- [Mr Philip Hollobone in the Chair]
- 3:57 pm
- I beg to move,That this House has considered the redevelopment of New Covent Garden market.As a fellow Northamptonshire MP, Mr Hollobone, you might be slightly surprised that I am interested in this subject, but I hope to enlighten you in my contribution. The first records of Covent Garden supplying food to the population of London are from around 1200. By the 1800s, the market had expanded to cover more than 30 acres, with a covered market being built in 1834. In 1887, a foreign fruit exchange opened, which handled imported produce that was distributed widely beyond the capital city. By 1890, the market had become the most important fresh produce market in the United Kingdom, but space was tight and the market became a chaotic place. According to the Covent Garden Market Authority, people were complaining about congestion.In 1904, the Jubilee Hall was built and in 1918, the Duke of Bedford sold the market and its trading rights to a property company. By 1929, the amount of produce flowing into the market had doubled since 1910 and congestion in the market area was getting worse. That congestion problem seems to be a recurring theme.In 1961, with no space to grow, constant traffic jams and overcrowding, the market needed to move. Accordingly, the Covent Garden Market Authority was set up to modernise the market, and it passed into public ownership. Nine Elms, in the constituency of the hon. Member for Battersea (Marsha De Cordova), was identified as its new home. Construction of the new market began in 1971, and in 1974 the largest wholesale fruit, vegetable and flower market in the country moved to the new site at Nine Elms, which was officially opened by Her Majesty the Queen the following year.At about that time, a young David Heaton-Harris went about setting up his own business with the help of some Lincolnshire farmers. What4 Ltd was the family business that I eventually went on to run before entering politics. I worked nights in the wonderful New Covent Garden Market for the best part of 11 years. Back in the day—this is relevant to the debate—we tried, as tenants, to buy the market from the Government, with other tenants, but they were not keen to sell such a prized asset.For the past 45 years, the market has supplied fresh food and flowers to London and the south of England. According to Daniel Tomkinson, the chief executive of the market authority,“New Covent Market plays a vital role in London’s hospitality and foodservice sectors. No award ceremony or major sporting event takes place in London without the input of one of the tenants. From quality fruit to flowers and amazing veg, this iconic Market is a key part of London’s life.”Currently, 167 businesses trade on the market, employing 2,500 people. The aggregate turnover of businesses operating in the market in 2017 was about £626 million. That is a lot of fruit and vegetables. The market is expanding, and it is no surprise that that figure is a 6% increase on the 2016 numbers, as it is feeding a growing city.The Mayor of London updated his final London food strategy in December 2018, and specifically commented on the need for “highly efficient supply chains” for the city of London. He committed to:“Champion business support to food entrepreneurs and start-ups, and support London’s markets to increase their supply of fresh, local and seasonal produce to meet all Londoners’ cultural needs through the London Markets Board.”New Covent Garden Market plays a huge part in filling those requirements.From my conversations with the Minister, I know he understands how important the continuing existence and success of New Covent Garden Market is to the food supply chain for London and the south-east, and indeed the whole of England. He knows that there is a dispute between the market authority and the tenants of the market over its redevelopment. The Covent Garden Tenants Association was incorporated in April 1922. Its members are the traders on the market, and it has represented their interests for nearly 100 years. It represented my interests when I was a tenant on the market with What4. There is now the possibility of action, based on the infringement of traders’ rights under the terms of their agreements to occupy space in the market. That could easily be substantially expanded to incorporate claims that the market authority is acting in breach of its statutory duties.
- Given what my hon. Friend said about the current state of things for the tenants, I wonder whether this is an opportunity to go back and look at the idea of the tenants taking ownership of the market.
- I am sure the tenants would be delighted to have such an opportunity, but there would obviously have to be some sort of procurement process. That is not a possibility or a probability at this time because there are already contacts signed for the redevelopment of the market. It is a very good piece of real estate in London, where fantastic businesses are sited.The market’s moves over the years have been driven by congestion more than almost anything else. On each occasion, the market’s success has meant that it needs more space. Ultimately, it moved to its current site because of the lack of space and because of the congestion in the area in the 1960s. Its redevelopment will mean that, for the first time in its 800-year history, in a growing market environment, its size will be reduced substantially.
- I congratulate the hon. Gentleman on securing this important debate. I was not aware that he was a former tenant of the New Covent Garden Market. It is great that there is somebody here who has extensive knowledge and experience of this issue. He makes a really interesting point. New Covent Garden Market plays a huge role in my constituency of Battersea: it brings economic advantages to the local area and employs 2,000 people. Given that it has been growing and the income it generates has been increasing, does he agree that a new development that reduces its size is going backwards? It will not allow the market to thrive and go forward.
- I agree. I thank the hon. Lady for her contribution and the way she represents the market in this place. I regularly speak to various of my old friends—I think they are friends; lots of them were customers or people I bought things from, so perhaps they are business associates—and I know that she is a very good representative of the market who talks to the tenants a great deal and represents their concerns wisely.We are squeezing a big, successful business into a smaller space. The market had a massive footprint, and when I was trading there a lot of it was not used effectively, so it is possible to understand some sort of consolidation, but the scale we are talking about now makes that an interesting prospect. At a time when the turnover of the businesses in the market is growing, it seems odd to reduce the market’s footprint. Although the tenants are not over-happy with the overall reduction in size, they have tried their best to make it work. Various pieces of land have already been sold off, and in some instances they are sold on again. The market area is to be reduced even more. Among other changes, the temporary flower market site will be incorporated into the main site. In essence, we are squeezing a quart into a pint pot and hoping that the businesses inside the pot do not get squeezed.Over the years, the tenants have repeatedly raised concerns through their association that the proposed end-state configuration of the market that the authority is now engaged in building will not be able to operate successfully because the proposed layout and footprint simply will not accommodate the vehicle movements needed for the market to operate effectively and efficiently. The tenants of the market are very knowledgeable—and, indeed, vocal—about how the business of the market works, and their opinions about whether what is proposed will work should carry significant weight. They have retained the services of a specialist transport consultant, who advises that there are significant failings in the transport analysis and planning undertaken by the market authority. The Minister is well aware that the market authority is a public body that has a statutory duty to provide functioning market facilities and prevent traffic congestion on the market land.
- It is my understanding that one of the key roles of the Covent Garden Market Authority is to nurture good relations with tenants. How do such actions nurture good relations?
- I know that changes at the top of the market authority have been welcomed by the tenants, and that much better conversations are being had now than have been had for many a year, but I do not believe that this is an appropriate way for a public authority to behave.Additionally, the new draft leases issued by the Covent Garden Market Authority are removing the rights of the wholesale tenants to operate in the critical and traditional way on the bit of the market that everybody loves so much, the buyers walk or trading floor, turning that essential space into a corridor rather than a market. I can honestly tell the Minister that removing that space will almost completely remove the heart, soul and character of the market.In the new leases, the market authority has also changed the rent negotiation process and general service charge calculations, as it has now declared that it is in fact a commercial landlord. Those actions will inevitably result in many of the smaller companies based at the market closing as the site becomes unaffordable.Since the whole process started, there have been vast changes in how the market operates. Goods are now mostly chilled instead of being stored at ambient temperatures, and businesses’ being able to unload big lorries, repick orders and deliver in quick time continues to reduce the number of large vehicle movements required on London’s roads. However, that makes the traffic studies more important than most people believe. There is yet to be a traffic study conducted that says the future design of this important food distribution hub for London will work; indeed, all those that have been done, or at least those that are in the public domain, say that it will not. If it does not work, the market will eventually die. All the catering outlets, restaurants and food businesses currently served by the market will not go away; they will simply be catered for by businesses that travel many more miles to get into London, further adding traffic and pollution in this great city of ours.
- 4:15 pm
- The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (David Rutley)It is an honour to serve under your chairmanship, Mr Hollobone. I congratulate my hon. Friend the Member for Daventry (Chris Heaton-Harris) on securing the debate. I know him well; we have discussed the matter on several occasions, and I could not think of a better person to bring the debate to the Chamber today. I note that the local MP, the hon. Member for Battersea (Marsha De Cordova), is also here and understandably shares many of the same concerns, but I think it is fair to say that, given my hon. Friend’s time spent working at the market, his knowledge and experience are second to none here, so we are delighted that he is with us. It must have been a real privilege for him to follow in his family’s footsteps and run that business so successfully for that period of time.My hon. Friend can be reassured that the Government are committed to ensuring that this iconic market continues to thrive at Nine Elms, both during the development and into the future. We are in absolute agreement that that means it must be a profitable market that works logistically and operates fairly and transparently for both landlord and tenants, and that we need to get on and build it at pace. I am as concerned as he is about the current situation. It is simply untenable for the market authority and the tenants to be in disagreement on such important details. I am clear that both sides should be spending whatever time it takes to resolve these issues, and quickly.
- The Minister is absolutely right that the matter needs to be resolved and that we cannot continue like this. The hon. Member for Daventry (Chris Heaton-Harris) has already asked this, but I want to ask it again: will the Minister commit to meeting tenants and the market authority, and any other relevant persons who need to be around the table, to begin to move things forward? I know that he has already had meetings, but we need to get something nailed down to ensure that we can begin to resolve this. As he rightly points out, we must get the market to a place where it is fit for purpose, but that has to be done right.
- David RutleyOf course I will help to facilitate that. As I think the hon. Lady knows, we have already had a roundtable meeting, but we can have more in the future. The next step is to ensure that we have a second meeting of the experts on both sides of the debate to move things forward, but if further facilitation is required, I will do it.My personal view is that there are enough experts on both sides of the table, both the tenants, who are formidable traders, and the market authority. We must bring the two together with their experts. If I were in charge of the situation, I would probably put the key in a very safe place and let the two sides just get on with it, because, as I will go on to say, this has gone on longer than Brexit and, as complicated as it is, it is not as complicated as that.Hon. Members here are all speaking with a similar voice. Certainly I, as the Minister responsible for this fantastic and iconic institution, echo the sentiment that we need to get on. These are difficult issues, but they are not insurmountable. It is clear that the market is a national treasure. Anybody who is interested in food only has to go along and see this amazing institution, smell it and soak up the atmosphere, because it is unbelievable.I am fortunate that my second job, after my newspaper round, was working in a greengrocer’s shop every day after school—except for Wednesday, which was early closing, if anybody remembers that—and then all day Saturday. I was pretty good at stacking the oranges and enjoying the seasonal smells of those russet apples—food at its best. I was fortunate enough then to go on and work in Asda, running its home shopping business, as well as doing various other things in the food sector. The market should be cherished, and anybody wanting to go along should do so at 2 o’clock in the morning, as I was fortunate enough to do myself, just to feel that buzz. There is a huge amount of experience and a wealth of knowledge there, and some fantastic activities going on. It supplies the food—the very best fruit, vegetables and cut flowers available—to London, the south-east and the country.However, the area needs to be transformed. It has an ageing infrastructure and needs to move to a more modern and flexible place to do business, fit for the 21st century. The old business structures and facilities are 45 years old now, and although my hon. Friend the Member for Daventry looks young—sorry; perhaps I should not have said that, because he has been here a long time—even he would agree that the infrastructure needs to be improved, a bit like the facilities here in Parliament. However, the difference is that although we can decant, that is not possible for the market, given the space constraints.