Building Safety Bill (Fifteenth sitting)

Debate between Shaun Bailey and Ruth Cadbury

Tuesday 26th October 2021 Public Bill Committees

[Ruth Cadbury]

First, it will acknowledge, in property law, that there is an impact on people of the lack of appropriate action by the Government. Secondly, when the Government actually accept the polluter pays principle, including builders and developers of existing homes, which is where the main concern is at the moment, they could recoup some of the costs from those builders and developers, which could contribute to additional mental health support. The importance of the new clause is to acknowledge that the building safety crisis is an awful lot more than a building safety crisis; it is a people crisis.

[Shaun Bailey (West Bromwich West) (Con)]

I want to understand this from a practical point of view, so could the hon. Lady clarify—I apologise if she has covered this; I am listening intently to what she says—who would draft these reports? More broadly, given the obviously untold scale mental health impact this crisis has had, what assessment has she made of the impact on existing services, from which we would have to take professionals out of stream to draft these reports? I am keen to understand that point.

[Ruth Cadbury]

If we were to push the new clause to a vote and it was accepted, the details of that are in there. This is not unique in legislation. It can be done and it can be enacted if the Government will is there. We are trying to establish whether the Government actually care about the people who are impacted by this crisis.

Building Safety Bill (Tenth sitting)

Debate between Shaun Bailey and Ruth Cadbury

Thursday 23rd September 2021 Public Bill Committees

[Shaun Bailey (West Bromwich West) (Con)]

I will keep my comments brief. I want to touch on whether primary legislation is the appropriate place to set out the specification.

I fully appreciate and do not disagree with the comments that have been made on the need to see the detail. I completely agree with the comments of members across the Committee about the need to consult and to ensure that stakeholders are appropriately engaged. If we put this in primary legislation, I think there might be a slight unintended consequence of pigeonholing it too far.

My interpretation of the ABI’s evidence is that there is a need to ensure that appropriate stakeholder feedback is reflected in regulation. In other areas, it is not uncommon for insurance mechanisms such as those in clause 47 to be delegated to secondary legislation, because it allows time for that engagement and the pulling together of stakeholders. It also allows for drilling down into the detail, because that secondary legislation can focus specifically on those really important points. As my right hon. Friend the Minister has said, it is appropriate to delegate to secondary legislation, but I also agree with the points raised by the hon. Member for St Helens South and Whiston. There is concern in the industry, as we have heard, particularly about incidences of fire and the inability to obtain appropriate insurance. Clause 47 seeks to remediate that and to interlink that more widely, so that we can have the safety we have been talking about and the cultural change that the hon. Member for Weaver Vale mentioned a moment ago.

This is an important but technical debate on whether primary or secondary legislation is the appropriate place for the requirements in clause 47. Broadly speaking, I think my right hon. Friend is right, but I say to him again, and this has been echoed across the Committee, that Members are seeking to ensure the broadest level of engagement with different stakeholders as this progresses. That will be important in ensuring that the subsequent legislation that feeds off clause 47 reflects accurately what we are trying to bring about and, ultimately, that the clause achieves its aims.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I share the concerns about what is happening to the insurance industry in the context of building safety. I also share the concerns raised by my hon. Friend the Member for St Helens South and Whiston about the Bill’s reliance on secondary legislation for so many elements, including insurance.

I want to highlight a couple of issues that the insurance industry has raised with us. We have had submissions from AXA—one of the biggest insurers in the country—and from the Association of British Insurers, which says that it is

“concerned that significant detail is left to secondary legislation.”

The ABI has raised specific concerns about the availability and affordability of cover for fire safety works, an issue that is already hitting a number of professionals in the construction industry. It is concerned about the confusion over the definition of the accountable person and the building safety manager roles, and how that impacts on their ability to obtain professional indemnity insurance. It wants more detail so that there is no “potential for confusion”. The ABI is also concerned about the

“legal position where there may be multiple APs responsible for a building”,

and it is seeking

“a better understanding of the liabilities that flow”

from the issues of underwriting PI insurance, and particularly how those liabilities are split between the two roles.

The ABI goes on to say that

“the current market conditions make it a sub-optimal time”

—I love the term “sub-optimal”; it basically means “a rubbish time”—

“to be launching any kind of new regulatory framework requiring mandatory PI cover.”

Of course, we all want everyone involved to have adequate insurance cover in some form or another.

Building Safety Bill (Sixth sitting)

Debate between Shaun Bailey and Ruth Cadbury

Thursday 16th September 2021 Public Bill Committees

[Shaun Bailey]

It is a pleasure to serve under your chairmanship, Mr Davies. Again, I find myself being slightly repetitive. I do not disagree with the sentiments of the hon. Member for Weaver Vale. On this point, he and I will probably find a lot of common ground. However, the amendment strays slightly into the planning space—I almost get the impression that the hon. Gentleman is perhaps trying to tease the Minister to give us a sneak peak of what might be in the planning Bill in the Queen’s Speech. Our local planning authorities should consider these matters when they determine planning, and I know from the local councils I deal with that they do. They do have conversations when they look at the design of a particular development. They consider what impact it will have, whether there will be space to live, and whether people will feel they can live there meaningfully.

[Ruth Cadbury]

I understand the hon. Gentleman’s belief that the amendment strays into planning, but it talks about the

“risk of harm arising from the location, construction or operation of buildings which may injure the health and wellbeing of the individual.”

Where, particularly in the construction or operation of buildings, are the planning issues? If a building is operating unsafely or the construction is unsafe, irrespective of the height or what the building is used for, the lack of safety is not a planning issue, but a construction issue.

[Shaun Bailey]

I thank the hon. Lady for her intervention, and I see her point, but I maintain the point that I made: we are slightly straying here. I see what she says, because if a building is fundamentally unsafe, of course the new Building Safety Regulator would need to intervene. I question whether we need the amendment to say that, though. I am concerned that perhaps these conversations are happening before time. Broadly speaking, although I agree with the sentiments behind the amendment, I just think that operationally—

--- Later in debate ---

[Ruth Cadbury]

We do not have an issue with the amendment, because it seems logical to bring leaseholders within the scope of the clause so that it is consistent with other references to leaseholders elsewhere in the Bill, but I will take this opportunity to probe the definition of “resident”. The Minister talks about high-rise—another definition that we will talk about later—residential and other in-scope buildings. Who is a resident? I understand that resident leaseholders, assured shorthold tenants who are leaseholders, and social rent tenants are all obviously residents, but what about residential licensees in other forms of tenancy; guardians; students in student accommodation, particularly if that is their sole home; residents of care homes, for some of whom that is their only home; hotel guests; hospital patients; people renting holiday lets? Those are just the ones I can think of, off the top of my head. Is one a resident if one puts one’s head to sleep overnight in a building, or is there only a limited form of occupancy status in order to fall into scope of the Bill?

[Shaun Bailey]

I will be brief, because I think this clause and the amendment to it are relatively straightforward. The hon. Member for Brentford and Isleworth makes an interesting point. I will explain my understanding of how that will work—forgive my ignorance if I get this wrong. For some of the scenarios that she highlighted, such as student accommodation and holiday lets, I imagine that a structure will be in place so that someone above that will manage the building that falls in scope of the clause, but we would also hope that within that there would be a responsible landlord, whoever that might be, who has that relationship and can articulate those messages. I do not disagree with her scepticism about those groups engaging in the way that we would expect them to.

[Ruth Cadbury]

I was merely probing.

[Shaun Bailey]

Absolutely, and the hon. Lady made a really interesting point that allows us to think about how that would operate. We talk quite abstractly about things, and the clause in particular sounds very nice, but when we consider the detail of its operational function, we realise that a lot of people caught by the provision will have someone above them in the ownership chain. How can we ensure that those obligations are met?

Broadly speaking, I agree with the clause. It is absolutely right to ensure proactive engagement between the regulator and the relevant persons. As my right hon. Friend the Minister touched on in his contribution, the regulator should not be there just to slam down when things go wrong; it should be proactive in ensuring that things are done correctly in the first place. I will listen very intently to his response to the hon. Lady’s interesting points. From an operational perspective, it is important to remember that there will be people between those relevant persons, and that the regulator, as it carries out its engagement practices under the clause, will encourage best practice from those people as well.

Building Safety Bill (Fifth sitting)

Debate between Shaun Bailey and Ruth Cadbury

Thursday 16th September 2021 Public Bill Committees

[Shaun Bailey (West Bromwich West) (Con)]

It is a pleasure to serve under your chairmanship, Mr Dowd, to participate in this Committee and to follow the hon. Member for Weaver Vale. His contribution was fascinating, and I want to pick up on one of his points about clause 2. I hear what he is saying about not necessarily dealing with the present, but clause 2 is also focused on the future. I am sure he will agree that we have to ensure that we do not see a repeat of what we have seen thus far. We have to ensure, as we heard in the evidence sessions, that the housing market and the industry is fit for the future and keeps people safe, and that we do not allow this race to the bottom to continue or put vulnerable people at the risk of individuals who seem to think it acceptable to create unsafe places to live. Clause 2 is part of the patchwork to do that.

My right hon. Friend the Minister talked about the importance of the Building Safety Regulator sitting within the Health and Safety Executive. I absolutely agree with him. He particularly mentioned the importance of collaboration. HSE has 45 years of experience in dealing with health and safety, and will now be focused on building safety too. That is the right approach. As the Building Safety Regulator is developed, we have to ensure that the right expertise is there, because it will have such a crucial role in the future of the housing market, probably for the next generation.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

I agree that the Bill is better than what we had before. The hon. Gentleman talks about working for the future and future buildings. Is the system going to be resourced adequately to deal with both the future and the mistakes of the past? It was only through the Grenfell fire’s exposure of flammable cladding that the cladding was removed from the Paragon development in my constituency, which was built by the Berkeley Group 18 years ago. Two years after the cladding was removed, after a series of inspections, it was found that the structure of the building was fundamentally unsafe and the 800-odd students and 150 shared owners and leaseholders were given a week to leave. Should HSE and the Building Safety Regulator not be sufficiently resourced to find those buildings that are already occupied, by all sorts of different users for different purposes, to ensure that they are safe for future use, as well as being resourced to deal with the future?

[Shaun Bailey]

I thank the hon. Lady for her question. My hon. Friend the Member for Bolton North East made a similar point about resourcing to the Minister. The Minister referred to a funding uplift, and I am hopeful. Obviously, I have no control over those levers, but I would be hopeful that part of the resource uplift would go into that. I do not disagree; the hon. Lady is absolutely right: if we are going to put in this regulator, it has to have the resource to do the job properly. We cannot have it cutting corners, because that only adds to the problems that many of her constituents have already had to deal with. It has to come with a commitment to ensure that the resources are there to adequately deal with the issue.

I am sure there will be debates on what that actually looks like and what the numbers are, but the hon. Lady and I can both agree that the fundamental, core principle is that the regulator needs to be resourced properly. The intervention on the Minister by my hon. Friend the Member for Bolton North East was absolutely right. We can talk in high-level terms about how great it is to have a new regulator, but we have to make sure it can do the job day to day. That is the important part. The one thing I would raise with my right hon. Friend the Minister, while I have his ear in Committee, is that we have to ensure that the system works properly.

I broadly welcome clause 2. It is right that we have a regulator that draws on existing expertise. It is also right that, broadly speaking, the regulator has the ability to make the decisions unimpeded. I welcome what my right hon. Friend the Minister said about not being able to bring about ministerial directions to overturn decisions of the regulator. That is the right move. Given what we have seen in this space to date, having an empowered regulator that can stick up for the most vulnerable is absolutely vital. Those lives that we have seen destroyed by incidents such as Grenfell—that cannot happen again. This plan ensures robustness.

Returning to the point raised by the hon. Member for Brentford and Isleworth, the resource has to be there and the regulator has to be allowed to do its job. I am hopeful, from the overtures that we have heard today, that that will happen.

I welcome clause 2. It is the right move. I think it ensures, in the longer term, the future of this market, and ensures that people looking to buy a home can live there safely, knowing that there is the oversight that they need and that we have an organisation in the Building Safety Regulator that draws on existing expertise but equally has independence. That is the key thing: the independence to do that job properly and ensure that those people are safe.

Building Safety Bill (First sitting)

Debate between Shaun Bailey and Ruth Cadbury

Thursday 9th September 2021 Public Bill Committees

[Shaun Bailey (West Bromwich West) (Con)]

Q Obviously, the success of any legislation depends on how it is enforced once it is implemented. I am keen to understand from your perspective, how far in any enforcement regime is it about industry buy-in and co-operation? How far should the Government go in terms of really strict, hard enforcement regulation to ensure that it is not simply a case of the industry having to do it, but that there is actually buy-in from the industry to do it and to respect the regulations?

Graham Watts: Both of those things are equally vital. I think the industry welcomed the decision to place the Building Safety Regulator within the HSE, because it is a well-respected agency and people take notice of its interventions. We understand that the regulator is likely to have somewhere in the region of 750 staff. It is not going to be an insubstantial body, and I am sure it will take effective enforcement action, but it needs buy-in from the industry. That comes back to my earlier point about a culture change within the industry, and not just in terms of the scope of the legislation—it must go beyond that. As people have said, the twin-track approach to regulations could be confusing and complex. We understand why there needs to be a limitation on the scope to begin with; otherwise, the system will not cope and will collapse. But there will be confusing areas at the margins, and it is essential that the industry adopts the same approach to its work on buildings that are not in scope and on buildings that are in scope. We cannot have a twin-track approach as far as safety is concerned.

Adrian Dobson: In fairness to the Government, it is difficult for the Government to regulate the competence and behaviours of the industry. Without the industry acting as a willing partner, it is virtually impossible, and the Bill tries very hard in that area. A more contentious issue is to what degree you have an element of prescription in what is done. We have had an element of prescription, and it was probably agreed that that was necessary because we had a stock of buildings that there were serious doubts about. I know that the Mayor of London has introduced an element that has been quite controversial, but I suspect that working out where the balance is will be quite difficult. When it comes to fundamental elements of fire and structural safety, I wonder whether you will inevitably end up with some firmer guidance. It might become prescriptive regulation or just clearer guidance on the basics of means of escape, compartmentation, alarms and sprinklers. Those are the fairly basic safety systems that buildings rely on.

[Ruth Cadbury]

Q Graham Watts, you just said that you think the HSE is the right place to place the building safety inspector. Do you feel that the HSE has the right expertise and sufficient resources to do that, taking into account the additional resources that I believe the Government have committed for it?

Graham Watts: I guess it is an unfair question for now, because the regulator does not exist yet. But I have been impressed by the way in which the HSE has set up interim arrangements. For example, the interim industry competence committee—there is a committee on industry competence on the face of the Bill—has already been set up, and I am already liaising with the chair of that committee to make sure that there is an appropriate transition from the work that we have been doing within the industry for the last four years, to the work that will be eventually housed within the regulator.

Clearly, the staff at the HSE are experts on health and safety, so Peter Baker has to build up his team. He is a long way from being able to do that at the moment, but I am hopeful that the same principles and protocols that have driven the HSE—certainly its ability to consult the industry through bodies such as the Construction Industry Advisory Committee, which has been significant—will be carried over into the new regulator when the legislation is enacted.

Adrian Dobson: At a very basic level, the fact that it will be within the HSE sends a useful signal, because it says that at the heart of the building regulatory process is the safety and welfare of people. It is a simplistic thing, but it is quite an important signal. It has probably been given to the HSE because of the relative success of the CDM regulations. I do not think anybody in the industry thinks the CDM regulations have been perfect, and it has taken quite a lot of iterations to get them to where they are today. There are some weaknesses, particularly in the handover of information at the end of the project. That will also be so important for the safety of buildings under the new Fire Safety Act. But I think HSE has a good track record, which is possibly what is giving people confidence about it.

Building Safety Bill (Second sitting)

Debate between Shaun Bailey and Ruth Cadbury

Thursday 9th September 2021 Public Bill Committees

[Ruth Cadbury]

Q My question rolls on from the last. The building safety charge is merely for leaseholders; I do not even know whether it depends on whether you are a leaseholder of a private developer, a housing association or even a local authority, and we are just talking about permanent residential housing. There are already many differences, and we already have the current difference in the building safety fund, which only applies for leasehold homes. Even housing associations cannot claim on it for their social rents, so they have to use funding for refurbishment or new build social rent housing to address those deficits. Do the panel members, particularly from the federation and the LGA, feel that if there was an indemnity scheme on freeholders, developers and builders, it would be more transparent and easier to claim, irrespective of who the user is or who the main building manager is, in terms of which sector?

Victoria Moffett: To be honest with you, that is an arrangement that we have not considered at all. Rather than answering on the hoof, we might have to go back and give that some thought. We can certainly do that and write to the Committee.

Councillor Renard: We will also provide a written answer to that. It is a really good question, and we will give it some thought and respond to the Committee.

[Shaun Bailey (West Bromwich West) (Con)]

Q I want to touch on accountable persons. As we discussed earlier with clause 84, accountable persons have to “take all reasonable steps” to ensure safety. I know this might sound like I am asking you to pick your shopping list, but what do “reasonable steps” look like? We have these debates all the time, and I know this is coming out in secondary legislation later. To dovetail into that, on the duty to co-operate, we know there are some quite complex ownership structures. In my patch, we have a situation whereby you will often have a tenant management co-operative, which is an arm’s length body of the council but is a separate organisation in its own right. In that scenario, how do you ensure there is not responsibility shunting? It seems that there is a risk there. In that scenario, how do we ultimately ensure that we have the accountability that the Bill, and the subsequent legislation, is trying to achieve?