Fire Safety Bill — House of Lords, 2020-11-17
Topic: Housing
Stephen Greenhalgh (Conservative, Centre-right): My Lords, I thank the noble Baroness, Lady Pinnock, and the noble Lord, Lord Shipley, for their Amendment 13 on remediation costs. I often think that we need to apply a Daily Mail test to discover whether the opinion of the House will be tested. We have had an article in the Mirror from Pippa Crerar indicating one Division, and an article on this amendment from a different Mirror journalist—the online political editor. So I am not surprised that there will be a test of the opinion of the House I want to make clear the sincerity of our view that we need to understand the scale of the problem. Removing the cladding is like unpeeling an orange. You then find greater defects: the internal compartmentation issues, the missing firebreaks, and the issues around fire doors and wooden balconies. These historic structural defects will involve a colossal sum of money. We do not know how much; there are estimates and there are guesstimates, but we accept that there is a significant job of work to be done to deal with the historic defects that have accrued over many, many years As the Minister with responsibility for building—as well as fire—safety, I am regularly in contact with leaseholders hit with high bills for remediation to help make their homes safer. I fully understand the anxiety and distress that these people are going through. These are people who have done the right thing, investing their hard-earned savings into a home for themselves and their families, yet now many of them are facing unaffordable bills. I fully understand the intention behind this amendment, and I want to assure noble Lords that we are working very hard in the Ministry of Housing, Communities and Local Government to improve the situation that people find themselves in Finally, we have already committed £1.6 billion to fund the removal and replacement of unsafe cladding on high-rise residential buildings, and we have been putting pressure on building owners to step up to the plate, as well as using warranties and recovering costs from contractors for incorrect or poor work However, I can assure noble Lords that we want to go further to protect people from unaffordable costs. Noble Lords will be aware that we published the draft building safety Bill on 20 July 2020. This includes important public safety measures; the Government are committed to progressing the Bill as quickly as possible so that reforms can be implemented in a timely manner. The Bill will be introduced to Parliament once the Government have considered the scrutiny committee’s recommendations. My right honourable friend the Secretary of State for Housing, Communities and Local Government is committed to updating our position on remediation costs when the building safety Bill returns to Parliament. Michael Wade, senior adviser to MHCLG, is accelerating work with leaseholders and the financial sector to identify financing solutions that protect leaseholders from unaffordable costs while ensuring that the bill does not fall entirely on taxpayers. We have had regular meetings with leaseholder groups, on this and a range of other issues, since the draft Bill was published While I support the underlying intention to protect leaseholders and have gone on the record today saying so, this amendment falls down in three main areas, which might make the problem worse rather than better First, the safety of residents in their homes is of the highest priority. This is the intention behind today’s Bill and all the Government’s wider work on building safety. There is a range of options for meeting the costs of safety-critical remediation work, which will be appropriate in different circumstances. It would be irresponsible to close off one of the potential routes to funding these works. This amendment risks leaving a building with known fire risks in a position where the work is not taken forward Secondly, this new clause would stop all remediation costs from being passed on to leaseholders. For example, service and maintenance charges would at present meet the cost of safety work required as a result of routine wear and tear, such as worn fire door closers. These costs would now fall to building owners—who are, in many cases, also not responsible for original building defects, as they did not build the property—rather than being determined by the terms of the lease Thirdly, the fire safety order is not the appropriate legislative framework to resolve remediation costs. The primary focus of the fire safety order is to place duties on any person who has some level of control in a premises—the responsible person or the dutyholder—to ensure that they identify the fire safety risks for the buildings they are responsible for and, if necessary, put in place general fire precautions. As I have said, we are looking to the building safety Bill to address the issues raised in this amendment I thank the noble Earl, Lord Lytton, for his comment about orphan liability. He underlined the point that we need to keep the options open. I also thank the noble Lord, Lord Stunell, for his comment about construction warranties. Typically, the market leader is the NHBC. I met the council very recently and, effectively, that is only a 10-year protection: two years for defects, with eight years insurance-based. While we are looking at ways of increasing the compliance period to align with the 10 years, it would be possible through other legislative means to extend the period, because I do not see why someone who has put their life savings into a home has such minimal protection when they purchase a property. I buy a pair of tweezers to take the hair out of my ears and they have a lifetime guarantee. When someone puts their entire savings into a home, they deserve protection over time. That is something we as a Government need to look to do, and will do in due course. This is not the moment to resolve this particular issue, but it is well noted. I ask that your Lordships’ House recognises the complexity of this policy area, which cannot be solved through this amendment, and considers the assurances I have given today. For the reasons set out in my response, I ask the noble Baroness to withdraw her amendment.