Cardiff Harbour Authority Agreement Issues

In March 2000 an agreement was made between the former Cardiff Bay Development Corporation (‘CBDC’) and Cardiff Council (‘the Council’) about the management and operation of the Barrage, the outer harbour and the inland lake in Cardiff Bay (‘the undertaking’).

The agreement, which was made pursuant to section 165 of the Local Government, Planning and Land Act 1980, included provisions to review the arrangements set out within it after an initial 5 year period, and, if necessary, to amend them.  The provisions also enabled either party to call for termination and, if that were to happen, for the undertaking to be transferred back to CBDC or for it to be transferred at CBDC’s direction to a third party.  The Assembly gave its approval to that agreement as was required under the 1980 Act.  The National Assembly for Wales (‘the NAW’) assumed CBDC’s rights and liabilities under the agreement.

In preparing for that review, Assembly Government officials sought to establish which bodies could receive the undertaking if the agreement was terminated.  In that context independent legal opinion was sought and this raised questions about whether the undertaking could be transferred to a third party and, if not, the implications for the remainder of the agreement.

For clarification, it is necessary to seek the assistance of the Court and a number of alternative heads of relief are being sought - including a declaration that the entire agreement is valid, or a declaration that some or all of the transfer clause can be severed leaving the rest of the agreement intact. The Assembly Government has decided, with the agreement of the Council and the WDA*, to make an application to the High Court and this is being submitted today.  Although the NAW will be the claimant and the Council and the WDA the defendants, the distinction between them in this case is a matter of form and the exercise is being taken forward on a fully amicable, partnership basis with the Council and the WDA.  
The Assembly Government, the Council and the WDA wish to resolve this matter as soon as is practicably possible.  During the proceedings, it will be business as usual but no party intends to comment substantively on the issues while proceedings are ongoing.  I will, however and as appropriate, keep the Assembly and/or the Economic Development and Transport Committee and Audit Committee, informed of significant developments .  

There are no similar issues in relation to the four other agreements entered into by CBDC prior to its wind up with Cardiff Council, the Vale of Glamorgan Council, the WDA and the Countryside Council for Wales.

*   The WDA is involved as they could be part of the solution having been made a residuary body for CBDC’s property rights and liabilities).