Infrastructure Bill [Lords]

Nick Raynsford Excerpts

Monday 8th December 2014 Commons Chamber

[Mr Hayes]

I may have revealed a prejudice in favour of Nottinghamshire and Lincolnshire, which, as you know, Mr Speaker, are deeply ingrained on my heart. I will seek to counter that when my hon. Friend the Member for Hexham (Guy Opperman) next visits me.

Alongside the transformational investment, we propose to turn the Highways Agency into a Government-owned company, with the Secretary of State as its sole shareholder. The company will have stable, long-term funding that is set through a road investment strategy. Our ambitious programme of investment can be delivered only through a road operator that is fast and efficient and that provides a better service to road users. As a result, it will be able to plan ahead more effectively and deliver best value for money to the taxpayer. The changes are expected to save the taxpayer at least £2.6 billion over the next 10 years. Hon. Members will be familiar with the impact assessment that makes that clear.

The impact on the supply chain of creating a Government-owned company with greater certainty over funding and a clear relationship with Government will be positive. In the past, the construction industry has reacted to new spending on a case-by-case basis, and has not invested in the equipment and skills that would create long-term jobs in road construction.

If I may depart from my script at this point—although the Secretary of State will not worry about that, I can see that civil servants might, but I am going to do it anyway—I should say that I think there is a challenge in delivering this strategy. The Government can devise a strategy on the basis of the empiricism that I mentioned earlier. Bold Governments put money behind that, which is precisely what this brave and bold Government have done, but delivery will be a challenge and we will need to work with a whole range of organisations. The Highways Agency, of course, works with a number of private sector organisations. There are big issues relating to the supply chain and the skills necessary to make this happen. Those challenges would face any Government and they need to be considered carefully. They will require a new energy in respect of the acquisition and development of necessary skills. However, the Bill gives us the opportunity to do just that: the chance to give the construction industry the certainty it needs to invest in people and skills for the long term.

We have also listened and learned on a range of other issues. The British Transport police told us that the drafting of the Road Traffic Act 1988 did not allow it to require vehicle owners to disclose the identity of drivers who committed road traffic offences on the railway. We will change that. We have listened to calls to extend the BTP’s jurisdiction beyond the railway environment to help to protect people.

The provisions on invasive non-native species will allow our environmental officers to address the few cases each year where owners do not allow access to their land to eradicate new species that threaten to spread across the country. Invasive non-native species are estimated to cost the UK economy £1.8 billion a year. They are indiscriminate: they damage gardens, private land, public land, farmland and infrastructure sites.

We have introduced a number of measures designed to help to get Britain building. The small changes we are proposing speed up the approval of nationally significant infrastructure projects, such as the Thames tideway tunnel, road schemes and other major schemes, and will send a clear message to investors and developers that the steps to deliver transformational projects are as simple, sensible and straightforward as possible.

Those who believed that the coalition Government, with all the inevitable pressures and tensions, could not be bold, have been proved, wrong have they not? Among the many examples of boldness, some stand proud. Hinkley Point C, a scheme approved under the improved nationally significant infrastructure projects process, took 17 months to receive planning consent. That compares with more than six years for Sizewell B, including a public inquiry that lasted three years. We think we can do more and that we can improve on that. It is vital that we do so, because these schemes are hugely important. Hinkley Point C will deliver more than 900 skilled jobs for 60 years.

On deemed discharge, we have all seen a piece of land that has been bought, fenced off and ready to be developed, and felt a pang of frustration due to a seemingly inexplicable delay. The measures to discharge planning conditions will ensure that planning applications can get on and be delivered. The Government have already taken action. We have delivered a clear policy in the national planning policy framework and provided fresh guidance, but we need to go further. Recently, a major house builder identified that more than one third of its entire land bank was tied up in the planning system, awaiting reserved matters approval or the discharge of conditions. As a nation, we simply cannot afford to accept unnecessary delays to much-needed development that has already been subject to local scrutiny and granted planning permission.

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

rose—

[Mr Hayes]

I will happily give way to the right hon. Gentleman. I will then make a comment about my right hon. Friend the Member for Wokingham (Mr Redwood) that is highly complimentary.

[Mr Raynsford]

The Minister talks about deemed discharges and refers to the national planning policy framework. Where a local authority has set a condition that is in conformity with the national planning policy framework, does he believe that it should be subject to deemed discharge?

[Mr Hayes]

That is a fair question, and one which has already been put to me by those in local government. I will look closely at that, but I am anxious—the right hon. Gentleman is a great expert, given his experience as a Minister and, beyond that, his understanding of house building—and keen to ensure that this does not create unnecessarily bureaucratic or over-regulatory delay. The point he makes is a good one and I will certainly go away and consider it during the passage of the Bill. I say to my right hon. Friend the Member for Wokingham—who has intervened twice and might have another go in a minute, who knows?—that this is a very good example of the Government taking action to make the system more straightforward and less bureaucratic, so that decisions can be made in a timely way and be acted on with appropriate promptness. Wise as they are on these things, I am sure the Opposition will not disagree. Likewise, when they reflect on much of the Bill, I suspect they will appreciate it is the right thing to do in the national interest—but we will hear from them in a few moments.

Public sector land is an important source of land for development, and we have already released land with the capacity for 90,000 new homes, but to make that happen we propose to allow a Government arm’s length body to transfer disused surplus land directly to the Homes and Communities Agency or the Greater London authority, rather than having first to transfer it back to the parent Department. This measure will once again reduce bureaucracy in the transfer of land, meaning that disused Government-owned land can be brought to the market more quickly to build homes and improve communities.

As you know, Mr Speaker, the Government are committed to England’s public forest estate remaining in public ownership—[Hon. Members: “They are now.”] I know Labour is in the woods, but we are committed to the past, present and future of our forests. Hon. Members, including my hon. Friend the Member for Forest of Dean (Mr Harper), have raised their constituents’ interests several times in the House and have influenced the decision to amend the Bill to ensure the measure will not apply to them.

The move to digitise and centralise local land charges and free up the Land Registry to take a wider role will ultimately help people buying and selling their homes. The Government aim to make dealing with property quicker, cheaper and easier. The Land Registry is well placed to help achieve that aim because it is already at the centre of the conveyancing process and is the largest single source of property information. The changes in the Bill will stop the wider disparities in charging, currently ranging from approximately £3 to £76, and will lead to a more efficient service for searches as people access a single provider rather than one of 348 separate providers. We need modern systems to underpin the property market.

On zero-carbon homes, we have already tightened building regulations to make new homes more energy efficient. Today’s new homes save people about £200 on average—

--- Later in debate ---

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

I draw the attention of the House to my interests as declared in the Register of Members’ Financial Interests, and to my non-pecuniary interests as a trustee of the Town and Country Planning Association. I was pleased to listen to the speech by the hon. Member for Wealden (Charles Hendry). He made a number of very important points. I hope he will forgive me for not following on directly from what he has said, but I will refer to him later in my speech.

This is a very diverse Bill that covers a very wide range of issues, but I want to focus on specific issues in part 4. It is not just a disparate Bill with a huge range of clauses; it will also have different impacts in different parts of the United Kingdom. We have been debating devolution quite a lot recently and a number of Members have advocated the case for MPs not being able to vote on measures that are devolved for local decision in the areas they represent. That is an issue we need to think about in relation to the provisions in the Bill. The explanatory notes give a pretty good feel on this matter:

“The provisions in Part 1 extend to England and Wales only, save that clauses 14 and 16 to 18 extend to the United Kingdom…In Part 2, clause 19(1) extends to England and Wales only and clause 19(2) extends to England, Wales and Scotland…The provisions in Part 3 extend to England and Wales only. The provisions in Part 4 relating to nationally significant infrastructure projects under the Planning Act 2008 extend to England and Wales and (in relation to certain oil and gas cross-border pipelines) Scotland.”

And so on. However, if we look at the Bill in detail, we can see that in clause 27 the provisions relating to the Homes and Communities Agency apply to England outside London, and that there are separate provisions relating to the Greater London authority in the London area. I therefore have to put it to Members who advocate voting rights being restricted to Members who do not represent an area with a separate devolved authority taking decisions, that I would like to hear how they propose the House should consider the provisions in the Bill and which particular sections would be open to voting by Members from different parts of the country, whether they come from Scotland, Wales, Northern Ireland, London or the rest of England, because parts of the Bill relate only to each of the areas I describe.

I intend to restrict my comments to part 4, which itself contains diverse provisions, not because the other parts are not important but because there is simply not time to do justice to them all. Clauses 23 to 25 relate to the planning regime for nationally significant infrastructure projects. There are some modest amendments to improve procedures. I personally have no objection to them, as I believe they are helpful. I merely reflect that when the Planning Act 2008, which introduced the nationally significant infrastructure planning regime, was debated in the House, the present Government were extremely critical of it. I am glad that they have now decided that this initiative, introduced by the previous Government, is worth while, and that they are supporting it and taking it forward.

Clause 26, however, raises an altogether more problematic issue to which I have already alluded. It allows the Secretary of State to pass regulations by statutory instrument that would allow specific planning conditions to be deemed to be discharged if a period of time elapsed without the planning authority having reached a decision. I accept entirely that delays in discharging conditions can prove highly problematic and burdensome for developers, and I am not arguing against sensible measures to accelerate the discharge of planning conditions. However, the clause is a blunt instrument and could well result in measures being arbitrarily prevented from mitigating the serious adverse impacts of developments on local communities. In its briefing, the Town and Country Planning Association says that the Department for Communities and Local Government technical consultation on planning

“reflects this dilemma by recognising classes of condition whose function is too important to be subject of any deemed discharged. The question must be whether any NPPF compliant condition can be regarded as so trivial as to have no impact on the wider community.”

I put that question to the Minister earlier, and I was pleased he agreed to reflect on it.

The TCPA continues:

“Paragraph 206 of the NPPF states that ‘planning conditions should only be imposed where they are necessary, relevant to planning and to the development to be permitted, enforceable, precise and reasonable in all other respects’. The tests of necessary, relevant and reasonable provide a strong framework and logically imply that there should not be a body of conditions which are in some way frivolous or unimportant.”

That is a telling point on which I look forward to hearing the Minister’s view when he has had a chance to reflect on it, because it concerns a very significant issue. Ministers used to be vocal in their support for the principle of localism—of allowing local communities the power to promote their interests and reject proposals that damage the amenity or well-being of the area or its residents. I hope, therefore, that when they have had a chance to reflect, they will assure us that no planning condition relating to the material amenity of residents or the wider community will be subject to the deemed discharge provision.

One planning issue that surprisingly is absent from the Bill is an updating and clarification of the remit and role of the new town development corporations, which were established in the 1940s and played a key role in developing the substantial number of new settlements subsequently created in our country. Now that the Government have given their approval to the creation of a new generation of garden cities and have agreed that a development corporation is the appropriate vehicle to promote the projected new settlement at Ebbsfleet, it is time for a new statement of the purposes of new town development corporations.

Simply seeking to apply the urban development corporation model, which was devised for different circumstances and with no clear statement of its social and environmental objectives, is not adequate. In the other place, the concept of a new definition of the role and purposes of a new town development corporation was considered, and I hope that if the Bill is examined in detail in Committee, an appropriate new clause can be introduced to achieve this. The TCPA has undertaken substantial work in drafting an appropriate statement of the purposes and objectives of the new town development corporations, and I hope this can provide the basis for an improvement to the Bill.

The third weakness in part 4 that I would like to highlight relates to the low and zero-carbon agenda—another area in which the last Government made important advances. The ratcheting up of the energy requirements in part L of the building regulations, the creation of the route map to zero-carbon housing through the code for sustainable homes, the establishment of the zero-carbon hub and the setting of a target for reaching zero carbon in new homes by 2016 were all significant initiatives that have had a very positive impact. Our new homes now achieve much higher standards of energy performances than they did a decade or two ago.

I have first-hand experience of that. I live in a new home built in Greenwich millennium village, which was designed to be an exemplary development. It was pioneered by the last Government and set high energy efficiency standards. My flat is now eight years old, so it is not at the cutting edge of new energy performance, but last winter I did not need to have the heating on at all, so good is its energy performance. The hon. Member for Wealden referred to the previous winter, focusing rightly on the issue of energy supply, and said it was a very cold winter. In that very cold winter, I needed just 42 hours of heating.

My argument is this: just as important as energy supply —I entirely accept the emphasis of the hon. Member for Wealden on it—is energy efficiency to ensure that we are not wasting energy unnecessarily and that people have the benefits of warm sustainable homes in which they can afford to keep warm through winter. That is the great benefit of the whole low and zero-carbon programme. It is not just about helping to achieve our carbon reduction targets, but about improving people’s quality of life so that they live in better, warmer and more economically maintained homes.

That is why I find it very disappointing to see yet further evidence in the Bill of the Government backtracking from their previous position and indeed their predecessor’s ambitions—first by resiling from the previous ambition to meet code level 6 by 2016; then by watering down the standards to be met on site, even before offsite allowable solutions are invoked; and now by exempting small sites entirely from the obligations.

The UK Green Building Council had some fairly pithy comments to make:

“We see no reason why a development of 10 units should be treated differently from one of 11. Creating a disparity between the treatment of different sites opens up the possibility of unforeseen and undesirable outcomes, and possibly exploitation, where larger sites are broken down to qualify for the exemption.”

I wholeheartedly agree. It is very much the case that we should put the emphasis on helping small builders to meet the more demanding standards of high-energy performance homes rather than on providing exemptions not to meet those standards.

[Sir Andrew Stunell (Hazel Grove) (LD)]

rose—

[Mr Raynsford]

I give way to the right hon. Gentleman, who was a Minister in the responsible Department.

[Sir Andrew Stunell]

The right hon. Gentleman and I have had opportunities to disagree about things, but on this matter I wholeheartedly agree with him. Does he agree that there is no benefit—either to builders or the users of the buildings, let alone to the Government—in backtracking in any way whatever on the recommendations of the zero-carbon hub?

[Mr Raynsford]

I could not agree more with the right hon. Gentleman, and I hope he can exercise some influence on his coalition partners.

Amid the many mixed metaphors and rhetorical flourishes that characterised the speech of the Minister who introduced the Bill, perhaps the most telling was his characterisation of the Government’s vision of infrastructure as “looking through a kaleidoscope”. I think he meant to imply a colourful view of the world. That would certainly be in keeping with his character, and I am sorry that he is not in his place to hear these remarks. If the Minister and his colleagues thought about it for a moment, however, they would appreciate that the view through a kaleidoscope is one of fragmentation, in which clarity and order are shattered into thousands of disjointed pieces.

There could be no better metaphor for this Bill—a veritable tessellated pavement of ill-assorted measures, some of which may have beneficial consequences, many of which will not. The sum total will not add up to the comprehensive framework for infrastructure development, as advocated in the Armitt report, which is so clearly needed in Britain. This is a wasted opportunity to provide a coherent, long-term commitment to infrastructure in the UK. I wholly endorse the critique presented by my hon. Friend the Member for Birmingham, Northfield (Richard Burden) from the Front Bench: this Bill fails to meet our country’s infrastructure requirements.

--- Later in debate ---

[Stephen Williams]

One of its aims is indeed to streamline decision making to make sure that national infrastructure projects are built on time.

A few Members mentioned the part of the Bill that deals with invasive non-native species. Species control orders will be used to support national eradication programmes for newly arrived species in exceptional circumstances. We expect approximately only one such order to be issued a year, and we do not intend species control orders to be used where the reintroduction of former native species is undertaken legally. I hope that reassures the hon. Member for Brighton, Pavilion, who had a particular concern about the European beaver.

The shadow Minister asked about the operation of the habitats directive of the European Union. Our responsibilities under the habitats directive extend only to protecting those European-protected species whose natural range includes Great Britain. Many of the species listed in the habitats directive, such as the crested porcupine and the marsh frog, are clearly non-native to Great Britain and could be invasive. The directive allows for derogations from protection in certain circumstances, including for reasons of public health or environmental protection.

Several Members spoke in support of the deemed discharge proposals to speed up planning consents under the Bill. The deemed discharge of planning conditions is indeed a good example of where a small legislative change, as proposed in the Bill, provides far greater certainty for house builders, other planning applicants and communities. Feedback from the sector is that local planning authorities often take longer than the statutory eight-week period to reach decisions, preventing building work from starting on sites. This measure will help to ensure that local authorities hit the deadlines that they should already be working towards.

Zero-carbon homes is the part of the Bill for which my Department is responsible, and I am particularly proud that we have got to this moment. Concerns were, however, mentioned by the right hon. Member for Greenwich and Woolwich (Mr Raynsford), the hon. Member for Southampton, Test (Dr Whitehead) and my right hon. Friend the Member for Hazel Grove (Sir Andrew Stunell). The intention of clause 32 is to make sure that all new homes achieve a zero-carbon standard from 2016—either through on-site measures or off site where on-site measures are not physically possible. As my right hon. Friend mentioned, there have in fact been two tightenings of part L of the building regulations in this Parliament: one when he held my post in 2011 and one in April this year. Together, those two measures have increased by 30% the energy performance of new homes built with planning permissions after those dates.

From 2016, we want another 20% advance in the energy efficiency of new homes across the mix of housing. Those energy efficiency measures should be done on site where possible, but off site where not. There could be practical reasons why those energy efficiency measures could not be introduced on site. That is why it is necessary to provide for a scheme of allowable solutions. This incorporates a wide range of measures such as the retrofitting of older housing stock—several Members mentioned that there could be a great need for that—and there could be local or national schemes where we need to act together as a nation and not necessarily tie the allowable solutions scheme to local authorities.

[Mr Raynsford]

The Minister said—I hope I quote him correctly—that where it is possible to achieve the zero-carbon standard on site, that should be the objective, and that only where that is not possible should it be off site. Why is he proposing to break that rule in respect of developments of fewer than 10 units?

[Stephen Williams]

I am coming on to the proposed exemption for small sites. One sad aspect of the housing crash—when I believe the right hon. Gentleman was the Housing Minister during the last Parliament—was that a lot of small house builders left the market, and they have not yet come back. Many of the measures that the Government are taking are designed to encourage small house builders to re-enter the market. We recognise that the progressive tightening of the building regulations regime—it will have been tightened three times in five years—is a bigger challenge for small house builders than for larger ones. That is why we think that some sort of exemption is necessary. However, we have issued a public consultation so that we can hear from the sector and all other interested parties what the size of that exemption should be. I cannot prejudge the consultation, but some of the figures that have been mentioned, such as 50 housing units, are certainly well wide of the mark.