Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses (Questions 280-297)

MR GRAHAM GARBUTT AND MR STEVE GREGORY

5 MAY 2004

  Q280 Christine Russell: You have just emphasised that you are a very new organisation?

  Mr Garbutt: Indeed.

  Q281 Christine Russell: Can I ask you how well developed your understanding is of how effective the performance of housing associations, local authorities who are housing providers are in your region?

  Mr Garbutt: Yes. Take local authorities, for example. The process of corporate performance assessment that local authorities are going through, or have gone through, and are going through refreshers, does focus upon that; and, as you know, there is an issue here about the relationship between the Audit Commission and the Housing Corporation both nationally and regionally. I think we have quite a good fix now on where the problems are and where the greatest challenges are, for example in meeting the Decent Homes targets, and that is something that we are quite well focused on at the moment. I think as a Regional Housing Board my own presumption would be that as a Board our fix on individual associations may be less good, although I think you would need to ask the Housing Corporation regional people about their own direct fix on that. We talked to them about it. We do not see it as wholly within our remit at the moment to look as a housing board at the performance of individual associations, but we have discussed with their Head of Regulation the process they go through, but we see that as something they bring to the table as a completed process.

  Q282 Christine Russell: Have you looked, for instance, at how effective the associations are at delivering new developments, actually spending the money?

  Mr Garbutt: As a Board we have not actually done that yet. It is something we have talked to the Corporation about doing for the future; we have not done it yet.

  Mr Gregory: We have relied in this first year on the Corporation's processes for delivering that part of the regional housing pot. So they have used their processes and their analysis of associations' performance in this first year. We did have a presentation from the Regulator last week, where we began to highlight some of these issues that we might need to consider. I think, if you recall, so much of this allocation, the two-year period that we are working through at the moment, is allocated by national formula. It is as we get into the next round, where we are allocating it by regional strategy, that I think the real regional issue about delivery will take place, the debate will take place, and we have just started to get into that now.

  Q283 Christine Russell: Would you like to elaborate a little further on a comment that you make in your submission, which is an interesting one: because you are talking about wider perceptions of your role and the need for more emphasis. You say, "More emphasis on communication is probably required, especially in explaining the basis of regional decisions locally"?

  Mr Garbutt: Yes, the nub of the point there is that it is a new process, and frankly we thought we did rather well in getting it up and running and completing the strategy with full agreement, getting that submitted to ministers and getting it agreed without amendment in the time available (and I think that partly answers some of the questions that were made earlier), but, inevitably, in the process, despite what we have both said about going around the region and talking about what we have been doing, I do not think that the understanding is embedded in all areas where it needs to be, nor have we fully explained the way in which people can influence it.

  Q284 Christine Russell: What areas do you need to concentrate a little more on getting your message through?

  Mr Gregory: One of the things that we have really tried to emphasise in producing the strategy is that it is a strategy for the whole region and the region stands or falls on the success of rolling out the housing strategy. The region is very heavily dominated by the Birmingham conurbation and the effects of the conurbation roll-out into the Shire areas. The Regional Planning Guidance that we have worked very, very hard on is based on an urban renaissance policy of reversing a policy that we have had for 15 or more years of decentralising the conurbation out into the rural hinterland. Having had that policy for 50 years, we have got now communities in the rural hinterland who have growing families who want to remain within the area and are generating more demand. Our policy now is to encourage migration back to the conurbation, which means that we have to create a conurbation where people aspire to live, a policy that we are just beginning to break into.

  Q285 Christine Russell: You said at the beginning that the West Midlands contains areas of very high demand and very low demand, what you have just said seems to indicate that you are going to, perhaps pressurise is too strong a word, but you are going to hope to persuade families who made the exodus from Central Birmingham 50 years ago to move back in. In reality that is not going to happen. How are you going to provide affordable housing for those families to remain in their market towns or villages?

  Mr Gregory: Just finishing off that last point, because I did ramble, this is the policy that needs to be communicated, that it is a whole region policy; and the rural area needs and the urban areas needs are different sides of the same coin, but they do tend to split and get themselves presented as two different policies. We need to do a lot of work on persuading people that the regional planning guidance and the urban renaissance policy is the right policy for the region, and that is a major communication issue.

  Q286 Chris Mole: Kate Barker is keen to see some of the obstacles of housing developments moved out of the way. You have talked about how the Regional Housing Strategy and the Regional Spatial Strategy were developed in parallel. Do you think that mitigates the need for any kind of formal merger or joining together of the RHB and the regional planning bodies?

  Mr Garbutt: I think it needs very careful attention and obviously it is something which will be debated over the summer. For me, as I indicated earlier, I think there are important issues about lines of accountability and the way in which the Barker proposals would be implemented within the current structure of Regional Assemblies and Regional Housing Boards I think is something which potentially could lead to some confusion in terms of political accountability. It is important that that does not happen, and I am not quite sure how those possible proposals could be implemented without creating confusion. Perhaps it can be done; I do not see a solution at the moment.

  Q287 Chris Mole: Is there a risk of the tail wagging the dog?

  Mr Garbutt: Could you explain further?

  Q288 Chris Mole: In the sense of if the Regional Housing Policy is developed in isolation from the planning strategy, you could end up effectively driving the Spatial Strategy through what the housing requirements are?

  Mr Garbutt: Again I cannot speak for other regions, but I think in the West Midlands things are very closely aligned, both the Regional Planning Guidance and the Regional Housing Strategy and the Regional Economic Strategy are similar documents very closely aligned. That has been achieved. Whether that is achieved everywhere, whether that has potential future problems, is hard to comment on. The theoretical principle of aligning planning and housing clearly is a strong one, but, as I have said, to bring them together to an executive which is defined by Barker as independent from the political process is something which does raise questions about accountability. Who takes responsibility for decisions which are made on the basis of the Regional Executive's advice? Is the accountability aligned to ministers at a national level or is it to some so far not directly elected assembly, or is it to local authorities? That, I think, needs to be thought through very carefully.

  Q289 Mr O'Brien: Should there be a National Housing Strategy?

  Mr Garbutt: I think there is a need for a National dimension; whether you call it National Housing Strategy, I think, is a good question. I think that the relationship between the Housing Corporation and ODPM does need to be manifest in some statement of national strategy.

  Q290 Mr O'Brien: Should it be drawn up on the Government's national strategy or based on a series of regional strategies?

  Mr Garbutt: Yes, but again it would be a two-way process.

  Q291 Mr O'Brien: Should it be the Government's policy that should be highlighted, or should it be highlighted from a number of regional policies, National Housing Strategy?

  Mr Gregory: In my view it is a national framework that is then interpreted at a regional level to meet the needs of each region.

  Q292 Mr O'Brien: Then it brings in other regional dimensions, like transport, roads, and the need for corporation. If that is so, does it mean that the Regional Strategy is working in a vacuum at the present time, that there are other forces that should be taking part, or you should be taking part in other dimensions, other dialogues?

  Mr Garbutt: Indeed we are. Part of the Government office of course, works very closely, indeed sponsors, the Regional Development Agency, so we are very closely involved in the Regional Economic Strategy and similarly in the Regional Planning Guidance, so that does take place. As we have said in the submission, there is also a requirement a national level for ODPM to bring a coherent view of transport policy, planning policy, economic policy into its relationship with the Corporation.

  Q293 Mr O'Brien: Is the ODPM doing anything on the National Strategy basis?

  Mr Garbutt: The vision that they are developing for   the relationship between ODPM and the Corporation, I think, does address all the points that we make in our paper.

  Q294 Andrew Bennett: You are not exactly putting the boot into the Government, though, are you? If you take Telford as a new town, there is a major problem with some of its old housing there, is there not, and yet you do not appear to be making a great song and dance about the lack of use of those resources and modernisation. If we take the centre of Birmingham, or a lot of Birmingham, because Birmingham tenants voted against stock transfer, there is a major question as to how that housing is going to be brought up to the Decent Homes Standards, and then you have got the problem with low demand in an area like Stoke. Ought you not to be saying to the Government some of those Government policies are wrong and they need to be changed?

  Mr Garbutt: Well, I am a civil servant and, as it were, I am the agent.

  Q295 Andrew Bennett: Oh, I understand your difficulty.

  Mr Garbutt: It is not my job to put the boot into the Government.

  Q296 Andrew Bennett: Should not somebody be speaking up for the West Midlands and saying, "Look, we have got these crazy situations, we have got deterioration of stock in building"?

  Mr Gregory: Perhaps I can pick that up, because the Regional Housing Partnership is not so constrained by being a part of the Civil Service, but I think we would say those things if we found they were a particular problem.

  Q297 Andrew Bennett: So you are telling me there is not a problem with the housing in Birmingham?

  Mr Gregory: No, I am not saying that at all, but what we need to do is evidence it and consider the resource needs against the resources we know are coming in. What we have done in the first year of developing the strategy is to commission a series of studies to understand in detail the dynamics of the housing market, particularly in Telford, which is one of the areas that you raise, is one of those areas that we have identified as a Board that needs to be further researched along with the black country. That Black Country research is being done at a sub-regional level picking up the needs of the rural hinterland as well as the conurbation. We will find evidence of the need for resources there. The first port of call for those resources will be to the Regional Housing Board. The Regional Housing Board will then have to prioritise. If that prioritisation exercise leads to a need for more resources, then we raise it as a need, but it will be a programming issue as much as an issue of lobby.

  Chairman: Thank you very much indeed for your evidence this morning.





 
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