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


Examination of Witnesses (Questions 140-159)

MR ROY IRWIN, MR MIKE MAUNDER, MS SARAH WEBB AND MR IAN RICHARDSON

28 FEBRUARY 2005

  Q140 Chris Mole: You have both suggested the planning system is not really geared up to address issues of low demand. What more do you think could be done to make it proactive in managing the housing supply across districts, both with low demand and high demand?

  Ms Webb: I think there is a very simple starting point, which is actually that engagement. I do not think we have seen enough active engagement from planning authorities yet in the Pathfinder areas generally and in the low-demand problem specifically. It has been their responsibility as well as everybody else's responsibility to try and solve an important starting point. I do not under-emphasise how important that is. There are specifics around site assembly and the use of CPO powers, which I think could be improved. It is very difficult to get CPO powers to work effectively, particularly in areas of mixed tenure. There is work we can do there to improve how planning legislation supports that process.

  Mr Maunder: I think there is a major issue in terms of planning and that is to do with regional spatial strategies and the extent to which they will reflect and support the work that the Pathfinders are doing. There is a potential I think—and it is something that we have highlighted in our best practice handbook—that some regional spatial strategies could actually work against the success of Pathfinders by potentially allowing building which would compete with Pathfinders and the work that they are trying to do. So we highlight a need for some better co-ordination from a national and local government office level, to try and ensure that both the regional spatial strategy and the strategies being developed by Pathfinders complement each other rather than compete.

  Q141 Chairman: Can you give us a concrete example of where it is not happening then?

  Mr Maunder: Regional spatial strategies are still going through their developmental phase, and they are each at different positions at the moment, but it does appear that potentially, with some of the things that are on the table at the moment, if those discussions proceed in the way that they are, then there could be that level of competition.

  Q142 Chairman: Can you be a little bit more specific: where is the difficulty?

  Mr Maunder: The area that would give us most concern at the moment in terms of the draft regional spatial strategy would be in the North East.

  Q143 Chairman: What you are saying is that there is too much greenfield development still being talked about in the North East?

  Mr Maunder: There is too much development outside the Pathfinder area, whether it is on green or brownfield sites, that will compete with what the Pathfinder is trying to achieve in Newcastle/Gateshead.

  Q144 Sir Paul Beresford: You have answered the first part of the question. The second part of the question was how could planning be proactive in high demand areas. I see proactive there as helping the low demand areas: proactive in the high demand areas to stem growth and try to induce it to go further into the low demand areas.

  Mr Maunder: I think what you are highlighting is tension between what the Government's national policy might be in relation to growth areas and how that is reflected through what is happening at a local level through regional spatial strategies, and the need to ensure that there is clarity of guidance, I think, to those people who are writing regional spatial strategies.

  Mr Richardson: Again, if I can add to that, I think there is some cause for optimism. It is early days but the bringing together of the regional housing boards and the regional planning functions, one would hope, will help to bring about a culture change that enables planning to serve as a facilitator of the delivery of the housing market restructuring generally rather than something which focuses unnecessarily or unduly on development control, so that it enables rather than inhibits the delivery of our objectives.

  Q145 Chris Mole: Would the Commission share that view of the coming together of regional planning and housing boards?

  Mr Irwin: I think if there is some consistency in terms of regional policy that actually links the planning arrangements for spatial strategy and the resource distribution issues, then that would make sense. The context that is slightly different to market renewal currently is the market renewal funding, and the options and review processes do not go through regional arrangements in terms of allocation of resources. That does not mean that that is a problem, but if you do not deal with it, it could be.

  Q146 Mr Cummings: Many of the submissions made to this inquiry have referred to skills shortages and recruitment difficulties. Can you tell the Committee how serious you believe these problems to be.

  Mr Maunder: We referred earlier to people that have been recruited to the Pathfinders, and there is no doubt that there have been some good quality people that have been recruited at that sort of fairly high level. I think there are concerns that there are some shortages of skills within the regeneration profession, and I think that has been recognised by ministers with some proposals that have recently been announced, but those are not going to deliver in the short term and there is some concern. I think there is concern about the construction industry. In terms of northern cities that make up Pathfinders, there is a lot of construction work going on at the present time, and one is concerned that there will be some competition between some of the works that are currently going on and Pathfinders, what that might do to prices and what that might actually do to the potential for contracts to be tendered and not to find takers. We in our best practice handbook talk about some prospects for trying to develop staff by using consultants. We are slightly critical of the use of consultants . . .

  Q147 Chairman: Bringing all these consultants in is just taking money away from the Pathfinders. It is going down to the South of England. Almost all the consultants come from the South of England, do they not? They come up on the train—ever so expensive.

  Mr Maunder: Chairman, I started by saying that we were slightly critical of the use of consultants, the over-use of consultants, and what we are suggesting is that they could be used to try and develop the skills within Pathfinders and within the constituent local authorities. There is a role for consultants; there is no question about that. They do have some skills but the challenge for Pathfinders is to ensure that they get the best value that they can out of the consultants that they use.

  Q148 Mr Cummings: Who taught the consultants?

  Mr Maunder: I am sure that many of them will have worked in local authorities and other areas.

  Q149 Mr Cummings: The people that you are proposing to train come from local authorities and the private sector. I am just following on from the comments made by the Chairman concerning the prolific use of consultants in this particular dimension.

  Mr Maunder: There is no doubt there has been considerable use of consultants in this area. What we are saying is we do not think that they have been used as effectively as they could have been. There is no doubt that they could have done some very good work, but there is also some work that has been produced that we would question in terms of the value that it has added to the work that the Pathfinders wanted to do.

  Ms Webb: I think there has been a clear step change in the last couple of years in some of the thinking from people who work in the Pathfinder areas, in particular, in thinking strategically, in project management skills, in working with the private sector, in linking planning and housing together, in all those things. What I do not think we have yet is enough of a critical mass of that. We would see it as very much part of our responsibility to try and build that critical mass. We are reviewing our professional qualification at the moment, just as one example of doing that, and my guess is, without predicting the outcome of that, that the kinds of skills we will identify as needing the profession to have in the next five years will be quite different from the ones before that. But I do not think there are no skills; I just do not think we have enough of them yet. Our job is to prepare people to be intelligent clients of all kinds of support mechanisms, whether it is consultants or anybody else.

  Q150 Mr Cummings: This particular question is to the CIH. I do notice that you are running some two three-day residential workshops. They are very short courses indeed. How are you planning to tackle the fundamental skills shortages required to manage market renewal programmes?

  Mr Richardson: I think we need to see this in a number of ways. Firstly, we are making a response to this. Secondly, those three day masterclasses are a first initiative, short-term bringing together of people who have been developing those skills, and looking at how that can be replicated more widely. That is in some senses a short course response, and that is not unusual in any area of skills development. I think what is important though is Sarah's earlier point, which is that we are reviewing currently our whole education and training front, our professional qualification, with a view to ensuring that we are geared up to delivering the sort of skills and experience that people need to deal with the current problems that we are faced with. At the moment the responses to your questions have concentrated, perhaps understandably, on the need for project planning and management skills to deliver the programmes in the Pathfinder, but what I think is of at least equal importance is the need for skills in the construction industry. There is major investment going on associated with the Pathfinders and more broadly with areas of low demand, many of which have witnessed stock transfer and so on. There is an awful lot of investment can go on there. All the evidence points to an acute shortage of skilled labour and craftsmen, the likelihood that many of those people will be lost in the relatively short to medium term as a consequence of the age profile of the people within the sector, and the need for people to come in quite quickly, otherwise what we will be faced with is poorer value for money than would otherwise be the case in these investment programmes, as we compete with each other for the relatively short supply of those skilled people.

  Q151 Mr Cummings: Any thoughts as to who should fund these programmes?

  Mr Richardson: I think, at the risk of sounding slightly glib, it points to the need for partnership.

  Q152 Chairman: Who are the partners?

  Mr Richardson: The partners are those organisations which are commissioning the work, whether they be local authorities, housing associations, the private builders and so on, and the construction companies themselves. We all stand to benefit; we all have a vested interest in seeing this skills development, and I think it points not only to the need for long-term apprenticeship that gives people proper skills, but in the short term we need some quicker fixes. Those investment programmes need to hit the ground running pretty quickly, so there is a need for the development of some skills which do not require long-term apprenticeships and so on but enable people to deliver that investment programme effectively.

  Q153 Chairman: Is there a training levy left in the building industry? I know most of the others have gone.

  Mr Richardson: I do not know, Chairman.

  Ms Webb: I think there are some important small scale initiatives happening within individual Pathfinder areas around apprenticeship schemes and that kind of thing, but there is probably a need for some kind of DTI/ODPM level partnership as well.

  Q154 Mr O'Brien: Mr Irwin, the Audit Commission is recognised as a "critical friend" of the Pathfinders. They are also the auditors of some of the agencies that are helping with these schemes. How do you reconcile these two conflicting views that you have?

  Mr Irwin: First of all, the people who do the relative work are totally detached from each other, so they are not the same people who are auditing the accountable bodies, which is the audit role, and those people in the "critical friend" role. The second thing is that, quite rightly, local authorities across the country ask their auditors for their views on issues, which you could see in advance of them actually making a decision could be seen as a critical friend role in another respect anyway. Is this local, does this comply with national guidance, etc? So I do not think the two roles are conflicting at all. One is for the accountable body and one is for the Pathfinder, which is the oversight . . .

  Q155 Mr O'Brien: Which is the accountable body?

  Mr Irwin: The accountable body will be one of the principal authorities within the constituent area, so it could be either a metropolitan authority or a county council.

  Q156 Mr O'Brien: But they are helping with the programme. They want to see the programme succeed too. You are auditing that.

  Mr Irwin: We are auditing their compliance . . .

  Q157 Mr O'Brien: You are also a critical friend of the Pathfinders. Is there not some conflict there?

  Mr Irwin: No, I do not think so.

  Q158 Chairman: So you think it is perfectly easy for the critical friend to say "Yes, go ahead," and then the auditor to say "You shouldn't have done that"?

  Mr Irwin: I do not think a critical friend's role is to say "Yes, go ahead." A critical friend's role would be to say "Have you thought this through properly? Where is your evidence? Are you sure this is going to actually make a difference to the programme?" A critical friend is not about sanctioning actions; it is about questioning actions.

  Q159 Chairman: But if you question it, and are satisfied with the answers to the questions, it is a bit upsetting if one of your colleagues, although totally separate, says "You shouldn't have done it."

  Mr Irwin: I do not think that is likely to be the case. I do not think that the role of critical friend is to sanction things; it is just to make sure that people have made their decision, and, by definition, their decision is not our decision.


 
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