group

5.2. The expenditure will be funded from the GLAP Estates budget.

6.1 Section 30 of the Greater London Authority Act 1999 (as amended) (GLA Act) gives the Mayor a general power to do anything which he considers will further one or more of the principal purposes of the GLA as set out in section 30(2) which are:

i. Promoting economic development and wealth creation in Greater London;

ii. Promoting social development in Greater London; and

iii. Promoting the improvement of the environment in Greater London

and, in formulating the proposals in respect of which a decision is sought, officers confirm they have complied with the GLA’s related statutory duties to:

• Pay due regard to the principle that there should be equality of opportunity for all people;

• Consider how the proposals will promote the improvement of health of persons in Greater London, promote the reduction of health inequalities between persons living in Greater London, contribute towards the achievement of sustainable development in the United Kingdom and contribute towards the mitigation of or adaptation to climate change in the United Kingdom; and

• Consult with appropriate bodies.

6.2 Sections 1 - 3 of this report indicate that the decision requested of the Interim Deputy Executive Director for Housing & Land falls within the GLA’s statutory powers.

Activity

Timeline

Donation made to London Homeless Charities Group

September 2019

Signed decision document

DD2402 GLAP Donation to London Homeless Charity Group - SIGNED

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