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National Assembly for Wales (Legislative Competence) (Housing and Local Government) Order 2010

My understanding is that it does, although equally I understand that it is the intention—if only that of the present Welsh Assembly Government, which would not bind their successors—to use this to suspend the right to buy in areas of housing pressure. I understand, on the point made by the noble Lord, Lord Rowlands, that they could do what the Explanatory Memorandum suggests. The agreement to take forward this LCO, following three years of some frustration and procedural hurdles, demonstrates the success of a relationship of mutual respect and collaboration between Westminster and Cardiff. I am sure that noble Lords will agree that, in the new politics of this new era, mature attitudes of co-operation and compromise are signs of strength, not of weakness. I turn to the detailed content of the draft order. The order will devolve legislative competence in relation to many aspects of housing policy, enabling the Welsh Assembly Government to propose legislation to implement their new housing strategy Improving Lives and Communities: Homes in Wales. The strategy is to be implemented through an action plan and it is my understanding that in some areas this will require primary legislation. I hope that this LCO will facilitate the implementation of the strategy. Indeed, I understand that earlier today the First Minister announced the Welsh Assembly Government’s legislative programme for 2010-11. He announced plans to introduce a housing Measure, making use of the legislative competence devolved to the National Assembly via this LCO, subject to its being passed and subsequently approved by the Privy Council. As I think the First Minister indicated, it would allow for local authorities to apply to Welsh Assembly Government Ministers for the temporary suspension of the right to buy in areas of housing pressure, as well as increasing those Ministers’ intervention powers in relation to social housing. The draft order is structured around two key themes: social housing and meeting the housing needs of vulnerable people. The LCO would also devolve competence in relation to the amount of council tax charged on second homes. Specifically, it will insert seven new matters, Matters 11.2 to 11.8, into Field 11, the housing field, of Part 1 of Schedule 5 to the Government of Wales Act 2006. It will also insert one matter, Matter 12.18, into Field 12, the local government field. Taken together, Matters 11.2 and 11.3 would allow the Assembly to legislate to strengthen powers of early intervention in failing housing associations and modify the approach taken to allocations. Matter 11.4 would allow the Assembly to legislate to standardise local authority and housing association tenancy agreements, thereby removing an impediment to stock transfer. Matter 11.5 covers the disposal of land held or used for social housing. The One Wales agreement includes the commitment to, ""draw down legislative power … in order to suspend the Right to Buy in areas of housing pressure"." The Assembly Government want temporarily to suspend the scheme in specific local circumstances to address local difficulties. As I have said, Assembly Government Ministers have made it clear that they have no intention of abolishing the right to buy in Wales. Matter 11.6 covers housing-related support to those who need help to occupy their homes. Matter 11.7 is about provisions by local authorities of caravan sites for Gypsies and Travellers. The Assembly Government intend to propose legislation compelling local authorities to provide sites for the accommodation of Gypsies and Travellers when a need is clearly identified. The coalition Government are grateful to the Assembly Government for their assurance that they will not seek routinely to dictate to local authorities the location of these Gypsy and Traveller sites. Matter 11.8 covers homelessness. The Assembly Government may legislate to tackle the underlying causes of homelessness and to place a stronger emphasis on homelessness prevention. Finally, the National Assembly would be able to legislate to increase the amount of council tax charged on dwellings that are not a main residence as a result of Matter 12.18. The LCO was subject to pre-legislative scrutiny by the Constitution Committee of this House, the Welsh Affairs Committee in the other place and a committee of the National Assembly. I am grateful for the thorough scrutiny carried out by those committees. The Constitution Committee of your Lordships’ House, on which the noble Lord, Lord Rowlands, and I had the privilege to serve—I do not think that I was present when this order came before it—concluded that this LCO raises no issues of constitutional principle. The Welsh Affairs Committee recommended that matters in the LCO relating to social housing would be clearer by being merged into a single matter. However, if that were done, the new matter would require exceptions and carve-outs, which the committee had previously recommended should be avoided. Therefore, those matters have not been changed and some of the definitions have been clarified. The committee also suggested that the name of the LCO should more accurately reflect the matters that it contains. After a great deal of consideration, it was concluded that the title of the LCO should continue to follow standard drafting convention and include the names of the fields in Schedule 5 to which the LCO relates—on this occasion, housing and local government. Finally, the Explanatory Memorandum was further clarified in relation to the definition of the terms "homelessness", "Gypsies and Travellers" and "caravan", as used in the LCO—specifically, references to Gypsies and Travellers were capitalised. I hope that noble Lords will agree that this LCO devolves competence across many important aspects of housing policy, thereby enabling broad-ranging legislation to be brought before the National Assembly for Wales. This coalition Government share the Assembly Government’s frustration that the devolution of housing powers has taken some considerable time to come about—perhaps it is a frustration shared by other Members of the Committee here today—but nevertheless here we are. We are pleased that, as a result of some honest and open discussions between Ministers in Whitehall and Ministers in Cardiff Bay, there is a broad consensus for taking forward this legislative competence order. I hope that the spirit of co-operation will continue. In that spirit, I commend the order to the Committee.