HC Deb 28 January 1991 vol 184 cc407-8W
Mr. Morgan

To ask the Secretary of State for Wales when he expects to make a statement on the housing association consultancy and advisory service report into the causes of the collapse of the Corlan housing association.

Mr. Nicholas Bennett

I refer the hon. Gentleman to the answer I gave him on 17 December.

Mr. Morgan

To ask the Secretary of State for Wales (1) if he will discuss with the chairman of Tai Cymru the housing association consultancy and advisory service report into the collapse of the Corlan housing association and Tai Cymru's approval under section 9 of the Housing Act 1980 of Corlan's acquisition of land from Helical Bar Ltd. in 1988–89;

(2) if he will discuss with the chairman of Cardiff Bay development corporation his role in the financial collapse of the Corlan housing association.

Mr. Nicholas Bennett

I have not discussed these matters with the chairmen and I assume that the hon. Gentleman is not seeking to ascribe responsibility for the financial collapse of Corlan to the chairman of the CBDC. The Department will naturally be consulting Housing for Wales and Cardiff Bay development corporation before we make a statement.

Mr. Morgan

To ask the Secretary of State for Wales (1) whether he has issued any new guidelines to Tai Cymru on the method of monitoring land acquisitions and disposals by Welsh housing associations under section 9 of the Housing Act 1980;

(2) what representations he has had from housing associations regarding the system of monitoring by Tai Cymru of land acquisitions and disposals in Wales under section 9 of the Housing Act 1980;

(3) if he has discussed with the chairman of Tai Cymru the reasons for its approval under section 9 of the acquisition of land by Corlan housing association from Helical Bar Ltd., in 1988–89;

(4) what consultations he has had with the chairman of Tai Cymru regarding the court injunction it applied for against the HTV Wales "This Week" programme on the collapse of the Corlan housing association.

Mr. Nicholas Bennett

I have had no such discussions. Housing associations do not require the consent of Housing for Wales to acquire land where they do so without the benefit of housing association grant. Section 9 of the Housing Act 1980 refers to a secure tenant's right to mortgage under the right-to-buy provisions. The hon. Gentleman presumably intends to refer to section 9 of the Housing Associations Act 1985: the consent of Housing for Wales is required to any disposition of land by a registered housing association. Taking out a mortgage on land constitutes a disposition.

I understand that the Corlan housing association entered into a contract to buy the land referred to in November 1989. The association was under no legal obligation to seek Housing for Wales's approval of this acquisition and did not do so. At the end of January 1990 the association applied to Housing for Wales for section 9 consent to take out a mortgage on the land it had already purchased.

I have received no representations from housing associations relating to the granting of consents by Housing for Wales for the disposition of land under section 9 of the Housing Associations Act 1985. In May 1990 Housing for Wales substantially revised its internal procedures for handling those applications for section 9 consent that do not form part of an application for housing association grant. No new guidelines have been issued to Housing for Wales in this matter. As to the future, I refer the hon. Gentleman to the reply I gave him on 17 December.

Housing for Wales was not a party to the injunction to which the hon. Gentleman refers.

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