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Housing Corporation (Delegation) etc. Bill

It is a great pleasure to follow the Minister in this debate. It is also a particular pleasure to see the new Minister for Trade in his place on the Front Bench. I say that because this Bill is small and, some might argue, perfectly formed, in that it has attracted no amendments and comes to us in its original pristine form. It would therefore be natural for many to conclude that it was flawless from the beginning. Indeed, given the well known attachment of the new Secretary of State for Communities and Local Government to the Roman Catholic Church, one might even say that it had an immaculate conception. However, I would not like anyone to think that this brief measure has passed through the House without scrutiny, because several hon. Members made valuable comments on Second Reading and in Committee. I should like in particular to pay tribute to the hard work of my hon. Friend the Member for Wellingborough (Mr. Bone), who is in his place, and my hon. Friends the Members for Welwyn Hatfield (Grant Shapps), for St. Albans (Anne Main), for Banbury (Tony Baldry) and for Hammersmith and Fulham (Mr. Hands). I think that in every case where there were local elections in the constituencies of those of my hon. Friends who spoke on Second Reading, the Conservative party made gains—in some cases, sweeping gains. I would like to think that there was a direct causal connection between their commitment to extending social housing and Conservative success, but I suspect that other factors to do with the Office of the Deputy Prime Minister may have played an even greater part in those results. While on the subject of Whitehall manoeuvres, I congratulate the Minister on retaining her portfolio. I would like to think that the Prime Minister was taking such a close interest in the passage of the Bill that he did not dare move the Minister during its passage lest it, or she, come to some harm—but I suspect that he may have had other things on his mind in the past week. As the Minister and the House will know, we have been happy, indeed eager, to assist the Government with this business, not only on the compassionate Conservative basis that we should help the vulnerable but because, as we outlined on Second Reading and in Committee, we think that the Bill is necessary and urgent. As the Minister made clear, it seeks only to correct an anomaly that came to light earlier this year. It will grant to the Housing Corporation the power to delegate that that body, and all independent observers, always believed that it had. It will regularise in law a state of affairs that has been ongoing for years, which everyone accepted and to which no one objected until an eagle-eyed lawyer discovered a technical breach in the corporation's constitution. At every stage of the legislative proceedings, the Minister has been helpful and to the point in explaining the need for the Bill. However, as hon. Members have raised certain questions during its passage, I should like briefly to explain why we believe that it passes the tests that qualify it for speedy transfer to the statute book. Any legislation should pass at least three tests: the test of necessity, the test of proportionality, and the test of consequentiality. First, is it necessary, or could we achieve this goal by other means? Secondly, is it proportionate, in that it does what it says on the tin, or does it carry within it additional measures beyond those required to achieve the desired effect? Finally, what consequences will its passage have on the broader legislative and administrative framework in which we operate? Does it create precedents, or will its operations have ramifications that have profound and unheralded consequences? As the Minister made clear, the Bill passes the necessity test. We all know that it is necessary to keep housing associations buoyant and effective and enable them to continue carrying out their superb job of providing social housing and acting as social enterprises. Their success has depended on their access to debt finance on competitive terms. As the Minister again made clear, lenders lend to housing associations because they have absolute security and first call on their assets. They have that security because of the section 9 consents that have been granted through prior legislation. In many cases, they were granted under delegated powers. If there is any uncertainty about the legality of the exercise of those powers, an element of risk is introduced. As we all know, introducing an element of risk into the lending process places a premium on loans. That means additional costs—for the taxpayer or housing associations or those in genuine need, who depend on social housing. We therefore share the Government’s commitment to removing that risk, restoring certainty and helping those in need. That is why we believe that the Bill passes the necessity test. Let us consider the proportionality test. My hon. Friend the Member for Wellingborough made some telling points on Second Reading and in Committee when he asked whether it was disproportionate to introduce a measure to deal with something that the Housing Corporation could tackle through a retrospective consent. There are some attractions in his case. However, the best advice from all lawyers is that both the Housing Corporation and housing associations would be on a securer and more certain footing if primary legislation were passed. Given the speed with which the House has considered the measure, and that we now teeter on the precipice of seeing it on the statute book, it appears foolish to argue that there is any method other than the original course of speedy legislation to provide the security and certainty that lenders, the Housing Corporation and housing associations deserve. The Bill is, therefore, not only necessary but proportionate. At 22 lines long, it tries to do nothing more than address the specific anomaly. Some hon. Members suggested in Committee that it should be used to achieve other ends. The Minister was attentive to their concerns, and promised to revert to them by other means. Let us consider consequences. The Bill is narrowly and precisely drafted, so few consequences flow from it other than the rectification of the existing anomaly. As the Minister was gracious enough to point out, it raises a specific question. Do any other non-departmental public bodies in Whitehall have similar or related loopholes or lacunae in their constitutions? She gave us an absolute assurance that all the non-departmental public bodies under her Department as it was before the recent reshuffle were covered, and that she would consider all those that now come within her bailiwick. She also assured us that the Cabinet Office would examine all non-departmental public bodies throughout Whitehall.