Water Bill

Debate between Lord De Mauley and Lord Shipley

Tuesday 11th February 2014 Lords Chamber

[The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley) (Con)]

My Lords, Amendment 161ZA from my noble friend Lord Shipley seeks to make it obligatory for landlords to hold buildings insurance, including cover for flood risk. I can confirm to him, in answer to his question, that the cost of insurance premiums can usually be offset against profits for tax purposes. I am sympathetic to the intention behind this amendment although I am not sure that this Bill is the right vehicle for this debate.

I note that while this amendment refers specifically to flood cover, buildings insurance includes protection against a range of perils including, for example, fire and theft. Although there is no legal requirement for property owners to take out insurance for their properties in the UK, owner-occupiers and landlords generally choose to do so in order to benefit from the financial protection that insurance offers. In addition, and importantly, most mortgage lenders specify buildings cover as a mandatory requirement for providing a mortgage on a property.

The Government agree that it is very sensible for landlords to take out insurance, but are conscious that the decision is a matter of individual choice, based on a commercial decision to protect an investment made in property. We are concerned that making insurance compulsory across the board could create a regulatory burden, which could deter investment in the private rented sector. I strongly encourage tenants always to check with a prospective landlord that appropriate cover is provided for the property.

If I might pause specifically on the issue of support for tenants in the event of a flood, we appreciate the concerns raised recently by the National Flood Forum and others that tenants of properties not covered by insurance might be left homeless following a flood. I note that some insurance policies have an “alternative accommodation” provision, but I would also like to assure noble Lords that, even if this is not the case, tenants do have protection. All local authorities are required to provide accommodation for households who are eligible for assistance, homeless through no fault of their own, and have a priority need for accommodation—into which category flood victims would clearly fall.

As part of its role in promoting flood awareness, the Environment Agency strongly encourages landlords to make a flood plan and to make their tenants aware of what to do in a flood. I also remind noble Lords that all residential contents policies will be eligible for cover through Flood Re, including tenants of rental properties, so long as they are not in properties built after 2009 or in band H or their equivalents. I ask that the amendment be withdrawn.

[Lord Shipley]

My Lords, I am grateful for the two contributions. I am reassured in part by the Minister’s reply. This is about tenants who have an entitlement to know whether or not they are in a high-risk area; indeed, we have already had discussions today about how people find that out. Tenants in private residential properties are often on low incomes, and it is reasonable that they should be told formally if they are renting a property in a high-risk area. That seems to be a basic entitlement if someone signs a lease. It is right that they should know and be given a copy of the buildings insurance with flood cover that the landlord has, so that if the landlord does not have that then the tenant is aware of that fact.

The amendment is not about contents insurance; I fully understand the law in that respect. However, we need to be very careful if there is going to be a rising incidence of flooding that means that some private tenants find themselves flooded but do not have contents insurance because they did not think they were in a high-risk area or were not aware of it, or thought that the landlord would cover it even though the landlord would not be responsible for their contents insurance. With this amendment I am seeking better clarity, given that there have been cases in recent months where flooding has occurred and tenants have in practice had a cost to bear. Of course there are costs involved in moving out that fall on the tenant, not the landlord, unless the tenant is prepared to sue the landlord. They could do that but it is very complicated for a private tenant to do.

I note the Minister’s concern and will think further about this. For the moment, I beg leave to withdraw the amendment.

Water Bill

Debate between Lord De Mauley and Lord Shipley

Tuesday 11th February 2014 Lords Chamber

[Lord De Mauley]

If I may, I will include that in that consideration. I hope that my explanations have provided some helpful reassurance. I am happy to ask my officials to work with the ABI to set out the proposed scope of Flood Re in more detail before Report, as that is something noble Lords have asked for. On that basis, I ask my noble friend to withdraw the amendment.

[Lord Shipley]

My Lords, I thank the Minister for his helpful reply. A Written Statement would also be helpful as we move towards Report. I should like to pursue two points briefly. I say to the noble Earl, Lord Lytton, that there is more than one narrative but the outcome is the same. The issue is whether the understanding of flood risk that was apparently correct in 2008 and 2009 is still correct in 2014. I suspect that it is not, which is why I am concerned. It would be helpful if the Minister’s note that he will send before Report could inform us whether it is still correct.

The noble Lord, Lord Whitty, said that we should not include in the provision those who had continued to build on high-risk flood plains after 2009. I entirely agree with him, but that was not the point I was making. My point was slightly different—namely, that I think the definition of what is high risk is now changing around us. Therefore, people who bought in good faith properties which were not in a high-risk area may now find that they are living in a high-risk area as a consequence of climate change, changing weather patterns and so on.

We have had an interesting debate. The issues have been identified and we can consider them further prior to Report. Therefore, I beg leave to withdraw the amendment.

Police Reform and Social Responsibility Bill

Debate between Lord De Mauley and Lord Shipley

Thursday 9th June 2011 Lords Chamber

[Lord Shipley]

My Lords, I make the fairly obvious point that training of staff should apply before people take up a job. Training orders cannot just be applied for persistently selling alcohol to children. “Persistent” implies several occasions. Surely a training order should apply from the first offence. It is a small but important point that training should apply at the beginning of the process, not after persistently failing to abide by the law.

[Lord De Mauley]

My Lords, I am grateful to noble Lords for tabling these amendments because the Government take a very serious view on the sale of alcohol to children. Amendments 240KA and 240N would enable those premises found to have sold or persistently sold alcohol to those under 18 to undertake a training order. I acknowledge training is a useful way to ensure that staff are made aware of the importance of age verification, but we do not consider that the proposed measures are an adequate sanction for such a serious offence. There is already a requirement, as part of the mandatory code for retailers, to implement an age verification policy for premises. Retailers therefore, as a matter of best practice, already train their staff on the age verification policy to ensure that they adhere to the law. They must take this responsibility seriously.

The mandatory age verification condition already addresses this issue and is designed to ensure that staff are well trained, competent and aware of the consequences of selling alcohol to children. There are already schemes in place that offer training and examinations for staff on underage sales and the proof of age, including the national award scheme Best Bar None. I am also most grateful to my noble friend Lord Shipley for his point, which I agree with. Police and trading standards officers need to be able to take tougher action in these cases and I question whether a maximum closure period of 24 hours—which Amendment 240N includes—sends retailers an adequately clear message.

We are committed to taking tough action against those persistently selling alcohol to children. In tandem with doubling the maximum fine, extending the period of voluntary closure will send a very clear message that selling alcohol to children is a serious offence and will not be tolerated. A training order could be seen as a soft option, particularly since it would discharge criminal liability and allow those premises to continue to trade. Amendment 240L would mean that the period of voluntary closure should remain at a maximum of 48 hours. We do not feel that provides a strong enough sanction for those seeking to avoid prosecution and a heavy fine. As I have said several times, selling alcohol to children is a very serious offence and it is vital that irresponsible businesses recognise this. Some businesses see a 48-hour closure as a much softer option than a fine. We believe that the period of closure should reflect the severity of this offence and send a strong preventive message. For this reason, I believe that the flexibility in the duration of a closure notice from 48 hours to 336 hours, from two days to two weeks—and I should say it is a maximum—is essential to make a voluntary closure notice a viable alternative sanction. For these reasons, I hope your Lordships will agree to withdraw the amendment.