Friday, 29 January 2016

RULING FROM A RENTED HOUSE




The tenth anniversary of the opening of The Senedd building of the National Assembly for Wales will be marked on St David’s Day, 1 March 2016. The building may be presented as the product of architectural patronage and representative of the collective aspiration of the people at that timeAny such claim is contested in a draft paper available on the Academia.com website. 

https://www.academia.edu/21105408/Ruling_From_a_Rented_House

That is a case study  of the process of housing the newly devolved regional government of Wales from 1997 to 2006. It examines the proposition that the location of the National Assembly and subsequent commissioning of a new debating chamber designed by the Richard Rogers Partnership was the consequential outcome of a series of events rather than the intentional creation of a building which might symbolise a new form of regional democracy. 


The events under examination may be summarised as follows;

·        At the outset there was an attempt to minimise the anticipated costs of housing the Assembly and a dispute arose on the value of the assumed location, Cardiff City Hall.

·        A wider bidding process then ensued between rival locations within and outside the capital which may be seen to have been divisive.

·        The final decision was made between a location at The Pierhead, Cardiff or Bute Square, Cardiff, the final choice favouring the former. In either case the seat of regional government would be part of a commercial property development.

·        A competition was then mounted to select an architect for the debating chamber, The Senedd, which would be built at the The Pierhead.

·        During its procurement and construction concern over mounting costs resulted in the dismissal and alienation of the architect.

·        In the course of events there were several changes of leadership and little continuity or personal commitment to the new building.

·        In the ensuing political and public debate concerning the building some politicians adopted the language of architectural patronage to defend and rationalise decisions.

A conspicuous failure was in the implementation of the project and the failure of provincial civil servants and their advisers to properly understand and appreciate the aspirational elements that were being articulated by the architects. Independent adjudication concluded that advisers to the Welsh Office were substantially at fault in the dispute that arose with the Rogers Partnership.


The paper offers some observations on the true cost of housing the Assembly. 

A report published in March 2008 by the Wales Audit Office stated that the cost of the Senedd increased from £12M in 1997 to £69.6M in 2006. That was an increase of 580% compared with the original budget forecast in April 1997 (phase 1) and was four years and 10 months late. 

The conclusions of the Audit Office may be considered generous in some respects.


It will be noted that in the course of events the figure originally stated in the 1997 White Paper as the indicative cost of ‘setting up’ the Assembly was £12m-£17m

The lower figure of £12m formed the basis for bids to house the Assembly.                                                        
The following figures may more accurately reflect the actual cost

Capitalised rental of Crickhowell House                    
£1.5m pa                                                                               £25m
(Note ‘market value’ of capitalised rent circa £40m to investor – see below)
Concession of 200 car parking spaces                                       £0.688m
Initial costs of alteration to accommodate Assembly              £14.8m (to2000)
Expenditure on Pierhead Building                                 £3m??
Construction of TheSenedd                                                            £69.6m
                                                                                Total Circa           £112m+                                 £112m+
This can then be expressed as;
·         936% over the original budget of £12m or
·         658% over the upper limit set for Cardiff City Hall at £17m

The foregoing may then be seen to more accurately reflect the costs of ‘setting up’ the regional government.

Since that‘setting up’ the Welsh Government has also established new sub-regional offices in Merthyr Tydfil, Llandudno Junction, Carmarthen and Abersystwyth. The total cost was in the region of £91.5m which included Llandudno Junction (6,500 m2) at £22m and Aberystwyth at £21m[i].

Coupled with the capital cost of the ‘decentralisation’ of the Welsh Government administration were financial incentives for staff required to move if their posts were relocated. Relocation packages for staff moving to the Merthyr Tydfil office cost £2.9m alone - £2.1m of which was for excess travel fares. It was reported that "there was so much resistance from staff due to move from their Cardiff offices to Merthyr Tydfil", excess fares were subsidised for five years instead of the standard three[ii].

The overall value for money from the programme was "uncertain", according to a report by the Auditor General for Wales on the Assembly relocation strategy of 25 March 2014[iii]
A conclusion of that report was that:

“The Location Strategy had clear objectives, but the Welsh Government did not establish effective governance arrangements until 2008 and underestimated the cost of the Programme”[iv]

Finally some overall comment is made on ownership. In March 2014 it was announced that Ty Hywel (formerly Crickhowell House)had been acquired by a family of private investors based in Kuwait for £40.5m from the owners, Aprirose[i]

We have then a situation where the Senedd building, which it was claimed would, in its symbolic form, represent the open, modern democracy of Wales, is inextricably joined to a rented building. This then presents an interesting variation on David Harvey’s observations on collective symbolic capital and monopoly rents(Harvey 2012 pps 103-109).






[i]http://www.walesonline.co.uk/business/business-news/national-assembly-wales-office-acquired-6770330
 

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