Minutes:
The Committee considered the undernoted report:
“1 Relevant Background Information
1.1 As part of Local Government Reform the Northern Ireland Executive in April 2013 agreed that the ownership of off-street car parks, (excluding Park & Ride and Park & Share) their management and enforcement should transfer from the Department for Regional Development (DRD) to Councils on 1st April 2015.
1.2 Subsequently the DRD have published a consultation paper outlining their proposals for an Off-Street Parking (Functions of District Councils) Bill (Appendix 1). The draft Bill proposes to provide Councils with the necessary powers, currently available to the Department, for the operation, management and enforcement of off street car parking. The Council was asked to consider submitting a written response on the proposals by 8th August 2014.
2 Key Issues
2.1 Off-street Parking (Functions of District Councils) Bill:
The main aim of the Bill is to provide district councils with the necessary powers to discharge the responsibilities transferring to them in relation to the future ownership, management and enforcement of off-street car park.
The Bill proposes that the Department should retain the power to make regulations relating to off-street car parking, including the amount of penalty charges and the conditions for immobilising (clamping) vehicles and the parking devises to be used.
2.2 The Bill includes provisions enabling councils to:
· Acquire by agreement or compulsorily any land required for the purposes of providing parking places,
· Set conditions and parking tariffs in relation to council owned off-street car parks,
· Appoint and authorise traffic attendants to enforce the civil provisions of the Traffic Management (NI) Order 2005 relating to off-street parking places, i.e. issue penalty charge notices, immobilisation (clamping) of vehicles etc.,
· Instigate criminal proceedings for certain offences such as interfering with any equipment or obstruction,
· Close a car park or part of any car park for certain special events.
2.3 Members are asked to endorse the attached response welcoming the introduction of the Bill (Appendix 2). In summary, the response indicated that the Council strongly supports the intentions of the legislation as laid out in the explanatory memorandum and in particular the statement that ‘all assets relating to the ownership, management and operation of off-street car parks would need to transfer to councils’.
The Council have no real issues with the Bill as drafted but will be seeking reassurance from DRD that:
· all car parks are transferred without any restrictions attached at the point of transfer (i.e. restrictions on the disposal of assets).
· the making of any new regulations or the revoking or amendment of existing regulations relating to off-street car parking should be subject to consultation with local authorities.
Any additional comments from Members will be submitted to the Department as an addendum to our original response.
2.4 Transfer of Assets:
It is proposed that the majority of DRD’s existing off street car parking assets will transfer to the new Councils. However, recent discussions with DRD indicate that they are proposing to exclude a number of car parks for outright transfer to the Council on the basis that they will be required for future major road schemes at City Centre Ring South and York Road Interchange. The car parks they propose to exclude are situated at Bankmore Street, Charlotte Street, Corporation Street, Cromac Street, Hope Street and Little Victoria Street (although two of these car parks are leasehold interests only).
2.5 These are all well used car parks with a total of 493 spaces and a total income in 2013/14 of £979K. They represent approx 25% of the total number of spaces that DRD currently operates as off street car parking.
2.6 DRD is suggesting that it would not make sense for them to transfer these car parks now to the Council and then have to vest at a later date for the major road schemes. They have suggested that an option might be to lease the sites to BCC at nominal consideration and allow BCC to operate and run the car parks and receive the revenue from the car parks until such time as they are required for the major road schemes.
2.7 This approach would appear to be moving away from the whole thrust of this function coming to Councils - now with a proviso that they will retain the freehold of those assets that they might need for a different DRD function in the future. However, if the Department do require these car parks in the future it could also mean that the Council (with responsibility for providing off street car parking) would potentially then have to re-provide alternative car parking elsewhere at their cost. It would also result in the loss of a significant funding stream at that time.
2.8 There is an Explanatory and Financial Memorandum which has been prepared by DRD, to be read in conjunction with the draft Bill. In this Memorandum it advises that in April 2013 the ‘NI Executive concluded that the district councils should become responsible for the future ownership, management, operation and enforcement of parking....excluding park and ride and share car parks.’ It further states that ‘to achieve that vision all assets relating to the ownership, management and operation of off-street car parks would need to transfer to councils’. It is clear therefore that the intention of the Bill is that all car parks (apart from park and ride) are to transfer to councils. The ability to deliver functions previously exercised by the Department could potentially be hindered if a number of car parks are excluded from transfer and utilised for a different purpose in the near future without alternative provision being made. This could also result in a substantial additional cost to Belfast ratepayers should alternative parking be required.
2.9 It should be noted that a number of the car parks proposed for exclusion relate to the city centre ring road proposal. The Council submitted objections during the BMAP inquiry in relation to this ring road. The Council remains on record as an objector and did not endorse the longer term proposal for the completion of the southern section of the city centre ring (Bankmore Link). DRD has indicated that some amendments to the original proposals may be possible.
2.10 The transfer to Belfast of all assets in relation to off street car parking is also key to the realisation of the Council’s vision for the city in terms of place shaping and the contribution that these assets will make when linked to the wider regeneration and economic proposals that will be developed as part of the overall local government reform.
2.11 In terms of a formal Council position on this issue, Members may wish to consider the following potential options. It should be noted, however, that these options have not been discussed in any detail with DRD but it has been agreed to meet further with DRD to discuss in more detail.
Potential Options for discussion with DRD
i. That all assets should transfer as originally envisaged and if the road schemes do go ahead at some later stage then the Department can acquire by agreement or via compulsory purchase powers. In both cases the Council would at least receive a capital premium based on value of the sites which could be used to provide alternative car parking.
ii. That DRD transfer the car parks as intended but with a condition that DRD reserve a right to acquire in the future (within an agreed timeframe) at a value to be agreed at that time. The basis of valuation and the timeframe for this option for acquisition to be agreed prior.
iii. If there is to be any consideration to DRD simply leasing us the car parks then this could be subject to strict conditions whereby DRD need to financially recompense us at the time for loss of the facility /re-provision etc – and the terms of any such conditions and basis of valuation to be agreed prior.
3 Resource Implications
3.1 The exclusion of certain car parks for outright transfer to the Council could have significant financial implications once the income from these is no longer available.
The recent budget allocation information provided by the Department of the Environment implies that the estimated net revenue from car parks will result in an equivalent reduction in the overall budget transfer under LGR. The figures also differ substantially from earlier figures provided in the Deloitte due diligence report. The Council would have significant concerns in relation to the principle whereby the net surplus is offset against other transferring budgets
4 Equality and Good Relations Considerations
4.1 None at this time
5 Call In
5.1 This decision is subject to Call In.
6 Recommendations
6.1 Members are asked to consider and endorse the officer response on the proposed Bill and agree a final Council response to DRD.
6.2 Members are requested to indicate the basis upon which future discussions should be progressed with DRD in terms of the proposals for exclusion of certain car parks from outright transfer to the Council.
6.3 Members may wish to consider taking the opportunity to invite senior officers from the Department for Regional Development to provide a briefing on the proposals to transfer to its next committee.
6.4 That the Committee writes to the Ministers for DRD and DFP highlighting the fundamental concerns with the financial transfer model proposed.
7 Decision Tracking
Members Services to submit a final written Council response on proposed Bill to DRD.”
A number of Members expressed concern that the Department for Regional Development (DSD) had delayed in its confirmation of the number of car parks which would transfer to the Council. The view was expressed that, given there existed a significant income stream from those sites, the Council should insist that all of the assets were transferred in full.
After discussion, the Committee adopted the recommendations and agreed specifically to the following:
· that an invite to attend the next meeting of the Committee be extended to officers from the Department for Regional Development and the Department of Finance and Personnel to discuss the Council’s concerns regarding the issues which had been raised in respect of the transfer of off-street car parks to the Council; and
· that letters be forwarded to the Ministers with responsibility for the aforementioned Departments expressing the Committee’s concerns in this regard.