Clause 66

Housing and Regeneration Bill – in a Public Bill Committee at 2:00 pm on 24 January 2008.

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Dissolution of Housing Corporation

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

I beg to move amendment No. 165, in clause 66, page 31, leave out lines 14 to 18 and insert—

‘(2) The Secretary of State may by order’.

Photo of Roger Gale Roger Gale Conservative, North Thanet

With this it will be convenient to discuss the following: Government amendments Nos. 166 and 167.

Government new clause 34—Transfer schemes.

Government new clause 35—Interim arrangements.

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

These amendments and new clauses provide for the effective and smooth transition from the Housing Corporation to the new regulator, Oftenant, and the Homes and Communities Agency. Amendment No. 165 will amend subsection (2) to allow the Secretary of State to make orders either before or after the dissolution of the Housing Corporation. The existing subsection as currently drafted may only have allowed for a single order.

Government new clause 34 will replace subsection (4) and make provision that the Secretary of State may make one or more schemes for the transfer of the Housing Corporation’s properties, rights or liabilities to the regulator, the HCA or the Secretary of State.

Government new clause 35 will replace subsection (3) and enable the Secretary of State to require the Housing Corporation to provide staff, premises, facilities or other assistance—for example, by providing information to the HCA or the regulator. I suggest that that would ease the transition to the new regulator, which, depending on the passage of the Bill, we aim to have operational from April 2009. It is important that both the regulator and the HCA can pick up where the Housing Corporation leaves off in terms of regulatory interventions and grant payments. The amendments and new clauses will assist in that process, so I hope that the Committee will accept them.

Photo of George Young George Young Chair, Standards and Privileges Committee, Chair, Standards and Privileges Committee

I wonder whether I might press the Minister a little on what he said. As I understand it, he will be able to wind  up the two components of the Housing Corporation on different dates. Is it possible to wind up the bit that deals with the regulator on one date and the bit that will hand over to the HCA on another date? If so, can he say that the date on which the relevant part of the Housing Corporation is wound up will be the same as the date on which the successor bodies take over, or does he envisage establishing the two bodies and then, at a later date, winding up and dissolving the relevant part of the Housing Corporation? In other words, is there a big bang? Is there one day when the Housing Corporation is dissolved and the HCA takes over and another day on which the regulator takes over? Or will the order in clause 66 enable the Secretary of State to dissolve the Housing Corporation after the two other bodies have been established?

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

No, there is no intention to have a big bang. We want to make sure that we have a seamless transition. As the right hon. Gentleman rightly suggests, the regulatory part of the Housing Corporation could move at a slightly different pace to that of the investment function. The clause will provide the flexibility to do that.

I anticipate, although I do not want to box anyone in, that all that will be done on the same day, but that might not be the case. I also want to point out to the Committee that we have recently appointed Kate Barker—a Housing Corporation board member and a member of the Monetary Policy Committee—to chair the Oftenant transition programme board. That group comprises staff from my Department, the corporation, the Audit Commission and elsewhere. It is working to ensure operational readiness for regulatory system, staff, accommodation and that sort of thing. As I said, I imagine that the two bodies will come into play at the same time, but the clause will provide flexibility in circumstances that might not happen.

Photo of George Young George Young Chair, Standards and Privileges Committee, Chair, Standards and Privileges Committee

Can the Minister assure me that two regulators will not be in existence on the same day?

Amendment agreed to.

Amendments made: No. 166, in clause 66, page 31, line 21, leave out subsection (3).

No. 167, in clause 66, page 31, line 23, leave out subsection (4).—[Mr. Wright.]

Question proposed, That the clause, as amended, stand part of the Bill.

Photo of Nick Raynsford Nick Raynsford Labour, Greenwich and Woolwich

I rise only to ask a question that has puzzled me for some time. Why is the title of clause 66 “Dissolution of Housing Corporation”, as against “abolition”, which was used in titles relating to the Urban Regeneration Agency and the Commission for the New Towns in clauses 51 and 52? What is the significance of the different terminology?

Photo of Iain Wright Iain Wright Parliamentary Under-Secretary (Department for Communities and Local Government)

As my right hon. Friend will know, I have not got a clue. I will endeavour to find out and to provide the information to him and the Committee.

Question put and agreed to.

Clause 66, as amended, ordered to stand part of the Bill.