Prop-arazzi

The Competition Commissions final report into the groceries market was released this morning - and calls for the introduction of a new competition test for grocery stores at the planning stage.

In a report which focused on the needs of customers, the Commission concluded that while grocers are providing a good value, action is needed to improve local markets and relationships between suppliers and supermarkets. 

For the supermarkets this will mean:

• a “competition test” for larger planning applications (a recommendation at the moment)
• action to prevent land agreements which prevent competition - most notably restrictive covenants on other sites
• the creation of a grocery supply code
• the introduction of an independent ombudsman to police the code.

In practice, this will mean the OFT becomes a statutory consultee on planning applications and will judge and report to the planning authority on an application’s ”competition test”.

The report will not mean any immediate sales of sites by big supermarkets chains, but in specified areas, there will be a requirement to release restrictive covenants within 6 months - and new restrictive covenants will be prohibited.  These measures are designed to encourage the development of new supermarkets in areas previously dominated by a single supplier.

For more details - please contact Weber Shandwick on 020 7067 0341

Decisions on almost 30,000 planning applications were made in 2006/07, according to statistics released today by the Department of the Environment.

Commenting on the Planning Service’s first annual statistics report, the Environment Minister, Arlene Foster said that Planning Service processed and issued almost 30,000 decisions, including 3,000 applications carried forward from previous years.

Minister Foster announced in November 2007 her intention to bring forward proposals on wide ranging reform of the planning system. A public consultation on these will take place later in 2008. In the meantime, a number of short-term measures are being put in place to contribute positively to the economy by expediting the processing of planning applications. These include the establishment of multi-disciplinary teams to expedite the processing of strategically important planning applications; arrangements for pre-application discussions between Planning Service, key consultees and applicants to assist the process of major applications, improved application validation and appeals handling; looking to improve consultation arrangements with councils.

The OFT has issued a formal Statement of Objection against 112 companies across the construction sector as part of the biggest ever Competition Act Investigation.

 The OFT has formal alleged that the companies have been involved in rigging bids and collusion between bidders, leading to local authorities and other losing money.  The allegation also says that a smaller number of comapnies have acted as a cartels, with the winner of the bidding process making payments to other tenderers.

While no official assumptions have been made about infringement of competition laws, we can expect this to play out very publically and claim a number of victims.

The University of Ulster have published figures which have appeared in the Belfast Telegraph this morning stating that house sales in Northern Ireland could set to fall up to 30%.

Professor Stanley McGreal one of the authors of the UU House Price Index said that ‘there is no doubt that house sales are considerably down’.

With the recent withdrawal of the Northern Ireland Co-Ownership scheme by the NI Executive this could signal a rocky period for house buying, building and selling in the region for the next 6 months.  Will the NI market ever be normal?

Housing Minister, Caroline Flint, has announced the short list for Gordon Brown’s ten eco-town’s this morning.  The towns are designed with the twin aims of addressing the housing shortage and creating low - or zero - carbon communities in the UK.

The areas on the short list are:

- Pennbury, Leicestershire: 12-15,000 homes on a development incorporating brownfield, greenfield and surplus public sector land. Four miles south east of Leicester. This proposal could include 4,000 new affordable houses in an area of high affordability pressure.

- Manby and Strubby, Lincolnshire: 5,000 homes put forward by East Lindsey District Council on two sites, with large elements of brownfield land including a former RAF base. The proposal complements the strategic plan for the phased relocation of communities on Lincolnshire coast because of high flood risk, and could include 1,500 affordable homes in an area of very high affordability pressure.

- Curborough, Staffordshire: 5,000 homes on the brownfield site of the former Fradley airfield, ten miles from Burton. The proposal could include 2,000 affordable houses in an area of very high affordability pressure.

- Middle Quinton, Warwickshire: 6,000 homes on a former Royal Engineers depot which has a rail link to the Worcester-London rail line. Six miles South West of Stratford upon Avon. The proposal could include 2,000 affordable houses in an area of very high affordability pressure.

- Bordon-Whitehill, Hampshire: 5-8,000 homes on a site owned by the Ministry of Defence. A significant number of ex-MoD homes are already on the site, west of Whitehill-Bordon. The proposal could include 2,000 affordable houses in an area of very high affordability pressure.

- Weston Otmoor, Oxfordshire: 10-15,000 homes on a site adjoining the M40 and the Oxford-Bicester railway. Three miles south west of Bicester, the site includes a current airstrip. The scheme could include between 3,000 and 5,000 affordable homes, in an area of extreme affordability pressure.

- Ford, West Sussex: 5,000 homes on a site which includes brownfield land and the former Ford airfield. Close to rail line linking London and the Sussex coast. The scheme could include 1,500 affordable homes, in an area of very high affordability pressure.

- Imerys China Clay Community, Cornwall: Development of around 5,000 homes on former china clay workings, industrial land and disused mining pits no longer needed by owner Imerys. Close to St Austell. The scheme could include 1,500 affordable homes, in an area of extreme affordability pressure.

- Rossington, South Yorkshire: Up to 15,000 homes regenerating the former colliery village of Rossington, three miles south of Doncaster. The scheme could include 1,500 affordable homes, in an area of moderate affordability pressure.

- Coltishall, Norfolk: 5,000 homes on a former RAF airfield, eight miles north of Norwich. The scheme could include 2,000 affordable homes in an area of very high affordability pressure.

- Hanley Grange, Cambridgeshire: 8,000 homes on land adjacent to the A11 designed to improve the severe lack of housing in and around Cambridge. The scheme could include 3,000 affordable homes in an area of extreme affordability pressure.

- Marston Vale and New Marston, Bedfordshire: Up to 15,400 homes on a series of sites, including former industrial sites, along the east-west rail line to Stewartby and Millbrook. The scheme could include 2,000 affordable homes in an area of high affordability pressure.

- Elsenham, Essex: A minimum of 5,000 homes north east of the existing Elsenham village. Close to M11 and the London to Cambridge rail line. The scheme could include 1,800 affordable homes in an area of extreme affordability pressure.

- Rushcliffe, Nottinghamshire: An eco-town proposal was submitted for Kingston-on-Soar, to the south of Nottingham. In response to representations from Rushcliffe Borough Council, this site is not to be pursued. However, the Government is proposing to carry out a further review in partnership with RBC to consider whether there is a suitable alternative location with the potential to be viable within the Rushcliffe local authority area.

- Leeds City Region, Yorkshire: A number of eco-town proposals were submitted for locations within the area of Leeds City Region partnership of 11 authorities and principally between Leeds and Selby. The Leeds City Region Partnership has indicated support in principle for an eco-town within the sub-region. The Partnership has proposed a further study to compare the best alternative locations across the Leeds City Region partnership area. The Government has agreed to support this approach, on the basis that it will allow a further announcement to be made shortly of one or more sites for consultation

All the sites are expected to be deeply controversial - and Weber is on standby to help!

Following a successful report and third reading in the House of Commons yesterday, the Housing & Regeneration Bill will now go on to the House of Lords for further scrutiny and consideration.

 The Bill:

• Aims to reform social housing and social housing regulation to promote better services for tenants
• Supports the delivery of three million new homes by 2020 to meet growing demand and rising aspirations
• Provides for the establishment of new settlements like eco-towns, and for simplifying the ways in which the Homes and Communities Agency would facilitate delivery of these projects
• Introduces sustainability certificates
• Changes the ‘Right to Buy’ legislation
• Implements a European Court of Human Rights ruling on Gypsy and Traveller sites.

It is expected that Baroness Kay Andrews will lead the Bill through the Lords on behalf of the Government. No date has been set for 1st Reading in the Lords.

The Planning Bill, which focuses on major planning and infrastructure developments remains in development following the Commons committee stages.  No date has been set for report and third reading in the Commons chamber.

New consumer research by Mintel Ireland published in the Irish News this morning has noted that the construction industry in Northern Ireland experienced a 10% growth last year and is now valued at £3.5 billion.

 Other key findings include:

• Expenditure in public sector housing increased from £87.4 million in 200 to £134 million in 2007
• It is expected that £18 billion will be spent on a range of infrastructure projects over the next 10 years
• Need for further relaxation in the planning process to stimulate future market growth

John Armstrong from the Construction Employers Federation has welcomed the findings as ‘positive’. He added, ‘while the delivery of social and affordable housing is a priority issue for the new executive there is a distinct danger that if policies for their delivery are introduced without appropriate consultation or time to allow the industry to factor in the additional costs then the house builders will simply stop building’.