THIRD
REPORT
The Deregulation and Regulatory Reform Committee
has agreed to the following Report:—
The draft Deregulation (Disposals of Dwelling-Houses
by Local Authorities)
Order 2001
1. On 31 January 2001 the Government laid before
Parliament the proposal for the Deregulation (Disposals of Dwelling-Houses
by Local Authorities) Order 2001 in the form of a draft of the
Order and an explanatory memorandum from the Department of the
Environment, Transport and the Regions.[4]
We have already reported on the Government's proposals for this
draft Order, which provides for the amendment of the Leasehold
Reform, Housing and Urban Development Act 1993 ("the 1993
Act").[5]
2. The 1993 Act governs the sale or disposal of local
authority housing to registered social landlords ("RSLs"),
principally housing associations. Where more than 499 dwellings
are involved, the housing transfer is designated as a large scale
voluntary transfer programme ("LSVT") and is regulated
under section 135 of the 1993 Act. One of the effects of section
135 is that LSVT housing transfers must be completed by the end
of the relevant financial year - that is to say, the year for
which the disposals programme in which the transfer is included
is made. The draft Deregulation Order would amend the 1993 Act
to extend the time for the completion of LSVT housing transfers
to the end of the financial year following that year.
3. The Committee's predecessor, following its consideration
of the proposal, concluded that it met the criteria against which
we are required to judge it.
4. However, the then House of Lords Select Committee
on Delegated Powers and Deregulation questioned whether the drafting
of the Order exceeded what is required to achieve the apparent
policy purpose. Clarification was sought from the Department,
who subsequently undertook to modify the Order so that provision
under section 135 for an annual disposals programme is clearly
spelt out on the face of the draft Order. This should ensure the
retention of any protection given to the taxpayer under section
135.
5. The Committee's predecessor recommended that a
draft Order taking into account the drafting concerns of the House
of Lords Select Committee on Delegated Powers and Deregulation
should be laid before the House.
6. The draft Order has been amended to address the
concern of the then Delegated Powers and Deregulation Committee
of the House of Lords; and to reflect the transfer of responsibility
to the Secretary of State for Transport, Local Government and
the Regions. In response to concerns from the Treasury, the Department
is also expected to monitor the new policy to ensure that the
proposed changes do not lead to a reduction in the efficiency
of the transfer process. No further representations were received
by the Department during the period for Parliamentary consideration.
7. We recommend unanimously that the draft Order
should be approved.
4 Copies
are available to Members from the Vote Office and to members of
the public from the Department of Transport, Local Government
and the Regions. Back
5 Third
Report, Proposal for the Deregulation (Disposals of Dwelling-Houses
by Local Authorities) Order 2001, HC 327 of Session 2000-01. Back
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