Localism Bill

That is as it stands. Amendment 136B proposes restricting those who may be specified in regulations as eligible to make community nominations. The majority of responses in the consultation which has just closed agreed with our initial proposal for groups and individuals to be eligible to make nominations. However, a large number of respondents experienced serious concerns about the risk of individuals—a point which has been made again today—and, therefore, we are sympathetic to Amendment 136B. We shall look at that issue further before Report. We will have nearly the whole Bill to come back to on Report. Amendment 136BZA tends to assume that the term ““person”” in the Bill refers to an individual and has been brought forward alongside the earlier Amendment 136A. In fact, ““person”” is a legal term which can refer to either an individual or group of individuals forming an unincorporated body or an incorporated body such as a company. So adding ““persons”” does not add materially to the scope of the power to make regulations that define who can make community nominations. I shall consider whether it is sufficient for the legislation because sometimes legal definitions are totally misunderstood. It may perhaps be helpful if we consider whether it should be ““person”” or ““persons””. Amendment 126C would add detail to those who may be specified in regulations as being able to make a community nomination. The noble Lord, Lord Greaves, mentioned two categories: first, those with a particular interest, disability or—the amendment states ““advantage””, but I presume it means ““disadvantage—and, secondly, people or bodies with a common right to use land because they own or occupy neighbouring property. We do not consider it necessary to specify either category. While we fully intend for the community rights to buy to be inclusive, we do not want to be too prescriptive on the kinds of organisations eligible to list land. It will be a broad list anyway and we would rather not have specific organisations on the face of the Bill. Amendment 136BZC would add the local authority to the list of those eligible to make community nominations. We are not sure about the local authority being able to make nominations to itself because, effectively, it would have to go through the process and would have to be the promoter, the decision-maker and the final arbiter. We think it is for local community associations to make the bid and not the local authority. The tension we are talking about is better served by the existing provisions in Clause 76(3)(b), which enables regulations to be made that specify that local authorities can list assets on their own initiative, thereby avoiding pointless bureaucracy. So there is a provision there that local authorities can do this but not that they have to go through the nomination process; they can list of their own will. We have already made it clear that we intend to include this in regulations. Amendment 139A would require a local authority, when considering a community nomination, to assess whether the nominator has the intention and the capacity to be treated as a potential bidder to buy the asset. This would make the consideration of a nomination much more burdensome and bureaucratic—a point which has been heavily laid around us today—for the local authority, requiring it to consider the merits of the nominator in addition to whether or not the asset is of community value. Such a requirement might be more appropriate where a right of first refusal is provided to the nominator subsequently. However, in a situation where the nominator will still need to compete with other potential buyers to take on the asset, such a requirement is, in our view, disproportionate because if they cannot raise the money and they have not got the financial security, they are not going to be able to bid. With those explanations, I hope the noble Baroness will withdraw the amendment.