MD3000 GLAP donation relating to DSEI

1.1. GLA Land and Property Ltd (GLAP) is the freeholder of the ExCeL Exhibition Centre. ExCeL has a long leasehold over the land and pays an annual rent to GLAP, which is a percentage of ExCeL’s turnover. ExCeL provides GLAP with an annual statement of income and a calculation of the turnover rent payment due to GLAP.

1.2. ExCeL has hosted the DSEI trade exhibition every two years since 2001. The event has been supported by the Department for International Trade and happens every other September. The most recent show was in September 2021. The Mayor of London and the Mayor of Newham have been vocal in their opposition to the event being held at ExCeL.

1.3. As set out in DD2402, GLAP has no legal means to prevent ExCeL holding the DSEI event at this time. The event also makes use of the water in Royal Victoria Dock; GLAP is the freeholder of the water in the Royal Docks, which is leased to the Royal Docks Management Authority (RoDMA). RoDMA has a 225-year lease of the water and is entitled to license moorings in the Royal Docks. RoDMA licenses parts of the water to Clarion, the DSEI organisers, to allow for a number of warships to be showcased at the exhibition.

1.4. As with ExCeL, the GLA has no legal right to stop RoDMA from agreeing to the licences. However, the GLA and the London Borough of Newham, via the directors representing their interests on the board of RoDMA, have made representations to the board of RoDMA, in respect of this matter.

2.1. The Mayor of London does not wish GLAP to profit from DSEI. GLAP does not receive any income from RoDMA as a result of DSEI, but it does from ExCeL through the annual turnover rent payment it receives. In the lease ExCeL is not required to provide an event-by-event breakdown of income, so it is not possible to calculate the income paid to GLAP that originates from DSEI in a specific way.

2.2. As set out in DD2402, an estimate of the scale of income has been made. For the 2017 event, GLAP donated one-twelfth of the total annual income it received from ExCeL that financial year. This same approach has been followed for 2019 and 2021. This is not an exact calculation, but an approximation. As GLAP does not have the ability to prevent the event by way of its freehold ownership, it is proposed that an estimate of the DSEI-related income that GLAP receives from ExCeL is donated to a charitable cause that benefits Londoners.

2.3. The proposed donation is therefore £166,841. This includes £99,809 for 2019; and £67,032 for 2021.

2.4. In line with DD2402, the money will be donated to the London Homeless Charities Group, which includes a range of charities from across London working to prevent homelessness and rough sleeping. This reflects the Mayor of London’s commitment to address homelessness in London.

3.1. Under section 149 of the Equality Act 2010 the Mayor as decision maker 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.

3.2. When considering the needs of Londoners and those that will be affected by the proposed donation, it is clear the donation will not disadvantage those with protected characteristics. This decision is therefore expected to have positive impacts on persons with protected characteristics under the Equality Act 2010, as the donation will help to address problems such as overcrowding and homelessness in London – which, evidence indicates, disproportionately affects specific groups, including black and minority ethic people.

4.1. The payments of the turnover rent relating to the 2019 and 2021 DSEI events were received from ExCeL in 2020-21 and 2022-23. An amendment to the current budget 2022-23 will be made to enable the donation.

4.2. The Mayor of London’s Housing Strategy, the London Plan and the Rough Sleeping Action Plan all highlight the need to tackle London’s housing crisis and the need for bold action to address homelessness. This is particularly relevant in the aftermath of COVID-19, during which multi-agency efforts made significant progress in addressing homelessness.

4.3. There are no conflicts of interest relating to this paper and those involved in drafting or clearing it.

4.4. The Mayor has considered whether or not consultation is required (as a pre-requisite to the exercise of his legal powers in section 30 of the Greater London Authority Act 1999 referred to in paragraph 7 below) and has concluded that consultation is not required.

5.1. The Decision is seeking approval to donate £166,841 to the London Homeless Charities Group, which includes a range of charities working to prevent homelessness and rough sleeping.

5.2. The donation will be funded from the rental income received from ExCeL. The event is held biennially, and the amount donated represents one-twelfth of the annual rental income from ExCeL, for 2019 and 2021.

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

• promoting economic development and wealth creation in Greater London
• promoting social development in Greater London
• promoting the improvement of the environment in Greater London.

6.2. 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
• consult with appropriate bodies.

6.3. Sections 1 to 3 of this report indicate that the decision requested of the Mayor falls within the GLA’s statutory powers.