asked the Secretary of State for the Environment what discussions he has had with the local authority associations about the proposals on value for money contained in the Green Paper on Local Government Finance, Cmnd. Paper No. 6813; and if he will make a statement.

I have discussed the proposals in Chapter 7 of the Green Paper on Local Government Finance (Cmnd. 6813) with the representatives of the local authority associations, and with their co-operation my right hon. and learned Friend the Secretary of State for Wales and I propose to set up a body, to be known as the Advisory Committee on Local Government Audit, with the following terms of reference:

"(i) to consider the annual report of the Chief Inspector of Audit and any questions arising from it which are of general public interest or concern, whether in the field of value for money or otherwise; and to make general recommendations to local authorities and to central government as it thinks fit; and

(ii) to invite information and submissions on comparative and other value for money studies from local authorities and their Associations and from other agencies concerned; and in the light of this and other information to advise on the need for such studies and arrangements for carrying them out."

My right hon. and learned Friend and I shall appoint an independent chairman, three independent members and five members from nominees provided by the local authority associations and the GLC. It is envisaged that the Comptroller and Auditor General will normally participate in the meetings, although statutorily he cannot be appointed a member of such a committee. All members will be appointed for an initial period of three years.The committee will make its reports, which will be published, to the Consultative Council on Local Government Finance.