12. Legislative Consent Motion on the Leasehold Reform (Ground Rent) Bill

Part of the debate – in the Senedd at 7:15 pm on 14 December 2021.

Alert me about debates like this

Photo of Huw Irranca-Davies Huw Irranca-Davies Labour 7:15, 14 December 2021

I'd better point out at the beginning of this that I sometimes feel like a legalistic and constitutional Jeremiah sometimes, but we do want to make clear as a committee that our intention is not only to signal where we have concerns, but also, constructively highlight areas which may well help avoid these regular challenges from the committee, some of which are now following a clear and predictable pattern. 

A memorandum is the basis on which the Senedd's consent for a Bill is sought, of course. Unfortunately, we concluded that this particular memorandum was not fit for purpose and fell below the standard we would consider to be acceptable. Amongst other things, there is little information to explain how the provisions relate to leasehold reform in Wales, which is a key point. Within the memorandum, there are continual references to the powers of the Secretary of State, despite this being a devolved area. While the memorandum acknowledged that the Welsh Government would indeed be seeking comparable executive powers for the Welsh Ministers, little attempt was made to explain which powers of the Secretary of State this would apply to.

So, as a result, we recommended that, in advance of today's debate, the Minister should explain why the memorandum lacks a Wales focus in explaining the relevant clauses, all of which fall within the Senedd's legislative competence, and why the memorandum did not refer to wider aspects of the leasehold reform programme and its relevance to Government thinking on the use of a UK Bill. So, unfortunately, the committee still does not find the Government's response wholly satisfactory. We do understand the Bill is to be made on an England and Wales basis, but the memorandum is about circumstances in Wales, and that needed to have been the focus. The explanation as to why matters of competence were not adequately addressed in the memorandum is not wholly persuasive to us.

Now, the Bill was amended in the UK Parliament in July 2021, to provide the Welsh Ministers with the regulation-making powers I've previously referred to. The Minister did respond to questions we raised about these powers on 16 November, but we waited until 26 November to receive, as the other Chair has mentioned, memorandum No. 2 explaining these amendments. This is some four months after the amendments were agreed in the UK Parliament. So, there are two issues to unpick here—the delay in the laying of memorandum No. 2, and as I will come on to, the regulation-making powers that are to be retained by the Secretary of State. So, the delay, for whatever reason, in conveying crucial information to the committee until late in the consent process, has greatly reduced the amount of time we have to effectively scrutinise the Welsh Government's decision to seek consent to legislate by means of a UK Government Bill in a devolved area, which is regrettable, as we think that earlier sight may have helped us and the Government. 

Turning now to the issue of the regulation-making powers delegated to Welsh Ministers, while most of them were extended to them in July, some were retained by the Secretary of State. The Minister's explanation for this approach did not convince the committee, who will argue that the Welsh Ministers should be provided with all the regulation-making powers in devolved areas, and not retained by the Secretary of State, even with the Minister's reasoning that they may be exercising frequently, or because of an expectation that policy would not diverge between Wales and England. Providing the Welsh Ministers with all the powers would ensure that all regulations relating to leasehold reform, as it applies in Wales, will also be bilingual and subject to scrutiny by the Senedd. It will also avoid having some regulations made by Welsh Ministers, and some by the Secretary of State, which, again, does not make Welsh law more accessible. 

We also considered that the Welsh Ministers should have control over the commencement of the leasehold reform provisions for Wales following Royal Assent. Such an approach would not prevent the same provisions being commenced in Wales at the same time as they are commenced in England; it would simply mean that the executive power and the scrutiny rested here in Wales. We therefore recommended that before seeking the Senedd's consent for the Bill, the Minister should ensure that it is amended to ensure that the Welsh Ministers have all the regulation-making powers in devolved areas. And we still find it hard to understand why this recommendation has not been accepted. Perhaps it would have been, we would suggest, if there was a more timely laying of memorandum No. 2, and a chance to act earlier in response to committee recommendations laid earlier subsequently. 

So, the committee considers that permitting the Secretary of State to make regulations in a devolved area is an unwelcome development, and it's one that potentially sets a troubling precedent. Because in so doing, the Welsh Ministers have not provided themselves with safeguards should the Secretary of State, either now or in the future, make regulations with which the Welsh Government do not agree.

Now, as we keep highlighting, and as the Minister appeared to acknowledge in evidence to the Local Government and Housing Committee, using a UK Government Bill to deliver legislation in a devolved area provides less opportunity for detailed scrutiny than using a Bill introduced into the Senedd. Members of the Senedd cannot, for example, engage with stakeholders and table amendments to test, challenge and influence the Welsh Ministers—this is a key tool of scrutiny. And moreover, fully protecting Welsh needs and interests through legislation is the function of the Senedd in devolved areas, rather than the Minister or her officials through inter-governmental relations.

And finally, Llywydd, we recommended that the Minister should explain how the approach adopted by the Welsh Government is consistent with its own principles for using UK Bills to legislate. Whilst the Minister did provide an explanation—and we thank her for that—her response raises further issues surrounding these principles, which our committee will look to examine further next year. Diolch yn fawr iawn.