DD2498 Costs in Riverside Energy Park Generating Stations Order 2020

1.1. On 9 April 2020, the Secretary of State for Business, Energy and Industrial Strategy Alok Sharma, announced his decision to grant Cory Environmental (Cory) a development consent order (DCO) for a new waste incinerator in Belvedere, Bexley. The Mayor has been clear that no more energy from waste incinerators are needed in London and had called on the Government to decline consent for this new incinerator.

1.2. This DD follows on from DD2358 and DD2409 (Riverside Energy Park Examination legal and consultant costs) under cover of which the Executive Director of Development, Environment and Enterprise approved budget expenditure on the planning examination process and ADD2457, under cover of which budget expenditure was approved to proceed with a legal challenge against the Secretary of State’s grant of the DCO.

1.3. The GLA worked through the planning decision examination process during April to October 2019 to demonstrate that this facility is not needed to manage London’s waste and will have a detrimental impact on recycling rates, climate change and air quality. In January 2020, the Examining Authority submitted a report to the Secretary of State recommending that Cory be granted a DCO.

1.4. Leading Counsel’s advice was sought on the Secretary of State’s decision papers and an application for permission for judicial review was issued in the High Court on 21 May 2020. On 27 June 2020, Mr Justice Kerr gave an Order granting permission to the Mayor to bring a judicial review on all grounds, on the basis that the case was arguable. The Mayor decided to proceed with the claim to a full substantive hearing. The costs to proceed to a full hearing were approved in ADD2457 with Counsel fees of £30,000 taking the total value of the GLA’s legal costs to £40,000.

1.5. ADD2457 also stated that officers would return with a separate decision request seeking approval for payment of potential third-party adverse costs (indicative range £12,000-£50,000) should the Mayor lose at the substantive hearing stage.

1.6. Since 27 June 2020, officers have been working closely with Counsel and TfL Legal to prepare for the court hearing which was listed to take place on 6 & 7 October 2020. During this time, discussions with the Mayor’s Office were taking place about the developments in the case and whether there should be a change of strategy, having regard to all of the circumstances, including the need to consider the allocation of resources and the potential implications of losing at a substantive hearing. After consideration, a decision was made that the Mayor would withdraw the claim. A Notice of Discontinuance was filed with the Court on 23 September 2020.

2.1. To fulfil the Mayor’s legal duty to pay third party costs as a result of withdrawing from the judicial review claim.

3.1 Under section 149 of the Equality Act 2010, in considering whether to grant this approval “due regard” must be had to the need to eliminate unlawful discrimination, harassment and victimisation as well as to advance equality of opportunity and foster good relations between people who have a protected characteristic and those who do not. Protected characteristics include age, disability, gender reassignment, pregnancy and maternity, race, religion or belief, gender, sexual orientation (and marriage or civil partnership status for the purpose of the duty to eliminate unlawful discrimination only). This decision does not raise any issues under the Equality Act.

4.1. The Mayor continues to oppose new incineration in London and will work with Bexley, the Environment Agency and Cory Environmental Ltd to ensure the concessions he secured to reduce the environmental impact of the Cory Riverside Energy Park are met.

4.2. These concessions are in line with the Mayor’s London Plan and draft London Plan which contain strategic planning policies promoting carbon reduction, managing waste efficiently, promoting recycling and protecting Londoners against the effects of poor air quality. The London Environment Strategy similarly contains strategies aimed at promoting renewable energy, reducing the climate-change impacts of London’s waste activities, and the acceleration of London towards a low-carbon circular economy. It is the Mayor’s position that the proposed energy from waste proposal fails to meet a number of his policies and strategies if the DCO concessions are not met.

4.3. There are no conflicts of interests in the drafting and clearance of this decision form.

5.1. Approval is sought for the additional expenditure of £60,925 on outstanding GLA legal and third party costs as a result of discontinuing the judicial review claim on 23 September 2020.

5.2. The budget breakdown for expenditure has been provided in the decision section above. Payment of the third parties costs must be made by the end of October 2020 (see section 7 below as to the specific dates for payment of these costs).

5.3. The total costs of the challenge, including GLA’s legal costs of £40,000 approved under ADD2457, is £100,925. This is being funded from the Environment Waste budget (£90,000) which now incorporates the CORY Incinerator Development programme and available funds from the Energy Efficiency budget (£11,000).

6.1. Under the procedural rules applicable to judicial review claims, there are consequences in terms of costs if a Claimant discontinues a claim before the substantive hearing has taken place (as the Mayor has done here). The default position is that the Claimant will be liable to pay the costs of the Defendant (in this case the Secretary of State) incurred up to and including the date when the Notice of Discontinuance was served. The usual procedure is for the parties to attempt to agree a figure for these costs, failing which there is a formal process by which the costs will be assessed on behalf of the court.

6.2. It has been agreed that the Mayor will make a contribution to the Secretary of State’s costs in the sum of £25,000. In addition, it has been agreed that the Mayor will make a contribution to the costs of Cory in the sum of £30,000.