COMMITTEE FOR FINANCE AND PERSONNEL
MINUTES OF PROCEEDINGS
THIRTIETH Meeting
THURSDAY, 16 NOVEMBER 2000
COMMITTEE ROOM 135, PARLIAMENT BUILDINGS
1. Minutes of Proceedings
2. Matters Arising
3. Consider Any Bills
4. Government Resources and Accounts Bill (NIA Bill 6/00)
5. Consider Any Statutory Rules
6. October Monitoring Round
7. Correspondence
8. Any Other Business
9. Date of Next Meeting
Present: Mr Francie Molloy (Chairman)
Mr James Leslie (Deputy Chairman)
Mr Seamus Close
Mr Derek Hussey
Mr Alex Maskey
Mr Peter Robinson
Peter Weir
Apologies: Apologies were received from Mr Billy Bell.
In attendence: Mr Martin Wilson (Committee Clerk)
Mr Peter Hughes (Assistant Clerk)
Ms Sharon Bowman (Administrative Support)
The Chairman declared the meeting open at 2.20 p.m. The meeting was held in public session.
1. Minutes of Proceedings
1.1 Resolved: The Committee agreed the Minutes of Proceedings for 7 November 2000 subject to an amendment by Mr Close that 'Matters arising - Committee Resources' paragraph 2.2, line 4, should read 'that no staffing resources were made available.'.
top2. Matters arising:
2.1 Extension of Committee Stage of Bills
2.1.1 The Committee deliberated on the Committee's legislative programme and the extensions required for the Government Resources and Accounts Bill, Defective Premises (Landlords' Liability) Bill and the Family Law Bill.
top3. Consider any Bills:
Ground Rents Bill (NIA Bill 6/99) Committee Stage (cont'd)
3.1 The Committee deliberated on the remaining Clauses and Schedules of the Ground Rents Bill. Officials from the Office of Law Reform attended and were questioned by the Committee.
3.2 The Committee considered Clause 3, with particular reference to the definition of a 'flat' and common parts, and an amendment proposed by the Office of Law Reform to protect the position of housing associations on the redemption of ground rents.
3.3 Motion: That Clause 3 of the Ground Rents Bill (NIA Bill 6/99) be amended as follows:
Clause 3, page 3, line 42, at end insert¾
'(9) Section 2 does not apply to the conveyance or transfer of a dwelling house to¾
(a) the Northern Ireland Co-ownership Housing Association; or
(b)any other housing association (within the meaning of the Housing (Northern Ireland) Order 1992 (NI 15)) specified by an order made by the Department for Social Development subject to negative resolution.'
[Mr Francie Molloy]
3.4 The question being put, the motion was carried without division.
3.5 Resolved: The Committee agreed to recommend that Clause 3, as amended, stand part of the Bill.
3.6 The Committee considered Clause 6, with particular reference to a simpler procedure to enable rent owners to claim redemption money owed to them and an amendment proposed by the Office of Law Reform to make a technical amendment to the Clause.
3.7 Motion: That Clause 6 of the Ground Rents Bill (NIA Bill 6/99) be amended as follows:
Clause 6, page 5, line 33, leave out 'issue out of the Consolidated Fund and'
[Mr Francie Molloy]
3.8 Resolved: The Committee agreed to recommend that Clause 6, as amended, stand part of the Bill.
Mr Hussey attended at 2.36 p.m.
3.9 The Committee considered Clause 15, with particular reference to mortgages and redemption of ground rents. The Office of Law Reform proposed two amendments to the Clause.
3.10 Motion: That Clause 15 of the Ground Rents Bill (NIA Bill 6/99) be amended as follows:
Clause 15, page 10, line 24, at end add 'and any provision in the instrument providing for an estate acquired by the mortgagor to be held in trust for the mortgagee or appointing the mortgagee as the mortgagor's attorney in relation to such estate applies to the fee simple.'
Clause 15, page 10, line 38, leave out subsection (3)
[Mr Francie Molloy]
3.11 The question being put, the motion was carried without division.
3.12 Resolved: The Committee agreed to recommend that Clause 15, as amended, stand part of the Bill.
3.13 The Committee considered Clause 16, with particular reference to covenants and the position of the Northern Ireland Housing Executive, party walls and the definition of neighbours. The Office of Law Reform proposed three amendments to the Clause.
3.14 Motion: That Clause 16 of the Ground Rents Bill (NIA Bill 6/99) be amended as follows:
Clause 16, page 12, line 6, leave out from 'his' to end of line 11 and insert 'other participants in a relevant building scheme immediately before the redemption of the ground rent by virtue of that scheme.'
Clause 16, page 12, line 11, at end insert¾
'(j) any covenant, not falling within any of the preceding paragraphs, which is contained in a lease granted by the Northern Ireland Housing Executive before 10th January 2000 and relates¾
(i) to a district heating supply provided by the Executive; or
(ii) to the repayment to the Executive of any discount of part of the purchase price under a house sales scheme made under the Housing (Northern Ireland) Order 1983 (NI 15).'
Clause 16, page 12, line 26, leave out from '(2)(g)' to the end of 28 and insert '(2)(i)¾
"building scheme" means a scheme (express or implied) under which land (whether freehold or leasehold) is divided into two or more parcels subject to obligations which are reciprocally enforceable (whether at law or in equity) between owners of the parcels; and
"relevant building scheme", in relation to any land, means a building scheme which includes the land or which is taken to subsist in respect of the land by virtue of section 17(6).'
[Mr Francie Molloy]
3.15 The question being put, the motion was carried without division.
3.16 Resolved: The Committee agreed to recommend that Clause 16, as amended, stand part of the Bill.
3.17 The Committee considered Clause 17, with particular reference to the enforcement of covenants. The Office of Law Reform proposed three amendments to the Clause, the first of which referred to successors in title, the second and third were consequential to the changes in Clause 16.
3.18 Motion: That Clause 16 of the Ground Rents Bill (NIA Bill 6/99) be amended as follows:
Clause 17, page 12, line 40, leave out 'or (h)' and insert ', (h) or (j)'
Clause 17, page 13, line 17, after 'successors' insert 'in title'
Clause 17, page 13, line 37, leave out 'same meaning as in section 16(2)(i)' and insert 'meaning given in section 16(7)'
[Mr Francie Molloy]
3.19 The question being put, the motion was carried without division.
3.20 Resolved: The Committee agreed to recommend that Clause 17, as amended, stand part of the Bill.
3.21 The Committee considered Schedule 1, with particular reference to the redemption money provision for an increase of ground rent. The Office of Law Reform proposed three amendments to the Schedule.
3.22 Motion: That Schedule 1 of the Ground Rents Bill (NIA Bill 6/99) be amended as follows:
Schedule 1, page 22, line 36, leave out 'is more than 12 years after the application date' and insert 'falls after the expiration of the relevant period'
Schedule 1, page 23, line 1, leave out from 'is 12 years' to the end of line 9 and insert 'falls within the relevant period, the yearly amount of the ground rent shall be determined in such manner as may be specified in an order under paragraph 2.
(4) In this paragraph "the relevant period", in relation to a ground rent, means the period commencing on the application date and consisting of the number of years fixed by an order under paragraph 2 as the number of years purchase applicable to ground rents (or, as the case may be, applicable to ground rents of the same class or description as that ground rent).'
[Mr Francie Molloy]
3.23 The question being put, the motion was carried without division.
3.24 Resolved: The Committee agreed to recommend that Schedule 1, as amended, stand part of the Bill.
3.25 The Committee considered Schedule 2, with particular reference to amendment of Article 35 of the Property (Northern Ireland) Order 1997. The Office of Law Reform proposed an amendment to the Schedule.
3.26 Motion: That Schedule 2 of the Ground Rents Bill (NIA Bill 6/99) be amended as follows:
Schedule 2, page 23, line 34 after '35(8)' insert 'or 35A(7)'
Schedule 2, page 24, line 12, leave out '(7) to (10)' and insert '(7), (8) and (10)'
Schedule 2, page 24, line 18, at end insert¾
'( ) After Article 35 insert¾
"Redemption of nominal ground rent
35A.¾ (1) Subject to paragraph (2), this Article applies where the rent payable under a fee farm grant is a nominal rent.
(2) This Article does not apply at a time when ¾
(a) the land is used wholly for business purposes; or
(b) the rent-payer is prohibited by any term of his title from using the land otherwise than wholly for business purposes;
but land is not prevented from being used wholly for business purposes by reason only of the fact that part of it is occupied as a dwelling by a person who is required or permitted to reside there in consequence of his employment or of holding an office.
(3) The rent-payer may by deed ("the deed of declaration") declare to the effect that the ground rent is discharged and may, in accordance with rules, make application to the Registrar for the purpose mentioned in paragraph (4)(a) or (b).
(4) On an application under paragraph (3)¾
(a) if the land is registered land, the deed of declaration is sufficient authority for the Registrar (subject to compliance with rules)¾
(i) to discharge any burden such as is mentioned in paragraph 2 of Part I of Schedule 6 to the Land Registration Act; and
(ii) to make such alteration in the class of title with which the land is registered as appears to him to be appropriate;
(b) if the land is not registered, the Registrar may register the rent-payer's title with such class of title as appears to him to be appropriate (and until the rent-payer's title to the land is so registered , the deed of declaration has no effect);
(c) in either case, the deed of declaration is sufficient authority (notwithstanding any caution or inhibition) for the Registrar to make in the register such consequential entries, changes, cancellations or notes as appear to him to be appropriate;
(5) Except where the Registrar is satisfied that the land was subject to no or nominal superior rent on the date of execution of the deed of declaration, the Registrar shall enter on the register a note to the effect that the fee simple estate is subject to a rentcharge of so much (if any) of any superior rent as would have been redeemed by virtue of Article 11(1) of the Ground Rents Act (Northern Ireland) 2001 if a ground rent to which the land was subject had been redeemed under section 1 of that Act on that date; and such a note may be discharged in accordance with rules, and it is sufficient to satisfy the Registrar as to the matter mentioned at the beginning of this paragraph that he is furnished by a solicitor with a certificate to that effect.
(6) Subject to paragraphs (4), (5) and (7), the deed of declaration operates by virtue of this paragraph to discharge the estate of the rent payer from all estates in the land of the rent-owner and any superior owners to the extent that those estates carry entitlement to ground rent or a superior rent or relate to matters connected with the rent and to that extent those estates are extinguished.
(7) Where a ground rent is discharged under this Article, section 13(8) (read with subsection (10)) and sections 15(2), 16 and 17 of the Ground Rents Act (Northern Ireland) 2001 apply in relation to the land as if the ground rent had been redeemed under that Act; and, accordingly, for the purposes of this Article those sections shall be read with the necessary modifications.
(8) For the purposes of paragraph (6) matters are connected with rent if they are concerned with the amount of the rent or its payment or recovery or are otherwise concerned (directly or indirectly) with the rent.
(9) In this Article "nominal rent" has the same meaning as in Article 35.'
[Mr Francie Molloy]
3.27 The question being put, the motion was carried without division.
3.28 Resolved: The Committee agreed to recommend that Schedule 2, as amended, stand part of the Bill.
3.29 The Committee considered Schedule 3 with reference to amendment to the Schedule of Repeals, The Office of Law Reform proposed an amendment to the Schedule.
3.30 Motion: That Schedule 3 of the Ground Rents Bill (NIA Bill 6/99) be amended as follows:
Schedule 3, page 24, line 29, at end insert 'and in the definitions of "rent-owner" and "rent-payer" the words ", without prejudice to Article 32,"'
Schedule 3, page 24, line 32, at end insert 'Article 3(2)(a).'
[Mr Francie Molloy]
3.31 The question being put, the motion was carried without division.
3.32 Resolved: The Committee agreed to recommend that Schedule 3, as amended, stand part of the Bill.
top4. Government Resources and Accounts Bill (NIA Bill 6/00)
4.1 The Committee deliberated on Clauses 1 to 5 of the Government Resources and Accounts Bill. The Committee was advised by Eileen Regan and Malachy Finnegan, Research Services.
4.2 Resolved: That questions raised by members be put to the Department of Finance and Personnel.
top5. Consider any Statutory Rules:
5.1 Salaries (Assembly Ombudsman and Commissioner for Complaints) Order (NI) 2000
5.1.1 The Committee deliberated on notification from the Department of Finance and Personnel of its intention to make two related Statutory Rules under powers conferred by Articles 39A and 45 (1) of the Rates (Northern Ireland) Order 1997. And on Statutory Rule 292 - Salaries (Assembly Ombudsman and Commissioner for Complaints) Order (NI) 2000.
5.1.2 Resolved: That the Committee for Finance and Personnel noted the intention to make Statutory Rules under powers conferred by Articles 39A and 45 (1) of the Rates (Northern Ireland) Order 1997 and has considered the Salaries (Assembly Ombudsman and Commissioner for Complaints) Order (NI) 2000 and has no objection to the Order.
top6. October Monitoring Round
6.1 Officials from the Department of Finance and Personnel briefed the Committee on the October Monitoring Round and the Statement to be made by the Minister of Finance and Personnel on Monday 20 November. Reference was made to the extra monies made available as a result of increases in receipts, the Regional Rate. Concern was raised at the lack of consultation with the Committee when the Department had processed departmental bids. Dr McCormick explained that urgency was required in processing bids and that he was not aware of any departments involving their respective Statutory Committee.
top7. Correspondence
7.1 The tabled correspondence was noted.
top8. Any other business:
8.1 There was no other business.
top9. Date of next meeting
9.1 Resolved: That the Committee would meet on Tuesday, 21 November at 2.00 p.m. in Committee Room 144 to consider the draft Ground Rents Bill Report and the Budget 2001/02 Report and continue scrutiny of the Government Resources and Accounts Bill.
topThe Chairman declared the meeting closed at 4.55 p.m.
FRANCIE MOLLOY
Chairman
7 November 2000/ Menu / 21 November 2000