Housing and Regeneration Bill

As the noble Lord, Lord Greaves, has anticipated, the explanation in this case is similar to the previous one. The ability to establish a company or to acquire an interest in one is subject to the Secretary of State’s consent. That ability is required to enable the agency to operate more effectively in implementing a policy or innovating activity through the medium of a company to which it, central government or other agencies could give financial assistance. It would also enable and allow the agency to participate indirectly in joint ventures if that was the most effective method of delivering its objectives. Again, these powers are modelled on the Urban Regeneration Agency powers. The ability of the agency to establish or acquire an interest in a company will be important in allowing the agency to operate as an equal partner in its dealings with the private sector when undertaking housing and regeneration work. The company would operate as a separate entity. As I am sure the noble Lord will know from his work in local government, such special purpose vehicles can often provide the most effective route for implementing commercial schemes. The greater flexibility and separate accountability that this allows are very useful in enabling effective negotiations with private sector partners. Before the agency can establish a company or acquire an interest it will need the Secretary of State’s consent and the agency will have to demonstrate why a company or an interest in a company is needed. The functions that the company will have will relate directly to its objects. For example, the current arrangements under which the Urban Regeneration Agency works as English Partnerships have enabled it to carry on a business by virtue of Section 160(1)(g) of the Leasehold Reform, Housing and Development Act 1993. So this is not a new power; it was there previously. Using these powers, English Partnerships currently runs joint ventures including the English Cities Fund, the Priority Sites Limited and Network Space. English Partnerships is joining with the Housing Corporation to form one single entity and these powers will be required for that work to continue. The joint ventures that I have described have enabled English Partnerships to carry out its work. The power is there for that practical reason and the need to create special vehicles to fulfil the agency’s objectives in the future. Clause 32 agreed to. Clause 33 [Community services]: