Localism Bill

My Lords, Amendment 145 seeks to place a time limit on how long a community interest group is given to purchase a community asset. Again, this amendment was tabled before the Minister deposited her paper in the Library. Having read her paper and seen that she is minded to have a window of six months, I imagine she will be falling over herself to accept this amendment. I spoke earlier about the importance of excluding measures from the Bill that might affect the value of property. As I mentioned then, the erosion of property value is far more important to the less well-off, for whom such an asset might be all they have in the world. Uncertainty over the length of time an asset must be held while local interest groups find the necessary cash to make the purchase would very seriously damage the value of any asset. Banks and financial institutions will not lend if the sale of the asset concerned could be delayed for an unknown period. Having a fixed term in the Bill would give the measure of certainty that is needed to enable banks, mortgage companies and other financial institutions to provide the funding for the sale and purchase of the sort of asset that the Bill is aimed at. It is no help that the time available can be altered by regulation by the Secretary of State. The Minister, when responding to my Amendment 134 earlier, commented that regulation would come before Parliament, but in practical terms this is a formality. In no way does it have the strength of having to introduce primary legislation. Who knows what some future Secretary of State might decide is an appropriate length of time? I have the utmost confidence in my right honourable friend the present Secretary of State not to do something unreasonable, but he will not be in that position for ever and it is important that the Bill does all it can to avoid creating doubts over the value of assets included in the register. Mortgages and other forms of long-term finance usually extend over the life of more than one Government. The protection given by having a maximum period of six months for a community interest group to raise finance is essential if property values are not to be badly damaged by unreasonably hampering the ability of owners to sell their possessions. There is an argument that the Human Rights Act would prevent a community interest group having an unreasonable length of time to find funding, but this would in no way be an adequate substitute for including a time limit in the Bill. I recall that it has been Conservative Party policy to abolish the Human Rights Act.