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Commons Chamber

Volume 995: debated on Tuesday 5 February 1980

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House Of Commons

Tuesday 5 February 1980

The House met at half-past Two o'clock

Prayers

[Mr. SPEAKER in the Chair]

Private Business

British Railways Bill (By Order)

Order for Second Reading read.

To be read a Second time upon Tuesday 19 February.

GREATER LONDON COUNCIL (GENERAL POWERS) (No. 2) BILL ( By Order)

LONDON TRANSPORT (No. 2) BILL ( By Order)

Orders for Second Reading read.

To be read a Second time upon Tuesday 12 February.

Oral Answers To Questions

Oral Answers To Questions

I remind the House that long supplementary questions are unfair to other hon. Members who have questions on the Order Paper.

Education And Science

Expenditure

1.

asked the Secretary of State for Education and Science what representations he has received to date on the effects of financial cuts on education provision.

I have met deputations from all the main teacher unions, the Committee of Vice-Chancellors and Principals of Universities of the United Kingdom and from the TUC. I have also met the Archbishop of Westminster and other Church leaders; and I have received many letters from individuals and representatives of local interests, either direct or through hon. Members.

Will the right hon. and learned Gentleman accept that the widely held view in education circles is that the cuts, in conjunction with the Education (No. 2) Bill, will seriously damage mandatory educational provision? It will devastate the non-mandatory sector and abolish virtually all educational welfare provisions such as school meals. Does the right hon. and learned Gentleman agree that the industrial action that is being taken today by teachers is a reflection of the real concern felt by them, if not by all Conservative Members.

Order. Hon. Members must be patient. That is a short question in North Wales.

The hon. Gentleman will not be surprised to hear that I do not accept a word of what he says. The reductions in expenditure are necessary. I believe that they can be achieved without causing damage in the way that the hon. Gentleman suggests. With regard to his comment about teachers, I hope very much that before they consider taking action of any kind they will consider the effect of that action on the children they teach.

Is my right hon. and learned Friend aware that today in Trafford, because of cuts in education, the National Union of Teachers has decided to take limited strike action, despite the fact that the council was prepared last Friday to make concessions? The education of children in Trafford is suffering. Is there any move that can be made to restore full-time teaching in the schools of Trafford?

It is for the Trafford local education authority to decide the way in which it makes reductions in public expenditure. I repeat that I very much regret any action taken by the National Union of Teachers, or any other teaching body, that will harm the educational opportunities of children.

Will the right hon. and learned Gentleman take advantage of this Question Time to announce what changes he proposes to make to clause 23 of the Education (No. 2) Bill to prevent new impositions on parents? Is he aware that if he does not make substantial changes in this respect he will render denominational choice ineffectual in many schools, impose new impoverishment upon parents who are already demonstrably poor and make it impossible for many parents to afford to send their children to school in rural areas?

No, Sir, I shall not do that at this stage. However, I have made it clear that I shall consider whether it is necessary to put down any amendments on Report. As the hon. Gentleman knows, the Report stage is likely to be taken during the early part of next week. I can add only two other comments. First, it is not the intention of the Government in any way to damage the interests of denominational schools. Secondly, the answer to the hon. Gentleman's comment about poor children is that under our proposals local education authorities have power to remit any charges that they may make in any cases which they think are appropriate.

Since school transport and school meals represent the biggest cuts, what will the Secretary of State say to those authorities which decide not to impose these charges, at least in full measure, especially on country and Catholic children? Will they not have to face more cuts in the classroom as a result?

Yes, I fear that that is so. The Government have made it clear that, in the interests of the economy as a whole, these reductions in expenditure must be made. I hope that a large proportion can be made out of charging for meals and transport, rather than in the classroom. If local education authorities choose to do it in another way, that is a matter for them. But it follows, I accept, that if they are to make the reductions and choose not to do it in that way, inevitably it must have some greater effect on the standard of education.

Will my right hon. and learned Friend take advantage of this opportunity to deny that there is any suggestion of cutting back—still less doing away with—the assisted places scheme? Does he agree that there is a distinction between measures designed to improve the economy and those designed to take advantage of that improvement?

I should like to make it absolutely clear to my hon. Friend that the provisions for the assisted places scheme are in the Education (No. 2) Bill that is going through the House. It is my intention that it should start as proposed, but I have always made it clear that the timing and the extent of its implementation must be left in my hands.

Is the Minister aware that the sale by the Staffordshire county council of the land in Llandudno on which the Blackfriars school for the disabled has its holiday caravan is an absolute disgrace? Will he issue directions to counties not to take the consequences of these cuts out on the disabled?

I am sure that the hon. Gentleman will accept that that is an extremely detailed question, of which I must ask him to give me notice. If he cares to write to me about that matter I shall look into it.

Primary And Secondary School Rolls

2.

asked the Secretary of State for Education and Science what he expects will be the size of reduction in school rolls in 1980–81 for primary and secondary schools, respectively.

Between January 1980 and January 1981 it is expected that in England and Wales primary school rolls will fall by 180,000, or 4 per cent., and secondary school rolls by 40,000, or 1 per cent.

Does my hon. Friend agree that these reductions allow some scope for a reduction in expenditure but also room for an increase in standards, and that most parents are concerned about standards? Will he tell the House what he is doing to improve standards in education?

I accept the two points that my hon. Friend has made. Over the two years 1978–79 and 1980–81 there will be a 4·7 per cent. reduction in pupils, but the reduction in expenditure will be only 3·5 per cent. That should allow more expenditure per pupil. In any case, educational standards are not just a question of money. They are also a question of core curriculum, discipline in the classroom and the way in which examinations are organised.

Is it not correct that in certain areas, such as Leicestershire, the number of pupils on school rolls will increase? If that is so, will the Minister give a direction to Tory councils, such as that of Leicestershire, that they should not dismiss ancillary workers from their primary or secondary schools, thus devastating standards of education in those schools and imposing a burden on those who can bear it least?

In areas such as Leicestershire, which I accept may be faced with increases in population, these increases will be taken into account for rate support grant and facilities will be provided for the authorities there to maintain, and indeed to improve, standards in the schools.

Assisted Places Scheme

3.

asked the Secretary of State for Education and Science if, under the assisted places scheme, he intends that parents who could have afforded the fees at the schools in question should be able to obtain financial assistance.

10.

asked the Secretary of State for Education and Science if it is proposed to have some totally free places under the assisted places scheme; and what test will be applied for the award of such places.

Parental contributions towards the cost of school fees under the assisted places scheme will be means-tested. The means test will set an income threshold up to which full remission will be paid, and an upper limit beyond which no help will be given.

Will my right hon. and learned Friend confirm and emphasise that the scale is such that only those children whose parents cannot afford the full fees will benefit from the scheme?

I am grateful to my hon. Friend. I confirm that the purpose of the scheme is to give certain children whose parents would not otherwise be able to afford the fees the opportunity to benefit from the education provided at the schools which join the scheme.

I welcome my right hon. and learned Friend's reply, but will he give an indication of the level of family income at which parents will no longer be entitled to a free place for their children?

I cannot do that now, but I can tell the House that it is my intention, following the undertaking given by the Under-Secretary, to set out our proposed scale of income later this week so that the House will have knowledge of it before we reach the Report stage of the Bill.

Now that the right hon. and learned Gentleman has announced to the House in a written answer that he has received from schools only half the applications necessary to run the scheme—that is before any sorting out has been done—when will he announce the reduced scale on which the assisted places scheme must now run?

The answer is that the figures given by my hon. Friend the Under-Secretary of State in a written answer yesterday show that to date we have had applications in relation to 10,000 places starting each year. Further applications are still coming in.

In reply to the second part of the hon. Gentleman's question I can only repeat what I said in answer to the first question—that the timing and the extent of the introduction must be a matter for me. Clearly, it is a matter on which I shall inform the House on an appropriate occasion.

Will my right hon. and learned Friend tell the House whether the average cost to the State of a child under the assisted places scheme is likely to be more or less than the cost of keeping that child in a maintained secondary school?

I cannot answer that question exactly at this moment, but in general terms it would be roughly the same.

Does the right hon. and learned Gentleman recall that he asked schools to enter their applications by the end of January? For how long does he intend to extend the date of application? Will it be until he has enough applications to justify the scheme in his terms?

We welcome the withdrawal that is taking place, although it is being done gradually and grudgingly, but will the right hon. and learned Gentleman further reconsider the matter and erase the scheme altogether, to remove both the threat and the insult that the scheme poses towards the maintained sector?

It is right that we asked for replies by 31 January. It is equally right that replies are still coming in. That is not unreasonable, perhaps, in view of the fact that our letter went out shortly before Christmas, on 6 December. Governing boards tend not to meet over the Christmas period. Answers are, therefore, still coming in.

My reply to the second part of the hon. Gentleman's question is that I do not accept that this scheme, any more than the old direct grant scheme, is in any way an insult to the maintained sector of education.

Physically Or Mentally Handicapped Pupils

4.

asked the Secretary of State for Education and Science what guidance he has given, or intends to give, to local education authorities regarding increased or decreased per capita expenditure on physically or mentally handicapped pupils for the financial year 1980–81.

The Government's expenditure plans, as embodied in the rate support grant settlement for 1980–81, assume that, nationally, per capita expenditure on physically or mentally handicapped pupils will be mainatined at about its present level. My Department informed officers of the local authority associations about this assumption last November.

In view of the local authorities' general intention to cut education as a result of Government admonishment, will the hon. Gentleman accept that it is necessary for the Government to indicate clearly to local education authorities that it is not their intention that expenditure should be cut in the case of the most needy and least vocal members of the school community? The Government should put their money where their mouth is and say that they are prepared to fund, if not increase, the support for the mentally and physically handicapped.

I indicated that my Department made this clear last November to the local authority associations. I hope that that will provide some sort of reassurance to the hon. Lady.

It is ultimately for individual local authorities to determine the pattern of their expenditure, but they must take into account the Government's view that standards of provision in special education should be protected at all costs. In recent years expenditure per pupil in special education has consistently risen. The national overall pupil-teacher ratio in maintained special schools now stands at just over 7: 1. The current standards of provision in terms of per capita expenditure are at their best ever level.

As the expenditure on many physically disabled pupils is abysmally low in many areas, is not there a case now for asking for increased expenditure for this small group of people?

The right hon. Gentleman has raised an important point. I hope that he was reassured by the answer that I gave to the hon. Member for Birmingham, Handsworth (Miss Wright). As I said, expenditure has been maintained. Indeed, it has consistently risen over the years, and I have no doubt that local authorities will continue to view this provision with compassion.

Will the Minister tell us what steps are to be taken to ensure that pupils who are physically or mentally handicapped are not discriminated against by the Education (No. 2) Bill? Is he not concerned about the effects of the transport clauses, which will discriminate against mentally and physically handicapped pupils? Unless the Minister is willing to give a specific direction to local authorities and to safeguard the position of those pupils, local authorities will make cuts that will damage their education. Unless the Minister does something, he will be opting out of his responsibilities.

The hon. Lady has gone over an important argument. We rehearsed that argument on and off during 100 hours in Committee and on the Floor of the House. All local authorities, social services and education authorities are aware of their commitments, duties and responsibilities. The Department will keep the matter under constant review and I have no doubt that local authorities will maintain a responsible attitude to these important commitments.

Pupil-Teacher Ratios

5.

asked the Secretary of State for Education and Science what have been the pupil-teacher ratios of maintained schools in Bootle over the last three years; and what are the anticipated ratios for 1980–81 and 1981–82.

Separate figures for Bootle are not available. For Sefton, the local education authority within which Bootle is situated, the overall pupil-teacher ratios for maintained nursery, primary and secondary schools were 20·6 in January 1977, 20·3 in 1978 and 19·6 in 1979. The local authority estimates that the ratio for January 1980 remains unchanged at 19·6. Projections of pupil-teacher ratios for individual local authorities are not made by my Department.

Is the Minister aware that his figures are probably out of date as a result of a secret meeting that took place last night in Sefton? The Conservative councillors of Sefton decided behind closed doors to cut £1·3 million off an already inadequate budget. They have agreed to policies that will directly affect teacher-pupil ratios. Those policies will force 100 teachers to retire prematurely. They are to amalgamate 12 infant and junior schools. They have gone so far as to cut out swimming lessons in an area that incorporates the Leeds and Liverpool canal—the cause of many deaths. They have even decided to close a special school.

I do not see how my figures can be out of date. Those figures were from January 1977. Whatever strange meeting may have been held last night, and whatever canals were closed in that area, I do not see how it can affect the pupil-teacher ratio of three years ago. As soon as we have received official information about the meeting we shall study it with interest to try to understand the situation in Bootle.

School Facilities (Public Use)

6.

asked the Secretary of State for Education and Science what is the Government's policy on the use of school facilities by the whole community.

Generally speaking, the use of county school premises outside school hours is a matter for local education authorities and the use of voluntary aided premises a matter for the managers or governors. The Government and my right hon. and learned Friend are anxious to see the widest possible use of school premises for other community purposes. It adds to the importance of the school's role in the community.

Is the Minister aware that I find his reply very disappointing? Is he further aware that many schemes for extra provision are being cut because of the Government's policies? Is he aware also that it is a scandalous waste of resources to lock high quality indoor and outdoor facilities away from the community? He should take some responsibility for this matter and ensure that backward authorities at least know what the enlightened authorities are doing. He should take some initiative to ensure that these facilities are fully used.

The principle behind the right hon. Gentleman's remark is well understood. However, I cannot understand why he finds my initial reply disappointing. There is nothing in the existing legislation that forbids local authorities, school governors or managers from opening those facilities and thereby making a great contribution to the local community. At the same time most members of the community understand that they will have to pay for the use of those facilities. Local authorities are entitled to make an economic charge in respect of services, such as the cost of heating and lighting, as well as any additional payment to caretakers and grounds men over and above their wages.

Does my hon. Friend agree that one of the major obstacles to the use of school premises for recreational or other purposes out of school hours is the reluctance of school caretakers to work extra hours? Will he encourage local education authorities to allow voluntary organisations to staff those premises outside school hours?

Although local authorities are responsible for such decisions, in principle we support any action that a local authority might want to take on that issue.

Is the Minister aware that it is about 15 years since a policy circular was issued by the former Minister of Housing and Local Government and the Ministry of Education? That circular advocated that all local education authorities should make dual use of buildings. To date only a minority of authorities have embarked on that policy. Does the Minister not realise that such action requires direction from central Government, or at least a lead from them? School rolls are falling in many areas. Does the hon. Gentleman agree, therefore, that schools should not be closed and that every effort should be made to use them for other purposes, such as the expansion of vocational and further education?

At the outset the right hon. Gentleman said that the last circular had been issued 15 years ago. The last circular on this theme was sent out in February 1970. As I do not wish to incur your displeasure, Mr. Speaker, I shall not attempt to identify any of the long list of activities that might take place in school premises out of hours. Local authorities are entitled to expand their facilities for use within the community. Hon. Members from all parties will know which schools and colleges in their constituencies are utilised effectively. I do not believe that the picture is bad, but there is room for much improvement.

Centre For Information And Advice On Educational Disadvantage

7.

asked the Secretary of State for Education and Science if he will reconsider his policy on future grant-aid to the Centre for Information and Advice on Educational Disadvantage following the recent submission from its governing body.

I am giving careful consideration to the detailed document received recently from the centre's governors and will be writing to them shortly.

Will the Secretary of State bear in mind that the unit has been in existence for four years and that it is run on a small amount of money—less than £300,000 per annum? Will he further take into account the fact that the unit has carried out many important projects on the welfare, counselling and education of the disadvantaged? The unit has received splendid support from teaching unions and from schools. Does not the right hon. and learned Gentleman agree that it is scandalous that he should suggest closing the unit, when he has not visited it? Will he ensure that someone visits the unit before any decision is made about its closure?

Any decision to close any unit is worrying. However, as the hon. Lady said, the unit costs £300,000. From advice that I received about its achievements, and bearing in mind that its expectations must be based on the relatively limited resources that are likely to be available, I concluded that even that amount of expense was unjustified. I came to the conclusion that there were better ways of achieving those ends. However, since then I have received a letter from the governors, and I am considering their points.

Does my right hon. and learned Friend appreciate that many people have considerable respect for the work produced by the centre, but have genuine reservations and doubts about whether its advice is getting to schools? That is the area of anxiety.

That is true. I felt that the centre was not being widely used by local education authorities, and that it had not been so used in its lifetime. I do not denigrate those who work there. The centre was given an almost impossible task, given the size of its budget.

Has the Minister, or have his hon. Friends, visited the centre to assess the work that it is doing? If not, on what basis was his assessment made? Has he had consultations with the local authorities, including many Conservative-controlled authorities, which are using the centre on an increasing scale? If the Minister believes that the centre's work is not adequately benefiting schools, does he agree that the answer is to increase its funding not to close it?

The hon. Lady in the last part of her question put the dilemma that faces me. On the advice that I have received, I do not believe that the centre, with its present funding, can meet the remit that it has been given. We are faced with the problem of either vastly increasing its expenditure, which I do not believe can be justified, or considering whether it has a continuing valid life.

I have not visited the centre, nor, as far as I know, have my hon. Friends. We obviously have to take account of the advice that we are given. On 5 December the delegation that came to see me included among its governing body representatives of the local education authority.

Core Curriculum

8.

asked the Secretary of State for Education and Science what progress has been made in implementing a core curriculum.

13.

asked the Secretary of State for Education and Science what consultations he proposes to have over the recent paper from his Department "A Framework for the School Curriculum"; and when he expects his proposals over the school curriculum to be implemented.

The consultative paper "A Framework for the School Curriculum" was issued by the education departments in January. Consultations with the local authority associations, the teachers unions, the Schools Council and other major interests will be held soon. Our intention is to publish in due course a further document revised in the light of these consultations.

Does the right hon. and learned Gentleman agree with the remarks of his Minister of State last month that the possibility of implementing a core curriculum is seriously threatened by the shortage of teachers of mathematics, science and modern languages? What provision does he propose to make to train and retrain teachers to obviate that shortage in primary and secondary schools?

I am concerned about the shortage of teachers of mathematics and science, because this affects the speed at which we can implement the core curriculum that we should like to see. We have specifically asked teacher training institutions to give priority to shortage subjects. I think that at our previous Question Time I announced that we were continuing for a further year the scheme for retraining teachers in the shortage subjects. I accept that that provision is not for a large number, but it is a move in the right direction.

Does my right hon. and learned Friend agree that there is widespread parental concern about the need for greater emphasis on basic subjects, particularly in primary schools? Will he accept that early moves towards the establishment of a core curriculum will be widely welcomed?

I realise that there is widespread concern, and I am pleased with the general support for our document. We do not wish to dictate in every detail what should be taught in schools, but we want to achieve a more general national acceptance of where the emphasis should lie.

Will my right hon. and learned Friend confirm that he is proposing to use persuasion rather than legislation to achieve that excellent objective?

Certainly. As I made clear in my main answer, our desire is to have discussions with local education authorities and teachers unions and reach general agreement on the basic framework for curricula for schools throughout the country. I hope that we can achieve that in a spirit of co-operation.

Assisted Places Scheme

9.

asked the Secretary of State for Education and Science what is (a) the average annual fee and (b) the maximum annual fee now contemplated for participating schools in the assisted places scheme.

My right hon. and learned Friend has no fixed average or maximum fee in mind. We shall be considering the responses that we receive from schools individually and not against arbitrary limits of that kind.

Is it contemplated that these places should be brought side by side with empty places in local authority secondary schools? If so, how can the Government justify the scheme, in the light of the plea for more efficient use of public money?

Schools with superb sixth form facilities will take pupils from areas where the maintained sector cannot offer such facilities, particularly in inner city areas. It will be an excellent opportunity for those children.

The current recoupment level for local authority secondary schools is £715 for pupils between the age of 11 and 16, and £1,155 for pupils aged 16 plus. The six ex-direct grant schools in Manchester have an average fee of £841. In certain areas the scheme could even save money.

Does the assisted places scheme extend to schools which offer specialist skills, such as ballet, music and singing, and will it help children who have problems such as dyslexia and need to go to special schools?

Ballet and music schools were exempted under the 1976 Act, and pupils could go to them. We shall consider applications from schools at sixth form level and below where it is felt that pupils would gain advantage from the facilities offered in music, art or languages.

Will the hon. Gentleman accept that his continually repeated emphasis on the sixth form aspects of the schools that he would want to be in the assisted places scheme provides strong circumstantial evidence to support the fears of the National Association of Head Teachers and many other organisations that, in reality, the assisted places scheme will mean piracy of talent at the leadership and inspiration levels from schools in the maintained sector?

Under the system wiped out by the Labour Government, about 2 per cent. of pupils went to direct grant schools. I do not remember hearing complaints from county grammar schools then that they were being denuded of sixth form talent. The maintained schools will retain 80 per cent. of the top 20 per cent. ability pupils, and there is something wrong with them if, on those figures, they cannot achieve good academic results.

Does my hon. Friend agree that the assisted places scheme will give great advantage to children from poor areas, and that that sort of advantage was given to certain Labour Members by the grammar school system?

I agree entirely. I believe that when they are published the figures for acceptance on the means test will bear that out. The scheme will offer superb sixth form opportunities that do not exist in certain areas for pupils whose parents cannot afford to pay.

Does the hon. Gentleman agree that the assisted places scheme will be found attractive by the more third-rate "bucket shops" in the private sector? Will he accept that, with the shrinking child population and the declining economic situation, those institutions would otherwise be seriously threatened, since even snobbary at some point is insupportable?

It is interesting that we are attacked from the Labour Benches on one side for taking talent from sixth forms and on the other over craft schools or what the hon. Gentleman calls "bucket shops". Labour Members should make up their minds from which side they want to attack.

Science And Mathematics Teachers

11.

asked the Secretary of State for Education and Science whether there are any proposals to offer financial incentives to attract scientists and mathematicians into the teaching profession; and, if so, what they are.

My right hon. and learned Friend does not rule out that the Burnham committee might consider some form of differential financial incentive, although there are serious difficulties both of principle and of practice to be taken into account.

I am grateful for that helpful and constructive reply, and I hope that the Burnham committee will look at the matter seriously. Is my right hon. and learned Friend aware that our major competitive countries in the EEC, such as the Federal Republic of Germany, provide better conditions and pay for scientists, mathematicians and engineers? Does my right hon. and learned Friend agree that if we are to get the right quality of teachers in those subjects we must pay them the right wage?

It is open to local education authorities, if they so wish, to appoint suitably qualified teachers to posts in the shortage subjects on a salary scale above scale I.

Is the Minister aware that there is a shortage of mathematics teachers to meet all the demands of industry, commerce and the academic professions? Will he consider a high-powered scheme to second people with mathematical qualifications from industry to teach in schools that have a shortage in a particular subject?

I welcome the hon. Gentleman's suggestion. Discussions are being held with the CBI along the lines mentioned. Our advertising campaign to attract more people to train and retrain in the shortage subjects was launched earlier this year, with 1,000 replies in the first week.

Immigrant Children (Bussing)

12.

asked the Secretary of State for Education and Science what is his policy regarding the transport of immigrant children by bus to different schools in order to avoid a large concentration of immigrant children in one school.

This is purely a matter for local education authorities to determine in the light of the educational needs of the children concerned, local circumstances and the requirements of the Race Relations Act 1976. My right hon. and learned Friend welcomes the fact that most authorities do not find it necessary to bus children from ethnic minority groups.

May I tell my hon. Friend how much I agree with the last part of his answer? Does he agree that such action would generally dislocate communities, except in the most exceptional cases, and smacks more of social engineering than education?

I endorse everything that my hon. Friend has said. It must remain the responsibility of local education authorities. If there are problems within adjoining communities, local education authorities should consult each other closely, together with the ethnic minority leaders.

Will the Minister tell his hon. Friend the Member for Streatham (Mr. Shelton) that the use of the word "immigrant" is incorrect when applied to children who have been born in this country?

I dare say that my hon. Friend the Member for Streatham (Mr. Shelton) has heard what the hon. Gentleman has said.

Science And Mathematics Teachers

14.

asked the Secretary of State for Education and Science what measures he is taking to improve the supply of teachers of science and mathematics in schools.

Teacher training institutions have been asked to give these subjects a high priority, and the Government's training and retraining schemes continue as a valuable short-term measure.

Will my hon. Friend consider a bonus grant system for those students who elect to study mathematics and science at universities or colleges?

That is a suggestion that could come under the review that is taking place within my right hon. and learned Friend's discussions. A number of discussions on this important matter have taken place with both local authority and teachers' associations. We have had consultations with the CBI, as mentioned by my hon. Friend the Member for Brent, North (Dr. Boyson),to discover whether those with mathematics or science degrees who retire early could be retrained and encouraged to teach these important subjects.

Will my hon. Friend accept that one of the ways to deal with the problem is to recognise that qualifications for teachers are rising and that over the next five years we should aim to pay all teachers more, even in preference to a reduction in the staff-pupil ratio?

If that were possible it would be an ideal situation. It will have to be reviewed closely.

Is the Minister seized of the urgent and pressing need to acquaint school pupils with the demands of new technology? Nothing is being done in our schools in that respect. Does the hon. Gentleman agree that he ought to ensure that enough scientists and technologists go into our schools to provide that information.

This is an important subject, and I shall try to answer as quickly as I can. Through the Standing Conference on Schools Science and Technology, through the organisation of SATROs—that which the hon. Lady will know of—because of our determination to encourage closer links with industry and engineering in schools, because my right hon. and learned Friend has frequently referred to the importance of teaching craft, design and technology in schools at an early age, and from meetings that have been held with the CBI, the TUC and representatives of all the teacher associations, I believe that a number of important steps have been taken in recent months that will bear fruit in the future.

Student Unions (Finance)

15.

asked the Secretary of State for Education and Science whether he will give details of the changes he proposes to make in student union financing.

My right hon. and learned Friend will announce new arrangements in a written reply to a question later today.

Is not that an insult to the House? Is it not clear that the hon. Gentleman is trying to avoid being questioned on the subject for another six weeks, so that by the time he next stands at that Dispatch Box the scheme will be a fait accompli?

I thought that the House would welcome the fact that at last the Government are taking action over student union financing. We could not have done it from the Dispatch Box, because the answer is too long. Hon. Members will wish to consider the whole scheme, and it is with pleasure that we will announce it today. I warned the hon. Gentleman yesterday that that was the only way that we could do it.

As I understand it, the principle of the answer is a brief one. It is not good enough for the hon. Gentleman to try to avoid the question asked by the hon. Member for Berwick-upon-Tweed (Mr. Beith) on the basis of the length of the answer. That is the hon. Gentleman's responsibility. We want the basic information now.

The principle of making student unions more accountable than they are is accepted and understood by both sides of the House. The way that it has been worked out could not be explained briefly in the House, and that is why it will be done by a written answer.

Prime Minister (Engagements)

Q1.

asked the Prime Minister if she will list her official engagements for 5 February.

In addition to my duties in this House, I shall be having meetings with ministerial colleagues and others, including one with the British Independent Steel Producers Association.

Does the Prime Minister agree that last night's television programme on documents published by BSC indicate that the Secretary of State for Industry deliberately provoked the national steel strike, blocked a 14 per cent. pay rise and insisted on 52,000 steel redundancies? Will the right hon. Lady assert herself against the reactionary and totally wrong policies of her right hon. Friend? Is the Iron Maiden chicken, or will she sack her right hon. Friend and stop the brutal butchery of working-class communities?

I totally reject the hon. Gentleman's ridiculous and disgraceful allegations against my right hon. Friend. Some months ago my right hon Friend, in conjunction with the industry, fixed a cash limit for next year of some £450 million, which the taxpayer will find. Already we have a high level of tax in this country, and I think that it is as high as the taxpayer finds acceptable. We are not prepared to find more for operating losses.

Will my right hon. Friend ignore the Palladium antics of the hon. Member for Flint, East (Mr. Jones)? Will she find time in her very busy programme, to explain at somewhat greater length to the people of this country why our Olympic athletes should not go to Moscow? Will she explain to the people of this country that the future security of the world is more important than a few gold medals?

I have already made it clear that I think that if Olympic athletes go to Moscow that occasion will be used by Russia to indicate that either the countries which go or the athletes who go are, in some way, in favour of Russian foreign policy. I believe that that would be catastrophic. Because we know that the athletes have trained long and hard for that occasion we have asked, in the first place, for the venue to be moved to somewhere more suitable.

To return to the question posed by my hon. Friend the Member for Flint, East (Mr. Jones), will the right hon. Lady undertake, if she has not already done so, to see last night's "World in Action" programme on the steel papers, since that programme indicated, among other things, that within BSC, long before Christmas, there were some who warned about the catastrophic effects of a steel strike and the likelihood that it would take place if they went ahead with what they themselves described as the zero offer to the steel workers?

Will the right hon. Lady tell us whether she has seen that programme? Will she undertake to do so, and will she undertake to return and report to the House on the interventions by the Government in the steel industry prior to 31 December?

I did not see the programme. I have more or less read the script, together with the radio script—[Interruption.] Yes, indeed, because I am not certain that it is accurate in every particular. I read the script, together with certain radio broadcast scripts at lunchtime today. As the right hon. Gentleman knows, the steel cash limit of £450 million for next year, following the £700 million for this year, was set by my right hon. Friend the Secretary of State for Industry. The only fetters upon it—if I may use that word—are that the £450 million should be used for a mixture of investment, working capital and redundancy payments.

It seems to us that it is perfectly reasonable to provide good redundancy payments for those who lose their jobs, having previously provided, and continuing to provide, the best investment and equipment so that those who stay at their jobs may have the chance to earn higher and better pay.

If the right hon. Lady says that she has more or less read the script, will she give us her comments on the warnings given to her and her Government from inside BSC way before Christmas of the catastrophic effects of proceedings as the corporation eventually did proceed? What support did the Government give to that and what intervention did they make? Will she give a full report to the House when she has read the whole script?

If I may respectfully say so, the argument is not so much about percentages as about how those percentages are to be met. There is plenty of prospect for considerably improved pay if people will properly use the excellent and latest equipment and machinery that has been provided by the taxpayer. In that way, their levels of productivity will reach those of many industries on the Continent.

Is the right hon. Lady aware that a deep sense of desperation is spreading throughout the country, for which she is responsible? When will she come to the House and say that she will take some action to stop the spread of paralysis throughout the country?

I am aware of a sense of desperation. There is a great sense of desperation when a whole people provide a whole industry with the latest and best equipment so that it may become the best and most efficient steel producer in the world, and those who work in the industry do not take the opportunity to use it but go on strike to demand more from the taxpayer—the taxpayer who, in the same world, has to make a profit.

Does my right hon. Friend feel that she will be able to reassure the members of the British Independent Steel Producers Association that Ministers will in no way miss the opportunity of the passage of the Employment Bill through the House to ensure that, never again, are they made victims of the sort of strike action to which they are being subjected? Will she also make clear that if people wish to stop the damage that the strike is creating in the country and the steel industry, they must cease going on strike and resume negotiations?

I agree entirely with my right hon. Friend's last point. It is a cause of great sorrow to me that people who are on strike are not around the table negotiating again. The Employment Bill deals with secondary picketing, but of course it does not deal with secondary strikes. I do not believe that it can deal with such strikes at the moment.

Q2.

asked the Prime Minister if she will list her official engagements for 5 February.

When will the Prime Minister recognise the Government's wider responsibility in the steel dispute? Will she assure the 12,000 workers in my constituency who are employed in the refractory brick industry that their jobs will not be put in jeopardy? Millions of pounds of public and private money have been spent on the arm to make it profitable, while the Government stand idly by.

Jobs are put in jeopardy because of a strike. The hon. Gentleman should direct his attention to those who decide to go on strike, stay on strike and extend that strike.

Will my right hon. Friend give a warning today about the consequences of the removal of all safety cover at BSC plants? The effect of that action may well be to destroy jobs in that industry. Will she invite the Leader of the Opposition—whoever that might be in reality—to join in the condemnation of the foolish threatened action?

I agree entirely with my hon. Friend. If the report is correct that safety workers are being withdrawn from coke ovens and blast furnaces, by so doing they are destroying their own jobs. I doubt whether some blast furnace men would do that, but I believe that the management and staff would be able to keep the safety procedures going for some time.

In view of the Prime Minister's present position and the disastrous consequences to the national interest of what she is proposing, that is, to do nothing, will she willingly concede that, having said that she has fixed the cash limit only, by so doing she has fixed within it a wage increase? What is that wage increase that she assumed?

Of course, we have not fixed a wage increase. The right hon. Gentleman knows that the cash limit applies to three matters—investment, working capital and redundancy. The wage increase will depend upon the level of productivity, and that is what the argument is about.

Is my right hon. Friend aware of the deep frustration that is felt by many workers in the steel industry, particularly in the private steel industry, because many of them do not wish to strike but are afraid to defy the unions in case of victimisation? Will my right hon. Friend consider the advisability of introducing a one-clause Bill to provide that if 500 workers, or 10 per cent. of the work force, whichever is the lower, demand a ballot, that will be mandatory on the trade union leadership?

There have been times when I have believed that a one-clause Bill might be tempting. However, I must be candid with my hon. Friend. I doubt very much whether we could get a one-clause Bill through the House during the course of the strike. We have to get the strike settled first. There are provisions in the Employment Bill which will help considerably with the matter of the closed shop, to which my hon. Friend refers.

Q3.

asked the Prime Minister if she will list her official engagements for 5 February.

I refer the hon. Gentleman to the reply which I gave earlier today.

Why has the Prime Minister evaded the questions that my right hon. Friend the Member for Ebbw Vale (Mr. Foot) put to her? His central question was about what reply the right hon. Lady gave to BSC when it predicted a catastrophe if a 2 per cent. offer was made? I repeat, what reply did she make to BSC?

The hon. Gentleman cannot know about relationships between nationalised industries and Prime Ministers. In a properly-run Government, the matter does not come to the Prime Minister.

Will my right hon. Friend take time today to examine a parliamentary answer which suggests that the Government will continue to lend money to the Russians at subsidised rates of interest to buy capital goods. As these goods can be used to make military equipment, will she stop that immediately and seek to persuade our European partners to do the same? If not, our protest against Russian aggression and events in Afghanistan will become a farce.

As my right hon. Friend knows, we are not continuing with the higher preferential credit terms which were previously negotiated and which terminate this month. However, we expect to continue with what are called "consensus terms" with national trade, which we are agreeing with our partners. We are trying to negotiate those terms with them.

Are the Government's industrial policies producing the results that the Prime Minister intended?

They are certainly giving people the opportunity to earn more. If they take that opportunity they will have the assurance that they will be able to keep a bigger proportion of their pay packet. If some people receiving considerable subsidies from the taxpayer strike because they want more, that is their own viewpoint and responsibility. I will have no truck with them.

Does the right hon. Lady's reply to my right hon. Friend the Member for Battersea, North (Mr. Jay) mean "Yes we have done it all on purpose"?

The right hon. Gentleman must be very much kept down when his right hon. Friend is here.

Order. I propose to call one more hon. Member from the Government Benches because I called two hon. Gentlemen from the Opposition.

Will my right hon. Friend remind the House and the country of the positive encouragement and reward given to the Soviet Union's aggression by the previous Labour Government when the right hon. Member for Huyton (Sir H. Wilson) was Prime Minister when he handed over to the Soviet Union the gold reserves of the independent republics of Estonia, Latvia and Lithuania? They had been deposited for safe keeping with the Bank of England when Soviet Russia invaded and annexed those republics.

I remember the occasion very well and the great trouble that it caused among people who had previously been citizens of those countries.

On a point of order, Mr. Speaker. I recognise—as I am sure every hon. Member does, the special position of the Leader of the Opposition, but may I put it to you that it cannot be right, in the interests of all Back Benchers, that the spokesman for the Leader of the Opposition in this case presumed on his position to intervene four times in question?

In no way do I seek to complain that you rightly give preferential treatment to the Leader of the Opposition, but I hope that you will accept, that he will accept and that all Members of the House will accept, that to preserve his special position he should manage it with restraint and with regard for other hon. Members.

Order. The House knows that I have often said that special latitude is given to the Leader of the Opposition and to his spokesman. To-day, because it was the last moment, I called one hon. Member from the Government Benches after time because I thought it was the fair thing to do.

Questions To Ministers

On a point of order. I hope that I may have your guidance, Mr. Speaker. On 17 January I tabled a question to the Home Secretary asking how many prosecutions were taken out during 1979 against persons for failing to have a dog licence. I was rather surprised to receive a reply from the Home Department saying that this was a matter for the Ministry of Agriculture, Fisheries and Food.

Nevertheless, since I trusted the Home Department implicitly I decided to wait until I received a reply from the Minister of Agriculture, Fisheries and Food. That reply came on Thursday 31 January.
"So far as England and Wales is concerned, I am advised by my right hon. Friend the Secretary of State for the Home Department that the information requested for 1979 is not yet available…"
That surprised me since the Home Department had said that it was not responsible for prosecutions.

I therefore decided that I would table a question to the Prime Minister, so that she might get an iron grip on the two Departments and knock their heads together to get some sense out of at least one of them. I had her reply yesterday, which said:
"Local authorities are responsible for collecting the dog licence fee and are required to keep a register of licence holders. The police are concerned with proceedings with licence evasion. The Minister of Agriculture, Fisheries and Food and the Secretaries of State for Scotland and Wales have powers to alter the level of the licence fee."
That simply is not good enough. I was refused the opportunity by the Home Department to ask specific questions that affected the interests of my constituents by a transfer of question, which, as far as I can see, should not have happened. I should be most obliged, Mr. Speaker, to have your guidance on this matter.

Order. Allow me to take this opportunity to advise the House first of all that there is a very long list of right hon. and hon. Members who hope to speak in the debate later today. We have now had a time-wasting exercise, which was not a genuine point of order. Hon. Members should raise with me only those matters that are affected by the Standing Orders of the House. I cannot rule on the issue of an hon. Member's questions being transferred. The House knows that quite clearly. I make it clear to the House also that if hon. Members are not satisfied with answers that they have received they should not raise the matter under the guise of a point of order. They should pursue it with the Minister concerned. I cannot rule on that matter.

Jubilee Building, Covent Garden

I beg to ask leave, Mr. Speaker, to move the Adjournment of the House, under Standing Order No. 9, for the purpose of discussing a specific and important matter that should have urgent consideration, namely,

"the decision of the Secretary of State for the Environment not to list a building of architectural and historic interest—the Jubilee Building in Covent Garden."
It was built at the time of Queen Victoria's Jubilee as part of Covent Garden market and was recently converted into a sports hall.

The future of the site of the building is about to be determined by the Greater London Council, which wishes the building to be demolished and replaced by offices. To list the building would ensure a public inquiry before this sports hall, used by my constituents, could be demolished.

A report in The Guardiantoday states that the Department of the Environment inspector, exercising his professional judgment, recommended that the building should be listed. This recommendation was set aside following representations by the Under-Secretary of State for the Environment—the hon. Member for Hampstead (Mr. Finsberg)—that the issue should be dropped, or it would still be around, and very tricky, for the 1981 GLC elections.

The listing functions of the Secretary of State are semi-judicial in nature and should not be subject to short-term party political considerations. For these reasons I submit, Mr. Speaker, that this matter is urgent, specific and particularly important, as it goes to the heart of the discharge of quasi-judicial functions by the Secretary of State and would also provide an opportunity to save from vandals and property speculators a useful building of architectural importance.

The hon. Gentleman gave me notice before 12 o'clock noon today that he would seek leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that he believes should have urgent consideration, namely,

"The interference by the Under-Secretary of State for the Environment on political grounds in a quasi-judicial process of determining whether or not to list the Jubilee Market building, in Covent Garden."
I listened with care to the argument advanced by the hon. Gentleman. I have no doubt at all that to him and to his constituency this is an important matter, but as the House knows, under Standing Order No. 9 I am directed to take account of the several factors set out in the Order, but to give no reasons for my decision.

I have to rule that the hon. Gentleman's submission does not fall within the provisions of the Standing Order. Therefore I cannot submit his application to the House.

On a point of order, Mr. Speaker. I totally accept your ruling on my hon. Friend's application under Standing Order No. 9, but as the Secretary of State for the Environment is here and as a most serious allegation has been made—that a quasi-judicial act has been set aside for party political reasons—would it not be helpful if that were dispelled by the Secretary of State's standing at the Dispatch Box now and making clear whether that is true or not?

Bills Presented

Broadcasting

Mr. Secretary Whitelaw, supported by Mr. Chancellor of the Exchequer, Mr. Secretary Younger, Mr. Secretary Ed- wards, Mr. Secretary Atkins, Mr. Secretary Carlisle and Mr. Leon Brittan presented a Bill to amend and supplement the Independent Broadcasting Authority Act 1973 in connection with the provision by the Independent Broadcasting Authority of a second television service and otherwise in connection with the functions of the Authority: to establisha Broadcasting Complaints Commission, to require consultation between the British Broadcasting Corporation and the Authority about the scheduling of television programmes in Welsh; and for connected purposes: and the same was read the First time; and ordered to be read a Second time tomorrow and to be printed. [Bill 139.]

Trade Union And Labour Relations (Declaration Of Parliament's Intention)

Mr. Michael Brown, presented a Bill to explain subsection (1) of section 13 of the Trade Union and Labour Relations Act 1974 as amended by subsection (2) of section 3 of the Trade Union and Labour Relations (Amendment) Act 1976: And the same was read the First time; and ordered to be read a Second time tomorrow and to be printed. [Bill 138.]

Employment (No 2)

Sir Ronald Bell presented a Bill to amend the law concerning industrial relations: And the same was read the First time; and ordered to be read a Second time upon Friday 22 February and to be printed. [Bill 140.]

Business Of The House

Ordered,

That, at this day's sitting, Standing Order No. 3 (Exempted business) shall apply to the motion relating to Community energy situation and nuclear proposals with the substitution of One o'clock or three hours after it has been entered upon, whichever is the later, for the provisions in paragraph (1)(b) of the Standing Order.—[ Mr. Brooke.]

Domestic Fuel Rebates

3.41 pm

I beg to move,

That leave be given to bring in a Bill to provide for a scheme to assist households on low incomes with the payment of fuel bills by means of rebates.
The aim of my Bill is to bring in a national and comprehensive scheme that will give the necessary assistance to those who are unable, because of low incomes, to meet their fuel bills.

There is no doubt that increasing numbers of people are having difficulty in paying their fuel bills, and none more so than those on low incomes. For such people, keeping their homes adequately heated and finding the money for the fuel bills becomes almost a nightmare.

Last year, for instance, electricity prices went up by about 20 per cent. This year the increase will be larger. As we know, gas prices are due to go up during 1980 by nearly 30 per cent. The price of paraffin, so much used by poorer families, is 50 per cent. higher this year, due to the ending of price controls.

When the Government announced the substantial increase in gas prices they should also have announced a proper and adequate scheme that would give the kind of assistance that should be given to people on low incomes to help them to meet their fuel commitments.

Clearly, retired people on limited incomes need more help then they are now receiving in meeting their fuel bills. Many elderly people in the community—certainly those on limited incomes—find it so difficult to keep their homes warm that they do not use the fuel that they have. The reason is obvious. They are frightened that at the end of the quarter they will have bills that they will be unable to pay. Many keep the heating off. They wrap themselves in blankets. I suggest that is not a dignified way for the community to treat its senior citizens.

Apart from the elderly, there are others who need assistance with fuel bills—the disabled and the handicapped, the single-parent families, often on very limited incomes, and those on low pay with families.

When I raised the matter on an Adjournment debate last July I argued that the electricity discount scheme should be maintained and extended. The electricity discount scheme, introduced by the previous Labour Administration, gave help to 4 million people on low income. It was a recognition that because of the high charge for electricity special provision should be given to people on low incomes. I was pleased when that scheme was introduced by the previous Labour Government. However, I was displeased when, instead of keeping and extending the scheme, the present Government decided to cancel it. In its place there is a new kind of benefit, which is likely to assist only 345,000 people.

One argument in favour of the new benefit is that the main category likely to be assisted comprises pensioners over 75 years of age who are on supplementary benefit. But there is nothing for those pensioners under 75 who are on supplementary benefit. The Supplementary Benefits Commission has estimated that 70 per cent. of pensioners over 75 on supplementary benefit are already receiving a heating addition—an inadequate one, in my view. However, those people will not receive a penny under the Government's new scheme. The truth is that the Government have cheated those who are most in need of assistance with their fuel bills.

I argue in my Bill that it is necessary to have a system of fuel rebates, or allowances, that will provide comprehensive assistance for the people whom I have in mind. In the early 1960s, when the revaluation of domestic property took place, great concern was expressed, if not by the Government of the day, that many retired people would not be able to pay their rate bills. It wasargued—rightly, in my view—that there should be a system of rate rebates. After a great deal of pressure, a rate rebate system was introduced, and it continues now. There is no controversy over rate rebates. My argument is simple; if it is right to have rate rebates and rent allowances for people on low incomes, it must be equally right to have a system of fuel rebates for those who clearly cannot—

Order. I am sorry to interrupt the hon. Gentleman, but he must not make the speech that he would make if the House gave him permission to bring in his Bill. He must make a speech justifying the Bill.

Thank you, Mr. Speaker. My aim is to bring in such a scheme to provide the assistance that I believe is necessary. Fuel poverty is a blight in this country. Millions of our fellow citizens cannot make ends meet when it comes to paying their fuel bills. The type of hardship that I have described must be ended. I see no reason or justification for allowing that type of poverty to continue in our midst. That is why I request permission to bring in my Bill.

Question put and agreed to.

Bill ordered to be brought in by Mr. David Winnick, Mr. Jack Ashley, Mr. Robert Edwards, Mr. Frank Allaun, Mr. Frank Field, Mr. Lewis Carter-Jones, Mr. Stanley Newens, Mr. Laurie Pavitt, Mr. George Park, Mr. Stan Thorne, Mr. Clive Soley and Mr. Kevin McNamara.

Domestic Fuel Rebates

Mr. David Winnick accordingly presented a Bill to provide for a scheme to assist households on low incomes with the payment of fuel bills by means of rebates: And the same was read the First time; and ordered to be read a Second time upon Friday 7 March and to be printed. [Bill 141.]

Orders Of The Day

Local Government, Planning And Land (No 2) Bill

Order for Second Reading read.

On a point of order, Mr. Speaker.

I do not wish to inconvenience you or the House, but you may recall that at the end of Question Time the Under-Secretary of State for Education and Science said that an answer sought by the hon. Member for Berwick-upon-Tweed (Mr. Beith) would be given later in the day in written form. This caused certain disquiet in the House. I was all the more surprised, therefore, to find on entering the Tea Room that the Evening Standard has a full report of precisely what the Government will be saying in the form of a written answer later this afternoon. It seems an extraordinary denial of the rights of the House that the press has the details of the answer before the House has been permitted to see it.

All that I can say to the hon. Gentleman is that I have no control over what the Government give to the press or what the Opposition give to the press. It is not a matter on which I am able to rule.

I propose to operate the 10-minute rule from 7 pm until 9 pm. I must warn the House that, even then, it will be very hard to call everyone who wishes to be called.

3.53 pm

I beg to move, That the Bill be now read a Second time.

I do not want to underestimate the importance of this Bill on local government and local democracy. Nor do I want to understate the scale of what it proposes. In a number of ways, it challenges long established habits and attitudes. It encourages the more effective use of resources, the creation of a better understanding within local communities—councillors, officials and electors—of the opportunities and options they face, and a more open relationship between central and local government.

Changes of this nature, challenging as they do many deeply held convictions, cannot expect to lack controversy. They are overdue in any circumstances, but in the economic circumstances of today they are essential. I start with the present regime of central control over local government.

A statutory framework is first approved by Parliament to give duties, powers and discretions to local government. But, from that moment on, by circular, by project control, by the refusal to sanction expenditure, and by borrowing limit, the central Government impose a detailed control at incalculable expense on the opportunities of local government. This web of detailed control is little understood, rarely examined, but its existence gives central Government the most comprehensive and detailed control over virtually any and every significant choice that, in theory, is the prerogative of local government.

It is perfectly true that central government provide 61 per cent. of local government current expenditure. But the very system of distributing this £8 billion a year compounds the problems to which I refer, by rewarding those who spend more at the expense of those who spend less and by allocating the money by methods that few people understand.

Finally, local authorities operate in a financial climate that gives no indication of the available underused capital resources, principally land, that they own and that could be better used. There is little comparative information that could enable councillors or ratepayers to judge their council's performance against that of a similar council.

No one in this House and very few in local Government challenge the right of central Government to set priority for overall policy. The last Government's Education Bill and our sale of council houses are both controversial examples of that fact. Central Government has to set the frontiers. But, once those frontiers are set, we want to enhance the opportunities of local government to carry out those responsibilities that are theirs. The first general objective of the Government is to pull back in many areas from detailed interference with local government discretion. As an example of this intention, my Department has issued only 39 circulars and circular letters in nine months compared with 222 in the last 12 months of Labour Government. Part I of this Bill relaxes a substantial number of detailed controls.

We examined, as a Government, nearly 1,000 powers held by central Government over local. In general terms, we did not feel it correct to enhance the rights of local authorities at the expense of the individual. So we kept the 100 or so such powers that would affect this. Fifty more are default provisions and these also remain. Of the remaining powers, we have agreed, in this Bill, or elsewhere, to repeal or remove 300. They vary considerably in importance. Some are very small. Others are significant. What we have announced, in total, adds up to the largest repeal of such powers ever undertaken.

But the real thrust of our removal from detailed control comes in part VIII of the Bill, where we proposed capital ceilings for local authority expenditure.

I must ask the House to step back from the proposals in the Bill for a moment and understand the present arrangements currently in force in connection with capital expenditure. I am often told that there is no need to introduce capital controls because local government has a good record of keeping within present ceilings. But the fact is that central Government detailed controls are so stringent that anything else is virtually impossible. Block borrowing approvals cover local authority plans for personal social services and the locally determined sector. The Home Office has its range of controls. For transport, there is a combination of grant and borrowing approvals.

Under my own Department, in housing, there is a combination of expenditure ceiling and specific borrowing approvals. Before one brick can be laid on the ground, a local authority has to answer up to 100 different questions in form after form. In addition, borrowing approval and subsidy entitlement involve another 80 or so questions. We expect to receive half a dozen plans and, when all of that is carried through to the satisfaction of my officials, an authority is free to proceed. Parker Morris and cost yardstick standards ensure that not a house is built which has not been looked at in detail by my officials in respect of cost, size and design. That is the background, and words like "freedom" have no part to play in that process.

It is because this Government are drawing back from this web of detailed control upon which they and their predecessors have, for decades, relied that it is necessary to ask what new controls would be needed in the climate of freedom that will consequently emerge. We need to know that local government will still keep within ceilings of capital expenditure. The Bill gives us powers to ensure this.

Authorities will receive annual capital blocks for housing, education, social services, transport and miscellaneous, as they do now. But, having received firm allocations, they will be free to aggregate these allocations into one single block and then to decide their own priorities for expenditure as between services.

The annual allocation will carry with it automatic borrowing approval. In addition, capital receipts can supplement allocations, and 50 per cent. of housing capital receipts may be used for any capital purpose.

Housing services especially benefit. The abolition of housing project control restores to authorities the freedom to decide what sort of houses to build, and at what cost, to meet local needs. Parker Morris and cost yardstick as we know them will no longer apply. Authorities will no longer be caught between prescribed standards and costs. Government will intervene only by use of reserve powers in instances of flagrant extravagance that the taxpayer cannot fairly be asked to support, or to prevent building of an unacceptably low quality having regard to the practice of other local authorities or the private sector.

There are a number of further points. Law and order services will not be included in the new system.

Does the Minister accept that to determine a fair provision of capital allocation to local authorities he will need a tremendous number of bureau- crats, and a method of assessing the needs in the localities and balancing them against his relaxation of the restrictions on local authorities? Bearing in mind that local authorities in total have kept within 5 per cent. of the White Paper capital expenditure forecast over the past five years, does the right hon. Gentleman regard that exercise as worth while?

The hon. Member for Caernarvon (Mr. Wigley) could not have been listening to what I was saying. The reason why local authorities keep within 5 per cent. of the total is that the central Government machine is so detailed that they have no choice. It is because we are drawing back from those detailed controls and introducing a new system of ceiling controls that it will be necessary to deliver, in the new climate of freedom and discretion, the same close proximity to totals that we have experienced in the past.

I have a long speech to make, and many hon. Members wish to speak. Looking back over the past two occasions on which I have addressed the House, when I have given way to Opposition Members, their interruptions have added about one-third to the length of time for which I intended to speak. In giving way to the hon. Member for Batley and Morley (Mr. Woolmer), I ask hon. Members not to make too many interruptions.

If the Minister says that local authorities have kept within Government guidelines for their capital spending because of central controls over loan approvals, can he confirm that local council financing of capital spending by revenue contributions from the local rate did not cause any significant problems? In that case, why does he intend to prevent local councils using rate contributions to finance the local capital needs, so denying local councils the flexibility to use their own funds to respond to local needs?

The hon. Gentleman is missing the point. We are seeking control over the level of capital ceilings. No one questions that there should be such an overall level of capital control. The only question is whether the control should be detailed or open by having known published totals and allowing local authorities flexibility in operating within them. That position is absolutely clear. I am sure that when he looks at what I have said the hon. Gentleman will realise that this new discretion to local authorities is far wider than any they have had under any previous Government.

There will still be a need for specific government approval where capital projects could have a regional or national impact. Capital expenditure by parish councils and de minimis expenditure on equipment below £5,000 by all authorities will be outside the new controls. Individual authorities will enjoy a 10 per cent. tolerance carried forward or back on a year-to-year basis and will be able to vire with other authorities within a county areas. The Bill provides a fallback for authorities that exceed their capital ceilings.

In the last resort, should an authority deliberately seek to break the new system, the Government can either remove the new freedoms from that authority specifically or put all authorities back into the present straitjacket. We have chosen the former as the only proper way to protect the overwhelming majority who will observe the new limits faithfully. The Bill provides for a direction to a local authority that has overspent or looks certain to overspend. This is essentially a reserve power, and no directions will be made in respect of marginal or accidental overspending.

It is a common view that the politicians and the electorate know too little of what happens in the bureaucracies that serve them. The House has greatly extended the Select Committee system in recognition of this mood. The Government want local communities—councillors, officials and electors—to know more of the options that face them. In general terms, part II of the Bill enables Parliament to request local authorities to publish information about their activities in such a form that judgments can be made locally about them. Let me give the House just three examples of where I think such information should be available, authority by authority. First, manpower: every three months figures are supplied confidentially by each authority to a central body, the Manpower Watch, showing the total number of employees that it has in each principal activity. These individual figures are added up and published in total, but they are not published at individual authority level, where they would have real meaning. I believe that these figures should be published.

Secondly, planning: anecdotal comment about the delays in the planning system are commonplace, but facts have been hard to come by. Yet jobs, investment, environmental improvement and wealth creation are intimately tied up in this process. I ask no authority to change the nature of the decisions it takes. But I shall ask authorities to provide for publication details of the time it takes to deal with planning applications, in straightforward tabular form. My Department handles planning appeals. I can see no reason, save in the most extraordinary case, for decisions to take two or even three years to reach. I shall accordingly publish the time taken by my Department in reaching decisions on appeals in broadly the same form as I expect local government to do with planning applications.

Thirdly, housing: in replacing the detailed approval of individual projects with the freer system I have already outlined, I shall expect local authorities to make available to councillors, and to publish, details of housing schemes in a form that will enable the cost, subsidy and value to be judged by those who are expected increasingly to pay for them.

In general, enough comparisons between authorities cannot easily be made. This requires information on a common basis. I do not believe that my proposals will lead to a significant extra cost, because all authorities keep records. It is a question of seeing that the records are in common form and that more of them are open to public inspection. There will be discussions of the detail with the local authority associations and the Chartered Institute of Public Finance and Accountancy before the House is asked to decide on final proposals.

Has any local city council or county council ever denied the Minister's Department any information for which it asked? If not, why does the right hon. Gentleman require to change the law? Is he not in danger of trying to do for local people what local people are perfectly capable of doing for themselves?

I have not yet been able to persuade the local authority associations to publish details locally of their manpower figures, although I am optimistic that it may be possible to reach agreement on that. Unless there is central co-ordination of the publication of this information it will not happen. I put it to the hon. Gentleman with all respect that within the private sector the House has ensured that there is a range of comparative information about the performance and activity of that part of our society, and it is perfectly reasonable that we should take exactly the same steps where appropriate to ensure that the public sector operates in such a way that its activities can be clearly seen.

Is my right hon. Friend aware that in Liverpool the planning department and the architect's department recently refused to tell me how many people they employed?

I know that the whole House in its pursuit of open government will reflect upon my proposals and welcome them.

The Bill provides for a new block grant system to be brought into effect by order of Parliament and similarly for transitional arrangements to apply in 1980–81. The House will know that I set out our proposals in considerable detail on 16 January, when we discussed the rate support grant orders. The new system in no way sets limits to what an authority spends, nor does it fix the level of an authority's rates. Those decisions remain with the authority.

The new system ensures that the high spending authorities do not pre-empt even larger shares of a fixed amount of taxpayers' support away from those that remain within the Government's guidelines. Electors will more easily be able to judge the nature of the decisions being taken by an authority. In addition, the new system ends the present automatic assumption that the more an authority spends the more it pre-empts for itself at the expense of more cost-conscious authorities.

The House has seen how the county share of grant has diminished until this year under such principles. But perhaps the clearest exposition is to be found in the press release issued by the right hon. Member for Stockton (Mr. Rodgers) on 15 December 1978 when, as Secretary of State for Transport, he turned down South Yorkshire's transport bid. He said:
"It is also important that all counties get a fair share of the limited resources available. If one county absorbs too much of these, others must suffer."
He went on:
"But it would have been unfair to give them relatively more money in total than other authorities with similar inner area problems."
That is precisely the position. It is to end the automatic rewarding of high expenditure that the present RSG proposals are designed.

The new arrangements mean that grant support on marginal expenditure is progressively reduced as expenditure rises substantially above the standard levels of authorities with similar economic and social circumstances. No cash is actually removed from an authority, but authorities that wish to pursue abnormally high levels of expenditure will have to bear a much higher proportion of the burden directly through rates or charges rather than at the expense of other authorities. Operational details will be worked out in consultation with the local authority representatives.

The associations themselves have suggested that there may be other means, which they would prefer, to meet the objectives of block grant. They have not yet put forward an agreed alternative that meets our objectives. If they are able to put forward such an alternative I will of course consider it carefully and discuss it with them, but as I have told them, we are doubtful whether a practical alternative exists.

While we are on the matter of alternatives to the rating system, will the right hon. Gentleman clarify this matter? Three years ago he told the House that the commitment of his party to abolishing the domestic rating system was one of the wisest political commitments that the Conservatives had ever made. Does he still believe that that is the wisest commitment that he ever made? If so, why is not a proposal to abolish the domestic rating system, rather than one to make it more complicated, included in the Bill?

Since then, we made a commitment to reduce the levels of income tax. That was even wiser in the circumstances.

The whole future of domestic rating is being considered by the Government, as we made clear in our manifesto. However, today we are dealing with the systems of distributing grant within an existing or revised rate support grant situation and we are not considering the alternatives to the present domestic rate situation.

The Bill also provides for transitional arrangements for the year 1980–81 prior to the working of the new block grant that will be introduced in 1981–82, if Parliament approves. It has been suggested that the powers of the transitional arrangements should be retrospective and arbitrary. The powers are not retrospective because right from the start of this year's arrangements I made the Government's plans known.

In June the Government's expenditure plans for 1980–81 were set out, asking for a further 1 per cent. reduction on the revised targets that we set for 1979–80. The RSG allocations were made conditional on the transitional arrangements. It is for Parliament to decide whether to give the Bill a Second Reading. Further, the only power in my hands is to invite Parliament to approve an order introducing the transitional arrangements. It is for Parliament to decide whether it approves the order.

It will be for Parliament to approve the proposals. The arrangements will have to comply with general rules. I expect that these rules will affect very few authorities. However, the House will want to bear in mind that without such arrangements we shall have a continuation of the situation in which the majority of authorities will see resources drift to authorities less responsible and less prudent than themselves.

If anyone in the House feels that Governments have hesitated to go back on their plans once they have been agreed with local government, let me quote from the circular issued on 29 December 1976 asking for cuts in 1977–78. It said:
"The Government appreciate that to achieve this, authorities will need to consider a combination of lower staffing levels, less spending on goods and services, and increases in income from fees, charges, etc.rising at a faster rate than costs."
There is built into the rate support system an element of retrospection. The resource grant is fixed retrospectively. Indeed, the Government announced that they would reduce this year's increase order by £300 million during the course of the current year on the basis that the Government could no longer afford to pay the underlying totals. Of course, the House will be aware that in taking that decision—as it could be suggested, retrospectively—we were acting totally in keeping with the precedent established in 1976, when the previous Government did exactly the same thing.

This Bill is also concerned in a number of ways with the better use of resources. Part III introduces a new regime for direct labour organisations. The case for legislation in this area is overwhelming, and action is long overdue. There are endless examples of overspending and abuses within direct labour organisations. The last Government promised action, and that promise was the only action that we actually got.

Our objective is simply to cut waste and inefficiency. Authorities will have to put their DLO accounts on a sound footing, closely comparable with a commercial undertaking. Unless they can do this they would be better employed using their assets in a more productive area elsewhere. The Labour Party is always calling for more competition, and fairer competition, with the private sector, and can therefore enthusiastically support these proposals in the Bill in this respect.

Will the Secretary of State confirm that the object of part III is to ensure that direct labour organisations compete on terms that are neither more nor less favourable than the terms upon which private contractors operate? Will he give undertakings that if in Committee he is satisfied that any of the provisions or restrictions in this part of the Bill impose unfair burdens on direct labour organisations, he will accept amendments and that the regulations that he will have power to introduce will also ensure that there is fairness? In doing so, will he explain to the House why he feels that it would be unfair for direct labour organisations to undertake work outside the scope of public works? There is profit there, and they are deprived from obtaining that profit.

It would be wise for the direct labour organisations to prove that they can work effectively within their own areas before we consider whether we should extend the areas in which they trade. The Committee will want to consider the points that the hon. Gentleman raised—as will other hon. Members who are not on the Committee, when we come to the Report stage, if any other issues remain outstanding.

A second area where I believe we can cut out waste is planning. The overlap of jurisdiction of districts and counties on development control contributes to this problem. The Bill will make development control, except in respect of minerals and one or two other instances, a district matter. This will not, however, affect the strategic role of the county. Districts will continue to be obliged to have regard to the structure plan and to refer to me applications which would be substantial departures from the structure plan.

I also intend to reduce the case load of about 500,000 applications to local authorities—by about 20 per cent.—by raising the present limits of development permitted in the general development order. My proposals will include safeguards in sensitive areas such as areas of outstanding natural beauty, the national parks or conservation areas. Clause 63 gives a power to introduce a charging system, which I expect to raise £30 million in a full year. It will be universal, mandatory and simple. I also hope to bring forward shortly a range of other improvements to the planning system.

I have talked about the planning system, and that brings me to the next area of the Bill, which concentrates on better use of resources. One glance at any of our cities and the scale of unused or underused land is evident. But nobody knows just how much there is, although all the evidence is that most of it is owned by the public sector.

The land registers provided for in part X of the Bill are part of the drive to release this land. The provisions will enable the land to be identified. The provisions also give me, and my right hon. Friend the Secretary of State for Wales, subject to Parliamentary control, a power to direct public bodies to dispose of land entered on a register which is demonstrably surplus to their requirements. I intend to announce shortly where the first registers will be and the size of sites to be registered.

The Bill also repeals the Community Land Act, which has required nearly 200 circulars, guidance notes, directions and statutory instruments. Its administration has cost nearly £15 million and in three years it has provided less than 300 hectares of land for private development in England. Its passing will be unmourned.

The proper role of local authorities in bringing land forward for development is recognised and their powers are clarified in clause 67. The Land Authority for Wales is retained but in future it will operate commercially, free from the doctrine that public ownership is desirable in its own right. The scale of operations will remain roughly at the present level.

The previous Government reduced the population targets for some new towns and the designated areas now contain more land than is needed. The Bill provides for the de-designation of surplus land, but we are going further. This Bill also clarifies present disposal powers and gives the Government power to regulate the pace and direction of the disposals programme.

The final part of the Bill deals with derelict docklands in an exciting and challenging concept—the urban development Corporation. The problem of the inner city areas is stark; there is tragic decay of vast areas which—as in London and Merseyside docklands—were once thriving parts of the country's prosperity. The problems of Merseyside and London are of such scale and national importance that special solutions are needed.

I have made it clear—and I reaffirm today—that the Government intend to set up UDCs with the individual and specific approval of Parliament only in these areas, where single-minded agencies can secure development, bring in the private sector, and secure improvements of benefit to the areas and the country as a whole. There must be no loss of momentum in setting the bodies to work.

The Bill gives wide permissive powers but nothing happens in respect of powers, boundaries or financial regimes until Parliament considers these matters and approves the necessary orders. That gives the necessary flexibility for the widest possible consultation, particularly with the local authorities, and for the establishment of organisations tailor-made for each local situation.

My UDC proposals have been widely welcomed by many of those with knowledge of the areas concerned. There is much to be done. In the event of this Bill receiving a Second Reading today, I intend to appoint the two chairmen on a shadow basis, so that each can plan now to begin work effectively on vesting day. In respect of Merseyside I am pleased to announce that the chairman of Bibby's, Mr. Leslie Young, has agreed to take the chair and that Sir Kenneth Thompson, leader of the Merseyside county council, has agreed to be deputy chairman.

London offers an even bigger challenge and I am pleased to tell the House that Mr. Nigel Broackes, chairman of Trafalgar House Investments Ltd., has agreed to be shadow chairman. I know that the whole House will be particularly pleased that the right hon. Member for Bermondsey (Mr. Mellish) has agreed to be deputy chairman. I shall make further announcements shortly.

On a point of order, Mr. Deputy Speaker. Are any of these appointments paid appointments? Are they offices of profit under the Crown?

That is not a point of order. It is an interruption.

This is a major and central Bill in the Government's programme. It is one that seeks better value for money and a range of new opportunities for local government. Of course, the House can sympathise with the dilemma of the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley) when he decides how to oppose the Bill. He knows that much of the Bill is concerned with getting better value for money from the public sector. His party believes in the extension of the public sector as long as it is not expected to be accountable or efficient. He knows his party promised to reform direct labour organisations but was stopped by Labour authorities with inefficient direct labour organisations. He knows his party wants more open government, but he is going to resist my proposals for fuller and better information. He knows his party wanted to reform the rate support grant system but that it gave in to the pressure from Labour over spenders. He resents my decision to postpone the rating revaluation because his party has postponed every revaluation it could since the war.

The right hon. Gentleman finds himself in the traditional role of the social democrat, sandwiched between the Labour Party and common sense. For five days a week he preaches moderation and balance from the columns of the serious press. Then, at weekends, he sets off to Labour conferences to get it all out of his system by inciting Labour authorities to rate increases that could reach 40 per cent. or 50 per cent. I cannot understand why he does it. He convinces no one, let alone the extremists in his own party. One of them, the Labour leader of Lambeth, in a rare and wholly uncharacteristic flash of insight, described the right hon. Gentleman's policies this weekend as
"a recipe for disaster for the Labour movement".
Who are we to argue?

4.26 pm

I begin by thanking the Secretary of State for enabling me to win my bet with Councillor Ted Knight that the comment he made on Sunday would be the peroration of the right hon. Gentleman's speech. The right hon. Gentleman is nothing if not predictable, as is his Bill.

I want to make it clear at the beginning that the Opposition's objections to the contents of the Bill are reinforced by what I can only describe as our resentment at the form in which it has been presented to us.

Our resentment is the result of four specific facts. First, this is not a single Bill but a number of disparate proposals, each one justifying a Bill of its own, which have been pulled together under a self-contradicting long title which talks simultaneously about extending and reducing controls over local authorities. Because there are so many major issues within one binding, it is almost impossible for my right hon. and hon. Friends to make the sort of Second Reading speeches that are appropriate. It probably also means that the Government, on their present record, will introduce a guillotine into the Committee stage before we have reached the contentious proposals that are towards the back of the Bill.

Secondly, this is a simple enabling Bill which is more dependent on secondary legislation than any Bill has a right to be. Clause after clause amounts to asking the House to provide the Secretary of State with a power to do what he wants, when he wants and as he wants. Usually the powers that he is given are limited by no more than the most general statement of principle. In some cases—especially the calculations surrounding the unitary grant—the Secretary of State asks for enabling powers to introduce a system which he cannot or will not yet describe to us.

The Secretary of State talked about the operating details, but the operating details are what matters when calculations of rents and services are dealt with, as well as rates and all the other matters for which local authorities are responsible. What the right hon. Gentleman asks us to do is to give him the power to set the scheme of his choice, yet he blandly tells us that it may not be so bad because the power is so wide that if anybody else invents another power which conforms to his prejudices, or another scheme which abides by the rules he sets down, he will introduce that instead. The idea that the House should be asked to give any Secretary of State, let alone the present one, such wide discretion in clause after clause is intolerable.

Thirdly, the Bill contains proposals which, by any normal understanding of the words or any sensible use of English, are retrospective. I want to return to the point later in my speech, but, since the right hon. Gentleman was specific in saying that no retrospection was involved, let me put it to him in the simplest possible terms. Councillors all over the country are entitled under the law today to fix their local rates according to their judgment as to the necessities of the area that they represent. Yet if they exercise that legal right in a way that does not conform with the right hon. Gentleman's opinion, a Bill is to be passed which, in November, punishes them for exercising a right which was legal when they exercised it.

Does not that come under the definition of "retrospective"? I think that no one who understands these matters can believe that the right hon. Gentleman's analysis of the problem is anything like accurate.

Fourthly, and what is perhaps in a sense the most fundamental objection of all to the Bill's form, the Bill is described fraudulently. The Association of District Councils—Tory-controlled—says:
"We cannot accept the claim of the Secretary of State for the Environment that this package of financial and other measures offers a new deal to local government and…is a major advance in local freedom and local responsibility."
No one else can accept it, either.

The Association of County Councils—not Tory-controlled but Tory-dominated—says that it believes that the Bill
"must inevitably result in greater control by central Government notwithstanding the stated intention of the Long Title to relax controls."
I admit that in part there are certainly some relaxations of the onerous burdens placed on local authorities. For instance, if the Bill is passed, an urban authority will in future be allowed the right to fix such reasonable rates as it thinks proper for the hire of pleasure boats on water-ways and other places. I am sure that there will be much rejoicing in town halls that that is to come about, but that hardly compensates for what the Association of Metropolitan Authorities—Tory-controlled—says would be the major effects of the Bill. Sir Godfrey Taylor, who was knighted for his services to local government—not to the Conservative Party, because it was not a political honour—and is a member of the Conservative Party of long standing, was here in the House of Commons yesterday drumming up opposition to the Bill at a meeting upstairs. His association described the major effects of the Bill in this way:
"It would in effect mean that the Government specified the amount of expenditure and rate to be levied for every authority in the country."
The Opposition take the view that a Bill of this importance should be given a great deal more scrutiny than the present parliamentary timetable permits. It was certainly the view of some of my right hon. and hon. Friends that the entire Bill should be committed to a Committee of the whole House for proper discussion. I take the rather more modest view that clause 6, which concerns the change of functions, powers and roles between local authorities and national Government, should have a Committee stage on the Floor of the House. But, because we are reasonable people, we suggested yesterday, through the usual channels, simply that three clauses, the three retrospective clauses, which provide punishments for councillors who may today do things which are legal but be punished for them later, should be properly considered by the House in Committee of the whole House. The Government were not prepared to accede to even that limited request, and the Opposition are not empowered under the Standing Orders to move that a limited amount of the Bill be considered by the whole House in Committee.

Therefore, if the Bill gets a Second Reading this evening, we propose to move that the entire Bill be committed to a Committee of the whole House. I have no doubt that those guardians of our freedom who these days sit on the Tory Benches will walk slavishly into the Lobby with their party leaders and the Secretary of State not only to vote for a retrospective Bill, an enabling Bill and a Bill which changes the balance of power between local authorities and national Government, but also to make sure that it does not get proper discussion on the Floor of the House.

We at least make our position clear. Part of the Bill has such important constitutional consideration and so much constitutional effect that we believe that it ought to get much better consideration than the present programme allows. I have talked about constitutional consideration because much of the Bill, perhaps the whole of the Bill, is concerned with local authority autonomy. I want to make my own position on that subject absolutely clear.

Of course, I accept that local government does not, cannot and should not possess powers which are intrinsic to itself. The local government authorities of this country, urban and county authorities, possess what powers they are given by Government; and those powers that the Government give, the Government can take away. But if the powers that exist are suddenly subject to an arbitrary shift and an arbitrary change, if the balance is suddenly swung dramatically away from town and county halls, if they lose their rights and Whitehall steadily increases its controls, I believe that democracy is deeply damaged by that process.

I know that very many Conservative Members believe that, too They have been part of the discussions with the Association of County Councils and with the local authority associations in general, in which it has been generally agreed that it is a bad thing for local authorities to have powers snatched away from them in a way which undermines local democracy, as many people of this country believe it works best for the people of individual regions.

Did the right hon. Gentleman believe in that principle when he was a member of the Government who took away local authorities' powers to determine their own education structures?

That question is asked during every such debate. I give exactly the same answer. No doubt the hon. Gentleman will remember it for next time. Since 1870 it has been established that education is a national service locally administered. That was Mr. Forster's view of education. It was Lord Butler's view of education. It was written into the preamble to the Education Act 1944. That distinguishes the education service form other local government services. That is the traditional, historic and generally accepted difference between the two things.

But I want to talk about the operation of the Bill in relation to local autonomy and the powers of the local community, particularly in respect of part XVI, which will enable the Secretary of State to set up urban development corporations and urban development areas.

The Secretary of State—in, I am sure, one of those slips of the tongue which he corrects from time to time—said that this part of the Bill was about dock-lands. It is not about docklands. It is about lands in general. It may be that the Secretary of State for the time chooses to use the Bill simply for two specific areas, but the powers that he gives to himself and his successors can be applied anywhere in the country.

Clause 108 will enable the Secretary of State of the day to
"designate any area of land as an urban development area."
It gives him the most wide powers of designation. It says:
"If the Secretary of State is of opinion that It is expedient in the national interest to do so, he may by order…designate any area of land"
for that purpose. When he does so designate the area of land, he removes from the local, democratically elected public representatives their rights over housing, over land and over planning, and he appoints in their place nominees of his own who are given the most extraordinary arbitrary powers.

Clause 110 describes what those powers are and what the nominees are entitled to do, which includes
"anything necessary or expedient for the purposes of the object or for purposes incidental to those purposes."
It means, in fact, that the Secretary of State can set up such an area, remove democratic control, place control in the hands of his nominees and give them the most extraordinary discretions—certainly discretions to ignore the normal town planning—

I can do none of those things under the Bill. Only Parliament can do them.

Parliament's opportunity comes after a 90-minute debate and a single vote in this House and in the other place. That is the opportunity that Parliament possesses before it gives to a body of unelected men the power to do

"anything necessary or expedient for the purposes of the object or for purposes incidental to those purposes."

Perhaps my hon. Friend will allow me to finish this point, with which I think he will probably not disagree.

It think that it is possible to argue about the economic merits of the Secretary of State's proposals. My hon. Friends will argue—and I shall agree with them—that the interests of the area, the rights and possibilities of developing the area and the prospects of getting dockland moving again are being inhibited by this new proposal, which is holding up developments which would take place were it not for the uncertainty that the Secretary of State has caused by saying that he insists on starting again from scratch.

Whilst I concede at once that there are two economic arguments, can there be two democratic arguments about this? If right hon. and hon. Gentlemen opposite have any doubts about the propriety of giving the Secretary of State such powers, let me remind them that under this Bill a future Labour Secretary of State could actually set up the urban development corporation of Lewisham, Bromley, or Wandsworth and Merton, or Solihull and Sutton Coldfield, or South Birmingham and Solihull, and give remarkable powers to nominees in those areas. My right hon. Friend might even become the actual chairman of ours. We might have Mr. Ted Knight as the deputy chairman, since he figures so largely in the Secretary of State's mind. We might actually get some houses that Lewisham needs to have built in Bromley; some of the houses that South Birmingham needs to have built in Solihull; and some of the development necessary for Wandsworth in Merton.

I am not suggesting that we should use any of these arbitrary powers, but are the guardians of our liberty on the Conservative Benches going to vote future Secretaries of State the right to do such a thing?

The point my right hon. Friend is making is, I believe, very apposite, because the Greater London Council is now divesting itself of its strategic housing role, I believe, and I would have thought that the temptation to a future Labour Secretary of State to set up urban development corporations in all the outer London boroughs to provide homes for the overcrowded inner London boroughs would be very great.

I hope my hon. Friend will not tempt me to commit the Opposition to such a policy, although I see its attractions.

The point I am trying to make is related not to its development merits but to its constitutional demerits and whether any Government should be given such powers by Parliament. I hope that hon. Members opposite, including the few of them who have actually read the Bill, will consider that point very carefully.

If my hon. Friend will allow me, I must take refuge in the point made by the Secretary of State. This is a long debate and a complicated subject. Many people want to make speeches, and I think I should proceed to the end so that speeches may be made from my own and opposite Back Benches rather than prolong my own speech.

I move on by referring to the points made by the Secretary of State about his proposals for capital control. He spoke of them so warmly that I almost forgot that they were not his own idea. He spoke of them as if this were something that he had been wanting to do all his life. They are, of course, quite different from his original capital control proposals. This is the one area in relation to local government in which he was persuaded to change his mind. However, the conversion was so complete that he spoke of them today as if there had never been a better possible idea in the world. I do not think that the present ideas, now that the Secretary of State has been persuaded to change his mind, are all that bad. I believe in some ways they offer an extra freedom, which I am glad to see local authorities possess.

What disturbs me and local authorities too about them is the discretionary right possessed by the Secretary of State to announce that one or another local authority is not conforming to the rules and therefore is to be subject to a much more stringent safeguard. As the rules now stand, the blocks are allocated and there is a 10 per cent. discretion on each one, which I take it is intended to allow for the inevitable overlap between one year and another when contracts take longer than was intended. But if there is constant overspending, the Secretary of State may remove the 10 per cent. discretion and may require authorities to make specific application for individual capital projects.

I also understand—no doubt the Minister of State will correct me if I am wrong—that, if that new imposition is made, the local authorities which still go over the figures stipulated by the Government will be behaving in a way that is ultra vires and will be subject to legal penal- ties. I think it is quite intolerable that the Secretary of State should be able to put local authorities in that position, particularly when, by his own admission, they may face a situation in which a contract, through no fault of theirs, moves from year to year.

I knew the Secretary of State would say that, because in his opening speech he said "I will exercise these extra onerous arbitrary powers only if the behaviour of the council has been to flout deliberately the 10 per cent. ceiling." But what is wholly intolerable in a democratic society is that rules governing councils are determined by the Secretary of State's personal judgment about their motives. Time and time again—and it will appear even more forcibly when we talk of revenue control—the Bill gives the Secretary of State not only the right to make his own decisions about the performance of local authorities, but their performance is judged by his opinion of their intentions, which seems to me to be fundamentally bad law. [An HON. MEMBER: "He said so."] The right hon. Gentleman said that, but as I heard him speak and as I wrote it down, although I know that Hansard traditionally has trouble in writing down the contentious parts of the right hon. Gentleman's speech, I believe that the word "deliberately" will appear. That is what he said and that is, of course, what he meant.

I turn from that to the second area of extended control—that is, the extended control over revenue. Does the Minister for Housing and Construction wish to say anything?

On a point of order, Mr. Deputy Speaker. My colleague the Minister for Housing and Construction was originally making this interruption, because inadvertently—I hope it was inadvertently—it was his feeling that the right hon. Gentleman was casting aspersions upon the technical competence of Hansard. [Interruption.] I know that the right hon. Member would not have intended to do that and that he would want to make quite clear that he was not doing so.

No. I make it absolutely clear that what I said about the error in Hansard last week was in no way intended to reflect on the Hansard authorities. [HON. MEMBERS "Hear, hear."]

I return now to the revenue aspects of the Bill. They have four essential features. The first is that the Government will assess each authority's spending need. That assessment of need is euphemistically called "standard expenditure", and it is to be calculated in a way which the Secretary of State has not yet thought fit to reveal to us. Secondly, there will be a calculation of standard rate poundage calculated not for each individual authority but for each class of authority, and then there will be a computation of the amount of rate receipts likely to be obtained by each authority, according to the standard rate poundage. Then the standard rate poundage will be deducted from the standard need and the Government will meet the balance of the two. If the authority spends more than the balance, the Government may meet some of the cost of the excess, but, as I understand it—andI am glad to see that the Secretary of State is nodding his head in agreement—to a diminishing degree, in order that there should be a deterrent.

I know no one outside the Department of the Environment—and the Secretary of State will know better than I that it is not even a unanimous view within the Department of the Environment—who believes in the Government's ability to assess the spending needs of individual local authorities. I ask the Secretary of State whether he has any idea how the assessment is to be made. We all know that he rejects regression analysis as a method. He never speaks on these subjects without dealing with what he regards as the inefficiency and unsuitability of that scheme. How is he going to calculate the needs of the various authorities? May I ask him or the Minister of State when he winds up the debate to be very clear in answering a question related to that point? Will he impose a method of calculating the needs of authorities if he cannot obtain the agreement of the local authority associations for a scheme that they regard as equitable, rational and fair?

There is a very great fear in the local authority associations amongst Conservative as well as Labour members, based partly on previous actions and previous statements of the Secretary of State, that the formula will simply represent his arbitrary prejudices of how local authorities ought to spend their money. The Association of County Councils is a body on which there is one Labour council. I do not deny the ability of the councillors of Durham to sway colleagues in bodies in which they take membership, but I think that the Association of County Councils, with 21 Conservative members to the one Labour representative, ought to be taken seriously on the Tory Benches. The Association of County Councils says that it fears that the new scheme will enable the Government to adopt any grant distribution pattern that they please. I had hoped that some Tory Members would agree that it is intolerable for the Secretary of State to say that he wants the power to adopt any grant mechanism that he pleases but cannot say what it is today. He says that he is interested to hear other people's ideas about what it may be, but he wants the power to do exactly what he wants and that is what he asks the House to provide.

It is impossible to calculate the needs of individual authorities in a way that is both efficient and honest. The Secretary of State puts himself into an appalling dilemma in committing himself to construct such a formula when no one has the faintest idea of how that formula can be made up.

The other half of the calculation can be made more honestly, but it can hardly be made more sensibly. Irrespective of our mutual failings in dealing with rate revaluation—and I include my party—if there is a system of rate distribution and of grant distribution which is in part dependent upon rateable values it is nonsensical to base it on rateable values which are 10 or more years old. It is nonsensical to say to the boroughs that the Government will share out the money according to rateable values when the rateable values might have been appropriate in 1973 but certainly are not appropriate in 1981.

Why did not the Labour Government do something about it?

The Minister should know better. We did not do anything because we were not running the proposed scheme. That may have escaped the Minister's attention. In addition, we said that a Labour Secretary of State should have the power not only to have a review when he chose instead of once every five years but to have a partial review. If the Bill is passed, the Secretary of State will be able to order a rate revaluation whenever he wants one. It will not have to be a complete rate revaluation. He can choose any group or class of hereditament. That is a wholly arbitrary power. The Secretary of State can decide to revalue domestic properties but not houses. He can decide to revalue a particular class of building but not another.

I agree with the three local authority associations which say in unison that if revaluation is constructed in a way which allows the Secretary of State to pick and choose those parts which are revalued and those which are not, the honesty, the objectivity and the visible impartiality of the rate valuation system will be damaged crucially and perhaps totally destroyed.

Bad as the actions are to be taken in the name of the block grant, the proposals for the transitional measures are worse still and the worst of all. The Secretary of State, in his normal bland manner, said that the object of the unitary grant is to allow local authorities to determine the rates which they think to be right for their area, even if they receive less Government assistance. The object of the transitional measures is to coerce certain local authorities into holding down their rates to a figure stipulated by the Secretary of State. For reasons which the Secretary of State has thought it right not to reveal to us, he has decided that outside London the appropriate rate this year is 119p.

Perhaps the Minister will explain what the 119p is, how it was arrived at and whether the rumours passed from his Department to certain local authorities that it is soon to be revised are true or false. The Secretary of State has said that any local authority which charges a rate above that figure may be in trouble. The trouble will be that they will receive a smaller share of the increase order and the rate support grant than otherwise.

The Secretary of State said something else. He said that he will allow a margin of error. He will not say what that margin of error is—another example of his arbitrary power. He says that when withholding money he will judge according to a number of criteria. London is not subject to the 119p rule. In the operation of the rules of simplicity in which the Secretary of State believes so strongly, the standard uniform rate for London, according to the Department of the Environment, is:
"ES-N-B / NS X P"
Apparently it is essential that local authorities in London do not exceed that rate poundage.

The transitional arrangements will result in certain councils being penalised if they go beyond the margin which the Secretary of State stipulates as being appropriately above 119p. How will he judge whether they are to be penalised? I asked the Secretary of State that question during the rate support grant debate. The House will know that two Hansards have to be consulted because the first was corrected. The first Hansard of 16 January 1980 stated that he would judge according to their spending and to their rates. The correction, which appeared on 17 January, which the Secretary of State was kind enough to confirm, was that he would judge according to their rate poundage, their spending and "speeches". If the right hon. Gentleman meant "spending and rate poundage" and "speeches" was a slip of the tongue, he has only to say so. I make more slips of the tongue than most and I shall forget about it if it was a slip of the tongue. If it was not a slip of the tongue, it is a matter of great importance. In this country we have not reached a time when councils and councillors are penalised not because of what they do but because of what they say.

It is extraordinary for a Secretary of State to announce that men and women are to be penalised for their opinions. That great guardian of our public liberties, Lord Denning, has nothing to say on this subject. However, local Labour authorities in Leicester on Saturday were unanimous that we should give Lord Denning an opportunity to adjudicate on this issue. I assure the Secretary of State that if there is the slightest suspicion that the increase order is being withheld from councils because of councillors' speeches, all the necessary and proper legal processes will be used. Since I am in a benevolent mood, I say to the right hon. Gentleman again that if he wants to say that the word "speeches" was an error nobody will be more pleased than my right hon. and hon. Friends and the matter can be forgotten.

I am grateful to the right hon. Gentleman, but the House has covered this ground. There was a question about whether the original Hansard report of my reply to a question was accurate. As the House will remember, I said that in my view the original report left out the word "speeches". We established our position clearly. I used the word "speeches" and I said that I used it. In the context of the decisions and the speeches, I meant it.

I have done my best for the Secretary of State. He must not expect me to bring in the meat pie with the file inside when the time comes.

I turn to several other matters which require a moment of the House's attention. They deserve more than that, but because of the nature of the Bill they cannot be given more time. In all quarters of local government there is unanimous opposition to the Bill's major provisions. However, all quarters of local government will want to thank the Secretary of State for implementing the major proposals of the Robinson committee. We did not do that. It is ironic that a Bill which severely diminishes the powers of local government should acknowledge that many councillors may make a considerable sacrifice by spending time in county and town halls. I am glad that that is provided for.

I am particularly glad that the services of major chairmen are to be assisted under the terms of the Bill. There are other important parts of the Bill—although in the context of other issues they may seem minor—on which my hon. Friends and I would like to comment, such as the charges to be levied for planning applications and the repeal of section 8 of the Allotments Act 1925, which appears in schedule 5. We shall be forced to raise those matters in Committee because the Bill prevents us from raising them on the Floor of the House.

There are two remaining issues to which I should like to refer. The first is direct labour. I say to the Secretary of State, who anticipated my opinion on the subject—rather rashly, as is his wont—that I have no doubt about the necessity for direct labour organisations to be run efficiently. Equally, I have no doubt that most of them are run efficiently. Most local authority direct building organisations obtain their major contracts through open competition with private builders. They obtain those contracts despite the extra costs incurred in providing security for their employees, in providing safety measures, and in training young craftsmen. Those extra costs are rarely borne by private contractors.

Twenty years ago I was privileged to be the chairman of a direct labour organisation. We constantly competed in the open market against Wimpey, Terson, Laing and Gleeson. We obtained the contracts because we offered the lowest price, and when we completed the work below our contract figure we gave back the money to the local authority rather than keep the profits. Most local authorities' direct labour departments will be able to compete adequately under the terms of the Bill.

I share the view that since we want direct labour departments to compete with private builders, we must make sure that they do so properly. I vividly remember that they were highly successful in Sheffield in obtaining private contracts in open tender, against private companies. We regretted that we could not just move our equipment across the road to build a private store or any other sort of private building. We had to take cranes and machinery to the other end of the city. I want the competition to be fair and genuine. I want private and public companies to compete, but I believe that more often than not the public sector will win, which will be a credit to it.

It is expensive nonsense to expect public works departments' direct labour organisations to go through the long bureaucratic process of controlling repairs and maintenance. I fear that the right hon. Gentleman has deep prejudices about the building industry and that he believes that the public sector is usually inefficient and that the private sector is the paragon of all commercial values. I should like him to visit Birmingham—ideally before May, when there will no longer be a Conservative majority—and see what is happening to private builders in my constituency who are asked to carry out repairs and maintenance work. They are leaving the work half done while they move on to more remunerative jobs, to the enormous inconvenience and sometimes to the danger of the inhabitants.

We shall press for the sensible use of direct labour, and we have no doubt that many authorities will be able to demonstrate how sensibly it is used already.

I should like to comment on the Community Land Act. This is the fourth occasion this century that Conservative Governments have repealed Acts which provide that the community receives some of the profits that accrue to private landlords as a result of community activities. The Liberals attempted to do so 50 years ago. The Conservatives repealed that legislation. This is our third attempt, and the third repeal. I am delighted that the Land Authority for Wales remains—a fact which the Secretary of State could not even bring himself to tell the House.

I must help the right hon. Gentleman in case Hansard does not record the situation. I said specifically that the Land Authority for Wales will continue. I am not too worried that the right hon. Gentleman did not hear that. He has not listened to any other part of my speech either.

If it will make the right hon. Gentleman look any happier than he has looked for most of the afternoon, I shall beg his pardon for the fourth time. I am delighted that he referred to the success of the Land Authority for Wales. That is a credit to his open-mindedness and his objectivity. When the Labour Party is returned to power, we propose to extend the success of the Land Authority for Wales into England and beyond.

If a private landlord, through no industry, effort or activity of his own, suddenly discovers that the community has changed the use to which his land is put, it is palpably wrong that he should receive the enormous benefit and bonus rather than that the community should enjoy the fruits of its own decision. We must find a way in which the betterment of land will be to the credit and advantage of the whole community rather than to the person who temporarily and fortuitously has the good luck to own that land.

That is best achieved by substantial sectors of land being taken into public ownership. That would make it appreciably more difficult for a future Conservative Government to repeal such an Act. Some method of recognising and representing the community's interest must be found—and found it will be. I do not expect it to be found by the right hon. Gentleman. His entire Bill is a manifestation of the fact that he is not concerned with the community's interests. He is concerned with two interests, the commercial interest and his obsession with centralism—government run from Whitehall, at the discretion of the Secretary of State, according to his judgment and his rules. For that reason above all others, we shall vote against the Bill.

Before I call the first speaker from the Back Benches, I remind the House that a great number of right hon. and hon. Members wish to speak in this important debate. The 10minute limit on speeches will operate from 7 pm until 8.50 pm, and I hope that it will perhaps operate before then.

5.8 pm

I offered some critical observations on the first version of the Bill during the debate on the executive and public bodies on 10 December 1979. This revised version shows a welcome reduction from 288 pages to 210 pages, including no fewer than 105 pages of schedules. It still compares unfavourably in length with the 146 pages of legislation, including the Finance Act, with which the reforming Parliament of 1912 was content. In those days Parliament had shorter Sessions and fewer Committees, but it spent twice as much time debating public expenditure.

It is a happy chance that the Bill was mistakenly introduced into the House of Lords in the first instance. However, the fact that this revised version contains some worthwhile modifications only serves. to fortify me in the opinion that there should be some form of pre-legislation procedure, which would enable the House to express a view on the general principles before Second Reading, which offers no chance of exploring amendments before the Committee stage. As I said in the procedure debate on 2 February 1976, if the Community Land Act had been introduced as a draft Bill we should at least have got rid of the incredible and replaced it by the unacceptable. At least some of the absurdities would have been removed. I also advocated during that debate that when the House considered major policy changes in relation to a matter such as London's docklands, there should be a preliminary consideration of what was involved.

In spite of the slimming process that it has undergone, the Bill contains too many Bills rolled up into one measure. There is far too much reliance on enabling provisions, and there is certainly too much for anyone—especially in 10 minutes—tocover in any way the matters raised in the Bill. I am very much concerned about the planning provisions, for example, but there will be no time to speak about that subject.

Those of us who read the Local Government Chronicle will know that it is by no means a vehicle for extreme expressions of opinion, but what it has to say this week is this:
"The revised local government Bill is a curate's egg of which the edible parts are spoilt by provisions which, to correctly pursue the metaphor, can only be described as stinking."
I warmly welcome the abolition of the Community Land Act 1975, which has proved, as many of us forecast, a costly and futile exercise. I also warmly welcome the possibility of creating new corporations to regenerate urban areas, but I incline to the view that, as drafted, the Bill is too wide in its provisions. I am not impressed, from long experience, by reliance upon the so-called affirmative resolution procedure.

I am much more doubtful about the wisdom of the financial provisions of the Bill as they stand. I refer particularly to the new unitary grant system and the capital spending controls. If these are not substantially changed, I fear that the Secretary of State will find that he has opened a can of worms—and a can of rather fat and costly worms at that.

This is a Bill that is intended, according to the first sentence of the preamble, to
"Relax controls over local government".
No doubt there is considerable merit in what the Secretary of State has had to say about that. The proposals in part I and the first batch of schedules are very good—as far as they go. I am glad to see the relaxation of Whitehall control over such matters as mortuaries and slaughterhouses and fees for tests under the Rag Flock and Other Filling Materials Act 1951. But these provisions pale into insignificance beside the new financial controls that are now envisaged.

No one, I am sure, will dispute the need for Government control over the totality of national public expenditure—including, necessarily, that of local authorities. So I do not quarrel with the Government's general objective, bearing in mind, for example, that the total contribution by national taxpayers to local government in the London area alone in 1977–78 was £1,609 million. But I share very strongly the anxieties which have been expressed by all the local authority associations—and I have never known them to be in such a measure of agreement—about the way in which the Government propose to exercise their control.

Like the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley), I am glad that the Government have modified the original proposals to omit the system whereby an authority would, in effect, have been prevented from making any payment in respect of capital expenditure without the consent of the Secretary of State.

Equally welcome is the decision not to make expenditure by parish or community councils count against the expenditure allocation of district and county councils. It is a good thing that there has been this little pause between the first Bill and the second. There has been some improvement, but the Bill still contains proposals which are not merely objectionable but will, I submit, prove to be unworkable.

With regard to the central Government we know that there has never been any distinction, regrettably, between capital and revenue spending. Because it all comes out of the Consolidated Fund, it is all treated as though it were revenue. It has always been one of my complaints about the Treasury that it cannot tell the difference between above and below the line; it cannot tell the difference between capital and revenue; and it cannot tell the difference between investment and consumption. It budgets only in terms of annual packages.

Trying to reconcile the pattern of local government expenditure, extending over more than one year, with an annual allocation, as my own Northumberland county council has pointed out, will be "a nightmare".

I hope that the Government will heed the advice that they have received from the local authority associations and either exclude direct financing from the rates from control under the new system or, perhaps preferably, use a mechanism to control the amount which can be borrowed. That would be just as effective and much more in line with present practice.

I turn now to the new rate support grant, which involves replacement of the needs and resources element of the present grant by a single block grant, adjustable at the discretion of the Secretary of State. I think that it is too wide a discretion in any circumstances. I know from my experience that the present system is far from ideal. It is very complex. I used to say that to sort out all the factors that we were feeding into the administrative machine required a computer so sophisticated that it would demand, when we put the question to it, "First sacrifice a goat."

I am not defending all the aspects of the present system. It is complex but not as complex, as the right hon. Gentleman has pointed out, as the basic proposal in the Bill. As the Association of County Councils has said, the criticism of the present system is concerned with fairness, not with the ability or otherwise to influence the national total of local spending.

As to fairness, it will probably never be possible to satisfy everyone. When I settled the rate support grant, I was criticised by the cities for giving them too little and by the county councils for giving the cities too much. Since then, the Labour Government in every year tilted the balance against the rural areas, so that the rural deprivation is perhaps now the most serious social problem that we face.

But all that is a matter of judgment. It can be settled within the framework of the existing system. I agree with my right hon. Friend the Secretary of State that the weakness of the present method of assessment of the needs of local areas is that, because it relates retrospectively to expenditure actually incurred, it tends to reward extravagant authorities at the expense of thrifty ones.

My authority, the Northumberland county council, is a thrifty authority. One would have thought, therefore, that it would welcome the Bill, but it does not. The effect of the new Bill is to use a sledgehammer to crack a nut and to penalise everyone in order to deal with a problem which, although we know it exists, could be dealt with in some other way.

I well understand the Government's desire to ease the present links between a local authority's spending demands and its rate support grant. But I share the grave doubts which have been expressed whether the new block grant will achieve its objectives. I think that it will be even more complex than the present system. It involves an unnecessary and, to my mind, undesirable degree of Government intervention.

I should like to quote once again that very moderate organ of opinion, the Local Government Chronicle. On 7 December 1979 it said this:
"Even if a team of Department of the Environment officials is permanently installed in every local authority, it will still be impossible to make unitary grants work in an efficient or fair way."
That is very strong criticism, and the Government must take into account that that is a view shared by many people with long experience of local government—Conservatives, Socialists and Liberals. The Government must take note of the anxieties which have been expressed by local authorities and local councillors everywhere in the country.

In Northumberland, an all-party plea not to proceed to shackle local government in this way has been made by the county council, with the support of all the six district councils in the county. I hope that the Secretary of State will recognise the validity of their concern and agree to hold further discussions with the local authority associations about their alternative proposals. There are alternative proposals; they ought to be considered. Indeed, I for one, without a firm assurance that these further discussions are to take place, would find it difficult to support the Bill, in spite of my approval of its intentions and many of its provisions.

By all means control the taxpayers' total contribution to local government, by all means seek as fair a distribution as possible between the various parts of the country and the various types of authority, between cities and rural areas, but do not reduce the effectiveness of locally elected members of councils.

I shall quote a typical reaction to the Bill that came from Councillor David Adams, mayor of Castle Morpeth. He chaired the joint meeting of the seven councils in Northumberland. That area is one of the most disadvantaged under the existing system, yet it still prefers that system. He said:
"Do not rob the local electorate of their democratic right to run their affairs through the ballot box."
One of our great constitutional lawyers, F. W. Maitland, said during the last century:
"The local authorities must be left to flounder and blunder towards better things…There is no good in half trusting men; they should be trusted fully or not at all…give the local authorities a large room in which, if they can do no better, they can at least make fools of themselves upon a very considerable scale."
No doubt in the nineteenth century Professor Maitland could not foresee the extravagances of modern local authorities. However, the truth remains. If local electors are dissatisfied with the running of local affairs, they have a remedy in their hands They must be encouraged to use it.

The alternative is further erosion of local democracy. There will be even greater difficulty in finding people who are willing to serve on local councils. Conservative Members have often said that there is nothing wrong with Britain that a little less legislation and a little less Government interference would not improve. In so far as the Bill flies in the face of that belief, it will require a great deal of further thought and discussion before it deserves to reach the statute book.

5.21 pm

As requested, I shall make a brief speech, and I shall concentrate on that part of the Bill that personally affects me—London's docklands. When the area became derelict in the early 1970s, I made a speech in the House to the effect that this was the greatest chance that London had had since the fire of London. It provides an opportunity for the use of imagination, great plans and great finance and an opportunity to build something for the future of which we could all be proud.

At that time I declared my support for a development corporation. I recognised that it was the only machinery that could achieve that. Anyone who doubts that need only look at the record of development corporations. They have built new towns that are the pride and joy of Britain. Those new towns were built under different Governments. I wanted a development corporation 10 years ago. However, I wrote to the previous Prime Minister, now the right hon. Member for Sidcup (Mr. Heath), and I received a good reply. The present Minister of Agriculture, Fisheries and Food stalled democracy by one of the oldest methods—he set up committees of inquiry. For several years we had nothing but committees of inquiry. They produced three reports. One report suggested that the whole area should become woodland.

The most democratic gentleman, the right hon. and learned Member for Hex-ham (Mr. Rippon), then set up the dock-lands joint committee, men of great integrity. Within the limits prescribed, they did a good job. However, they do not have the powers of a development corporation. It may be said that such powers should now be given to them. However, the very concept of a development corporation is as right today as it was then.

When the Secretary of State asked me two weeks ago to become vice-chairman, I accepted the invitation in the spirit of challenge in which it was made. I may add that I would have loved to have been chairman. I have always been one who wanted to be a boss.

Over the years I have argued in favour of a development corporation and I now have the opportunity of becoming involved. I know that I shall be criticised, but I have asked everyone what purpose I should serve by not being a member. What purpose would I serve if I refused on the basis that contrary critical views might be expressed? What purpose would I serve if I walked away? Whatever I may be, I have never been gutless, and I therefore accept the challenge.

It is imperative that there should be local government representatives on a development corporation.

I know that my hon. Friend will say that it is an office of profit. I shall come to that point. I have asked the Secretary of State whether local representatives are to be included on the development corporation. I cannot state his final reply—[Interruption.] My right hon. Friend the Member for Birmingham, Sparkbrook (Mr. Hattersley) appears agitated, but I have no hesitation in saying that local authorities will be represented on that development corporation if they so wish. The Secretary of State will invite them.

The powers embodied in the proposed legislation offer a great chance to the development corporation. I accept the challenge on the basis that it gives me a chance to be inside and to protect those whom I represent.

I shall give way as my bon. Friend appears to be agitated. His question must be very important.

My question has nothing to do with any office of profit. I wish the chairman well when he has my right hon. Friend as vice-chairman. Does he agree that the key to success of any urban development corporation is the dowry that it brings to the area? How much cash will urban district corporations have?

Of course, that is right. If I had known that my hon. Friend wished to ask that question I would have given way ages ago. A development corporation that has just been set up would be worse than no committee if no money were available. What a joke! I cannot imagine what entertaining business might be under discussion. I wish to put it on record that the Docklands Joint Committee—within the limitations of its authority, power and finance—has done a first-class job. I shall not walk away from that but rather build on it. I hope that within the next decade we shall be inspired to regenerate that land and that it will become a credit to all.

Of course, there is a salary attached to the job. However, as I said to the Secretary of State, I shall not take the salary. Therefore, the job is not an office of profit under the Crown. I shall not leave the House. If I do not take a salary, I can stay here. I have been a Member of Parliament for 34 years—

My right hon. Friend appears to be agitated. Does he wish to say something?

I was anxious for someone to take this green card out for me. As my right hon. Friend is doing jobs, perhaps he will do that one as well.

Let that be recorded. I am not taking any salary for the job and, therefore, the job cannot be regarded as an office of profit under the Crown. In those circumstances, I shall continue as a Member of Parliament.

I know that my remarks will be read by others outside the House. I have represented my constituency for 34 years, and I think that I have given it fair service. I think that my constituents trust me. My constituents will understand why I am taking part in the development corporation. I want to continue that work. I cannot continue it if I do not join the development corporation and so protect the interests of my constituents as well as those of others. I care about the social needs and outlook of that area as much as any hon. Member. Against that background, I accepted the job.

My parliamentary career is coming to an end. I wish to be certain that I can continue the same type of work for which I came into the House. I believe that the development corporation will allow me to do that. I shall go in with enthusiasm and with guts. I shall do what I can to make this great London of ours something to be proud of.

5.28 pm