Draft Architects Act 1997 (Amendment) (EU Exit) Regulations 2019

Kit Malthouse Excerpts

Thursday 14th March 2019 General Committees

[The Minister for Housing (Kit Malthouse)]

I beg to move,

That the Committee has considered the draft Architects Act 1997 (Amendment) (EU Exit) Regulations 2019.

The regulations were laid before both Houses of Parliament on 18 February 2019. They are part of the Government’s programme of legislation to ensure that if the UK leaves the EU without a deal and implementation period, there will continue to be a functioning legislative and regulatory regime. Leaving the EU with a deal remains the Government’s top priority. That has not changed. However, the responsible thing to do is to accelerate no-deal preparations to ensure that the country is prepared for every eventuality. These regulations are made using powers in the European Union (Withdrawal) Act 2018 to fix legal deficiencies in retained EU law, to reflect the fact that the UK will no longer be an EU member state after exit day.

Our architectural sector is a global leader and plays a significant role in the British economy, with an export surplus of £437 million in 2015 and involvement in key global projects such as the transformation of the Reichstag building in Berlin and the Smithsonian National Museum of African American History and Culture in Washington DC. We want to protect and enhance that position over the coming years.

Let me provide some context for and background to the regulations. The EU’s mutual recognition of professional qualifications directive enables European economic area nationals to have certain qualifications recognised in another member state. That includes the recognition of suitably qualified architects. It is a reciprocal arrangement, allowing UK and other EEA nationals the opportunity easily to register to practise across Europe and allowing UK practices to recruit the best European talent. The Architects Act 1997 sets out the specific procedures for registering architects in the UK. The recognition of qualifications of EEA applicants is carried out by the competent authority, the Architects Registration Board, which is an arm’s length body of my Department.

There are currently three routes to recognition for an EEA architect wishing to register in the UK. The main route to recognition for an EEA national architect is through an automatic recognition system. To qualify for automatic recognition, an EEA national needs to meet three tests. They must have an approved qualification, which means one listed in annex V to the mutual recognition of professional qualifications directive, and they need access to the profession of architect in an EEA member state and a statement from their home competent authority confirming that they are fit to practise.

The second route, known as general systems, provides for recognition for EEA nationals who do not have an approved qualification. The general systems route allows them to map their qualifications and experience against UK standards with the Architects Registration Board. The applicant is offered compensation measures—that is, the opportunity to undertake additional training to make up any differences in qualification. It is a long and costly process, which on average only four people pursue annually.

The third route facilitates the temporary or occasional provision of service. It allows EEA professionals to work in the UK in a regulated profession on a temporary basis, while remaining established in their home state. Typically, fewer than 20 EEA architects pursue that option at any one time.

If the UK leaves the EU without a deal, the mutual recognition of professional qualifications directive will no longer apply in the UK. The regulations will ensure that UK architectural practices can continue to recruit the best European talent and maintain their global reputation as world leaders in the field of architecture. The policy intention is to provide the sector with confidence that almost all applicants will be able to register in the same way after exit day as they do currently. That is the approach favoured by the sector, which recognises the skills brought by these architects as contributing positively to the UK’s reputation as a world leader.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

I am glad that the Minister recognises the UK’s world-leading status in this field, but in saying how much he recognises the contribution that the sector makes, he seems to be failing to recognise the concerns of the Royal Institute of British Architects, which has pointed out that one in five architects working in the UK is from another EU member state. RIBA is asking for a more permanent basis for a new system of mutual recognition of professional qualifications. Why are the Government not providing that?

[Kit Malthouse]

It is certainly our intention that, once this has landed, the system of recognition will be reviewed. One thing that the regulations do is to freeze the qualifications at a particular date, so that we can buy ourselves some time to have exactly those discussions. I will come to this later, but in relation to other countries, such as Switzerland, that cannot be accommodated in these regulations, there have been very productive conversations, which will allow mutual recognition in the future.

The regulations allow applications made before exit day to be concluded under the current system as far as possible. For future applications, the regulations will freeze the current list of approved qualifications under the EU’s mutual recognition of professional qualifications directive. As a result, after EU exit in a no-deal scenario, an individual holding an approved qualification will be able to join the UK register of architects if they have access to the profession of architect in their home state. That approach will preserve access for UK practices to EEA-qualified architects. The process will be open to anyone with an EEA qualification and access to the profession in the corresponding state, regardless of their citizenship.

[Melanie Onn (Great Grimsby) (Lab)]

The Minister is not addressing the fact that although the qualification requirements are frozen during the review period, however long it may last, at the end of the period new qualifications may be required. How long does he expect the review period to last before we get a settled position? Does he think there will be a detriment to people if new qualifications come in during the review period?

[Kit Malthouse]

Those are perfectly reasonable questions. We do not anticipate significant movement in the number of qualifications. Initially, the risk is low, but we would like to get the system under review as much as possible. If it becomes clear that a qualification needs to be accommodated, it is perfectly possible for us to take steps to do that on a one-off basis. The intention behind the system is that we maintain the ability of UK architect practices to access talent from across the world. Let us not forget that quite a lot of architects who come from non-EEA countries work in UK practices. They are accommodated in the UK perfectly happily.

[Neil Coyle]

Will the Minister give way on that point?

[Kit Malthouse]

Let me make some progress. We will remove general systems as a route to registration, because it is a long and costly process that is not utilised often and it places a significant unnecessary burden on individuals and the Architects Registration Board. Therefore, applicants without an approved qualification, including applicants who would have previously qualified for acquired rights, will be able to pursue the prescribed exam route and undertake further examinations and periods of study to allow for registration. That is the route currently utilised by third-country nationals.

The regulations provide a legal basis for the Architects Registration Board to continue to communicate with other EEA competent authorities to facilitate recognition decisions, ensuring that the Architects Registration Board can verify that the applicant meets the UK’s high standards of competence. Currently, the ARB facilitates information sharing through the EU internal market information system. Without a deal, we cannot be confident that the ARB will continue to have access to that important information-sharing system; therefore, the regulations place a requirement on the applicant to obtain the relevant information from their home competent authority, should the ARB not be able to secure it correctly.

The regulations will remove the rights to temporary and occasional provision of services, because without guaranteed access to information systems and an agreed process for reciprocation, that route will become unwieldy and of less value. That will have a minimal impact on the sector, because only 12 people are practising on this basis. Historically, fewer than 20 people have practised as architects in the UK on a temporary and occasional basis at any one time.

Our overall approach to these changes is in line with both the policy and the legal intent of the European Union (Withdrawal) Act 2018, and it enacts the policy that the Government set out in the guidance document in January. The draft regulations serve a specific purpose: to prioritise stability and certainty if the UK leaves the EU without a deal or an implementation period. The draft regulations will ensure that the UK continues to have access to top European talent after we leave the EU, thereby helping to maintain our reputation as a global leader in architectural services. Thereafter, the regulations provide a stable basis for Parliament to change the law when it is in the UK’s best interests to do so.

The draft regulations are necessary to ensure that the Architects Act 1997 continues to function appropriately if the UK leaves the EU without a deal or an implementation period. I hope colleagues will join me in supporting the regulations, which I commend to the Committee.

--- Later in debate ---

[Kit Malthouse]

I thank Committee members for reviewing these regulations. I will attempt to answer some of the questions that have been raised.

First, we acknowledge that the regulations are a temporary fix. Having consulted the industry, we have designed the regulations specifically to provide some immediate security and stability to architects who are operating at the moment and to those who might come in the near future. It is our intention to review the situation pretty quickly, but unfortunately I cannot give the Committee a date. Given that such professions are of high standing and that it takes quite a long time to qualify, one would hope that the level of movement in them will not be swift. Nevertheless, we are committed to reviewing the regulations. From conversations with European counterparts, I know that there is a recognition of the steps we are taking with the policy to recognise qualifications, and possibly a desire to reciprocate.

Part of my job is the discovery of all sorts of strange organisations across the world, and there is one, believe it or not, called the European Network of Architects’ Competent Authorities—the ENACA. At a recent meeting, although I gather that no formal decisions were made, a number of other competent authorities in EEA countries recognised what we were doing and were keen to reciprocate, and to continue to recognise UK-qualified architects where feasibly possible. There are moves already—it would be desirable, as in a number of other professional areas—to seek some kind of mutual recognition. We will review the matter, but unfortunately I cannot give hon. Members a date.

We are very mindful of the fact that architecture is a significant industry of great international repute. It builds buildings and designs other structures not just in Europe, but across the world. The Hong Kong floating airport on an island was designed by a British architect, and we seem to specialise in remarkable bridges across the world. There is a lot of stuff that we can do, and we are very keen to preserve that ability. In order to do so, we have been engaging significantly with the industry.

There have been roadshows and roundtables across the country—London, Birmingham, Newcastle and Cambridge, with more planned for Scotland and Northern Ireland—to understand the impact on the industry, and the industry’s readiness for a no-deal situation. Those discussions go beyond the scope of the regulations. We have met specifically with Foster and Partners, Allies and Morrison, and David Chipperfield Architects—three internationally renowned practices that produce work across the world—to discuss the implications for them.

One thing under consideration is the cost to business, which the hon. Gentleman from Scotland raised. There has not been a review of the cost, because we believe that it falls below the £5 million threshold, but the only imposition that we can foresee is a possible slight delay to the recognition of qualifications. However, we do not think that that will be significant, as long as the Architects Registration Board has access to the appropriate paperwork. Given that the regulations place the obligation on the applicant to produce the paperwork from their home country, the speed of approval is fundamentally in their own hands.

[Brendan O'Hara]

Given that I appear to be the Member for the whole of Scotland, I ask the Minister for the whole of England whether any assessment has been done on the impact on microbusinesses—very small businesses and one or two-person companies.

--- Later in debate ---

[Kit Malthouse]

There might be a misunderstanding here. Fundamentally, the regulations set out that the recognition of the person’s qualification to practise stays exactly the same. The only thing that changes is that, instead of the Architects Registration Board being able to get the information required to prove that the person has the qualification, the person has to get that information in the event that we do not have access to it. Fundamentally, the ARB will operate in the same way, but the route of access to the information will become the obligation of the individual. It will not be within the ability of the ARB, because of the lack of access to that information.

Competent authorities in the EU may decide to continue to provide the flow of information, in which case nothing will change. We are very keen, in introducing the regulations, to ensure that there is some stability for EEA nationals. We hope that the EU and the competent authorities will reciprocate, but Committee members will understand that that is not under our control. However, we are seeing movement in Europe suggesting that they are keen to do so. In theory, the cost to business should be minimal, because it is just about the flow of paperwork to prove that the qualification is valid.

We are in conversation with the industry, through our general engagement, about the impact of immigration. A discussion is going on, brokered by us, between industry and the Home Office about the impact of the immigration policy that the UK might put in place. We will continue to keep that conversation up and running.

[Melanie Onn]

I want to take the Minister back to the question of IMI documentation. It can sometimes be difficult for individuals to secure that paperwork, so there may be delays. Will he encourage reciprocity of arrangements to ensure that there are no delays if the IMI information is not available to the ARB?

[Kit Malthouse]

Absolutely. Nobody wants there to be any delay in the provision of information, and the ARB will seek to obtain that information itself informally and on an ad hoc basis. There is no intention on either side of the channel to hold up the approval of architects’ registration. We want to find a way to co-operate on that process. There is a technical, legal basis, because the IMI may not be available.

Having said that, I have a professional qualification myself—I am a chartered accountant—and if I wanted to practise chartered accountancy in an EEA country, I would expect to have all the documentation in my briefcase when I went to do so. It is not that difficult. If I am paying 450 quid a year for my registration at the Institute of Chartered Accountants, the least it can do is to provide me with my practising certificate, if I am a practising chartered accountant. Sadly, as a moderate accountant, I have not practised for many years.

Do not forget that people with a professional qualification have a requirement to do what is called CPD—continuing professional development—to maintain their suite of skills. That applies just as much to architects, and of course the CPD process is approved by the various competent authorities. The idea that architects qualify, never communicate again with their approving body during their professional life and then cannot find the paperwork when they need it is not a true reflection of the situation, but I understand what the hon. Member for Argyll and Bute was saying.

I hope that that has covered most of the questions. I am grateful to Committee members for considering the regulations. We recognise that the industry is an important one for the UK. Many of the industry’s comments that the hon. Member for Great Grimsby referred to were probably made before we released our policy, which the industry broadly approves of, albeit on a temporary basis. I hope that the Committee will join me in supporting the regulations.

Question put and agreed to.

Resolved,

That the Committee has considered the draft Architects Act 1997 (Amendment) (EU Exit) Regulations 2019.