NATIONAL AUDIT OFFICE
REPORTBY THE COMPTROLLERAND AUDITORGENERAL
Land Reclamationin Wales
ORDEREDBY THEHOUSEOFCOMMONS TOBEPRINTED 16JUNE1994
LONDON:HMSO f8.15 NET 461 LAND RECLAMATION IN WALES
This report has been prepared under Section 6 of the National Audit Act 1983 for presentation to the House of Commons in accordance with Section 9 of the Act.
John Bourn National Audit Office Comptroller and Auditor General 14 June 1994
The Comptroller and Auditor General is the head of the National Audit Office employingsome 800 staff. He, and the NAO, are totally independent of Government. He certifies the accounts of all Government departments and a wide range of other public sector bodies; and he has statutory authority to report to Parliament on the economy, efficiency and effectiveness with which departments and other bodies have used their resources. LAND RECLAMATION IN WALES
Contents
Pages
Summary and conclusions 1
Part 1: Introduction 8
Part 2: Effectiveness of the land reclamation programme 11
Part 3: Management of the land reclamation programme 18
Part 4: New dereliction and contamination 28
Appendices
1. Parties consulted in preparing the report 32
2. Examples of land reclamation projects 33
3. Ebbw Vale Garden Festival land reclamation scheme 39 LANE RECLAMATION IN WALES
Summary and conclusions
1 The decline in the traditional industries in Wales has led to much derelict land, defined in the Welsh Office Guidelines to the Welsh Development Agency (The Agency) dated July 1986 as “land incapable of beneficial use without treatment”. This can be hazardous and contaminated as well as unsightly and an impediment to economic and other general development. The Agency are responsible for managing their programme for the reclamation of derelict land in Wales, which has been a high priority for successive governments since the Aberfan disaster in 1966. The Welsh Office are responsible for setting the overall policy, agreeing targets and approving and funding the progmmme of work.
2 The Agency’s policy objective, agreed with the Welsh Office and announced by Ministers in 1990, is to reclaim all significant dereliction, is meriting treatment because there is an economic or environmental benefit or where public safety is involved, by the year 2000. This time related objective has a major impact on the pace of the programme. The Agency make grants to cover the full costs of eligible expenditure on approved schemes by local authorities, who undertake over 96 per cent of land reclamation in Wales. The latter therefore have a key role in planning and implementing much of the programme and in securing value for money. Other applicants receive grants of up to 80 per cant of the eligible net costs incurred in approved reclamation schemes.
3 In 1989, the Committee of Public Accounts reported on the operation of the Department of the Environment’s Derelict Land Grant Scheme in England (17th Report 1988-89). The Committee made recommendations in a number of areas, including the monitoring of schemes and the measurement of effectiveness. The Government accepted the main findings and recommendations (Cm 747).
4 Against this background, the National Audit Office examined:
(a) the effectiveness of the land reclamation programme in Wales;
(b) the Agency’s management of the land reclamation programme;
(c) the effect of new dereliction on the achievement of the policy objective.
Ove Arup and Partners, Consulting Engineers, assisted the National Audit Office by advising on the technical aspects of land reclamation and appraising a representative sample of 18 sites.
5 The National Audit Office concluded from the available evidence that land reclamation in Wales, which had resulted in the clearance of some 13,000 acres of unsightly and hazardous land and had contributed to improvements in the environment and to economic development, had achieved good value for money. The main findings and conclusions in this report should be viewed in that context. LAND RECLAMATION IN WALES
Effectiveness of Identification and prioritisation of derelict land the Land Reclamation 6 The main sources of the Agency’s information on derelict land are the 1988 derelict Programme land survey; local authorities’ programme bids, which reflect their own priorities and willingness to undertake certain schemes: regular contacts with the authorities; and their professional assessments. The Agency consider that sufficient data are available and have been collected to update the main conclusions of the 1988 survey as at 1 April 1993. The Agency use a weighted scoring system, which identifies the key components of a scheme, to assessand prioritise each application for inclusion in the programme or rejection. The top priority is removal of hazards, then commercial, industrial and housing development, then general amenity [paragraphs 2.2 to 2.5).
Measurement and monitoring of achievement against targets
7 An important performance measure for the Agency is progress towards achievement of the overall objective of total clearance of significant dereliction by the year 2000. They also use five numerical targets against which to assessachievement year by year. These measures are cost per completed acre, acreages of new starts, acreages of completions, budgeted expenditure for the year and income for the year. They largely measure input or activity, however, and a good deal of information on the likely outturn each year is available at the time the final targets are set.
8 It would be possible to refine and extend the scoring system used to prioritise schemes so that it could be used to monitor the progress of schemes from their inclusion in the programme through to completion. Such a system could supplement the present system, which is based on “hands-on” management of projects by Agency staff, and could be extended to form the basis of more sophisticated output measures. The Agency accept the desirability of such a system and are considering together with the National Audit Office the way forward. They are anxious to ensure that the system is as objective as possible, is capable of allowing for the technical difficulties of measuring the benefits of land reclamation, and is also cost-effective in adding to the Agency’s ability to obtain further value for money [paragraphs 2.6 to 2.12).
Progress to date
9 The Agency have made substantial progress in clearing the backlog of key unsafe and unsightly sites. At 31 March 1993, land reclamation completed since 1976 comprised some 13,000 acres. A further 11,000 acres are included in the programme for completionby the year 2000.Another 3,000 acres have yet to be takeninto the programme but the Agency expect to complete them by the year 2000. A further 6,000 acres are judged to require little or no treatment. Achievement of the overall objective will therefore require average annual completions in excess of rates achieved to date but in general the sites in the later years of the programme are regarded by the Agency as less difficult and less hazardous than those to be reclaimed in earlier years. This assessment makes some allowance for the occurrence of new dereliction or contamination but not for any need to revisit and reassess sites against later and higher environmental standards (paragraph 2.13).
Use of reclaimed land
10 The primary responsibility for making proposals for the use of land after reclamation, and for implementing the proposals, rests with local authorities. The Agency can reject or seek modifications to any proposed scheme. The Agency’s policy is to regard
2 LAND RECLAMATION IN WALES
reclamation and development as two separate but related steps. Except where there has been a possibility of clawback of grant, they have kept only basic information for individual completed schemes and this does not go beyond the completion of the reclamation works.
11 The reclamation of sites for hard end-use, ie development, is sometimes more expensive than for soft end-use such as amenity areas but this can be offset by an increase in land value. Largely because of geology and topography, 80 per cent of the acreage reclaimed since 1976 has been for soft end-use. Of the balance of 20 per cent reclaimed for hard end-use, 60 per cent has already been committed to development. The remaining 40 per cent comprises sites: requiring further treatment and/or infrastructure investment with marginal development potential; being developed progressively; or recently reclaimed. 42 per cent of land reclaimed for housing has been developed. 58 per cent is awaiting development, partly as a result ofthe recession but more particularly because of the need to reclaim whole regions to ensure that the surrounding environment is conducive to development. Some new areas located in the same vicinity as vacant plots have been recently added to the programme.
12 The Agency balance what can be achieved given the physical site constraints with what is desirable in land use and cost terms. In most cases a clear development strategy or proposed end-use had been realised successfully. Where clearly-defined strategies had not been realised, or where earlier consideration could have been given to possible end-use, the cases were largely outside the control ofthe Agency, who were dependent to a large extent on the planning authorities (paragraphs 2.14 to 2.20).
Management of Efficiency and economy of reclamation works the land reclamation 13 Although the Agency are responsible for approving schemes and managing the programme programme to achieve good value for money, many of the key aspects of performance are not in the Agency’s direct control but in the control of the local authorities and private landowners who have responsibility for the design and implementation of schemes (paragraph 3.2).
(a) Scheme design and implementation and quality of reclamation
14 In the cases examined, scheme designers were usually chosen on the basis of experience and fees were negotiated. Current practice is for consultant-designed schemes to be the subject of tender. The National Audit Office, based on their consultants’ work, found that good techniques were employed, the design and construction of schemes were satisfactory and sites and documentation were inspected for satisfactory completion of the works. The Agency visit reclaimed sites with development potential annually, but otherwise reclaimed sites are the local authorities’ responsibility. Good-quality reclamation had been achieved in 14 of the projects examined and the reclamation of the remaining four sites was adequate. In 1986-87 the Agency reviewed all reclaimed sites to assess any design strengths or weaknesses which might be emerging with the passage of time (paragraphs 3.4,3.x3).
(b) Cost
15 Reclamation works contracts were subject to competitive tender. The nature of the work means that changes in schemes can often occur after contracts are let, and the Agency’s procedures provide for latest approved estimates and costs for individual schemes to be reported monthly, and increases in costs of schemes, depending on their
3 LAND RECLAMATlON IN WALES
value, to be approved at appropriate levels within the Agency. The Agency do not, however, distil management information which provides a high-level overview of cost escalation or the extant to which schemes are managed within original cost estimates. The National Audit Office believe that such information is necessary to provide a basis for judgements on the accuracy of the estimating process and the implications for future planning budgets, and to identify in a more sophisticated way trends in performance on control of costs and any necessary management action required.
16 As a series of annual exercises the Agency have calculated that overall, and after adjusting for inflation to the dates at which contracts started, the actual or estimated final cost of all projects completed since 1985-86 was some three per cent greater than estimates made at the time each scheme was included in the programme.
17 Original and tender estimates and final or estimated outturn costs for the 18 schemes in the National Audit Office’s sample are shown in Table 4. In four cases (see paragraph 3.9) final costs exceeded tender costs (which do not include any allowance for contingencies) by more than 20 per cant in cash terms, ie without adjustment for inflation. Some schemes came in below their tender costs. Some of these variances resulted from revisions to the original designs necessitated by changes in the nature of the schemes. Taking all the sample schemes together, total approved reclamation costs exceeded total tender costs by 9.7 per cent in cash terms although the approved tender costs excluded any allowance for contingencies, which usually amount to about ten per cent. The National Audit Office, on the basis of their consultants’ experience of similar schemes, considered that net costs were satisfactory in relation to the works required and that good value for money was achieved (paragraphs 3.5 to 3.10).
(c) Timeliness
18 The quality and cost of projects are the Agency’s primary concerns. They regard completion of projects to time, for which they depend on the local authorities and land owners who manage most of the schemes, as less important than quality and cost except where a site is needed for a particular end-use by a particular date. In the management of the programme the Agency allow for advancement or slippage of some projects and changes in priorities between schemes. They believe that slippages on particular projects are offset by advancements and that the cost effect is neutral and that the achievement of the main objective is not impeded.
19 Although the information was held the Agency’s records did not readily facilitate an analysis to enable an overall judgementto be made on whetherschemes were completed with due timeliness. The Agency provided information on whether the works phase was completed to time for five out of 18 sample schemes examined. Four of the five schemes were well-managed in terms of time. In the fifth, Pentie Colliery, the original construction period had been extended (to date by 17 months) owing to circumstances beyond the Agency’s control. The Agency have grant-aided site supervision throughout the land reclamation programme (paragraphs 3.11 to 3.12).
Recovery of grant on disposal of reclaimed land
20 Where land has been reclaimed for a hard end-use, the Agency must claw back from the owner, when he disposes of the land, an amount up to the value by which it has been enhanced. The Agency seek to maximise income from clawback and the arrangements were operating satisfactorily. Three of the sample of eighteen schemes examined (Bierspool, Neatb Abbey and ASL Airflow] had yielded clawback totalling
4 LAND RECLAMATION IN WALES
E465,000, with a further ~&80,000expected. New grant conditions, fully operational from January 1994, permit the Agency to register an interest in the land, effectively prohibiting a sale without their permission (paragraphs 3.14 to 3.18).
Private sector schemes
21 Private sector schemes represent less than 10 per cent of land reclamation in Wales. Their appeal to owners is likely to be low given the need for a minimum 20 per cent contribution of the net cost from the landowner after the deduction of any expected increase in land value from the cost eligible for grant. Purchase of such derelict land by the local authority may cost more in terms of public expenditure, but under present arrangements it is the only alternative way to secure reclamation. The Agency and the Welsh Office are reviewing the position [paragraphs 3.19 to 3.23).
Management and control of the programme
22 In any year the funds available set the limit of potential progress towards the overall objective. The Agency aim to use all the funds allocated in a particular year and to devote these to the schemes of highest priority which are capable of making progress. All ongoing projects are considered at monthly meetings and the starts of schemes are adjusted as necessary to ensure that the budget is fully used but not overspent. The close involvement with individual schemes and the local authorities facilitates financial monitoring and maintains themomentum ofthe programme (paragraphs 3.24 to 3.28).
The effect of new 23 In initially setting the Agency the objective of clearing all significant dereliction by dereliction and the year 2000, the Welsh Office had regard to the dereliction identified by the 1988 contamination survey of derelict land. They have also made due allowance for dereliction which has occurred since 1988.
24 Additional areas are being identified or defined as derelict as a result of increased concern with environmental issues and in particular the greater awareness of contamination. The Agency’s work is currently focusing on the less visible, more complicated problems caused mainly by contamination. An inter-departmental Committee and the European Commission are currently looking at contamination standards. In addition, stricter standards are now being enforced as a result of the work of bodies such as the National Rivers Authority and the implementation of the Environmental Protection Act 1990. To determine the extent of contamination, the Agency have commissioned a new study of derelict land, which will also seek to identify land where current operations might create contamination requiring action by the Agency in the future. The Agency are also testing a draft best practice manual to encourage consistent standards of treatment and approach throughout Wales (paragraphs 4.1 to 4.14).
25 The National Audit Office conclude that a range of new and additional work will be required to cope with the new problems, but agree that the Agency are correct in not taking hasty actionuntil the extent ofthe work has beenascertained. Unless that proves to be small, it is unlikely that all the extra work can be undertaken by the end of the century. The need to secure specific standards of reclamation is likely to put pressure upon the Agency to develop more sophisticated output measures and targets. The Agency and the Welsh Office are aware of these issues and are considering the way forward [paragraphs 4.15 to 4.19).
5 LAND RECLAMATION IN WALES
Action required 26 The National Audit Office identified the following actions as being important for the continued or further improvement in the administration and effectiveness of land reclamation grants.
(a) Collating records of individual schemes should be improved so that key information is readily available in one place, including cost estimates at key stages and expected timescales and targets for completion of the various stages of the project. Actual achievement should be monitored and recorded against targets.
[bl The regular reports to senior management on the progress of the programme should include an analysis of overall performance on cost and timeliness of completions.
(4 Such reports should record achievement against quantifiable targets wherever possible. Targets will need to be challenging and provide measures of performance, covering, for example, work in progress by breaking down workload by start and planned completion years and possibly by region. Such disaggregation should ensure that performance on new work is clearly separated from past performance. Judgements on the Agency’s performance based on such data would have to take into account the difficulty ofseparating Agency and local authority performance.
(d) Targets and achievements should also be prepared for clawback and end-use, although it must be recognised that the achievement of end-use is largely a matter for the local authorities and the market.
(e) The Agency and the National Audit Office recognise both the desirability and the difficulty of establishing an increased number of more quantifiable measures of outputs across and between projects. A feasibility study should be undertaken to evaluate the costs and benefits of a system to target and provide a unit measure of the outputs of schemes for comparison with costs.
(fJ The Agency should continue to maintain up-to-date information on current dereliction and contamination on both publicly-owned and privately-owned sites.
(g) The Agency should continue their policy of ensuring, as far as possible, that the proposalsfor end-usemade by the local authoritiesare realistic in the light of the local current and perceived longer-term market conditions.
(h) The Agency should, as planned, in appropriate cases use the new provisions enabling them to register an interest in reclaimed land, to achieve clawback of increases in site values.
27 The Agency believe that in addition to the existing month by month monitoring and measurement, the increased sophistication in the measurement of cost and time control at individual project level suggested at [a] and (b] has not been essential firstly because the approach has been based on completion of all major dereliction by a given date as agreed with the Welsh Office and, secondly, because no unit measure of value has yet been found to improve upon existing practice. The National Audit Office’s view is that if the objective is to be achieved in the most economical and efficient manner, management should have the information necessary to assess whether the
6 LAND RECLAMATION IN WALES
costs of projects have been well controlled at both the individual and programme level and to highlight areas requiring management action. Also the Agency believe that the additional benefits to be derived from more sophisticated measurement of outputs have yet to be found and proven in practice because of the technical difficulties of measurement. The evaluation recommended at paragraph 26(e) above should show whether the costs of additional output measures would be justified.
Overall conclusion 28 There were some gaps in the information available to the National Audit Office as a result of the way management information was maintained. However, they concluded that the available evidence on the acreages cleared, the cost and quality ofreclamation, the improvements in the environment and the uses of reclaimed land showed that good value for money had been obtained from the land reclamation programme in Wales. The programme thus far is widely recognised as a notable achievement.
7 LAND RECLAMATION IN WALES
Part 1 : Introduction
Background full costs of eligible expenditure on approved schemes by local authorities, who undertake 1.1 The past century has seen a persistent decline over 90 per cent of land reclamation in Wales. in the traditional heavy industries in Wales. Other bodies or individuals receive grants of This has led to much derelict land, defined in up to 80 per cent (usually 80 per cent] of the the Welsh Office Guidelines to the Welsh eligible net costs incurred, defined as relevant, Development Agency (The Agency) in July eligible expenditure less any enhancement in 1986 as “land incapable of beneficial use land value. Private sector schemes are without treatment”. It can often present a considered for inclusion in the Agency’s serious hazard. Prior to the Aberfan disaster in rolling programme as and when they arise. 1966, only three derelict sites in Wales had been reclaimed with grant aid. Subsequently, 1.3 Since 1976, Agency expenditure on land the Welsh Office spent f29 million on reclamation grants has totalled f230 million reclaiming 7,900 acres between 1966 and 1976 (f32 million in 1992-93) and reclamation of 13,000 acres has been completed or practically 1.2 Under section 16 of the Welsh Development completed [Figures 1.1 and 1.2). At 31 March Agency Act 1975, as amended by section 2 of 1993, a further 11,000 acres were being the Derelict Land Act 1962, the Agency have reclaimed or were in the Agency’s forward been responsible for managing their programme. In addition, updating of the 1988 programme for the reclamation of derelict land Derelict Land Survey revealed a further 9,000 in Wales since 1976 and can pay grants for acres of dereliction, of which some 6,000 acres reclamation to local authorities and other are judged to require little or no treatment - for bodies. The Agency make grants to cover the example, no more than grassing of a site 01 screening it with trees.
Fiaure 1.1 Total Acres reclaimed 1976-77 to 1992-93
Number of Acres 2,000 ,
1,800 -
1,600 -
1,400 -
1,200 -
1,000 -
600 -
600 -
400
200
0- Financial year beginning 1 April
Source: The WelshDevelopment Agency Acres reclaimedare those for reclamationschemes which the Agency agreedhad been substantiallycompleted during eachyear. The pattern can be distorled by the completionof one or two large sites. The figure indicatesthe wide annualvariations in acres reclaimed,but generallythe acreages reclaimedhave increasedin the five years to 1992-93.
8 LAND RECLAMATtON IN WALES
Figure 1.2 Total Reclamation Expenditure 1976-77 to 1992-93 Expenditure(fmillion) 35 ,
u 76 77 70 79 00 31 02 83 84 85 86 87 88 89 96 91 92 FinancialYear Beginning1 April
Source: The WelshDevelopment Agency This figure showsthe pattern of actual reclamationspend from 1976-77to 1992-93without adjustingto a constant price base.Expenditure has increasedsubstantially in the five yearsto 1992.93.
1.4 Most sites programmed for reclamation are public safety is involved, by the end of the initially not owned by a local authority. The century. This time related objective has a major Agency usually fund local authorities to impact on the pace of the programme. The acquire the land, by compulsory purchase if costs and benefits of reclamation are taken into necessary. The Agency are empowered to account by the Agency but a major constraint acquire land themselves, and recently acquired is the availability of funds year by year. Others a number of sites from British Coal, both include the availability of sites and the directly and through local authorities. These complexity of site assessment and were the last sites previously owned by British investigation. This has inevitably had an effect Coal which were regarded as meriting on the way in which the programme is treatment. Much dereliction results from the managed. The aim of the Agency’s land activities of nationalised industries. reclamation programme is to enhance the environment by removal or reduction of 1.5 The Agency’s sponsor department, the Welsh hazards, creation of development opportunities Office (the Department), are responsible for and restoration of amenity. overall policy on land reclamation in Wales. They approve and fund the Agency’s 1.7 The Committee of Public Accounts reported on progmnune and issue guidelines for the the operation of the Derelict Land Grant exercise of the derelict land function. The programme of the Department of the current guidelines date from November 1982 Environment in 1989 (17th Report 1988-89). and are under consideration as part of a wider The Government’s response [Cm 747) accepted review of the Agency’s guidelines. From time the thrust of the Committee’s main conclusions to time the Agency update the conditions and recommendations. The Welsh Office asked under which grant is issued. The latest the Agency to review the operation of the conditions are effective from January 1994. Welsh land reclamation gmnt programme in the light of the Committee’s report. The 1.6 The Agency’s policy objective, agreed with the Agency, in conjunction with the Welsh Office, Welsh Office and announced by Ministers in concluded that the Welsh scheme operated 1990, is to reclaim all significant dereliction, ie satisfactorily. The National Audit Office took meriting treatment because there is an economic or environmental benefit or where
9 LAND RECLAMATION IN WALES
the Committee’s Report into account in their which distinguished it from other reclamation examination and reference is made to it in this schemes. In the light of this and litigation Report where appropriate. involving the Agency and the consulting engineers, the National Audit Office excluded the scheme from their assessment of the value Scope of the National Audit Offke for money derived from the land reclamation examination programme. The litigation was resolved in March 1994 in favour of the Agency. Brief details of the Garden Festival land reclamation 1.8 Against this background the National Audit scheme are at Appendix 3. Office examined the following major issues: 1.10 The local authorities, who undertake most of (al the effectiveness of the Agency in the reclamation work, play a key role in identifying dereliction, in taking steps to planning and implementing much of the deal with it, in measuring the programme and in securing value for money. achievements of land reclamation and in The National Audit Office discussed the achieving their objectives for reclaiming operation of the scheme with a representative major dereliction (Part 2): selection of Welsh local authorities and examined the Agency’s procedures for (b) the Agency’s management of the land ensuring that the authorities gave value for reclamation programme [Part 3); money; we much appreciated their ready (cl the effect of new dereliction on the assistance with our enquiries. achievement of the policy objectives 1.11 The National Audit Office appointed Ove Arup (Part 4). and Partners, Consulting Engineers, to undertake a technical appraisal of a broadly 1.9 The examination focused on the Agency’s representative sample of 18 land reclamation reclamation programme, and did not cover sites, and to advise on performance measures incidental land reclamation undertaken and and standards of land reclamation. The separately funded as part of specific urban National Audit Office also took evidence from renewal progmmmes. Reclamation of the Ebbw Vale Garden Festival site was the largest and other interested parties on the success to date of, and likely challenges to, the reclamation most expensive land reclamation scheme programme (Appendix 11. Their views are funded by the Agency. The circumstances and timescale meant that there were special factors reflected in the Report where appropriate.
10 LAND RECLAMATION IN WALES
Part 2: Effectiveness of the land reclamation programme
2.1 This part considers the effectiveness of the most recent was in 1988, updated to 31 March Agency in identifying dereliction, in taking 1993 by the Agency using the knowledge steps to deal with it, in measuring the gained by their staff) and official bids for land achievements of the land reclamation reclamation assistance; and informally through progmmme and in achieving the objectives for a regular dialogue. Maps, desk studies, officers’ reclaiming significant dereliction (paragraph knowledge and some information gained from 1.5). Figure 2.1 shows the roles of the main local industries are also available. The Agency parties at the various stages of reclamation. cannot compel a local authority to propose a scheme for reclamation but the Agency can programme and undertake schemes on their Identification and prioritisation of own initiative. The ideas put forward by the schemes individual authorities reflect those authorities’ own interpretations and willingness to 2.2 The Agency rely mainly on local authorities to undertake schemes. For example, further major reclamation of slate spoil in the Ffestiniog area identify and notify them of derelict land, both formally through derelict land surveys (the
Figure 2.1: Roles of main parties at each stage of reclamation
Start 01Rolling Agency seekadditions to the rolling programmemid-way through the previousfinancial year. Programme Bidding Local Authority decidewhich loca projectsto prioritise in the new programme. Agency review initial bids and determineinitial priorities for discussionwith Local Authoritiesbefore a final programme is producedfor approval by Welsh Office. [NB: Private Sector schemesare consideredindividually for separateinclusion in the rolling programme].
Scheme Design Agency give approval to a project basedon its proposedreclamation works, costs and end-use.After approval, and at the appropriatepoint in the programme(according to priority), local authority submit a deiailed schemedesign. Some designs, mainly where the schemeis routineor low value, are preparedby specialistlocal authority teams. Other schemesare designedby external consultants.The Agency vet the designto enwe optimum cost and quality, and use of most appropriatereclamation and decontaminationtechniques.
Tendering Local Authority and Private Sector reclaimersare generally responsiblefor tendering.Except where urgentaction is required,all projectsare usually put to tender.Local authority competitivetender proceduresapply and the Agency support schemesonly wherethey considerthe proceduresand the proposedcontractors are acceptable.
Contractworks The local authorities and private consultantssupervise the site works and undertakeproject management.The Agency are informedof financial or technical problemsand must approvevariances. The Agency keep in regular contactwith the progress of schemes,and exelt pressureon local authoritieswhere performanceis not acceptablebut do not overseeday-ta-day site work themselves.Ultimately. the Agency, as paymaster,determine the timing of the various stages:eg designwork, landscaping,etc. The local authorities celtity stage paymentsand completionto the Agency.
Final completion The local authorities and private consultantscertify completion,suppolted by audit celtificates or audited accounts. The Agency operatea financial retentionperiod to reviewthe quality of the work done.After this period the site becomes the responsibilityof the local authority 01the private owner.
Marketing The primary responsibilityis that of the local authority. Recentlythe Agency have becomemore active, through the Propertyand Urban Developmentfunctions. Source: WelshDeveloDment Awncv Land ReclamationProcedures Manual
11 LAND RECLAMATION IN WALES
has not been proposed for reclamation es the Measurement and monitoring of local authority end other interested bodies achievement against targets view it es pert of a tourist attraction. 2.6 The Committee of Public Accounts in 1989 2.3 Every two years, or es budgets and progress of commented on the need to maintain progress the programme permit, the Agency invite local on developing quantitative end qualitative authorities to submit schemes for inclusion in measures of effectiveness, end on the need for the “rolling programme”, giving scheme details good monitoring and management information (ie proposed works. costs, end-uses etc) and for the Derelict Land Grant Scheme in England. their own priorities. The bids are based on sites It is difficult to devise meaningful end useful from the 1988 survey not previously accepted targets and measures for a programme to for the programme end any dereliction which remove dereliction, particularly for has come to light since then. The Agency then non-numerical Cactors such as safety, site aeeese each scheme according to a scoring quality and visual impacts. The Agency have system (see Figure 2.2 which describes this since 1986 sought to review their targets and system in detail end gives en illustration of its measures regularly to improve the assessment use). A significant feature of the system is the of effectiveness. An important measure is weighting [up to 75 per cent] given to safety. progress towards the objective of total The assessment guides the Agency in deciding clearance of significant dereliction by the year whether or not a proposal merits grant aid, and 2000. The Agency state, however, that they in ranking schemes included in the programme. will not seek to accelerate that progress by reducing the quality or value for money of the 2.4 The Agency’s aim is to have a simple system reclamation schemes which they support. end to be objective end consistent through using common benchmarks. They must also 2.7 To assist measurement of progress towards take account of local priorities. The Agency their overall objective, the Agency use five know that their system cannot achieve rigid numerical targets against which to measure accuracy. but it is a valuable tool which works achievement year by year, ie well in bending schemes initially in levels of priority. Agency officers responsible for each . cost per completed acre; region use it for projects within their purview. Consistency throughout Wales is pursued through dialogue with the Director of Land . acreages of new starts; Reclamation, who reviews all proposed schemes. end through monthly departmental . acreages of completions: progress meetings attended by the Director and project officers. . budgeted expenditure for the yew
2.5 The Committee of Public Accounts endorsed . income for the year. the intention in England to reduce the interval between derelict land surveys to between four The Agency renew and update these targets for andsix years,and to considerinterim sample forthcoming years during the compilation of surveys. A comprehensive survey of derelict their annual Business Plan. The targets set for lend provides management information which more than one year ahead are revised in the is essential if funds are to go to priority light of experience when subsequent plans are projects. In Wales, sufficient data were prepared. collected, without undertaking a complex re-survey, to update the main conclusions of 2.8 Table 1 shows that, taking the targets set some the 1988 survey as at 1 April 1993, in three to four months before the start of the year particular to identify dereliction arising since in question for each of three successive years, 1988. the Agency achieved or came within 10 per cent of the target in seven out of 15 cases. These measures have their limitations, however. First. achievements for cost per completed acre and acres completed are influenced significantly by the outcome of schemes which may have been in progress for some years or are practically complete; end at
12 LAND RECLAMATION IN WALES
Figure 2.2: Outline of system for prioritising Land Reclamation projects 1. The Agency have establishedthat the primaw order of priorities in the selectionof projects includedin the land reclamationprogramme should be: (i) removalof hazard (ii) sites with developmentpotential (iii) amenity schemes. 2. Fivefactors are taken into account in assessingthe relative merits at submittedschemes: Hazardscan be posed by unstablelandform. flooding, dangerousstructures or chemicalcontamination. The wide range of hazardsand levels of risk isis reflectedin a system of weighting. The development potential of a site is examinedin relationto the amount of useableland that it will yield, the local demandfor developmentland, the land availableto meet that demandand the past performanceof the palticular local authority in bringing totward the developmentof land. The likelihoodof private sector involvementis assessedas are the broad cost of infrastructureand the potentialreturn of aftervalueto the Agency. The visual impact of the reclamationof any site is assessedin relationto strategic routes. palticularly roads and railways:the community residential,commercial and industrialdevelopment. The visual impact of reclamationan fowiw and heritageis imporfanfin terms of its direct effectwithin palticular sites and as it affects other existing tourism and heritageprojects or activities. Other relevant initiatives such as EnterpriseZones. Valleys Initiative,and reclamationinputs neededto support major projects and programmes by other Agency depallments and outsidebodies. The estimated cods of new projectsare basedon local authority budgetestimates, amended where appropriate by the Agency’s Land ReclamationDepartment. The net cost of reclamationdepends on: (a) type of dereliction (b) specificationand level of treatment (c) schemecost reductionby exploiting mineral and scrap assets, 3. The Agency have evolveda project scaring system which is usedto rank projects submiffedfor inclusionin the new land reclamationprogrammes It is inevitably based on a relatively subjectiveassessment of the factors which are considered.The purposeof the system is to rank the submitted projects by broad bands of priority to ensureas great a consistencyas possible in the selectionprocess. However, the system cannotbe cast in stone. and is thereforeused only as a guide to inform the Agency’smanagement. 4. The most stark featureof the system is the preponderancegiven to Hazards.The scoring system must wwre that a visually unobfrusivesite with no developmentpotential, but proving a major threat to life, takes precedenceover an unsightly but safe urban site of over-riding development significance. 5. The following table is an illustration of how the systemworks to determinethe prioritiesfor two schemes.The first scheme,Pentre Colliery had no developmentpotential. was expensivein terms of cost and was extremely hazardous.Tffe second scheme.Duporf Llanelli,was less hazardousand cheaperbut offeredmore by way of developmentpotential.
Pentre Colliery iluporf Llanelli Hazard Landform(O-100) 100 Flooding(O-100) 20 structure (0-100) Chemical(O-100) 20
Sub Total 100 40
Development Potential Amount useable(O-10) 4 Local demand(O-10) 3 Privatesector potential (O-10) 4 After-valuepotential (O-10) 3
Sub Total 14
Visual Impact Road/raillinks (O-10) 3 6 Local community (O-10) 5 6 Industryand commerce(O-IO) 2 Tourism and heritage(O-10) 2
Sub Total a 16
cost (0.50) 30
Special Features (O-50)
Total Score 108 100 LAND RECLAMATION IN WALES
Table 1: Comparison of forecast and actual for Land Reclamation Performance Targets 1990-91 1991-92 199243
Target Actual Target ACtUFll Target Actual
Costper acre (fOO0) 16.0 16.1 17.5 13.4 20.0 18.2 Acres started 2.000 1,330 2,000 1.534 1,650 956 Acres completed 1,850 1,003 1650”’ I.834 i .4ao(‘) 1,132 Expenditurean 24.5 24.0 22.712’ 22.7 31.0 32.2 reclamation(fmillion) Reclamationrelated 3.0 2.9 6.0 5.3 3.5 1.9 income (fmillion)
Source: WelshDeveloDment Aoencv Notes: (I) Lwgets set some three to four monthsbefore the start of the year in question. (2) Figureoff270 miNionshown in “The Government’sExpenditure Plans 1993-94to 1995-96:A Reportby the WelshOffice (Cm 2215) includesf4.3 million other expenditureon environmentalimprovement. This Table comparesactual achievementwith targets establishedfor the Land Reclamationprogramme. Actual pelformancewas within 10 per cent of the target for sevenof the 15 targets listed.
the time the targets are revised, shortly before dereliction might add to the environmental the start of the year in question, a substantial quality and functional efficiency of areas, for amount of information on the likely outcome is example by improved access or renewed already available. Secondly, the targets infrastructure, thereby increasing benefits of currently in use are largely measures of input occupation to neighbouring land-users and or activity year by yew they cannot fully boosting confidence for investment. measure the effectiveness of the programme in Comparison with past schemes of a similar terms of meeting the policy objective or the nature would aid this type of evaluation. effectiveness of individual schemes. Such outcomes can be assessed only over, and after, 2.11 Data on schemes are collected and reviewed a long period. regularly as part of the “hands on” management of projects. If these data and the judgements 2.9 Although the key components of a scheme made were to be systematically collated, they (cost, hazard, visual impact and development could be used to form the basis of more potential) are identified at the project selection sophisticated measures of output. Such a stage and schemes are prioritised using the system would have the benefits of being Agency’s scoring system (Figure 2.2), the visible, defensible and measurable. It would attributed scores are not reviewed or used to also be an aid to continuity when changes of monitor progress after a scheme has been staff occur. accepted into the programme. The Agency stated that these key components were 2.12 The Agency accept the desirability of more monitored by the officer responsible for a useful quantifiable performance measures and scheme, and discussed with the Director at the together with the National Audit Office are monthly departmental meetings, but no formal considering the way forward. They wish to record was maintained. Such a record would ensure that any new system is as objective as facilitate post-evaluation review to assess possible, that it takes account of the technical performance and lessons learned for feedback difficulties of measurement of the benefits of into new projects. land reclamation and that the benefits would outweigh the cost of implementing and 2.10 The National Audit Office, on the basis of their operating it. consultants findings, suggested that the evaluation of schemes should endeavour to identify the extra activities attracted to an area as a consequence of reclamation. Another factor was the extent to which removal of
14 LANDRECLAMATIONINWALES
Progress to date prime purpose of land reclamation is removal of dereliction, and that development is a 2.13 Land reclamation completed between 1976 and secondary objective. Their policy is to regard 1990 comprised some 9,000 acres. In 1990 the reclamation and development as two separate objective of complete clearance of significant but related steps. Unless there has been a dereliction by the end of the century was possibility of clawback of grant, they have kept announced. Some 4,000 acres were cleared in only basic information for individual the three years to March 1993. An additional completed schemes, and this does not continue 11,000 acres were in progress or in the forward beyond the completion of the reclamation progamme at that date; this substantial works. The aggregate information on end-use acreage reflects the fact that there is often a held by the Agency did not facilitate an overall two-year delay between finishing the work and comparison of proposed and actual end-uses of formal completion, to allow for the initial schemes. At the request of the National Audit maintenance programme, for example Office, the Agency provided details of the landscaping. A further 9,000 acres have been proportion of sites achieving their proposed identified for reclamation by the year 2000 to hard end-use. achieve the main objective. However, in general the worst dereliction has been given 2.15 Of the sites reclaimed, approximately half have priority and the Agency believe later remaining no development potential; and in the rest, sites should be less difficult and less largely because of geology and topography, on hazardous; some 6,000 acres are judged to average only 40 per cent of the reclaimed land require little or no treatment. If the objective is is suitable for “hard” development. Thus 20 per to be achieved, the average annual completions cent of the land reclaimed since 1978 has been required, some 2,000 acres, are in excess of for hard development. This proportion reflects anything achieved to date. This assessment the nature of sites, local authorities’ decisions makes some allowance for the occurrence of on appropriate land use and decisions to new dereliction or contamination but not for maximise value for money where the marginal any need to revisit and reassess sites against cost of hard end-use reclamation would mean a later and higher environmental standards, disproportionate increase in the cost per acre which ae considered in Part 4. reclaimed, although the net cost could be reduced by clawback of grant from increases in land values. Of the 20 per cent intended for Use of reclaimed land “hard” development, some 60 per cent has already been committed to development. The 2.14 End-use can be for development (hard remaining 40 per cent comprised sites: end-use), or to provide a pleasant environment to assist promotion of areas for potential . with marginal development potential investors or for tourism and to improve the (mainly small in remote locations) - living conditions for the local population (soft eight per cent end-use]. Local authorities are required to state the intended use of the land on all applications . requiring further treatment and/or for reclamation grant. At the design stage they infrastructure investment 13 per cent are required to confirm the intended end-use and, where appropriate, the proposed . where the balance is being developed timescale for lease, sale or development. progressively - 9.5 per cent Although end-use is not in the direct control of the Agency, any departure from these . reclaimed within last 18 months - proposals must be approved prior to 9.5 per cent implementation by the Agency, who have absolute discretion to accept or refuse any 2.17 Analysis (Table 21 indicates that the number of proposed schemes. sites which have already achieved proposed end-use has varied according to the types of 2.15 The Committee of Public Accounts in 1989 use proposed, and by county. Thus: referred to the need to consider especially carefully the balance between hard and soft . of land reclaimed for housing, 58 per cent end-uses. Hard end-use is sometimes more is awaiting development, an area of some expensive. The Agency pointed out that the 234 acres in Wales as a whole. This is in
15 LAND RECLAMATION IN WALES
part attributable to the recent downturn in The overall rate of some 60 per cent of sites the property market, although some reaching their designated potential to date can housing land, such as a 24 acre site at be seen as a broad success for the Agency. Gorseinon, West Glamorgan, has not been fully developed over the past 5 to 10 years, 2. 18 The Agency’s overall approach has been that because of the take-up of an earlier the end-use should be built into the design reclaimed site nearby; process, with intentions firmly based on what is achievable given physical site constraints . almost 60 per cent of designated industrial and that which is most desirable in land use land has been developed. Over half of the and cost terms. In practice, this means that developed land was initially transferred to there is a reasonable degree of flexibility to the Agency’s Property Department, who achieve the optimum balance between soft and oversee the development and marketing of hard end-uses. The National Audit Office industrial land to the private sector; found, on the basis of their consultants findings, that there had in some cases been . the development of industrial land insufficient early appraisal of development frequently depends on the completion of options so as to provide a strategic framework infrastructure works such as roads, over for reclamation. For example, at Shotton which the Agency have no control: (Appendix 2). reclamation covered a 531~acre site, with the intention of creating employment uses. It was delayed by two development l by county, achievement ranges from 42 per cent in Dyfed to 92 per cent in South proposals, neither of which in the end went Glamorgan. ahead. This delay was outside the control of the Agency, whose view was that this site was suited to a less ambitious use. It is now being
Table 2: Analvsis of hard use end - Completed schemes by county Developed Land Vacant Land ACM % ACWS %
Clwyd 209 50 206 50 oyiea SY 42 83 58 Mid GlamOrQan 191 56 152 44 SouthGlamOrQan 66 92 6 6 West GlamOrQan 267 71 106 29 Gwent 160 57 136 43 Gwynedd 66 71 27 29 POWYS 13 81 3 19
Total Wales 1053 59 723 41
Developed Land Vacant Land AM.% % ACES %
lndustly 679 60 458 40 Housing 168 42 234 58 Other(a) 206 87 31 13
Source: WelshDevelopment Agency
Note: (a) for example,commerctal, leisure or communityfacilities. The table above showsthe area of reclaimedland for which a hard end-usehas been designatedfor eachcounty in Wales.All areasare in acres and representthe best estimateof the Agency’sLand ReclamationDepartment. They exclude roadsand service areaswithin the developmentareas. Privateschemes are excluded.
16 LAND RECLAMATION IN WALES
developed for indust use by the Agency’s 2.20 The National Audit Office also examined the Property Department and, in the view of the proposed end-uses of schemes included in the Agency, is almost certain to recover the whole Agency’s most recent rolling programme. In of the reclamation costs as after value income. some cases, particularly in mid-Glamorgan and Clwyd County Council pointed out that there Gwent, proposed end-uses apparently had always been a clear after-use for duplicated existing vacant reclaimed land in employment which fitted in with all local nearby areas. A total of about 170 acres were plans and strategic economic development identified as adding to an existing significant proposals. local surplus of land designated for a particular use. The Agency pointed out that a simple 2.19 There were other examples where a clear comparison of this type did not take account of development strategy or proposed end-use had whether the existing land was of the correct been realised earlier, although usually on quality or size or in the right location, and that easier and much smaller sites than Shotton. the development of land was primarily a One such example was Minera, where a matter for the planning authorities in the light successful heritage centre and heritage trail of the market. had been developed. The approach of starting with a reclamation strategy also has uncertainties, given changes in market forces during the reclamation period. A balanced view needs to be taken between the two approaches. LAND RECLAMATlON IN WALES
Part 3: Management of the land reclamation programme
Introduction Agency’s procedures, but two earlier schemes were included for comparison. The National 3.1 To assess the success of the Agency’s Audit Office’s conclusions on the schemes, progmmme in terms of meeting the policy based on the findings of their consultants, as objective in an efficient and economical supplemented by information provided by the manner, the National Audit Office examined: Agency and local authorities, are shown in Figure 3.1. Three schemes are described in . whether reclamation works had been detail in Appendix 2. undertaken in an efficient manner, particularly with regard to the Agency’s monitoring of scheme design and (a) Efficiency and economy of implementation, cost, timeliness and the reclamation works quality of reclamation;
. whether reclaimed land was quickly put to Scheme design and implementation good use; 3.4 The National Audit Office, on the basis of the . whether schemes were completed and work done by their consultants, assessed “after-value” income was released as soon whether reasonable methods were employed to as possible; gather engineering data, how the design and construction were carried out and the degree to l the special features of schemes undertaken which completed works were monitored. They by the private sector. found that usually both a ‘desk study’ and a site investigation were carried out and 3.2 The National Audit Office recognised that considered that good techniques were many of the aspects of performance such as generally employed to gather data. The design contract time, cost of work in progress and of the reclamation works was undertaken by end-use are not in the Agency’s direct control, ‘in-house’ local authority design teams, by but in the control of the local authorities and special land reclamation units such as the private landowners who have the technical Gwent Land Reclamation Joint Committee or and managerial responsibility for the design by consultants. Local authorities chose and implementation of schemes. The Agency’s designers on the basis of experience and their responsibilitiesare for approvingschemes, feeswere usually negotiated. The current managing the programme and achieving good practice is for consultant designed schemes to value for money from it. The National Audit be subject to tender. Environmental issues Office assessed how the Agency fulfilled their such as the quality of landscape and the responsibilities for management of the impact of construction work were considered t pro*-e. as part of the design process. There was an inspection of sites and documentation by the 3.3 As part of their assessment, the National Audit Agency to ensure satisfactory completion of Office selected for examination by their the works but there was no clear plan to consultants a sample of 18 sites. The sample monitor reclamation after completion. Routine was agreed by the Agency and the consultants monitoring of reclaimed sites after completion to be generally representative of the different is the responsibility of the local authority, as is types of land reclamation undertaken further maintenance or repair work. The throughout Wales; most of the schemes had Agency visit sites with after-value potential at been completed or practically completed since least once every year. In 1986-87, they 1985, the date of major changes in the
18 LAND RECLAMATION IN WALES
Figure 3.1 Summary of Conclusions on Sample Schemes
Sample Sites
1. Shatton Steelworks 2. Minera Lead Waste, Clwyd (S) 3. Rheola Works Resolven (P) 4. Cwmbran Canal Phase 2. Gwent Porthmadog 5. McClaren Colliery Phase Ill, Rhymney Valley 6. Pembroke Dockyard Phase II, Dyfed (P) 7. Llandudno Junction Brickworks, Gwynedd 8. White Rock, Lower Swansea Valley (S) 9. Pentre Colliery Rhondda (S) 10. Bierspool. Dyfed 11. Holyhead Harbour, Gwynedd 12. Dow Corning, Barry, South Glamorgan (P) 13. Marine Colliery, Gwent 14. Neath Abbey, West Glamorgan 15. ASL Airflow, Blackwood, Gwent 16. Duport Steelworks, Llanelli. Dyfed 17. St Asaph Gasworks 18. Ebbw Vale Water Softening Plant, Gwent
Start/Finish dates NAOaSSessmeat based on consultants’ lindings and supplementary information
1 ShattonSteelworks Start Jan85 A large (521 acres),difficult schemedelayed by considerationof early developmentproposals. Finish Ongoing Initial site investigationdid not fully identifythe extent of contamination.Cost increasesless than inflationrate. At the time of the NAOassessment, the schemehad yet to yield clear developmentor demonstrategood value for money but the site neededto be readily availableif major companieswere to be attractedto the area (seeAppendix 2, Case1). A 30 acre site has now beensold for the constructionof a gas fired electric power station and the Agency’s Prapelty Depaltmenthave acquireda 88 acre plateaufor industrial use.
2 MineraLead Waste Start Nov85 Successfulclearance of large area of old lead mining wastesand derelict structures.The Clwyd (S) Finish Ongoing developmentmakes a valuable contributionto the local environment.Agency intervention.it is estimated,reduced costs by f300.000 without affectingquality It won a PA Goldenleafaward. Goodvalue for money.
3 RheolaWorks Start Oct85 The schemeremoved an unsightly area of buildings in a rural locationwhich is an increasingly Resolven(P) Finish Mar 86 popular tourist centre. Noneof the intendedend-uses have materialisedto date, a factor being delay in providing the necessaryroads infrastructure,but the schemehas secureda numberof benefitsin relationto the surroundingenvironment and the site has potentialfor inward investment.Experience highlights needfor clear strategic appraisalof end-useoptions.
4 CwmbranCanal Start Aug 91 The schemehas providedan attractive local amenity The site fitted the definitionof being Phase2, Gwent Finish Ongoing derelict,neglected or unsightlyand in palt preventsanticipated dereliction. A 24 per cent increasein cost over tender estimatewas due to poor ground conditionsdiscovered after work started.
5 McClarenColliery Start Nov91 Considerableenvironmental and amenity benefitshave resulted. Overall goad value for money. PhaseIII, Finish Ongoing RhymneyValley
19 LAND RECLAMATION IN WALES
Scheme Start/Finish dates NAOassessment based on consultants’findings and supplementary information
6 PembrokeDockyard Start Apr 66 A successfulprivate schemesupporting local businessesand involving private sector PhaseII, Oyied (P) Finish Ongoing investmentin reclaimingderelict dockyards.Demonstrates good value for money (see Appendix2. Case3).
7 LlandudnoJunction Start Jut188 A diificult site, assembledto meet pressing“bad neighbour’ industrial locationneeds. The Brickworks,Gwynedd Finish Ongoing ditiiculties led to a 15 per cent increaseover tender estimatebut overall a good valuefor moneyscheme.
8 White Rock.Lower start OctEi9 Sympatheticreclamation of unsightlywaste tips aqd derelict ?.tructuresto provide an amenity SwanseaValley(S) Finish Ongoing area and heritagecentre.
9 PentreColliery start oct91 A technicallydifficult schemeto stabilise a colliery tip necessarilyundeltaken to ensurepublic Rhondda(S) Finish Ongoing safety Increasesin cost were justified.A well designedand executedscheme of major benefit to the community(see Appendix 2. Case2).
10 Bierspool.Oyied Start Feb83 Successfulscheme in terms of achievingvalue for moneyand end-use.Changes to the Finish Ott 86 original proposalsresulted in two schemesfor reclamationof derelict quarry and tank farm being undertakenat a reducedcombined cost.
11 HolyheadHarbour, Start Aug 87 The schemefor reclamationof derelict docklandscomplemented the work on the harbour Gwynedd Finish Feb88 which was carried out by the local authority and has providedalternative berthing and loading facilities for fishing vessels,and room for ancillary development.
12 DowCorning. Barry, Start Mar 80 A private schemefor reclamationof derelictdocklands. Additional costs incurreddue to South Glamorgan(P) Finish Jan 81 underquantificationat design Stageand revisionof clients’ requirements.
13 MarineCalliely, start Jan91 The schemeremoved an area of derelictioncaused by mining. The derelictionwas sited an the Gwent Finish Ongoing approachto the GardenFestival and was usedas a Festivalcar park. The local authority intend to developsmall industrialunits on the site in 1994.95.
14 NeathAbbey, Start Dec80 The removalof ugly tips far the provision of a businessand retail park in goad location. Rapid West Glamorgan Finish Au@81 Schemetake-up. and overall schemeaccess was assistedby combinedAgency reclamation and local authority infrastructurescheme. Demonstrates good value for money.
15 ASLAirllow, Blackwood, Start Aug 86 Successfulindividual scheme indicating the value of flexibiliry in the rolling programme.The Gwent Finish Ott 87 high value of grant clawbackis expectedto result in the net cost to the Agency being nil (paragraph3.15). Demonstratesvalue for money.
16 DuportSteelworks, Start Feb87 Excellentscheme transforming an abandonedhazardous steelworks into a very attractivepark Llanelli,Dyfed Finish Jun 89 and residentialdevelooment.
17 St Asaph Gasworks start act 91 A small site adjacentto a schooland private houses.The schemehas removedcontamination Finish Nav 91 and allowed housingdevelopment. Good value for money.
18 EbbwVale Water Start Mar 92 Small-scalescheme with critical timing. Schemeremoved significant dereliction and visual SofteningPlant, Gwent Finish Apr 92 intrusionat low cost.
Sources: “Noteson Land Reclamationin Wales”(Ove Arup and PartnersConsulting Engineers), supplemented by additionalinformation provided by the WelshDevelopment Agency and local authorities.
Note. 1s) Schemesundertaken for safety reasons (P) Privatesector schemes
20 LAND RECLAMATION IN WALES
reviewed all reclaimed sites in Wales to assess level overview of the extent to which schemes any design strengths or weaknesses which are managed within original cost estimates. might be emerging with the passage of time. The nature of the activity means that considerable changes can occur in the content of schemes from original conception to cost completion and this can affect cost. As a series of annual exercises, the Agency prepared 3.5 When a scheme is first proposed for inclusion summaries of all projects completed since in the programme, a broad estimate of its cost 1985-86 (Table 3). The actual project costs is provided by the local authority or private were compared with the estimates approved by owner. Since no detailed investigation will the Agency’s Board at the time schemes were have been undertaken, this estimate is taken into the programme, updated using the reviewed at each subsequent approval stage, ie Retail Prices Index to allow for the time after outline design stage and before detailed between acceptance into programme and the desip but before the local authority goes out dates at which contracts started. This showed a to tender. The Agency’s policy is not to permit total excess of actual over indexed approved a percentage allowance on tenders for cost of 3.3 per cent. The Board’s approval may contingencies, and to reserve the right to be based on the first estimate provided by the review in detail all technical and financial applicant but in some cases changes may take contingencies which occur. The Agency seek place before their approval and in some to ensure that contracts are let at a cost within redesign of a scheme may result in a revised that on which their approval was given; if this Board approval. The Agency’s exercise was is not possible they may approve a higher based on the latest Board approval. figure. The contract figure, whether higher or lower than the approval figure, is then the 3.7 The Agency’s records did not facilitate the approved cost for monitoring purposes. examination of schemes to determine the patterns and causes of variations in cost, nor 3.6 Latest estimates and costs of schemes are was this information regularly available to the reported monthly, and increases in costs, Agency’s senior management. Each project, depending on their value, are approved at however, has a fully documented history. appropriate levels within the Agency. The Agency do not produce management information which readily provides a high
Table 3: Welsh Development Agency’s comparison of reclamation costs for all completed projects with estimated costs
Year of Completion Approved Cost Indexed Approval Cost Actual or EstimatedFinal Cost ml0 f’otlo f’000 1985-86 2,508 3,031 2.674 1906-87 9,433 10.770 9,033 1987-88 4,014 4,554 4,560 1980-09 7,895 8,746 9,594 1989.90 14,681 16,490 16,954 1990.91 11,967 13,683 15,835 1991-92 19,795 22,817 21,074 1992-93 15,661 17,496 19,518
Totals 85,974 97.609 100,842
Source: WelshDevelopment Agency Motes: (I) Index - Retail Prices index (2) Excessof actual or estimatedfinal cost over the Agency Board’sapproval cost indexed to contractstafi date = f3.253million (3.3percent). (3) Costsper acre vay enormouslybetween schemes, and the figures can be considerablyinfluenced by the completionof one or more large schemesin a particularyear.
21 LAN,, RECLAMATION IN WALES
3.6 The only information available on trends in 3.3 In the 18 sample cases, the selection of cost is that shown for costs per acre in Table 1. contractors was always the result of a full This shows that performance targets allowed tendering procedure and the lowest tenderer for the average total cost per acre for schemes was appointed. Original and tender estimates completed in 1992-93 to be 25 per cent higher and final or estimated outturn costs in the 18 than for schemes completed in 1390-91, cases are shown in Table 4. In four of the considerably more than the inflation rate. schemes (Cwmbran Canal Phase I, Pen& However costs per acre vary significantly Colliery, Dow Coming and ASL Airflow] the between schemes and the figures can be reclamation works cost we* 20 per cent more considerably influenced by the completion of in cash terms than the tender price estimate. one or more large schemes in a particular year. The largest increase (39 per cent) occurred in This is reflected in the figures in Table 1 for the ASL Airflow project, and was caused by average actual costs of completed schemes. unexpectedly poor ground conditions. This which fell by 16 per cent from 1990-91 to scheme was relatively modest in cost, and so 1991-92 and increased by 36 per cent from was more sensitive to increases caused by 1991-92 to 1992.93. With such significant individual unforeseen circumstances [small variations between schemes, competition is schemes offer less scope to recoup additional important in controlling costs and obtaining costs by scaling down or redesigning other value for money. elements of the scheme).
Table 4: Comparison of original and at tender estimates wifhfinal or forecast outturn costs for sampled schemes (not adjusted for inflation)
Original Estimate Estimte at Tender Final or Estimated Variance from oldturn cost lb) 10 (0 (4 03 (C) Scheme f’ooo f’ooo f’ooo f’ooo % 1 Shottan Steelworks 4.000 3,000 3.400 400 13 2 Minera LeadWorks 1.368 2,257 2.163 (94) (4) 3 RheolaWork 192 132 127 (5) (4) 4 CwmbranCanalPhase II 150 165 205 40 24 5 McClarenColliery 419 1,046 1,068 22 2 6 PembrokeDockyard 250 277 257 (20) (7) 7 LlandudnoJunction Brickworks 50 230 264 34 15 8 White Rock 200 210 200 (10) (5) 9 PentreColliery 518 3,906 4,966 980 25 10 Bierspool 570 609 635 26 4 ii HalyheadHarbour 130 168 168 12 Dow Corning 141 741 997 156 21 13 MarineColliery 1.000 999 999 14 NeathAbbey PredatesWDA 484 524 40 8 15 ASL Ailllow 70 66 92 26 39 16 Dupoti Steelworks 1,400 1,623 1,624 1 17 St AsaphGasWorks 125 131 104 (27) (20) 18 EbbwVale Water Plant 20 18 18
Source: WelshDevelopment Agency Notes: (I) Thefigures aboveexclude land acquisitioncosts. (2) Thetable indicatesthe complex pattern of cost changesfor reclamationschemes. The significant variationsin some casesbetween the original and tenderestimates occur becauseoriginal estimatesare made beforedesign and often new designs emergefollowing more detailedsite investigation.Iv0 adjustmentshave beenmade for inflation. (3) Themean cost increaseoverall from the estimatesat tenderstage to finat or estimatedoutturn is 9.7 per cent.
22 LAND RECLAMATION IN WALES
3.10 Taking account of costs below estimate on Ebbw Vale Water Softening Plant) were some other schemes, total reclamation costs of substantially delivered to time. The exception the 18 schemes exceeded tender costs by 9.7 was Pentre Colliery (see Appendix 21, where per cent. However, the Agency excludes any the original construction period of 28 months contingency allowance from the tender had been extended to date by over 17 months approval. All the increases were approved by owing to circumstances beyond the Agency’s the Agency. There were also some significant control. The Agency have grant-aided site changes from original programme estimates supervision throughout the land reclamation due to changes in the nature of schemes. The programme. In the other cases, considerable National Audit Office’s consultants, on the delays also occurred at Shotton Steelworks basis of their experience of similar schemes, [Appendix 2); these were attributable to considered that the net costs of schemes consideration of development proposals and examined were satisfactory in relation to the existing mineral mining concessions. Again, works required and sufficiently modest in these delays were outside the Agency’s control. relation to the benefits which flow from removal of dereliction and the direct or indirect encouragement of investment, so that Quality of reclamation good value for money was achieved. 3.13 The National Audit Office, using their consultants, also examined the &ality of Timeliness reclamation by assessing what had been achieved, including the change which took 3.11 The quality and cost of projects are the place during the reclamation process and an Agency’s primary concerns. They regard assessment of the benefits achieved such as completion of individual projects to time, for safety, environmental benefits and subsequent which they must depend on the local development potential. The results are shown authorities and owners who manage most of at Figure 3.2; good-quality reclamation had the schemes, as less important than quality and been achieved in 14 of the 18 schemes cost except where the site is needed for a examined. The standard of reclamation of the particular end-use by a particular date. In their remaining four schemes was assessed as management of the programme the Agency adequate. The findings were broadly in line allow for advancement or slippage of some with those of earlier reviews which the Agency projects and changes in priorities between commissioned. For example, a consultants’ schemes. Slippage may lead to a change in the survey in 1988 concluded that the technical costs incurred but it was not possible to reclamation had been good, although there was identify whether this was a reason for cost a constant need for monitoring techniques and increases. The Agency believe that slippages operations over time. are offset by advancement of other projects, that the cost effect is neutral and that the achievement of tbe main objective is not (b) Recovery of grant on disposal of impeded. The National Audit Office had reclaimed land difficulty in forming a view on whether projects were completed in accordance with 3.14 Where land has been reclaimed for a hard end- original timetables because the nature, use, such as housing or industry, the Agency definition and priority of schemes often are required to claim a sum from the local changed over time for legitimate reasons, and, authority to reflect the increase in the value of although the information was held, the the site [known as clawback). Until April 1993, Agency’s records did not facilitate au analysis the Agency only claimed a maximum of the of the overall position. original grant paid. They now seek to assess their share of the increase in site value by 3.12 The Agency provided information about the reference to input costs. timescale of construction and whether longer periods than anticipated were needed on site 3.15 It is difficult for the Agency to forecast the for five of the 18 sample schemes. The amount or the timing of receipts from clawback National Audit Office’s consultants found that of grant since they cannot always predict four of the five schemes (Minera Lead Waste, which sites will be sold for development and Cwmbran Canal Phase 2, White Rock and when, or at what price. Total receipts have
23 LANE RECLAMATION IN WALES
been scrne 5 to 15 per cent of expenditure, but conditions, and immediately informed the in individual cases clawback can be Agency of site development and their right to substantial: for example the ASL Air flow site clawback; thereafter negotiations on the is expected eventually to have a nil net cost to amuunt of clawback had been resolved the Agency, although the gross project cost, quickly, with little or no evidence of dispute. including land acquisition and reclamation, The only exception was the Penartb Dock was ~250,000. redevelopment where the Agency’s annual monitoring of all sites had revealed that the 3.16 If a local authority wishes to dispose of a site had been sold and tbe Agency were forced reclaimed site they must first obtain the to pursue the local authority for further approval of the Agency, otherwise the Agency information. The position was satisfactory in may withhold grant aid for other land the 18 schemes examined by the National reclamation projects. However poor value for Audit Office’s consultants. money will be achieved if there are unacceptable delays in development, if the 3.18 [n 1992-93, the Agency reviewed all sites Agency are unaware of site development or if reclaimed for hard end-use, by meeting the they fail to secure the maximum possible level local authorities. Previously they had carried of clawback, perhaps as a result of difficult out regular site checks but not a complete negotiations with or poor marketing by the review with each local authority. The review local authority concerned. confirmed that development had not taken place and no clawback was due. New grant 3.17 In addition to the sample of 18 schemes, three conditions, fully operational from January of which [Neatb Abbey, ASL Airflow, and 1994, permit the Agency to register an interest Bierspool) yielded clawback totalling in reclaimed land, effectively prohibiting a sale f417,000, with a further f80,OOO expected, the without their permission. National Audit Office examined a further 20 schemes where after-value income totalling &!,777,750 had been received in the three (c) Private sector schemes years to 31 March 1993 (Figure 3.3). The system for recovering after value was 3.19 An example of a private sector land satisfactory. In 19 of the 20 cases, the local reclamation scheme is at Appendix 2. There authorities had complied with the grant are two main differences from local authority
Figure 3.2 Duality of Reclamation
Benefit
Scheme Poor Adequate GOOd
1. Shottan Steelworks 2. Minera LeadWaste. Clwyd (S) 3. RheolaWorks Resolven (P) 4. CwmbranCanal Phase 2, Gwent 5. McClarenColliery Phase Ill, RhymneyValley 6. PembrokeDockyard Phase 11, Dyied (P) 7. LlandudnoJunction Brickworks.Gwynedd 6. Wille ROCK.Lower Swansea“alley (S) 9. Pentre^. Colliery .^.. Rhondda(5) 10. twspoo1, “YEa Ii. HolyheadHarbour, Gwynedd 12. Dow Corning,Barry. SouthGlamorgan (P) 13. Marine Colliery.Gwent 14. NeathAbbey, West Glamorgan 15. ASL Airflow. Blackwood,Gwent 16. Dupori Steelworks,Llanelli. Dyfed 17. St AsaphGasworks 16. EbbwVale WaterSoftening Plant, Gwent
Some: ‘Noteson Land Reclamationin Wales’(Ove Arup andPartners ConsultingEngineers) This figure assessesfor each schemesampled by the NationalAudit Officeand Dve Arup (see Appendix2) the level of benefitderived from the reclamationprocw. as an indicatorof the quality of the reclamation.In generalthe level of benefitwas high with no schemesgiving poor levels Of
24 LAND RECLAMATlON IN WALES
schemes in the administration of support for 3.20 Before the private sector grant programme private sector schemes. First, the level of grant, started in 1982, a study for the Agency by laid down in the Derelict Land Act 1982, is set Mesa Debenham Tewson, Chartered at 80 rather than 100 per cent. The Act allows Surveyors, concluded that take-up of grants for the adjustment of this percentage by order would normally be low because of the of the Secretary of State with the agreement of contribution required from the recipient of the Treasury. Secondly, the current @ant. Experience has tended to bear out that administrative conditions provide for the grant forecast. The programme has made only a to be paid net. In other words, the assumed marginal impact on land reclamation in Wales; increase in the value of the land is deducted few major sites have been reclaimed by private from the grant at the time of payment. developers. One local authority told the
Figure 3.3: Clawback received in schemes examined by the National Audit Office i) Sampleof 18 schemes Clawbackwas receivedin 3 cases Grant Paid Clawback Net Cost PO00 f’noo f’OO9 10 Bierspool 715 140 575 14 NeathAbbey 692 107 535 1.5 ASLAirflow 250 170(” 80”’
Note: (1) a fufther f80.000is expected.which will reduce the net coat to nil. ii) A further 20 casesin which clawbackhad been receivedwere examined.The amountsreceived by the Agencywere as follows: f’000s FirestoneFactory Site, Clwyd 945 Strand &Quay ParadeArches, Swansea 66 Ynys Field.Rhondda 12 45 Yard Wall, EbbwVale, BlaenauGwent 28 Bierspool,South Pembroke 77 MountainColliery, Lliw Valley 254 LlanhillethColliery, Blaenau Gwent 5 RhymneyBrewely, RhymneyValley 28 Nantbwch.Blaenau Gwent 14 Ely Tip, Rhondda 30 Brynsetih, BlaenauGwent 506 BSCDowlais, Mid GlamorganCounty Council 50 Ynysyplwm,Taff Ely 300 Penrhiwfer,Talt Ely 20 Dow Corning,Vale of GlamorganDistrict Council 13 HaverfordwestHospital, Preseli District Council 251 WaunllwydColliery. BlaenauGwent 50 Pontcynon,Cynon Valley BoroughCouncil 4 PenarthDock, Vale of Glamorgan 115 LlanhillethColliery, BlaenauGwent 10
Total 2,278
Source: The WelshDevelooment Am-w
25 LAND RECLAMATION IN WALES
National Audit Office that several notable 3.25 Local authorities are able to submit monthly potential private sector applicants had not claims for reimbursement of their expenditure pursued their interest after learning of the grant on approved schemes. A final claim must be conditions. supported by a District Auditor’s certificate confirming the accuracy of the total claim. 3.21 On the other hand, the conditions for any grant Private scheme claims must be supported by scheme should not be such that support goes to audited accounts. schemes which would have proceeded in any case without assistance. The risk to value for 3.26 At the start of each financial year, the forecast money in relation to reclamation projects was in-year programme spend, by design, exceeds identified by the Committee of Public the year’s reclamation budget approved by the Accounts in its report in 1989. The Committee Welsh Office. This reflects the Agency’s expected appraisal procedures in England to experience and allows for delays in starting ensure that more penetrating enquiries were schemes which occur commonly on laud made about the need in all cases for grant reclamation work. Monthly forecast and actual assistance at the levels proposed. expenditure records are considered at the regular monthly Agency budget meeting and 3.22 The Agency have always subjected private corrective action is taken when necessary. If sector applications to the same level of additional expenditure is considered necessary scrutiny as those made by local authorities, on one scheme to meet the objectives of that and made no changes to their procedures scheme, compensating savings are sought following the issue of the committee’s report. elsewhere. If necessary, the start of schemes is They recognise that the arrangements at advanced or postponed to try to ensure that the present do not promote private sector allocated budget is fully used but not involvement, and present two risks to value for exceeded. The Agency aim wherever possible money. First, treatment to lower levels than to have a stock of projects at the preparation desirable may be proposed in an attempt to stage to give flexibility. keep costs down. Secondly, the Agency believe that much of the remaining derelict land in 3.27 This ‘hands on’ approach of the Agency private ownership in Wales may have to be through monthly meetings facilitates detailed purchased by local authorities for reclamation financial monitoring. The process ensures that if the Agency are to achieve their objective of the programme is controlled by the Agency clearing all significant dereliction by the end of and maintains its momentum. The National the century; because local authorities are Audit Office noted that the system was an aid eligible for 100 per cent aid on reclamation and to controlling cashflow and resulted in full “se land costs, this route will incur higher public of the annual budget. expenditure costs than if private owners had promoted the reclamation. 3.28 This was the case in 1992-93, as in most other years. El2 million, 34 per cent of the annual 3.23 The Agency and the Welsh Office have been expenditure, was spent in March 1993 reviewing the position on private sector (Figure 3.4). This reflected the Agency’s close schemes against the criteria of both achieving liaison with the local authorities and the necessary land reclamation and securing value latter’s patterns of claiming reimbursement. for money. During their financial audit of the Agency’s Accounts, the National Audit Office were satisfied that expenditure was properly Management and control of the chargeable to the financial years concerned. programme 3.29 Effective management and monitoring of schemes requires reliable up-to-date 3.24 In any year the funds available set the limit of information. The Agency’s computerised potential progress towards the overall accounting system has recently been upgraded objective. The Agency aim to ensure that they and they now possess a full mainframe use all the funds allocated each year and to financial information system. Certain devote these to the schemes of highest priority non-financial information such as timetables which ace capable of making progress. and contractor details for individual schemes has been maintained on a separate stand-alone personal comp”ter. The use of two separate
26 LAND RECLAMATION IN WALES
Figure 3.4: Forecast and Actual Expenditure by month 1992-93
Expenditure (fmillions)
,:::
0 APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEE MAR Month
Source: The WelshDevelopment Agency This figure comparesactual expenditureby month with the forecastmade in the precedingmonth. In nine months actual expenditurewas less than forecast. In the other three monthsactual expenditurewas more than forecast, particularlyin March 1993.
systems has resulted in duplication of effort flexible design of schemes and this will and an increased risk of input error. A recent facilitate comparison between sites, cost Agency exercise found that output from the control and specification of output standards. two systems conflicted slightly and the exercise was extended to reconcile the data fully.
3.30 The Agency are considering the possible implementation of a Geographical Information System to replace the present stand-alone system. This should hold both descriptive textual information such as timetables and contractual details and geographical data, and could record details of end-use and after-value. The introduction of this system, which will be able to interface with the mainframe, should reduce maintenance and input time, avoid reconciliation problems and improve the reliability of data. No formal analysis of the costs and benefits has been carried out. The system could only be justified on the basis of its broader application across Civil Engineering, Urban Renewal and Property functions, in conjunction with existing computer-aided design, hardware and software. The Agency expect that there will be a positive impact on their ability to monitor and control schemes. The visual element of the new system will enable more accurate and
27 LAND RECLAMATION IN WALES
Part 4: New dereliction and contamination
Introduction contamination of land in Wales is due to the industrial uses that created dereliction but it 4.1 This part of the report considers the potential can also result from disposal of waste. effects of new dereliction and contamination on the Agency’s achievement of their main 4.5 Contamination hazards can be: removed from objective. This was set initially by the Welsh the site; decontaminated on the site [for Office on the basis of the dereliction identified example by chemical neutralisation); by the 1988 Survey of Derelict Land by the encapsulated in an inert barrier; or made Welsh local authorities. They have also made inaccessible. The precise method of treatment due allowance for dereliction which has depends on the particular hazard encountered, occurred since 1988. the resources available, the nature of the site and the intended end use. New treatments and 4.2 Technological and other developments such as techniques and the development of existing greater concern for the environment techniques for more precise removal of hazards continually extend the scope of possible (for example, the use of vacuum extraction] reclamation schemes. Forecasting future offer scope for improved cost-effectiveness and volumes of derelict land is complex and create a demand for the benefits they offer. subject to many uncertainties and requires extensive use of judgement. Not all the 4.6 Two surveys of the problem of contamination Agency’s land reclamation work since 1988 in Wales were commissioned jointly by the was identified from the survey. New closures, Welsh Office and the Agency and were particularly of mines and steelworks, have undertaken by the University of Liverpool’s placed additional demands on the land Environmental Advisory Unit. The first, in reclamation programme. 1982, estimated that there were 703 contaminated sites covering 9,360 acres. 66 4.3 The local authorities agreed that most existing sites contained significant hazard levels. The dereliction is identified and programmed. second survey, in 1988, showed 746 Some felt that a smaller, but potentially contaminated sites, covering 10,000 acres, significant, volume of land currently in including 44 significantly hazardous sites operational use could easily bccomc dcrclict. (Table 51. These surveys have been used For example, the sudden closure of Brymbo extensively by local authorities and others in steelworks in 1991 created a large new formulating proposed bids for grant support, dereliction problem. It is usually difficult to and by the Welsh Office and the Agency to enforce clean-up because few powers exist to assess bids and determine resource compel reclamation by users and owrws. requirements. However, many of the sites identified are not eligible for grant aid because for example they are currently operational. Contaminated land One local authority pointed out that the surveys excluded sites under 0.6 acre or in “beneficial use”. Another stated that the 4.4 In addition to the Agency’s current programme, there is a potential future burden accuracy of records maintained for contaminated land in private ownership must with “contaminated” land, defined as land be open to doubt because such contamination containing material presenting a potential may often be concealed by the owner for a hazard to site users, site developers, the variety of reasons. environment or building structures. Contaminated land need not have been used at 4.7 The Agency have cnmmissinnwl a new snwey all or it may be in operational use. Natural to quantify the number of potential sites which contamination, particularly by heavy metals, are contaminated and derelict. This will and acidity, is not uncommon and there is au broadly repeat the site workload assessment of extensive overlap between the problems of the 1988 Environmental Advisory Unit Survey “dereliction” and “contamination”. Much of the
28 LAND RECLAMATION IN WALES
Table 5: Analysis of potential contaminated sites by county - 1982 and 1988
COUllly Total No of Sites Total Area (Acres) Significant Contaminated All ContaminatedSites Sites Meriting Development 1982 1988 1982 1988 1982 1988 1982 1968
Clwyd 127 138 1,300 1,200 19 9 14 14 Gwynedd 45 46 400 500 10 6 6 6 POWYS 38 37 400 400 2 0 0 0 Dyfed 117 116 1,300 1,300 a 6 5 7 Gwent 123 135 1,300 1.400 IO 7 2 1 WestGlamorgan 69 91 2,600 2.700 1 2 0 0 Mid Glamorgan 125 141 1,600 2,000 14 13 4 4 SouthGlamorgan 39 42 500 600 2 1 1 1 Total 703 746 9,400 10,100 66 44 32 33
Source: 1982and 1988Environmental Advisory Unit Su~eys of ContaminatedLand in Wales. This table shows an increasesince 1962in the total number of likely coniaminatedsites in Wales but a fall in the numberof likely significantly contaminatedsites.
and also seek to identify land that could resulted in the local authorities having little or become vacant or derelict and to analyse the no prospect of achieving development gains. scope for the contaminated land becoming Land could thus continue to be blighted, for an derelict. unknown period, without the information essential to a solution.
Environmental protection 4.9 The Agency recognise this risk but consider that, with the results of the 1982 and 1988 4.8 An aim of the Environmental Protection Act surveys, Wales has the benefit of ten years’ 1990 is to ensure that users of natural experience in compiling information on resources are fully aware of the costs and contaminated land. The availability of this consequences of their use. An intended information has not yet caused significant consequence of the Act was the creation of problems in Wales, although in one case the statutory land registers by local authorities, possibility that a site was contaminated listing all sites subjected to defined potentially reduced the Agency’s disposal price. contaminative use. Following consultation exercises, the Government decided not to proceed with the proposals for registration as Natural changes in the Agency’s they stood. Future Government policy programme regarding land that may be contaminated is being reviewed by an inter-departmental 4.10 The major early impetus for reclamation was committee. However, developers and insurers’ the safety problem arising from coal and knowledge of the potentially large contingent metalliferous spoil and slag heaps. The Agency liabilities could still deter interest in recycled since 1976 have concentrated on the clearance land unless such risks can be covered by of colliery and other works sites and the adequate insurance. Two local authorities restoration of spoil heaps. They have made thought there could also be a deterrent effect substantial progress in clearing the backlog of on local authorities. One said that the large-scale safety and unsightliness problems. possibility of third party claims from owners of The emphasis of work has moved to include adjoining land which suffered from the spread the less visible, mcxe complicated problems of contamination from the subject land might caused mainly by contamination. For example, deter local authorities from participating in reclamation schemes, especially if the new clawback arrangements (paragraph 3.14)
29 LANDRECLAMATIONLNWALES
a site can have hidden hydrocarbon and oil quality. The National Rivers Authority are penetration problems of greater significance responsible for ensuring the quality of than visible dereliction. groundwater. They undertake both regular and random monitoring of the levels of various chemical contaminates in water supplies. The Standards of treatment Authority has a wide remit to take action to compel polluters to take remedial action and to 4.11 The best method of dealing with prevent further contamination. The Agency, contamination is to use a risk assessment local authorities and developers view the approach which should identify key potential likelihood of enforcement action by the sources, targets and exposure pathways; define regulatory authorities as a spur to preventative acceptable residual levels, and identify the work, creating requirements for higher appropriate treatment. The standards of output standards than might otherwise apply. The and levels of treatment are major issues in the effect will be to increase the cost of work for current decontamination debate. the Agency.
4.12 The main United Kingdom body responsible for defining and promulgating standards of Implications for the Agency’s decontamination is the Interdepartmental programme and objective Committee on the Redevelopment of Contaminated Land. The Committee have 4.15 The Agency accept that they need to address developed, for a range of contaminates, a series the pressures arising from changing standards, of measmes of acceptability, based on “trigger” increased environmental regulation and and “action” points. Below the trigger point, no uncertainties in the investment and property significant problem exists and no action need markets and are doing so. They will not make be taken. Above the rather higher “action fundamental changes to workload assumptions point”, there is an immediate need for or implement radical changes in their decontamination. Between these points, procedures until the results of the new survey landowners must decide whether action is are known. desirable, given the likely costs and benefits and the proposed end use. 4.16 Some additional reclamation work may well be necessary. More demanding standards will 4.13 This system has been in place for several years. probably mean increased unit costs. These It has been criticised as too vague and could also arise from the growing emphasis on, judgemental. A wide range of different and need for, development potential for treatments can be consistent with the reclaimed sites. The local authorities Committee’s guidelines. There are no formal interviewed felt that, while doubts about plans to replace the system but the Committee contaminative use persist, and with increasing are considering the possibility of revising pressure on them not to offer greenfield sites tolerance levels. The European Commission is for development, there will be additional bids also researching the area of contamination for grant aid to the Agency to enable standards.One local authoritysaid there was a contaminated sites to be reclaimed to the need for precise guidelines on the treatment higher standard required for development. necessary for a given set of circumstances. The More routine monitoring of developed sites Agency ace testing their own draft manual of could also be required to ensure compliance best practice for dealing with contaminated with environmental regulations and standards. sites to encourage consistent standards of Only if the amount of additional reclamation treatment and approach throughout Wales. work is small is it likely to be completed by the end of the century.
Environmental regulation 4.17 The Agency’s resources are determined by the Welsh Office, who assess the Agency’s bids 4.14 Tighter environmental regulations and against other demands. A recent enforcement will affect the standards required generally-circulated Welsh Office consultation in future reclamation work and increase the paper stresses the stronger application of the cost of work for the Agency. An illustration of “polluter pays” principle, both by securing this is where there is a potential threat to water financial contributions from derelictors
30 LAND RECLAMATION IN WALES
towards clean-up costs, and by the more become more definitive, the resources rigorous enforcement of planning consents. In available will need to be targeted effectively the short term, this is unlikely to reduce and the work monitored by using the most pressure on reclamation resources. sophisticated performance measures available. There will also be a need for more extensive monitoring of sites before, during and after Implications for systems and reclamation. Nonetheless, grater flexibility to management respond to changing standards, workloads and resource availability is crucial to achieving the overall objective speedily. 4.18 The growing focus on securing specific and more exacting standards of reclamation (in 4.19 The Agency and the Welsh Office are aware of particular decontamination] will have direct the issues discussed in Part 4 and are consequences for the Agency. As demands on considering the way forward. land supply grow, and the standards of clean-up associated with different end-uses
31 LAND RECLAMATION IN WALES
Appendix 1 Parties Consulted in Preparing The Report
Local Authorities
Clwyd County Council Gwynedd County Council Mid Glamorgan County Council Arfon Borough Council Alyn & Deeside District Council Cyngor Dosbarth Ceredigion Llanelli Borough Council Neatb Borough Council Rhondda Borough Council Wrexham Ma&r Borough Council Gwent Land Reclamation Joint Committee covering four Borough Councils and the County Council of Gwent
Other Parties
Royal Institution of Chartered Surveyors Snowdonia National Park Authority.
32 LAND RECLAMATION IN WALES
Appendix 2 (Case 1) Examples of Land Reclamation Projects
Local Authority: Clwyd County Council Area: 215 hectares Dereliction former steelworks Reclamation: demolition, earthworks and capping of contaminated waste deposits
Intended After Use: industry, amenity, public open space Date of Application: 1982 Reclamation completion Date: ongoing Development (if any): power station under construction Total Cost, excluding ShottonSteelworks site belore reclamation land acquisition: f3.4 million (estimated)
Scheme description 1 A large former steelworks acquired with Agency finance by Clwyd County Council in 1982-83. When the scheme was taken into the programme, the estimated cost of reclamation was f5 million, of which El million was for land acquisition. Reclamation of the site was intended to facilitate new employment uses and remove visual intrusion. The site is exposed and a large expanse of estuary salting lies to the north and west. Reclamation process 2 Phase 1 of the reclamation, based on an f80,OOO site investigation study, was concerned with levelling and vegetating the top surface of land. The primary objective of this phase was to generate as much land for new employment as possible, the original closure having been the largest single job loss in Europe. However, the location, difficult servicing and exposed position meant that it was likely to come on stream after the Agency sites at the neighbouring Deeside Industrial Park phases I and IL 3 Further progress on reclamation was delayed by the consideration and eventual abandonment of two development proposals. First, the site was submitted, in competition with many others, as the location of the Welsh Garden Festival: the Secretary of State decided in favour of Ebbw Vale. The second proposal by a private developer for a high quality mixed use development was dropped after a competing development was granted planning permission by a neighbouring local authority. Both of these delays were outside the Agency’s control. 4 The Agency financed further phases of reclamation including a previously licensed waste disposal site. During the course of works, contamination was found to be more extensive than earlier investigations had suggested. Some of this was treated using vacuum extraction. The remaining areas of the site will be developed, taking account of the existing site conditions. Reclamation outputs 5 A National Power Generating station is under construction on part of the site and the Agency’s Property department have acquired the major 66 acre plateau. 6 The reclaimed Broken Bank tip (147 acres) consists of large surfaces with gentle batters down to the saltings. No roads or drainage infrastructure have been built within the scheme itself.
33 ; LANII RECLAMATION IN WALES
7 Because insufficient cheap growing medium for the Broken Bank tip was readily available in the area, the Agency and Clwyd County Council decided to wait for the waste material expected to arise from the works on the proposed Dee Crossing. The contained toxics in Broken Bank limit its development potential to about 20 acres near the South-Eastern corner. 8 There are pockets of landscaping, mainly along the batters, consisting of planting of gorse and broom, which appears to be appropriate. The plateau surfaces are mainly slag gravel with no topsoil. Grass cover is sparse or absent in phase II but fairly well established in phase I. 9 The scheme provides a large site which would be suitable for major industrial development. Further infrastructure investment would be required to enable it to be developed as a light industrial park. Either use would seem appropriate in the surrounding environment.
Scheme assessment 10 A difficult scheme which was delayed by consideration of the early development proposals. The initial site investigation did not fully identify the extent of contamination but this was undertaken before the perception of the problem was heightened by the proposed introduction of the Contaminated Land Register following the passing of the Environmental Protection Act 1990. The rate of cost increase of 13 per cent (f400,OOOl over the tender estimate is less than the rate of inflation over the period, beginning in 1984, since tenders for the various phases of work were submitted. At the time of the National Audit Office assessment the scheme had yet to yield clear development or demonsbate good value for money. The scheme will add to the stock of vacant industrial land in the area. However large sites need to be readily available if major companies are to be attracted to the area. The Agency’s Property Department are now developing the site for industrial use and they expect to recover the whole of the reclamation costs as after value income. A 30 acre site has been sold for the construction of a gas fired electric power station. Clywd County Council pointed out that the reclamation had been technically complex but with a clear after-use for employment which fitted in with all local plans and strategic economic development proposals.
ShottonSteelworks site alter reclamation
34 LAND RECLAMATION IN WALES
Appendix 2 (Case 2)
Pentre Colliery, Mid Glamorgan
Local Authority: Rhondda Borough Council AEEl: 56 hectares Dereliction: unstable colliery tips Reclamation: earth and drainage works Intended After Use: afforestationlgrazing Date of Application: 1982 Reclamation completion ongoing Development (if any): n/a Total Grant: f4.97 million (latest approved tender)
Pentre Colliery site before reclamation
Scheme description 1 The site is on a steep valley side above the former coal mining village of Pentre, Mid Glamorgan. It is in a rural setting bordering an urban area. Before reclamation, the site consisted of an unstable tip; several movements have occurred in the past which have caused the death of a child as well as damage and demolition of property. The reclamation works were aimed at providing public safety and restoration of an unsightly area of tipping which had a serious detrimental effect on the general environment. Reclamation process 2 The site had been the object of previous localised stabilising reclamation works designed by a firm of engineers approved by the local authority. The Agency insisted upon the role of the designers being upgraded from that of adviser on stability to that of engineer to the contract to prevent confusion for liability should a stability problem occur during the major reclamation project. The site posed some of the most difficult stability problems faced by the Agency, as the tips were set on a steeply rising hillside. The reclamation works were intended to remove some of the tipped material to the top of the hill and regrade the remainder to blend the tips in with the hillside. In the early 1980’s, the original works were estimated at f518,OOO excluding design, supervision, administration and land acquisition. On completion of design in 1080 howcvcr, the Agency’s Board approved a revised more extensive project estimated to cost E4 million. The final outturn is likely to be f5 million. The cause ofthis increase is due to the complexity of the earthworks on the site. The original construction period of 28 months had been extended to date by over 17 months owing to circumstances beyond the Agency’s control, ie the bankruptcy of the original contractors and additional excavation from the tips. Reclamation outputs 3 The reclamation works have resulted in a major regrading of unstable dangerous tips, provision of new drainage to the hillside and capping of mineshafts. The scheme successfully created a safe environment and restoration of an unsightly area of tipping. The engineering works appear to be well designed and executed. Batters, berms and drainage features are well constructed. The site is not yet fully vegetated and so its final appearance cannot be judged. However, it is clear that it will be a major improvement on the previous landform.
35 LAND RECLAMATION IN WALES
Scheme assessment 4 A technically difficult scheme which was necessarily undertaken to ensure public safety. Increases in costs were justified. The final scheme appears to be a well designed and executed land reclamation scheme of major additional benefit to the community. Without Agency assistance the scheme would have been a major financial burden for the land owner or the local authority.
Pentr0Colliery site alter reclamation
36 LAND RECLAMATION IN WALES
Appendix 2 (Case 3)
Pembroke Dockyard Phase 2, Dyfed
Local Authority: Private scheme located in Dyfed County Council Art?% 1.53 hectares Dereliction: derelict dockyards Reclamation earthworks and reconstruction of dockwall Intended After Use: industry Date of Application: 1985 Reclamation Completion Date: 1990 Development (if any): industry/dock uses Total Grant: f257,OOO
Pembroke ilokyard site before reclamation
Scheme description 1 The site within the Govan Davies Group Dockyard at Pembroke Dock, and within an enterprise zone, consisted of disused and derelict slipways, in places with substantial vaulted sub-structures. The scheme was undertaken to continue reclamation of the Dockyard at Pembroke Dock in order to provide deep water wharfage. Reclamation involved the construction of a new quay wall, filling a slip and adjacent jetties to a similar level, and the strengthening of the existing jetty walls by underpinning. 2 The cost ofthe work was estimated at c726,000, with grant-eligible works totalling some E401,OOO.The estimated enhancement of the site was valued at E54,000, leaving a net cost to the developer of E347,OOO.As this was a private scheme, the Agency offered grant at 80 per cent of that net cost; a total of E277,OOO.On completion of the project, the actual gross cost W.SSE375,OOO (f322,OOO net). The Agency grant-aided 80 per cent of the net cost, namely E257,OOO. Reclamation Process 3 The reclamation works were designed by Consultants, chosen on the basis of negotiation. The contractor was chosen by competitive tender from a select list of six. In both cases the Agency approved the private owner’s choice. 4 The reclamation works included breaking out of sub-structures, infilling of disused docks and slipways, demolition of disused installations and reconstruction of a derelict dock wall. Reclamation Outputs 5 The site now comprises a concrete and tarmac quayside behind a substantial concrete quay wall. Dredged aggregates are stockpiled at the southern end of the quay. Vessels are loaded/unloaded by crawler cranes. The quay appeared entirely satisfactory and robust. 6 The reclamation works, coupled with additional development, have allowed the dockyard to accommodate 30,000.tonne ships. Shortly after the completion of phase I in 1985 a local firm was able to make use of the dock to supply Esso with heat exchangers manufactured close to the dock.
37 LANE RECLAMATION IN WALES
Scheme Assessment 7 A successful private scheme supporting local businesses and involving parallel private sector investment. The scheme demonstrates good value for money.
Pembroke D&yard site alter reclamation
38 LAND RECLAMATION IN WALES
Appendix 3 Ebbw Vale Garden Festival Land Reclamation Scheme
EbbwValeGarden Festival site before reclamation
1 Ebbw Vale was announced as the site for the Garden Festival of Wales by the Secretary of State for Wales in November 1986. Reclamation of the site was the largest land reclamation scheme funded by the Agency. The site is over a mile in length and 236 acres in area. It was formerly the site of an iron and steel works and several collieries. The land reclamation scheme differed from other schemes because of the factors resulting from the policy decision to locate the Garden Festival there, the special festival requirements and the need to complete reclamation by a specified date. 2 The Agency had agreed to fund the reclamation in stages of the ZOO-acreformer British Steel site at Bbbw Vale before it was chosen for the Garden Festival. Total costs of reclamation were estimated at f7.7 million. Phase 1 of the project was taken into programme in June 1986 at an estimated cost off3 million to include land acquisition. 3 The Garden Festival site was acquired by Blaenau Gwent Borough Council with Agency land reclamation grant aid under the Agency’s normal conditions. The first phase of reclamation was then financed in the same way. The second phase was undertaken directly by the Agency at the request of the Welsh Office, who provided additional funds to reclaim the site above the f3 million already included in the programme. The revised estimated cost of reclamation, taking account of the different requirements for a festival site, was E9.7 million. In January 1987 the estimate was revised to f10.9 million, including land costs. 4 Blaenau Gwent Borough Council, with the approval of the Agency, had appointed consulting engineers to undertake the initial feasibility studies. When Ebbw Vale was selected for the festival, it was decided to continue with the same consulting engineers. 5 A total of 17 contracts, varying from site investigation to planting, were awarded during the course of the reclamation works. The project was completed on time but problems were encountered and costs increased, especially silt- p~epa&url LUSLB.The final cost of reclamation was f 20.5 million. The Agency pursued a claim of negligence against the consulting engineers to recover a proportion of the additional costs incurred, and in March 1994 negotiated a settlement amounting to f3.7 million plus costs off0.8 million.
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1 LAND RECLAMATION IN WALES
6 End-use proposals for the Garden Festival site include a mixture of housing (34 acres), business (48 acres) and landscaping (118 acres). The Agency have a direct interest in the post-festival developments through its clawback agreement with Blaenau Gwent Borough Council. A joint venture has been formed between the Agency, Blaenau Gwent Borough Council and Gwent County Council to manage the development.
EbbwVale GardenFestival site after reclamation
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