Group 1: Tenant participation (Amendments 1, 1A, 3, 4)

Part of the debate – in the Senedd at 4:30 pm on 24 April 2018.

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Photo of David Melding David Melding Conservative 4:30, 24 April 2018

One of the amendments that I brought forward with the support of Plaid Cymru at Stage 2 has, indeed, now been adapted by the Welsh Government and put into their own format, and this amendment is the basis of the discussion we're now having. So, I should welcome the fact that the Government has responded. They're not doing what they originally intended to do; they have responded to the discussions that were held at an earlier stage in the legislative process, for which, rightly, they should get credit. 

So, having said that, and the recognition for the greater tenant participation in this process, I do believe that, in comparison with our amendments, what the Government is offering is a weaker and, I think, vaguer version, and that's why we have this disagreement. I'm now going to try to elaborate so that Members can make a judicious decision.

In group 1, the purpose of amendments 3 and 4 is to provide for a formal process for tenant participation and consultation where there are amalgamations and other structural changes to a registered social landlord. And I do think it's appropriate, when we are referring to the trade organisation, to remember that they clearly have an interest in this and it's appropriate that we hear it, but when the Minister quotes discussions that have been had with the various interested groups in this, they're not part of the legislative process. They give us advice, of course, and I think it's important that we reflect on it, and so I've certainly looked at Community Housing Cymru's note in that vein. They do, in a sort of off-hand compliment, welcome, and I quote,

'The numerous amendments brought forward by David Melding'.

Well, I have to say that 'numerous', I thought, meant something that could not be counted, like, 'There are numerous stars in the universe; they're beyond the ability to count.' I've moved 18 amendments. I hope the Llywydd doesn't think that's too arduous. I notice the alliance that's been formed with the Government with this key body, and, of course, that's in no way inappropriate. But I do think, from the start of this Bill, a lot of people have assumed that it's very technical, therefore not really worthy of full scrutiny and a proper and full legislative process. I am a little disappointed that, in some quarters at least, we haven't had perhaps the level of engagement that one could expect. I mean, law is a serious business, and deregulation, even when its forced on us and it's something we cannot avoid—I completely agree with that—does require rigour.

So, anyway, amendments 3 and 4 ensure that no amalgamations or other structural changes are valid unless the RSL concerned has first carried out a consultation in which all of the society's tenants have been invited to participate. These amendments also provide the Welsh Minister, by regulations, to set out the methods and the time frame to be applied to any consultation. And these regulations may not be made unless a draft of the instrument has been laid before and approved by the National Assembly for Wales, so that we have some control and influence on the nature of those regulations.

Now, in comparison to the Bill in Scotland on this same issue, these amendments are more relaxed and less restrictive in terms of tenant participation. I did not want to propose a veto for tenants, as, in effect, in the circumstances, can exist in Scotland. Because there are issues about managing potentially—even if they're rare—very difficult circumstances, and the Minister has referred to some of them as if they would apply to my amendments, although I do strongly repudiate that.

So, in sections 6 and 7 of the Scottish Bill, an RSL has to consult tenants and to obtain their agreement to the restructuring in cases where the restructuring would lead to a change of landlord for the tenant or the landlord becoming a subsidiary of another body. This was already part of the Scottish Bill, as introduced, so it's clear to everyone, I suppose, who is having to do this, as well as the situation in England, that the approach to reclassification of housing associations has to be undertaken with the rights and protections of the tenant fully considered, and, obviously, I'm seeking to provide a fuller form of protection to tenants, though not as restrictive as the Scottish case. So, I think that here in Wales, at this amendment stage, the least we should do is to guarantee that tenants have the opportunity to participate and engage, when such a huge change is going on around them in terms of the constitutional structure of RSLs. As I said in the Stage 1 debate, what is more powerful than putting a statement like that on the face of primary legislation? As I said, we have had some advance, though not as full as I would have wanted.