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Baroness Gardner of Parkes: My Lords, I thank the Minister for his reply, which is not quite as miserable as I had feared. However, it was still not too good. The noble Lord may say that we are pessimistic. Generally I look upon myself as an optimist, but not in this context. I believe that commonhold is most valuable. I have lived with it, experienced it and seen how good it is. However, it will take a little time to convince developers in this country that that is so.
In Committee, the noble Lord, Lord Selsdon, said that the Government would do things via an incentive. I remember very clearly the time when incentives--probably far too many--were given for building hotel rooms in London. Suddenly, all developers decided
that nothing would be nicer than to build many more hotel rooms. Therefore, even a slight tweak on the incentive side may help to bring in commonhold.I fear that unless something such as an incentive is forthcoming, as we have said today, the provision will apply more to new build than to anything else. The point has been raised again and again that it will be difficult to convert existing leaseholds. Therefore, we are talking about new build and I believe that the Government should consider seriously some form of incentive. Meanwhile, I thank the Minister for his reply, and I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Schedule 5 [Commonhold: consequential amendments]:
Lord Bach moved Amendment No. 205:
- Page 76, line 23, at end insert--
. At the end of section 84 of the Insolvency Act 1986 (voluntary winding-up) there shall be added--
"(4) This section has effect subject to section (Winding-up resolution) of the Commonhold and Leasehold Reform Act 2001."
On Question, amendment agreed to.
Lord Bach moved Amendment No. 206:
Page 76, line 46, at end insert--
. After section 94(1)(b) of the Housing Act 1996 (provision of advice) there shall be added--
"or
(c) any aspect of the law of commonhold land, so far as relating to residential matters."").
The noble Lord said: My Lords, on the subject of incentives, we believe that this government amendment provides a small but important incentive. Section 94 of the Housing Act 1996 made provision for an independent advisory service. That led to the recreation on a new and permanent basis of the Leasehold Enfranchisement Advisory Service, known as LEASE. It began life in January 1994 and was partly funded by government and partly by the private sector. The remit of LEASE, which has been extended over the years, covers not only enfranchisement issues but also aspects of the law of landlord and tenant as it relates to residential tenancies more generally.
Your Lordships will know that my noble friend Lord Richard is the very distinguished chairman of LEASE. Over a long period, its officers have been most helpful in the preparation of this Bill. We are told that they are already being approached for advice about commonhold, despite it being at an early stage. I hope that that encourages some noble Lords. There appears to be no advantage in reinventing a wheel when the one in existence works as well as does LEASE. Therefore, we are pleased to propose this amendment in order to recognise the operation of the real world.
The amendment will add to Section 94 of the Housing Act 1996, extending the scope of Section 94(1) so that it covers the provision by LEASE of
We are very conscious of the comments that the noble Lord, Lord Selsdon, made in Committee and of those made today by the noble Baroness, Lady Gardner of Parkes, about the need to sell, if I may use that expression, commonhold. We are actively thinking of ways in which to do that. The amendment is a small but important measure along the way. I beg to move.
Baroness Maddock: My Lords, I am happy to support the amendment. We are being positive towards the end of our deliberations!
During the passage of the Housing Act 1996 I had something to do with these provisions. It would be remiss of me if I did not say how glad I was about the proposal. It is important for people to get proper advice. On previous occasions we have discussed the resources that may be available. I hope that the Government will ensure that there are sufficient resources to provide such advice. That issue came up in 1996 and it has arisen during the passage of this Bill.
On Question, amendment agreed to.
Lord Kingsland moved Amendment No. 207:
The noble Lord said: My Lords, the amendment qualifies the duty to use the proceeds of insurance for rebuilding or reinstating, and it would apply only when that is practicable. As noble Lords are aware, in some cases it is not practicable to build or reinstate. In such circumstances, an absolute duty to use the funds for that purpose could present an obstacle. I beg to move.
Lord Bach: My Lords, the amendment would add to the clause that defines a duty to ensure by comprehending the use of the proceeds of insurance for the purpose of rebuilding or reinstating the qualification, where practicable. That is an example of attempting to qualify in an unquantifiable way a fairly straightforward requirement in the Bill. As such, I am afraid that we cannot accept it.
Lord Kingsland: My Lords, I hear what the Minister says. It may not be possible to reinstate a destroyed property; my point is as simple as that. Has the Minister nothing to add to his observations?
Lord Bach: My Lords, I add--it is only courteous to do so--that I appreciate that my reply was very short and that we shall of course consider what the noble Lord said.
Baroness Gardner of Parkes: My Lords, before the Minister concludes, what would happen if the commonhold had fallen off the edge of a cliff? That has happened recently.
Lord Bach: Goodness, my Lords! I have been rather taken by surprise by the concept of a commonhold falling off the edge of a cliff. I know that that happens--the matter was raised in Committee. I need a bit of time to consider my response.
Lord Kingsland: My Lords, we have been talking about flying freeholds this afternoon; it is but a short step to a flying commonhold.
In the circumstances, it would be prudent if I beg leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 67 [Index of defined expressions]:
Lord Bach moved Amendments Nos. 208 to 210:
On Question, amendments agreed to.
Lord Bach: My Lords, although I know that it will be of some upset to quite a number of noble Lords, I beg to move that consideration on Report be now adjourned.
Moved accordingly, and, on Question, Motion agreed to.
The Examiner's certificate that the further Standing Orders had been complied with was ordered to lie on the Table and the Bill was committed to an Unopposed Bill Committee.
Page 28, line 15, after ("reinstating") insert ("where practicable").
Page 28, line 31, at end insert--
("Declaration of solvency
Section (Winding-up resolution)")
Page 29, line 8, at end insert--
("Termination-statement resolution
Section (Winding-up resolution)")
Page 29, line 12, leave out ("41") and insert ("(Winding-up resolution)").
House adjourned for the Easter Recess at a quarter before four o'clock until Monday, 23rd April.
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