Clause 106
Housing and Regeneration Bill
4:45 pm

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

I beg to move amendment No. 188, in clause 106, page 43, line 30, at end insert—

‘( ) The regulator may disclose information to a person acting on its behalf for a purpose connected with the regulator’s functions.’.

Roger Gale (North Thanet, Conservative)

With this it will be convenient to discuss Government amendment No. 189.

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

Under clause 106(1),

“A public authority may disclose information to the regulator for a purpose connected with the regulator’s functions”.

A public authority is defined in subsection (6) as

“a person having functions of a public nature (whether or not in the United Kingdom).”

Subsection (2) allows the regulator to disclose information to a public authority for a purpose connected with its own functions or those of the public authority. That is not a new power. The Housing Corporation has the power to disclose information under section 33 of the 1996 Act. For example, the regulator might need to share information with the Homes and Communities Agency, if the regulator discovers that the provider has not been using the HCA grant in the way intended, or has concerns about its long-term financial viability such that HCA investment could be jeopardised.

The regulator might need to pass on information to the police, if it becomes aware of, for example, fraud committed against the provider by an employee. Furthermore, it might need to disclose information to other regulators, such as the Charity Commission, where the registered provider is also a registered charity. Sharing such information with other regulators might help to reduce the administrative burden imposed on providers that are regulated by more than one body, and to avoid the need for both regulators to ask the body for the same, or very similar information.

Although clause 106(2) gives the regulator the power to share information with other public bodies, it might also need to disclose information to people other than public bodies. The regulator might want to appoint consultants and other agents in connection with its functions, such as specialist accountants—I like the sound of that one—or auditors to carry out an extraordinary order under clause 186, or housing consultants to assist in an inspection under clause 181. Such persons acting on behalf of the regulator would need to be able to see information that the regulator has in order to carry out the tasks entrusted to them by the regulator. Amendment No. 188 will allow that to happen.

We recognise that information sharing by public bodies, such as the regulator, is a sensitive issue. Clause 106(3) allows either the regulator or another public authority when disclosing information to impose requirements preventing further disclosure. The subsequent disclosure of information in contravention of such a restriction is an offence. At present, clause 106(5) provides that the maximum penalty on conviction is a fine not exceeding level 3 on the standard scale, which is £1,000. That is the same as the penalty provided for in section 33(5) of the Housing Act 1996.

Amendment No. 189 means that the regulator will not be able to disclose information if doing so would breach a statutory prohibition on disclosure imposed in other legislation. Similarly, it would prevent other public authorities from disclosing information to the regulator if doing so would breach a statutory prohibition.

Other legislation may state that disclosure of such information is prohibited except where allowed by other enactments. The words in brackets in amendment No. 189 mean that the regulator or public authorities could disclose information under clause 106 if other legislation states that disclosure is possible if allowed or required by another enactment. Clause 106 would be such another enactment, permitting disclosure in such a case. The intention is to clarify the powers of the regulator and public authorities while maintaining appropriate limits.

The amendments will allow a sensible onward disclosure when it is necessary for the regulator to carry out his functions, but enable the regulator to put further restrictions on subsequent disclosure. They will enable flexibility of arrangements while preserving the confidentiality of information that has been provided. I hope that that clarifies the matter.

Roger Gale (North Thanet, Conservative)

Just before we adjourn, I shall mention that we have considered Tuesday. If we do sit on Tuesday evening, it will be from 8 o’clock until 10 o’clock. That is still a matter for the usual channels, but it is what I am banking on at the moment.

Further consideration adjourned.—[Liz Blackman.]