¶ Legislative Scrutiny and Oversight Conflicts
Yeah. Um so we'll if we do the second point first, actually that was discussed and debated at the hearing yeah on Tuesday. strange procedure uh from my point of view, just I'm trying to understand how legislation gets passed is that the first reading of the bill, so it's the f the first attempt at getting it right went before the whole of the Holyrood Parliament. Right.
The second one goes to this um reviewing committee um which oversees um local government issues and so on, and they have been doing incredible work. Right on it. And uh I have had to give evidence several times at Holyrood. Um, indeed the the committee actually decided that they would leave Holyrood and come and look at the building, so they came and had one of their committee meetings here in our home, um, and then walked around the building. So they've they've been thorough.
Yep. And they have not been a rubber stamp on um the suggestions coming from government. So the issue of um essentially um people marking their own homework has been pretty thoroughly discussed. Yeah. Uh and one of the um an architect, uh a leading architect giving evidence at Holyrood actually when I was there, actually referred to this, you know, marking your own homework. Yeah. Um and most owners.
No, I perhaps I shouldn't say most enders. I speak for myself and people I've spoken with um are very concerned about that. and one of the MSPs from uh Glasgow actually raised this point at the Holyrood Committee. uh where the second uh stage was dealt with on Tuesday and dealt and and raised it quite firmly. uh seeking to change the bill as it stands. To make sure that this is actually overseen more tightly and dealt with perhaps slightly um
Oh yeah, with with with regulation in a perhaps tighter way than is currently envisaged. And it is a real concern. Uh why would you trust them? Now yeah, I'm not trying to slag anyone off particularly, but it's just, you know, as you say, uh you immediately jump jumped on that, surely there's a conflict of interest here.
And if you are in a commercial situation where you are working for a company, And yes, you are you've got professional standards and you have have been asked and it they've got to be people who qualify in in a specified way. and you've got to um work with integrity. Uh but there is a huge conflict when, you know Joe Blogs Limited is paying your your salary. Do I mention this? This is going to cost a lot of money. Can we get away with doing less?
Those are the sort of thoughts that go through people's minds and obviously through yours. And I think to say it's not resolved. Whilst the issue was raised, the MSP who raised it agreed to postpone it. until the final hearing and the housing minister agreed to hear and listen further. Um and we'll have to see what they come up with. So we haven't got a long time scale here. This is about another month before it comes up. For the final reading.
So it's pretty And there are very substantial issues in here.
¶ Orphan Buildings and Remediation Funding
Your first question about um where there are no longer uh the companies don't exist and they're described as orphan buildings. So as with the um example in uh Aberdeen, the monies that came from Westminster and there are further monies to come uh and will all be used in the process. of the single building assessment, but they were used to pay for the actual work. Yep. And that money has been used as well.
in other uh developments, uh there have been some uh at least one development where uh the assessment raised such serious issues that there had to be a decision as to whether or not they should evacuate the building. Wow. This I mean, you can imagine a high rise building in Glasgow with a lot of people in it. That's one that's one big um effort to undertake. So they actually put in and paid for a waking watch.
And that to that money was used from that fund. So the idea is that where there are orphan buildings and the builders no longer exist uh uh then that money would go to meet that. And there is also uh to be a levy
¶ Corporate Structures and Limited Liability
for that is uh to be uh is still being worked out as to how the building um companies will pay for that. So that's in the current legislation. The thing is that where some uh and it It's quite common and m as you know my my uh past history was that I was a liquidator and receiver. So it was quite common that companies were set up uh as a single um development company. So you know, uh you would have one for this particular building.
And then you'd have another for another building. That wasn't particularly unusual um and it wasn't that it wasn't meant necessarily to be deceptive, it was a mechanism for what the way in which some companies operated. And when You can understand you can understand that a certain point of view as well.'Cause if if you've got a building that's maybe not going too well, then the the rest of the you know, they can keep it separate. Yeah, you can understand why they were doing it.
That's that's yeah, that's part of the reason. And so uh and aga again when the building is when the um development has been completed, that company no longer has a purpose. It was for that purpose. Therefore you put it to bed and and you know, get struck off, wound up and um and off they go. Now the problem is where you have groups of companies. um and I'm aware of a case where there was just such a um development and the single purpose
company that was set up um in in fact went into administration. It's quite a huge block. So for example in w in the tallest stair in that building he was meant to have two lifts. So but because they ran out of money they only got one. Uh and you know, they had to get someone else in to finish everything off and it was a mess.
And that company was in administration. But it was part of a group of companies which still exists, still runs, and are currently bidding, uh, and proposing to do another development nearby. In the same area. Now this is where it gets a bit muddy, and the Scottish Government are very aware of this, that that really just isn't right.
So again a again speaking with my insolvency practitioner hat on, the whole thing is that the word limited or public limited company at the end of a the title of a company means that If there if there are problems. The people who are owed money can only look to that. the assets of that company to meet those bills. So it's ring fencing everything.