(6 years, 3 months ago)
Lords ChamberI am grateful to the noble Baroness. She is quite right about residents’ voices, and in many cases that is already happening. In both the social and the private sectors there are residents’ associations—or rather, tenant forums—whereby there is a good dialogue between the freeholder, the owner and those who live in the building, and Dame Judith’s report has some suggestions as to how to take that forward. I agree that we should do that without waiting for legislation: I entirely endorse the point.
The JCA proposed by Dame Judith would indeed be independent. It would not be dominated by the industry but would be composed of the three components that I mentioned. On the residents’ voice—there is some in-flight refuelling here—the Government agree with the assessment and support the principles behind the report’s recommendations. We will work with partners to consider Dame Judith’s detailed recommendations and, again, we will set out our implementation plan in the autumn.
On resources for local authorities, some local authorities have found it quite difficult to trace the owners of some privately owned high-rise blocks. People are either not answering or they are based overseas. We have therefore made £1 million available to local authorities in order to help them enforce their duties to identify and, where necessary, take action against the owners of buildings with unsuitable cladding. As I mentioned earlier, the increased fees for planning applications should provide more resources for planning departments.
My Lords, the Minister mentioned an outcome-based safety regime. My understanding of that process is that, rather than enforce point-by-point compliance with regulations A, B and C, while there has to be compliance, overall the system—the building, that is—has to be safe. The person who is accountable for the building has to underwrite its safety. This is remarkably similar to the outcome of the inquiry conducted by the noble and learned Lord, Lord Cullen, into the Piper Alpha disaster, which talked about the safety case. As noble Lords will remember, it was an appalling tragedy, and the report wisely changed the philosophical approach to safety. The Hackitt review makes the same philosophical proposal.
As someone who worked in and commented on the oil industry, I recognise this as being a positive suggestion. It means that there are lessons that the Government can learn about the rapid implementation of such a philosophical shift. So, as well as consulting the industry, I suggest that the Government should also consult the oil and gas industry, in particular the people who were around when that change was made, because it was a retrospective and ongoing change. Existing facilities had to be brought up to the new standard and new facilities had to be built in the new way. Can the Minister take that advice and talk to some of the people who have already made this philosophical shift?
The noble Lord is quite right: what Dame Judith is basically saying is that we should rely less on looking in isolation at individual elements within the construction industry, which she argues leads to fragmentation, silo thinking and gaming the system, and move towards an outcome-based approach, which means standing back and making sure that the system as a whole has integrity. She is worried that at the moment what she describes as a prescriptive approach means relying on people meeting minimum standards and not taking a broader view of what is going on. In a quote that makes the point, Dame Judith says:
“This is most definitely not just a question of the specification of cladding systems but of an industry that has not reflected and learned for itself, nor looked to other sectors”.
She wants to promote what she calls a proactive and holistic view of the system as a whole. So not only should we look at the oil and gas industries, we should look at what is happening overseas where other countries are also moving towards an outcome-based system. I shall certainly take on board his point about a dialogue with other industries which have moved in this direction.
(6 years, 7 months ago)
Lords ChamberI said a few moments ago in response to another question that, of those contracts let since July, six were joint ventures where the exposure to Carillion was substantially reduced by having other contractors underwriting Carillion if it were to withdraw. The Government can take some credit for making those precautions available. On the noble Lord’s general point, which reinforced what my noble friend Lord Lawson said, I indicated in response to an earlier question that if the assessments made of the robustness of Carillion in July ticked all the boxes in the tender document and they had to be adhered to, I agree with my noble friend Lord Lawson that this is something that we should have another look at.
My Lords, I do not believe that the role of the auditors has been mentioned. Auditors clearly have an important role in assuring the security of companies such as Carillion. Does the Minister agree that the official receiver, which is one of the small number of companies that conduct audits in this country, may not be entirely dispassionate or capable of making the right sort of assessment of this service?