Infrastructure Bill [HL]

Lord Jenkin of Roding Excerpts

Thursday 10th July 2014 Grand Committee

I get very frustrated when political parties—all of them; we plead guilty, too—trade statistics to prove which Government were worst over the years. The reality is that no Government, including mine, have yet been anywhere near good enough, and we need to recognise that. We need to have a long-term housing plan to get nearer to and, I hope, achieve the ambitious targets that are set. We should not keep bandying statistics or building for value rather than volume which the noble Lord, Lord Best, said many of the bigger builders seem to be doing. I would be a little cautious about just building for volume. We need the right sort of housing in the right places. It is not simply a matter of volume; it is a matter of a whole range of things, such as design and quality, and houses being in places where people want to live because there are jobs for them to go to, there is transport infrastructure to get them where they want to go and home again, and it is a community in which they want to live. That is infrastructure, and that is why I support the amendment, and the debate on this amendment. I hope that whoever is in government in 12 months’ time will at an early stage produce not necessarily the Bill called for in this amendment but rather a long-term housing needs programme that everyone can sign up to.

[Lord Jenkin of Roding (Con)]

My Lords, the noble Lord, Lord Best, has made a very interesting and compelling speech. I am more than ever pleased that I was one of his supporters when he took his seat in the House. I have greatly admired what he has been able to do over the years since then, and this is not the least of his achievements. He made a strong case, and I entirely recognise that. The question that I ask is who would initiate these big schemes? I entirely agree with him that these are desirable measures, if we are going to try to reach our housing target, and I entirely agree with him that planning should not be an obstacle to that. The Planning Inspectorate, which, as the noble Lord said, would have to be the body to decide on whether to allow or disallow the investment for something of more than 1,500 houses, is not an initiating body. It does not propose schemes and is not a body like, for instance, the development corporations that now exist in some parts of the country. Its powers are not like those which the Greater London Authority and the Mayor of London have to initiate large schemes of housing, or indeed anything else.

On the point that the noble Lord made about the speed at which it has to approve applications made, of course that starts from the point when it is considering the application. One thing about the inspectorate—and indeed its predecessor, which was proposed by the former Government of the Labour Party—was that it insisted that all consultation of local opinion should be achieved and established before it started to consider the application. I think that everybody approves of that. It is a very good way of approaching this, so that when looking at the application and its impact you do not waste a lot of time on questioning whether local communities or other local interests were consulted.

I am interested as the noble Lord, like me, is of course a champion of localism. At Second Reading, I criticised the Local Government Association’s statement that it did not see planning as an obstacle to growth and development. I quoted some statements that have been made regarding the interests of those who see this from another perspective. I felt, as I argued, that that was a rather unrealistic statement. Of course, it has to be speeded up, but I had a long brief from the Local Government Association, as we have all done from time to time on various Bills. I am a vice-president of the LGA, but it is interesting that it has not offered any comment on this amendment, neither for nor against. It has argued—this is perhaps my central point—that what is needed is organisations which will promote the kind of development that the noble Lord, Lord Best, has been describing. It has argued that there ought to be development corporations along the lines that now exist in certain areas.

I am a huge supporter of the various efforts that have been made to encourage local authorities to join together, perhaps over quite a wide area. One has seen that first in the city deals that have been made, which are proving quite extraordinarily effective. They are a very interesting new instrument of localism, which will surely produce substantial benefits for the future. However, it goes wider than that as it is not just city deals but local authorities which can get together to plan and initiate projects, for which they can then find investors and so deal with them. To my mind, that is the way that it should be done. If you then have local authorities or, as I think it would have to be, development corporations formed by local authorities, that is the way in which they can have what I certainly support: that the decisions should be made locally.

The difficulty with this amendment, although I understood clearly and listened with great interest to the arguments, is that it goes contrary to the whole thrust of policy in many of these related areas: seeking to devolve authority from the centre down to the locality.

Of course, the noble Lord is quite right that there are always nimbys, and that is a problem that has to be addressed. When I was Environment Secretary, my very splendid chief planning adviser John Delafons— who is sadly no longer with us—after asking me, “Secretary of State, have you heard of NIMBYs?”, to which I said yes, he asked, “Have you heard of NOTE?”, to which I said no, so he explained: “Not over there either”. He also had another story that I liked: “The man who occupies the end house in a new housing estate on the edge of a town promptly becomes the secretary of the local conservation society—‘I’m all right, Jack, and I don’t want any more!’”. Those are the kinds of very human, but really rather damaging, impacts that these influences can have.

Would centralising the decisions into the hands of the local Planning Inspectorate make any difference? It might, but surely the right answer is for local developers—or perhaps development corporations supported by a consortium of local authorities, as might be necessary—to win the argument. Some of them are very good at it; others need to match their skills. However, I have some doubts about whether centralising the decision into the hands of the Planning Inspectorate, which is what the amendment calls for, is the right way forward. It might help, but it would also do other things that may be less helpful. Indeed, I think that there are better ways of doing this. It is interesting that local authorities have been arguing for the right to set up development corporations as the Mayor of London can do, but they have not actually put any amendments to me about how that might be properly achieved. Perhaps that is an issue to which we can return on Report, which might be a better peg on which to hang this.

I end on the note with which the noble Lord, Lord Best, began, which is that nobody doubts the acute seriousness of the housing problem in this country. In part, the problem is about overcoming environmental resistance, although one can understand some of that; in part, it is caused by the difficulty of getting developers interested in brownfield sites. I was very struck by the statement made by my right honourable friend the Secretary of State for DCLG, Eric Pickles, which was repeated by noble friend Lady Stowell on 16 June, about what is being done to encourage more development on brownfield sites. There will be extra help for London, but more important is that the success of London in getting ahead of this is now to be emulated in other parts of the country. It seems to me that these are the ways in which one ought to try to deal with this.

I will therefore listen with great interest to my noble friend’s response to the amendment, which has a very considerable appeal, but I have to say that I am not wholly convinced that it is the right answer.

[Lord McKenzie of Luton (Lab)]

My Lords, the noble Lord, Lord Best, got us off to a good start in our deliberations on Part 3 of the Bill. He touched upon a fundamental issue facing the country—and, indeed, as other noble Lords said, all political parties at this time—which is the housing crisis. I hope that the noble Lord, Lord Tope, will forgive me for quoting a few statistics in a little while, but this crisis is characterised by an acute housing shortage, with housebuilding falling to its lowest levels in peacetime since the 1920s, home ownership being unaffordable for many low to middle-income families, a falling programme of homes for social rent, an unaffordable “affordable rent” model and a burgeoning private rented sector in which rents are rising—all accompanied by insecurity and uncertainty in the marketplace.

The Government will claim that they have built some 445,000 houses since 2010, but this represents just over 110,000 a year—way short of what we need, the 243,000 figure quoted by the noble Lord, Lord Best. This is less than half of what the country needs. Figures from the House of Commons Library show that since 2010 the gap between housing supply and demand has increased by more than half a million homes, with London bearing the brunt of the increasing shortfall. It has been reported that DCLG Ministers have been advised of the prospect of the number of housing starts falling in 2014, with just 16,000 affordable home starts. Perhaps I can ask the Minister whether that is correct.

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[Lord Best]

I am very grateful to noble Lords for their contributions to this little debate. The noble Lord, Lord Tope, made the point that something has to change. There has to be something a bit more dramatic, I think, than the measures we are currently working on. He also made the point that it is about quality, not just quantity, and one of the great things about a major development is that you can get the quality. If you are building just 40 houses and cramming them into the space that you have, the housebuilder often sacrifices quality. If you have a master plan working to create a garden village or even a garden community—I like that—on any scale, you can make it work because you have the numbers there.

The noble Lord, Lord Jenkin, was supportive of the need to do more but had his doubts about this particular way of helping. He made the point that it is important to identify who is going to initiate major developments. The use of development corporations, with consortia of local authorities, is absolutely the way to create the vehicles that could then take advantage of an easier, fast-track planning system. They would be the chief beneficiaries. It might be through local enterprise partnerships’ city deals. The Olympic Village was a wonderful example of how the growth boroughs in that area collaborated and achieved what remains a very important piece of housing.

[Lord Jenkin of Roding]

The noble Lord mentioned the Olympic Village. He is quite right to give credit to the local authorities in the area. Having read the report by the London Borough of Newham on what it has achieved through that, I think it deserves the highest praise for what it has done. I have in fact written to the Mayor of Newham to express that view to him.

[Lord Best]

I agree entirely. The noble Lord, Lord McKenzie, was very supportive but had some doubts. It was important to hear the plans that are now being formulated by the Labour Party. I know that Sir Michael Lyons’s review is due out fairly soon. I think that will be a creative and important contribution to the debate. The noble Lord, Lord McKenzie, made the point that long-term consensus is going to be essential and we have to work our way towards that, even though he has some reservations about this particular approach.

I thank the noble Baroness, Lady Stowell, very much for her response and for underlining the Government’s commitment to increasing supply, which is the essence of this. My suggestion is by no means a silver bullet, that is for sure. Loans, guarantees, et cetera, are all good; it is whether or not the volume that we need is going to be achieved by the measures that are currently there. With regard to reliance on local plans—remembering that you have no duty as a local authority to meet the needs of your neighbours or of the nation—your local plan must relate to the requirements of your own locality, and that may not encourage you to believe that a very major development is within your remit.

I take the point entirely that the pre-application process adds another year or so to the whole, so in total from beginning to end, with the 28 days from the Secretary of State at the beginning, one may well reach three years. But believe you me, three years for a major development is a triumph in relation to the time that we now must wait to get things done.

This is a proposal for a Bill, not a proposal in itself.

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[Lord McKenzie of Luton]

My Lords, as the noble Lord, Lord Tope, indicated, we have added our names to this amendment and we support it. It took me back to a debate during the course of the Growth and Infrastructure Act when identical amendments were moved and rejected by the Government. The Government’s defence then was that the Article 4 direction would be a route that local authorities could use if they were not happy with what central government was doing. At that point, there was disagreement between the LGA and the Government about how user-friendly that route actually was. The Government were going to talk to the LGA to see whether those matters could be clarified, so it would be very helpful to know whether any clarification was forthcoming. In particular, there was an issue about how the Secretary of State should approach the use of Article 4. I refer to the debate on the Growth and Infrastructure Bill:

“Is it still the position that the Secretary of State’s general approach to making an Article 4 direction, as set out in paragraph 4.23 of planning policy guidance note 15—”

here I asked whether that policy guidance still existed—

“is that, ‘permitted development rights should not be withdrawn without clear justification’?”.—[Official Report, 12/3/2013; col. 195.]

It would be helpful to know whether that interpretation is still imposed upon the Secretary of State in dealing with any Article 4 direction.

Having said that and raised those inquiries, I thoroughly support the position of the noble Lord, Lord Tope.

[Lord Jenkin of Roding]

My Lords, this will be considerably shorter than the last intervention I made. I assure my noble friend Lord Tope that I think this is a good point. It will certainly have my support, and I look forward to hearing the Minister’s response.

[Baroness Stowell of Beeston]

My noble friend knows that the last thing I ever want to do is to disappoint him, but I think that he is not going to be as pleased with me on this occasion as he might be on others. However, that is only because this amendment replicates what is already set out in secondary legislation. I am pleased to say that local planning authorities already have the power to make local development orders, so it is not necessary to make this change. Similarly, there are powers for a local authority to remove national permitted development rights where it has concerns about the impact of permitted development rights locally. As we have already heard, this is achieved through an Article 4 direction and should be done in consultation with the local community.

The National Planning Policy Framework sets out that Article 4 directions should be limited to situations where they are necessary to protect local amenity or the well-being of the area. Article 4 directions should, therefore, be used sparingly as they remove relaxations which the Government have brought forward. These relaxations remove costs and burdens from local people and allow them the freedom and flexibility to make the best use of their properties. I know that there is a claim—noble Lords have repeated it today—that the Article 4 process is burdensome. However, we disagree. Rather it seeks to ensure that those whose permitted development rights are being removed are consulted and that there are safeguards against inappropriate use of the power. I do not think that there would be support for the reimposition of those burdens without proper consultation.

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[Lord McKenzie of Luton]

I am grateful to the TCPA for its enthusiastic counsel in drafting this amendment and for advising me on it.

Overall, we consider that the planning sections of the Infrastructure Bill are a lost opportunity to lay the foundations of a planning system that can help deliver the homes and places the nation deserves. This very much builds on the amendment tabled by the noble Lord, Lord Best. The Bill continues in the long line of measures which reduce the powers of local authorities in ways which in turn risk creating real impacts for individuals and communities. We will discuss Clause 20 shortly. Given the negative nature of the Bill, we propose to use this amendment as a vehicle for a much more positive debate about how planning could be made fit for purpose. We do this by seeking to insert a new clause which would amend the objectives of the new town development corporations. This allows for a more comprehensive debate on the principles and positive purpose that might drive the delivery of quality growth and new homes which is so vital to our nations. Both coalition parties, we understand, support new towns and garden cities—as, indeed, do we. We should be able to find common cause on these issues.

The proposed new clause flows out of the detailed research that the TCPA carried out on the measures necessary to make the existing new town legislation fit for purpose. The legislation, in the form of the New Towns Act 1981, is still in force and provides for the setting up of powerful new town development corporations which can drive delivery. The development corporation was the engine that drove the rapid deployment of the new town programme and had the following core powers: compulsory purchase of land where it could not be bought by voluntary agreement; the preparation of a master plan which, after public inquiry and approval by the Minister, would be the statutory development plan; the power to apply to the Minister for the equivalent of outlying planning permission for comprehensive tracts of the new town to control development—that is, to process planning applications; to deliver key utilities in partnership with the relevant agencies; to procure housing subsidised by government grant and other means; to act as a housing association in the management of housing; and to carry out any other activity necessary for the development of the town.

Although strong on delivery, therefore, the outcomes of new towns did not always reflect the highest design and quality standards. In addition, there is now a need to modernise the objectives of NTDCs to ensure that they have the visionary purpose to effect change while creating new opportunities for partnership and participation and a low-carbon future. Due partly to the nature of the new towns legislation, little of the high social ambition which drove the originators of the 1946 Act was reflected in the legal objectives of the development corporations. These were quite brief and mechanistic, referring only to the laying out and development of the new town.

There is therefore a risk that development corporations might see themselves as engineering departments rather than organisations engaged in the wider social enterprise of place-making. Over the past 30 years there has also been a wide recognition that planning has few, if any, outcome duties. This has in turn led to much criticism that planning has become a process without a purpose. New legal processes have been introduced to focus the system on sustainable development, climate change and good design, but they do not apply to development corporations because they are not local planning authorities.

The suggested new clause is designed to extend and modernise the list of objectives and duties of new town development corporations. In order to modernise the objectives, the first proposed new clause draws on the outcome duties in both the Planning and Compulsory Purchase Act 2004 and the Planning Act 2008, as well as the legislation that created the Homes and Communities Agency, which has statutory objectives that include people’s well-being, good design and sustainable development. The redrafted clause also introduces new and important obligations on the social and cultural as well as physical and economic development of the new town, through strengthening requirements for public participation. It also includes a new definition of “sustainable development” based on the successful wording of the New Zealand Act. I beg to move.

[Lord Jenkin of Roding]

My Lords, there is a lot to be said for the amendment. Indeed, it follows from what I said earlier this afternoon about the need for more local authority development corporations. I will not repeat that, but it was in the context of local housing estates, which the amendment is not specifically addressing.

My point in a sense supports the noble Lord, Lord McKenzie. This country has learnt a great deal about planning of new towns. I lived for some years not far from Harlow and, even 20 or 25 years after it was founded, there was still talk of what had become known as “new town blues”. I am looking at the noble Baroness, Lady Whitaker, who knows much more about this than I do. However, the new town blues were caused not just by the separation of families, when they went from crowded urban areas to rural areas outside the cities, but because those rural areas were designed with enormous spaces between different little bits of housing. Harlow was a very good example of that. There really could be almost no interaction between little local communities, which felt themselves very much cut off. No one had cars in those days; they relied on foot and bicycle, and whatever public transport might be provided. We have learnt an enormous amount since then. The design of more recent developments is, if I may put it this way, very much more user-friendly. I hope that we shall see that very much at Ebbsfleet. That helps local committees to gel and to develop a local identity. They left that behind when they moved from the cities and, often, city communities were divided as some went to some new towns and some to others.

I saw this a bit in Liverpool, where a lot of the Liverpool council development was in large, out-of-town housing estates that were often quite hideous, with a lot of huge, tall concrete blocks. I hope that I was instrumental in securing something for a group that was eventually called the Eldonians, a tight-knit community of people who were absolutely determined that that was not going to happen to them. Yes, there needed to be redevelopment, but we were able to secure that in a single site, fairly close to where they were already living. I was helped by the fact that the Tate and Lyle sugar factory had closed and that we therefore had a readily available site. To the fury of the Militant Tendency, as it then was, within the leadership of the Liverpool City Council, I was able to insist that that site went to the Eldonians. They have been very kind in their recognition of that ever since, and that community is still going strong.

This is what one has to do: to try to preserve communities, so that they can retain and build their identities to become what one would like to see—a really flourishing social unit. This country has learnt a lot about that. Regarding the development corporations in new towns to which this amendment speaks, I was urging earlier the inclusion of development corporations with the power to initiate substantial housing estates, with the necessary accompanying infrastructure. We are now much better at understanding this, and the planners and other people who have been involved with this deserve great credit. I hope that the Bill will lead to more of the same.

[Baroness Andrews (Lab)]

My Lords, it is a pleasure to follow the noble Lord, Lord Jenkin. He has said much more eloquently than I could what an extraordinarily important new clause this could be, were the Government to accept it. It really does reflect a very different approach to the creating of communities from the ones that inspired the new towns of the past. Those were, essentially, pragmatic attempts to rehouse populations which were in distress or in stress. We have a much more humane and intelligent appreciation of what it is to create communities these days. The noble Lord spoke eloquently about Liverpool but, in the case of new towns, one is of course creating a community. That means creating a sense of identity and belonging from the first steps up. In my opinion, it should begin with the nature of the community and the sort of infrastructure that sustains the community once it is in place.

That is why there is emphasis in this clause on key words such as, for example, “sustainable development”. That is one big change from the world that we were in 30 or 40 years ago when we were talking about growth and new towns. The notion of sustainability should underpin everything that we construct, whether in the demography that needs to be housed, the way in which we build or what sustains the community in terms of its well-being, such as the emphasis here on cultural and artistic provision, which is vital for creating a sense of belonging and opportunities for people to get to know each other and share a culture and indeed many different cultures.

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[Baroness Stowell of Beeston]

Both I and my colleagues at the department are always open to meeting different people and I would never refuse a meeting, but if I or one of my colleagues were to agree to a meeting, it would be important for me to be clear at the start what the Government’s position is. I have outlined that today—but, on that basis, my door is always open to anybody who would like to come and talk to me.

[Lord Jenkin of Roding]

If I may intervene on what is probably the speech of the noble Lord, Lord McKenzie, one needs of course to understand the position of the Government, but I should have liked to hear the Minister say that she was prepared to listen to any proposals that are made and that she, or her colleague or whoever it might be, does not approach this with a completely closed mind? There is quite a lot in the clause with which I find myself in some sympathy. I described a few moments ago how my experience led me to that.

I hope that we may have an opportunity to revisit this at a later stage. In the mean time, I am very grateful to my noble friend for what she has said. I do not want necessarily to be part of determining it—it is for the TCPA, which really knows about these things—but I hope she will meet that body, and do so with an open mind. I would find that very encouraging.

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[Lord Jenkin of Roding]

When I read this clause and, in particular, studied the Explanatory Notes my instinct was that there seemed to be some sense in this. Where these things are held up for a long period, it frustrates development. Anxieties have been expressed. They have been expressed to me by the Local Government Association. The only point I wish to make to my noble friend is about whether we could have some idea of what an order under this clause would look like when we come back to this on Report. I made this point to my noble friend Lady Kramer about some of the roads legislation we considered earlier in the Bill, and I make it now to my noble friend Lady Stowell. It would be really helpful to the House, as it will be on Report, to have before it the sort of order that would be made under this Bill. This Bill gives a power to make orders. I am not at all sure what those orders would look like.

[Lord Whitty (Lab)]

My name is attached to the clause stand part provision. While I think some of the amendments in the name of my noble friends would improve the situation, I think the Government need to think again on this. The Minister should take advice from the noble Lord, Lord Jenkin, and look more closely at what circumstances and processes the problem that the Government are trying to address needs. As it stands, this is a pretty draconian and open-ended provision. Clearly, for all sorts of reasons there can be delays in the local authority being able to assess whether a condition has been met. The conditions can be quite complex because they are not only in the area of heritage, as my noble friend Lady Andrews has said, but can relate to the natural environment, social implications, traffic implications and so forth. These things are not necessarily easily dealt with, particularly by hard-pressed planning departments. As it stands, the clause would allow the Secretary of State to come to this Parliament the day after the period of the condition lapsed with an order to override the non-decision of the local authority. That seems too harsh. It is important that there is some reserve power for the Secretary of State. I understand why the Government are looking for it, but it should be exercised with discretion. Frankly, this clause gives far too much power to the Secretary of State to interfere in what essentially must be a local decision which understands the complexity of local circumstances. This clause gives no indication of what should trigger the Secretary of State’s intervention and the suspicion must be—I put it at its most extreme, but nevertheless—that a developer who happens to be close to the Minister and is frustrated by the delay tips the Secretary of State off and we have a complete override of our planning process as a result, subject only to the negative procedure of this House and another place. That is too open-ended and I hope that the Government will think again between now and when we come back on this.

I should have declared an interest as a vice-president of the LGA. The LGA has great disquiet about this, and that is shared by a large number of other organisations which are engaged in the planning process. I hope that the Minister will be able to give us something on this and that she will have another look at it before we return.

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[Baroness Stowell of Beeston]

I will certainly see what is available. Fundamentally—not to pre-empt the further research I shall do—I think the evidence we have gathered is that a huge amount of effort goes into the process of deciding whether something should receive planning permission, but the conditions post that planning permission are not attracting the priority and importance that we need them to have once it has been decided that something should be built. It is as basic as that. We have already talked about the way we all share a common interest in seeing supply coming through more quickly. This is an area where we think there is scope for improvement. With proper safeguards in place, the measures that we are putting forward will go a long way to address a problem that clearly exists.

[Lord Jenkin of Roding]

I am extremely grateful for the announcement that there is to be a consultation on this. Will the Minister give us an assurance that the Government’s response to the consultation will come well before we reach Report on this Bill?

[Lord Tope]

I was going to ask the same question. I am grateful to the Minister for taking some time to explain and try to reassure us. I was very pleased, but not surprised, to hear about the consultation. We look forward to seeing that in some detail. What is of particular relevance to this Committee and to us is that we know the outcome of the consultation and, particularly, the Government’s likely response to that outcome in time for the Bill’s next stage in this House. If the Minister is able to give us that reassurance, we will go away a little less unhappy.