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Housing and Regeneration Bill

I shall talk to government Amendment No. 110E. It requires the regulator to employ the services of the Audit Commission as the inspecting body of housing associations. The regulator may not appoint any other organisation to carry out an inspection unless the Audit Commission has declined the role. While we respect the Audit Commission’s expertise, and we think it likely that it would in any case be appointed to carry out many or most inspections, we question the blanket requirement to use the Audit Commission in every case. The noble Baroness, Lady Hamwee, has already mentioned fees; I want to mention four other issues. First, how can the regulator, the inspecting organisation or the sector as a whole be certain that there is value for money when the inspector is a monopoly provider appointed without any tender or selection process? Any of the regulated bodies would quite properly be slated for acting in such a way. Secondly, if the Audit Commission not only is a monopoly provider but also has the ability to stop any other potential provider, where is the quality control? Who can challenge poor performance and do anything about it? Thirdly, and similarly, what incentive does the Audit Commission have to organise its business in an efficient, economical way if it is a monopoly supplier of an essential service? Fourthly, the regulator will be obliged to appoint the Audit Commission even if the inspection relates to a specialised area in which the commission may have no expertise. In such a case the regulator will be able to turn to a more qualified inspector only with the Audit Commission’s consent.