Clause 135
Local Democracy, Economic Development and Construction Bill [Lords]
10:15 am

Stewart Jackson (Shadow Minister, Communities and Local Government; Peterborough, Conservative)

The Committee may know that we tabled an amendment to clause 135, but, sadly, it was not selected. This and following clauses will amend the  Housing Grants, Construction and Regeneration Act 1996—colloquially known as the construction Act—to overhaul the aspects of the legislation that deal with cash flow, adjudication and unreasonable delays in payment.

On the face of it, clause 135 is quite straightforward, and this issue has had quite an airing in past years. To give them their due, the Government have tried to move on from the significant consultation that took place in respect of the 1996 Act to make the improvements outlined, beginning some years ago with the Latham review on unreasonable delays in payment and adjudication and the payment provisions arising from the Act. The matter has been taken forward by both the former Department of Trade and Industry and the Welsh Assembly and has been subject to two separate and exhaustive public consultations and a significant amount of lobbying—no doubt, for members of the Committee and before that.

Although our amendment to the clause has not been selected, I shall just make a simple point that bears repetition. The Construction Confederation has raised issues relating to the clause and makes this point:

“It will undermine industry ‘best practice’ of encouraging contracts to be in writing.

It will inevitably lead to the examination of who agreed what with whom, with each party making representations to the adjudicator.

It raises the question as to how such a procedure (which will inevitably require oral representation and examination during the course of an adjudication) can be incorporated within what is already the short statutory timescale for adjudication (usually two months).”

The confederation makes this pertinent point:

“Swift adjudication remains the most effective way to tackle non-payment. Introducing oral or part oral contracts within its scope will increase costs and delay the process.”

The clause did not have a very significant outing in the other place, but I would like to ask the Exchequer Secretary about it. Incidentally, I was remiss in not congratulating her at the outset on her promotion. We are getting quite giddy at new Communities and Local Government Ministers on the magic roundabout that is Government reshuffles, but she had not been long in her role.

Paul Goodman (Shadow Minister, Communities and Local Government; Wycombe, Conservative)

This is a helpful suggestion to the Government Whips: given the repeated helpful and learned interventions of the right hon. Member for Greenwich and Woolwich, perhaps he could fill any temporary vacancy by coming to the Minister’s place.

Stewart Jackson (Shadow Minister, Communities and Local Government; Peterborough, Conservative)

My hon. Friend makes an astute observation. However, I am not sure that a soufflĂ(c) always rises twice.