Fire Safety Bill

Kevin Hollinrake Excerpts

Consideration of Lords amendments
Monday 22nd March 2021 Commons Chamber

[Shabana Mahmood (Birmingham, Ladywood) (Lab) [V]]

There is a simple question for the House to consider today: should leaseholders be forced to pay for essential remediation works that they are compelled to undertake to their properties that have come about through no fault of their own? The only possible answer is no.

We know that the cladding calamity that has befallen so many of our constituents did not come about because leaseholders have failed in any way. All the costs that are attributable to the cladding scandal are down to failures by developers and successive Governments, who have presided over shocking, scandalous regulatory failure, which has pushed thousands of wholly innocent people to the brink of financial ruin.

We all know that the costs of the regulatory failure that has created this crisis are in the many billions of pounds, but they must not fall on the ordinary people who are not responsible for this mess. There are other ways, I believe, that the Government can raise the necessary money. They should introduce a levy on developers and the construction industry to fund the cost of remediation —both cladding removal and remediating the many other fire risks that many of us in the House have been raising for quite some time.

The Government should also strengthen procurement regulations so that local authorities and metro Mayors can prevent developers and construction companies that are failing to live up to their moral obligations and put right the fire hazards that they are responsible for creating from bidding for any further publicly funded development contracts. In that way, we can reward those who are doing the right thing and putting right the cladding issues in the buildings that they were responsible for putting up and, hopefully, force a rethink on the part of those who are failing to live up to their responsibilities by preventing them from bidding for further taxpayer-funded contracts.

But what is clear is that the Government must not pin the spiralling costs of this crisis on the ordinary people who are currently facing financial ruination. I urge all Members to keep the amendment tabled by the Bishop of Saint Albans in the Bill, because to do anything else is a dereliction of our duty. This House must do the right thing by leaseholders this evening.

[Kevin Hollinrake (Thirsk and Malton) (Con)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests.

The first thing to say is that I agree with many of the comments that have been made. It simply cannot be right that leaseholders are faced with bills of tens of thousands of pounds. Nevertheless, I cannot support the amendment because I do not think it is effective, for a number of reasons. First, it seems to put somebody—an indeterminate person—on the hook for fire safety remediation forever. As I read it, it is not limited to historical defects.

[Royston Smith]

Will my hon. Friend give way?

[Kevin Hollinrake]

I do not think I should, because of the timescales, but as my hon. Friend is an author of the amendment, I will.

[Royston Smith]

I am grateful to my hon. Friend. I want to ask him this simple question, which I am sure he will appreciate. We have been back here three or four times now to discuss this, over and over, and every time I have said that if the amendment is defective, the Government should make it work and have it as their own. Does he agree that that is the way to go?

[Kevin Hollinrake]

After the previous debate, I offered my hon. Friend the opportunity to sit down and look at an amendment that might work, in concert with the Government.

The other difficulty with the amendment is that it would put the onus back on a building’s freeholders. Many people would say that that is fine—that it is better than the leaseholders having that responsibility—but I do not think it would put the leaseholders in a better situation, because the freeholder would simply close down the company and hand back the responsibility, which would fall back on to the leaseholders. I simply do not think the amendment works.

I have a couple of general comments. I was a member of the Housing, Communities and Local Government Committee at the time of the Grenfell tragedy, and the first thing for which we campaigned—straightaway, like many Members in this House—was a complete ban on combustible cladding. That is exactly what the Government stepped in to do. Of course, that ban is prospective, and it left a retrospective issue. The Government have clearly stepped in on the retrospective issue of cladding on high-risk buildings, which is exactly what the Select Committee campaigned for—those 1,700 high-risk buildings that were over 18 metres. That is what the £5 billion of funding remediates.

Many people in this debate have asked about the other elements, such as the missing fire breaks. It is of course absolutely right that we cannot expect leaseholders to take on a debt of tens of thousands of pounds; that is simply not right. We need to take a risk-based approach to the issue. Lots of buildings, particularly lower-rise buildings, can be safely remediated without necessarily replacing cladding: sprinklers, fire alarms and other systems can make those buildings just as safe.

We need to form a coalition of people right across the sector—be it building owners, contractors, managers or manufacturers—to find the best risk-based solution to the problem while minimising the cost for anybody, not least leaseholders. Of course developers should pay, and in many cases they have—Persimmon has just put £70 million to one side to remediate some of its buildings—but the difficulty is that we are often trying to deal with developers that are no longer there. The levy that the Government have introduced is absolutely the right solution, and I urge them to extend it to materials manufacturers and in particular insulation manufacturers, which I feel are principally responsible for the scandal of the situation in which we find ourselves.

On leaseholders, we of course do not want to see anybody go bankrupt as a result of these costs. There is a cap on costs for lower-rise buildings; it may well be that there should be a cap on the costs of remediating these issues for any leaseholder in any building. We should look into that, along with the possibility of the Government top-slicing the risk to make the insurance costs much lower. There are solutions and we all need to work together to provide them.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Sir Robert Neill, who must resume his seat at 8.55 pm or before.