Affordable Homes Bill

Debate between Andrew George and Sarah Newton

Friday 5th September 2014 Commons Chamber

[Andrew George]

I acknowledge that it is different. I do not wish to be taken down a cul-de-sac of an argument, but regulations that were not retrospective in a sector that is characterised by six-month shorthold tenancies were not going to be non-retrospective for very long.

[Sarah Newton (Truro and Falmouth) (Con)]

There is not a person on the Government Benches who does not care as much as the hon. Gentleman for vulnerable people. There is no doubt that there are huge pressures on housing in Cornwall, but the evidence shows that Cornwall council is using its discretionary housing allowance to help the most vulnerable people in our society. In fact, it has not even spent all the money that is available to help the very same people whom he and I care about, so I really cannot accept that people with disabilities and people who absolutely need help are not able to get it.

[Andrew George]

I am grateful to my hon. Friend for that intervention, because it gives me the opportunity to say that the discretionary housing payment allowance to local authorities is helpful, and it is clearly important given the way in which the Government introduced these regulations. However, the rules attached to it make it extremely difficult to apply it willy-nilly for anyone who says, “I don’t like this tax—could you please just cover it for me?” It does not apply in that way, and it is wrong to imply that it does.

Some Conservative Members are saying that they really care about this sector, so let us look back at the DNA of the Conservative party and the last time we had the opportunity to look at the state’s relationship to under-occupation of property. My hon. Friend will understand this from a Cornish perspective. She will remember that the last time the Conservatives held power on their own, they introduced a 50% council tax rate for second homes. That represented the state spending hundreds of millions of pounds of taxpayers’ money every year to enable the wealthy to own second homes, when thousands of families in constituencies such as mine could not afford their first. There was not just under-occupation but un-occupation of properties that were essential to local communities. I hope that the Conservatives have moved on from that policy and, as a result of their association with the Liberal Democrats, have been prepared to moderate their line in relation to the application of public money and under-occupation.

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[Andrew George]

I am grateful to my hon. Friend for making that point for me very articulately.

[Sarah Newton]

Will the hon. Gentleman give way?

[Andrew George]

I am aware of the time. The hon. Lady has already had an intervention, and rather a long one.

Marine Management Organisation

Debate between Andrew George and Sarah Newton

Tuesday 18th October 2011 Commons Chamber

[Sarah Newton (Truro and Falmouth) (Con)]

I am grateful for the opportunity to raise an issue of great concern to my constituency and many maritime constituencies around our shores. The UK marine area covers an area three and a half times the UK land mass. It is rich in marine life and natural resources, which form the basis of human economic activities estimated to be worth £46 billion in 2005-06. Some of those pose a risk to the integrity of marine ecosystems, with impacts growing because of pressures such as large-scale marine renewable energy developments. Current activities have resulted in a crowded marine area, including licensed developments and areas of high fishing effort. Concerns over the degradation of the marine environment have led to a range of new policies, culminating in legislation and the Marine and Coastal Access Act 2009.

The most significant aspect of that Act is the introduction of marine planning: a framework for decisions on marine activities aimed at reducing user conflict and encouraging an “ecosystem-based approach”. Planning, as described in the Act, aims to promote economic activity, as well as to integrate environmental protection into decision making. I have read the Hansard record of the Committee stage of that Bill and know that the then Minister was keen to ensure that the Bill achieved the right balance between sustainable development and environmental protection.

The Marine Management Organisation was created as the main delivery agency for the new planning and licensing regime, but Natural England and the Joint Nature Conservation Committee have the main role in the pre-designation of marine protection areas. I have met its chairman and chief executive, who are trying to deliver the aims of their organisation. All the comments I am about to make relate not to their performance in managing the organisation, but rather to the structure of the processes they have inherited.

The key challenge facing the marine planning system that I am experiencing in the port of Falmouth and the Carrick Roads is resolving the inevitable conflicts between policy objectives to ensure the integration of the social, economic and environmental needs of the area. Given the limited amount of time available to me, I will summarise the area briefly. It is the third largest natural harbour in the world; home of the last commercial oyster fishing fleet under sail in Europe; host to a thriving ship repair business; host to the Royal Fleet Auxiliary Service fleet; home to world-class super-yacht builders Pendennis; and home to a range of marine renewable businesses. It is also a centre of world-class yachting and sailing, including the home base of British Olympic sailor Ben Ainslie. It has a special area of conservation and areas of sites of special scientific interest. Having grown up there, I can testify to the huge improvements that have been made to the quality of water and the natural environment, which all Falmouthians very much value.

All concerned with the new marine planning process acknowledge the challenges involved. Putting 25% of England’s marine environment under “protection” in a relatively short time, given the severely resource-constrained situation the Government find themselves in, is deeply concerning. The uncertainties in planning decisions as a result of knowledge gaps, and sometimes competing scientific evidence is of particular concern. Effective marine management requires sound evidence and monitoring. A Centre for Environment, Fisheries and Aquaculture Science report in 2010 entitled “Marine Survey Needs to Underpin Defra Policy” identifies a shortage of data necessary for marine planning. It also states that much of the evidence to be used in designation is subject to a medium or low level of confidence.

About 10% of the UK continental shelf is currently mapped in detail by survey or observation. To fill gaps, projects such as UKSeaMap produce broad-scale predictive habitat maps based on best available data, but confidence in some of the designations is as low as 20%. Direct mapping is expensive: the cost is estimated to be £210 million over seven years to map the rest of the UK’s regional seas to scales relevant to marine habitats, and there are limited funds to undertake such surveys.

Given the emphasis on evidence-based policy needing to be based on the best possible science, I want the Minister to consider the following recommendations about the guidance the Department for Environment, Food and Rural Affairs gives to the MMO, which has the job of licensing activity in the marine environment, such as dredging, as well as establishing a network of marine protected areas, include marine conservation zones and reference sites. To undertake that work, the MMO is using the DEFRA-produced “A description of the marine planning system for England”. That is quite a general document and it would be relatively straightforward for the Minister to issue additional guidance to bring in the changes I recommend, which would not need any primary legislation.

The additional guidance I want the Minister to consider stems from the need to access the broadest and best possible evidence base for appropriate decisions to be taken. As the Minister is aware, Natural England and the JNCC are the Government’s statutory nature conservation advisers in the English and UK offshore marine area, yet there is a wealth of knowledge in coastal communities, academic institutions around the UK and even internationally that I believe should be used in addition to the expertise of those organisations. Marine science is a fast-growing academic discipline and the MMO should be enabled to extend the range of organisations and people that can provide scientific evidence to enable its independent decision making. The quality of evidence should be paramount, whether or not it comes from Natural England or the JNCC. Of course, any organisation or person would have to demonstrate their ability to carry out the task and their work should be open to scrutiny and challenge. I believe their evidence should be considered on a level playing field and on equal terms with that of Natural England and the JNCC.

I also want the Minister to consider extending the limited appeals system. Generally speaking, the terrestrial planning system does not extend below the low tide mark, so the normal planning appeals process does not apply. The 2009 Act does not appear to set out an equivalent appeals process for planning decisions, although it does allow for one to be set out by regulations under section 37 for appeals against licensing decisions. I note the Department of Energy and Climate Change and DEFRA’s recent consultation on licensing under part 4, including appeals on decisions.

The marine planning system for England March 2011 document states in paragraph 5.61 that appeals against the refusal of terrestrial planning permission and inquiries are dealt with by the Planning Inspectorate and it goes on to say that the Planning Inspectorate could be involved in independent investigations within the marine planning system. If an independent investigation is required, an investigator will be appointed to provide advice and recommendations on how issues may be resolved and plans may be improved. The final format that the investigation will take is decided by the Secretary of State on the advice of the MMO. It is essential that these powers should be made available in the predetermination stage of marine protection designations as well as in relation to decisions the MMO will make post-designation in the management of marine protected areas.

The potential economic and social impact of designation of marine protected areas on coastal communities is so significant that it demands an appropriate appeals process. Decisions of such magnitude would not be made on the land without an appropriate appeals process. With the recent publication of the list of potential sites, there has been a huge outcry in my constituency at the potential designation of part of the Fal estuary as a marine protected area and a reference site.

Falmouth town council is united in strongly opposing the plans, stating that

“the proposal…threatens 350 years of history and shipping power in this port”.

The impact of the designation upon the recreational use of the Fal estuary has also aroused anger. Referring to the effect of the designation on a long and proud history of sailing boat racing on the Fal, Falmouth race officer Walter Amos has stated:

“The proposal would put an end to 150 years of tradition, cause enormous resentment, and have considerable economic consequences.”

[Andrew George (St Ives) (LD)]

My hon. Friend is making a strong case, particularly regarding reference sites. The Minister and I served our time on the Bill that became the Marine and Coastal Access Act 2009, and what my hon. Friend says is absolutely right: what we need in relation to reference sites is consultation and the opportunity for appeals, as with my constituency and the Cape Bank reference site. Low-impact fishing takes place there at the moment, but that would be stopped, with the unintended consequence of discouraging the very type of fishing that I should have thought the Act was intended to protect.

[Sarah Newton]

I thank my hon. Friend for that very helpful intervention.

Richard Gates, the Falmouth town centre manager, has added his voice to the chorus of local residents opposing the plans, commenting:

“We live in a beautiful part of the country and certainly are very environmentally aware but this cannot be at the detriment of people’s livelihoods and leisure when many people are working so hard to develop the area”.

I am sure that Falmouth and, as my hon. Friend the Member for St Ives (Andrew George) has pointed out, other parts of Cornwall are not the only coastal communities that feel that the current recommended sites for marine protected areas are inappropriate because they fail to meet the fundamental aim of creating areas that strike the right balance between sustainable economic, social and environmental protection.

Coastguard Service

Debate between Andrew George and Sarah Newton

Wednesday 2nd February 2011 Westminster Hall

[Andrew George (St Ives) (LD)]

On the question of the cost savings, does my hon. Friend not agree that a comparison needs to be made with the previous Government’s proposal to regionalise fire service control rooms, which is costing the country well over £400 million, and rising? If we contrast that with the Government’s current proposal, such modernisation is likely to cost, rather than save, the Government money.

[Sarah Newton]

I thank my hon. Friend for that intervention, but I think it best to leave it to the Minister to answer that question, as he has experience of the impact of regionalisation of the fire service.

I reassure the House that every coastguard I have spoken to has said that the service needs modernisation. The maritime environment is changing fast in many ways. Commercial ships are getting bigger and are less manoeuvrable, and we have more drilling rigs and offshore installations such as wind farms, not to mention the growth in privately owned pleasure craft. The shipping lanes around our shores are more congested and our climate is changing, with more unpredictable and volatile weather. The result is that the seas are becoming more hazardous. Many more people are participating in water sports of all kinds, and millions visit our coastline. They all need a modern coastguard service.

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[Sarah Newton]

I shall come to that point later, but I refute what the hon. Gentleman says.

[Andrew George]

My hon. Friend makes an important point. Falmouth is a pivotal station, and not having the skills that are available there would be a great loss to the nation. I doubt whether the skills of that station could be replicated elsewhere. Local staff have emphasised to me that the consultation was about one proposal, and that no alternatives were put forward. Many of the staff, who were not consulted at all, believe that alternatives should be considered, including those put forward by staff at Falmouth and at other look-out stations.

[Sarah Newton]

When I come to that point, I will make a suggestion that I hope will be carefully considered.

The Falmouth coastguard carries out a long list of specialist functions, which, following his recent visit, Sir Alan Massey is now aware of and will be able to take into consideration in the consultation process. It is one of three specialist centres, along with Aberdeen, which is responsible for the North sea oil platforms and drilling rigs, and the Solent, which handles the English channel. As would be expected, both those centres maintain a 24-hour watch, but Falmouth is to be downgraded to daylight operations. Such inconsistency must be addressed.

Parliamentary Representation

Debate between Andrew George and Sarah Newton

Tuesday 11th January 2011 Westminster Hall

[Andrew George (St Ives) (LD)]

It is a pleasure to serve under your chairmanship, Mr Benton. Given that we are debating an issue that will have a big impact on all the Members who are currently leaving the Chamber, I am sorry that there is such an exodus from it. I am delighted to have secured the debate, which will explore many of the issues that we did not have an opportunity to explore during the passage of the Parliamentary Voting System and Constituencies Bill—in spite of the large number of amendments that I and many others tabled. That was not due to the Government’s programming of the Bill, which I do not necessarily criticise—I am sure the hon. Member for Rhondda (Chris Bryant) will when he gets the opportunity in a moment—but because of how we as a House managed the available time and engaged in a tremendous amount of repetition. We failed to get to grips properly with the issues that needed to be debated to improve the Bill before it transferred to another place.

This morning, I intend to explore Government policy on parliamentary representation in relation to the number of parliamentary seats, the drawing up of constituency boundaries, voter registration and the role of the House of Lords in revising what the Commons produces. The House of Lords is revising the Bill, which we passed to it after its Commons stages last year.

There are currently 650 constituencies. As I indicated to the Minister during the debate on the Bill, my concern is that the Government’s approach has been far too timid, although I understand that perhaps there has to be compromise over the figures that were bandied about in advance of the general election. A figure of some 600 seats should not necessarily be hard and fast, but should be an indication of the size of the House of Commons. The current figure of 650 is an indication, and there could be more seats or fewer.

In his background reading, I am sure the Minister will have noted that seven years ago, on 15 October 2003, at columns 117 to 119 of Hansard, I brought forward a ten-minute rule Bill. The Representation of the People (Consequences of Devolution) Bill proposed a significant cut in the number of parliamentary constituencies, to about 500 in a first phase, because following devolution, and considering comparisons between the number of MPs in the United Kingdom Parliament and the number in Parliaments of similar sized countries in Europe and other western democracies, we were significantly over-represented.

There are countries in Europe in which the number of parliamentarians per 100,000 is higher than it is in the UK, but they all have significantly lower populations. All the countries with populations of about the same or more than the UK’s have significantly different representation and fewer Members of Parliament. I strongly recommend that the Government revisit the figure and take a more flexible approach. Part of the reason why I wish to emphasise that point is that the figure of 600 could have been plucked out of thin air; it need not necessarily be interpreted in the hard-and-fast manner in which the Government are approaching the Parliamentary Voting System and Constituencies Bill.

I know that the Minister is well aware of the primary issue of contention because I and my parliamentary colleagues from Cornwall have raised it. I am pleased that my hon. Friend the Member for Truro and Falmouth (Sarah Newton) is here today. My hon. Friends the Members for South East Cornwall (Sheryll Murray), for North Cornwall (Dan Rogerson), for Camborne and Redruth (George Eustice) and for St Austell and Newquay (Stephen Gilbert) are unable to be here today but support the principle I will espouse, which is that we did not get a proper opportunity to debate constituency equality during the Bill’s passage.

The Bill proposes that all constituencies have an electoral quota of approximately 76,000 with a margin of only 5% either way. It would carve up the country in a manner that would create bizarre constituencies and ignore important cultural, historic and geographic boundaries. We would end up with bits of islands, such as the Isle of Wight, attached to mainland constituencies, and place their MPs in an invidious position when two very different places they represent fail to see eye to eye on a matter of vital local importance. We do not want antiseptic constituencies with perpetually mobile boundaries. The five-yearly boundary review that would happen between each Parliament would mean an MP’s attachment to their constituency being perpetually reviewed, so the sense of settlement with the communities they represent would be continually undermined.

The amendments to the Bill which I and other hon. Members tabled were unsuccessful, in that they were not selected or therefore debated. They sought to find circumstances in which the Boundary Commission was given sufficient discretion to work towards the target figure, taking into account reasonable geographic, cultural and electoral issues. We want the Government to allow places to make decisions for themselves collectively, provided that they do not request more favourable treatment, such as over-representation. I hope the Minister takes note of that. It is not about more favourable treatment but simply recognising the distinctiveness of places, which the Bill does not take into account.

[Sarah Newton (Truro and Falmouth) (Con)]

I am grateful to my hon. Friend for securing this debate. Does he agree that in addition to the need to reflect distinct cultural and geographical differences in various parts of the country, to which he rightly referred, there are practical considerations? Cornwall, as in Devon, has more than enough people to enable it to remain whole. However, one in 20 properties is a second home and, rightly, people who are not normally resident in the county cannot register to vote. The Electoral Commission should have flexibility to consider such specific local factors when establishing boundaries.

[Andrew George]

I am grateful for my hon. Friend’s intervention, and I will come to electoral registration and its inevitable impact on drawing up boundaries. The established rules follow case law to some extent, and the Electoral Commission is certainly clear about the interpretation of the relevant Acts. I agree that there is an issue that deserves further scrutiny and that will have a significant impact when drawing up boundaries.

Having said that, my hon. Friend the Member for Argyll and Bute (Mr Reid) and other hon. Members representing constituencies in Scotland, Wales and other areas have made the point that many of the justifications for distinctive treatment of areas such as Na h-Eileanan an Iar, and Orkney and Shetland—they are identified in clause 11(6) of the Parliamentary Voting System and Constituencies Bill, although their distinctiveness is not elaborated on—could easily apply to other constituencies. The Government have a range of approaches for honouring and respecting the distinctiveness of many parts of the country. They could identify further specific exceptions beyond the two identified in the Bill, or they could establish a set of principles that underlie the reason for identifying those two constituencies and allow the Boundary Commission to determine where those principles might be applied.

In Cornwall and the Isles of Scilly, we believe that there is a self-evident case based on Cornwall’s historical, geographic and constitutional significance, and that the boundary between Cornwall and Devon—many people in Cornwall consider it to be between Cornwall and England—should be respected not only with regard to parliamentary constituencies, but in all other matters. Indeed, the Government did so when drawing up local enterprise partnerships. One strong reason for that, with which my hon. Friend the Member for Truro and Falmouth will concur, is that the distinctiveness of Cornwall and the Isles of Scilly was identified, but such distinctiveness seemed, at least to the Government, not to apply in Devon and Somerset. I am not making a judgment about Devon and Somerset, and perish the thought that I would ever stray into their politics. The Government recognise this important issue in Cornwall, but do not provide an opportunity for the distinctiveness of that important historical and constitutional boundary to be respected.

There is a presumption in clause 11(6) of the Bill that Orkney and Shetland, and Na h-Eileanan an Iar should be preserved constituencies. Na h-Eileanan an Iar has a population of 26,500, an area of 3,070 sq km, and geographically is apparently as long as Wales. It is a long, spread-out constituency. Orkney and Shetland has a population of 42,000 and an area of 2,450 sq km. If the decision were based purely on area, my right hon. Friend the Member for Ross, Skye and Lochaber (Mr Kennedy), whose constituency has a land area of 12,780 sq km, would have a case for distinctive treatment.

I often compare my travel time with that of my right hon. Friend the Member for Orkney and Shetland (Mr Carmichael), who is entitled under the rules of the highly respected Independent Parliamentary Standards Authority to travel by plane, but I am not. His travel time is significantly quicker than travelling by train from the far west of Cornwall to London, so clearly travel time is not the basis.

On the difficulty of getting around constituencies, I am sure that my hon. Friend the Member for Argyll and Bute will recount his experience of travelling between the many islands in his constituency. As well as the 82,000 constituents on the mainland of my constituency—there were well over 100,000 before the boundary changes for the 2010 election—I have six inhabited islands, five of which are 30 miles off the west coast. It is impossible to get around my constituency in a day. It takes two days to do so by surface transport, and it is difficult.

I am not asking for special treatment, or for my constituency to be added to the list of preserved constituencies, because there is a strong case for equalisation, and the Government are right to work towards the principle as far as possible. I also want to make it clear to the Minister that I am not seeking to undermine my right hon. Friend the Member for Orkney and Shetland, who is not present, and would no doubt provide a range of other arguments for why his constituency should be given special treatment. No doubt the hon. Member for Na h-Eileanan an Iar (Mr MacNeil) would come up with another range of arguments for his constituency being given special treatment when others are not preserved in the same way. I am simply making the point that I have spoken to them—I gave them notice that I would mention their constituencies in this debate.

I have been trying to fathom the reasons why those constituencies have been given preserved constituency status. I respect and want that because there are distinctive geographic, historic and cultural reasons for them being given special status, but if those principles apply to those constituencies, why do they not also apply to others, so that the special geographic and constitutional circumstances in which they exist are also respected?

For example, if we are looking at the whole area of a constituency, there is a significant sea area around mine, just as there is around the two I have just mentioned. My constituency is a maritime one, and a large proportion of its inhabitants exist not just on the land but in their trades at sea; those who go deep-sea fishing often go out for seven to ten days, to the continental shelf and sometimes beyond. If we were to take the whole working area of my constituency in the same way as we might take that of places where there are sheep on mountains—here there are fish in the sea—its total area would be 195,500 sq km. I have visited some of my constituents when they have been more than 100 miles out at sea and I have boarded their fishing vessels, but I reassure the Minister that I do not seek to do that weekly.

My point is simply that there is a variety of ways in which to engage with one’s constituents, particularly in this modern telecommunications age when people tweet each other across the world. It is not impossible these days to communicate with people in far-flung parts of one’s constituency without regularly meeting face to face. I am not saying that that should be denied, simply that I would like to get a better understanding of what lies behind the notion of preserved constituencies and, if there is a principle there, of why it cannot be equally applied to other areas.

I am aware that some people might point to unavoidable disagreements and old rivalries between places. The Government are right to continue the practice of preserving and respecting the boundaries of nation states; there is no cross-border constituency between Scotland and England. Strangely, though, the old boundaries of the regions—the Government zones as I describe them—will be respected as well; I understand that there will not be cross-border constituencies between the south-west and the west midlands, for example. However, as there are unavoidable disagreements and old rivalries there is little point in creating new ones.

For example, a point that would be emphasised by my hon. Friend the Member for South East Cornwall were she present, is that the relationship between Plymouth and South East Cornwall is both harmonious and mutually productive, largely because both distinct communities are assured of the security of existing within their own boundaries. They are ultimately responsible for their own destiny, but can, and indeed do, effectively co-operate, because they can enjoy both that mutual respect and their own security. Destroying that relationship by disrespecting the border would heighten the potential for conflict and mistrust, and would be counter-productive. I hope, therefore, that the Minister will consider that issue.

Briefly on voter registration, during the passage of the Bill we debated to a certain extent the fact that if the Government applied this regimented rule of equalised constituencies, it could be justified if one believed that the numerical basis on which the rule was applied regimentally was sound. The Government’s own Electoral Commission report in March 2010 identified a wide range of variations in voter registration levels. The report, “The completeness and accuracy of electoral registers in Great Britain,” states in its key findings:

“National datasets and local case study research suggest there may be widening local and regional variations in registration levels…Recent social, economic and political changes appear to have resulted in a declining motivation to register to vote among specific social groups. This is despite the fact that electors now have more options than ever open to them to register…Under-registration and inaccuracy are closely associated with the social groups most likely to move home…Each revised electoral register lasts for 12 months, from December to December; during that period, the rate of completeness is likely to decline by around 10 percentage points”.

The justification for believing that we are achieving equalised constituencies is therefore rather suspect. As my hon. Friend the Member for Truro and Falmouth has mentioned, it is not just the issue of under-representation but the risk of over-representation, at least of those who choose to register and have an entitlement, to a certain extent, to register in more than one constituency because they own a second home.

In my constituency there are nearly 3,500 second homes according to the latest available figures on the 10% council tax discount for people with second homes. A large number of properties, however, have been taken off the council tax register because the owners, although they use the properties and might register to vote from them, have chosen to pay a business rate because they are also letting them. A large number of owners chose to do that for reasons of tax efficiency and the financial efficiency of their businesses. My hon. Friend the Member for North Cornwall has nearly 4,000 such properties in his constituency.

In a letter to me on 26 July 2010, Jenny Watson, the chair of the Electoral Commission, stated:

“With regard to second home owners, in our view it is unlikely that owning a second property which is visited only for recreational purposes would meet the residency qualification…Owning and paying council tax on a property alone is not sufficient to satisfy the residence qualification: although this may give an indication of connection to an address, it is not evidence of residence. However, each decision must be made on a case-by-case basis by the Electoral Registration Officer”.

She goes on to cite case law, and the fact that illegal registration carries a potential fine of £5,000.

Thankfully, in time for this debate, the Minister has very kindly responded to a letter I sent to him on 7 December 2010 on this issue. He notes the issues that have been raised by the electoral returning officer for Cornwall council, and the suggestion that people who are registered in more than one local authority should be required to nominate a main residence, which would then be designated as the area in which they were eligible to vote. The Minister says that he will give the matter further consideration, stating:

“I have asked my officials to explore the issues connected with dual registration and will keep you informed of any developments.”

That is helpful for today’s debate. We know about the parallel issues regarding student registration. The issue needs to be addressed, and I hope that the Minister will do so.

The primary theme of the debate—I will bring my remarks to a close in a moment—is the Government’s justification for applying this rigid approach to equality of constituency. The Minister is aware that the Parliamentary Voting System and Constituencies Bill is being debated in another place. On this occasion, as perhaps on other occasions when such constitutional issues have arisen, Members of Parliament have an interest in the legislation as it primarily affects them. In such cases, I argue that the Lords should have a greater say rather than a lesser say about the outcome, and I hope that the Government will take that on board.

House of Lords reform will be considered in due course, and we will no doubt pass comment on such reform. I fear that in the coalition agreement—something I have not entirely seen eye to eye with my party over—the Government have tended to get the issue the wrong way round and they seem to have engaged in a fashionable and populist view. Of course, superficially I can see that a directly elected second Chamber sounds attractive in many ways. However, the Government are considering how people get into the Chamber before they have considered what that Chamber is for. On Lords reform, I agree with the Government that the hereditary principle should not apply and that patronage is unacceptable. However, I hope that before we get too entangled in debates about how people might arrive in the second Chamber—if indeed we have a second Chamber, and I believe that we should—we will first have the opportunity to consider what the second Chamber is for. That might inform the debate about the best and most appropriate means by which people arrive in the House of Lords.

NHS (Cornwall)

Debate between Andrew George and Sarah Newton

Monday 12th July 2010 Commons Chamber

[Sarah Newton (Truro and Falmouth) (Con)]

I am delighted to have this opportunity of welcoming the publication today of the coalition Government’s health White Paper, “Liberating the NHS”. It received a warm welcome in Cornwall this evening during the evening news on the BBC, with support from patient groups and GPs. I believe that making the NHS more accountable to patients and freeing staff from excessive bureaucracy and top-down control will drive up quality of care and outcomes for patients. I also welcome the measured pace of change and the Government’s desire to engage in a wide range of consultations to get the detail of the proposals working for the benefit of patients.

This evening, I would like to describe the current situation and direction of travel of the NHS in Cornwall, and to raise one important aspect outlined in “Liberating the NHS” today: assuring the continued improvement in quality of care in Cornwall. In addition to the ambulance service, we have three organisations that commission or provide care for people in Cornwall: the Royal Cornwall Hospitals NHS Trust, the Cornwall Partnership NHS Foundation Trust, and the Cornwall and Isles of Scilly primary care trust. There have been significant problems with some aspects of the quality of care provided by those organisations, but over the past three to four years improvements have been made. Significant challenges remain, and it is essential that momentum be maintained in the further improvement from ratings of “adequate” and “fair” to “good”, and then sustained at that level.

The Royal Cornwall Hospitals NHS Trust annual health check ratings demonstrate some steady improvement. Areas that needed work were governance, financial management, infection control and elderly care. The quality of service was rated “weak”, and remained weak until 2008-09. However, more recently the trust has demonstrated overall improvement through the interim core standards declaration in October 2009. The trust was registered under the Health and Social Care Act 2008 in April 2010 without conditions and with only minor concerns. The overall annual health check ratings of the Cornwall Partnership NHS Foundation Trust demonstrate improvement in performance, particularly since the high-profile investigation of services for people with a learning disability. In 2005-06, the trust’s quality of service was rated weak, improving to good in 2007-08, and that improvement was sustained into 2008-09. Its quality of financial management similarly improved. The trust was registered without conditions under the 2008 Act in April 2010, and achieved foundation status on 1 March 2010.

The Cornwall and Isles of Scilly PCT has also seen some improvement in performance. In 2006-07, its quality of commissioning was rated fair, improving to good in 2007-08 and then returning to fair in 2008-09, and its quality of financial management is improving to good. The trust was also registered without condition, however this was with a moderate level of concern.

Also of relevance to all three Cornwall NHS trusts is the report on the inspection of safeguarding and looked-after children’s services published by Ofsted on 23 October 2009. Out of 16 outcomes, Cornwall council was awarded only one score of “good”—there were six of “adequate” and nine of “inadequate”. Although most issues for action are for the local authority, there were also issues for the health community to address, which involve all three NHS trusts to a greater or lesser degree. Action plans are in place, and oversight and scrutiny of the health element is provided by the South West Strategic Health Authority. It is performance-managing progress on delivery of the action plan weekly and bi-monthly, alongside an improvement board, which has been established.

At such an important time, when Cornwall’s NHS trusts are working hard to improve the quality of care, which they need to deliver for Cornwall, it is essential that momentum is not lost. The regulation of the quality of care is vital to patient confidence. The ability of patients and clinicians to access information about the quality of services provided, as well as their being able to feed in information to the inspection and regulation regime, is very important. With the abolition of many centrally imposed targets and more devolved target setting and commissioning, the regulation and inspection of the quality of commissioning will need to adapt to this new environment. Many local factors are important to health outcomes in Cornwall, such as access to services, and those will be able to be taken into consideration. There is also an opportunity to invite the greater involvement of patient and clinical experience of services into the regulation and inspection regime.

The information provided to patients must embrace all that goes on to make up quality, including access, waiting times, cleanliness, infection rates, quality of clinical care, results for patients, access to same-sex accommodation and single rooms, cancelled operations, emergency readmissions, discharge arrangements, numbers of complaints, patient experience and patient-reported outcomes. Most of those data already exist, but they are difficult to access for many people. An open attitude to acknowledging and acting upon criticism is also needed to drive up the quality of care. If we had an open information culture, the scandalous failings that took place in Maidstone and Tunbridge Wells and then at Stafford hospital would not have gone unchallenged.

I am concerned by the number of clinicians in the NHS in Cornwall who tell me that when they challenge their manager and try to improve a service for patients they are told, “Nothing can be done”, “There’s no point saying anything as nothing will change” and, “Don’t ask, don’t tell, don’t complain”. At Mid Staffs there was clearly a sense among some of the professionals, and indeed the public, that the hospital had problems, but that was just the way things were done. That is just not good enough. We should never allow that sort of thing to happen again.

[Andrew George (St Ives) (LD)]

My hon. Friend is making a good point, particularly about whistleblowers in the NHS. It is vital that they are treated seriously and not threatened or bullied as a result of their whistleblowing.

Within the coalition agreement, to return to the role of patients and the local community, there was a commitment to a strong voice for patients locally through directly elected individuals on the boards of local primary care trusts, with the other members being representatives from the local authorities. However, those PCTs will be abolished. Does my hon. Friend agree that in Cornwall we need to ensure that there is some democratic accountability and community representation in the overview, scrutiny and management of the local NHS?

[Sarah Newton]

I thank my hon. Friend for that comment and I am sure that when the Minister replies he will describe some of the proposals in the White Paper to give local authorities and representatives far greater involvement in the overview and scrutiny of health services.

Instead of whistleblowing being seen as going outside the organisation, we should see such challenges as integral to safety and improvement within the organisation. In April 2009, John Watkinson was dismissed from his role as chief executive of the Royal Cornwall Hospitals NHS Trust. He took his case to an employment tribunal, which has published its judgment that he was unfairly dismissed. In the opinion of the tribunal, he was unfairly dismissed because he made a “protected disclosure” covered by the Public Interest Disclosure Act 1998. The disclosure was linked to the reconfiguration of upper gastro-intestinal services in Cornwall. The tribunal also found that the trust acted as it did as a result of pressure from the South West strategic health authority. Verita, a specialist company that conducts independent investigations, reviews and inquiries, has been commissioned to undertake a review and will report later this year. With a different culture in the NHS, this difficult situation might well have been avoided.

In the same way, instead of seeing complaints as a burden, distraction or something to be dealt with outside mainstream service provision, we must see them as integral to the improvement of the service that we provide. Learning from our mistakes, listening to complaints, comparing what we do, evaluating our performance and constantly seeking to improve quality are the features of the best performing organisations in every sector, and they can be already found in the best performing NHS trusts.

Listening to patients—asking, reporting and learning from patient experience—will be of great importance in designing and improving services, including achieving greater efficiency. However, the NHS too often asks insufficiently penetrating questions, insufficiently frequently, of too few patients. The NHS patient survey, which asks whether patients are satisfied with the care they received, is too much like asking patients if they are grateful.

I have read with interest the section in the White Paper entitled, “Autonomy, accountability and democratic legitimacy”. It sets out the outline of the proposed registration, evaluation and inspection regime. The Care Quality Commission process is new and generally thought to have made a good start in Cornwall, and I am pleased to see that it has an extended role in regulating quality of care.

Given the important stage that the NHS trusts have reached in Cornwall, assistance from those aiding the improvements that have already been identified in action plans needs to continue. As a result, I want to understand what plans the Minister has to develop the regulation and inspection of care providers and commissioners to ensure that standards of health care and the confidence of clinicians and patients in that care are improved. What is the time frame for migrating from the current regime to the new one and who will be involved in the consultation process for the creation of the new regime?

Health Funding

Debate between Andrew George and Sarah Newton

Tuesday 22nd June 2010 Westminster Hall

[Andrew George (St Ives) (LD)]

I am particularly pleased to have secured this important debate on health funding. I know that the allocation of funding has an impact on a large number of colleagues, particularly those from the north, the midlands and the south-west. I welcome the Minister of State, Department of Health, the hon. Member for Chelmsford (Mr Burns) and the shadow Minister, the hon. Member for Kingston upon Hull North (Diana R. Johnson), to their new posts, and I look forward to their responses.

Although the title gives the impression of a wide-ranging debate, I shall concentrate on a more narrowly drawn issue—the decisions that lie behind the way in which funding allocations for primary care trusts are made. In doing so, I refer to a debate in this Chamber on 18 March 2009 led by the then Member for Wigan and a debate in the House on 17 June last year that was led by me, both on this and related subjects.

When talking about health funding allocations, we speak of the NHS as a national service. The assumption is that funding is provided according to need, and most assume that it is allocated fairly and according to need; but as I have found during my years in Parliament, we may be assuming too much. The funding allocation formula has been reviewed and finessed over time since the inception of the NHS in 1948. However, 13 of the 52 PCTs in the country now receive funding at the floor of 6.2% below target funding. That is many millions of pounds. For example, the Cornwall and Isles of Scilly PCT receives at least £56 million less than the Government admit is needed or should be allocated. The funding formula was most recently altered for the year commencing April 2009.

The purpose of the allocation formula is to make changes on the most objective basis and, as far as possible, to take the matter out of the hands of any political influence. I admit that funding allocation—the weighted capitation formulas and so on—are some of the most dry areas of political debate one can imagine, but I do not apologise for briefly relating their history from the creation of the NHS. Then, of course, people made allocations as best they could in the circumstances, given the uneven pattern of hospital building in the previous century.

In 1970, the Labour Government’s Green Paper on NHS reorganisation included a commitment to a new method of resource allocation. The basic determinant of funding allocation was to be the population served by the area, modified to take account of relevant demographic variables and underlying differences in morbidity. That led to the development of the so-called Crossman formula. Over time, the formula changed to one in which allocations were made according to population, weighted by age, sex and the number of beds and hospital cases. That was further reviewed in 1974 by the resource allocation working party; the result was the transfer of resources from regional health authorities in the south-east to those in the north. The formula was further revised in the early 1990s, and that change resulted in resources being shifted back from the north to the south-east.

One significant element of the formula that has always caused concern to those in parts of the country such as mine was the market-forces factor. It was introduced in 1976, but was significantly altered in 1980 by the advisory group on resource allocation. That informed allocations from 1981-82. It based its recommendations on the new earnings survey, the annual assessment of average wages and salaries in all parts of the country. Cornwall has been at the bottom of the new earnings survey ever since.

What vexed us and others concerned about the allocation of health funding under the market-forces factor was that the poorest-paid areas received the least money. Salaries accounted for about 70% of the market-forces factor, which meant that they had a significant impact on the overall allocation and weighted capitation. Those areas with lower wages therefore suffered; salaries in an area would drag health funding down if they were low.

Throughout the entire debate on the change, we told the Government’s advisory committee on resource allocation that that was clearly unfair, especially as most of those employed by the NHS were paid according to national pay scales. Even those working in the grounds, including those doing building maintenance work, were receiving good money. We felt that the premise on which the calculation was made was unsound. Over the years, we have argued with the Government over the matter. Latterly, however, we persuaded the Government to review the market-forces formula. That review resulted in a change in the funding formula from April 2009.

There is one major element that adds to costs in places such as my area of west Cornwall and the Isles of Scilly. The area includes five inhabited islands—six including St Michael’s Mount—and two substantial peninsulas. It is difficult to provide access to services in that area; providing ambulance services, NHS dentistry and other health services in such a rural context is clearly a great deal more expensive than in suburban or urban areas, but that aspect is not properly taken into account in the funding formula.

On the social side, the impact of salaries and so on, we were pleased that the review resulted in a change in the funding formula for 2009. However, it identified a new set of losers—the 13 PCTs to which I referred earlier, which are currently at the floor of 6.2% below the national target.

Cornwall is £56 million below its target. In the south-west, Somerset is nearly £21 million, or 2.6%, below its target; Plymouth is £26 million, or 5.9%, below target; Devon is over £12 million, or 1%, below target; and Torquay is nearly £9 million, or 3.4%, below its target. Other areas with substantial, gross gaps in funding—those in the minus 6.2% league table—include Derbyshire, which has nearly £73 million less than its target; Lincolnshire, with £74 million less than its target; Nottinghamshire, with £65 million less than its target; and South Staffordshire, with £57 million less than its target.

In contrast, other PCTs receive more than their target and are overfunded in comparison with that target. The vast majority of those fall within the south-east. Surrey receives £171.5 million, or 11.6%, more than its target; Westminster receives £81 million, or 20%, more; Lambeth receives £78 million, or 14.8%, more; Wandsworth receives nearly £65 million, or 14.4%, more; and Kensington and Chelsea receives more than £60 million, or 20.4%, above the target funding. That contributes to health inequalities across the country. I would like the Minister, whom I am looking forward to hearing, to respond to the question of how we are going to ensure that the allocation of funding meets those targets, and does so as soon as possible.

Health Ministers in the previous Government made it clear that we need to be careful not to make catastrophic funding changes to PCTs receiving more than their allocated funding target. Withdrawing funding too rapidly would seriously impact on the health services in those areas. Nevertheless, a formula must be put in place to ensure that those places currently under target are not disadvantaged by remaining under target. For example, this financial year, Cornwall was 6.2% below target and remained there, so we are not moving very rapidly towards our target.

In the previous Parliament, the then Minister of State, Mike O’Brien, said:

“We are committed to moving all primary care trusts (PCTs) towards their target allocations as quickly as possible. In 2009-10 and 2010-11, we have ensured that the most under-target PCTs benefit from the highest increases in funding. Over those two years, the allocation to Cornwall and Isles of Scilly PCT will grow by…12.1 per cent., compared with the national average of 11.3 per cent…The rate at which PCTs will move towards their target allocation in future years will need to be considered in light of a number of factors including population changes, cost pressures and the overall resources available to the national health service.”—[Official Report, 30 November 2009; Vol. 501, c. 529W.]

This financial year, Cornwall has not moved one iota towards its target, which does not really amount to PCTs moving to their target allocations “as quickly as possible”.

[Sarah Newton (Truro and Falmouth) (Con)]

It is marvellous that Andrew has secured this debate so early in the new Parliament, because this is an important issue for everyone living in Cornwall. I applauded the previous Government’s efforts to focus on closing inequalities in health. However, their measure of success, which focused on average life expectancy, did a great disservice to people in Cornwall, as it masks a lot of the problems there. On the face of it, the average life expectancy is way above the national average—

[Sarah Newton]

I shall wind up, then. The crude measure of average life expectancy covers up many problems of poor health and the cost of providing services in remote, sparsely populated areas to an ageing population.

[Andrew George]

I am grateful to my hon. Friend. She rightly highlights that many factors, including life expectancy, rurality and age profile, need to be taken into account, and we must get the balance right. The history of the changes to the allocation formula—not something I would recommend as bedtime reading—shows that all the factors have been conjured with and balanced over time. It is difficult to arrive at a formula satisfactory to all people.

I want to emphasise the fact that we need to identify and make the allocation formula clear. We need to be able to show that it takes into account the health inequalities across the country and, above all, does not further impoverish the most deprived areas. I represent the poorest region in the UK, yet its poverty was used as a reason not to give it additional funds. Its poverty acted against its best interests, which would have been additional funds, as I explained in my description of how the market-forces factor operated and the impact that it had in some areas.

It is difficult to assess what impact the Budget will have on the future of the PCT allocation formula so soon after the statement, which was made in the Commons today. The NHS Confederation recently estimated that the announcements made by the coalition Government indicate a real-terms reduction of between £8 billion and £10 billon in funding to the NHS in the three years from 2011. According to the King’s Fund, a rise in VAT will lead to an additional cost of £100 million per annum to the NHS budget overall.

My hon. Friend the Minister will no doubt ask where we will find the money to provide additional resources for deserving areas such as Cornwall and the Isles of Scilly, Bassetlaw, and South Staffordshire, and the other places that receive allocations that are further below their target than those anywhere else.

Housing policy

Debate between Andrew George and Sarah Newton

Tuesday 8th June 2010 Commons Chamber

[Andrew George]

My hon. Friend is right to suggest that we need a lot more social rented accommodation, but much of the pressure on that accommodation is from people who might otherwise get on to the intermediate rung of the housing ladder. I am keen that we should develop that. The problem is the lack of mortgage finance. Only three lenders are currently lending, and in order to get schemes to go ahead it is necessary to have all three lenders on a site. With that, of course, comes significant pressure for relaxation of the section 106 agreements, which often go alongside such developments.

Before I was elected I was a rural housing enabler before such things were properly invented. I was involved in many of the kind of developments that have taken place since the early 1990s as a result of what was then PPG3 and is now PPS3. We found exception sites. What I found then, and has been found since that time, is that it is easier to find exception sites where the development value is significantly less than £10,000 a plot. People were finding it a great deal cheaper than that in the early 1990s. Such sites could be taken forward in an environment in which the integrity of the planning system was maintained. Otherwise, the hope value on all those sites will be lost.

Rural exception sites—also known as departure sites—are sites beyond or close to defined settlements. Exception sites are acceptable for the provision of 100% affordable housing but not for the provision of open market housing. Often such schemes consist of fewer than 20 houses—more often than not, far fewer. It is very important indeed, , as PPS3 states, that:

“Rural exception sites should only be used for affordable housing in perpetuity.”

The problem is that there is pressure from some local authorities to weaken, or lessen, the pressure on that. I therefore urge my hon. Friend the Minister to ensure that the integrity of the exceptions approach in PPS3 is retained. That has been supported—I spoke to Matthew Taylor before he produced his report last year—by the Taylor review, the Affordable Rural Housing Commission, the rural housing trusts and all the housing charities that work in this field. It is vital that such sites provide affordable housing in perpetuity 100%. There is a risk that we might lose that.

I mentioned predetermination; I shall be interested to hear what the Minister says on that. There is concern among many elected members; they feel unable to campaign on the issue before they are elected, in case, once they have expressed a view about the way in which their local community might or should develop, it would restrict what they might be permitted to do on a planning committee. A statement on that would therefore be particularly helpful.

I mentioned housing benefit. In areas such as mine, where a large proportion of the local community live on the very margins of economic survival, because of the very high private rents those people often depend on the housing benefit system whether they are in or out of work. The problem is that the system as it operates at the moment still results in the withdrawal of housing benefit at the rate of about 85p in the pound earned for people in that situation. If that is the case, clearly there are a lot of people, particularly in areas such as mine, who are going in and out of work who suffer from that mechanism and a housing benefit system that does not take fully into account the difficulties of living at that level. As a result, a lot of people living in my part of the world, and many other places, are living in awful accommodation, which certainly does not meet national standards, and are often paying very high rents indeed.

In my area there are some excellent private landlords and the private rented sector is run extremely well, but of course there are some who do not run it as well as perhaps they should. For example, one family that I was seeking to help earlier this year during the very cold winter, who were living in a one-bedroom flat up some stairs and had a one-year-old baby boy—the mother had epilepsy—found themselves in and out of both accommodation and the working environment and were unable to maintain the housing benefit at rental levels. They found themselves under a great deal of pressure from their letting agent at the time. I will quote from a letter that the letting agent, Antony Richards Property Services, sent to my constituents, a Mr Shaun Burden and Ms Rosemary Jarmain, who were living in Morrab road at the time. They have since been housed by the council in accommodation in Newlyn.

The letting agent wrote:

“In the absence of any rent forthcoming and your apparent refusal to help yourselves by providing the information…we are left with no alternative but to seek to enforce the possession notice served last year…the Council will deem you as intentionally homeless and are highly unlikely to offer you accommodation. You will then be homeless.

The choice is yours.

I am told the streets are cold at night.”

Such treatment of local families in a desperate situation is not acceptable.

Adverts for Homechoice in Cornwall have shown that this week, of the 42 properties available, 14 are one-bed, 21 are two-bed, six are three-bed and one is four-bed. In Cornwall, there is a serious shortage of family accommodation—three and four-bed accommodation.

[Sarah Newton (Truro and Falmouth) (Con)]

Will my colleague give way?

[Andrew George]

Because of time, I need to press on. I am terribly sorry.

I mentioned the issue of second home ownership and the need to control second home ownership in areas such as mine. I know that my hon. Friend the Minister is aware of the background in constituencies such as mine. For example, recent surveys of estate agents have shown that last year alone four times as many properties were sold to second home buyers as to first time buyers. In some communities a significant number—sometimes 20%, 30% or 40%—of the properties in local communities are owned by second home owners. Those circumstances make it difficult for people to have any chance of being able to afford a home of their own.

The previous Government looked at the issue following the Taylor review and other representations that I and others made. The then Government said that they were not prepared to look at our proposal to introduce a new use classes order to allow local authorities to restrict the number of second homes permitted to be converted from permanent residency to non-permanent residency in many of the communities where local people do not get a chance.

The previous Government said that they were not prepared to go forward because they thought that that would be difficult to enforce, but with council tax records, business tax records, the electoral register, capital gains tax information and local knowledge, I believe that it is possible to enforce that and to define properly what second homes are.

I mentioned the issue of capital gains tax. I hope that the Government will think carefully, before the Budget on 22 June, about the implementation of the changes in capital gains tax. I welcome the broad announcement, but I hope that there will not be an unintended impact on other business investments, including private letting properties, which are important to our communities. I hope that there will be roll-over relief, annual exemptions and other measures to ensure that the private letting sector is not hit detrimentally. I hope that the Minister is listening and I look forward to his reply.

--- Later in debate ---

[Andrew Stunell]

It is certainly in a better position to do so than the devisers of regional spatial strategies; I think that we can agree on that. We need to increase supply.

My hon. Friend has brought me neatly on to the abolition of regional spatial strategies, a phrase that has to be said carefully and articulated clearly. Regional spatial strategies have gone. The Secretary of State has written to planning authorities telling them that it is now a material consideration for them to take account of his letter saying that regional spatial strategies are to be disposed of. The legal decision must await legislation, but clearly we are there already. It is not just a question of telling local authorities, “You’re on your own”; there will be clear incentives for local authorities that permit the development of housing, and a reward system that will give them the opportunity to develop infrastructure and services to match the investment that they are allowing.

My hon. Friend had plenty to say about second home ownership. I have had the privilege of listening to him speak on the subject in debates for a number of years. He asked for some specific things. I cannot deal with capital gains tax—that is definitely well above my pay grade—but he also asked whether we could use the planning use class of second homes. The Government do not believe that there is a way forward on that. I would be interested—I do not suppose that I have the choice—to receive further representations from him and from others who think differently, but there are serious difficulties over how that can be done, not least because, for the first time, we are bringing the ownership of an asset into consideration of whether it was a material planning use or not. [Interruption.] I can see that my hon. Friend wants to engage in debate, and I look forward to doing so over the coming months.

My hon. Friend will have received a parliamentary response from the Under-Secretary of State for Communities and Local Government, my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), probably this afternoon, to say that we have no immediate plans to change the discount on council tax for second homes. However, my hon. Friend the Member for St Ives has raised some interesting issues, and some of us have great sympathy with them.

My hon. Friend asked about rural exception sites, and there seems to be a bit of a flurry: perhaps PPS3 and rural exception sites might, in some mysterious way, be at risk. I want to assure him that there is nothing in the coalition agreement or in the Conservative Green Paper on open source planning—I did not think that I would be likely to be standing at the Dispatch Box defending it—that would to change rural exception sites. The Government believe, as he does, that they are important and very material, so I hope that he accepts our assurance.

My hon. Friend rightly drew attention to the need to put in the missing rung in the ladder through the development of the intermediate market. Again, I refer him to the words of my hon. Friend the Minister at the Royal Institution of Chartered Surveyors this morning. We are committed to supporting that intermediate sector and making sure that it flourishes. We want to promote shared ownership and help social tenants and others to own or part-own their home. Shared ownership is a way of helping lower-income households purchase a share in a home, perhaps for as little as 25%, which is what the current HomeBuy offer says.

[Sarah Newton]

rose—

[Andrew George]

rose—