§ Andrew BennettTo ask the Secretary of State for Transport whether all the compensation to householders resulting from the construction of the M60 has been paid; what steps are in place to reduce the fees for agents involved in these pay outs; and whether claimants will be paid interest on late pay outs. [102642]
§ Mr. JamiesonI have asked the Chief Executive of the Highways Agency, Tim Matthews, to write to my hon. Friend.
Letter from Tim Matthews to Andrew Bennett, dated 17 March 2003:
I have been asked by the Transport Minister, David Jamieson, to reply to your recent Parliamentary Question asking if all the compensation to householders resulting from the construction of the M60 had been paid; if there are any steps in place to reduce fees for agents and if claimants are being paid interest for late pay outs.I believe that you are referring primarily to compensation under Part I of the Land Compensation Act 1973 (as amended). Such claims, for the depreciation in the value of property arising from the use of a new or altered highway, can be made for a period of 6 years from the first claim date which falls 12 months after the road is opened to traffic. In the case of the M60 Manchester Outer Ring Road construction was undertaken in four contracts, resulting in a variety of claim periods.The main body of construction work (Contracts l&3) led to the road being opened on 30 October 2000 and a first claim date of 30 October 2001. We have received over 14,000 claims to date and continue to receive them at the rate of approximately 300 per month Around 1,000 claims have been settled so far. On Contract 4, for which the claim period closed last month, we have 22 cases awaiting settlement. Another 322 cases remain unsettled on Contract 2, for which the claim period remains open until December 2004. In all cases interest, calculated from the date the claim is received (or the first claim date, if later) until the date that compensation is paid, is added to the compensation.In addition to Part 1 compensation, we have also compensated people for the acquisition of land and property in connection with the construction of the road. Around 200 such cases have yet to be finalised. In these types of cases interest, calculated from the date of entry on to the land until the date that compensation is paid, is added to the compensation.537WFollowing the abolition of the non statutory Ryde's Scale, which fixed surveyors fees in proportion to the level of compensation paid, claimants' surveyors must now demonstrate that the fees proposed have been properly incurred, are reasonable and proportionate to both the compensation at stake and the complexity of the claim, and commensurate with the time, effort and expertise required to deal with the case.