Capacity Enhancement Projects (Supplementary) [1]

Session date: 
December 6, 2006
Question By: 
Murad Qureshi
Organisation: 
Labour Group
Asked Of: 
Peter Hendy (Commissioner, Transport for London)

Question

The other suggestion was the land value taxation. What occurs to me is there is an extensive property portfolio, certainly with the tube system, which more could be done with. I go through Baker Street every day and on top of that there is a huge mansion development that was built right from the beginning. I feel there are other opportunities, possibly, to do something similar in places like Edgware Road tube station. That is the model they have adopted in Hong Kong and other places. I am not sure why that has not been incorporated within the plans.

Answer

Answer for Capacity Enhancement Projects (Supplementary) [1]

Answer for Capacity Enhancement Projects (Supplementary) [1]

Answered By: 
Peter Hendy (Commissioner, Transport for London)

So far as land value taxation goes, whilst it might be a particular concern of the Deputy Chair of the TfL Board, it is actually one of the things being considered by Lyons and it is not an unreasonable suggestion because what happened with the Jubilee line is that the Jubilee line was extended to Stratford at huge public expense and the result of it is that a lot of land owners in South East and East London got huge benefit out of the increase in value of their land, out of a public project which struggled to be funded. The same of course will be true of Crossrail so it is not an outrageous suggestion but it does depend on national government wanting to take it up.

Ironically, the building above Baker Street Station, which is called Chiltern Court, was erected, I think, in 1928 by the Metropolitan Railway who were thoughtful enough to run a property company and they developed land which they had thoughtfully bought up as they built their railway and then sold it at huge profits. Most of the houses in North West London were either built by them or built by other people on their land and they paid for the railway out of the proceeds of land development. The same is actually true in Hong Kong.

We cannot do that because we do not own these huge tracts of land to start with but we do, as you say, have some property of our own, and we do deserve to take more interest in how we develop it, and in fact we have recently recruited somebody called Anthony Bickmore from the property market who was, I believe, most recently with the Crown Estates, primarily to look at our existing properties and see whether we can develop them and hence generate income, which is another way for paying for schemes, which I omitted to mention earlier.

You will also know that, for example, we have re-let both the advertising contracts for the buses and the tube, which will bring in a lot more money in the future than the past for the same reason.