MINUTES OF ORAL EVIDENCE

 

taken before the

 

HIGH SPEED RAIL BILL COMMITTEE

 

on the

 

HIGH SPEED RAIL (WEST MIDLANDS – CREWE) BILL

 

 

Wednesday, 2 September 2020 (Afternoon)

 

Virtual proceeding

 

PRESENT:

 

Lord Hope of Craighead (Chair)

Lord Brabazon of Tara

Lord Goddard of Stockport

Lord Liddle

Lord Snape

Lord Haselhurst

_____________

 

IN ATTENDANCE:

 

James Strachan QC, Counsel, Department for Transport

Jacqueline Lean, Counsel, Department for Transport

_____________

WITNESSES:

 

Tim Furnell, Bob Hunt and Gareth Morgan (Ingestre Park Golf Club)

Alan Walker, Peter Miller and Colin Smith (HS2 Ltd)

 

IN PUBLIC SESSION

31

 


INDEX

 

Subject                                          Page

 

Ingestre Park Golf Club

Evidence of Mr Walker

Evidence of Mr Miller

Evidence of Mr Smith

Closing submissions by Mr Strachan

Closing submissions by Mr Furnell


(At 2.05 p.m.)

  1.        THE CHAIR: Mr Furnell, I think its over to you now to put any questions you may have to Mr Smart.

Ingestre Park Golf Club

Evidence of Mr Walker

  1.        MR FURNELL: Thank you, my LordI think the question is to Mr Walker rather than Mr Smart
  2.        THE CHAIR: I beg your pardonYes, indeed, it is
  3.        MR FURNELL: Thank youMr Walker, do you have any experience as a project manager of a golf course construction on clay soilsAnd if so, where and when?
  4.        MR WALKER: Yes, bearing in mind I come from Essex, yes, I doI currently am involved with a project that is a 27-hole infill taking most of the Crossrail cut at Ingrebourne Links, which Ive been working on for the past seven yearsWeve opened up 18 holes this July
  5.        MR FURNELL: Thank youDo you really think its possible to grow grass and have it ready for play in three months as suggested by yourself?
  6.        MR WALKER: With respect, I think its Mr Hunt that said the grass could grow within three months, hence why Im suggesting, or HS2 is suggesting that we bring the programme forward so that there is a longer growing periodBut as Mr Hunt said in his evidence, I was always sceptical whether a grass could grow within three months.
  7.        MR FURNELL: Thank youJust moving on to your suggestion of bringing things forward and I think you were suggesting that effectively all the new holes be constructed at the same timeAm I right in that?
  8.        MR WALKER: I was saying the commencement of the project could start on 1 April: in other words both Colliers land and the land to the east of the clubhouse, yes.
  9.        MR FURNELL: Would you accept that inevitably would increase the budget significantly?
  10.        MR WALKER: In what respect?
  11.        MR FURNELL: In respect of for example two times everything – two times contractors, two times machinery.
  12.        MR WALKER: Whyever would it be two times of everythingIt would be one time of everything but youd bring the work forwardWhen Mr Hunt was explaining he was saying that the two holes on the right-hand side of the clubhouse would be built firstWell I would have thought a construction process wouldnt be the continuation of finishing those two holesThere will be a processIn other words there would be rough earthworks to start with, followed on on the other holes as wellIt would be a continuing programme.
  13.        MR FURNELL: Bearing that in mind, and Im somewhat confused by that – bearing that in mind, just turning to the budget briefly, youve been familiar with the budget for a long time now and I believe youve seen the latest iteration of thatDid you find any significant gaps or errors in thatAnd do you think that budget reflecting what youve just said about that concept of one phase, one sequence of construction, – do you think that budget stands currently
  14.        MR WALKER: Would you just go back, Mr Furnell, to the beginningYou dropped out with the first part of your questionWould you repeat it please?
  15.        MR FURNELL: Apologies, yesReferring to the budget thats been the subject of much discussion over the last year, I believe youve seen the latest iteration of that from Mr Hunt, are there any gaps or fundamental errors in thatDo you stand by what I think youve just said: the budget would not need to be varied if we took on board your suggestion of one sequence of construction rather than two?
  16.        MR WALKER: The last budget I saw was the IPG August 2020 v3, which I dont think is the current up to date one which I think was sent over the weekendI havent had sight of thatBut in general terms, I think the budget is moving towards what I would consider to be a reasonable budget to do the golf course in one hit.
  17.        MR FURNELL: I repeat; you say you dont think it will need further revision if your proposal of one sequence were implemented.
  18.        MR WALKER: I would think a contractor would want to look at that but I doubt whether that would make – the way I look at this, if you have one contractor coming in doing just two holes of work and then having to come back and start again at a later period on the other 10 holes, my common sense mind says that could be more expensiveBut again, until such time as you have brought together – or Mr Hunt has put forward a bill of quantities and gone out to tender on this project, we wont ever be fully aware of the costWe have an estimate at the moment and as I repeat I believe the estimate is within an envelope of what should be spent to build this golf course, yes.
  19.        MR FURNELL: My Lord Chairman, with your agreement, would it be acceptable for Mr Hunt to briefly come back not that matter?
  20.        THE CHAIR: Well perhaps I should ask whether you have any objection to this, Mr Strachan.
  21.        MR STRACHAN QC (DFT): Well, My Lord, it would be a little bit unconventional obviously for the witness to comment whilst Mr Walker was giving his evidence but ultimately I will go with whatever is going to assist the Committee best in eliciting the information, provided Mr Walker has an opportunity to commentI will happily go along with whatever you decide on that.
  22.        THE CHAIR: Well I think were trying to get the best we can out of the evidence to inform us as fully as possibleSo my inclination is to grant Mr Furnells request, unless any members of the Committee object to that.  I think you can go ahead there, Mr FurnellOf course, there will be an opportunity, Mr Strachan, for you to come back in further questioningMr Furnell
  23.        MR FURNELL: Thank you very much, Lord ChairmanIf I could ask Mr Hunt to comment then on Mr Walkers description of that suggested construction alteration.
  24.        MR HUNT: My Lords, Im sorry to have to come back again to try to explainBut I do think its important that the Committee understands what were proposingWeve been trying to develop a strategy to keep 18 holes in playYou will have seen from Mr Walkers evidence that there are varying numbers of holes which are released at any time during the Cadent works and during the EPA worksIn order to try to do that, its critical that in the summer of 2021 we build two holesAnd those two holes are part of the strategy to try to keep 18 holes in playIf we can do that, then we can maintain a strategy – hopefully, if the weather is reasonable – of trying to keep these 18 holes goingBut there is no dispute between Mr Walker and me over what would happen in terms of the placement of a contractThe contractor would start and start to build those two holes, starting in April 2021, as weve always said, but as soon as the first element of those works is complete on the two holes, those elements of work will then transfer across on to the remaining holes
  25.        So theres no dispute about one programme of one complete sequence of worksWhere we had understood and I think theres some misunderstanding here that what was being suggested was that we had two contractors both of whom started on site on 1 April – one on one side of the road and one on the otherThat just, as Mr Furnell was trying to ascertain, would increase costsBut were not proposing thatWe have no dispute between Alan and me over the idea of having one single contractorBut what I suspect isnt understood by HS2 is that we have to build those two holes in order for the strategy of keeping 18 holes in playWe have to get those completed as quickly as possibleBut it is one moving sequence, one contract starting with the two holes and gradually as the various trades progress through those two holes, they will move on and finish the other holes on the other side of the roadWith that programme it still remains an extremely high risk to the weather, both in the construction of the two holes and then having to work through the following winter to do the rest of the holes.
  26.        MR FURNELL: Thank you, Mr Hunt, and thank you for your forbearance, Lord ChairmanI had just two final questions if I may of Mr Walker.  Mr Walker, you stated that you acknowledged that it would be difficult on very busy days for our competitions to be held and the like during the works involvedJust to clarify, citing the example of this Sunday where we had 150 playing in a medal competition and our booking system booked solid, do you really think it is realistic for us to be able to hold competitions during this period?
  27.        MR WALKER: Just to confirm, were talking in the 12-hole period
  28.        MR FURNELL: Yes.
  29.        MR WALKER: Okay, in the 12-hole period, as I mentioned in my evidence, I felt that it was possible with tee reservations to be able to get 18 holes for people to play thoseYou had 150 people playing at the weekendI think Mr Hunt will remember from Belfry days when shotgun starts were played to maximise the amount of play on the golf courseMy Lords, to expand on that, that is when everybody goes out to a certain tee in four balls and plays at one timeWith a shotgun going out, you maximise the amount of play you can get on the golf courseI would imagine on 12 holes, you could easily get 14 or 15 four balls for a morning flight and that could probably be done in the afternoonShotgun is an opportunity. Intermingling with tee times on the first is alsoBut as I said in my evidence, I appreciate it will be difficult on busy daysBut it is a possibility and I maintain that
  30.        MR FURNELL: I presume youd agree, even more difficult with the current Covid situation which for the foreseeable future means separation of tee timesWe have a 10-minute pause between tee times, for example.
  31.        MR WALKER: I think we would all hope that in 2022 Covid is behind us.
  32.        MR FURNELL: Final questions my Lords, Mr WalkerMr Walker, I presume you understand the risks that Mr Hunt identified in his evidence to the programmes that weve been talking aboutWould you say they were an accurate and fair summary of the risks to the programme?
  33.        MR WALKER: I would.
  34.        MR FURNELL: Thank you, My Lord.
  35.        THE CHAIR: GoodMr Strachan, before you come back, do any members of the Committee have questions for Mr WalkerNo, well I think Mr Strachan over to you to re-examine.
  36.        MR STRACHAN QC (DFT): Ive only got one follow-up question, my LordMr Walker, it relates to Mr Hunts comments about a single contractor but bringing forward the construction programme in the way youve envisagedI think its now common ground that youre both talking about using a single contractorBut perhaps you can check if Ive correctly understood it.  But can I please just ask you to comment on whether you maintain your position that the construction of all 12 holes can commence on April 2021 or, whether as Mr Hunts suggesting, you would only construct the first two holes at the beginning of April 2021Just before you answer that – sorry, Mr Walker – my Lord, Im referring to the A10(6) programme.
  37.        THE CHAIR: Yes, I understand that.
  38.        MR STRACHAN QC (DFT): Mr Walker, can you helpCan you explain the position as to when construction starts on the 12 holes?
  39.        MR WALKER: I concur 100% with Mr Hunt that it will be a one contractor operation and if possible the starting date would be onsite on 1 April 2021 and with good weather, as weve gone through, its been already highlighted and I fully concur with that, the construction of those 12 holes can take place during that summer periodThere can be some seeding in the late autumn and with luck and good fortune, the golf course could be open the following year, 2022, September 2022.
  40.        MR STRACHAN QC (DFT): Thank youMr Walker, to be clear, are you referring to two or 10 or 12 holes in that respect?
  41.        MR WALKER: 12 holes.
  42.        MR STRACHAN QC (DFT): Thank youMy Lord, that was the only follow-up question I had
  43.        THE CHAIR: Good, thank you very muchNow where do we go from hereDo you have another witness you want to call?
  44.        MR STRACHAN QC (DFT): My Lord, I have two other witnesses but they are going to be very brief because in light of the focus of the petition, I think I can get Mr Miller to briefly assist you with the planning direction points and the conditions and then very briefly Mr Smith to assist you in relation to the question of acquisition of land and the notices being servedBut I dont anticipate being very long with either of themIf I could ask Mr Miller to go first
  45.        THE CHAIR: Yes, please go ahead.

Evidence of Mr Miller

  1.        MR STRACHAN QC (DFT): Mr Miller, I hope you can hear me.
  2.        MR MILLER: Yes
  3.        MR STRACHAN QC (DfT): Again, youre familiar to the Committee so I wont reintroduce you muchYoure the environment director for HS2But can I ask you to help in relation to the question of securing planning consent for the reconfigured golf courseIn the exhibit material there is reference to a planning direction being sought from the Secretary of State for Transport under this Act, if its enacted under the powers of Royal AssentThere was reference by Mr Furnell to potentially onerous conditions to any consent or reconfigurationCan I just get you to briefly comment on that and whether that is being factored into the programme that weve outlined?
  4.        MR MILLER: YesIt might be worth turning to P28(31) in your slides, which shows the red line outline of the area which is subject to a planning directionYoull have heard from Mr Smart earlier on in the day pointing to a pink area of land which was included in Additional Provision 2, which is associated with an environmental statementThat pink area of land is commensurate with the red line boundary on that plan
  5.        Now, under the Bill, there is provision under clause 47 to provide a planning direction for a use on that land for a golf courseThis relates and goes back to a previous assurance that was entered into to facilitate the planning activities in this location, to speed up and enable the golf course to come about in good orderIts proposed that a planning direction, I dont think theres any dispute with the golf course about this, theres a planning direction, that will be issued by the Secretary of State for Transport, proposed for January of next year following Royal AssentThat will enable the golf course, the 12-hole extension of the golf course – the sideways move, as other people have described it to come aboutWhat comes along with that planning direction are a number of conditionsI think weve got a slide which identifies those.
  6.        MR STRACHAN QC (DFT): 532.
  7.        MR MILLER: Yes, thank youWhat we can reasonably anticipate and youve heard a little bit about ecological surveysTheres still a little bit more work to be done to complete thoseBut I think its fair to say that weve done everything we can to progress the access on to other peoples land at the moment for things like ecological surveys and indeed archaeologyIf there are aspects of ecology that are of interest that further action will need to be taken, then that will have to be built into the plans for that area of land, for the sideways moveNow we consider that if any action was required, theres plenty of time in the programme and there is plenty of space to enable any mitigation or compensation works to take place
  8.        But the conditions really are going to the protection of the natural environmentThats inescapable whether youre a high speed railway or youre a golf course or any other type of development, if youre facing up to those sorts of thingsSo they have to be taken into accountSimilarly for archaeology, we will have to do surface walk overs and maybe even some intrusive trench-type surveys to check out any archaeologyThat points to making sure that the overall design of the plan and the programming and the flexibility of the construction take all of those things into accountThats a familiar feature for all sorts of projects
  9.        Ill briefly talk about drainageTherell have to be some drainage activities sorted out so that by imposing a golf course on that land it will no doubt alter the surface drainage regime and that will need to be thought about and accommodated
  10.        Then finally the constructionWe consider there will be construction management arrangementsThis sort of flows through from the commitments that HS2 has to make on the projectI understand theres a bit of concern about those obligations and hopefully what Im going to say next will allay some of those fearsBut the code of construction practice is designed for a major construction programme and it takes into account a wide range of circumstances that we find ourselves in with building a high speed railwayBut when it comes down to it, this site management plans that will be finally entered into and indeed what we expect the golf course designers and builders to be entering into is something which is tailor-made to the scale and nature of the works that are going to take placeSo whilst we have a pretty comprehensive set of rules for the control of things like noise, vibration, ecology, management plans, water and all that sort of stuff on High Speed TwoWhilst well be applying those principles, those principles will be taken up in a way which is specific to the works in handSo I dont see these as being particularly onerous and, as I say, can be tailor-made.
  11.        MR STRACHAN QC (DFT): Thank you
  12.        THE CHAIR: Can I ask a question at that point, Mr Strachan, to pursue the point a little furtherWere looking, at least it has been suggested we should be looking to a start date on 1 April next yearIs it realistic to expect all the conditions to be identified by then to enable work on the ground to begin on 1 April next year?
  13.        MR MILLER: I think a lot of the survey aspects are already in trainIf we go to P28(18) that might helpYoull see from the third bullet point down there are a number of what we call Housing and Planning Act noticesThose have been entered into and you can see the timings of the final surveys that need to take placeThats being done in good order and in advance of the planning direction and in advance of a start on siteIf indeed there are arrangements that need to be incorporated into the design, as Ive just indicated surface water drainage, for example, they indeed will have to follow throughIt may well be that there are detailed matters that have to be incorporated in the design
  14.        So the start onsite could mean many different things and because its quite a big area of land and there are a number of holes that have got to be configured and the golf course is looking to advance a couple of those holes in any case, it may well turn out to be that the golf course designers can flex in their construction plan to accommodate anything else that needs to be accommodated, say for example, a bit of habitat creation and that sort of thing, on the periphery of the landSo I think weve got a good start with the environmental statement, as I mentioned, that was accompanying the Additional Provision 2So we have a fair idea of what is likely to be needed onsite and what can be planned for or indeed take a precautionary approach aboutSo I cant see any impediment to the works taking place, albeit that you might have to face up to some complex construction planning
  15.        THE CHAIR: Looking down the list, the third bullet point is a notice being served in August 2020Has that been done?
  16.        MR MILLER: I believe it has, yes.
  17.        THE CHAIR: And then the following one is again archaeologicalI think weve covered that one
  18.        MR MILLER: Yes
  19.        THE CHAIR: Then a further note, archaeological trial trenching and so on, and notices for an intrusive GI survey to be served in OctoberThat wont have happened yet but could be done in time, in October.
  20.        MR MILLER: Yes, all of these are able to be in time and theyve been scheduled in that way so that they are most effectively
  21.        THE CHAIR: RightThank you very much.
  22.        MR STRACHAN QC (DFT): My Lord, if it assists, for context, the Housing and Planning Act provisions that have been used to serve those notices are relatively recent provisions and that Act has been used of course because the land is a little bit further away from the line of the route where notices under the relevant previous act for the railway could have been used but they are too distant from the line, the routeBut thats why that Act has been used to achieve the notice in advance of course of Royal Assent of this scaleI hope that helps
  23.        Thank you very much, Mr MillerThe only other matter I wanted to ask you to briefly address is the question of HS2 and approach to keeping the golf course going in terms of flexibility on environmental mitigation. Could you as an illustration because its in the exhibitsTheres a plan in the exhibits which shows a rearrangement of environmental mitigation works, just as an example of what has been going on to assist in this process
  24.        MR MILLER: YesThe reference I have is P28(67)Hopefully this will help
  25.        MR STRACHAN QC (DFT): YesTo introduce that, that’s a plan attached to an assurance that was issued to the golf club.
  26.        MR MILLER: Thats right
  27.        MR STRACHAN QC (DFT): Theres areas in orange boundary and then an area in red, if you could briefly explain whats going on there. 
  28.        MR MILLER: YesThere are a number of areas of land that were required for mitigation for the railway itself, particularly relating to great crested newtsThat sort of habitat was identified on portions of the golf course landThe team has subsequently talked this through with the golf course and I understand at their request have looked for some flexibility around that mitigationYou can see on that plan theres a large area of red – its an upside-down dog leg shape next to the green area of landThe green area of land is the sideways move of the golf courseWe have indeed moved the mitigation works associated with HS2 on to that landThe idea of that is to enable some further flexibility for the golf course but also meeting our obligations under the Bill to provide new homes for the great crested newts. So I think thats a good indication of some good collaboration which has taken place between HS2 and the golf courseIndeed, if it comes to it in their plans, they seek flexibility on their own land, the remainder of the holes which Mr Walker went through and described to you, then indeed, they have a bit more flexibility as a result of that action
  29.        MR STRACHAN QC (DFT): Thank youMy Lord, those are the only questions I had for Mr MillerThere may be other questions for him.
  30.        THE CHAIR: Any members of the Committee with questionsNo, I think you can go on then, Mr Strachan.
  31.        MR STRACHAN QC (DFT): Thank you very muchFinally then, just to Mr Smith to assist the – sorry, I think Mr Furnell has raised his hand, my Lord.
  32.        THE CHAIR: Mr Furnell?
  33.        MR FURNELL: Sorry, I hoped youd ask me if I had any questions, Lord Chairman.
  34.        THE CHAIR: Oh, Im so sorry, yes, of course, I should have done thatI beg your pardon
  35.        MR FURNELL: OkayIts been a long day alreadyDont worryJust one question, Mr MillerWhilst acknowledging that a lot of work is going ahead on the planning questions, the Lord Chairman asked you – actually he asked you about the realism of discharging the conditions that might be imposed on the planning direction whereas I think you answered referring to the, as it were, preparatory works, the surveys, about getting those conditions drafted and their requirementsYou also talked about flexWe look forward to hearing where the flex is in the programmeYoure presumably familiar with that programmeI wonder if you could tell us where that flex is.
  36.        MR MILLER: No, sorry, what Im thinking about is the flexibility on the landPartly the reason why for illustrating the plan on the map here, it shows that theres plenty of room to adapt to the mitigation, what actually has to be discharged as a consequence of meeting those conditionsIndeed, if you have, as a result of the design on the sideways move part of the golf course, the part which is subject to the planning direction, if indeed you have to accommodate your own great crested newts because theyre on the site, what Im suggesting is that on that site that the design will have to flex, be able to take that into accountBut looking at the area of land and the configuration that I think youve shown on your earlier aerial photograph, on the periphery of land, such flexibility could be foundSo there may be occasions where if there was some important archaeology, for example, you may well have to flex and we would have to find that in due courseBut I dont think that we are genuinely expecting that
  37.        MR FURNELL: Thank you.
  38.        MR MILLER: Thank you.
  39.        THE CHAIR: Back to you, Mr Strachan.

Evidence of Mr Smith

  1.        MR STRACHAN QC (DFT): Thank you very much and I move then to Mr Smith, Colin Smith in relation to compensation mattersI dont apprehend that some of this is controversial so I wont spend any length of time on it although Im sure Mr Smith would be happy to answer questions about itA couple of points for you, Mr SmithFirst of all, in the petition and previously there was, as I indicated earlier, a debate about equivalent reinstatement as the approach to compensation towards the golf courseDo you recall that, Mr Smith?
  2.        MR SMITH: Yes
  3.        MR STRACHAN QC (DfT): Great, thank youIn the exhibit pack there were three slides dealing with that at the P28(13), (14), (15) and then after that two slides which deal with the mechanism for resolution of that disputeIm not going to ask Mr Smith to go through that material unless its controversial, but the Committee has before it the promoters evidence about the available markets in relation to golf courses and golf course valuations, as to how one would ordinarily approach compensation affecting a club of this nature for compensation purposesI think thats what is set out in those slides, Mr Smith; is that correct
  4.        MR SMITH: That is correct, yes
  5.        MR STRACHAN QC (DfT): I also referred the Committee to an offer to resolve the question of the appropriate base of compensation through the early neutral evaluation process, Mr Smith, and I indicated that that offer had not been taken upIs that correct or have I misunderstood the position
  6.        MR SMITH: No, that is correct
  7.        THE CHAIR: Can I ask too then Mr Smith, if the offer had been taken up, how far would the discussion have goneIt would, as it were, elide the necessity to go to the Land Compensation Act rules, would it, and it would be an agreed compensation packageIs that what it was intended to achieve?
  8.        MR SMITH: My Lord, yes, it was a dispute on the basis of assessment of compensationThe club were considering it was under rule 5, which is equivalent reinstatementHS2, because there was a ready market in the sale of golf clubs, were saying, they alleged that the proper assessment of compensation was under rule 2, market valueHS2 put forward a suggestion, rather than wait and go through a long tribunal process, that we could have an early neutral evaluation from an expert in compensation matters and his decision would be binding on both partiesSo we didnt have to take the matter through to the courts, the public tribunalSo it was an agreed method of assessing compensation.
  9.        THE CHAIR: I seeI suppose it would have been possible to accede the figure that a rule 2 compensation would reach but not go so far as a rule 5It might be somewhere in the middle?
  10.        MR SMITH: I think you can say quite safely that the rule 5 compensation is well in excess of rule 2 compensation, my Lord.
  11.        THE CHAIR: YesBut at any rate there was a certain amount of flexibility in applying rule 2, if one looks at it from that point of viewBut that opportunity has not been taken upI think that is the long and short of it.
  12.        MR SMITH: Strictly looking at the compensation code, that decision has been left open and it hasnt been taken up by the clubHowever, what HS2 had regard to is the view of the first House Committee, in the other place, to say that they put a great emphasis on the community benefit of the club and hence the way that the promoter is looking at it, and HS2, is that were looking at the benefits that will be gained in the future by use of this as a community asset in order to justify the additional compensation between rule 5 and rule 2.
  13.        THE CHAIR: Yes
  14.        MR STRACHAN QC (DfT): Mr Smith, can you assist in that respect as to whether the reconfiguration proposals that have been considered and contemplated are in excess of what would have been potentially payable based on these comparators under rule 2, for example?
  15.        MR SMITH: Yes, I can confirm that the cost of reconfiguring the golf course will be well in excess of the rule 2 compensation by some degreeI think were talking about two or three times.
  16.        MR STRACHAN QC (DFT): Thank youMy Lord, unless there are further questions on that, I was going to invite Mr Smith to briefly comment on A10(7), which are the requests so far as they relate acquisition and agreementsMr Smith, I dont know if you have slide A10(7)?
  17.        MR SMITH: Yes
  18.        MR STRACHAN QC (DfT): My Lord, I see my Lord Haselhurst is
  19.        THE CHAIR: Im so sorry, yes, I didnt notice your handYes, there areWould you like to put your question, Lord Haselhurst?
  20.        LORD HASELHURST: Thank you very much indeed, ChairmanIts a broad question I want to ask Mr Strachan: how does one measure equivalence in relation to a golf courseIf you were replacing a tennis court, if you were replacing a football ground, they are very similar to a standardBut a golf course has character, depending on the lie of the landYoure not just marking it out by the number of yards or metres that there are from tee to greenThere are dog legsThere are all sorts of varying factorsSo how is one able to measure equivalence?  In terms of money compensation as opposed to any other form of compensation, that the elimination of perhaps a hole, which is generally not to be satisfactory for whatever reason by another one that is slightly different design could – in other words, a replacement in kind – might work with the golf course in a way that it wouldnt with any other kind of sporting facilities.
  21.        MR STRACHAN QC (DfT): My Lord, Ill invite Mr Smith to address you on both those points because I think they relate particularly to – but Im happy to answer anything that he leaves unanswered, but bear in mind, its his area of expertiseMr Smith, can you assist with those two points?
  22.        MR SMITH: I think thats a very good questionThe answer is though that its very difficult at times to get an exact equivalentI think the point thats been made is trueVery often you have old buildings which have to be replaced by new onesSo you cannot get an exact equivalentBut I think youll find in various cases the tribunal has accepted that in assessing that youre assessing the cost of building a new facility to modern standardsThis is the general view that the tribunal has takenThat would be the way forward normally in assessing compensationI dont think it would be possible unfortunately to put a mature, 30-year old tree backIts physically not possibleI think thats the point possibly that my Lord is making.
  23.        MR STRACHAN QC (DFT): Or to recreate the character of a particular hole or golf course in that wayBy way of response, it is only in approaching valuation or the question of equivalence as a matter of law, there has to be a degree of judgment and flexibility for precisely the reasons a particular in approaching valuation there has to be a degree of judgement and flexibility, precisely for the reasons my Lord has put, that you cant have an equivalent hole or a course recreated elsewhereBut the law certainly looks to deal with that in a judgment way
  24.        It brings me on, if I may to the question I wanted to ask Mr Smith about, which is that whilst the dispute about whether the compensation would have been under rule 2 or rule 5 is one that we offered to resolve by alternative dispute mechanisms, in taking on board the point that everyone is working towards continuing the golf course in its current location as a community asset, the proposals that have been taken forward are about reconfiguring the golf course on land adjacent to it, so it remains thereOf course, it wont have the same holeBut it will have new holes built as an 18-hole golf courseBut I wanted to deal with the steps that have being taken from a property perspective to facilitate that, Mr Smith, in light of A10(7) and the requests that have been made
  25.        Ive already dealt to some degree and answered a question that was put to me about extinguishment and the meaning of the letterMy Lord, Ill come back to that in a few closing remarks in a moment, but could you just assist, Mr Smith, with item 3, that as written it was seeking a request from the Committee that HS2 use best endeavours to secure third-party landAs it was put orally, it wasnt actually a request for best endeavours, which has a particular meaning in lawIt imposes certain legal obligationsBut it was put on the basis of try and acquire the land as soon as reasonably practicable or use reasonable endeavours, was the way that Mr Furnell put itCan I just ask you to comment, Mr Smith, as to whether that is or is not what HS2 are seeking to do at the moment in relation to the land?
  26.        MR SMITH: YesThere are three landowners who own the land that is in the area that the reconfigured golf course will be builtThese are the three landowners who we are all in discussion with and if we can reach agreement in advance of servicing a compulsory purchase notice, we will do soObviously, time is getting short now, but we have been in discussion throughout with these landownersThe unfortunate thing is were unable to guarantee by private treaty that HS2 will be able to do that at a reasonable costI just need it there because, having said that, of course, we have already served on those three landowners a notice, an advance notice that we intend to take possession of the sites on 1 March 2015Weve stated its our intention to take temporary possession and then follow that up by acquisition of the land as soon as its possible afterwardsTherefore we can, aiming to secure those sites on 1 March, which is the date that we understood may be needed for the club to commence their worksTo add also, we served all the relevant survey notices for surveys through the autumn as youve already indicated, under the Housing and Planning Act.
  27.        MR STRACHAN QC (DfT): Those notices dont require acquisition of the land, as indicated already
  28.        MR SMITH: No.
  29.        MR STRACHAN QC (DfT): So thats item 3Then items 4 and 5 are regarding confirmation of a budget and agreements of heads of termsI just want to address that, Mr SmithFirst of all is: whats the promoter’s position from a property perspective of whether or not it would be a good idea to agree heads of terms and an agreement to take forward this proposal?
  30.        MR SMITH: I think were in agreement thereWe do need to get on and agree heads of termsWe need to agree them quicklySo we are as one with thatWe do wish to agree heads of terms and follow that up immediately with a contract between the parties that sets clearly the obligations of both parties to an agreed scope, an agreed capped cost and a package of measures to secure future local community use.
  31.        MR STRACHAN QC (DFT): Mr Smith, of course agreeing things obviously requires both parties to agreeMr Smith, can I ask you to explain briefly what it is by way of further information or detail that we require from the club to take forward those agreements?
  32.        MR SMITH: We have had a series from Mr HuntWe have had a series of costs that have been received over the last few weeks and I believe he said one came in yesterdayI didnt see it on SaturdayThat is being looked atSo a lot of work has been done on the actual physical costs of constructing the reconfigured courseIm hopeful that we can agree the scope and cost on that element soon.
  33.        But we also need further financial information because that wont be the end of the matterThe club are concerned about their future business and the impact HS2 will have on the businessWe have requested further financial information on trading information on their accounts that will help give us an understanding of what their position is and then we can come to some form of discussion and decision on what that might beThat is something that we really do need quite quickly if were going to take these matters forward
  34.        The other point is that we need to understand and I respect the fact that the Secretary of States letter has only gone out recently but we need to understand what package of measures for community benefit the club propose, to get those agreed so that we can bridge the gap between cost and value, as we discussed previously, in terms of compensation, the excess compensationWe can look at the community benefits and the extra community benefits that they may bring, so that we can assess that it is good value for money for the taxpayer to pay this amount of money overI think all these things are capable of being worked through and resolved, but both parties need to get onto it quicklyThat would be my judgment.
  35.        THE CHAIR: Can I ask you, Mr Smith? You use the expression cap or the word capped and it is an indication in the departments letter that a ceiling figure will be arrived at; how is that doneIs that arrived at by assessing the costs which have been identified on the basis of the information youve been given and putting a reasonable price on these things, or is it a figure taken out of the air, as it were, just simply the Governments not prepared to spend more money than so many million poundsIs it looking at the real facts or is it a hypothetical cap
  36.        MR SMITH: Its looking at the real facts, but I think if we agree a scope and a cost and Mr Hunts done a lot of work on that, but there are other elements that arent worked through that we need to we just need to finish it offI mean we just need to know what the actual figure is.
  37.        MR STRACHAN QC (DFT): My Lord, I hope its an opportune moment to refer to that letter because the ceiling that your Lordships referred to is not a ceiling which then means there can be no agreementIts the ceiling of the amount the Secretary of State or public money that would be paidIt doesnt preclude, as the letter indicates, the club from adding to contributions in excess of that ceilingI dont know if your Lordship has got the provision itselfIts on page 97, I believe.
  38.        THE CHAIR: I think its at the very end of your groupingYes, it isIts 97
  39.        MR STRACHAN QC (DFT): YesSorry, my Lord
  40.        THE CHAIR: Yes, it does say, the first bullet point, its subject to a ceiling or cap beyond which the Secretary of State is not prepared to go and anything above that will have to be met by the club.
  41.        MR STRACHAN QC (DFT): My Lord, yes, potentiallyBut the idea to reach the ceiling, as Mr Smiths indicated, is that the ceiling represents the reasonable sum for the works plus the wider packaging measuresIf for example the club wanted to go beyond that in any respect in the specifications and details of what was reasonable, they wouldnt be precluded from doing thatIts just a cap on the public funds are going towards what is a reasonable cost, the reconfiguration assessed against all of the community benefits that would flow from expending public money in that way to keep this golf club thereI hope either assistsWere not precluding the golf club for taking a different view if they wanted to add things furtherThey would have to meet that from their own funds
  42.        THE CHAIR: Does that conclude your questions to Mr Smith?
  43.        MR STRACHAN QC (DFT): It does indeed, my Lord, so unless there are any questions for him, at some point Id like to draw the threads together but there may be questions before that
  44.        THE CHAIR: Well Im going to offer Mr Furnell a chance to put his questions and then Ill come to Lord Snape, who is wanting to ask a question as wellMr Furnell, do you have any cross-examination?
  45.        MR FURNELL: Yes, thank you Lord Chairman, I doMr Smith, turning to the summary you provided with Mr Strachan about – youve used the phrase, Refusal to use EME, if I can put it that wayDo you acknowledge that – I forget the MPs name but one of the MPs at one of our hearings referred to that process as being a gamble on our behalf of some millions of pounds of consequenceDo you also agree that the costs of EME are borne on us and us aloneParticularly, do you agree that you stated that the results will be bindingOur clear understanding was that they would not be binding
  46.        MR SMITH: As far as we were concerned, they could be bindingWe wanted to decide and get rid of this difference in approach if it would help move things forwardWe gave the opportunity and it wasnt taken upIts as simple as thatThe club said no and so thats really the end of it
  47.        MR FURNELL: I wanted to make the Committee aware of why we said noDo you also accept that we are firmly of the view we dont accept necessarily that the outcome of the rules 5 settlement would be in excess of a rule 2 settlementThats clearly our position, isnt it
  48.        MR SMITH: That is your position, yesAs Ive said, it hasnt been tested and so were in a different ballgame now.
  49.        MR FURNELL: Next question if I mayAs Whittington Golf Course were awarded compensation on the basis of rule 5, as documented in the HS2 response to the Select Committee on 12 July, why are we being treated differently
  50.        MR SMITH: I cant answer for Wittington HeathI do know that obviously theres a number of factors Ive been told are very differentI can only go on the evidence I see with this courseThe evidence is that that there is a market in golf clubsSo strictly speaking, as far as HS2 are concerned here, really rule 2 would be the appropriate assessment of compensation.
  51.        MR FURNELL: So final question, are you saying that there wasnt a market when Whittington was settled?
  52.        MR SMITH: Again, I wasnt dealing, Im sorry, I cant answer that.
  53.        MR FURNELL: Thank you, Lord Chairman.
  54.        THE CHAIR: Thank youMr FurnellLord SnapeLord Snape, a chance for you to put your question.
  55.        LORD SNAPE: Yes, thank you, Mr ChairmanIts been partially answered by Mr Furnells last question and the responseBut looking at request number 4 on A10(7), Mr Smith, what would be the global sum that the golf club are asking for, the £6 million plus land costs and the two crossings in the Ingestre Road I mean do you have a figure as to the total sum that that would amount to?
  56.        MR SMITH: At the moment, no we dont have an agreed figure, but I can agree that it would be in excess of £6 million.
  57.        LORD SNAPE: Sorry, you are breaking upI cant hear, my Lord.
  58.        THE CHAIR: NoIf you try again, Mr Smith?
  59.        MR SMITH: The budget, firstly, there are several components to the budgetSo if we stick with the elements that are in the control of the clubThere is the cost of the reconfiguration, the design planned by the club, and then there are the elements of interference in their business, disturbance that may be caused by HS2That is the element at the moment where we dont have the degree of certainty on and we still have to sort that out with the clubDoes that answer your question, my Lord
  60.        LORD SNAPE: Yes, it doesI just wondered thinking out loud, are the promoters sympathetic to this sort of figure or does it fall, in your opinion, outside what you would regard as being reasonable?
  61.        MR SMITH: I think the way this has been looked at, this is rather a hybrid, the way this has been viewed by the department is that they are willing to spend more than would be applicable under normal compensation law provided they are satisfied there would be continued community benefit, for the benefit of the local community, and not just for the benefit of the private members of the clubI think that is my reading of that letter
  62.        LORD SNAPE: So in conclusion then, you think theres still scope for negotiation about this overall figure so far as the £6 million plus is concerned?
  63.        MR SMITH: Of course, yes, yes.
  64.        LORD SNAPE: And does the initiative in your opinion lie with the golf club?
  65.        MR SMITH: My Lord, its very easy to be critical of either partyWeve both got to get together and sort it outThat would be ideal
  66.        LORD SNAPE: Thank youThank you, Chairman.
  67.        THE CHAIR: Thank you very muchId like to assess where we areNormally we would rise her for a brief break after about an hour but I dont know how much longer you are likely to take, Mr Strachan and Mr Furnell, with your concluding remarksCan we have some kind of assessmentMr Furnell, you put up your hand.
  68.        MR FURNELL: Yes, my Lord Chairman, I put up my hand because youll recall at the beginning of the proceedings I asked whether it would be possible to plug Mr Morgan into the processWe didnt anticipate that would be necessary, but in view of the last five to 10 minutes, it would be helpful if we could now plug him in before Mr Smith leaves his billet
  69.        THE CHAIR: Well I wonder whether the best thing is to have a short breakThe problem is that these proceedings on video screens and so on are quite tiring to everyone and we would probably benefit by having a short break and coming back with what youre offering us in five minutes timeShall we meet again at 3.10

Sitting suspended.

On resuming –

  1.        THE CHAIR: Now Mr Furnell, back to you please.
  2.        MR FURNELL: Thank you, My LordJust a few further questions for Mr Smith, if I mayYour expertise in relation to golf course compensation, is that extensive?
  3.        MR SMITH: CompensationNo, this will be the first golf course I think that Ive had to deal with but Im only giving you my views of where we are, as the expert witnessI havent challenged any values or any costs.
  4.        MR FURNELL: Thank youTurning to the matter of in summary of missing information on our behalfI think its common knowledge that our accounts had been shared with HS2Weve been struggling to understand what further information beyond the accounts is requested.
  5.        MR SMITH: Im sorryIf they have been, then the people that are involved havent seen them but maybe that can be rectified
  6.        MR FURNELL: Youll be aware that accounts are public knowledge, are they not?
  7.        MR SMITH: Its not just the accountsIts more of the detailsIm told we have requested many times details of your accounts and trading information and they havent been providedIf that is easily rectified, thats great, thats fine.
  8.        MR FURNELL: Okay, well I think your summary is a fair oneThank youFor the purposes of the Committee, could you summarise in these circumstances what the purpose of compensation isIs it not to leave us pretty much where we were in general laymans terms?
  9.        MR SMITH: Yes, the land compensation, you are quite right, the principle is equivalence, so that people are no better and no worse off, as far as possible, that can be achieved by money.
  10.        MR FURNELL: Thank youJust turning to the matter of the cap that has been mentioned to the budgetWould you accept its something weve been asking for, for some time, discussing at length for some time, and would you accept also that its rather unreasonable for us to plan our business, to share with our membership the future, if we dont know what that cap is?
  11.        MR SMITH: YesMy answer to that is quite simply these things have been taken forward in earnest over the recent months and there hasnt been an agreed capThe plans have been developing and so have been the costsNow in front of this Committee, youre saying we must confirm a capYes, we must confirm a cap, one where both parties sit down and agree itBut as I say I dont think there is necessarily a lot thereIts just been a moving feast up to now.
  12.        MR FURNELL: Just going on from that finally, would you also accept there are some uncertainties around thatThere are some risks in our accepting a cap at this stage given for example we discussed today various temporary periods, various closures for six months, is it nine monthsThere are risks involved, arent there, in that cap endorsement?
  13.        MR SMITH: Of courseThats why we need to get together and discuss these matters.
  14.        MR FURNELL: Final question, without wishing to go back over very old ground in relation to our previous relocation cost estimates and the sideways cost estimates, would you accept that the difference between those two was not enormous when we last discussed that matter?
  15.        MR SMITH: Can you be clear about which estimate youre talking aboutAre you talking about the current one that has come through recently
  16.        MR FURNELL: Im suggesting perhaps that the figures were now talking about in terms of budgets in my presentation and the exhibit referred to, circa £6 million, plus compensation, plus land is not a million miles away from the figure that we suggested was accurate for our relocation a couple of years ago?
  17.        MR SMITH: I think were still lower than that figureI think were talking about a figure of £6 million at the moment
  18.        MR FURNELL: For construction only.
  19.        MR SMITH: Yes.
  20.        MR FURNELL: OkayI think well just agree to disagree on thatThank you very much, my Lord.
  21.        THE CHAIR: Thank youDo any members of the Committee have questions for Mr SmithFurther questions I should sayThank you, Mr SmithMr Strachan, its back to youHave we reached the stage were youre going to sum up on the promoter’s behalf?
  22.        MR STRACHAN QC (DFT): My Lord, yes, Im going to try and do that as briefly as possible because youve heard an awful lot and I think the issues are pretty clear for your LordshipCan I draw the threads together as I see them?
  23.        THE CHAIR: Yes, please.

Closing submissions by Mr Strachan

  1.        MR STRACHAN QC (DFT): We certainly do welcome and endorse and then share the aspiration of working constructively and cooperatively with the club to keep or retain it in place with a reconfiguration of the type youve heard some detail aboutThat is, as you can see from the correspondence, the aspiration of the promoter to achieve the continuation of the golf club.
  2.        Secondly, we are very happy that the golf course now accepts that principle of reconfigurationConsiderable work has already taken place collaboratively to make that happen, albeit it its within a reduced timescale thats occurred as a result of the timing of when that acceptance was reached
  3.        Thirdly, I dont accept the characterisation of events given by Mr Furnell as to the approach of HS2 in treating the golf course either unfairly or delaying mattersAs you will have seen and heard from the evidence, considerable efforts have been made to progress the dual aspirations, first of all to construct the scheme properly and effectively within the construction programme, but secondly to deal with the effects and there are obviously serious effects on the golf course but to deal with them as effectively as possible to allow them to continue in operation, albeit there will be these temporary impacts that weve identified in the programme, which we are doing our best to mitigate
  4.        If I just summarise what those impacts are that youve heardAs a result of the work that HS2 has doneWe have, contrary to the original understanding, weve limited the impacts so that there would continue to be 18 holes playable at the golf course until January 2022There is then anticipated to be the nine-month period, January 2022 to September 2022, when those first utility works are due to take place, when the golf course will be down to I think its approximately 12 holes, although Mr Walker has explained the ability during that period potentially to play an 18-hole course but with some repeat holes
  5.        Of course, thats far less ideal than an 18-hole golf courseWe accept thatBut its a workable solution for a temporary impact to the club, which Mr Walker has identified hes confident the members will see as acceptable, bearing in mind whats to comeFrom September 2022 when the main works have to start, we are all working towards at that point the delivery of 18 holes as a result of the reconfiguration taking placeWe had put forward a timetable, a programme, which of course requires goodwill on all parts, it requires good weather, but its an achievable programme if everyone collaborates, works together and follows the indications of what needs to be done when, to bring back 18 holes at the course in September 2002, when we have to start our main works
  6.        If, contrary to our expectations, there is a delay for whatever reason in that and its not achievable, as Mr Walker has explained, there will still be nine holes playable and that delay would again be a short-term delay with the prospect of the new, 18-hole, newly constructed golf course coming on stream the following yearWhilst that again would not be desirable, its a tenable position for the golf course to continue in situ with the members again, knowing whats coming down the track very shortly in terms of the 18 holes payable before the end of the yearSo whilst we dont anticipate that will occur and were doing our best to ensure that doesnt occur, it still enables the golf course to continue
  7.        In contrast, it is not viable, reasonable and we would submit contrary to the whole purpose of the Bill to delay the construction to 2023 in either of the two ways that the golf course have suggested for the reasons given by Mr SmartThere are two fundamental impactsOne a delay to the whole delivery of Phase 2A, which is contrary to the whole point of it being accelerated to run alongside with Phase One, but it is also a massive cost impact of delaying construction works far in excess of any sums that were talking about in terms of compensationAll of which is contrary to the public interestWeve considered carefully any delays and from the promoters perspective those are simply not acceptable.
  8.        Turning then if I may just to the outstanding requests A10(7), I can respond brieflyOn item 1, your Lordship has already heard from meIt is not the intention of the promoter to extinguish the golf course, but the letters that youve seen and in particular the letter on behalf of the Secretary of State dealing with having a cap and conditions requiring community benefits are secured are all directed at ensuring that the ultimate cost to the public purse represents value for money in terms of maintaining the golf course there, but securing public assets at what will be a considerable expenseThere cant be a blank cheque by which extinguishment is completely ruled out as an eventual outcomeIts certainly not the intentionBut to rule or direct no extinguishment would therefore create in effect some expectation that it doesnt matter how much it costs, which is contrary, we say, to what was originally anticipated
  9.        I dealt with the second point, which is delay to the works, which we say are unacceptable
  10.        As to the third point, which is about securing third-party land and best endeavours was the way it was putThat would impose an unacceptable obligation on the promoter to achieve third-party acquisition at whatever costsIndeed youve heard that we are already taking measures to try and acquire the land voluntarily, but with the notices being served to compulsory acquisition with Royal Assent taking place at an accelerated way through these services of notice
  11.        As to items 4 and 5, which relate to confirming the budget, confirming agreement of heads of terms, theres not really much between the parties in that respectWe are working assiduously towards getting an agreed budget of the scope of the works, getting a head of terms agreedIt is sorting out an agreement which achieves all the interests Ive identifiedBut it does require cooperation from the clubThat includes providing us with their not their accounts, not their published accounts, which are just the overall accounts – their operating accounts, profits and losses, how the club operates, what mechanisms are going to be there to deliver the community asset for the benefits of the community and the details of that to enable an overall agreement to be reached
  12.        Just on that last points, can I just assist in answer to my Lord, Lord Snapes question about an overall assessment of where the Secretary of States current judgment liesIts important to note that in that letter at page 97, which refers to – Ill refer your Lordships to the paragraph 2, You have been in discussion with HS2 Ltd, who are working on behalf the promoter of the Bill, and the Ministers have been made aware of the most recent cost estimates for the Ingestre Park Golf Club reconfiguration provided by the International Design GroupI can confirm that the Secretary of State is committed to the AP2 reconfiguration scheme but I also want to reiterate the conditions upon which the offer of reconfiguration was made.
  13.        It was clear from that that the general cost estimates at that stage are ones the Ministers were aware of when identifying their commitment, but its subject of course to the overall package of establishing the community asset principles, which are then set out in the letter as part of an overall agreementIn my submission, that is an entirely reasonable approach to takeIt does consequently require both parties to cooperateWe are willing to do soIt doesnt require the intervention of the Committee, in my submission, but it does require continued cooperation by both parties, which for our part we are keen to progressUnless I can help you further with any of the details that youve heard about the evidence, thats my response to the requests that are sought.
  14.        THE CHAIR: Thank you very much indeedMr Furnell, do you have any closing comments please?

Closing submissions by Mr Furnell

  1.        MR FURNELL: Thank you, Lord ChairmanYes, I wish to start by reiterating our desire to resolve matters and move things forwardThat is the central message we want to portray to you todayYoull have heard a lot of concerns but that is our central messageToday has been about asking you and HS2 to treat us fairlyWeve talked about having the same treatment as WhittingtonWeve talked about leaving us where we were before, the basis Ms Thorntons comment to us in 2018We ask that we are treated fairly in those respects
  2.        Youve heard today from two golf experts and they clearly have slight differences of opinionI just remind you briefly that Mr Walker used lots of reference in his presentation to luck and good fortune’.  We dont think thats the basis for helping us move forward
  3.        Our immediate future is that next month we could well see the start of the surveys that have been talked aboutFrom January to September next year, 2021, Cadent will be arriving and subsequently in 2021 further works kick inThats the reality.
  4.        Two things in closing, very final commentsWe wish to, in the light of today, update the recommendation we set out in A10(7) item 2 relating to a delay of any works to that delay purely being a request to push back the Cadent utility works to January 2023So that is a specific update wed like to offer before closing.
  5.        My Lord, to use a golfing analogy, the pace of play has been snail-likeWeve been standing on the tee for months and years now waiting to get our future sorted outToday is our last formal opportunity to ask you to help us crack on with that and to help our staff and our members and in so doing help the delivery of Phase 2AThank you.
  6.        THE CHAIR: Well thank you very muchI think weve now reached a stage where on behalf the Committee I can thank both you, Mr Furnell and Mr Strachan for your presentationsOf course we’ll consider very carefully the points that you particularly Mr Furnell have been putting before us, including your adjustment to request 2I think thats as far as we can take proceedings todayWhat I propose to do is to adjourn this sitting of the CommitteeWe will meet again tomorrow, Thursday 3 September at 10.30 a.mSo that being the position, I suggested we close this session now.

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