Building Safety Bill (Seventh sitting)

Brendan Clarke-Smith Excerpts

Tuesday 21st September 2021 Public Bill Committees

[Christopher Pincher]

I am obliged to my hon. Friend for asking that question. The very reason for having a two-stage process and an initial stage is to try to make sure that disputes that can be resolved quickly are resolved quickly and to minimise the number of disputes that go to the first-tier tribunal. That can be a more lengthy process. Our objective is to move as swiftly as we can through any disputes. We believe that will be for the public good.

As I have just said to my hon. Friend, clause 24 provides the legal basis for a person affected by the Building Safety Regulator’s decisions to request to have that decision internally reviewed. In the initial years of operation, we expect that there will be a substantial number of requests for review owing to the natural adjustment required by all industry actors to the new regulatory regime. We expect, and we intend, the Building Safety Regulator to make every effort to resolve disputes at the internal review stage. We believe that will be the swiftest way of achieving resolution. The right of appeal to the courts remains because individuals will be able to appeal against a decision made on review to the tribunal if they think it is unsatisfactory.

[Brendan Clarke-Smith (Bassetlaw) (Con)]

The Minister has mentioned appeals. Will he say more about what the Government are going to do to ensure that the regulator is transparent in those appeals and in the outcome of the reviews?

[Christopher Pincher]

We certainly want the system to be transparent and the outcome to be agreeable to both parties, so that things can be done as swiftly as possible. We certainly want to make sure that the right resources are made available to all parties to ensure that that can be done. I am grateful to my hon. Friend for highlighting the importance of swift and transparent resolution.

As I have said, the right of appeal to the courts remains and if I give an example of how the system may work in practice, it may assist the Committee and my hon. Friend the Member for Bassetlaw. Relevant duty holders may have submitted a full gateway-2 application with all its constituent parts. The Building Safety Regulator, however, finds some of these documents to be not compliant, so does not approve the application to enable construction to begin. The developer then lodges an appeal—an internal review—against the Building Safety Regulator’s decision within the period prescribed. The BSR then decides the most appropriate form of review and how comprehensive the review will be. If the developer is not content with the final decision of the regulator, they can appeal that decision to the first-tier tribunal. I might add that this clause is intended for certain types of regulatory decisions, such as the example of the refusal of a gateway application, but it does not include enforcement decisions, which will be appealable directly to the tribunal. The clause reflects our intention that, where disputes occur in relation to regulatory decisions, we want them to be resolved as rapidly as possible for all parties involved.

Where disputes regarding the regulator and its decisions occur, and given that the BSR will make a significant number of regulatory decisions, it is in all parties’ interests for them to be resolved in an expedient and expeditious manner. Clause 25 therefore specifies that a decision by the BSR, if disputed, must initially be reviewed by the regulator’s independent internal review procedure before an appeal can be lodged with the first-tier tribunal. The intention behind this clause mirrors that of clause 24, because it seeks to ensure swifter resolution for both the individual who has lodged the request and for the BSR by providing an alternative dispute resolution procedure. It is important that disputes are swiftly identified and rapidly resolved, we hope, to the satisfaction of all parties. We believe that the two clauses provide an expeditious set of methods, so I commend them to the Committee.

--- Later in debate ---

[Christopher Pincher]

As the Committee will have heard me say earlier and, indeed, last week, the duty to co-operate is key to the approach that we are taking in the creation of the Building Safety Regulator and its powers.

At the centre of the Government’s strategy to implement our improvements to the building safety system is the setting up of the first national Building Safety Regulator. To deliver its functions effectively, it is vital that the Building Safety Regulator is empowered to work closely with other public bodies with responsibilities for building safety and standards and for dealing with residents’ concerns.

Clause 26 and schedule 3 will foster and enable that joined-up working in two ways. First, they will create statutory information-sharing gateways and duties to co-operate between the Building Safety Regulator and other public authorities that have statutory responsibilities for the safety and standard of buildings and for supporting residents. These powers will apply only to specific functions relevant to building safety and standards and supporting residents; they will never override data protection requirements.

To take a practical example, when regulating high-rise residential and other in-scope buildings, the Building Safety Regulator will typically set up a multidisciplinary team, including the local authority and the fire and rescue authority. The Bill creates legal information sharing gateways enabling the authorities expected to be represented in this multidisciplinary team to share intelligence about residents’ safety, and use it to co-ordinate their respective operational activity. It is entirely appropriate that this collaborative approach to regulation is supported by reciprocal duties to co-operate between the Building Safety Regulator and local authorities, and between the Building Safety Regulator and fire and rescue authorities. We are also taking this opportunity to provide legal clarity for local authorities and fire and rescue authorities so that they may share information about building safety and standards issues across all buildings. 

Secondly, the Building Safety Regulator, certain ombudsmen and the Social Housing Regulator are all likely to receive numerous complaints and concerns from residents. The Government intend that these bodies should co-operate and work together to support residents.  For example, if a resident of a high-rise residential building sends an urgent safety concern to an ombudsman to be investigated, these provisions enable the concern to be passed to the Building Safety Regulator as the body able to take action.

[Brendan Clarke-Smith]

The Minister mentions the duty to co-operate between the Building Safety Regulator and other regulators, and the information-sharing gateways. Will he tell us a little more about that, and why ombudsmen and the Building Safety Regulator will need to work together?

[Christopher Pincher]

The reason is that it is entirely possible that a resident who has concerns will send them to an ombudsman, even though the Building Safety Regulator is the appropriate repository of that concern.

--- Later in debate ---

[Christopher Pincher]

I will make some remarks about that as I advance through my speech on clause 27, but we certainly want to make sure that the Building Safety Regulator can recover associated costs from the regulated parties involved.

The independent review recommended that the regulator for buildings in scope of the new and more stringent regulatory regime should fully recover its costs from those it regulates. The recommendation reflected that duty-holders who require the most intervention by the Building Safety Regulator should pay more. The principle of charging within the building safety regulatory system is not new. Local authorities can already charge for building control work under the Building Act 1984, as can approved inspectors. The Bill needs to enable the charging of fees by the Building Safety Regulator, both to implement the independent review’s recommendation and to put the Building Safety Regulator on a firm financial footing.

[Brendan Clarke-Smith]

May I say once again what a pleasure it is to serve under your chairmanship, Mr Efford? My right hon. Friend mentioned the independent review’s recommendation that the regulator for higher risk buildings be funded by this full-cost recovery approach. Can the Minister explain why the Building Safety Regulator is going to charge fees and how those fees compare with those of other regulators?

[Christopher Pincher]

The Building Safety Regulator will charge fees in the normal way, and there will be a mechanism to levy that charge on an identified party. It will be the identified party’s responsibility to pay in the normal way. The fees are consistent with the sorts of fees that are paid through other regulatory mechanisms that local authorities, for example, employ, too. That comes with the caveat that we want to ensure that full-cost recovery is achieved by the Building Safety Regulator, so the charges will rather depend what the costs are. I trust that if there are charges for additional regulatory activity on the part of the Building Safety Regulator, it is in the interests of the identified parties not to cause that additional regulatory activity. That is another means of ensuring that everybody behaves appropriately.

Clause 27, alongside clause 56, provides the legal basis for the charging of fees by the Building Safety Regulator. It enables the Secretary of State to make regulations authorising the Building Safety Regulator to charge fees and recover charges from those it regulates.