TENTH REPORT
The Regulatory Reform Committee has agreed
to the following Report:
DRAFT REGULATORY REFORM (SCHEMES
UNDER SECTION 129 OF THE HOUSING ACT 1988) (ENGLAND) ORDER 2003
Report under Standing Order No. 141
1. The Regulatory Reform Committee has examined the
draft Regulatory Reform (Schemes under Section 129 of the Housing
Act 1988) (England) Order 2003 in accordance with Standing Order
No. 141. We recommend unanimously that the draft order be approved.
Introduction
2. On 10 March 2003 the Government laid the draft
order before Parliament, together with an explanatory statement
from the Office of the Deputy Prime Minister (the Department).[1]
We have already reported on the proposal for this order, which
would amend section 129 of the Housing Act 1988 (the 1988 Act)
by removing the requirement for local housing authorities in England
to obtain approval from the Secretary of State where they wish
to operate a cash incentive scheme.[2]
A cash incentive scheme provides for payments to assist tenants
in obtaining other accommodation.
3. The House has instructed us to examine the draft
order against such of the criteria specified in Standing Order
No. 141(6) as are relevant. We are also required to consider the
extent to which the responsible Minister has had regard to any
resolution or report of the Committee or to any other representations
made during the period for parliamentary consideration.[3]
Our discussion of matters arising from our examination is set
out below.
Findings of our previous report
4. We were satisfied that the proposal met all but
one of the criteria against which we are required to judge it,
and we concluded that a draft order revised in the manner indicated
by the Department should be laid before the House. The revisions
were necessary to meet our concerns about the draft order; they
ensured that the draft order would not re-enact section 129 of
the 1988 Act in respect of Wales, which would have had the effect
of imposing a burden on local housing authorities in Wales.
5. In discussing whether the proposal would continue
any necessary protections, we signalled our interest in receiving
the results of the Department's analysis of the impact of the
draft order. We also expressed concerns about the quality of the
Department's explanatory statement.
Re-enacting provisions that impose
burdens in respect of Wales
6. We were not convinced by the Department's argument
that the proposal would remove a burden only in relation to England
and would not re-enact a provision having the effect of imposing
a burden in respect of Wales. We did not accept that the Department
was justified in seeking to distinguish the "circumstances
applicable in Wales" from those applicable in England. Furthermore,
if the proposal were considered to be re-enacting section 129
in respect of Wales, we considered that the Department had not
met the requirements of section 1(1)(b) of the Regulatory Reform
Act 2001. Section 1(1)(b) requires the Department to demonstrate
that a benefit would result from the re-enactment of section 129,
and that this benefit would be proportionate to the burden arising
from the re-enacted provision.
7. We raised these concerns with the Department.
The Department responded by indicating its intention to revise
the proposed draft order. On the basis of the Department's response,
we were satisfied that, if the draft order was revised in the
way indicated by the Department, then it would no longer re-enact
a provision having the effect of imposing a burden on local housing
authorities in Wales.
8. Despite reaching this conclusion, we expressed
our concern that the Secretary of State appeared to have initially
asserted that section 1(1)(b) of the Regulatory Reform Act was
satisfied but then, upon subsequent questioning, had stated that
he was not sufficiently well-informed to assess whether section
1(1)(b) was in fact satisfied. We indicated that we expected both
the Department and the Secretary of State to ensure, in respect
of any future proposals, that any assertion that a particular
test of the Regulatory Reform Act is satisfied is based on adequate
and convincing evidence.
1 Copies of the proposal are available to Members of
Parliament from the Vote Office and to members of the public from
the Department. The proposal is also available on the Cabinet
Office web site http://www.cabinet-office.gov.uk/regulation/act/proposals.htm. Back
2
Seventh Report of Session
2002-03, HC 436 Back
3 Standing
Order No. 141(7) Back
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