Next we have a statement by the Minister for Climate Change—an update on building safety. I call on the Minister, Julie James. 

Diolch, Dirprwy Lywydd. I am pleased to have this opportunity to share a progress update on the actions we are taking, together with Plaid Cymru, to address building safety in Wales. There are seven parts to the update today, including our orphan building scheme, the developer work plans in place with a timescale for remediation, access to mortgages, the social sector, as well as the leaseholder support schemes and our work to reform the building safety system in Wales.

The first of those, Dirprwy Lywydd, is orphan buildings. In my oral statement in March, I announced that I was taking forward 28 buildings as part of the orphan buildings pilot scheme. For all 28 buildings, the developer has either ceased trading, is unknown, or the building was developed over 30 years ago. Responsible owners of these buildings have been contacted, advising next steps, and our consultants are preparing work plans and works to be undertaken. Dirprwy Lywydd, as previously announced, the costs for these works in our orphan buildings scheme will be covered by the Welsh Government, with works scheduled to start shortly on the first of the buildings.

Here in Wales, I am determined to take every opportunity I can to protect leaseholders. I have been made aware of cases where leaseholders have paid upfront for fire safety works in orphan buildings. Dirprwy Lywydd, we do not want leaseholders to pay for something that is not their fault, and that is why I have agreed to fund eligible works already undertaken, in medium and high-rise buildings that fall into the orphan building category. Therefore, where fire safety works have been paid for by leaseholders in orphan buildings that relate to in-built construction faults, they will be paid back. The funding payments will be available to managing agents on behalf of leaseholders by application from today. I urge responsible persons that find themselves in this position to contact my officials. Where leaseholders have had to pay to rectify fire safety works in buildings developed by companies signed up to the Welsh Government’s contract, I strongly encourage these companies to reimburse leaseholders. I am pleased some companies have already started to reimburse leaseholders. I commend these companies; they have set an example that others should follow.

Dirprwy Lywydd, the third of the items I want to discuss today is the developer work plans. In March, I announced that six developers had signed our legally binding contract that underpins our developers' pact, and three developers had confirmed their intent to sign. Today, I am very pleased to confirm that all developers expected to sign our legally binding contract have now done so. This represents their commitment and intention to address fire safety issues in buildings they have developed over the last 30 years. Our contract sets out strict timelines, requesting work plans and an update on works under way. Today, I am pleased to announce that all developers are actively engaging with us, with all but one of the work plans, one that is not due until 7 July, now returned.

I am also happy to provide the following update on the works developers are already undertaking: Persimmon are now on site at Century Wharf and Aurora; Bellway are on site at Prospect Place and ACM cladding has been removed from Quayside apartments; McCarthy Stone have now remediated all fire safety works in buildings in Wales that they have developed; and Redrow have now provided funding for internal fire safety works. I am pleased that developers have stepped up to their responsibility. This shows their commitment to building safety in Wales. My officials will monitor works closely, and ensure timelines are progressing, to make certain this positive start continues. I am also pleased my officials have had positive discussions with the remaining developers, who are working on plans to start works as swiftly as possible.

Point 4 of my update today, Dirprwy Lywydd, is on lenders. I announced in March that the Royal Institution of Chartered Surveyors had agreed to extend their guidance to valuers to apply to both England and Wales. Today, I am pleased to confirm that the guidance, once published, will include a link to the Welsh Government webpage. This will include a list of properties that are included within our building safety programme scope, specifically those named within the developer's individual contracts and those buildings included within the first cohort of orphan buildings. It will also hold information such as building status and remediation plans. This will provide valuers an indication of building status and help support the removal of barriers, and enable mortgage valuations of flats in affected blocks. I continue to work closely with the Royal Institution of Chartered Surveyors and UK Finance to ensure leaseholders in buildings affected by fire safety issues are able to access mortgages.

The fifth update today is social housing. In March, I also provided an update on the support I have provided to medium and high-rise residential buildings in the social sector. The Welsh Government have provided funding through the social landlord grant to remediate medium and high-rise buildings in the social sector. The latest and last round of funding will close in July 2023. Following this final round of applications, I anticipate all social sector buildings where we have received an eligible application will either be complete or will have a work plan in place.

The sixth area is the leaseholder support scheme. Dirprwy Lywydd, I am aware of the significant impact building safety issues are having on affected residents, both financially and, indeed, on their health and well-being. In response to this, I launched the leaseholder support scheme. The scheme only exists in Wales, and is aimed at those facing financial hardship as a direct result of these building safety issues. In March, I provided an update following a review of the scheme. I am pleased to report that one property has now been purchased completely, and five properties are proceeding through the property purchase process. Where these properties are bought, this will provide leaseholders the option to move on or rent the property back. I am also pleased to see an increase in enquiries following the review, and I continue to urge any leaseholder in financial difficulty to complete our eligibility checker to see if they can access support through this scheme. For further information, please visit the Welsh Government website.

Dirprwy Lywydd, the last part of it is the reform, design and construction and occupation phase of the building programme. I remain committed to reforming the current system of building safety in Wales. Our proposals for reform at the design and construction phase of a building were set out in our white paper, 'Safer Buildings in Wales'. The first phase of reforms to the building control regime is being progressed. This will commence legislative changes to rectify problems identified within the current regime. The first phase will bring in more stringent regulation of the building control profession, which includes private building control approvers, building inspectors and local authorities exercising building control functions. The changes will improve competence levels, transparency and accountability in the building control professions. This is to make sure that only individuals who have the relevant skills and competence are advising decision makers before important building control measures are taken.

A number of related consultations have recently been concluded and responses will be published shortly. In the autumn, we will be in a position to make this first set of secondary legislation for the creation of registers for all building inspectors and building control approvers. The registration process is likely to be opened in October of this year, with a view of moving to the new regime from April 2024. More information on these arrangements will be published shortly.

My officials are also working at pace on a building safety Bill for Wales, which will be introduced later this Senedd term. These plans for reform will improve accountability for building safety at the occupation phase. The intention is for the new occupation phase regime to include all multi-occupied residential buildings, not just those of 18m and above, as is the case in England. Over the past 12 months, we have been working with stakeholders in industry and with residents to help us develop our thinking further. I feel that local authorities would be best placed to regulate a new occupation phase regime, working in close collaboration with our fire and rescue services. Last month, I, along with the Minister for Finance and Local Government and the Deputy Minister for Social Partnership, wrote a letter to the Welsh Local Government Association, fire and rescue services and local authorities to ask for their support in exploring this proposal. I'm pleased to report that those discussions are now under way, through a series of workshops in June and July, which officials are taking forward.

Dirprwy Lywydd, we are listening carefully to what stakeholders are telling us. It will take time to work through the detail. But what we need is a regime that works effectively to meet the needs of Wales, one that helps to minimise risks to residents so that they can feel safe and secure in their homes. I continue to take forward our building safety programme and look forward to updating members as we develop our ambitious plans for delivery. Diolch. 

Thank you, Minister, for your comprehensive statement. As I am sure you will agree, it is enormously frustrating for leaseholders who have found themselves in this position, and it is without doubt that many of them have suffered from severe mental health problems as a result. I think many of the problems have arisen because people are left in a state of unknowing, and when they start looking for answers they meet a wall of silence and, sadly, much of the information that is released, including statements such as yours today, are not necessarily understood or even picked up by those affected.

It is my understanding, Minister, that, whilst developers have signed a contract to carry out the remedial works to make good dangerous and unsafe cladding, and some have now started work, as you have mentioned, some owners of properties are still in limbo and they have not received communication as to when work will start. Some management agents have even been told not to expect work to begin until at least 2024. This does, unfortunately, mean, Minister, that there are people still living in properties that have been identified as having unsafe cladding and can, unfortunately, expect to remain so for some time, and, so, still may face the worry, anxiety and mental health issues that come about because of the cladding issues. With this in mind, and with the intention of reassuring leaseholders for the purposes of helping with their concerns, would you consider writing to affected leaseholders explaining the actions that you are taking and what they can expect going forward?

I would also like to take this opportunity to highlight that some management agents who have seen costs of buildings insurance rise due to the uncertainty over cladding have passed this on to tenants and have considerably charged more in their fees, with some leaseholders now incurring price rises in their management fees by as much as 831 per cent. With this in mind, Minister, will you set up an inquiry to establish exactly how each management agent responsible for properties in Wales has responded to the cladding crisis and disclose if some are exploiting this tragic situation? 

The cross-party legislative proposal on high-rise building safety in Wales, led by my colleague Janet Finch-Saunders, received a Majority of support in this Chamber. In particular, it called for this Government to create a duty on developers to refund leaseholders for reasonable costs incurred during the building safety issues. But, unfortunately, the First Minister's legislative programme made no mention of this whatsoever, and it did not make a Bill on building safety a priority over the next 12 months. Given the number of people affected by this, your statement today and the cross-party support in this Chamber for such a Bill, can you give an exact date of when you will be bringing in such legislation before this Welsh Parliament?

Finally, Minister, whilst many builders have signed the pact and contract committing to remediation work, it is still possible for many of those to take a considerable amount of time before they start and complete the works. I'm interested to know what mechanisms you have available to ensure that they carry out the work in a timely manner and in good faith. Thank you.

Well, thank you, Joel. I did, actually, I think, answer quite a few of those questions in my statement, but just to reiterate: the Bill timing is before the end of this Senedd term—I've always been very clear about that. It isn't in the next year for the reasons I've set out in my statement.

The managing agent point is a good one. We meet very regularly with a group of managing agents, however, unfortunately, I do not have the power to regulate managing agents. I am in constant contact with the UK Government about their leasehold reform programme, and I hope that that will include a reform of the managing agent process, which is much needed, and I really very much hope is part of the leaseholder reform.

I've also asked the UK Government if they'd like to consider the role of estate agents in that as well, since we have a large number of people in this Chamber who are affected not just by high-rise buildings, but by estate management practices, who are often the same group of people. But, unfortunately, I don't have the power to regulate them, Joel. But we do meet with them very regularly and we do take up various issues, including costs and administrative costs with them, in order to make our views known.

In terms of the information getting out to people, it is perfectly possible to sign up to our information news sheet. I've encouraged, many times, all Members of this Chamber to sign up to that; you can then pass it on to your constituents and anyone getting in contact with you. So, if you haven't done so already, I urge you to do so. It's easily accessible from the Welsh Government website. Once you're signed up to it, you can pass on its details to any constituent who's interested in being kept in touch. That newsletter goes out very regularly and has all of the update information. It's also possible to access older newsletters, if you're not up to date at the moment, and that's the most efficient way of making sure that you're in touch with the process as it goes forward.

If you want to write to me with any specific building, because you're concerned about the timing, obviously I don't have the information for all 193 buildings about my person, so if you want to write to me about a specific building, please do so.

Thank you to the Minister for today's statement. I am grateful for the update, and once again, I welcome the steps that the Welsh Government is taking to tackle this serious and complex issue. Again, it is good to see the agreement between Plaid Cymru and the Government bearing fruit, making a positive difference to people's lives every day.

We must not forget the devastating tragedy that befell Grenfell Tower in 2017. The fire that destroyed Grenfell Tower led to the deaths of 72 people, and it reminds us of the urgent need to ensure the safety of our buildings and safeguard the lives of our citizens here. Following the events at Grenfell, residents across the United Kingdom, including here in Wales, have been living in constant fear and anxiety. They are burdened by the knowledge that their own homes may not be safe, and that that very place that should provide sanctuary and safety could put their lives at risk.

For far too long, we've seen a culture of cutting corners by major developers at the expense of public safety, and it's good to see steps being taken to tackle that. We know that there are 171 buildings with safety issues, including the 28 orphan buildings that the Minister has already announced that she will seek to have remediated. But I would like to raise the situation at Victoria Dock in Caernarfon. As far as I understand it, this development is an example of a development that falls between two stools, as it were: it isn't an orphan building, nor is it covered by the developers' pact. So, what is the way forward for the residents of Victoria Dock, and how many other developments, of the approximately 171 buildings with safety issues that we know of, also fall between two stools in this way? Can the Minister confirm what work is being done and the next steps for residents of these buildings, please?

The Government's plans are to be welcomed, but until the remediation work is complete to make these buildings safe, residents will continue to live in fear. A number of residents will continue to worry about the timescales for work to be done to make their homes safe. When therefore can we expect to reach a point when every building will be safe for residents without them, or the owners, having to pay for the work? What is the timetable for that work to be done? When can we expect the work to be completed?

Once again, I would like to note that I support the Minister when she says that she will consider every option, including adapting legislation and blocking developments, and it's good to see that we may not need to do that as she has succeeded in getting all of the major developers to sign up, so I congratulate her on that point. In the statement, the Minister said that she will encourage leaseholders to apply for financial support, so what steps is the Minister offering to ensure that these people know about the options available to them, and understand how to apply for that support? The Minister also talked about lenders and said that there is guidance that will be published. She said that this will happen in due course. Can we have an assurance in terms of when that will happen? How much longer will people have to wait until these loans are available? 

Finally, I want to welcome very much that greater control will be introduced on managing construction, but there is ambiguity about the registration process for building managers. Why that ambiguity, and can the Minister provide greater assurance in terms of that timetable too? Thank you very much, Dirprwy Lywydd. 

Diolch, Mabon. Just on Doc Fictoria and the smaller—. So, Doc Fictoria specifically was developed by Watkin Jones, which I'm sure you know. I've written to Watkin Jones, and they've confirmed that they are working with responsible owners in respect of the remediation works. So, I'm very pleased about that, obviously. Officials have a meeting with Watkin Jones coming up shortly to discuss the plans that are outlined there, so that's a very specific building that's in train. More specifically about buildings with smaller developers who aren't in the pact or contract—. There are three categories of buildings, so, there are the buildings covered by the big developers, there are the orphan buildings, and then there are the buildings covered by the smaller developers, some of whom have only ever done one building. And some of the smaller developers aren't small companies, but they have small residential footprints. There are a number of those, so they might be recognisable companies, but they might only have one or two buildings in Wales.

So, we're in the process of contacting all of the developers and the managing agents, and we're exploring what can be done for the smaller developers. So, this is a bit more complicated, I'm afraid. Where a smaller developer is a small developer for the purposes of residential, but actually is a household name, we expect them to make the remediation works happen. Where the developer is a small developer in every—whatever—we don't want to push people into bankruptcy. So, we will explore with them how we can get them to do the remediation in a way that does not push their company into bankruptcy, for obvious reasons. So, we will work with them to make sure that a funding mechanism is found that makes them remain as a viable company. We need developer companies in Wales; many of them are important local employers, but that they stump up for the remediation as appropriate. So, that's a more complicated category of people, for obvious reasons, but we are absolutely in the process of working with them.

As I said in response to Joel, we work with all the managing agents as well. So, we are fairly comfortable that we've got all of the buildings, but as I always urge all Members, if you come across one that you think isn't in the loop, then do say. It's possible to sign up to the newsletter at any point, and all of you, I hope, are signed up to it and should be getting that, and it's possible for you to send it out to constituents and anyone else who's interested. We are very keen to get it out as far as possible. And then, I also work with a stakeholder group that has a number of tenant organisations, the National Residential Landlords Association, the Welsh Cladiators, TPAS Cymru—every representative organisation we've been able to get to meet with us to make sure that we're getting it out as soon as possible. I met with them only last week, I think it was—sorry, my diary's a bit—. I never quite remember when I did what, but I think it was last week in Cathays Park 2 in person, which was very nice. 

Just in terms of the building managers, I outlined the system that we're going to put in place to do some regulatory work right now, and then we will have a Bill that will reform the entire system by the end of the Senedd term. We haven't been able to put a time on that Bill because a little bit of it is tied up with how the regulations work, and how the various reforms that are going through in England that pertain to it work, because this is a very difficult area for devolution. It’s not straightforward at all which bits are devolved and which aren’t. So, for example, property law is not devolved, but leasehold law is. Well—those are two bits of the same coin, right? So we’re having to work with the UK Government lawyers very carefully to make sure we have the right powers to do the various bits of it that we’re able to do. And I have very recently exchanged correspondence and spoken with the relevant UK Minister, who tells me that their leasehold reform Bill is still on track for later this year, so I hope that’s true. 

Thank you so much, Minister, for your statement. It’s good to see that it’s getting the time on the Senedd floor. Thank you for your expertise and responses as well to this very complex area. I just wanted to, in the time I have available, concentrate on one area, which is the leaseholder support scheme; the ‘buy backs’ is another description. So, just to query support around this and the progress, I heard from someone taking part in the scheme that they’re now a year on from their initial application. They sent it in immediately after the window opened, but they haven’t had an outcome yet. So I’m kind of keen to understand the timescales there, and if this is an exception maybe I could write to you with the details around that. So just a little bit more about the timescales of that.

And secondly and finally, could you also please clarify that, when the properties are bought, what the process then is in relation to leaseholders having the option to move back or to rent the property back? Thank you very much, Diolch yn fawr iawn.

Diolch, Jane. So, the scheme to date has had 17 applications. One has been completed, five are still going through the process, one is currently going through an evaluation process, and 10 were ineligible. I will say, though, that if you know somebody who’s been judged ineligible, we are actually reviewing it every three months, so it is worth reapplying because it’s very difficult to understand how much it’s going to cost, so as we understand how many people are coming through, we are loosening the strings, if you like. So it may well be that you become eligible if you weren’t before.

I absolutely do urge everyone in financial difficulty to do the eligibility checker. We give people the option, so once it’s been through, you can rent it back if you want to, and if you want to move on then, you want to move on. Some people have moved on already. We’ve already extended the scheme, for example, to people who are landlords, who bought it for pension support and have only one property, so there are other—. You don’t have to be resident to do it. I’ve had a lot of letters off people who have been stuck because they can’t sell and have got more children than the flat can now accommodate, for example. So I’m very keen that we help people out of that circumstance.

Sometimes, when people apply, we’re able to help them just sell it on the open market, because we’re able to explain the process for the EWS1, and so on. And financial advice is available to everyone who applies because sometimes that’s actually all they need. So, it is worth doing. If you’ve got a specific issue, then you’ll have to write into me, Jane, if that’s okay. I don’t have the detail of every single one of them about my person, but I can easily find out for you.

I very much welcome this statement. Firstly, can the Minister confirm that, despite statements being spread on social media, there is no simple quick fix of just passing a law and it will all be done? Because I am—and I'm sure that the Minister is—fed up of people telling us that you only have to one thing and everything will fall into place. Well, both of us know that that is untrue.

I welcome the statement that you do not want leaseholders to pay for something that is not their fault. That is why they have agreed to fund eligible works already undertaken in medium- and high-rise buildings that fall in the orphan building category. Will South Quay, built by now-defunct Carillion, be covered?

I welcome that all developers that were expected to sign legally binding contracts have now done so. This represents their commitment and their intention to address fire safety issues in buildings they have developed over the last 30 years. I’m very pleased with that, and what I’m asking is now that they’ve signed it and we know their commitment, and we know that they've set stricter timelines for requesting work plans, and an update on works under way, will the Minister or the developer share that information with people living in developments like Altamar? Because I think it’s been very much a lack of information from these people that has left a hole in the system that has been filled by those trying to make trouble.

Yes, thank you, Mike. There absolutely is no single fix for this. If there were, we would have taken that route, of course. There is no simple, straightforward fix. The route that England has taken allows people to sue themselves the developer. We've always taken the view that that's actually even more complicated than what we're doing. I much prefer a situation where it's the Welsh Government that takes the legal responsibility for ensuring that a contract delivers. So, we're very clear about that. There certainly is no single fix.

South Quay, I believe, falls into the orphan building category, but, if you want to write in to me, Mike, I can confirm that in a more straightforward way, because I'm doing that from memory, but I believe it does. I've recently written to Altamar, and I'm quite happy to discuss that with you separately. We know where we are with Altamar; I've just written to them.

And finally, Rhys ab Owen.

Gweinidog, I'm pleased that Mabon ap Gwynfor asked for clarification on what was meant by 'due course'. I don't think I heard an answer to that, so, when will the guidance to valuers be published? It's so important that leaseholders are able to access mortgages. But does the Gweinidog know at what percentage against valuation that will be, and what would be the interest rate? I welcome your statement that, where leaseholders have already paid to rectify fire safety works, you will strongly encourage developers to reimburse them. But are there any powers of enforceability with regard to that?

I'm told that residents from Celestia have written to Welsh Government officials, highlighting failures of developers in complying with the contract. They believe developers are dragging their feet and rejecting surveys and are in breach of the Welsh Government contract in Cardiff and in Swansea, and they haven't received a remediation plan or a timeline. Could you indicate when the Celestia residents will receive a reply, and how will you ensure compliance with the contract?

Jane Dodds highlighted the leaseholder support scheme. Despite it being announced over 18 months ago, there has only been one purchase, with only five in the pipeline. Contrary to the statement, Gweinidog, residents believe that they will not be allowed to rent back their property, due to legal reasons. Could you clarify that? And in any event, should we be renting properties that are deemed to be unsafe? Diolch yn fawr. 

Thank you, Rhys ab Owen. So, the Welsh Cladiators are part of the stakeholder group that I met with last week. The issue with Celestia is very complicated and subject to litigation, so it's not something I can easily discuss on the floor of the Senedd. I've offered to meet with them to discuss their particular concerns, but I think that their particular concerns are linked to the fact that they're in complicated litigation and not the wider scheme, a point that was made at the stakeholder group in question, and which I'm obviously repeating here for your information.

In terms of reimbursement, we are expecting the developers to reimburse. If they don't, then I'll have to see what can be done. I've got no reason to think that they won't do that. We've asked them to, and none of them have pushed back on that. I'm not going to take expensive legal advice until I need to, so I'm going to take the view that they're going to do what they said they'd do until it's obvious that they aren't. So, that's where we are with that.

I've categorically stated a number of times on the floor of the Senedd now that, if somebody goes through the leaseholder support scheme and we buy the property, they can rent it back from us. I don't know how to clarify it any more than that. Obviously, the buildings are unsafe in the sense that they need remediation works, not unsafe to live in. If they were unsafe to live in, then the fire service would have evacuated them and shut them down. A number of them have a number of things to make them safe to live in—so, they have fire safety issues that the fire authority has deemed necessary. But that means that they are safe to live in. Otherwise, as I say, the fire authority would have shut them down, and my colleague Hannah Blythyn and I have had a number of conversations with the fire authority about the inspections that they undertake. So, just to be really clear. That's not to say that the buildings shouldn't be remediated as quickly as possible—of course they should.

If a leaseholder goes through the support scheme and doesn't want to lease it back, that's also completely fine with us. It takes a long time to do it. It's a complicated process. It has to go through a valuation process. It has to go through a number of stages. I'm not terribly surprised that it takes 18 months from start to finish, to be honest. As I say, we review the criteria very regularly—every three to six months—because not as many people as we thought have applied to go through it., and therefore I'm looking to see if I can loosen the strings a little to make sure that other people who might not have been eligible would be eligible. We know that 10 people were deemed ineligible when they applied for the scheme, and I've been encouraging them to come forward again, if they want to, because we have loosened the strings a little on the scheme, so it's possible that they would be. I'm written to personally myself by people who are in this situation, and I always refer them to the scheme, and I also refer them to the update, the regular update that we have. Again, if you haven't signed up, please do, it's really obvious on the Welsh Government's website, and then you can pass it on to your constituents, who are all entitled to receive it. It comes out electronically very regularly with all the updates.

Oh, I'm sorry, on the chartered institute, I didn't answer that with you either, Mabon, apologies. So, I'm not in control of the timescale for that; it's their guidance and not ours. We've been working with them. I'm delighted that they've agreed to include Wales and that they include the Welsh links, but I'm afraid I have absolutely no way of making that guidance happen in any time other than the time that the institute itself sees fit. But I know that they're working on it and are looking to get it out as soon as is reasonably practicable.

I thank the Minister.