Clause 40
Housing and Regeneration Bill
9:45 am
Iain Wright (Parliamentary Under-Secretary, Department for Communities and Local Government; Hartlepool, Labour)
The process of appointing the regulator is ongoing, but when we come to part 2 of the Bill, I might be able to update the Committee on progress. As for co-location of the agency and the regulator, that is an operational decision, but we do not intend that there should be a physical separation as well as an organisational separation.
The right hon. Gentleman’s third line of questioning was about the circumstances in which there would be co-operation between the regulator and the agency. That is crucial, because, as he rightly said, we have previously had a merging of the regulatory and investment functions. The regulator will be concerned to see that registered providers are responsive to tenants and that their businesses remain viable, because that will help to raise standards for tenants. Crucially, it will need to understand the stresses of business, particularly the ability to borrow money.
As the investing body, the agency will be also be interested in the ability to borrow money, and will need to have an understanding of such matters when making investment decisions. It would be sensible for the agency to consult the regulator when developing its investment policies to understand the overall ability of registered providers to deliver. It is in everyone’s interests to ensure that the capacity and delivery capability of the sector is advanced as much as possible. In short, a close dialogue will be needed, while the regulator should maintain a clear independence, as has been set out and universally acknowledged. I hope that reassures the right hon. Gentleman.