Transport: London Bridge Station

Lord Kennedy of Southwark Excerpts

Tuesday 13th January 2015 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what action they are taking to address the problems suffered by passengers at London Bridge station.

[The Minister of State, Department for Transport (Baroness Kramer) (LD)]

My Lords, this will be a difficult period as we spend over £1 billion improving London Bridge station. Steps have already been taken to address problems at London Bridge by increasing the number of staff, adding further passenger information displays and temporarily adjusting the timetable to improve reliability. The Secretary of State met senior Network Rail and train operator executives on 9 January to understand the problems and discuss preparations for the Southeastern service changes from 12 January. We thank passengers for their patience.

[Lord Kennedy of Southwark (Lab)]

First, I declare an interest as an elected member of Lewisham Council. The chaos and failure to manage the situation at London Bridge has just highlighted to a wider audience what we have been experiencing in south London for many years. At Brockley, Crofton Park, Honor Oak Park and other stations, trains are cancelled or, when they arrive, are already full up. Either the trains do not turn up or, if they do, there are not enough carriages and people cannot get on them to get to work. As a result, the platforms become overcrowded and dangerous. Will the noble Baroness agree to arrange and host a meeting between me, local campaigners, Network Rail and the train operators Southern, Southeastern and TfL rail to deal with this problem?

[Baroness Kramer]

As your Lordships know, I am always happy to meet on these issues, so that is something that I shall be glad to try to accommodate. Whether we need to do so in two phases or one is not entirely clear but I hope that we can discuss this matter. The underlying issue of congestion on the railways is obviously behind many of the problems that we face. This massive set of improvements around the London Bridge area, costing about £1.5 billion, will play an absolutely key role in removing one of the major bottlenecks in the system, even though it will take several years to achieve that.

Energy: Biofuels

Lord Kennedy of Southwark Excerpts

Wednesday 27th March 2013 Lords Chamber

[Earl Attlee]

My Lords, we take the biofuels industry seriously; it is an important industry. However, we must have regard to the fact that we are regulated by EU and World Trade Organisation free-trade rules, and we therefore cannot put in measures specifically designed to protect the UK biofuels industry.

[Lord Kennedy of Southwark]

My Lords, what does the noble Earl’s department intend to do to support small companies that make biofuels from locally sourced used cooking oil?

[Earl Attlee]

My Lords, I know that the noble Lord is a great supporter of the used cooking oil biofuel industry, and it is important. In a previous exchange, he raised the dual obligation to avoid the problem of large-scale ethanol imports disrupting the market for used cooking oil for the biodiesel market. I have raised this matter with my right honourable friend the Secretary of State but I go back to the point that I made to the noble Lord, Lord Bradshaw: we have to be careful to avoid setting regulations that favour UK industry, because we will rapidly come unstuck if we do so.

Enterprise Act 2002 (Part 8 Domestic Infringements) Order 2013

Lord Kennedy of Southwark Excerpts

Wednesday 6th February 2013 Grand Committee

[Lord Stevenson of Balmacara]

The noble Lord’s fluency in so many matters suggested that he wanted to make a contribution. I am sad that he will not do so.

We on this side welcome the regulations. They are a good step in a direction that many noble Lords will recognise has been a source of considerable annoyance and concern to consumers over many years. In that sense, I want to understand better the approach that the Minister is taking here. He quite rightly explained that there are requirements because of the European Union directive to move in this direction. In many senses today is interesting because the earlier order that we considered also relates to a European Union directive. The choice there was to do something at the latest possible moment whereas the choice here is to take forward the timing of the European Union directive and use it to solve a problem that is, as he said, a domestic rather than a European one. That aside, it is still a good decision.

Underneath this is a history that the Minister touched on but is worth recording. This comes from a civil complaint from Which? that was referred to the OFT, and the OFT generated the momentum behind this. Yes, it could have happened because of the European Union directive but there is sufficient pressure internally. That also shows that the measures brought forward under the previous Government to try to provide for more active consumer protection in this area have been successful. As a result of that, we are seeing these changes today.

In the impact statement, to which the Minister referred, the assertion is made that these drip-pricing approaches—you do not know the full cost of what you are buying online until you get to the final screen and suddenly some additional charges are put in—are, of course, a frustration and an annoyance. It is interesting, however, that the impact assessment is quite coy about whether it will be to the long-term benefit of consumers. It is effectively saying, if you read between the lines, that while the changes in the regulations and the consequences of what is being proposed mean that companies will not be allowed to add these additional charges, or drip charges, to the price that they are quoting and we will therefore be able to compare prices better and get more for our money, in fact, the money that is being taken out of the system through drip pricing will probably re-emerge as additional charges within the main cost. The impact assessment says that,

“the overall price level may fall; however this is considered unlikely”.

I wonder whether the Minister has any more information on that. I looked carefully through the impact assessment and I could not see much documentation about what will happen to prices. Does he think that my assertion is overstated or about right?

My final point is that the CRD—and the regulations implementing it—covers most retail sectors, but does not include some. Will the Minister please explain what is going to happen in areas which are not covered by the CRD or by these regulations? What measures are the Government considering to bring forward in future years to deal with those?

[Lord Kennedy of Southwark]

My Lords, I thank my noble friend for that. I should have jumped in before him, so I apologise for not getting this right. I wanted to ask one question about the impact assessment and the opt-out for small businesses. I do not believe in extra burdens and regulation for businesses, but it seems odd to me that we seem to be saying that, by allowing business with fewer than 20 people to opt out, they can carry on overcharging customers. It seems odd and unfair that they will still be able to make these charges, but generally I think that this is a great order and I am delighted that it is being brought in.

[Lord Popat]

I thank the noble Lord. He is quite correct that this order will prohibit traders from charging consumers above-cost payments; in other words, the charges will not exceed the real cost of the goods or services bought from the trader. We are implementing this in December 2013, largely due to our own research and that of Which? magazine, which brought this to our attention. The European directive will be enforced in 2014, so it will be good for consumers. The European Commission is looking at the payment separately under the financial services regulations. We will obviously get this information in due course. It is our policy to exempt microbusinesses from the new regulations until 2014. They are small businesses that employ probably fewer than 10 people, but they are crucial for growth and we have to support and encourage them. That is my response to the questions about small businesses.

[Lord Kennedy of Southwark]

May I push the Minister a little further on that? It just seems very odd to me; I want to see small businesses and the economy grow, but if I am running a small business, I do not see why I should overcharge my customers. That does not seem like good practice and we should not allow it because it is not fair. I hope he will explain the point he is making. Why should small businesses be able to overcharge when big businesses cannot?

[Lord Popat]

As I said earlier, microbusinesses are crucial to growth. As a small businessman myself, I want to give value for money to my customers and do not want to make them pay any unnecessary charges, because I want to make sure that I get my repeat business. It is our policy is to exclude microbusinesses. The regulations will apply from June 2014 and not from December 2013.

Renewable Transport Fuel Obligation

Lord Kennedy of Southwark Excerpts

Thursday 13th December 2012 Lords Chamber

Asked By

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what plans they have to review the Renewable Transport Fuel Obligation in order to support businesses that make biofuels from locally sourced waste and sell it close to where it is produced.

[Earl Attlee]

My Lords, the Government strongly believe that the renewable transport fuel obligation delivers effective and sustainable market-based support to the biofuels industry. The RTFO provides additional support for biofuels made from waste by awarding two renewable transport fuel certificates for each litre supplied. The Department for Transport has committed to a review of the double certificate scheme and the support provided by the RTFO in 2013.

[Lord Kennedy of Southwark]

I thank the noble Earl for his response. There is a real problem here in that small, green businesses making biodiesel from waste products collected locally and sold from their premises are just not getting a fair deal. Will he agree to raise the matter with the Secretary of State for Transport, and will he facilitate a meeting for me with the Secretary of State and relevant officials on this matter?

[Earl Attlee]

My Lords, one of the concerns I have identified in private conversations with the noble Lord is the possibility of distorting the market in UCO and biodiesel by importations of ethanol. I will happily raise that with my right honourable friend the Secretary of State.

Railways: Franchises

Lord Kennedy of Southwark Excerpts

Tuesday 9th October 2012 Lords Chamber

Asked by

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what is their estimate of the cost to the public purse of cancelling the contract award for the West Coast Main Line railway franchise.

[Earl Attlee]

My Lords, my right honourable friend the Secretary of State for Transport will make a full Statement in the other place at the earliest opportunity. The department will remunerate fully bidders for the direct and reasonable costs of putting together their bids and expects this cost to be approximately £40 million. The department expects additional costs from mobilising Directly Operated Railways, reissuing the tender and carrying out two independent reviews. The department will monitor these costs closely and be fully transparent in keeping the House informed.

[Lord Kennedy of Southwark]

My Lords, it is very regrettable that the noble Earl has not taken the first opportunity in Parliament to say sorry for this fiasco. He should be truly ashamed of what has gone on so I invite him to take the opportunity to apologise. Why are the Government saying there have been regrettable and unacceptable mistakes and yet no Minister is accepting responsibility?

[Earl Attlee]

My Lords, some noble Lords express disappointment that a full Statement has not been made. Nobody asked for a full Statement. I was very willing to answer a PNQ yesterday afternoon but there was not one because we have the topical question today. As for ministerial responsibility, noble Lords know perfectly well that this was a highly regrettable mistake by officials, not by Ministers.

Energy: Biofuels

Lord Kennedy of Southwark Excerpts

Monday 8th October 2012 Lords Chamber

Asked By

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what assessment they have made of the impact of the ending of the duty exemption for biofuels and the implementation of the renewable transport fuel obligation on companies in the United Kingdom that manufacture biofuels from recycled food waste.

[Earl Attlee]

My Lords, the Government strongly believe that the renewable transport fuel obligation—the RTFO—delivers effective and sustainable market-based support to the biofuels industry. The RTFO provides additional support to biofuels made from waste by awarding two renewable transport fuel certificates—RTFCs—for each litre of fuel supplied. The Department for Transport has committed to a review of the double-certificate scheme and support provided under the RTFO in 2013.

[Lord Kennedy of Southwark]

I would like to draw the noble Earl’s attention to the SME producers who recycle local food waste into biodiesel which has a remarkably low-carbon footprint. These companies have had to cope, in effect, with a 20p per litre reduction in their income because of the current value of certificates. It is clearly a difficult issue for these smaller companies, some of which have actually gone out of business. Will the noble Earl agree to facilitate a meeting between me, representatives of SME producers and the relevant Minister?

[Earl Attlee]

My Lords, I am well aware of the difficulties being experienced by these SMEs with their commendable work in producing biofuels. I would of course be delighted to invite the noble Lord, and any other noble Lord who would like to come along, to a meeting with the Minister and officials—the experts who understand these quite complex issues.

Roads: Private Investment

Lord Kennedy of Southwark Excerpts

Wednesday 25th April 2012 Lords Chamber

Asked By

[Lord Kennedy of Southwark]

To ask Her Majesty’s Government what lessons learned from the privatisation of British Rail they will apply to any plans for increased private investment in the United Kingdom’s motorway and trunk road network.

[Earl Attlee]

My Lords, we are considering a number of options for the future ownership and financing of the strategic road network, looking at a greater role for private funding to provide more investment. This feasibility study is considering a wide range of possibilities, and it will be taking account of the experiences of water, electricity, telecoms and gas as well as rail and other transport sectors.

[Lord Kennedy of Southwark]

That is a rather disappointing response from the noble Earl. I was hoping for “We’ve looked at it, it’s a stupid idea, and we’re not going to do it”. What words of comfort does the noble Earl have for the motorist, the small business and the taxpayer that they are not going to have additional costs to bear if proposals to introduce further private capital to our road system come to fruition?

[Earl Attlee]

My Lords, the first comfort that I will give is that the feasibility study will consider the role that tolling can play, but it will not consider tolling existing capacity or road pricing. The purpose of the feasibility study is to look at how we can better run the strategic road network into the future so that investors can make long-term decisions rather than the short cycles that we are experiencing at the moment.

Localism Bill

Lord Kennedy of Southwark Excerpts

Monday 10th October 2011 Lords Chamber

[Lord Berkeley]

My Lords, as a cyclist in London, I have come to know the London Pedicabs Operators Association quite well. Yes, pedicabs irritate taxi drivers—and they irritate me because they are wider than my bicycle and I cannot always get past them. However, taxis, cars and white vans irritate people. At some stage, we all have to live together and hope that it all works well for the benefit of the community and for people who want to go somewhere late at night. Of course, tourists love pedicabs.

However, I agree with the noble Baroness that there is something wrong with the current situation. The noble Lord, Lord Jenkin, mentioned the private Bill debated here in, I think, 2009. My understanding is that there was a voluntary registration scheme that the pedicab association was prepared to sign, given that Westminster City Council apparently made specific undertakings in Committee to provide pedicab ranks around Westminster. That has not happened and the whole idea seems to have evaporated.

Perhaps I may move on to early this year, when a new plan came from the mayor’s office, Transport for London, the Metropolitan Police, Westminster City Council and the London Pedicabs Operators Association. They were asked to draw up a framework mechanism, documentation and software to satisfy the requirements of a formal licensing scheme that would include a partnership agreement, and to write a code of conduct—which is important—and a memorandum of understanding between those parties. However, again, nothing seems to have happened on this.

The pedicab association says that many of the issues listed in the noble Baroness’s amendment would in fact be in some of the agreements that it was setting out to achieve. The one thing that it says would be very difficult—and I agree—is to have, as suggested in the amendment, a separate agreement for each borough in and outside London. Most pedicabs operate in Westminster but I live in Camden during the week and they certainly move into Camden. Therefore, I believe that any such registration has to be London-wide and I am not sure why Transport for London is not picking this up and running with it, so to speak.

There is an issue here but I believe that licensing by TfL on a reasonable basis would work well. I know that taxi drivers do not like pedicabs because they see them taking away business, but we are not really here to preserve the monopoly of taxis in taking people around London. There is also the TfL cycle hire scheme, which seems to be doing quite well.

I believe that some of the issues that the noble Baroness lists in her amendment should be in some kind of agreement, but someone has to take that forward and I think that it should be TfL with everyone else’s agreement. However, every time there seems to be a step forward, something stops it. Perhaps, as the noble Baroness has suggested, people do not want a registration system because that would legalise pedicabs.

I think that pedicabs are here to stay. They are good fun. If they are registered, there will be some control over them, and I hope that that will get rid of those who do not comply with the regulations and that it will allow a good service to be properly enforced, with vehicles that have back red lights and front white lights, which are important. The noble Baroness makes a very good point with this amendment but it is probably not the right way to go forward at this stage.

[Lord Kennedy of Southwark]

My Lords, first, I think I should make it clear to the House that my father was a licensed London taxi driver and that both my brothers are licensed London taxi drivers. In fact, one or two noble Lords have mentioned to me that they have been picked up by them and taken home after a busy day in your Lordships’ House.

[Lord Jenkin of Roding]

If the noble Lord would give way, I have suddenly realised that my eldest grandson was for a time a pedicab driver and I should have declared that.

[Lord Kennedy of Southwark]

As far as it goes, I support the amendment moved by the noble Baroness, Lady Gardner of Parkes. Pedicabs, and the way in which they operate, can be a nuisance, and it is only by licensing them that we can get some control over them. It would therefore be good if local authorities could establish local by-laws for the licensing of pedicabs in their area. If people are going to travel in them, we should make sure that they are roadworthy, that there is proper insurance cover for passengers, that there are rules about where they can stand when waiting for business, that the people peddling them comply with traffic legislation and that, where breaches occur, there is provision to get them off the road.

I accept that at present they seem to operate only in central London, so Westminster council faces the biggest problem. However, like my noble friend Lord Berkeley, I would have preferred to see London-wide licensing of pedicabs. They will no doubt move elsewhere, with Camden, Islington, Kensington and Chelsea, Southwark and Lambeth all likely to have them in parts of their boroughs. By-laws that differ from borough to borough just risk confusion and it would be better to have a London-wide option. However, as I said, the Opposition support the thrust of the amendment and I hope that the Government can indicate what they will do to deal with this problem.

[Earl Attlee]

My Lords, I can understand why my noble friend Lady Gardner of Parkes has moved this amendment. She has explained the problem and other noble Lords have made sensible and balanced contributions. However, Transport for London and ultimately the mayor are responsible for pedicabs in London. The Government take the view that issues surrounding pedicabs in London should be dealt with at a local level, which this amendment would provide for. After all, this issue only really affects London. However, the mayor, Transport for London and the London local authorities are already taking the initiative to address the matter with straightforward measures that avoid the trap of overregulation. Noble Lords will be aware that Westminster City Council is currently working up a voluntary—

--- Later in debate ---

[Baroness Gardner of Parkes]

My Lords, I am slightly concerned by this amendment as I think there is an international problem occurring of people buying things online to such an extent—I heard this in Australia while I was there and I believe it is the same everywhere—that people are closing up small shops because there is simply no way they can afford to compete with online purchases. I do not know what will happen in these instances. What will local authorities do? Will the people who own the shops be encouraged to convert them into residential accommodation or would it be considered very damaging to the whole high street suddenly to find that instead of shops in continuity in a row suddenly two or three were houses? In the past there were lots of little shops that were once houses. Would we be prepared to see the reverse of that happening?

I think it is a very complicated issue, and, if the landlord simply cannot get a tenant now, what does he do? Does he allow the property to fall down? I do not know what the answer is, particularly with the shop premises.

[Lord Kennedy of Southwark]

The amendment moved by the noble Lord, Lord Lucas, raises a significant issue. I can clearly see the point that he is making. If the Government are not minded to accept it, I hope that the noble Lord will be able to give us some insight into the Government’s thinking on how they intend to deal with this problem. My noble friend Lord Beecham raised a significant point about residential property, which is probably just as important as the point about commercial property.

[Lord Shutt of Greetland]

My Lords, I thank noble Lords who have spoken on this amendment, particularly the noble Lord, Lord Lucas, who moved it. The amendment would give authorities the power to reduce the liability for empty property rates. Our ability to take action on empty property rates needs to be balanced against the costs involved, the targeted support that we already provide on business rates and the overriding need to reduce public expenditure and support the economy generally by reducing the deficit. This Government have already doubled small business rate relief for two years, which will benefit about half a million rate payers, with about one-third of a million paying no rates at all for that period. We are also taking powers through this Bill to waive £175 million of backdated business rates demands levied on businesses, including some in ports.

Unfortunately, in taking these matters into consideration, support for empty property rate measures is currently simply unaffordable. While the Government have no immediate plans for reform, we are certainly keeping this matter under review. However, the Bill does give local authorities powers to provide discounts on business rates bills as they see fit, provided they fund the relief themselves. So authorities will be able to reduce bills in the way suggested by the amendment.

I hope that the noble Lord is willing to withdraw the amendment, but I assure him that the matter is under review. It is quite interesting, because I have within the papers here a note about the reliefs. In 2007-08, 2008-09, 2009-10 and 2010-11, changes were made.

[Lord Shutt of Greetland]

My Lords, I am delighted that the noble Lord has made those comments. I think that the officials had difficulties with this, and quite frankly so did I. I sought out the Local Government Finance Act 1998, but I am afraid that it has been amended, because the reference that he makes is not there. Immediately before speaking, I tried to check this myself, because I had some doubt about this. The whole area is under review, as it seems to have been for four years on the trot, because Chancellors and local government people have changed the position. So it is still the fact that the area is under review, but it is one that does impact on the economy. Having heard what the noble Lord said in his latter remarks, clearly, we will need to reflect further. But I cannot make any commitments at this stage. Perhaps a few tender words here and there might help us to understand exactly what he is about.

[Lord Kennedy of Southwark]

Can the Minister give the House an indication that he will come back before Third Reading? I would not want the noble Lord, Lucas, to have to come back again on Third Reading on this matter.

[Lord Shutt of Greetland]

I will certainly use my best endeavours to see that we can write to the noble Lord and that copies are placed in the Library so that other noble Lords with an interest can see the results of that.

--- Later in debate ---

[Baroness Hamwee]

My Lords, I have Amendments 197FA and 197FAA in this group, and I am well aware that my noble friend at the Dispatch Box will tell me that what I am proposing is not lawful. What I am proposing is that a local authority can apply its own criteria essentially in assessing the expressions of interest, and include whatever restrictions and requirements it thinks appropriate—to very much the same aim, the same end, as my noble friend. I have no expectation about the amendments being accepted but, like him, I am looking for reassurances.

My noble friend the Minister said in response to the previous group of amendments that an expression of interest by two or more employees would not be a proxy for a commercial organisation, and referred to that in terms of abuse. I wrote down what he said about that but confess that, having printed off the policy statement to which he referred some weeks ago, I have completely forgotten about it, and it is probably somewhere in a pile of papers on my desk at the moment. What he said was that those expressing an interest would have to show that they are capable of providing a service, that they had engaged with the staff, and that what they were doing was not vexatious or frivolous. I have to say that I would have thought that any commercial organisation will very easily satisfy those criteria.

A concern to which my noble friend Lord Greaves has not referred is that having set up the arrangement—and this of course is not just something that would apply to the two employees; it could apply to a community body as well—it could then sell the business or dispose of the shares in the company which it had formed to run the service. I have not seen any way in which this could be prevented. I suspect that I would be told that it would be improper to prevent it. But it concerns me that it is taking this proposal a good deal further than appears on the face of the Bill.

I turn to subsections (5) and (6) of Clause 71, the first dealing with an expression of interest, the second dealing with a procurement exercise. Both talk of the authority considering—and I will come back to that term—whether the activity would,

“promote or improve the social, economic or environmental well-being of the authority’s area”.

Well indeed, and well and good. But consider: it is not bound to apply those factors. It needs to consider them. I dare say that means that it must be able to show how it has considered them.

Turning to subsection (7), we are told that this,

“applies only so far as is consistent with the law”.

There is no particular assurance at all here, if I may say so. Subsection (7) refers to the procurement exercise but I am worried that an authority may well read this as applying to the expressions of interest as well. In general, I suspect that local authorities will need quite a lot of reassurance over how they apply these provisions.

I speak only for myself in this. I am finding it difficult to articulate some of the unease that is almost more instinctive than technical. However, general expressions of reassurance and consolation may not go quite so far, technically, as to amount to real reassurance. I have rambled enough. I hope that the House has a sense of my unease.

[Lord Kennedy of Southwark]

I shall be brief. The amendment moved by the noble Lord, Lord Greaves, raises important concerns. The other amendments in the group seek a process to deal with these concerns. Without these amendments or something else, it is all rather open to interpretation, which is not a good place for us to be. I agree with the comments of the noble Baroness, Lady Hamwee, about the sense of unease.

The amendments in the names of the noble Lords, Lord Greaves and Lord Tope, and my noble friend Lord Beecham, are absolutely right. They make provision for a consultation process with the users of a service, their representatives and residents of the area. If the noble Lord, Lord Shutt, is unable to accept these amendments, will he tell the House when he responds how he squares that with his previous remarks about localism? I genuinely feel that the Bill is confused. In some cases it gives power to the local community, in some cases it takes it back. There is a lot of regulation. It is all a bit confused here. I would be grateful if the noble Lord could address that point in particular.

[Lord Shutt of Greetland]

I thank the noble Lords who have spoken to this set of amendments. I have notes on these amendments and will do my best to deal with them. Frankly, I am not certain that there is an absolute assurance, but let us see how we go with these amendments.

Amendment 197EZA would give the Secretary of State a power to specify in regulations a service value threshold above which an expression of interest may be rejected. It further provides that this threshold will be set at or above the level at which a full, open tendering process is required to take place by any Act or regulations. I understand that the intention here is to focus the right on those contracts where it is perceived that community groups might have a greater advantage in the procurement process. However, it is worth being clear that while only contracts valued at more than £156,000 must currently comply fully with processes set out in the public procurement regulations, procurement below this level will still be subject to requirements of openness, transparency, freedom to provide services and non-discrimination.

Furthermore, it is not right to limit the range of services open to challenge in this way. It is not true that the voluntary sector delivers only small-value services. The right ensures that good ideas for improving any services get a fair hearing and gives those groups the opportunity to go for it. A threshold that prevents consideration of ideas for better or more innovative delivery of higher-cost service contracts seems unnecessary, given the safeguards that I have already mentioned, and a shame.

This amendment also risks discouraging growth and partnership. For example, a consortium of Holy Cross Centre Trust, Mind and Camden Volunteer Centre won a £2 million contract to deliver mental health daycare services. Would this consortium not be able to challenge? Or take the example of Hackney Community Trust, which started off as a small social enterprise delivering local community transport and has expanded into a highly successful social enterprise. At what point would we say “Sorry, you have grown too much, so your ideas no longer deserve a fair hearing”?

Finally, it could also limit opportunities for larger charities and communities of interest to challenge for higher value services. Nobody would argue, for example, that Age UK does not represent the interests of older people. Yet if Age UK wanted to challenge to deliver the meals on wheels service alongside other services in a large authority area, this amendment could prevent it from doing so. It would be inflexible to set a threshold for service value above which an expression of interest could be rejected, and we would not want to reduce the scope of services that could be challenged.

Amendments 197EA and 197EB would enable relevant authorities to carry out a service review instead of a procurement exercise following the acceptance of an expression of interest. Amendments 197EC and 197ED would require relevant authorities to consult widely in carrying out such a review. We have introduced the community right to challenge to ensure relevant bodies with good ideas for how they can deliver services differently or better get a fair hearing and a chance to compete to run the service. These amendments would put at risk both of these aims.

It is unclear what a service review would constitute under these amendments, and the authority would not be compelled to take any action as a result. Many of you will have received the briefing from 10 leading voluntary and community sector groups, including ACEVO, NCVO, NAVCA and Locality, which states:

“Giving local authorities the choice whether or not to respond to an Expression of Interest with a procurement exercise would negate the right to challenge entirely, by effectively allowing local authorities to ignore Expressions of Interest”.

We are supportive of authorities reviewing their services and consulting widely as part of that activity. This is what good authorities will be doing regularly anyway. But that should not detract from or obstruct these important new rights for communities and I do not agree that they should be watered down in this way.

Having said that, if a local authority and any groups that had submitted an expression of interest can agree together that a service review is the most appropriate course of action, there is nothing to stop those groups withdrawing their formal interest and working with the authority to conduct such an exercise. Leaving the power in the hands of the community group ensures that the right is protected but gives the flexibility—where there is a good and proactive local authority—that noble Lords are requesting.

Amendments 197EC and 197ED impose an onerous duty and go beyond, for example, the best value duty consultation requirement, where the duty is to consult representatives of people who may be affected. Contacting every individual resident and service user would constitute a significant new burden. Again, good authorities already engage a wide range of service users and their representative groups as part of the commissioning and engagement process, and should be designing and commissioning services that best meet the needs of their communities.

Amendment 197FA seeks to enable relevant authorities, when assessing bids in a procurement exercise, to apply any criteria they consider appropriate relating to how they might promote or improve the social, economic or environmental well-being of their area as a result of the procurement. This amendment is unnecessary as it is already possible for relevant authorities to apply such criteria within the limits of procurement law. Any criteria applied beyond these limitations could be unlawful and subject to legal challenge.

Amendment 197FAA would require relevant authorities carrying out a procurement exercise following the acceptance of an expression of interest to consider,

“whether it would be appropriate to include particular restrictions on or requirements of persons bidding in response to the exercise”.

I can reassure noble Lords that this amendment is not necessary to ensure that a local authority can control the identity of the service contractor to which it lets the contract during the life of that contract. It is already standard practice for public contracts to contain a term that any purported transfer by the service contractor of its performance of the contract to another person will lead to termination of the contract.

Local authorities will want to retain control over the identity of the person providing services and will already do that in their service contracts. Even if that were not the case, EU procurement law is strict about a change of identity of the contractor. The substitution of a new contractual partner for the one to which the contracting authority initially awarded the contract could be regarded as a change to an essential term of the public contract in question. This could trigger a new procurement exercise.

We have not sought in these provisions to tell relevant authorities how they should design contracts, and nor should we. We have heard many times in these debates that we should be less prescriptive in what we ask of authorities, while ensuring power is really pushed down to communities. A local authority may already impose restrictions or conditions that apply to all persons bidding, as long as such restrictions or conditions are lawful and do not discriminate between bidders. Any attempt by a local authority commissioning a service to impose conditions or restrictions on some but not all persons bidding in the procurement exercise would risk being unlawful as being discriminatory.

I hope that noble Lords will feel able to withdraw their amendments. Yet, I understand the concerns that many noble Lords have about the Trojan horse issue—whether employees, a charity or someone else is challenging just with the idea of someone else coming in on the exercise. Clearly, all that has been proposed is a community right, and it is all about communities. The question comes when the community has challenged—I suspect that the community will have done that because of dissatisfaction—and the authority then says, “Well, we had better have a procurement exercise”. Certainly, if that exercise is beyond the EU figures there is no question that the exercise will be open. People will have put work in, as will have the community bodies and so forth. However, I do not see circumstances in which that procurement exercise can somehow be limited, because that would be outside the law of the land because of our involvement with the European Community. We must be careful not to kid ourselves about that.

However, having said that, everything in these proposals is about the community’s right. In my view, the community would be exercising that right because it thinks that it can do things better and that the service that it is getting would be better in the future than it received in the past.

--- Later in debate ---

[Lord Kennedy of Southwark]

I am pleased that the noble Lord understood the concerns raised on this important group of amendments, spoken to by the noble Lord, Lord Greaves. Is there nothing that the Minister can offer us in terms of looking at this further? Perhaps he may agree to consult with colleagues and come back at Third Reading.

[Lord Shutt of Greetland]

What I will say is this: I have been giving some thoughts regarding guidance, to which there has been reference all along. Guidance will be given and notes will be available from the department, but there may be circumstances where that guidance will be, “This is something on which you make your own mind up”. I am sure that the department will cull the debate and look at where offers ought to be made. Certainly, if guidance is required, guidance will be given. However, there will be instances where, because we are talking about localism, local people and people on local authorities will be making their own minds up.

[Lord Kennedy of Southwark]

Before the noble Lord sits down, can I ask whether there is any possibility of guidance being available by Third Reading, even in draft?

[Lord Shutt of Greetland]

It is extremely unlikely that the noble Lord will get it as quickly as that, but I believe that it will be available before 31 March.

--- Later in debate ---

[Lord Greaves]

My Lords, I thank the Government for listening to the debate on this matter in Committee and for coming forward with amendments which, by and large, are very sensible. I particularly appreciate their picking up the ancillary use point that I raised in an amendment, a great deal of which makes sense. Furthermore, I think that we all owe a debt to the noble Lord, Lord Cameron of Dillington, for the hard work that he put into this part of the Bill—not least because it meant that we could leave it to him and concentrate on other parts of the Bill.

[Lord Kennedy of Southwark]

My Lords, we have had an interesting debate at this late hour on this group of amendments. I can offer the Government some measure of support tonight, as there is lots to welcome in their proposals here, and they have clearly listened to the concerns expressed in the House.

The origin of some of the proposals can, of course, be found in the previous Administration. Amendment 201A, moved by the noble Lord, Lord Brooke of Sutton Mandeville, is not an amendment that we on these Benches can support, although his Amendment 202A , requiring the Secretary of State to publish criteria by which an asset must be assessed in order to be defined as being of community value, could be of some merit, as is the proposal from the noble Lord, Lord Cameron of Dillington.

[Baroness Hanham]

My Lords, I am extremely grateful for the more or less general support for what we have done, and, in my turn, I thank all those who have diligently attended meetings—not only the noble Lord, Lord Cameron, but my noble friends Lord Gardiner, Lord Cathcart and Lord Howard of Rising. I fear that I may have forgotten someone but there have been great consultations, mostly over the summer, and I am very grateful for the time that noble Lords have put in to ensure that these provisions do not have the unintended consequences that were anticipated.

The noble Lord, Lord Cameron, was the only person to pose questions and perhaps I may turn to those. His amendment would give landowners 60 days to request the local authority to carry out an internal review of its decision to list an asset. We are now going to move from 28 days to six weeks, which is a bit longer, but we think that that will give a landowner time to decide whether he needs to appeal the decision. The details of the procedures for carrying out an internal review, including who can do it, will, I am afraid, be in regulations. I am sure that we will have an opportunity to talk about this further before then, but it is anticipated that that is what will happen.

The process will be that the landowner will first be contacted by the local authority if the land has been nominated by a community group. Therefore, in practice, landowners will have been aware of the process well before they receive the formal notice of the local authority’s decision. Once a review has been requested, it is proposed that the local authority will have six weeks to conduct the review. We also intend to provide in the regulations that, if a local authority and the landowner agree, this period can be extended. Therefore, I think that flexibility is built into that system.

I was also asked who can nominate an asset and about the voluntary and community body. Conditions will be set out in the regulations to demonstrate a local connection. The intention is to ensure that such groups are genuinely concerned with the social well-being benefit of their community and that they are based in the relevant community or neighbourhood. This may include unincorporated groups, so as to allow groups that have recently been set up to help save an asset. There are many examples that have already taken place where people have set up a group to try to save their pub or an asset. We know that that can and has happened. We do not feel that we ought to stand in the way of such groups. However, we will look to see whether we need to place stricter requirements on them as to whether they need to be incorporated or recognised, very much as the noble Lord has said. I will come back to him on that as we make those regulations.

I am extremely grateful to all those who have given their time to do this. I hope that we have more or less answered their concerns. I know you can never be 100 per cent sure—there is bound to be somebody round about who does not think we have quite gone far enough—but I think we have addressed all of the concerns that were raised.

Localism Bill

Lord Kennedy of Southwark Excerpts

Monday 12th September 2011 Lords Chamber

[Lord Kennedy of Southwark]

My Lords, Amendment 108, moved by the noble Lord, Lord Tope, is an interesting amendment, on which I look forward to the response of the noble Earl. As a Londoner, I always thought that the London Transport Users’ Committee did quite a good job standing up for Londoners and, as my noble friend Lord Whitty said, for people travelling through London who have no vote in the GLA or any other elections in London. Having proper GLA input into what goes on in London transport is obviously very important. It has not happened in the past and that is very regrettable. What worries me, though, is where people will go to have their voice heard if this body is abolished. I know that the body is appointed by the London authority. I have some concerns, as a south Londoner, that there is very little experience of south London on the board. That needs to be addressed in the next round of appointments. One member may have been to Putney once or twice, but there is very little involvement in south London.

Another thing that worries me is the performance of London Underground. Noble Lords may not be aware that since April this year performance statistics have ceased to be published, so we have no idea what is going on in London Underground. I think we all know that it is getting worse, for sure, and this is something that needs to be addressed by both the users committee and the London authority pressing the mayor to release those figures again and to say why they have been stopped.

In conclusion, I am not against reform at all, but we need to hear more about how this will improve the situation. We in London all find that things are getting much worse, so we need to hear more about improvements. This may be something for the future, but not now.

[Lord McKenzie of Luton]

My Lords, I should explain that our official Front Bench position is that we support the amendment, which means that, should it be put to a vote, I, at least, will be obliged to vote in favour. I am not sure how many of my colleagues behind me would follow me into the same Lobby. Our position was formulated because of strong support from the GLA, but I take it as implicit in my mandate that supporting the amendment would be conditional on the Government being able to answer a lot of the very robust challenges that have come, particularly, from this side of the House during this debate.

My noble friend Lord Whitty spoke about the importance of preserving a strong consumer interest. Points were also made by my noble friend Lord Faulkner about whether this will benefit passengers, some of whom do not live in London and are not London voters. Indeed, it covers rail travel from such places as Luton. If we were to separate rail from other modes of travel, how would that work? I understand the thrust of the movers of the amendment, but these are questions that need to be satisfied before it could proceed. Perhaps in responding the Government can confirm that there was overwhelming support for the proposition among transport operators and rail user groups. Will the Government let us know, for the record, whether any alternatives to transfer to the GLA have been considered and on what basis they were rejected?

The Government have acknowledged the considerable amount of casework undertaken by London TravelWatch and are presumably satisfied that this could be handled under the proposed new arrangements. The London Assembly review of TravelWatch, to which the noble Lord, Lord Jenkin, spoke, recommended that the reorganisation be folded into the assembly but with rail functions distributed between the assembly and the national independent passenger watchdog Passenger Focus. Have the Government undertaken an analysis and will they support that as an appropriate way forward?

I look forward to the Minister's reply and hope that he can dig me out of my dilemma on this issue. Powerful issues have been raised that need to be answered before the proposition can and should proceed, much as we love the thrust of it. In particular, there is a mood that the status quo should not necessarily be accepted. There may be ways in which it can be improved and cost savings may be generated. I would be interested in the Minister's views on that as well.

Localism Bill

Lord Kennedy of Southwark Excerpts

Wednesday 7th September 2011 Lords Chamber

Moved by

[Lord Kennedy of Southwark]

83: After Clause 172, insert the following new Clause—
“Homes and Communities Agency: annual report
In Schedule 1 to the Housing and Regeneration Act 2008 (the Homes and Communities Agency), after sub-paragraph (1)(a) of paragraph 11 insert—“(aa) state within the report, in particular, the total number of new properties delivered during each year, also specifying, in respect of new properties in the area of each local housing authority—(i) how many are located within a settlement of fewer than 10,000, and fewer than 3,000, inhabitants;(ii) the number let on long leases, fixed-term shorthold tenancies, and periodic tenancies;(iii) levels of rent;(iv) the number designed for use as housing for older people;(v) the number designed for use as housing for other vulnerable groups;(vi) the size as defined by the number of bedrooms;(vii) information on such other categories as may appear to the HCA to be appropriate or may be specified by the Secretary of State.””

[Lord Kennedy of Southwark]

My Lords, my amendment is quite simple and seeks to place an obligation on the Homes and Communities Agency to produce certain information in its annual report. All the information, I understand, is available, some I accept is already published at least every year, and in some cases at least every six months. Having said that, I do not accept that this would be an unmanageable burden or that it is unnecessary or inappropriate to require the agency to produce such information in its annual report. I would contend that this is just the sort of information that the HCA should be including in their annual report. It is also valuable in the review document for the organisation that they clearly detail the number of new properties they have delivered on, what the level of rents are and who they are serving.

This amendment was tabled in Committee but not taken. If the noble Earl is not minded to accept it, in what other ways will the Government ensure that this important information gets out there? While it is one thing to say that the information is already out there, if you are not sure where it is, how it is collected or where it is located in the first place—or whether it is in a number of different places—then getting all the information, making comparisons and being able to comment with an informed mind becomes much more difficult. I beg to move.

[Earl Attlee]

My Lords, the noble Lord described his amendment as simple; experience shows that simple amendments can sometimes be the most dangerous. The information that this amendment would require to be included within the annual report is either reported on already or is available to members of the public, should they request it. For example, information on the total number of homes delivered each year is provided in the HCA’s official statistics, which are published every six months. The HCA also collects information on the number of habitable rooms per property and reports this to my department. No doubt if other types of information became desirable to collect, they would be collected without the need for any legislation.

I do not believe that it is necessary to prescribe in statute that these specific information requirements are included in the HCA’s annual report when the information is either already being collected and reported on or can be made available through existing channels. For these reasons, I hope that the noble Lord will withdraw his amendment.

[Lord Kennedy of Southwark]

My Lords, I thank the noble Earl for his response. Again, we are not going to agree on this. I am very worried that sometimes if the information is out there but you cannot find it or do not know where it is, there is an issue. People should be able to use and comment on it. Having said that, in this case I am prepared to withdraw the amendment.

Amendment 83 withdrawn.

--- Later in debate ---

[Lord Beecham]

My Lords, Newcastle is once again united. We are even more united now than we were under the previous Administration. I congratulate the noble Lord, Lord Shipley, on tabling these amendments and equally congratulate those who have briefed him so thoroughly with the material that he has brought to your Lordships’ House today. He has highlighted an important area of the national housing debate which has been subordinated in recent times to the simple question of household numbers, housebuilding and the long queue of people denied access to accommodation, including first-time buyers and their problems. Much of the emphasis has been simply around numbers and the owner-occupied sector.

The real problems addressed by the noble Lord’s amendments are to be found essentially in the private rented sector, which has received insufficient attention for many years under Governments of both parties, with the result that, as the noble Lord pointed out, far too many people are living in unsatisfactory accommodation. We are living in a letters’ market, as it were. Demand for rented accommodation is going up all the time and obviously property numbers are not going up to match. Reputable organisations are anticipating additional problems when changes in housing benefit come in, and already there is some indication that private landlords are reluctant to let to housing benefit tenants. There is huge pressure within this sector. As the noble Lord pointed out, that sector has much the highest rate of disrepair and the least degree of modernisation through to decent home standards. Therefore, there is a huge need for concentration on these problems. The very basic matters to which the noble Lord referred must be an essential part of the responsibility of any landlord.

There will be a slight irony if the Government resist the amendment. If the exterior of a property was at issue, Town and Country Planning Acts would apply. Owners can be made to tidy up the outside of their property, and even paint it, whatever the length of tenure or even if it is owner-occupied; but when it comes to the inside, as the noble Lord pointed out, these powers do not exist for far too many properties. Therefore, there is nothing wrong in principle with imposing obligations on owners—in this case, renting owners—because they are applicable to all owners as far as concerns the property exterior. One might have thought that, from the point of view of safety and health, the interior is more important. It is perfectly logical that legislation should be amended in the way proposed by the noble Lord.

I will sound a cautionary note. The noble Lord referred to the availability of civil proceedings once the measures pass into law. Again, I remind noble Lords that access to the courts by this group of potential litigants is likely to be affected by the pending changes to legal aid. If current proposals go through, only under exceptional circumstances will legal aid be available to assist tenants in enforcing repair obligations of this kind. Perhaps that should be borne in mind in future debates. I hope that the noble Lord and his colleagues will join Members on all sides of your Lordships' House in investigating those steps very thoroughly, because these matters are not divisible. If we are looking at the housing situation holistically, we must look not only at obligations but also at methods of enforcement. The noble Lord touched on them. We must be sure that those methods remain available to the people who will need them.

I hope that the Minister will respond sympathetically to the suggestions contained in the amendments. I represent an area that has a significant private rented accommodation sector. There are a number of very poor landlords and a licensing scheme that is beginning to have some impact. I hope that that experience, which is reflected in many places, will be improved by the Government giving fair wind to the noble Lord's proposals.

[Lord Kennedy of Southwark]

My Lords, I will speak only very briefly in this debate as the Newcastle duo—the noble Lord, Lord Shipley, and my noble friend Lord Beecham—have covered the matter thoroughly. We support the thrust of the amendments tabled by the noble Lord, Lord Shipley. They address real issues and I am grateful to him for raising them. I look forward to the response of the noble Lord, Lord Taylor.

[Lord Taylor of Holbeach]

Well, my Lords, the noble Lord, Lord Kennedy, and I know that when the Toons are on the run we are in a bit of trouble. However, I welcome the chance to address my noble friend’s amendments, because the debate draws attention to the very important issue of the quality of our housing stock, in particular the rented sector. My noble friend's amendments are all interrelated. They argue a case that unfortunately the Government cannot accept. We believe that the current division of responsibilities and obligations between landlord and tenant is the right one. Having said that, we are not complacent on the issue.

The main focus of my noble friend's amendments is to allow tenants to take action through the civil courts against a landlord who fails to provide safe accommodation. His proposals draw attention to concerns about the condition of some of the housing offered for private rent. There is some evidence that the stock is improving, but we are all keen to see more improvements. However, a mechanism already exists by which tenants can be safeguarded. It has not been mentioned by any noble Lord contributing to the debate. The Housing Act 2004 introduced the housing health and safety rating system—HHSRS, as it is commonly known. The HHSRS applies to all private sector housing regardless of tenure. It provides a framework within which a local authority can inspect a home and assess it against 29 hazards. I shall not list them—I do not actually have them to hand—but they include exactly the sort of situation which my noble friend is talking about: damp and mould, dangerous fumes, hazards of falls and matters concerning the facilities for domestic and personal hygiene. It therefore largely covers the types of hazards which are of concern to my noble friend. Where a local authority discovers such a hazard in someone’s home, depending on its severity, it has a range of powers at its disposal. It can make a hazard safe and charge the landlord or require the landlord to make repairs. Where a landlord does not comply, he can receive a heavy fine and a criminal conviction can follow. All this can be triggered simply by a tenant complaining to the local authority, in contrast to the legislation which my noble friend seeks to amend which is dependent on the tenant taking the landlord to court. The noble Lord, Lord Beecham, referred to the cost, time and difficulty of any legal process. Given that these safeguards already exist as a result of the measure introduced by the previous Government, I ask my noble friend to withdraw his amendment.