Roger Gale (North Thanet, Conservative)

With this it will be convenient to discuss Government amendments Nos. 118 to 122.

Iain Wright (Parliamentary Under-Secretary, Department for Communities and Local Government; Hartlepool, Labour)

Amendments Nos. 117 and 118 make changes to clause 268, which in turn widens the existing power in section 94 of the Housing Act 1996 for the Secretary of State in England and Welsh Ministers in Wales to give financial assistance to any person in relation to the provision by them of general advice about landlord and tenant law and estate management schemes in connection with leasehold enfranchisement.

Amendments Nos. 119 to 122 make changes to clause 273, which widens the existing power in section 62 of the Commonhold and Leasehold Reform Act  2002 for the Lord Chancellor to give financial assistance to any person in relation to the provision by them of general advice about an aspect of the law of commonhold land so far as it relates to residential matters.

The purpose of clauses 268 and 273 and the amendments is to widen the existing powers contained in section 94 of the Housing Act 1996 and section 62 of the Commonhold and Leasehold Reform Act 2002 to allow financial assistance for the giving of information, training and dispute resolution services in relation to the matter specified.

The power under the Housing Act 1996 is used by the Department for Communities and Local Government and the Ministry of Justice to provide grant in aid to fund the Leasehold Advisory Service, known as LEASE, an executive, non-departmental public body which I am sure that hon. Members have contacted in relation to constituency matters. LEASE also provides an important front-line advisory role in respect of residential leasehold law as it affects England and Wales, as well as other leasehold-related functions.

The Welsh Assembly Government also uses section 94 to provide a contribution, currently in the region of £17,000 a year, towards the services that LEASE provides to leaseholders in Wales.

The power under the Commonhold and Leasehold Reform Act 2002 is currently used by the Lord Chancellor to fund the Leasehold Advisory Service to provide advice on the law of commonhold land relating to residential matters.

The need for these amendments came to light, Mr. Gale, after clauses 268 and 273 had become part of the original Bill. These amendments are important in that they allow the clauses to achieve their original intention. Amendments Nos. 117 and 118 allow funding to be given for the provision of advice, information and a dispute resolution service for leaseholders and the leasehold sector in general in relation to a wider range of leasehold-related matters.

There was concern that the advice had to be restricted to legal matters. The amendments, combined with clause 268 itself, would create a funding provision that is more appropriate to today’s needs, and to the provision of good, independent general advice and related services for leaseholders and the leasehold sector in general.

As for amendments Nos. 119 to 122, the original intention underlying clause 273 was to enable the Lord Chancellor to fund a wider range of services, including information, training and dispute resolution in relation to residential commonholds. These services will supplement the funding of general advice. They will increase knowledge of commonhold and improve the quality of the experience of living in a commonhold. The amendments also make it clear that the funding may be used even if the matter at issue is not strictly a matter of commonhold law narrowly defined.

I hope that I have explained the situation adequately, Mr. Gale.