Sale of Park Homes

Debate between Brandon Lewis and Annette Brooke

Thursday 30th October 2014 Commons Chamber

[Annette Brooke]

It has indeed been suggested to me that site owners and those involved in the business had quite an input into the report, albeit not in the writing-up stage. I do not know how true that is, but it contributes all the more to the case for having a review sooner rather than later. A lot of things have changed since 2002.

[Brandon Lewis]

My right hon. Friend makes a very good point. It is nice when we all agree from time to time.

The right hon. Member for Leeds Central also said that things have moved on in 12 years. The report is 12 years old and I agree that it had a small sample base, but it was based on a range of park home sites—from the very small to the very large. Although it was published in 2002, there is no great evidence at present to suggest that the economic structures of the industry have changed significantly in the intervening years. There was some involvement from homeowners—there had to be, given the nature of the study in preparing the report. However, the report was on the economics of the sector; it was not, to be fair to the previous Government, a consultation.

--- Later in debate ---

[Brandon Lewis]

Actually, what I said was that the majority of site operators need the commission to maintain their sites. On the question of whether they are poorly managed and maintained, I said that some operators are not investing in them. That is exactly what the 2013 Act—the rules and laws that came into force on 1 April 2014—deals with.

The independent report carefully evaluated the economic structure of the industry and concluded that commission was an important income strand that could not be abolished or reduced without relief. Nevertheless, the previous Government consulted on what the appropriate maximum rate should be. Although home owners favoured a reduction in or abolition of the commission rate, very few thought it should be linked, as the right hon. Member for Leeds Central has outlined, to a reduction or an increase in their pitch fees. Understandably, and as the right hon. Gentleman also said, those who generally saw their park home as their home for life wanted to retain the existing system, while other site owners wanted no change at all. The then Government’s preferred option at that time was to have a 7.5% commission on existing agreements and to abolish it on new ones, but to have unregulated pitch fee increases, for which consultees showed little support. The consultation was therefore inconclusive. It looked at options in relation to the payment but, as we all now know, it was not about reducing or abolishing commission. The then Government therefore decided that no case had been made to change the status quo.

In the spring of 2012, the issue of commission was looked at again by the Communities and Local Government Committee. It held an inquiry into the sector, and published its finding in June 2012. Its report, which identified widespread malpractice in the sector, led the Government to support the Bill introduced by my hon. Friend the Member for Waveney. We agreed with the Select Committee’s finding that there should be no change to commission. That was our view in 2012, and it remains our view today, but I will return to the issue of the review in a moment.

[Annette Brooke]

I am afraid that I may be anticipating the Minister, but does he think that the Select Committee conducted a thorough review? I praise it for its whole report on park homes, but I was not aware that a large part of its work related to the 10% commission.

[Brandon Lewis]

It is not for me to question the decisions of the Select Committee or its Chair about how they go forward, but I will turn in a few moments to how what they looked at can be taken forward. I now want to make a bit of progress with my speech.

As other Members have rightly said, the justice campaign and its founder, Sonia McColl, are to be congratulated on their fantastic, sterling work in raising issues about problems with the park home sector and on the need for reform. As I have explained, we believe that commission is a legitimate income strand. It does not result in profiteering—at the moment, the evidence does not back up such a claim—and site owners who run a legitimate business within the law are entitled, like any such business, to make a reasonable profit. If the commission were changed, compensatory relief would be needed. There are good site owners who run professional businesses within the law. I am sure that all Members want them, for the benefit of their residents and of the economy, to thrive and grow. We therefore do not want to put in place measures that could affect their continuing viability.

I appreciate that that may be unwelcome to some home owners who have campaigned for a reduction in the commission or its abolition. We should not, however, lose sight of the substantial reforms that were introduced by the 2013 Act. It targets unscrupulous and criminal operators who think that the law does not apply to them: it does, it should and it must. Apart from introducing new provisions to prevent the blocking of sales and a new scheme for selling homes, the Act requires site operators to use a statutory form, and to set out what is included in any proposed new pitch fee and how that fee has been calculated. We are therefore starting to see the transparency that we want to exist more widely. The Act has banned certain types of rules that can be used to block sales on sites. It also introduced important provisions to reform local authority site licensing, which came into force on 1 April this year. These hugely important changes for the first time give local authorities powers to take enforcement action against rogues who refuse to maintain their sites.

I want to reassure the House that the Government recognise that more work needs to be done to change the culture of the sector and to crack down on the rogues operating within it who give everybody in the sector a bad name and affect the lives of residents unfortunate to live in such areas. To achieve that, we will continue to work with partners to raise standards generally, and to remove criminality from this sector.

In particular, I am determined to stamp out the continuing bad practices in the industry, such as unlawful sale blocking, or local authorities and other agencies not using their powers effectively to protect home owners. That is why I have asked a ministerial colleague to bring together representatives from across the sector to identify evidence of poor practice where it exists, and investigate how best to raise standards further and tackle abuse. That group will significantly help to shape the review of the Mobile Homes Act.

I agree with hon. Members, not least my right hon. Friend, that the review should have an independent chair. The review will be undertaken in 2017, which will give us a couple of years to see the impact of the new laws before we review how they are working. However, I would be very happy for that group, under its own auspices, to consider a wider review of the issues that have been raised today. I hope that my right hon. Friend will take up the opportunity to be part of the group. I know that the Under-Secretary will welcome Members who want to contribute to and be part of it.

Oral Answers to Questions

Debate between Brandon Lewis and Annette Brooke

Monday 8th September 2014 Commons Chamber

[Annette Brooke (Mid Dorset and North Poole) (LD)]

In an area with a very recently adopted core strategy that, because of the current severe shortage and a backlog of many years, requires 50% affordable housing, what advice would the Minister give planning officers determining new applications should there be requests for deviations from that requirement?

[Brandon Lewis]

I would say to the right hon. Lady that planning decisions are obviously matters for the local authority, and it would be wrong for me to comment on the core strategy of a particular area. However, if she wants to come and see me, I will be happy to go through any queries she has.

Local Government Finance

Debate between Brandon Lewis and Annette Brooke

Wednesday 18th December 2013 Commons Chamber

[Brandon Lewis]

I am happy to write to the Chairman of the Communities and Local Government Committee with the figures. He will find that the gap between some of the points the right hon. Member for Leeds Central (Hilary Benn) made and the real figures is explained by the fact that we are interested in how much local authorities have to spend on their residents, not just what they spend on bureaucracy and red tape, through the Government grant.

[Annette Brooke (Mid Dorset and North Poole) (LD)]

I welcome for the second year running the one-off payment to sparse rural areas, but many well-run councils of all political colours are predicting a cliff edge in 2015, when they fear they will have to cut services dramatically. What advice would the Minister give those councils following today’s statement?

[Brandon Lewis]

I am sure my hon. Friend will be pleased to know that the settlement for rural areas will be rolled into the base, giving them a better base going forward, enabling them to continue their good work of sharing services and management and ensuring they are efficient and delivering good front-line services for residents.