Housing Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Housing Bill

Housing Bill
Schedule 8 — Registered social landlords
204

      (4)
For the purposes of sub-paragraph (3), a year of account of a
landlord is a “relevant year of account” if—
(a)
it precedes that in which the direction is given, and
(b)
at the end of it there is in force in relation to it a
disapplication under section 4A(1) of the Friendly and
5
Industrial and Provident Societies Act 1968.
      (5)
In this paragraph—
“qualified auditor” means a person who is a qualified
auditor for the purposes of the Friendly and Industrial
and Provident Societies Act 1968;
10
“year of account” has the meaning given by section 21(1) of
that Act.”
20    (1)
Paragraph 18 of Schedule 1 (accounting and audit requirements for
charities) is amended as follows.
      (2)
In the cross-heading preceding the paragraph, after “and audit” insert “or
15
reporting”.
      (3)
In sub-paragraph (1) (application of provisions to registered social landlord
which is a registered charity) omit the words from “(which impose”
onwards.
      (4)
For sub-paragraph (4) substitute—
20
     “(4)
The charity must appoint a qualified auditor (“the auditor”) to
audit the accounts prepared in accordance with sub-paragraph (3)
in respect of each period of account in which—
(a)
the charity’s gross income (within the meaning of the
Charities Act 1993) arising in connection with its housing
25
activities, or
(b)
its total expenditure arising in connection with those
activities,

exceeds the sum for the time being specified in section 43(1) of the
Charities Act 1993 (audit required for charities where gross
30
income or total income exceeds the specified sum).
     (4A)
Where sub-paragraph (4) does not apply in respect of a period of
account, the charity must appoint a qualified auditor (“the
reporting accountant”) to make such a report as is mentioned in
paragraph 18A(1) in respect of the period of account.
35
     (4B)
In sub-paragraphs (4) and (4A) “qualified auditor” means a person
who is eligible for appointment as auditor of the charity under
Part 2 of the Companies Act 1989 or who would be so eligible if the
charity were a company registered under the Companies Act
1985.”
40
21
After paragraph 18 of Schedule 1 insert—
“Charities exempt from audit requirements: accountant’s report
18A   (1)
The report referred to in paragraph 18(4A) is a report—
(a)
relating to the charity’s accounts prepared in accordance
with paragraph 18(3) in respect of the period of account in
45
question, and
(b)
complying with sub-paragraphs (2) and (3) below.

Housing Bill
Schedule 8 — Registered social landlords
205

      (2)
The report must state whether, in the opinion of the reporting
accountant—
(a)
the revenue account or accounts and the balance sheet are
in agreement with the books of account kept by the charity
under paragraph 18(2),
5
(b)
on the basis of the information contained in those books of
account, the revenue account or accounts and the balance
sheet comply with the requirements of the Charities Act
1993, and
(c)
on the basis of the information contained in those books of
10
account, paragraph 18(4A) applied to the charity in respect
of the period of account in question.
      (3)
The report must also state the name of the reporting accountant
and be signed by him.
      (4)
Paragraph 18(7) applies to the reporting accountant and his
15
functions under this paragraph as it applies to an auditor and his
functions under paragraph 18.
      (5)
The Relevant Authority may, in respect of a relevant period of
account of a charity, give a direction to the charity requiring it—
(a)
to appoint a qualified auditor to audit its accounts for that
20
period, and
(b)
to furnish to the Relevant Authority a copy of the auditor’s
report by such date as is specified in the direction;

and paragraph 18(5) to (7) apply to an auditor so appointed as they
apply to an auditor appointed under paragraph 18.
25
      (6)
For the purposes of sub-paragraph (5), a period of account of a
charity is a relevant period of account if—
(a)
it precedes that in which the direction is given; and
(b)
paragraph 18(4A) applied in relation to it.
      (7)
In this paragraph “period of account” and “qualified auditor” have
30
the same meaning as in paragraph 18(4A).”
22    (1)
Paragraph 19 of Schedule 1 (responsibility for securing compliance with
accounting requirements) is amended as follows.
      (2)
In sub-paragraph (2)—
(a)
in paragraph (c), after “and audit” insert “or reporting”;
35
(b)
omit paragraph (d) (but not the “or” at the end); and
(c)
for “level 3” substitute “level 5”.
      (3)
The amendment made by sub-paragraph (2)(c) does not apply in relation to
any offence committed before the day on which that sub-paragraph comes
into force.
40
      (4)
After sub-paragraph (4) insert—
     “(5)
Where any of paragraphs (a) to (e) of sub-paragraph (2) applies in
respect of any default on the part of a registered social landlord,
the High Court may, on the application of the Relevant Authority,
make such order as the court thinks fit for requiring the default to
45
be made good.

Any such order may provide that all the costs or expenses of and
incidental to the application shall be borne by the registered social

Housing Bill
Schedule 8 — Registered social landlords
206

landlord or by any of its officers who are responsible for the
default.”
23
After paragraph 19 of Schedule 1 insert—
“Disclosure of information by auditors etc. to the Relevant Authority
19A   (1)
A person who is, or has been, an auditor of a registered social
5
landlord does not contravene any duty to which he is subject
merely because he gives to the Relevant Authority —
(a)
information on a matter of which he became aware in his
capacity as auditor of the registered social landlord, or
(b)
his opinion on such a matter,
10

if he is acting in good faith and he reasonably believes that the
information or opinion is relevant to any functions of the Relevant
Authority.
      (2)
Sub-paragraph (1) applies whether or not the person is
responding to a request from the Relevant Authority.
15
      (3)
This paragraph applies to a person who is, or has been, a reporting
accountant as it applies to a person who is, or has been, an auditor.
      (4)
A “reporting accountant” means a person appointed as mentioned
in paragraph 16(7)(b).”
24    (1)
Paragraph 20 of Schedule 1 (inquiry into affairs of registered social landlord)
20
is amended as follows.
      (2)
After sub-paragraph (4) insert—

“(4A) The person or persons conducting the inquiry may determine the
procedure to be followed in connection with the inquiry.”
      (3)
At the end of sub-paragraph (7) add “, and the Relevant Authority may
25
arrange for the whole or part of an interim or final report to be published in
such manner as it considers appropriate.”
      (4)
After sub-paragraph (7) insert—
     “(8)
A local authority may, if they think fit, contribute to the expenses
of the Relevant Authority in connection with any inquiry under
30
this paragraph.”
25
After paragraph 20 of Schedule 1 insert—
“Evidence
20A (1)
For the purposes of an inquiry the person or persons conducting it
may serve a notice on an appropriate person directing him to
35
attend at a specified time and place and do either or both of the
following, namely—
(a)
give evidence;
(b)
produce any specified documents, or documents of a
specified description, which are in his custody or under his
40
control and relate to any matter relevant to the inquiry.
      (2)
The person or persons conducting such an inquiry—
(a)
may take evidence on oath and for that purpose administer
oaths, or

Housing Bill
Schedule 8 — Registered social landlords
207

(b)
instead of administering an oath, require the person
examined to make and subscribe a declaration of the truth
of the matters about which he is examined.
      (3)
In this paragraph—
“appropriate person” means a person listed in section 30(2);
5
“document” has the same meaning as in section 30;
“inquiry” means an inquiry under paragraph 20.
      (4)
A person may not be required under this paragraph to disclose
anything that, by virtue of section 30(4), he could not be required
to disclose under section 30.
10
     (5)
Section 31 (enforcement of notice to provide information, &c)
applies in relation to a notice given under this paragraph by the
person or persons conducting an inquiry as it applies in relation to
a notice given under section 30 by the Relevant Authority, but
subject to sub-paragraph (6).
15
      (6)
A person guilty of an offence under section 31(1) as it applies in
accordance with sub-paragraph (5) is liable—
(a)
on summary conviction, to a fine not exceeding the
statutory maximum;
(b)
on conviction on indictment, to imprisonment for a term
20
not exceeding two years or to a fine, or both.
      (7)
Any person who, in purported compliance with a notice given
under this paragraph by the person or persons conducting an
inquiry, knowingly or recklessly provides any information which
is false or misleading in a material particular commits an offence
25
and is liable to the penalties mentioned in sub-paragraph (6).
      (8)
Proceedings for an offence under sub-paragraph (7) may be
brought only by or with the consent of the Relevant Authority or
the Director of Public Prosecutions.”
26    (1)
Paragraph 21 of Schedule 1 (power of appointed person to obtain
30
information) is amended as follows.
      (2)
At the end of sub-paragraph (3) (application of section 31 to notice under
paragraph 20) add “, but subject to sub-paragraph (4).”
      (3)
After sub-paragraph (3) add—
     “(4)
A person guilty of an offence under section 31(1) as it applies in
35
accordance with sub-paragraph (3) is liable—
(a)
on summary conviction, to a fine not exceeding the
statutory maximum;
(b)
on conviction on indictment, to imprisonment for a term
not exceeding two years or to a fine, or both.
40
     (5)
Any person who, in purported compliance with a notice given
under this paragraph by an appointed person, knowingly or
recklessly provides any information which is false or misleading
in a material particular commits an offence and is liable to the
penalties mentioned in sub-paragraph (4).
45
      (6)
Proceedings for an offence under sub-paragraph (5) may be
brought only by or with the consent of the Relevant Authority or
the Director of Public Prosecutions.”

Housing Bill
Schedule 9 — New Schedule 2A to the Housing Act 1996
208

      (4)
The amendments made by this paragraph do not apply in relation to any
offence committed or other thing done before the day on which this
paragraph comes into force.
Schedule 9
Section 189(3)

New Schedule 2A to the Housing Act 1996
5
“Schedule 2A
Section 51A(7)

Further Provision About The Social Housing Ombudsman For Wales
Status
1
The Social Housing Ombudsman for Wales (“the Ombudsman”)
shall be a corporation sole.
10
Remuneration, etc.
2
The National Assembly for Wales may pay to or in respect of the
Ombudsman such amounts, by way of remuneration, pensions,
allowances or gratuities or by way of provision for any such
benefits, as it considers appropriate.
15
3
If a person ceases to be the Ombudsman and it appears to the
National Assembly for Wales that there are special circumstances
which make it right that the person should receive compensation,
the National Assembly for Wales may pay to that person a sum of
such amount as it considers appropriate.
20
Staff and advisers
4     (1)
The Ombudsman may appoint such staff as he considers
necessary for assisting him in the exercise of his functions.
      (2)
The Ombudsman shall include among his staff such persons
having a command of the Welsh language as he considers are
25
needed to enable him to investigate complaints in Welsh.
      (3)
To assist him in the exercise of his functions, the Ombudsman may
obtain advice from any person who, in his opinion, is qualified to
give it.
      (4)
The Ombudsman may pay to any person from whom he obtains
30
advice under sub-paragraph (3) such fees or allowances as he may
determine.
Delegation of functions
5     (1)
Any function of the Ombudsman may be exercised by—
(a)
a member of his staff, or
35
(b)
a member of the staff of the Commission for Local
Administration in Wales,

if authorised by the Ombudsman for that purpose.

Housing Bill
Schedule 9 — New Schedule 2A to the Housing Act 1996
209

      (2)
The Ombudsman may, with the approval of the National
Assembly for Wales, make arrangements with persons under
which they, or members of their staff, may perform functions of
the Ombudsman.
      (3)
References in any provision made by or under an enactment to a
5
member of staff of the Ombudsman include any person exercising
any function of his by virtue of sub-paragraph (1)(b).
Reports and determinations
6     (1)
The Ombudsman—
(a)
shall annually prepare and lay before the National
10
Assembly for Wales a general report on the performance of
his functions; and
(b)
may from time to time prepare and lay before the National
Assembly for Wales such other reports with respect to his
functions as he thinks fit.
15
      (2)
The National Assembly for Wales shall, and the Ombudsman
may, publish reports laid before the National Assembly for Wales
under sub-paragraph (1).
7
The Ombudsman may, subject to any provision made by
regulations under section 51B, publish his determination on any
20
complaint.
8     (1)
The Ombudsman may include in any report or determination
published under paragraph 6 or 7 statements, communications,
reports, papers or other documentary evidence obtained in the
exercise of his functions.
25
      (2)
In publishing any report or determination, the Ombudsman shall
have regard to the need for excluding so far as practicable—
(a)
any matter which relates to the private affairs of an
individual, where publication would seriously and
prejudicially affect the interests of that individual; and
30
(b)
any matter which relates specifically to a social landlord in
Wales, where publication would seriously and
prejudicially affect its interests;

unless inclusion of the matter concerned is necessary for the
purposes of the report or determination.
35
Expenses
9     (1)
The expenses of the Ombudsman shall, so far as they cannot be
met out of income received by him, be met by the National
Assembly for Wales.
      (2)
Those expenses include any sums payable by the Ombudsman in
40
consequence of a breach, in the course of the performance of any
of his functions, of any contractual or other duty (whether that
breach occurs by reason of his act or omission or that of a member
of his staff or any other person assisting him in the exercise of his
functions).
45

Housing Bill
Schedule 9 — New Schedule 2A to the Housing Act 1996
210

Absolute privilege for communications etc.
10
For the purposes of the law of defamation absolute privilege
attaches to—
(a)
any communication between the Ombudsman and any
person by or against whom a complaint is made to him;
5
(b)
any determination by the Ombudsman; and
(c)
the publication by him of any report or such a
determination under paragraph 6, 7 or 8.
Disclosure of information
11    (1)
Information obtained by the Ombudsman in the course of or for
10
the purposes of an investigation of a complaint must not be
disclosed except—
(a)
for the purposes of the investigation, of any determination
made in respect of the complaint or of the publication of a
determination under paragraph 7;
15
(b)
as provided in paragraph 12 or 17 or any regulations under
section 51B;
(c)
for the purposes of any proceedings for an offence of
perjury alleged to have been committed in the course of an
investigation of a complaint by the Ombudsman; or
20
(d)
for the purposes of an inquiry with a view to the taking of
any proceedings as mentioned in paragraph (c).
      (2)
The Ombudsman shall not be called upon to give evidence in any
proceedings (other than proceedings within sub-paragraph (1)(c))
of matters coming to his knowledge in the course of an
25
investigation of a complaint.
      (3)
Information obtained from the Information Commissioner by
virtue of section 76 of the Freedom of Information Act 2000 shall
be treated for the purposes of sub-paragraph (1) as obtained for
the purposes of an investigation and, in relation to such
30
information, the reference in paragraph (a) of that sub-paragraph
to the investigation shall have effect as a reference to any
investigation.
12
The Ombudsman may disclose to the Information Commissioner
any information obtained by, or furnished to, the Ombudsman by
35
virtue of or for the purposes of section 51A or 51B if the
information appears to him to relate to—
(a)
a matter in respect of which the Information
Commissioner could exercise any power conferred by—
(i)
Part V of the Data Protection Act 1998
40
(enforcement),
(ii)
section 48 of the Freedom of Information Act 2000
(practice recommendations), or
(iii)
Part IV of that Act (enforcement), or
(b)
the commission of an offence under—
45
(i)
any provision of the Data Protection Act 1998 other
than paragraph 12 of Schedule 9 (obstruction of
execution of warrant), or