Co-operative and Community Benefit Societies Act 2014 (Amendments to Audit Requirements) Order 2017

Debate between Lord Kennedy of Southwark and Lord Mawson

Thursday 1st February 2018 Lords Chamber

[Lord Kennedy of Southwark (Lab Co-op)]

My Lords, I have some brief comments in respect of the orders in front of us today. I declare that I am a member of the Co-operative Group and have been a member of the Co-op, as it were, for over 40 years, after starting off in the Royal Arsenal Co-operative Society. I am also a director of the London Mutual Credit Union, one of the biggest credit unions in London. These orders will affect us because its turnover is in excess of the uprated ones here.

The audit requirement is good news, and will certainly help many smaller credit unions in terms of the audit function burdens they have. The point the noble Baroness, Lady Kramer, made about ensuring that the organisations are properly accounted for is important as well. These sums of money are owned by members. They should be properly accounted for and any risks taken into account. Where there are problems, people should be alerted to them, and they should be dealt with properly.

I support the building society order, which enables them to join clearing houses. I see from the papers that the Government consulted the large building societies. That is fine, but did they also consult the Building Societies Association, which is the umbrella body for them? I cannot see that there are any views from it in the papers here.

It is a good move to put mutual societies in Northern Ireland under the umbrella of the FCA. The credit union sector in Northern Ireland is very big and much bigger than it is in the rest of the United Kingdom—in fact, the credit union sector is big in the whole island of Ireland. Giving it protection under the umbrella of the FAC is very welcome.

[Lord Mawson (CB)]

My Lords, I agree with the noble Lord, Lord Kennedy. Although I am not sighted on the detail of the co-operative and community benefit societies order, it feels like the right direction of travel. My point is really just a general one. I spend a lot of my life in SMEs and small charities, and at the moment many of them are becoming overwhelmed by the amount of bureaucracy, red tape and other things that are appearing on their desks. My question is really one that the Minister might take back to government. Someone needs to look carefully at what is happening to these small organisations, in terms of the amount of red tape and things that are appearing on their desks, and whether we can create this direction of travel for some of them. It is just a general point and a concern.

I was at a small charity last weekend, with one member of staff and two part-time people working in it, which is doing a great piece of work around education in the local community. The amount of treacle and stuff they were having to deal with was immense and extraordinary. You can feel many good people, who want to do good things in their community, wondering how much longer they can have a role in these kinds of things. They become very fearful of the 92-page document that appears on their desk. It is a general point, but one that needs to go back to government.

Neighbourhood Planning Bill

Debate between Lord Kennedy of Southwark and Lord Mawson

Report: 1st sitting: House of Lords
Thursday 23rd February 2017 Lords Chamber

[Lord Mawson]

My Lords, I was not going to intervene but this is a very important conversation in relation to this microexperience and the behaviour of the examiner, who I am sure is a very good and honourable person. However, this is not just about him or her building a relationship with the people on the ground who know the detail of the situation. I suspect that this is a clue to much wider things going on in our society. I have seen this all over the country and am experiencing it in 10 towns and cities in the north of England in which I am actively involved. Lateral conversations are taking place between the Government, civil servants, policymakers, academics and so on. Those conversations are profoundly out of date and do not cut through into real situations with real people, real places and real relationships. The modern world in which we live is all about people and relationships. It is not about systems, process and policy. I suggest that if government could find a way to encourage far more of these kinds of relationships to develop in relation to this microproblem, we might find a way to take the communities of this country into the new more entrepreneurial world we need to build within which they are active partners, not people who simply have something done to them.

[Lord Kennedy of Southwark]

My Lords, Amendments 3 and 4 in the name of the noble Baroness, Lady Cumberlege, carry on the same purpose of the amendments we have so far discussed today, which is to protect as far as possible the views and decisions that have been agreed locally. Where they are challenged, reviewed or modified, as far as possible the broad principles of what has been agreed locally should be kept on the table and changes that are deemed necessary should be sought within that framework and everything should not be thrown out and not taken account of. That is the broad thrust of these amendments.

These amendments seek to give local people a voice in a part of the process that can often appear very remote and where they may feel that they are powerless to affect the decisions that are being taken over decisions they have reached over a long period, working with the community, and over which they feel considerable ownership.

We all agree that we need more housing. I think that is something we can all agree on. But surely it must be better if we can agree on getting the homes built where we need them. Therefore, Amendment 3 seeks to include in the Bill a procedure whereby the local neighbourhood forum or parish council has the ability to appraise the examiner of what it is seeking to do and has the right to attend and contribute to any meetings that the examiner calls locally. It goes on further to require the examiner to provide a draft report and to have to consider any representations that are made before issuing the final report. I think that is a very sensible way of doing business which must surely lead to fewer disputes and fewer situations where local communities feel that they have put a lot of work into developing a neighbourhood plan only for it to be torn up, and they have had no ability to influence that process. Therefore, I certainly support these amendments.

As regards the points made by the noble Lord, Lord Mawson, I say to him that I grew up on a council estate in Southwark in the 1960s and 1970s. Therefore, I have some understanding of council housing and of some of the problems that have arisen. I am keen that we should build communities when we build new houses and that we do not make the mistakes that were made in the past. There was a lot of expectation and hype about the White Paper but then it seemed to disappear with a bit of a whimper. We will see what comes back on that but we need to look at building more council housing. I am not sure that we got that in the White Paper. Living in London, I know about the affordable rent model. I have told the House many times that when I walk to the station to come to the House of Lords, I look in my local estate agent’s window and am shocked that people pay considerably more in rent than I pay for my mortgage on my little terraced house—indeed, something like twice as much. I do not understand how people can bring up their families when paying those levels of rent. I think back to the rent that my parents paid. They were still able to afford to send their children on school trips, look after them properly, buy them clothes and pay for the family to go on holiday. It is very difficult for families to do that now, especially in property hotspots, particularly London. I hope that I am wrong about the White Paper and that a lot of social housing will be built. However, that is not evident to me from what I have seen so far.