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In Amendment No. 399 my noble friend wants to add a new general duty on every public authority to have regard to the preservation of the historic environment, in the context of a Bill which is very different from the 2006 Bill from which he quoted. Although it is an admirable intent, we already require public authorities to do that through existing planning legislation and the consents regime. I have heard no calls for additional duties of this nature on an already complex and overloaded system. One problem is that the language of the amendment is not consistent with what is already in law, and the location of this duty is not clear in relation to other duties. It would serve only to duplicate existing law at a time when the whole thrust of what we are trying to do in planning is to simplify it; that is, to make it easier for the public guardians to do what is right by local and national heritage, and to ensure that we have the right skills in the right places. That is what this debate has been about, with a passion across the Chamber.
Amendment No. 377 adds more layers of requirements to a strong and tested system. I would be afraid that rather than add to this system, it could make it more dysfunctional. But in the context of a Bill that is aiming to provide the certainty that, as we heard yesterday, is sought by so many promoters and businessmen, the danger is that adding a general duty could act as another deterrent to those investors whom we want to come to this country to provide the infrastructure that we need.
I turn now to the proposed amendments to the CIL in Part 11. Amendment No. 439B would define “infrastructure” for the purposes of Clause 202 so that it included buildings, monuments and sites that have been designated as significant heritage assets. In effect, that would allow for CIL revenues to be spent on such items. I have made the same case on the design amendments. The Government have been very clear about the purpose of the CIL. It is a new mechanism to allow local planning authorities to raise additional revenue to help to fund the delivery of the infrastructure that we need to support the development of an area. The CIL is focused on infrastructure provision. We want it to be spent on ensuring that, when development comes forward, it is sustainable by helping to fund new facilities, such as schools, health centres, parks and play areas.
Because of that focus on infrastructure, I am not sure that the amendment makes sense if it is intended to allow for the CIL to be spent on any building, monument or site that has been designated as “a significant cultural asset”, as the amendment proposes. Clause 198(2) contains the obligation on the Secretary
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My noble friend Lord Howarth of Newport tabled a second amendment, Amendment No. 442, to provide that the CIL regulations may specify criteria for allocating CIL revenue to heritage conservation where heritage is impaired by development. Again, CIL revenue could be used to support the improvement of heritage in some circumstances, but we could not agree to the CIL being used to fund conservation where the development has some negative impact on the heritage in question. But that is not to say that mitigating the impact of development on heritage should not be addressed. It should. Our concern with the amendment is that the Government believe that the CIL is not the right mechanism. We should perhaps look at Section 106 agreements for greater flexibility.
In response to the question asked by the noble Lord, Lord Jenkin, we will have an overarching national policy statement that will bring together all the forms of the energy we need and discuss the balance between the various sources of energy, and from that will flow the suite of separate energy policies. The noble Lord will have his overarching energy policy statement which will address the sorts of issues that he raised.
I am sorry to have gone on at such length, and I am conscious that others are waiting to take the Floor. I hope that my noble friend will feel able to withdraw his amendment.
Lord Howarth of Newport: I am extremely conscious of the time and that we are awaiting a very important debate. It is unfortunate that we have been so constrained for time in debating this immensely important subject of heritage and the issues that arise for it from the Planning Bill. I am extremely grateful to all Members of the Committee who have contributed. We have heard wise and impassioned speeches, including speeches from people who presently and in the past have exercised very senior responsibility in relation to heritage. The quality of the contributions and the authority of the contributors have belied the brevity of the debate.
The debate has served to indicate just how difficult, how sensitive and how important those issues are. I know that my noble friend recognises that and that, informed by what she has learnt of the feeling of the Committee, she will go back to her department and think further about how we can find practical ways to secure the heritage in the context of our very necessary programme to rebuild the national infrastructure. I hope that we can come back to these issues on Report and that by then my noble friend will be able to offer us more precise measures that the Government feel will address these needs. I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
[Amendments Nos. 38 and 39 not moved.]
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Lord Patel of Bradford: I beg to move that the House be resumed. In moving this Motion, perhaps I may suggest that the Committee stage begin again not before 8.38 pm.
Moved accordingly, and, on Question, Motion agreed to.
Legislative Reform (Consumer Credit) Order 2008
7.38 pm
Lord Brett rose to move, That the draft order laid before the House on 17 June be approved.
The noble Lord said: My Lords, the draft order is to amend the Consumer Credit Act 1974 in three ways: first, to exempt from regulation buy-to-let lending that meets certain specified conditions; secondly, to clarify the position on the provision of statements for fixed-sum credit agreements, such as personal loans; and, thirdly, to provide definitions of what constitutes “payments” for the purpose of issuing notices of sums in arrears for fixed-sum and running account credit agreements. Examples of these include credit cards and consumer hire agreements. The measures update the provisions introduced into the 1974 Act by the Consumer Credit Act 2006, which received Royal Assent on 31 March 2006. The measures therefore ensure that the regulations fully reflect the original policy intentions.
Until April 2008, the vast majority of buy-to-let loans were exempt from regulation. This was either because lenders were able to use an existing exemption under the 1974 Act or because the loan was for more than £25,000. The £25,000 limit was removed by the 2006 Act, effective from April, extending protection to all consumers’ credit agreements, regardless of value. This was in response to the changing nature of borrowing, with more and more loans above £25,000 not regulated. But it is not our intention to regulate buy-to-let lending in instances where the loan is secured on a property and the borrower, or a relative, intends to occupy less than 40 per cent of that property. Such activity is mainly for investment or business purposes. The risks to the borrower’s home are low in the event that they have difficulty repaying the loan. Currently, there is no evidence to suggest that regulation is needed in such cases. A transitional arrangement has therefore been put in place to exempt buy-to-let loans from regulation until such time as the draft order comes into force.
The draft order creates a new exemption from regulation under the 1974 Act, covering consumer credit agreements for buy-to-let purposes. It applies where the loan is secured on the property and where the owner, or a relative, intends to occupy less than 40 per cent of the property. The measure will maintain the status quo regarding regulation for buy-to-let lending at no additional cost to industry or detriment to buy-to-let investors. Both will continue to benefit from a level playing field in the market.
The 2006 Act introduced a new requirement for lenders to provide borrowers with regular statements for fixed-sum credit agreements. The statements are intended to cover a period of up to one year, run consecutively, and be provided within 30 days of the
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The draft order therefore revokes Regulation 11 of the 2007 regulations and amends the 1974 Act. It provides that under a regulated fixed-sum credit agreement, the lender must give the borrower statements covering consecutive periods of not more than one year, and that such statements must be provided within 30 days of the end of the period to which they relate.
The 2006 Act introduced a requirement for lenders to provide notices of sums in arrears to borrowers with regulated fixed-sum and running-account credit agreements, and for owners to have a similar obligation under consumer hire agreements. Certain conditions have to be satisfied before this obligation arises, some of which relate to payments. This has given rise to a discussion over the precise definition of the word “payments”.
The industry has suggested that a definition of “payments” is required to avoid it being construed more widely. A broader interpretation might include any sums falling due under the agreement at any time, rather than just scheduled repayments and hire payments—for example, default sums that might become due as a consequence of a missed regular payment or over-limit amounts on credit-card agreements which could become payable immediately the customer exceeds their credit limit. As a result, first notices of sums in arrears could be triggered more quickly than would otherwise be the case. The draft order therefore defines “payments” for the purpose of issuing notices of sums in arrears as those payments made at pre-determined intervals provided for under the terms of the agreement. In the case of consumer hire agreements, “payments” is defined to mean those payments made in relation to any period of hire as provided for under the terms of the agreement.
This measure will ensure that the costs to industry of issuing statements and notices of sums in arrears are kept to a minimum by providing greater clarity. It will also avoid any unintended or unnecessary changes to systems. In addition, it will provide more clarity for consumers, who will receive information in a comprehensible and consistent manner. I believe that the order will benefit both consumers and businesses. It clarifies the obligations of industry, it simplifies the framework for consumer credit, and I commend it to the House. I beg to move.
Moved, That the draft order laid before the House on 17 June be approved. 12th report from the Delegated Powers Committee.—(Lord Brett).
7.45 pm
Baroness Wilcox: My Lords, I thank the noble Lord, Lord Brett, for taking us through this Legislative Reform (Consumer Credit) Order 2008 so thoroughly. It passed through the other place unopposed and
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According to the department for business impact assessment, the combined savings arising from the order amount to some £103.2 million. The same assessment envisages no cost whatever. Can the noble Lord confirm that there will be no unforeseen cost to businesses or consumers as a result of the order? Secondly, despite the deregulation the order achieves, consumers will still be able to seek redress through the courts or the Office of Fair Trading. Can the Minister outline what action the Office of Fair Trading can take against lenders found to be in breach? That is all I wish to say at this stage.
Lord Razzall: My Lords, having congratulated the Minister on his elevation to future success, I understand that the noble Baroness will be relinquishing her position. This may be the last time we see her under these august circumstances. I understand that the noble Lord, Lord Hunt of Wirral, will replace her. We congratulate the noble Baroness on the charming and eloquent way in which she has conducted this portfolio.
Lord Razzall: My Lords, this is clearly an important order. The orders that come to us in this way are always highly technical; however, they raise very serious and important issues. It is important to see how buy-to-let lending, which was always intended to be excluded under the framework of the consumer credit legislation, will be dealt with. It is slightly less important, although nevertheless important for the lending community, to have clarification of what they need to do on the giving of statements for fixed-sum credit agreements. A technical matter, but one which is very important for the industry, is that there should be a clear definition of how payments for the purposes of issuing notices of sums in arrears are determined.
While I feel the heavy weight of the chairman of the Delegated Powers Committee behind me—the Minister has also sat on that committee—I must say that these issues should be dealt with by affirmative order. We cannot amend but we can scrutinise and it is very important that such issues are dealt with in that way. Also, I suggest—looking nervously at the Box—that an affirmative order concentrates the mind of those who draft these regulations to ensure that they are effective. This is a very good example of complex issues and I fear that despite the elevation of the noble Lord, Lord Brett, he will not appear on the “Today” programme tomorrow morning. Nevertheless, the regulations are very important for the industry. The combination of consultation and concentration on the affirmative order have produced regulations that I can support.
Lord Brett: My Lords, I thank both noble Lords for their contributions. I made my debut yesterday when the adrenalin was flowing faster and my nerves much tighter than they are tonight—the audience was much larger. I am very appreciative of the kindness and
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It is the case that unlike some pieces of legislation, this one has been heavily consulted on and enjoys broad support not only in Parliament but also across industry, and therefore I can offer the assurances sought by both speakers. I turn first to the points made by the noble Baroness, Lady Wilcox. On the question of whether there will be additional burdens, I can assure her that there are no additional costs to business associated with these proposals. The proposal to exempt buy-to-let lending from the regulations simply maintains the status quo, while the definition of and proposals on statements ensure that the costs to business are kept to a minimum. There has also been considerable consultation within industry about how to minimise the costs to itself by issuing these statements.
The only point I would slightly disagree with is that this is a matter of deregulation. The Government do not believe that it is a question of deregulation at all; these are corrective measures designed to achieve what the original policy intention sought to provide in each case. However, in doing so, the provisions will ensure that the Consumer Credit Act 1974 does not place unnecessary or unintended burdens on business as a consequence of the ambiguities of the previous legislation, so in that sense I am able to offer the assurance that there should be no additional costs. On the noble Baroness’s second question about what will happen to people who are in breach, the 1974 Act provides under the exemptions that there can still be challenges to agreements in the courts on the grounds that the relationship between the creditor and the debtor is unfair. In addition, the debtor can complain to the Office of Fair Trading which can take action under the requirements of the creditor’s licence by, for example, imposing penalties or, if necessary, the licence can be revoked.
Turning to the points made by the noble Lord, Lord Razzall, again I do not believe that there is a great deal between us. Having read the statement, I agree that these are highly technical matters, and while they may relieve the adrenalin they probably enhance the desire to go to sleep during the making of the statement. Noble Lords in this House, of course, are more likely to listen and always to make pertinent points, but I hope that we do not have any areas of major disagreement. On that basis, I hope that I have met the points that have been made and I commend the order.
On Question, Motion agreed to.
Business
7.53 pm
Lord Davies of Oldham: My Lords, perhaps I may be allowed to clear up a procedural matter. There is no question of a time limit on the Second Reading of a Bill. We hope that we will be able to get the Broads
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Baroness Anelay of St Johns: My Lords, perhaps I may take this opportunity to thank the noble Lord the Deputy Chief Whip for making the position crystal clear. As the noble Lord, Lord Howarth, has already mentioned, when this important business was scheduled it was not anticipated that there would be so many speakers. However, this is an important debate and I hope that noble Lords will agree with the Deputy Chief Whip that although a limit of four minutes might be a guide for noble Lords who have important points to make, it is to the benefit of this Bill and the people of Norfolk that those points are made.
I want to make the point at this stage that the procedure involved in a contested Bill Committee means that those noble Lords who take part in the Second Reading debate are barred from taking part in the Committee stage itself. I know that three Members of my own Benches are speaking, and I would not like them to feel that they are being constrained for four minutes if they have important matters to air. In addition, I know that the noble Lord, Lord Addington, has courteously given advance notice that he intends to speak in the gap.
Broads Authority Bill
7.54 pm
The Lord Bishop of Norwich: My Lords, I beg to move that this Bill be now read a second time. The Norfolk Broads, situated in both Norfolk and Suffolk, are the UK’s most important wetland, a unique landscape with a designation equivalent to a national park. It was only in the 1950s that the origin of the shallow, reed-fringed lakes was discovered. They began as medieval peat diggings at a time when Norfolk was the economic powerhouse of the country. Subsequent flooding has given to later generations, including our own, the network of rivers and broads which so many people know and enjoy today. The local naturalist, Ted Ellis, called the Broads,
There is a spiritual quality to the Broads which a Bishop should recognise.
I ought to declare an interest that is unusual even by the standards of this House. The Bishop of Norwich continues to be the abbot of St Benet’s. St Benet’s Abbey is to be found on the river Bure, and on that site I still conduct an open air service every August. St Benet’s was the one monastery which Henry VIII commanded should continue, but it went the way of all the others eventually, and fascinating though the story is, the details are regrettably not relevant to the Bill. I ought also to declare an interest since for six years I was a non-executive board member of the Countryside Agency when it had a role in determining national park funding, the Broads Authority included.
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It was as long ago as 1947 that Sir Arthur Hobhouse included the Broads in the 12 areas of England and Wales which he said should become new national parks, and it was not until 1988, with the Norfolk and Suffolk Broads Act, that his vision was fulfilled. In the mean time, the Broads had come under huge pressure. Water quality had declined and the consequences of phosphate pollution from sewage treatment works, bank erosion by boats and various other factors could have destroyed the special quality of the area for good. Much has been achieved over the past 20 years and the decline has not only been arrested, but reversed.
The boundary of the Broads area is tightly drawn around the flood plains and the lower reaches of the three main rivers, the Bure, the Yare and the Waveney. It excludes all the small towns around the Broads and actually contains no single whole parish. Instead, the Broads area has parts of 93 parishes and a total resident population approaching 6,000. The navigation area is also defined in the 1988 Act. It includes all the publicly navigable stretches of the rivers Bure, Yare and Waveney, and all their tributaries.
The Broads Authority has general duties identical to those of national parks: to conserve and enhance the natural beauty, wildlife and cultural heritage of the area and to promote opportunities for the understanding and enjoyment of the Broads by the public. But there is a third duty, and that is to protect the interests of navigation. The Broads Authority is also a harbour authority. Its responsibilities include public safety provision and the maintenance of all that assists navigation, including moorings, dredging and marking. About a third of the income of the authority comes from the 10,000 people who own a boat on the Broads, and the other two thirds comes from the national park grant through Defra.
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