TRANSPORT FOR LONDON BILL

RMT helpline 0800 376 3706 :: april 2015 :: RMTnews 13 D ue to an impending cut in the grant that it receives from central government, Transport for London is under pressure to generate extra revenue by granting long leases on prime sites in and around stations to developers. As a result TfL has introduced the Transport for London Bill introduced into Parliament which, if it becomes law, would allow TfL to engage in what are known as limited partnerships with private developers. Such partnerships minimise tax, are not transparent and would prevent TfL from being able to engage in the management of a project. The limited partnership model is not one local authorities have ever used – and with good reason. The union opposed the relevant clauses of the Bill and arranged for expert legal advice on the issue, engaged with community groups such as Save Earls Court and mobilised our Parliamentary Group led by John McDonnell MP. Senior assistant general secretary Steve Hedley made a presentation to a Parliamentary committee arguing for safeguards on TfL’s property activities. TfL, as a public entity responsible for public assets, should only interact with organisations that pay UK tax and register accounts with Companies House. The TfL Bill is about minimising tax for the developers and TfL, with the Exchequer losing out. RMT legal advice shows that if a developer on a project were to go bust or be liable for fines relating to release of asbestos from demolished buildings etc, TfL – despite having no management control - could end up picking up the tab by ruthless developers. The union’s legal advice was that Limited Liability Partnerships or Limited Companies would be more prudent and usual for public entities and that TfL already has right to set up such bodies. In response, TfL proposed amending the Bill to include a provision that the Secretary of State approve it engaging in a Limited Partnership. However the Parliamentary Committee, including former Tax Inspector Labour MP Rob Flello, shared RMT concerns. Accordingly the Bill was amended so that TfL would only be able to enter into limited partnerships with the Secretary of State's consent via an order “under the affirmative resolution procedure, laid before both Houses in draft with potential dehybridisation measures required”. Last month the bill went back before the Commons and MPs John McDonnell, Jeremy Corbyn and George Galloway tabled amendments who ‘talked out’ the bill. This means that the bill will likely be stalled until after the election. RMT general secretary Mick Cash said that ultimately public land held in the name of TfL that is not needed for current or future transport needs, should be made available for affordable housing developments. “We hope that those in power after the May general election will recognise the importance of using TfL’s vast estate towards addressing the intertwined issues of transport and housing. “We will remain vigilant in our efforts to amend the damaging provisions of the bill and block privateers feasting on public assets and again ripping off the state,” he said. TRANSPORT FOR LONDON BILL