Richard Collins questions purpose of planned statutory governance reviews
The interim chief executive of the Royal Institution of Chartered Surveyors has questioned the purpose of Michael Gove鈥檚 proposed new law to monitor the body鈥檚 governance.
Richard Collins, speaking to the Levelling Up, Housing & Communities committee of MPs yesterday, said he would continue talking to ministers to 鈥渦nderstand better the reasons鈥 behind their desire to take statutory powers to review RICS.
Gove last month announced a plan to commission statutory governance reviews of RICS, with the housing secretary criticising 鈥渢hose in the industry who refuse to work with us in good faith to take a more proportionate approach鈥 to fire safety checks on tower blocks.
Ministers had been frustrated by RICS鈥 decision to maintain its current advice to require EWS1 forms on blocks under 18m in some circumstances.
Collins said: 鈥淩ICS is a Royal Charter body, we鈥檝e got an obligation to act for the public advantage, we don鈥檛 have statutory powers, we鈥檙e not a statutory regulator, our members don鈥檛 have their titles reserved [and] they don鈥檛 have to be a member of RICS to undertake surveying activities.
鈥淲e are wholly funded for our public advantage work by members and in that context I鈥檓 unclear about the purpose of a statutory-based investigation.鈥
Collins admitted that RICS鈥 refusal to change its current fire safety advice, which requires EWS1 forms on some blocks under 18m, 鈥渕ay well have caused some upset鈥.
RICS鈥 decision to not immediately change its guidance last summer was problematic for former housing secretary Robert Jenrick, who announced last July that EWS1 forms, blamed for holding up valuations and house sales, would no longer be required on blocks under 18m.
Collins said: 鈥淚t would be fair to say at that time, we and actually UK finance and others took a different view to the then secretary of state.鈥
In December, when RICS completed a five-month review and confirmed its decision not to change its advice, the DLHUC issued a statement accusing RICS of 鈥榣acking ambition鈥 to solve the problem. RICS said its decision was in the public interest as purchasers might otherwise be passed on costs unwittingly in some circumstances.
鈥淲e did review all our guidance on EWS1 and consulted widely but we took a different view, the industry took a different view and that may well have caused some upset,鈥 Collins said.
Gove also however accepted last month that EWS1 forms will still be required on some buildings and suggested discussions with RICS have been more positive lately. He said: 鈥淭here have been all sorts of difficulties with that organisation in the past, but I am now hopeful that we are on a more positive footing.鈥
The controversy also comes after RICS鈥檚 chief executive and president both last year resigned in the wake of a separate governance scandal at the body.
The RICS has commissioned Lord Michael Bichard to review its purpose and strategy.
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