(3 years, 1 month ago)
Public Bill CommitteesIt is a good to see you in the Chair again, Mrs Miller, on our final day of deliberations. I agree with the sentiments behind new clause 14, and what the hon. Member for Weaver Vale said about ensuring that, going forward, we do not face such issues. He mentioned the example of Victoria in Australia, which we have heard about a lot today. We have to be mindful that in the state of Victoria the number of properties that would fit within the category that we are talking about is 2,000, while in England it is 100,000. Although I see what he is saying, we cannot use the Victoria example as a direct crossover.
We also have to look at the structures in which the current remediation programme sits, because ultimately the new clause will effectively centralise the programme through the establishment of a building works agency and the prevention method. I agree with the sentiment: in the longer term, we will need to have a prevention mindset, as was touched on in the deliberations on previous clauses in this important Bill. However, we need to be mindful of the process in which remediation already sits. Clearly, enforcement is being done by local authorities at present.
Members from across the Committee have been very insistent, and we have had a lot of cross-party support—particularly from myself and the hon. Member for Liverpool, West Derby—when we have said that local authorities need to have the funding to follow through. I know what the hon. Member for Weaver Vale is trying to do with the new clause, which is effectively to say that, if we centralise it with a building works agency that not only deals with remediation but goes further to prevent the problem before it happens, we streamline the process. I can see the logic, but my concern is that we might end up, as an unintended consequence—we have talked a lot about unintended consequences in our deliberations—detract from the work that is already being done.
The new clause could come in within six months of the day on which the Bill is passed, but I am conscious that work is already happening to remediate ACM cladding in particular, which is obviously at the heart of this. My understanding from research is that 95% of the cladding either has already been remediated or is in the process of being remediated. As I said, from a philosophical point of view I am relatively comfortable, but we also have to be mindful of this measure being able to be utilised operationally. My concern is that we have a scheme in place at the moment that is not perfect and needs scrutiny but is working in its aim around remediation.
A big concern that the new clause attempts to address is the lag within that. Perhaps that is something that we need to be mindful of. It could be argued that centralisation, which is what the new clause seeks, could streamline the process, but we also have to be mindful of the reality that there will always be a delay between application and a decision on works and funding coming through. That is a practical reality. I do not know whether a new building works agency would completely eliminate that. That would concern me as well. We have got a process in place already, but does it really achieve the aims?
The Building Safety Regulator has been established. When we build new regulatory landscapes, we do not want to make them inaccessible and convoluted by bringing so many different players to the table.
It is a pleasure, Mrs Miller, to serve under your chairship. I thank the hon. Gentleman for letting me intervene. He talks about this being “convoluted”, but we talked last week about a diagram to help the leaseholder understand where to go for help. Would not a single agency or body with oversight of funds, grants and levies, that controls the various streams of money and approves the schemes once completed, make it easier for the leaseholder to tap into what is there and have an innate understanding of what they can actually do? At the moment, as he rightly says, there are many agencies, and the aim of the new clause is to bring them all under one body.
The hon. Member makes an interesting point. On the face of it, we could say that the new clause streamlines the approach, but I still have a concern. For example, why could the agency not sit within the BSR or within the new regulator that we have just established? Why do we need to establish another one? I get his broader point—
(3 years, 3 months ago)
Public Bill CommitteesI feel that my contribution might be slightly repetitive, given the broad agreement on the clause in Committee.
The hon. Member for Weaver Vale was right that the clause is pragmatic. He was spot on when he said it is about rebuilding trust in the processes. Like my hon. Friend the Member for Stroud, I trained as a lawyer and I know the frustration when bodies do not share information with one another. We have to remember—the hon. Member for St Albans picked up on this in her interventions—we are dealing with people who do not understand the systems, but will have to access them. After looking at the array of information, should someone send their concern or query to the wrong body—unaware that they had done so—we have to ensure that it is still actioned. We are dealing with situations and problems that impact on people’s lives: this is about the safety of individuals in their homes. Where that happens, we have to ensure that seamless sharing of information and co-operation between the agencies—the clause does that.
It is also right for those organisations to co-operate with one another. As we touched on last week in our deliberations, we cannot have a siloed approach. Organisations have to communicate and work together. We have to build a structure within the legislative framework that not just enables that, but to a degree ensures it happens and almost makes it the default that they have to share information, because that is the system in which they find themselves—so there is no way they can avoid doing so.
That being said, the proof of how this will work is in how it is delivered operationally. What will be vital for the regulator to do and for my right hon. Friend the Minister to work on is to ensure that the operational delivery works, that the systems are there to allow that to happen and that the communications are there, that agencies are talking to one another and we have computer systems that do not just fall down at the first moment, but can operate. Once the system becomes operational, I will be looking at how it functions.
I am heartened to see an emphasis on data privacy. We have to get the balance right. Ultimately, we are dealing with personal data. We still need to ensure the right of individuals to have their personal data safeguarded, and their right to remain anonymous, where necessary, is also important. We must ensure that data is dealt with appropriately.
It is right to handle the situation by putting a duty on the different stakeholders. The way we have had to deal with these horrendous issues has been through a multifaceted, multi-stakeholder approach, so we are going to have to build networks. As is often the case, when the networks are built, there is then pressure to ensure that operational delivery works.
I support the clause and am heartened to see what is in schedule 3. We have to ensure that the clause can deliver, and it will be for my right hon. Friend the Minister, his ministerial colleagues and the civil servants to ensure that can happen. If the clause delivers and we ensure that it works, we will have a seamless system that people trust, and people will know that if they have concerns, they will be addressed.
It is a pleasure to serve under your chairmanship, Mr Efford. For me, this is about funding, as it was last week. We go back to delivery. As the hon. Gentleman says, this is absolutely and intrinsically about the safety of the people we are talking about, but without the funding for the organisations he mentioned—the fire authorities and the councils—it will fall down. Will the Minister ensure that the correct funding is ring-fenced for the organisations to be able to ensure the safety that is required for the people in the buildings?
The hon. Gentleman touches on a really important point. I have a couple of points to address it. Last week, we heard from the Minister that there would be, broadly speaking, a new deal for funding. We also have to look at the procurement mechanisms that are used, in which I have a particular interest. They are really important and must be well scrutinised. We must use the procedures available in this place to ensure that that is done properly.
I was very heartened by what my right hon. Friend the Minister said last week on funding. As Members of this place, we have to ensure, in the ways we do as Back-Bench Members, that he follows through. I have found in the two years I have served as a Member of this place that funding is one thing, but making sure it is used effectively—not just properly—is another. One way to ensure that the organisations to which we say, “Right, build me a system,” can do that is to have the guidance in place, if, for example, we are talking about the systems that will have to be developed. The fire authorities’ primary function is to protect people. They are not whizz kids at building IT systems. We need to ensure that there is a method by which that could be done.
Equally, as I am sure the hon. Member for Liverpool, West Derby will agree, local authorities have many different duties. I think of my own local authority, Sandwell. It could have one department doing four things at the same time. They have to prioritise. They cannot be procuring systems at the same time as dealing with building safety. There has to be a way.
The clause has triggered a broader conversation. I want to stay within scope and I do not want to stray too far, but when we think about how we ensure co-operation, clause 26 highlights that there are broader discussions about ensuring that is done in the right way. I do not disagree with the sentiments expressed by the hon. Member for Liverpool, West Derby on funding. The Minister touched on that last week. Let us see how that goes, and scrutinise it. Ultimately, it is about processes working.
This is the right clause. Sharing data and information will be important, but it is about ensuring that that can be done properly and that the systems are there. I am absolutely sure that my right hon. Friend will do his best to ensure that that happens in the best way possible.
(3 years, 3 months ago)
Public Bill CommitteesI grateful for the opportunity to speak on clause 32 which although very technical, is none the less very important. I want to speak about mandatory occurrence reporting, because I think that is a key matter. In order to understand trends and where consistent issues are becoming a problem it is key that disasters such as Grenfell are not allowed to repeat. We need to spot problems early. That comes back to the broader point of collaboration and working together. This is a collaborative piece. To ensure that the legislation works for the future and that we have a market that truly works for everyone, we must ensure that information is shared. We must ensure that trends are spotted early. It is about treating the issue as a partnership between stakeholders. To have the BSR acting as the centre point and information gatherer will be key.
The clause needs to provide certainty, although we will need to see the secondary legislation that will derive from the Bill. We need to ensure that leaseholders and residents have certainty and that they know where they stand, but we have a market to meet, and we must build houses. We know that we have a housing shortage and that we need to construct more places for people to live. To do that, we must have a regime that works. We must know that, ultimately, those who use the regime and construct property understand the rules by which they play. Equally, the balance must be struck so that they cannot game the regime either. That is why there needs to clarity.
The hon. Member for Weaver Vale is right that we need to examine the detail in secondary legislation. We need to see what the structure of that will be. It is all well and good to say “we’ll prescribe this, and we’ll prescribe that” but we need to know what specific forms will look like, how people will fill them out, whether they will be usable in a commercial context or will that encourage an organisation, a builder, a company or whoever to circumvent the system, because they think, “Do you know what? It’s a little too complex for me to do, so let’s see how I can fiddle it around”? The wording of the clause goes some way to delivering this, but we need a system that says to builders and stakeholders, “Look, it is within your interests to play within the system and comply with the regulations, and to share the information as part of the mandatory occurrence reporting.”
We have spoken about the impact in Wales as well, and it is important that, ultimately, we have that consistency in England and Wales. The hon. Member for Weaver Vale will know that there is a lot of cross-border buying and selling, and we must ensure that there is consistency so that people know where they stand in terms of the regulations. I am sure that he has many building firms that will do work both in England and in Wales, so they will need that consistency to know exactly the rules within which they are playing. I hope that the Minister will be able to tell us about the conversations he has had with colleagues in Welsh Government to ensure that. That will be a real test of clause 32 and the subsequent secondary legislation, so that the marketplace that must fit within the regulatory framework knows where it stands. I come back to the point I made before, which is ultimately about ensuring that we can continue to have a market that builds houses, to address the situation that we have with local house building.
I want to touch on a couple of things. Enforcement is key. We heard lots of evidence about the need for culture change. Enforcement gives us rules and regulations, which the sector needs, but we need to change the culture. Listening to the Minister’s response, I am at a loss to know where the enforcement will come from and how it will be funded. It would be good to get a real understanding of how this golden thread will be enforced. We listened to evidence from the Fire Brigades Union about how fire safety officers have been decimated. We know about local authority cuts. I would really like an understanding, on the record, of where the enforcement will be made and how it will be funded. We had rules, regulations and laws, but without enforcement we still had Grenfell. Hugely important moving forward is how the new set of regulations will be enforced to ensure that it is adhered to and we get the culture change that we desperately need.
Clause 33 is just common sense, really. It is ultimately about ensuring that those people who are appointing people, or those organisations that are making appointments to do work, are doing so in a way that is right and safe. I am conscious that I should not stray on to clause 34, but it is about ensuring that they appoint people with the ability to do the work and to perform those basic duties that we would expect.
I am slightly surprised that we need clause 33, to be honest, because to me it is common sense that if we were going to appoint people to do a job, we would make sure they could do it properly in the first place. None the less, we have seen, and we have heard in the evidence, that it is needed. It is probably a sad indictment of the market and the industry we are dealing with that we need to specifically prescribe in legislation that people who are appointed to do the work can do so in the way they need to, and that we will require building regulations to specify what that looks like.
I turn to the general duties as specified in new paragraph 5B. A lot of this stuff would appear to be relatively straightforward; it is just about ensuring that people are undertaking the work in the right way. I will not make too many comments on industry competence, because I appreciate that that is addressed further on, but, broadly speaking, for many of these clauses it will be interesting to see the regulations that follow and how that is prescribed.
That is a good question. What will be needed is a broader conversation with the industry, and the evidence from the Association of British Insurers was about that industry engagement. What we are trying to do with this legislation is to bring about cultural change, so that cultural change must be holistic. As part of that, we must be open to having those conversations with insurers and with all parts of the sector. I am just thinking about these duty holders, and the point raised by the hon. Gentleman is about remembering what the sector is.
Obviously, it is not just the firms that are building or constructing these developments: it is the insurers, the subcontractors and the people who provide the materials. The sector encompasses all those people as well, so how far do we extend these duties? Again, these are questions that we are going to have to deal with, perhaps through secondary legislation: how far do those appointments go? What do they look like? Who are we appointing? Who are we applying them to?
Those are all academic questions that I do not wish to tempt my right hon. Friend the Minister to answer today, because I appreciate that we will go into further detail about them, but I think that the point made by the hon. Member for Liverpool, West Derby triggers a further conversation that is definitely worth having. Broadly speaking, though, clause 33 is about doing what many of us would consider to be common sense, and for that reason—although it is quite surprising that we need it—I fully support it and hope that it becomes part of the Bill.
I am mindful that just looking at this clause triggers a lot of thought processes. As the hon. Member for Weaver Vale has just said, we might have thought that this was already a given: that if we get someone to do a job, they should have the skills and qualifications needed to do it properly. It triggers some broader thought processes on how we embed these legislative and regulatory standards within the system more broadly.
I am grateful to my right hon. Friend the Minister for his response to the intervention on education. Clearly, as a result of this clause, we will have to embed this within the culture, which will require that stakeholder engagement. I was heartened to hear my right hon. Friend say that he would take that away and ponder it.
The key thing, as with all of this, is how it will operate in practice. The sentiment of the clause is the right one: in order to ensure that people living in high-rise buildings are safe, those buildings must be constructed by individuals who know what they are doing, and the onus must be placed in statute on the organisations constructing these buildings to ensure that the competence and skills base is there.
My hon. Friend the Member for North Devon raised an important point in her intervention about getting the balance right. I think this does get the balance right, in that it ensures that we can still recruit to the industry, so that a flow of workforce still comes into it, but things clearly have changed since 1984. My right hon. Friend the Minister articulated that by highlighting that the existing regulations are 37 years old. Just to put that in perspective for the Committee, that is slightly before I was born. I was born in 1992—I do not know whether that horrifies some Members.
I am the grandson of a builder, and it is clear that building sites have changed in 40 years. The expectations and complexity of the jobs that firms are now undertaking require the ability to know that the competencies are there. We now have a raft of qualifications, and different levels of experience and needs, as I have said in previous contributions—I am sure everyone has noted that meticulously. None the less, it is important. Things have changed and moved on. We are operating and trying to regulate an ever-changing marketplace that has new technologies coming on board and new materials coming into play, and we need the individuals who operate in this space to have the skillsets and ability to react to that.
The one thing that I would say—perhaps this will be addressed in secondary legislation—is that in my profession, we always had to show continuous professional development. We had to show that we had not just sat there after qualifying perhaps 10 years ago, because things had moved on.
On the issue of competence, last week we touched on training—the funding of training and who is going to do it. We will need lots and lots of people, and that is a huge opportunity for this country, but who will monitor the competence? Will it be accredited? Will there be an agency to accredit it? Again, this all links back to the evidence that we have been listening to over the past two weeks about culture change. This can start right at the very beginning of somebody’s career, and it can be hard-wired in. It would be good to get an understanding of who will oversee the competence, and how the training will be delivered and—I am going to say the magical word again—funded.
The hon. Gentleman makes a really important point. I am sure he and I are both passionate advocates of technical and vocational education, and this clause says that we have to treat the industry with some respect. That means having in place accreditation structures that are properly recognised. I get what he says about funding, and I am sure that my right hon. Friend the Minister has heard his plea. I say to the hon. Gentleman—if you will indulge me, Mr Efford—that he has a sympathiser in me, and I am sure that my right hon. Friend the Minister will at some point have conversations with the Department for Education and the Treasury about how that looks. The hon. Gentleman is right. Ultimately, although this is a short clause, it leads to so many different things. That is the key thing. Ultimately, as he articulated well, if we are going to ask for this, we need to know what the accreditation models are and the FE providers need to know what the structures are for providing this training. All those conversations come out of clause 34.
I am not sure whether the question was to me or to the Minister, but I will give my opinion, as I am sure the Minister will give his.
From my perspective—you are being very indulgent, Mr Efford, so thank you—what clause 34 does for productivity is to push the point on accreditation and on being sure that people have qualifications, so that a young person thinking about where to go hears, “Come to this trade, because you will get skills, qualifications and accredited.” I know from my communities that a lot of the time it is about how something is pitched or framed. If we want to attract young people into jobs and skills, we have to say what they will get from it. If a young person can get accredited and feel, “You know what, I have a qualification, and can take this further. I can move forward and go different places with it”, that is one way to deal with the productivity issue, as my hon. Friend the Member for Bolton North East said in his intervention. There are many other ways as well.
I was trying to articulate a point on the role of the Building Safety Regulator in setting industry competence. We have said throughout our deliberations on the subject of safety that we cannot see the BSR only as the executioner who comes in at the end, when it has all gone wrong. It cannot do that; it has to be leading the way—that is the key bit. That comes back to the point that I made before—my hon. Friend doubled down on it for me with his intervention—which is about ensuring that the link-in with the different stakeholders allows us to implement what is going on in clause 34—to ensure that the training bars are there, the levels are in place and we know where we start. When we train up the next generation of people for the construction industry, they need a clear idea of the knowledge base that is necessary.
I will make a probably revolutionary point: I might be a Conservative MP but, yes, trade unions have a part in this—110%. The discourse with the trade unions is beneficial. I, too, have benefited from positive relationships with my trade unions when necessary. The hon. Gentleman is absolutely right. Again, part of that is the holistic approach. That is the whole point of how the clause has been constructed. It allows us to be flexible and to have those ongoing conversations, which will be important in the implementation of the legislation. My right hon. Friend the Minister is listening intently and absorbing this—I am grateful to him for doing so—and he will pass it on to his officials, because to make the Bill effective we will have to be as broad brush as possible with engagement.
To conclude—I am sure many hon. Members are disappointed—clause 34 as drafted, as I said about clause 33, does something that is basic, which is that people who undertake a job of work should have the ability to do it. I hope I have articulated that in some way in my contribution, but as I have said, that will trigger a lot of further conversations. We need this to work. We need to ensure that the people undertaking the work on these high-risk developments—which we still need, because we have a housing shortage and we need to build more houses and more places for people to live—have the relevant qualifications. To that end, the secondary legislation, the guidance note, the approved document referred to by my right hon. Friend the Minister, and the competence standards being developed by the British Standards Institution, will all be important. We need to ensure that they are translated into a workable approach that brings together all the different stakeholders —we have discussed trade unions, further education providers and the industry more broadly—so that when 16, 17 or 18-year-olds decide to follow this profession as a career, they know what is expected of them. Speaking from my own experience, it can be odd when people do not know what the benchmark is.
(3 years, 3 months ago)
Public Bill CommitteesI feel that my contribution might be slightly repetitive, given the broad agreement on the clause in Committee.
The hon. Member for Weaver Vale was right that the clause is pragmatic. He was spot on when he said it is about rebuilding trust in the processes. Like my hon. Friend the Member for Stroud, I trained as a lawyer and I know the frustration when bodies do not share information with one another. We have to remember—the hon. Member for St Albans picked up on this in her interventions—we are dealing with people who do not understand the systems, but will have to access them. After looking at the array of information, should someone send their concern or query to the wrong body—unaware that they had done so—we have to ensure that it is still actioned. We are dealing with situations and problems that impact on people’s lives: this is about the safety of individuals in their homes. Where that happens, we have to ensure that seamless sharing of information and co-operation between the agencies—the clause does that.
It is also right for those organisations to co-operate with one another. As we touched on last week in our deliberations, we cannot have a siloed approach. Organisations have to communicate and work together. We have to build a structure within the legislative framework that not just enables that, but to a degree ensures it happens and almost makes it the default that they have to share information, because that is the system in which they find themselves—so there is no way they can avoid doing so.
That being said, the proof of how this will work is in how it is delivered operationally. What will be vital for the regulator to do and for my right hon. Friend the Minister to work on is to ensure that the operational delivery works, that the systems are there to allow that to happen and that the communications are there, that agencies are talking to one another and we have computer systems that do not just fall down at the first moment, but can operate. Once the system becomes operational, I will be looking at how it functions.
I am heartened to see an emphasis on data privacy. We have to get the balance right. Ultimately, we are dealing with personal data. We still need to ensure the right of individuals to have their personal data safeguarded, and their right to remain anonymous, where necessary, is also important. We must ensure that data is dealt with appropriately.
It is right to handle the situation by putting a duty on the different stakeholders. The way we have had to deal with these horrendous issues has been through a multifaceted, multi-stakeholder approach, so we are going to have to build networks. As is often the case, when the networks are built, there is then pressure to ensure that operational delivery works.
I support the clause and am heartened to see what is in schedule 3. We have to ensure that the clause can deliver, and it will be for my right hon. Friend the Minister, his ministerial colleagues and the civil servants to ensure that can happen. If the clause delivers and we ensure that it works, we will have a seamless system that people trust, and people will know that if they have concerns, they will be addressed.
It is a pleasure to serve under your chairmanship, Mr Efford. For me, this is about funding, as it was last week. We go back to delivery. As the hon. Gentleman says, this is absolutely and intrinsically about the safety of the people we are talking about, but without the funding for the organisations he mentioned—the fire authorities and the councils—it will fall down. Will the Minister ensure that the correct funding is ring-fenced for the organisations to be able to ensure the safety that is required for the people in the buildings?
The hon. Gentleman touches on a really important point. I have a couple of points to address it. Last week, we heard from the Minister that there would be, broadly speaking, a new deal for funding. We also have to look at the procurement mechanisms that are used, in which I have a particular interest. They are really important and must be well scrutinised. We must use the procedures available in this place to ensure that that is done properly.
I was very heartened by what my right hon. Friend the Minister said last week on funding. As Members of this place, we have to ensure, in the ways we do as Back-Bench Members, that he follows through. I have found in the two years I have served as a Member of this place that funding is one thing, but making sure it is used effectively—not just properly—is another. One way to ensure that the organisations to which we say, “Right, build me a system,” can do that is to have the guidance in place, if, for example, we are talking about the systems that will have to be developed. The fire authorities’ primary function is to protect people. They are not whizz kids at building IT systems. We need to ensure that there is a method by which that could be done.
Equally, as I am sure the hon. Member for Liverpool, West Derby will agree, local authorities have many different duties. I think of my own local authority, Sandwell. It could have one department doing four things at the same time. They have to prioritise. They cannot be procuring systems at the same time as dealing with building safety. There has to be a way.
The clause has triggered a broader conversation. I want to stay within scope and I do not want to stray too far, but when we think about how we ensure co-operation, clause 26 highlights that there are broader discussions about ensuring that is done in the right way. I do not disagree with the sentiments expressed by the hon. Member for Liverpool, West Derby on funding. The Minister touched on that last week. Let us see how that goes, and scrutinise it. Ultimately, it is about processes working.
This is the right clause. Sharing data and information will be important, but it is about ensuring that that can be done properly and that the systems are there. I am absolutely sure that my right hon. Friend will do his best to ensure that that happens in the best way possible.
(3 years, 3 months ago)
Public Bill CommitteesThank you, Mr Dowd. It is a splendid tie. I rise to emphasise that all of us on the HCLG Committee thought that the independent Building Safety Regulator was a fine idea, but over the last decade there have been 46% cuts to HSE and a third of officers have gone. There is a real worry about whether this will be resourced. I know people have spoken about that this morning, but we cannot emphasise it enough. Without an independent, well-resourced Building Safety Regulator, it all falls down.
I would like further commitments about where we are going, and what sums we are talking about. Will there be a complete recapitalisation of HSE to where it was pre-austerity, which we will then build on? It is so important that this is capitalised, and that the experience, officers and moneys are available to ensure that HSE can play a hugely important role in changing the culture. We all heard in the evidence sessions—and I have heard since 2019, sitting on the Select Committee—about how the culture in the building industry has created what we have talked about over the past two days. We heard some heart-rending evidence from so many people.
The hon. Gentleman is very experienced in local government and an experienced member of the HCLG Committee. Does he not agree that it will be really important to ensure that the regulator has a culture of independence? I am sure he will agree that ensuring that the regulator is beholden to no one but itself will be the only way to ensure that it truly keeps people safe.
I completely concur with the hon. Gentleman. It is a very valid point, but as I said, this is about ensuring that the resources are there. The hon. Member for St Albans made a very good point about local government. There have been 68% cuts to Liverpool City Council. It has been hollowed out. The ability to check on buildings has been catastrophic at times. This comes back to funding. The intent and the money have to be there. Without them, I am afraid that we could be back to some of the situations that many of us have faced in our constituencies with some buildings.
(3 years, 3 months ago)
Public Bill CommitteesQ
Liam Spender: Thank you for that excellent question. There are three critical things to address. First, there need to be leaseholder resident representatives on the rule-making bodies. This avoids a situation where industry and Government make rules that suit them, and pass the bill on to leaseholders who are left with the inadequate tool of challenges to the building safety charge and service charge, to contest bills that have already been paid. Secondly, the Government are trying to perform some sort of Frankenstein operation, with the Building Safety Bill, on a system that has had its day—namely, leasehold. There is a fundamental imbalance of power in the leasehold system in favour of landlords. Until you address that, you will not solve the problem of rules being made to suit landlords and bills being passed on to residents with no oversight, and no control. Thirdly, Dame Judith Hackitt identified in her report the culture of box ticking in the industry, the race to the bottom and value engineering—all that sort of stuff. Until that changes, nothing changes; buildings will continue to be built that are not fit for occupation and we will end up repeating the cycle at some point in the future. Those are the three things that need to be changed. I think that the McPartland-Smith amendments go a long way towards changing them, by introducing clear, legal routes to recovery against builders if they do not do their jobs properly.
Giles Grover: I will just echo the comments on the fact that the whole leaseholder structure means that you are still at the bottom of the food chain. There is all this talk about the building safety charge, but, as Liam said, ultimately it is about leasehold law—despite the Government thinking there might be protections in landlord and tenant law, we have seen that there are not the supposed protections there should be, because all the cases are based on the terms of the lease, which are always written against us. There needs to be an overarching look at the fact that it is not just the building safety charge, it is about service charges and how they are levied. There needs to be a bit more control over that, so that there is the actual ability to challenge it, rather than saying, “You can potentially go to the tribunal.” Ultimately, the cases we have seen do that just end up being rebuffed.
I am still concerned about the insurance issues we are facing now. There does not seem to be enough control. We have seen buildings insurance soaring by hundreds of per cent. I am not sure what protections there are against that happening. We have tried to report it to the FCA and the CMA, but are simply told that the responses are not as constructive or helpful as they could be.
Everything needs to be looked at again—even the building safety charge itself. When it was first drafted, I remember a meeting with one of the deputy directors of MHCLG where they said they did not really know much it was going to be. It was an academic exercise. Even the numbers in the current impact assessment say it will be £16 a month. It might be £42 or £26 a month. For existing buildings it should be more. No one really knows. As some industry figures have started to look at it, it might well be hundreds of pounds a month. There needs to be an overarching, holistic look at service charges and building safety charges. That would be the first thing.
To go back to Liam’s point about the McPartland-Smith amendment, that is what we are hoping the Conservatives will look at and realise that, yes, residents must be protected now, because they are the innocent people.
Q
Giles Grover: Thank you for the question, Ian. Resident engagement is key. As we saw last night—those of you who watched “Grenfell: The Untold Story”—if there had been sufficient resident engagement in 2015 and 2016, would the events of June 2017 have happened? I do not think they would have. It is important to have resident engagement, but, as we have seen, as lot of these things are very much tick-box exercises. Recently—or not so recently—the National Fire Chiefs’ Council updated its guidance on simultaneous evacuation and interim measures such as waking watch to say that residents should be consulted and cost-benefit options should be explored. That never happens in practice.
What is there actually to make it happen? The Government do not want to legislate for a resident group in each building. I can understand the reasons for that, but what is to stop the responsible person, the council entities, from just saying, “We have tried to engage residents. We put a few flyers up and gave a form out.” There needs to be a more positive obligation on them to actually engage residents than there seems to be now.
Liam Spender: I wholeheartedly endorse all of that. The answer to Ian’s question is that the residents engagement strategy in the Bill is not up to scratch. The problem is that the rules are being made now by statutory instruments in close consultation with industry. There is no amount of resident engagement strategy or vision that can overcome that issue. Once the regulations are made, there will be limited room for manoeuvre. I think there needs to be resident representation on the rule-making bodies to ensure we actually have a genuine residents’ voice, rather than a couple of cul-de-sacs that freeholders, managing agents, responsible persons—whatever title they are being given in the Bill—can lead residents down without there being any meaningful input.