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Heygate Scandal - Call for an investigation


Earl Aelfheah

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  • 2 weeks later...

Councils being 'schmoozed' by proerty developers:


"For the past 25 years, this conference ? Mipim for short ? has been held in Cannes. It?s a jaunt so lavish as to be almost comic ? where big money developers invite town hall executives for secret discussions aboard private yachts, and whose regulars boast that they get through more champagne than all the liggers at the film festival.


Suitably oiled-up, local officials open talks with multinational developers to sell council housing estates and other sites. All this networking is so lucrative for the builders that they even fly over council staff. Last year, Australia?s Lend Lease paid for Southwark?s boss, Peter John, to attend Cannes. This is the same Lend Lease to which Southwark sold the giant Heygate estate at a knockdown price: 1,100 council flats in inner London to be demolished and replaced with 2,500 units, of which only 79 will be for ?social rent?."


http://www.theguardian.com/commentisfree/2014/oct/14/yacht-cannes-selling-homes-local-government-officials-mipim

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I find it very surprising that sort of stuff still happens since the government anti-bribery rules came in a few years ago.


We had a government client we were bidding to. They were rather pleased when we dropped around some gifts of corporate branded coffee cups and mouse mats. An hour later they sheepishly returned them, saying that they weren't allowed to accept them under the anti-bribery rules.

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thanks for the link, Loz


but I see that "The Government does not intend that genuine hospitality or similar business expenditure that is reasonable and proportionate be caught by the Act, so you can continue to provide bona fide hospitality, promotional or other business expenditure.


In any case where it was thought the hospitality was really a cover for bribing someone, the authorities would look at such things as the level of hospitality offered, the way in which it was provided and the level of influence the person receiving it had on the business decision in question.

But, as a general proposition, hospitality or promotional expenditure which is proportionate and reasonable given the sort of business you do is very unlikely to engage the Act.


So you can continue to provide tickets to sporting events, take clients to dinner, offer gifts to clients as a reflection of your good relations, or pay for reasonable travel expenses in order to demonstrate your goods or services to clients if that is reasonable and proportionate for your business"


I expect that all such stuff would have to be declared - does anyone know where Southwark Council's register is?

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Councils go to great lengths to keep the details of property deals secret, making all kinds of claims, and that developers would not want to do business if details were made public. It's another way of saying that developers know that they are morally shafting communities, why else would they want secrecy on details.


In regards to the Heygate, the following links give some background to that battle....


http://www.standard.co.uk/news/london/southwark-in-tribunal-fight-to-keep-15bn-heygate-estate-deal-secret-8808759.html


http://www.southwark.gov.uk/news/article/1672/decision_on_heygate_viability_assessment_tribunal


http://35percent.org/


The last link, that gets into the nitty gritty of value and profit is particularly difficult reading. Lend lease have actively promoted the development to Asia and China, to bring in those off plan sales. Regeneration is supposed to be an improvement of an area for the typicla kind of community that lives there. There is nothing about the Heygate development that fits that remit. How is selling a third of properties off plan to foreign landlords (who will charge premium rent) regeneration? Lend lease exist purely for profit. And whilst ?194 million is cited as their expected profit, they will probably make considerably more, whilst taking as long as they can to cough up the full ?50 million for the land.


The point is though, that recent government, and especially conservative gorvernment, don't care about these kinds of deals as they are ideologically opposed to local authorities having property for rent. That's why they've made it easier than ever for local authorities to sell off land, whilst starving them of funds and restricting the amount they can borrow as capital loans. They've made the discounts for right to buy bigger than ever, even though that policy alone has decimated available affordable housing stock (by some 30%) and worse than that, 40% of all council homes bought under RtoB are now in the hands of private landlords, charging commercial rents. At the same time, conservatives are attacking secure tenancies, and both the coalition and the previous Labour government, favoured private public partnerships with Housing Associations (where tenants have less rights and where higher rents can be charged). The issue here is simple. Either our politicians believe that need should come before profit, or they don't. Right now, whilst much of the debate centres around need, no-one in government is listening enough to do anything meaningful about it. The labour party have said they'll bring in some form of rent control, but that won't have anything like the impact needed to alleviate the current problems.

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  • 4 weeks later...

not sure where things are at with the petition but this is the response I got from Jenny Jones - or her colleague (none of the other people I contacted got back to me local councilors/MP etc)



*********************************************************************

Thanks for your recent email. I am writing on Jenny's behalf, I cover housing issues for the Green Party Group at the London Assembly.


I am happy to support the petition, and will publicise it on Twitter. I have long supported the campaign against the unnecessary demolition of the Heygate Estate, and the development of thousands of luxury flats in its place. The estate should have been refurbished, and the council should have explored opportunities for new social housing on some of the unused car parking and garages. I featured it as a case study in a report I wrote about the Mayor of London's support for schemes like this, called 'Crumbs for Londoners', which you can download here: http://www.london.gov.uk/sites/default/files/Crumbs_for_Londoners.pdf


As you'll see in that report, I have also been calling for a major overhaul of the private rented sector, with new regulations to give tenants far more security of tenure, stability in rent levels, and better housing conditions. It is a scandal that a quarter of Londoners are expected to live under the constant threat of eviction and rent hikes, in the most damp and energy inefficient homes in London. You may find this 'rents map' interesting, which I published to illustrate how unaffordable private rents are in London and why there is such a desperate need for more social housing: http://www.londonrents.org.uk

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Simon Hughes is the MP for Bermondsey and Old Southwark, and he has challenged every stage of the process, all of which is well documented.


To force an independent inquiry is very hard when everything has been done according to the letter of the law. The only outcome to hope for is a moral one which pursuades Local Authorities in future, to put established communities and THEIR rights to decent affordable housing first, within the community they already live in, over profit for private property developers. What frustrates me most is that any attempt to examine what kind of building is taking place is usually met with the stock answer of more homes are being built now than etc etc. We all know how small a percentage of those new homes are affordable.


Both Tessa and Harriet are Labour MPs though and the line I would take with them would be in trying to shape policy of a future Labour govrnment, in changing central policy, which at the moment makes it pretty much impossible for local authorities to build new homes for rental.


rahrahrah, I am working on a project which starts shooting early next year and have spent the past year researching all aspects of housing, and the myth of urban regeneration through schemes like the Heygate forms part of that debate. Anything I can do to help put the petition out there, I will.

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  • 1 year later...

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