Charities (Protection and Social Investment) Bill [HL]

Debate between Baroness Hollis of Heigham and Viscount Eccles

Monday 20th July 2015 Lords Chamber

[Baroness Hollis of Heigham (Lab)]

The noble Baroness, Lady Gardner, made a very powerful point about the Minister considering the opinion of the House. Whether my noble friend will vote or not will be her judgment call.

The noble Lord, Lord Cormack, was absolutely right—this is the right amendment to the wrong Bill. The reason it is the wrong Bill is that we are actually back to front on this. I speak as chair of a housing association; I will be time-expired in the autumn. I remind the House that the bedroom tax is forcing up arrears; tenants’ incomes have been not only frozen but cut, given some of the Budget changes; rents will be reduced; the HCA grant no longer makes new build possible; and we are increasingly dependent, therefore, on arrangements with local authorities, private bodies or charitable bodies to get the land on which we can continue to build affordable homes. Given the proposal to add the right to buy, I am going to be spending a lot of the rest of this month trying to see whether a housing association such as mine will actually be around in a few years’ time. In fact, I think it will be gutted.

As I say, I hope I am wrong. I very much hope, as the noble Lord, Lord Cormack, said, that the other place will make adjustments to the Bill. We all want to promote home ownership and the shared ownership that housing associations can build; that would be the best way forward. None the less, we should protect and ring-fence housing associations, which can make an unequalled contribution, particularly in rural areas, to the viability of communities and enable young people who have nowhere else to rent and can never afford to buy to stay in villages and small towns. My local authority has lost nearly 40% of its best stock—semi-detached houses, 12 to the acre, overlooking the park where the sun always shines. They have gone and we are left with maisonettes and walk-up flats. The properties that we sold have been recycled and are now occupied by three or four students—often creating some nuisance, I am afraid, for the next-door neighbours, but with great profits to the owners. That was never the intention.

We have a dilemma. If my noble friend is satisfied with the Minister’s reply and does not think it right to test the opinion of the House on whether such protection for charities should be foremost in our minds when considering the housing association Bill, we will have missed an opportunity. Our colleagues in the other place should take into account the worries and views of this House, expressed so powerfully by the noble Lords, Lord Kerslake and Lord Best, and my noble friend Lord Campbell-Savours. I do not usually use phrases like “sending a message” or “sending a signal” but we have an opportunity to say that, while we accept that this is not the right Bill to carry an amendment like this, the House is extremely concerned about the future viability of housing associations. Housing associations such as mine, which do not deal with stock transferred from local authorities, were charitable from the beginning. We may lose that stock and find that we do not exist as a charity in a few years’ time; and here, we have a Bill that is about charities.

I understand the well founded misgivings of the noble Lord, Lord Cormack—he may be right intellectually—and the concerns of the noble and learned Lord, Lord Mackay of Clashfern, with whom this issue can be discussed further. He is absolutely right to say that CPO powers have always been used, but they none the less have to be verified all the way up to ensure that they are being used appropriately. As a local authority leader I have, in the past, gone for CPO powers. However, with those reservations, we need today to say that we are worried about charities. We could say to the National Trust that we will take its assets to refurbish the Palace of Westminster. Why not? Dealing with a grade 1 listed building would be a perfectly legitimate use of the trust’s assets, but no one would go down that route. However, we are doing something similar to housing associations whose distinctive characteristic is that they are charities, and whose purpose, rationale, finances and viability may be deformed by proposals that are going to come our way.

In the light of everything that has been said—including the powerful remarks of the noble Lord, Lord Cormack—if this House decides to accept my noble friend’s amendment and to say to the other place, “Think again before you go ahead with that Bill”, on this occasion, that is the right thing to do.

[Viscount Eccles (Con)]

My Lords, if signals are to be sent, Hansard is the place in which they can be read. Ministers on our Front Bench are also very good at passing on the feeling of this House. If we were to pass this amendment, we would be placing a duty on the Charity Commission that it would never be able to perform. It only needs Parliament to make some decision or another for this amendment to become inoperable by the commission. As the noble and learned Lord, Lord Hope of Craighead, said, the commission must be hoping that the amendment is not passed, because it would in no way be in its interests if it were.

Local Government Bill [HL]

Debate between Baroness Hollis of Heigham and Viscount Eccles

Wednesday 14th July 2010 Lords Chamber

[Baroness Hollis of Heigham]

I can only say that that is not the view that I or my other friends have been given by senior members of the district council. Perhaps I may also say, for what it is worth, that if the noble Lord were to ask his noble friend Lord Tope whether that was the view that he was given when the delegation from Exeter came to see him, I think that in all honour the noble Lord, Lord Tope, would support the comments that I am making.

I come next to the noble Earl, Lord Cathcart. He asked, perfectly reasonably, “Why these two councils and not other councils?”. The reason why this amendment was tabled and the reason—I shall come on to this—why this should go through Parliament is precisely that, as a number of noble Lords have said, the benefits of unitary status that Norwich and Exeter have sought can be achieved by partnership arrangements. That is why we are talking about Norwich and Exeter. We are not talking about other places that are not seeking such arrangements. We are talking about two authorities that have been denied unitary status, which they believe would produce best value for money and the most effective delivery of services. In place of that, constructive partnership arrangements can have the same effect. That is why this amendment concentrates on those two authorities.

I would be delighted if other district councils in Norfolk, in Devon and across the country equally benefited from the ability to disaggregate county council statistics about the value for money, effectiveness and cost of the delivery of services in their district. That would be splendid. However, it is these two authorities that are being told that this is an effective, value-for-money alternative to unitary status—hence the amendment.

Why are we saying that this should go through the Secretary of State? The noble Baroness, Lady Shephard, the noble Lord, Lord Rennard, and I think the noble Baroness, Lady Hanham, said that this is not a matter for Parliament. My problem is this. If the Government are seriously arguing that collaborative partnership arrangements are, in the Government’s eyes, a proper and appropriate alternative to unitary status, that collaborative partnership arrangement depends on both parties—the county council and the district council—co-operating fully, which I am sure happens elsewhere in the country. If, for that co-operative arrangement, information about the costs and delivery of services is required by the cities involved so that they know what is happening in their cities as a result of county council services, but the county councils refuse to divulge the information, on which partnership must rest, what does the noble Baroness suggest can be done?

We cannot have unitary status because that has been denied to us. We cannot have collaborative partnership because the information is being withheld. What does she suggest we do? That is why I have moved this amendment: to focus Parliament’s attention. Warm words are nice—

[Viscount Eccles]

I thank the noble Baroness for giving way. I think that what she is suggesting is to pass an unenforceable law.

[Baroness Hollis of Heigham]

My Lords, no one has asked the Committee to make a judgment on this, so I think that the noble Viscount is being just a little premature.

The point of the amendment is to test the validity and the viability of the noble Baroness’s assertion, which has been reinforced by a number of noble Lords during the debate, that constructive partnership arrangements are a viable alternative to unitary status. We were promised that in 1994-95, but despite those promises it did not happen. Norfolk County Council has already promised some of this to the Boundary Committee, but so far it has not happened. For these arrangements to work, we must have the information, but so far the council has refused. The noble Baroness says in all conviction, I am sure, that these alternative partnership arrangements are a viable option in place of unitary councils, but how is she going to advise us to make it stick? What advice can she give Norwich when Norfolk refuses to give it the information that it needs to make those partnership arrangements work? Will she please tell me? I will give way to the noble Baroness, because I have run out of remedies.