Building Safety Bill (Sixth sitting)

Debate between Siobhan Baillie and Daisy Cooper

Thursday 16th September 2021 Public Bill Committees

[Daisy Cooper (St Albans) (LD)]

I have been struck by the outbreak of cross-party consensus on the content of this and the previous amendment. The dispute is about where it sits. If Government Members do not wish to see it in the Bill and we do not yet have a planning Bill to look at, I wonder whether the Minister might be able to provide some assurances that he would be willing to consider setting up an alternative mechanism that would be in between planning and housing, to look at precisely these kinds of issues that come up, as a form of horizon scanning.

On a slightly different note, which is slightly tangential to the amendment, we took evidence in our hearings, particularly from the Fire Brigades Union, on the need for a mechanism to do horizon scanning. I wonder whether that might be the place to take up these kinds of issues, and whether the Minister might be willing to provide assurances that he would consider such a proposal.

[Siobhan Baillie (Stroud) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies. I do not think I was articulate enough when discussing the previous amendment, when we talked about the process of adding amendments. I feel strongly that legislation needs to be functional and clear, and that it should be implemented as swiftly and simply as possible. It has to be understood by lay people, even if they are reading it in a rush, as we have seen with the amazing witnesses who have come forward, having become building experts because they have had to look into issues in their own buildings.

I fear that giving the regulator a role and an objective to prevent the injury of the health and wellbeing of an individual is a recipe for challenge and confusion, even though it may be well meaning.

Building Safety Bill (Fourth sitting)

Debate between Siobhan Baillie and Daisy Cooper

Tuesday 14th September 2021 Public Bill Committees

[Daisy Cooper]

Q Thank you for explaining why you support this principle. A small supplementary. To play devil’s advocate—I am perhaps inviting you to do the Government’s job for them—do you think there are any reasons the scheme would not work? Can you see any holes in it, or problems with it? Is there any reason why you think anybody might object to this particular proposal?

Martin Boyd: On the specific “polluter pays”, we have not seen the detail yet, so we do not know. The difficulty, as has been referenced in a number of witness statements to the Committee, is that a lot of the developers have used special purpose vehicles, so we do not know yet what proportion of the market would be able to recover from this anyway. The building in which I have a flat is 20 years old. I have to accept, in reality, that even if my developer had done something wrong it is rather stretching things to think that I could go back and take action against them.

Dr Glen: It is a very complex situation. If it wasn’t, we would have found the solution a long time ago. Is it perfect? No. Is it a good start? Yes, and I am very happy with good starts.

[Siobhan Baillie (Stroud) (Con)]

Q This is such a difficult area, and it has been very distressing for people who have been affected by the fire. We heard some really compelling evidence about the safety of high rises, and how to strike a balance of proportionality with the legislation, which is not easy. I think nobody expects the taxpayer to pay up front for everything. You have just said that, Mr Boyd, and that is completely right.

I was interested in your point about grants, Dr Glen, because ultimately we know that quite a lot of businesses have gone bust. Your proposal that we effectively get the taxpayer to foot the bills upfront, knowing that there will be a big gap potentially, is a problem. I am just playing devil’s advocate. On your point about grants, you are suggesting that the taxpayer pays. That is a point of concern for people who are not affected by this and are thinking about the overall financial purse.

Dr Glen: I understand that. The specific example that I was using for grants was that we strip a building down, take the cladding off, look at the building and say, “Oh my gosh. Something has happened to the concrete.” I completely understand why the Government should not be making every building as new. It is the practicality, because the way that service charges work means there is no profit margin in them. If there is any leftover at the end of the year, you give it back. If there is a deficit, you demand it.

This is the problem: let us say that you, Siobhan, are a leaseholder in a particular building, and I say, “Terrible news: we’ve found that there’s a bit of problem with the concrete, so we need to do some work on that. It’s not applicable for the building safety fund because it’s nothing to do with the cladding; it’s just Father Time.” If you then say, “I’d love to—I can understand where you’re coming from—but I just don’t have £2,000,” what do we do? If you do not pay, the others should not pay for you surely, so suddenly I am £2,000 short. That means that I cannot do anything as a managing agent, because I cannot place that contract. I am talking about short-term mechanisms to mean that we can get that building safe. That is why it is a complex situation with no absolute way forward.

On should the taxpayer pay—I am a taxpayer and would like not to pay—it is undeniable that, under successive Governments, there have been changes in regulation where, perhaps, a developer has said, “I would like to put this material up—it’s not cheap— can I?” and the local council has said, “Yeah, it’s fine”. That same local council and, in fact, sometimes the same person, is now saying, “Actually, you shouldn’t have done that”. Is it right that the developer or whoever in good conscience who did what they thought was right at the time should pay, or is that something where we should say, “Sadly, there are some things that taxpayers should front up for”? It is a very complex situation. I come back to it again: there is no single solution. The only one I can see is to let the Government pay now and then figure out how to get the money back later.

I would like to think a bit further than that. This will not be the last issue we have in housing over the next decades. Let us form this fund, so that when whatever it is that next comes up, whether it is something toxic that we did not know about or something else, money is in the bank so that we can start moving on these things straightaway. Let’s think forward as well.

Martin Boyd: I have a letter sitting here from officials in December 2017, after we had written to Ministers saying it is very urgent that Government intervene early on or we will end up with leaseholders going through a rather nasty experience that will drag on for years. I did not think at the time it would be so many years. The assumption was that, well, of course, the law will allow you to take your building owner, as we keep saying, to court and make them pay. It has not happened. The law was never ever going to make that happen.

The statements that we made have been made in Parliament too, and said that building owners should do the right thing. It is not what the law says they should do. They are under a fiduciary duty to represent the interests of their company. If you happen to own ground rent investment and therefore are deemed to be the building owner, which will only represent possibly 1% of the property value, or even less, how on earth are you expected to pay to remediate the cladding? It was never, ever going to happen. Grants have been the only way the system would work from the very beginning. I think it is still the only way that we have left.