The next item is the Stage 4 debate on the Regulation of Registered Social Landlords (Wales) Bill. I call on the Minister for Housing and Regeneration to move the motion—Rebecca Evans.

Motion NDM6717 Rebecca Evans

To propose that the National Assembly for Wales, in accordance with Standing Order 26.47:

Approves the Regulation of Registered Social Landlords (Wales) Bill.

Motion moved.

Thank you, Llywydd. I'm very pleased to move the motion and to open the Stage 4 debate for the Regulation of Registered Social Landlords (Wales) Bill. I'd like to thank Assembly Members for the cross-party support for this Bill, and for the scrutiny that has taken place throughout the passage of the Bill. I'd like to thank the sub-committee of the External Affairs and Additional Legislation Committee, and the committee itself, and the Constitutional and Legislative Affairs Committee and the Finance Committee for their measured scrutiny of the Bill. Many stakeholders also provided an important contribution to the legislative process, and last, but certainly not least, I would like to place on record my thanks to the dedicated team of Welsh Government officials who have supported me so diligently to progress the Bill this far.

This Bill was introduced to respond to the Office for National Statistics's decision to reclassify RSLs as public non-financial corporations for statistical purposes in 2016. This technical accounting decision could have jeopardised the Welsh Government's target of building 20,000 much-needed new affordable homes this Assembly term. The reclassification means RSL borrowing, both historical and current, will be brought onto the public accounts, and scores against Welsh Government budgets. This would mean we would have to find an extra £1 billion of additional funding over this Assembly term to meet these costs, which would have a serious impact on our existing spending plans, or we would have to cut our affordable housing programme, therefore delivering significantly fewer homes.

Neither of these options was acceptable to the Welsh Government, which is committed to increasing the number of affordable homes available in Wales. This Bill makes changes that will allow the ONS to review its classification decision, and the current funding arrangements for RSLs in Wales can be maintained. Similar legislation has been passed in England. The Bill introduces provisions that amend central and local government controls identified by the ONS. These include provisions on the disposal of land by RSLs, certain constitutional and structural changes to RSLs and local authority influence over RSLs, and it clarifies when Welsh Ministers can use powers in respect of inquiries, enforcement and intervention in relation to RSLs.

The scrutiny process has been very thorough and the requirements for RSLs to consult with their tenants before making certain structural changes has been strengthened as a result. This is an important restatement of my commitment to tenants being at the heart of regulation and of the importance of RSLs listening to their tenants. And tenants are at the heart of regulation. In December 2016, a new regulatory framework was launched that took into account the changes that this Bill would introduce. Tenants, Assembly Members and other stakeholders can be assured that robust regulation, including intervention and enforcement powers, continues and will not be going away.

Finally, Llywydd, I'd like to say how pleased Carl Sargeant would be to see this Bill reach its final stage, having been the Minister who introduced the Bill to the Assembly. So, I am delighted to be able to help steer it through its final stages towards the Welsh statute book.

Llywydd, it is in the public interest that this Bill receives support today. Given the decision of the ONS on the classification of RSLs, we must act. We've always accepted the principle of this Bill on this side of the Assembly, however we have sought to scrutinise it as a piece of significant, if necessary, deregulation. Consequently, it requires rigorous risk management. Our amendments at Stage 3 sought to strengthen the Bill in this regard and I regret that they did not receive the support of the Assembly. While I welcome the moves made by the Welsh Government, under our scrutiny, to improve tenant participation, they still fall far short of our proposals.

It is time to move on and accept that a 'good enough' Bill should be accepted. The Bill, as now presented, will secure the needed status of independence to reverse the ONS's previous classification decision. With this, the way is once more open for RSLs to continue their important work of building more social homes. By clarifying the status of RSLs, investors will be confident that governance arrangements do not permit public interference. On this basis, I urge Members to vote for the motion before the Assembly today.

We are going to support the passing of this Bill in the final stage today. We recognise that, due to ONS reclassification, this is a necessary piece of legislation and we note that the Bill, in its final form, resembles similar legislation, as has been mentioned by the Minister, undertaken in England and in Scotland respectively. Although in crafting this legislation the Welsh Government had to be wary of the restrictions placed upon it by reclassification requirements, I believe that a number of amendments, particularly surrounding tenant consultations, could have been stronger, and that was reflected in David Melding's very noble efforts in that regard.

Technically, we are turning housing associations into private companies or something potentially resembling social enterprises. There is no guarantee that the fundamental nature of housing associations in Wales couldn't change over the next few years as a result of elements of this Bill, so I was disappointed that there wasn't a greater emphasis on post-legislative scrutiny as part of the final Bill, but I'm sure that Assembly Members on this side of the Chamber, and others I'm sure, will keep a close eye on developments and would like to track what happens emanating from the passing of this Bill. We would like to ensure that no unintended consequences creep into this particular element of legislation. Particularly, in this last week, I've heard concerns raised by Shelter, for example, about 3 per cent salary increases by a certain social landlord every year while rents are actually going up for those struggling to survive, especially with regard to welfare reform. So, we wouldn't want to see too much of that happening if the rents are going to continue to rise, so that's something we'd have to keep a close eye on with changes to legislation.

But, as I've said, we are minded to support this particular piece of legislation, hoping, though, that the Minister will continue her conversations with people like myself on the opposition benches in relation to tenant rights, in relation to how we can engage more positively with them so that they can feel part of the process, and ownership of the processes, because they are integral to how we develop the sector. 

I call on the Minister for Housing and Regeneration to reply to the debate. Rebecca Evans. 

Thank you very much. I think this final debate has shown just how robust the scrutiny process has been throughout the passage of the Bill so far and the level of interest there's been and the seriousness with which Members have taken their roles in terms of scrutinising this Bill. I very much welcome that. So, I would ask Members to support the motion and support the Bill, which, as David Melding and Bethan Sayed would both acknowledge, and have both said, will certainly allow RSLs to continue not only to borrow to invest in new homes and their existing stock, but also to do that important work and investment that they make in communities: providing vital training, employment, social and economic benefits and so on. And I give my commitment to continue with Members the discussion that we've started in terms of tenant participation. Diolch. 

I thank the Minister. In accordance with Standing Order 26.5, a recorded vote must be taken on Stage 4 motions, so I move to the vote on this motion. Unless three Members wish for the bell to be rung, we will open the vote on the motion put forward in the name of Rebecca Evans on Stage 4 of the Regulation of Registered Social Landlords (Wales) Bill. Open the vote. Close the vote. In favour 49, no abstentions, none against. Therefore, the motion is agreed. 

NDM6717 - Debate on Stage 4 of the Regulation of Registered Social Landlords (Wales) Bill: For: 49, Against: 0, Abstain: 0

Motion has been agreed

That brings today's proceedings to a close. 

The meeting ended at 18:42.