Property lawyer hits at CPOs

Mar 26 2008 by Alex Turner, Liverpool Daily Post

THE trend for compulsory purchase orders (CPOs) is damaging businesses in the region, according to a Liverpool property lawyer.

Phil Rees-Roberts, of Rees-Roberts, solicitors, believes the process is unfair, cumbersome and in need of a major shake-up as it exposes small businesses to unfair risks.

Yesterday, the Daily Post reported that CPOs are to be used to speed up a £40m regeneration plan in Wirral’s shopping centre.

It is the latest example of the tactic being used in the region.

Liverpool has become a CPO hotspot as it has been used in the Lime Street Gateway, Liverpool One and Edge Lane projects.

Mr Rees-Roberts said: “Compulsory purchase is a key regeneration tool, but the current system is inefficient and unfair. The sheer number of parties involved, from developers, lawyers and surveyors, to public agencies and regeneration bodies, makes the process overly bureaucratic and cumbersome.

“Long delays, caused by lengthy CPO disputes, mean project costs escalate which benefits no-one.

“Iliad’s plans for the Lime Street tower are a case in point. Delays while the CPO was contested meant that a key part of the scheme – the 27-storey tower – became financially unviable.”

The costs of relocation are hard to estimate which can make it difficult for companies to receive fair compensation.

“It’s very hard to put a value on relocating and relaunching a business until you have actually done it,” he said.

“To be compensated fairly, businesses need to secure their relocation first and settle the compensation when the full costs become clear. However, doing this requires deep pockets or a friendly bank manager. It forces these businesses to take the kind of huge financial risks that they normally wouldn’t consider.”

A streamlined process which included more generous advance payments towards relocation fees would help to produce a more equitable situation.

Mr Rees-Roberts said: “Streamlining the process is in everyone’s best interests. Helping companies move on from a CPO quicker will benefit them, and allow developments to progress in a more timely fashion.

“Some developers are taking positive steps towards improving the process. For example offering early negotiations under CPO conditions does go someway to alleviating businesses’ concerns and uncertainty about the future.”

“With the regeneration of Liverpool moving rapidly, the city has an opportunity to set an example for the rest of the country by adopting a more streamlined and SME-friendly approach.”

alex.turner