We have seen government make many welcome efforts to break down barriers to delivering large-scale development over the past few years. We have seen the scrapping of the Localism Act and creation of the NPPF, a resurgence of Enterprise Zones and the use of TIF to fund large-scale developments such as Paradise City and Battersea Power Station, SW8.
There is still one problem that is creating a barrier to development, however, and that is OJEU.
The Official Journal of the European Union is the tendering process required by EC Directives for public sector procurement.
It is complex, lengthy and expensive, and local authorities and developers are often averse to getting involved in schemes where this process is involved. The result: large regeneration schemes are not delivered. The Silver Hill redevelopment area in Winchester, Hampshire, for example, has not yet begun, despite the fact that the local authority signed a development agreement in 2004.
What can we do about this? We believe the first step is to identify where the issues lie and the scale of the problem. Together with the BCSC, we have launched a survey to ascertain the impact of the OJEU process on development, to find out exactly what it is that puts off local authorities and developers.
Responses have shown there are several developers that refuse to participate in the procurement process, and local authorities express similar opinions. This is bad news for local authorities, developers, and communities that want to see regeneration in their areas.
OJEU is not the easiest, or the most exciting, area of policy, but it is important
Public-private partnerships and large-scale, mixed-use regeneration projects can create great places for people to live, work and play, and we are concerned that the lack of transparency surrounding OJEU threatens this.
In times of constrained public-sector finances, public-private partnerships not only help with funding, but also mean that local authorities and developers can access a new range of sites, and foster good working relationships. Large-scale regeneration projects are essential as they drive growth and improve the public realm.
To ensure that we do not see a stalling of such important projects, the BPF, with the BCSC, will be drawing up guidelines once the survey has closed. These will make the process easier to understand and, critically, make clear when the process really is required.
We will then be seeking government endorsement. Although difficult, OJEU is not insurmountable and if we can promote better understanding and encourage both local authorities and developers to think less fearfully about procurement, we will be taking positive steps forward.
Some local authorities tend to be risk-averse, and it is critical that they are given the confidence to take a rational approach and make sensible, proportionate decisions about whether a full procurement process is needed.
OJEU is not the easiest, nor the most exciting, area of policy, but it is important. Government must realise that unless we improve the procurement process, we risk stalling development that could create the homes and jobs it is so keen to deliver.
Melanie Leech, chief executive, British Property Federation
