Government fat cats profit from land sale
Gazette, 10 June 2009, David Arnold

Whitehall to take 85 per cent of money made from homes

A HIGHLY controversial housing development that the Government pushed through against the will of residents, planners and inspectors is set to net THEM millions of pounds.
   Contracts obtained through a Freedom Of Information request show that when a Wickford beauty spot was flogged off by Whitehall bosses at a knock down price, they ensured they got 85 per cent of any housing profits.
   It means the Government will make millions from concreting over former Green Belt land known as Barn Hall - it is a revelation that has never been made public in the three years of planning battles.
   Developers Gleeson Homes, who plan to build up to 200 homes on the site, will also be left with a healthy margin having purchased the land six years ago for a measly £150,000.
   Billericay and Wickford MP John Baron branded the news as a conflict of interest and demanded a U-turn from the Government, after the minister at the tune, Hazel Blears pushed through planning permission on the land despite opposition from planners at Basildon District Council and an independent planning inspector.
   He said: "The whole community was against development. The Planning Inspectorate agreed with us. Yet the Government rode roughshod over local democracy and granted permission.
   "The Secretary of State's decision made little sense at the time, but our FOI showing an 85 per cent kickback now perhaps explains it."
   Leader of Basildon District Council Cllr Tony Ball said the council was "considering its legal options" but felt the Government now has a moral obligation to change its mind.

Horrified
He said: "I was absolutely gobsmacked to hear the news. I mean 85 per cent is a huge amount, normally it's nearer 20 or 40 per cent.
   "An acre of Green Belt land usually sells for about £5,000 but with planning permission it can be nearer £1million so you can see how the land has escalated in value."
   Peter Boynes of the Wickford North Green Action Group, which has been fighting against the plans for years, said: "I'm horrified to learn the extent to which the Government will benefit from granting planning permission."
   The Government has defended its stance.
   The Department for Communities and Local Government approved the final planning permission for 200 homes but a spokesman said they had gone about business in the correct way.
   He said: "The government has acted properly. The financial interest was not brought up in the inquiry and was not a factor in the Government's decision-making.
   "When that decision was challenged in the courts the case was thrown out."
   The Department of Food and Rural Affairs actually drew up the contracts with the payback clause inserted and said they had done their best in getting the best value for money
   A spokesperson said: "In selling off Government assets it is vital that Government Departments achieve the best value for the taxpayer."

Barn Hall plot thickens
THE The Department of Environment took ownership of Barn Hall during the Second World War.
2003: The land is sold to Gleeson Homes for £150,000 with a clause that gives the Government 85 per cent of housing sale profits
May 2006 Council mix-up means the land-doesn't get Green Belt status, the council blames the Government for new housing rules but land is placed in special reserve meaning it can only be built on if the council falls behind housing targets
November 2006: Gleeson .Homes draw up plans which residents promise to fight "tooth and nail".
July 2007: Outline plans submitted prompting more fears
February 2008: Basildon District Council fall to take a vote on the planning application within a set 13-week limit and Gleeson Homes appeal on grounds of non-determination
June 2008: 3,300 signature petition handed to former minister Hazel Blears on the steps of parliament
July 2008: Four-day public inquiry starts and ends concluding land should not be built on
October 2008: Government ignore planning inspector's report and 'call in' decision
December 2008: Basildon District Council launches High Court battle which is thrown out in February 2009
June 2009: Revelations at the Government's stake in pushing through a planning application is made public, in the same week Hazel Blears stands down from cabinet position.