Fire Safety Bill

Lord Newby Excerpts

Consideration of Commons amendments & Lords Hansard
Wednesday 17th March 2021 Lords Chamber

[Lord Newby (LD)]

My Lords, I begin by declaring an interest. I am a leaseholder in a block where I stay when I am in London during the week which has been found to have major safety defects and in which a waking watch is now in operation. I have therefore been able to see in my own bills but also by talking to people who live in the block what the consequences of the current situation really are. I strongly support the Motions in the name of the right reverend Prelate the Bishop of St Albans and of my noble friend Lady Pinnock.

This is a scandal of major proportions, and it is a modern one. Most of the buildings we are talking about have been built in recent years. We are not talking about a problem left over from the Victorians or the Edwardians; this is a recent problem of our own times. As we have heard, it is causing great distress, not minor worries, to a large number of people. The scale of the financial consequences of the problems they face affects not just their short-term economic position but every aspect of their lives. The immediate costs in themselves are pretty horrendous for people on modest incomes. In my block, as elsewhere, people in that position are having to take out loans at very high rates of interest to deal even with the ongoing waking watch costs, which are considerable. However, beyond that, people are stuck. They cannot sell their flat or move, even if there were compelling reasons for them to do so. In some cases they feel unable to start a family as they planned, because of the overwhelming financial uncertainties that they face. None of this, as is obviously the case, is their fault at all. The Motion in the name of the right reverend Prelate the Bishop of St Albans deals with the core of the problem and would remove from them the cloud of the future financial burdens they face. I strongly support it.

For reasons which I fully understand, his Motion does not deal with who should ultimately pay for all this. In my mind, that is pretty straightforward. The principal burden should fall on those who are culpable: the developers. They have made very significant profits over very many years from building substandard accommodation, and they should pay for it. In the case of Barratt Developments, which built the block in which I live, its profits over the past five years alone have been more than £3.5 billion. It can afford to clean up its own mess, and the same applies to other major housebuilders. Exactly how that is done is, I admit, complicated, but this is a challenge for the Government which they have not begun to meet.

During the lockdown, television channels are showing old series because it has been so difficult to make new ones. Last night, I watched an old episode of “Yes Minister”, which I strongly recommend. It is clear that the Minister here watched it as well because he has used exactly the arguments which Sir Humphrey used to persuade his Minister not to take action: “It’s highly complex. I’m really sorry. We’d love to do it but it’s really quite difficult, you know. Even if we could do it, which we can’t, it’s not appropriate to do it in this Bill. If we can do it—and I’m not sure we can—it may be possible to do it in a future Bill. I’m not sure which Bill; I don’t know when it’s going to come. But because it’s very complicated, you wouldn’t expect me to say further.” That is the Minister’s response to this.

In last night’s “Yes Minister”, what happened was that the Minister in it, completely frustrated by these usual arguments, put his foot down by announcing on national television that something was going to be done, which in effect bounced his Permanent Secretary into doing it. I suggest that the Minister, the noble Lord, Lord Greenhalgh, takes a leaf out of that Minister’s book and goes on television this very evening to say that he has been so impressed by the debate he has heard that the Government will now act speedily.

The truth is that the reason we are hanging about has everything to do with a lack of political will, and not to do with the technicalities. It is the job of government to deal with difficult things. Most bits of public policy are tricky and difficult. This is no exception but it does not mean that the Government have no policies on anything. It means that they choose what they want to devote time and effort to, and they have decided they are not prepared to put in the time, effort, commitment and funds to deal with this glaring injustice.

The right reverend Prelate’s Motion is a start because it removes the major part of the cloud facing people currently in difficulty and it should be supported. But even when it has been supported, it does not absolve the Government from grappling with this issue and sorting it out properly.

[Baroness Warwick of Undercliffe (Lab)]

My Lords, I declare an interest as chair of the National Housing Federation, the representative body for housing associations in England. Our members house 6 million people in 2.6 million homes, including a significant number of flats in multi-storey, multi-occupied buildings that need remedial work on their external wall system.

Nothing is a greater priority for housing associations than their residents’ safety. Following the awful Grenfell tragedy, they have been leading the way in the past three years by identifying buildings that need urgent work and carrying it out as quickly as possible. In his Motion C1, the right reverend Prelate the Bishop of St Albans wants to protect leaseholders from huge bills to make their homes safe, and I support him. Leaseholders should not be facing such costs. Other noble Lords have given vivid examples of the impact on leaseholders.

Housing associations are doing what they can to ensure their leaseholders do not have to foot the bill for developers’ mistakes by pursuing the companies that built the buildings, as well as warranty and insurance providers. Sadly, these efforts are not always successful so I applaud a move by this House to provide extra assurance to leaseholders living in these homes.

However, housing associations face a huge dilemma. They exist predominantly to provide social homes to those on lower incomes. The buildings that housing associations need to remediate due to safety concerns will largely be made up of social housing. This welcome move to protect leaseholders must also be coupled with further government funding to pay for the necessary remedial works to all the buildings that need them. While the funding that the Government have made available for remediation costs so far is very welcome, the £1 billion building safety fund and the additional £3.5 billion announced last month are not available to remediate homes in which social tenants live.

Fire Safety Bill

Lord Newby Excerpts

Consideration of Commons amendments
Wednesday 28th April 2021 Lords Chamber

[The Lord Bishop of Rochester]

My Lords, the right reverend Prelates the Bishop of St Albans and the Bishop of London have both been involved in earlier stages on the Bill and, regretfully, neither is able to be in your Lordships’ House this evening. However, I come with my own background and interests, as a former board member of various housing associations over 25 years and as the former chair of the charity Housing Justice.

As noted by the noble Baroness, Lady Pinnock, the right reverend Prelate the Bishop of St Albans has been heavily involved in this matter and has been persistent. He said yesterday that none of us wanted to be in this position at this stage. But while so much of the Bill is welcome—not least the £5 billion which has been referred to—there are continuing and serious concerns, some of which have already been expressed in the debate this evening, about the position of leaseholders and tenants, and particularly certain groups of leaseholders and tenants.

Yes, remediation is a complex matter, but I am sure that it is not so complex that it cannot be worked out. I want to believe that Her Majesty’s Government are sincere in the express desire to protect leaseholders and tenants. The proposed amendments, including one here tonight, are designed to provide time for the Government to bring forward their own statutory scheme. It is the absence of clarity about that scheme and the timetable for it which is the cause of continuing regret on these Benches. Mention has been made already of the loan scheme in relation to buildings under 18 metres and the fact that that is likely to come forward in the context of another Bill. But, of course, that leaves open the questions of the detail and timescale and, as the noble Baroness, Lady Fox, has just observed, there are leaseholders facing those bills today.

We have heard many tragic stories of people with unpayable bills and crippling insurance and service charges. One concern of Members of these Benches is the effect of all that on people’s health and well-being, as well as on their financial capacity. These are important matters; they affect people’s daily lives, mental state and financial futures. While the Bill tackles a number of really important things, it leaves open some others which leave people facing uncertainty and potentially very significant liabilities.

Whatever happens this evening, I know that many in this place and elsewhere will continue to make the cause, because this issue will not go away. I dare to hope that if the Bill does pass this evening, Her Majesty’s Government will bring forward their proposals as soon as possible in the new Session to remove the uncertainty from those who are finding it really difficult to live with. These Benches continue to hold out hope for a more empathetic attitude towards leaseholders.

[Lord Newby (LD)]

My Lords, I begin by declaring my interest as a leaseholder affected by fire safety remediation costs.

This afternoon, I decided to listen to the debate on the Bill in another place to see whether I had been missing something, by just hearing debates here, about the Government’s real reasons for not taking any appropriate action. Instead, I found that the key challenges that have been set out by noble Lords this evening were being made most eloquently by Conservative Back-Benchers. Bob Blackman made the key point that leaseholders have no luxury of time to deal with the demands dropping on their doormats today. Sir Robert Neill made the logical and consequential point that bridging provisions to fund remediation were needed, until the Government had put in place measures to recoup the costs from developers and builders—costs to be met, in the interim, by the Government. As a former Minister, he also made the telling point that the Government would have had time to produce their own amendments, if they had put their mind to it.

The response from the Government was from the right honourable Christopher Pincher, who replied with all the empathy and grace of a Victorian miller faced by workers’ demands to install expensive safety equipment on all the machinery. He also put the noble Lord, Lord Greenhalgh, to shame in his ability to ape Sir Humphrey. Unlike the noble Lord, who at least shows a certain lack of conviction in some of his adjectives, Christopher Pincher had none. In describing this amendment, as we have heard before, he mentioned the uncertainty that it would cause, the lack of clarity and the litigation that would flow, which would be voluminous. He had us almost in tears at the prospect of these terrible consequences.

There was not a word of explanation as to why, given that the Government allegedly want to do what is right, in the seven months since this Bill’s Second Reading they have made no progress whatsoever in bringing forward their own proposals to deal with the issues now. There was not a scintilla of a suggestion, from him, of when there would be certainty for leaseholders. He said that the building safety Bill would be brought forward as quickly as possible and that it would protect leaseholders “as far as possible”. Those two statements are of literally no comfort to somebody facing a bill today. We all know that those phrases “as far as possible” or “as quickly as possible” allow the Government to do whatever they want or not very much at all.

He also had the temerity to say that the Bill should now pass,

“so that people can get on with their lives.”

The one thing certain is that, if this Bill passes unamended, hundreds of thousands of people will not be able to get on with their lives, because overwhelming uncertainty will remain over their financial position and their ability, if they wish to do so, to sell the property in which they live.

The truth is that the Government have shown themselves indifferent to the mental and financial anguish faced by these people today, or else they would have made a meaningful commitment to the timetable for lifting the burden of costs and uncertainty from them. In these circumstances, how can we, in all conscience, pack up our tents now and let the Bill sail into the night? We on these Benches will not do so, and I urge Members across the House to vote for my noble friend’s amendment to bring tenants the relief that they so richly deserve.

[The Deputy Speaker (Lord Lexden) (Con)]

My Lords, the noble Lord, Lord Adonis, has also indicated a wish to speak, and I call him now.