House Of Commons
Tuesday 12 November 1991
The House met at half-past Two o'clock
Prayers
[MR. SPEAKER in the Chair]
Message From The Queen
Queen's Speech (Answer To Address)
The Vice-Chamberlain of the Household reported Her Majesty's Answer to the Address, as follows:
I have received with great satisfaction the loyal and dutiful expression of your thanks for the Speech with which I opened the present Session of Parliament.
Private Business
London Underground (Safety Measures) Bill Lords
Order for Third Reading read.
To be read the Third time tomorrow.
London Underground (King's Cross) Bill
Order for consideration read.
To be considered tomorrow.
Commercial And Private Bank Bill Lords
Order for Second Reading read.
To be read a Second time tomorrow.
Oral Answers To Questions
Education And Science
Student Loans
1.
To ask the Secretary of State for Education and Science if he has any plans to change the student loans scheme.
No, Sir.
Does the Minister agree that the loans scheme has turned out to be an administrative nightmare and that it has caused a great deal of bureaucracy and hardship to students, especially since they have been removed from the safety net of social security? Is not it hard that all those measures have been placed on students at a time when they find it particularly difficult to get vacation jobs or part-time jobs in term time and when those who graduate find it increasingly difficult to get jobs to pay off the overdrafts that they have had to incur as students?
I do not agree with any of those premises. First, the scheme has been extremely well run and the loans company has met its target of getting the loans to those who have applied within 21 days in almost all cases. The majority of students have not felt obliged to take out loans as they have not thought it necessary. Those who have done so have enjoyed the benefit. The loan plus the grant is 30 per cent. higher than the grant alone two years ago. There is no evidence of significant student hardship, despite a somewhat half-baked campaign by the National Union of Students to try to suggest that there is. We have provided an access fund to the institutions to enable them to deal with the few cases of hardship that genuinely occur.
If the situation is as the hon. Member for Denton and Reddish (Mr. Bennett) describes it, why has the number of applicants to advanced education increased and why does the number of admissions to universities and polytechnics show a substantial increase? Will my right hon. and learned Friend confirm that student support in the United Kingdom continues to be the most generous in the western world?
I am unable to answer my hon. Friend's first question; it puzzles me, too. We had been told that the loans system would deter people who might otherwise have gone into higher education because of the so-called financial hardship that they would face. In fact, since it has been introduced, the rate at which student numbers have increased has been unprecedented and we expect it to increase by 10 per cent. again this year. All the evidence refutes the nonsense that we have heard about the impact of the student loans scheme.
My hon. Friend is right that we have the most generous system in the developed world for supporting students. I make no apology for that. It is Government policy to continue to extend opportunity for students in that way.Why is the Secretary of State so contemptuous of the evidence about student hardship when it comes from sources such as the citizens advice bureaux and from scores of cases sent to him by hon. Members on both sides of the House? Does the Secretary of State recognise that the access funds are in no sense a substitute for student eligibility for social security and for vacation hardship allowance and that mature students in particular have been plunged into severe hardship by the Government's policies? In the light of that, will he reconsider the abolition of vacation hardship allowance, especially as it was abolished in clear breach of undertakings given in the House that it would remain as a safety net following the abolition of social security provision?
I have looked at the evidence of so-called student hardship and I do not accept that the "scores" of cases stand up to examination. There have always been some students in serious difficulties. Mature students and those who do not receive the parental contribution towards their grant have always been a problem. It is somewhat eased for some by the student loans system. It can also be addressed by using the access funds provided by the Government. The average student is much better off under our arrangements of a combined grant and loan scheme than previously. The few that are not—those with high housing benefit—can be helped through the access funds. The vacation hardship allowance was almost unheard of and was not being demanded. When we abolished it there was scarcely any take-up.
Grant-Maintained Schools
2.
To ask the Secretary of State for Education and Science how many schools in Hampshire have now applied for and achieved grant-maintained status; and if he will make a statement.
Four schools in Hampshire have applied for and achieved grant-maintained status. I am pleased that the parents of pupils at those schools have voted to take up this option for their schools. I hope that many more in Hampshire and, indeed, throughout the country will follow their example.
May I take this opportunity to congratulate Hardley school in my constituency which was the first in Hampshire to achieve grant-maintained status? Does my hon. Friend accept that opting out, as it is called, is a misnomer because schools which achieve grant-maintained status are opting into a new educational regime of higher morale, better educational opportunities and more money? What percentage of schools in Hampshire will have to achieve grant-maintained status for the local education authority to become redundant?
I hope that the local education authority will encourage schools to go grant maintained. There is much evidence from a recent survey that that is beneficial to schools and pupils. For example, of the schools replying to the survey, 90 per cent. reported an increase in the number of pupils applying, 65 per cent. reported more teachers in the schools and 75 per cent. reported an improved teacher-pupil ratio. That is evidence of the success of the GM policy.
rose—
The question is about Hampshire.
I know that it is about Hampshire, Mr. Speaker. Will the Minister offer the House any justifycation for the provision of more money to schools in Hampshire because they happen to serve the current dogma of the present Government?
The money is allocated to Hampshire on the normal standard spending assessment basis. Grant-maintained schools rightly get money which would otherwise be spent on administration costs by Hampshire. Those grant-maintained schools are using that money effectively for the benefit of the school and, more importantly, of improving education for the pupils attending those schools.
Foundation For Sport And The Arts
3.
To ask the Secretary of State for Education and Science what responsibilities he has for the sports and arts foundation.
The Foundation for Sport and the Arts is an independent trust which decides the allocation of its own funds. Under the trust deed I appoint a Government observer and am consulted on the appointment of the chairman. In practice, I keep in close touch with the work of the foundation.
Will my hon. Friend confirm that the Football Trust gets an extra £20 million from the 2·5 per cent. reduction in the betting levy which goes towards the safety and improvement of football grounds?
That is certainly part of the money that is made available as a result of the far-sighted decision of my right hon. Friend the Prime Minister, when he was Chancellor of the Exchequer. When one adds to that the £40 million or so from the trust, my hon. Friends at least will recognise that the Government can lay claim to spending more money on sport than any party has done for many years.
Is not the Minister somewhat ashamed of himself? Despite the various amounts that come from the Foundation for Sports and the Arts—given at the whim of the trustees in a haphazard fashion—they do not compensate in any way for the £60 million cut in real grant from the Government since 1986. What answer will the Minister give to the chairman of the Sports Council, who described the recent cuts as a kick in the teeth?
I am delighted to see the hon. Gentleman in the Chamber; he should be on the Opposition Front Bench as their spokesman for sport, as my shadow is not here. Perhaps something should be read into that.
This year the increase in grant to the Sports Council is 4·4 per cent., which is more than the rate of inflation and equivalent year on year to what we have pledged ourselves to provide. I repeat that if one adds to that the £40 million from the foundation, the £20 million a year for football and the 1 million that I found for the champion coaching scheme, it is clear that our commitment to sport is greater than anyone's. I spoke to the chairman of the Sports Council this morning and pointed out that the increase in grant is in excess of inflation. Therefore, his comment was wrong.Does the Minister understand that, despite what he has just said, there is still considerable apprehension that the Government will use the existence of the foundation as an excuse for not funding sport properly? The Minister is aware that the Sports Council's plan did not represent a standstill, but involved the development and expansion of all its activities. That is why the settlement of 4·4 per cent. is rightly described as a kick in the teeth.
It is extraordinary that even though the Government found an extra £40 million for sport in the last Budget, which is near enough double the expenditure on sport year on year, Opposition Members criticise us and suggest that we are not providing the necessary resources for sport. The first tranche of money from the foundation of £3·7 million—[Interruption.] Do stop interrupting.
Order. I am supposed to say that. Can we get on?
I was referring to the hon. Member for Blackburn (M r. Straw). He is supposed to believe in discipline in our schools, but his behaviour is singularly ill-disciplined. As a public school boy, he should know better.
I have sought to demonstrate that the claim of the hon. and learned Member for Fife, North-East (Mr. Campbell) is fatuous, because we are spending much more money on sport than in the past.Does my hon. Friend agree that Labour's charter for sport is about more interference, more committees, more regional committees and, most of all, more costs? Will sport be subject to Beckett's law? Will it be a top priority, a priority, or what? Does not that contrast with the Conservative policy of reducing the betting levy by 2·5 per cent., which has given £100 million to sport and increased the Sports Council grant to £50 million—
Order. Let us have a question please.
Does not it mean that we are the party of hot money, not hot air?
I can do no better than to draw the attention of the House to this statement in Labour's charter for sport:
However, the right hon. Member for Birmingham, Small Heath (Mr. Howell), who is supposed to be the shadow spokesman on this subject, suggested that Labour would encourage a greater ministerial role in the Sports Council. May we know which is which?"We will … review the composition and powers of the Sports Council … to free them from political bias".
Does my hon. Friend accept that much as many of us welcome the sports and arts foundation, we would infinitely prefer to have a national lottery, which would produce far more money for sport and the arts?
I am sure that my hon. Friend recognises that there are a number of views on this subject. My views are well known., but it is a matter for my right hon. Friend the Chancellor of the Exchequer.
Derbyshire County Council (Funding)
4.
To ask the Secretary of State for Education and Science whether he will increase the educational funding for Derbyshire county council.
Councils' current spending on all services next year should be 7·2 per cent. higher than this year, but it is for Derbyshire to decide its level of spending and priorities between services. Capital spending in schools, supported by annual guidelines, is set to rise from £472 million this year to £524 million next year, an increase of 11 per cent. Derbyshire's allocation will be announced before Christmas.
Will the Minister confirm that in the summer he met a group from Derbyshire county council who asked for £140 million, spread over the next three years, to get rid of all outstanding repairs and make necessary improvements? After 12 years of Tory rule, little toddlers must still run across playgrounds to get to outside toilets. We have the citizens charter, the parents charter and every charter under the sun. When will the Government put their money where their mouth is?
I confirm that Councillor Young came to the Department in July with five hours' worth of videos showing how Derbyshire had been running down its schools. I allocated Derbyshire £21 million this year, the fourth highest allocation of any education authority in England. I now understand that Derbyshire is planning to siphon off £5·5 million of capital spending to pay for extra redundancy and personnel costs at county hall.
Might the hon. Member for Bolsover (Mr. Skinner) want more money for Derbyshire so that it can employ more people such as his brother, who is employed as a personnel liaison officer for Toyota, his sister-in-law, who is employed in the county publicity department—[Interruption.]—and such as another sister-in-law, who is employed in the education department? The hon. Gentleman is always talking about jobs for the boys. Should not that include brothers and sisters as well?
Derbyshire not only employs some pretty odd people, but it makes some rather odd choices. This year, Derbyshire has chosen to cut music and swimming while spending over £5 million keeping school meals at 1981 prices.
Greater Manchester Schools
6.
To ask the Secretary of State for Education and Science if he will make a statement on the staffing levels and the conditions of schools in Greater Manchester.
In January 1991, the 10 local education authorities in Greater Manchester reported 230 full-time permanent posts unfilled, a vacancy rate of I per cent. below the national vacancy rate of 1·5 per cent. Vacancy figures in September showed a significant improvement, with only 15 vacancies reported for the whole of Greater Manchester at the start of the school year.
I am not surprised that the Minister failed to mention the condition of schools in Greater Manchester. Will he confirm that in every year and for every authority recently in Greater Manchester, the amount of money that the Government have allowed them to spend on capital projects has been way behind what they have needed, with the result that there is now a backlog of repairs and maintenance? Is he aware that one head teacher recently told me that not only do they have to teach in unsavoury conditions, but they are now having to teach in unsafe conditions? The Government are putting the health and safety of children at school at risk. What will the Minister do to make sure that that state of affairs does not continue?
For the 10 councils in the Greater Manchester area, I increased capital guidelines from £32·6 million last year to £41·6 million this year. I shall be annou0ncing the individual allocations for next year before Christmas.
Will my hon. Friend confirm that the worst-ever cuts in education took place in 1976 under a Labour Government? Will he further confirm that the 11 per cent. increase in the autumn statement is bound to be helpful?
Yes, the 11 per cent. increase for school buildings next year is a good outcome, given that the level of inflation is only about 4 per cent. and given the drop in construction prices. Trafford education authority has received about £13 million in the past two years to help it reorganise and improve its schools.
Higher Education
7.
To ask the Secretary of State for Education and Science when he next expects to visit Leeds university and Leeds polytechnic to discuss funding for higher education.
I will be visiting Leeds polytechnic to open the Higher Education for Capability office on 27 November. This is a joint project of the polytechnic and the university.
Is the Minister aware that at Leeds university top-quality alpha-grade research in technical and scientific subjects can no longer be funded? Will he give an assurance that in future research at Leeds polytechnic will be funded under the new joint proposals? Is he aware that such cuts in academic research will prove to be economic short termism with vengeance?
Our policy is that high-quality research should be supported in departments of universities and polytechnics, wherever they may be. The Universities Funding Council and the Polytechnics and Colleges Funding Council will embark jointly on a new research and assessment exercise next year. As a consequence, up-to-date ratings of quality will be made, department by department, across the spectrum of higher education. Every department that scores highly in those assessments will benefit accordingly. That is a thoroughly fair system.
Will the Minister make absolutely certain that the funding councils use up-to-date figures? Universities such as Lancaster are going steadily and rapidly up the poll and are doing very well indeed. However, the 1988 criteria are not as good as current ideas, so it is important that the universities that are forging ahead should be encouraged.
As always, my hon. Friend is eloquent in championing the university in her constituency—and rightly so. The new research assessment exercise has been brought forward in anticipation of ending the binary line and bringing together the polytechnics and universities in one sector. As a result of the exercise to be carried out during 1992, the assessments of research quality will be based on the most up-to-date data.
When the Minister discusses higher education funding at Leeds, will he confirm that it is Government policy to increase basic funding in line with the increase in student numbers? Given the pressures on laboratories, libraries, teaching and student accommodation, and the real cut in capital funding in this year's autumn statement, what is the Government's policy on capital expenditure?
I am delighted to be able to tell the hon. Gentleman that our policy on capital expenditure is to encourage and enable higher education institutions to invest, as they need to do, to accommodate the dramatic increase in student numbers as well as provide facilities for the research of remarkable quality which takes place in so many of our universities. Capital funding available from the polytechnics has increased by 50 per cent. since 1989–90, when the PCFC sector was established. I am pleased that, in the new settlement that has just been announced, we have secured an extra £9 million of capital funding for the higher education institutions.
School Inspectors
8.
To ask the Secretary of State for Education and Science when he next expects to receive a report from Her Majesty's chief inspector of schools.
The senior chief inspector's annual report is being prepared now and will be submitted to me on completion.
Does the Secretary of State agree that, whatever the merits of Her Majesty's inspectors being involved in the advocacy of method, their function of providing independent and publicised reports on the quality of education has never been in question? If he wishes to make an adjustment, would not it be more sensible to detach their role from advocacy of method and confine it solely to inspection? Is not his solution of private consultants to be engaged by competitive schools asking for trouble, because it creates an automatic conflict of interest and renders their reports suspect by definition?
With respect, the hon. Gentleman appears to be slightly confused about what we are doing. First, I accept that the inspectors' production of an annual report and other reports on our schools is extremely valuable, as they base their advice on the inspections that they carry out. The Education (Schools) Bill will continue that. Indeed, we strengthen the independence of Her Majesty's chief inspector of schools in producing those reports by detaching him, to a much greater degree than in the past, from my Department. Secondly, the new role for HMI will be to monitor the quality of all those inspectors who will carry out the new inspections in individual schools throughout the country and to give, for the first time, reports to every parent about those schools.
indicated dissent.
The hon. Gentleman dismisses that. Does he think that we should employ 5,000 HMIs to carry out inspections, or does he prefer the Labour party's solution—that only local councils should be allowed to inspect schools? We are giving Her Majesty's inspectorate a key role in monitoring the quality of those permitted to carry out that public service.
Does my right hon. and learned Friend agree that the whole purpose of the reforms is to increase the number of inspections in schools, not reduce them, and that the monitoring and regulation of the new system will be such that it would not be in the professional interest of any inspector to try to fiddle a report?
I am grateful to my hon. Friend. Last year Her Majesty's inspectors produced and published about 150 reports on individual schools and, usually, no parent saw the reports. Our arrangements will lead to about 6,000 inspections each year, and each parent will receive, without requesting it, a straightforward description of the inspection. We state that the teams of inspectors should be monitored and approved by Her Majesty's inspectorate. The new, independent Her Majesty's inspectorate will have the duty of giving a little lion stamp to those inspectors and ensuring that they are up to the mark.
Flow can the Secretary of State conceivably claim that Her Majesty's inspectorate is to be strengthened when its numbers are to be cut by two thirds and it is to be subject to clear and specific direction from the Secretary of State? Will the Secretary of State confirm that the privatisation of the inspectorate inherent in the Education (Schools) Bill goes far further than that presaged in the schools charter and includes, under the guise of additional inspectors, the substitution of private money-making firms to do the work currently carried out, not just by local inspectors but by the chief inspector of schools?
I have carried out several privatisations in my time in commercial and industrial departments, and my understanding of the word privatisation is that one takes something currently managed in the public sector and transfers it to the private sector—the last such transfer in which I was engaged involved British Steel. In this case, Her Majesty's inspectorate is not being transferred and its role will remain the same except that as a public organisation it will be made more independent of the Secretary of State. The hon. Gentleman's complaints are based solely on the fact that the total number of staff in the inspectorate are to be reduced. The Labour party judges such matters only on the number of employees and trade union members on the books, which is not the test that we shall apply. We shall give Her Majesty's inspectorate powers and duties and the number of staff that the chief inspector and I think are required to fulfil those roles.
Will Her Majesty's chief inspector report on the case of Kings school, Winchester, which was denied grant-maintained status as a direct result of the local authority using public funds to wage a campaign against it?
I do not think that Her Majesty's inspectorate can look at that case. A parental ballot was carried out on grant-maintained status and the parents decided to vote against the application for that status. I agree with my hon. Friend that Hampshire county council waged an extremely vigorous campaign against the proposal. I do not agree that Hampshire presented the case fairly, and I keep trying to obtain undertakings from Hampshire county council that, even if it cannot support Government policy, it might at least present a more detached account of the case to parents when grant-maintained options are on the table.
Gateshead Ctc
9.
To ask the Secretary of State for Education and Science what is the proposed per capita capital spending per pupil in 1991–92 at (a) Gateshead city technology college and (b) all secondary schools in the borough of Sunderland.
My right hon. and learned Friend's planned capital contribution to Emmanuel college, Gateshead in 1991–92 is £259,000. The funding agreement with the CTC allows for 300 pupils in 1991–92. The Department does not hold figures for the proposed capital expenditure on secondary schools in the borough of Sunderland in 1991–92.
I am not surprised that the Minister declines to give us the figures because is not the truth that about 60 to 80 times the amount of money is being spent per capita on students at the city technology college than is spent on pupils at secondary schools in Sunderland and surrounding boroughs? Can the Minister point to any country apart from South Africa where such large sums are spent on a small elite group at the expense of the majority?
I am not sure where the hon. Gentleman gets his figures from—perhaps from the same Labour party briefing on which the hon. Member for Blackburn (Mr. Straw) relies. The hon. Member for Blackburn produces wholly fictitious figures which compare the new building costs for new schools or for the conversion of schools to CTCs over a period of three years with the capital expenditure borrowing guidelines for 14 authorities in one year. That shows that he has not reached level 1 in mathematics, and nor has the hon. Gentleman.
Student Grants
10.
To ask the Secretary of State for Education and Science if he will review the criteria for student grant eligibility.
The Education (Mandatory Awards) Regulations are reviewed annually. Extending them to a substantially wider range of courses or students would, however, require primary legislation. We have no present plans for that.
Is my hon. Friend aware that in many local education authorities, not least in London, it is a prerequisite for a discretionary award that a student lives for at least three years within the borough concerned? Will he give at least gentle guidance to LEAs suggesting that it is not reasonable for students to be excluded from discretionary grants merely because their parents have moved home? Or will he try to find some other way of funding such students?
The regulations do not impose any specific requirements on how local education authorities should treat people ordinarily resident in the United Kingdom when considering their applications for discretionary awards. It is for each LEA to construct its own policies in respect of discretionary awards. "Discretionary" means what it says: it is not our policy to intervene or even to lean gently on authorities in this matter.
Does the Minister accept that it is no good being eligible for a mandatory award if it is then not paid? What steps is he taking to ensure that this year local authorities such as Southwark, which a week or two ago had paid less than one fifth of its mandatory grant cheques to eligible students, pay up, so as to minimise student hardship? And what will he do to ensure that in future years the system pays up at the beginning of the year, not a third of the way through it or later?
We have a student support system as generous as any in the world, but under long-established arrangements local education authorities administer the award system, and students depend absolutely on those authorities playing their part. We have substantially increased resources for students, providing more money for more of them. It is a disgrace if students are in difficulty on account of administrative failures by local education authorities. I have already made my views clear: officials have written to every education authority about which we have received evidence of a failure to carry out its statutory duties—and we will continue to pursue the matter vigorously.
Is my hon. Friend aware of the problem that some mature students, particularly women with home commitments, have to take their degree courses in the form of part-time courses and that they are therefore not eligible for mandatory grant? Will he look into that?
My hon. Friend is right to draw attention to the changing pattern of higher education. There has been a dramatic expansion of participation, and there are more mature and part-time students and more people working their way towards qualifications on the basis of credit accumulation and transfer. We shall keep our administrative and financial systems under review in the light of these trends.
Does the Minister accept that a local authority such as Bradford, which tries to provide a wide range of discretionary awards, is inevitably limited by the amount of money that it can give? If central Government provided more assistance, the Minister may rest assured that such LEAs would provide more students with the opportunity of further and higher education through the application of discretionary awards.
The hon. Gentleman would do well to go back to Bradford and ask the authority one or two questions. The assumption on education spending that underlies the revenue support grant to local authorities this year allowed for increased spending on discretionary awards of 15 per cent. in 1991–92. If authorities are failing to increase their spending on discretionary awards commensurately, that is their decision.
Primary Schools (Funding)
11.
To ask the Secretary of State for Education and Science what steps he is taking to assure himself of the adequacy of the funding arrangements for local management of smaller primary schools; and if he will make a statement.
Local education authorities have considerable flexibility to provide additional assistance to small primary schools, through the small school protection factor, but it is for each authority to devise its own scheme and to choose its priorities within that scheme in the light of local needs.
Does my hon. Friend agree that it would be regrettable if the objectives of local school management could not be met because of inadequate funding? Is he aware that there are problems not only in respect of teachers' salaries, actual as opposed to average, but in respect of responsibility for the funding of the older village primary schools which predominate in rural areas? There is a clash here between the local authority and the governors.
Yes, that is an important point which was impressed on me when I recently visited Cornwall. The Cornwall scheme protects small primary schools with fewer than 12 staff by paying most of the difference between average salary costs at the school and the average salary costs across the local education authority area.
Does the Minister realise that many small primary schools are now under enormous pressure in terms of delivering the full curriculum because they do not have the additional resources to enable them to employ the staff to teach it? Will the Government stop pressurising authorities to cease supporting small primary schools through additional support across the county? That pressure is making the future of many rural primary schools very unpredictable.
There is no such pressure. Three years after the Act was passed, the hon. Lady still does not seem to understand that local management of schools funds the pupils and not the teachers. It is open to any local education authority to tilt its scheme towards primary schools and I have been encouraging local education authorities, where appropriate, to revise their schemes with precisely that aim.
Is my hon. Friend aware that despite the success of local management of schools, staff are still very worried that experienced older teachers who qualify for the higher salary scales will be discarded in favour of less experienced younger staff?
That is precisely why we allow local education authorities the flexibility to devise schemes to accommodate the particular circumstances of small schools and those with very high inherited salary costs.
The Minister is right to commend Cornwall county council for its efforts to help small primary schools. Nevertheless, the problem of average teacher costs strikes hard in rural areas that have many small schools. That problem will increase, thereby penalising schools with the most experienced and loyal teaching staffs. Will he go some way towards reviewing the process?
Yes, we shall be reviewing the teaching cost issue in 1993. Cornwall still has much to do to meet our requirement of 85 per cent. delegation to school budgets. It has not yet reached that target and I urge it to re-examine its spending allocations to make sure that it does. I was struck by the fact that Cornwall seems to be overspending on roads and underspending on its schools.
Adult Education
12.
To ask the Secretary of State for Education and Science if he has any plans to expand the adult education service; and if he will make a statement.
The Government's proposals for transferring further education colleges to a new independent sector are designed to increase the number of people studying at those colleges and to improve opportunities for all in further education.
Will my hon. Friend confirm the Government's total commitment to adult education and its comparative cheapness in providing excellent courses for so many people? In particular, will he confirm that the Government see leisure courses and non-vocational courses as being equal in value to vocational courses and will they ensure funding for all?
I can readily confirm to my hon. Friend, to whose long-held interest in education I pay tribute, that we are committed to continuing to fund adult education of all kinds—vocational, leisure, basic education and English as a second language. The increased recent trend of more adults studying in their own community is greatly welcomed and is exactly what the White Paper seeks to underline.
Is it not clear from Government statements that the future of the adult education service is at great risk? Will the Minister give a commitment that the present adult education programme will be built upon and secured, or are the Government pulling the ladder away from thousands of our fellow citizens who have prospered from adult education in the past?
What is becoming increasingly clear is that the Labour party is trying to do nothing other than promote scare stories so as deliberately to frighten people who have traditionally relied on adult education courses. The hon. Gentleman knows that we are determined to sustain adult education, to extend it and to ensure that it is properly based in the local community. The hon. Gentleman should admit that.
Local Management Of Schools
13.
To ask the Secretary of State for Education and Science what is the average amount of money being held back by local education authorities in England and Wales, per pupil, under the system of local management of schools.
Across the 97 local education authorities operating local management of schools, the average amount of the potential schools budget retained centrally is £260 per pupil.
Is my hon. Friend aware that the tyranny that controls education in Nottinghamshire holds back £10 or more for each and every child above that national average, that it is somewhere around two thirds of the way down the merit table for putting resources where they belong—at the school—and sits on about £3 million at the centre, which is the same as holding back £5,000 for every school in the county? Does that not prove that we need the parents charter? Will my hon. Friend ensure that every parent in the county gets one?
Yes, Sir. My hon. Friend will be interested to know that Nottinghamshire holds back nearly £43 million and that its total administrative costs are 4·4 per cent. of the schools' budget—twice as high, for example, as those in Northamptonshire.
Prime Minister
Engagements
Q1.
To ask the Prime Minister if he will list his official engagements for Tuesday 12 November.
This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.
Now that the by-election in Kincardine and Deeside has focused attention on the issue of Scotland once again, and with the continuing difficulties in establishing a democratic local administration in Ulster, will the Prime Minister consider initiating consultations with other parliamentary parties with a view to reaching agreement on common structures of government throughout the United Kingdom?
I understand why the hon. Gentleman makes that point, given all the difficulties in Northern Ireland and the historical perspective there. It is precisely to deal with those problems that my right hon. Friend the Secretary of State has been having so many discussions over the past year.
Q2.
To ask the Prime Minister if he will list his official engagements for Tuesday 12 November.
I refer my hon. Friend to the reply that I gave some moments ago.
Has my right hon. Friend seen the good producer price figures issued today? Do not these support the contention of my right hon. Friend the Chancellor of the Exchequer that the economy is beginning to turn around?
I saw the producer price figures issued this morning, and they are good news. They show a continuing collapse in inflation and that can only help the competitiveness of industry and thereafter the growth of the economy and the creation of jobs.
Given that the Prime Minister correctly said last night that Maastricht will be an important stage on the road to even closer European union, what does he say today to those of his right hon. Friends who say that he has already gone far enough down the road to political and monetary union and, in their words, we should stay where we are?
I have made it clear over recent months, and am happy to repeat today, that we are seeking an agreement at Maastricht that will be acceptable to the House and will enable Europe to move forward together. That is true on economic and monetary union and on political union. There is some way to go before I could sign the political union treaty that is before us. There are still matters to be agreed on the monetary union treaty, but in both cases we are making progress.
The Prime Minister says that he recognises, in his words, the
In saying that, is he recognising that isolation would mean the sacrifice of influence that is essential to the vital interests of the British people—[Interruption.]"potential impact on our influence and prosperity were we to take a different decision from our principal competitors".
Order. The Leader of the Opposition.
Will the Prime Minister take this advice:
"We have nothing to gain by sitting on the margins … while others frame new structures without us"?
As the right hon. Gentleman knows, this Conservative Government have been the leader in Europe for the past 12 years. The single market would not have come about but for this Conservative Government. The change in rebates would not have come about without the Conservative Government. The Fontainebleau abatement would not have come about without the Conservative Government. We propose to remain within the centre of the Community, framing the future of the Community in the interests of the United Kingdom and the rest of Europe.
So now perhaps the right hon. Gentleman will answer my first question; what does he have to say to those of his right hon. Friends who say that he has gone far enough and should stay where he is?
I answered that question some moments ago.
Q3.
To ask the Prime Minister if he will list his official engagements for Tuesday 12 November.
I refer my hon. Friend to the reply that I gave some moments ago.
Will my right hon. Friend accept my congratulations and those of my right hon. and hon. Friends for the massive increase in health spending that the Government recently announced, which shows beyond doubt the Government's commitment to the principles of the national health service? Does he agree that that is in stark contrast to the contributions that have been made by Opposition Members, who have nothing to offer the NHS but smears and attacks on staff and patients, and on the care that patients receive? Will he give the House some positive information about the success of the reforms that the Government are making, which will save the NHS for the year 2000?
I am grateful to my hon. Friend for his remarks. There has been yet another substantial increase in resources for the NHS, and that will enable a continuing reduction in waiting lists and better service for all those who use the NHS. Trusts are effective and efficient and they are the future. Increasingly, they are proving that.
Will the Prime Minister take the opportunity of the vote that will take place on Thursday to think again about Scotland? Does he realise that the real potential danger to the Union of Scotland with Britain lies not with the separatists but with his Government's refusal to listen to the voice of the people of Scotland? So I ask him again: will he listen and will he think again?
The right hon. Gentleman sounds from what he has just said as though he is a separatist. I can tell him frankly that the Government are not separatist. The Government remain fully committed to the Union between Scotland and the rest of the United Kingdom.
Will my right hon. Friend join me in welcoming the £24 billion programme for public housing over the next three years detailed by the Department of the Environment yesterday? Will he join me also in condemning the inefficiency of Labour councils, whose failure to collect rents and fill empty properties is a major barrier to the provision of homes for the homeless?
I entirely agree with my hon. Friend. As people can see throughout the country, the reality is that Labour authorities leave houses empty even when people are in need of them.
Q4.
To ask the Prime Minister if he will list his official engagements for Tuesday 12 November.
I refer the hon. Gentleman to the reply that I gave some moments ago.
Will the Prime Minister join me in congratulating the Cowley workers, the trade unions and the management on the launch today of the excellent and new Cowley-designed and Cowley-built Rover 800? Will he explain why, at the hands of his high-tax Government, the car will face total sales taxation of 27·3 per cent., when its BMW competitor faces tax in its domestic market of only 14 per cent? Is it not time that he started backing the British car industry in the way that the Germans support theirs?
The hon. Gentleman can certainly be certain that I congratulate Rover on its splendid new product, and I hope that it will be immensely successful. As an owner of Rover cars for many years, I am sure that it will be. Rover and other car manufacturers are now so successful that they are exporting to Japan and elsewhere.
Can my right hon. Friend find time during his busy day to congratulate the management and staff of Rover on the fact that over the past 12 months not one single minute of production time has been lost through industrial disputes? Will he contrast that excellent achievement under Conservative trade union law with the undoubted industrial chaos that would result in the unlikely event of the Labour party's returning to government?
What my hon. Friend has said is certainly the case at Rover, but it has also been the case throughout industry during the past year, when there was the lowest number of strikes for more than 45 years. I welcome that very much. Of course, if we were to revert to legalising secondary action, flying pickets and the other actions that the Opposition propose, I do not doubt that strikes would return.
Q5.
To ask the Prime Minister if he will list his official engagements for Tuesday 12 November.
I refer the hon. Lady to the reply that I gave some moments ago.
What has the Prime Minister to say about the comments of the last Conservative leader of Lambeth council, who in a letter published in The Guardian on Saturday said[Interruption.] I want to quote it, and he said, "The Government is failing in its treatment of the mentally ill"—[HON. MEMBERS: "No quoting."]
Order. The hon. Lady can paraphrase, and she is doing so.
Conservative Members do not want to hear what a former Conservative leader has to say. He said that the Government were out of touch with homelessness and with the hopelessness of large sections of society, and that they had forfeited their right to govern.
I have not seen the remarks quoted by the hon. Lady, and neither have I seen the context in which they were put or what else was said. However, I say to the hon. Lady and to the alleged author of that statement that, frankly, I disagree. As a former Minister with responsibility for the disabled, I am well aware of the immense amount of work and care that has gone into the care of the disabled. As a former Lambeth housing chairman, I do not take lectures from anyone in Lambeth about housing.
Is my right hon. Friend aware that he carries the support of the vast majority in this House and in the country in his refusal to rule out a single currency on our terms at some future time? In displaying the consistency of involvement and leadership in the Conservative party with regard to Europe, is he not finally giving this country the role that it lost with the empire?
We must consider the longstanding interests of this country when we make decisions on the treaties, and that is what I will do.
Q6.
To ask the Prime Minister if he will list his official engagement for Tuesday 12 November.
I refer the hon. Gentleman to the rely that I gave some moments ago.
As crime in London increased yet again last year—by 13 per cent.—has the Prime Minister read the comment by police commander David Stevens that the police are not responsible for crime any more than doctors are responsible for disease, and that crime is an indicator of economic and social malaise? As the Conservative party has been in power for 12½ years, who does the Prime Minister think is responsible for the economic and social malaise?
Crime prevention begins in the home and in the treatment of people from an early age. On the questions of prevention and punishment of crime, the Government have taken committed and sustained action for more than a decade. That includes providing a strong and effective police force. We are spending 67 per cent. more, over and above inflation, than in 1979. No Government could have done more against crime than we have, and no future Government would be able to do more than we will.
Q8.
To ask the Prime Minister if he will list his official engagements for Tuesday 12 November.
I refer my hon. Friend to the reply that I gave some moments ago.
Does my right hon. Friend agree that the level of community charge or council tax depends partly on the efficiency of the local council and partly on the proportion of local government spending which is required to be raised by local taxation? Does he further agree that if that proportion were to be raised to 20 per cent., overnight every household bill would rise by 50 per cent? Is he not astonished that that is the Labour party's proposal?
No, I am not astonished because, two years after announcing its local government plans, the Labour party still does not know how they would work. My hon. Friend makes some pertinent points. We will make sure that local tax bills are restrained and, where councils are extravagant, unlike the Labour party, which would let extravagance run wild to the cost of the local taxpayer with no let or hindrance, we will cap them.
Mr. Sillars—question 9.
Where is he?
I call Mr. Dennis Turner.
Has the Prime Minister one shred of sympathy for Britain's beer drinkers? Prices have increased way beyond the rate of inflation and the Government's legislation to check monopolies is a complete fiasco. When will the Government do something to protect the British beer drinker?
With regard to having sympathy for them, I would say to the hon. Gentleman that I am one of them.
Nato Summit
3.31 pm
With permission, Mr. Speaker, I shall make a statement on the NATO summit in Rome on 7 and 8 November which I attended with my right hon. Friend the Foreign Secretary.
Last July, in London, NATO agreed to adapt its strategy to the changed situation in Europe and to build up a new partnership with the countries of central and eastern Europe. At the summit we agreed on how to carry forward both those tasks. The strategic concept reflects the British Government's objectives. These were to ensure that NATO remains the linchpin of western security, charged with dealing with whatever security problems might threaten. The strategy reaffirms the need for a collective defence based on NATO's integrated military structure; and also on the need for both nuclear and conventional forces, kept up to date where necessary, but at significantly lower levels. Alliance forces in every NATO country will be smaller, more mobile and more flexible. At the summit we endorsed the establishment of new rapid reaction forces, in which the United Kingdom will command the land element. The summit declaration establishes a North Atlantic Co-operation Council. This forum will enable NATO to discuss common security issues with the Soviet Union, the Baltic states and the countries of eastern Europe. At Britain's suggestion, the first such meeting will be held at Foreign Minister level in Brussels in mid-December. We have agreed a wider role for NATO. Henceforth, NATO will not just be keeping the peace; it will be actively promoting peace. It will be prepared to help the countries of eastern Europe in planning defence forces in a democracy, with civilian-military relations, and in converting defence production to civilian purposes. The relationship may well develop still further. The NATO summit also, for the first time, considered in depth the European defence identity and the alliance. We affirmed some important principles: first, the principle that NATO is the essential forum for consultation and agreement on policies bearing on the security and defence of alliance territory; secondly, endorsement of the British proposals to use the Western European Union as the means of strengthening the European pillar of the alliance; thirdly, the need to establish clear and open relations between NATO and the Western European Union and to involve other allies on issues discussed in the Western European Union which affect their security. Heads of Government received a report on Yugoslavia following a meeting of Community Foreign Ministers with Lord Carrington. In view of the grave situation in Yugoslavia and the repeated breaches of the ceasefire, Community Governments agreed in Rome on a series of restrictive measures. They include suspension of the trade and co-operation agreement; suspension of benefits under the general scheme of preferences; suspension of the PHARE—Poland and Hungary Assistance for Economic Restructuring—programme; and the restoration of quotas on textiles. Community Governments asked those member states that are members of the Security Council to promote measures in the Security Council to tighten the arms embargo, and to take steps towards imposing an oil embargo. We are now consulting other members of the UN Security Council about the introduction of such measures. Community Governments also decided that positive action should be taken to benefit the parties which were being co-operative in the peace process. Taken together, these measures will increase the pressure on those responsible for appalling bloodshed and suffering in Yugoslavia. NATO Heads of Government issued a separate statement making clear the allies' strong support for the efforts of the European Community to promote peace in Yugoslavia. We also discussed developments in the Soviet Union. We publicly supported economic reform and democratisation. We stressed the need for the authorities in the republics, as well as at the centre, to respect their obligations—on human rights, on arms control and on economic policy. In particular, we urged them to do everything necessary to implement the CFE—conventional forces in Europe—and strategic arms reduction treaties, and to prevent the proliferation of nuclear weapons. We are living through a dramatic revolution in eastern Europe and the Soviet Union. We have to use all the means at our disposal—the European Community, the conference on security and co-operation in Europe and NATO—to help them to build stable democracy in their countries. NATO remains the core of our defence. Were we again to face a military threat, NATO would be there to meet it; but NATO is now reaching out to the countries of eastern Europe to help to provide stability and a sense of security. All of us at last week's meeting agreed that the continuing American and Canadian presence in Europe is vital to both defending and promoting peace in Europe. Britain will have a central part in that task, both in the alliance and in the European Community. The decisions of the NATO summit provide important guidelines for the negotiations leading to the European Council in Maastricht. I hope that the House will welcome the outcome of the summit as a significant contribution to a sound defence and to democratic stability in Europe.I thank the Prime Minister for his statement. First, let me welcome the broader definition of security that was reached at the Rome summit, and the shift to a strategic concept of co-operative security through which European states can address their common security concerns—as the Prime Minister has pointed out—in partnership.
Especially welcome is the recognition that, in the words of the strategic concept, the threats of the past "have effectively been removed", and the focus for allied strategy should be on the "multi-faceted … risks" of the future. In that context, we welcome the leading role allocated to the United Kingdom in the rapid reaction force. The proposal for cuts in both conventional and nuclear weapons confirmed by the declaration and the calls for further negotiations made in it are, naturally, commendable. Will the Prime Minister tell the House whether he will be supporting the non-proliferation measures referred to in the declaration by actively pursuing negotiations for a comprehensive test ban treaty? Will he also tell us what steps his Government are prepared to take to promote what the Rome declaration callsCan the right hon. Gentleman say how Britain would participate in negotiations to achieve such advances? Will he, in any event, take account of Norwegian concerns, and urge our other partners in NATO to respond to Soviet requests for talks about reducing maritime forces? Let me turn to the declaration itself. Is the Prime Minister satisfied that its terms guarantee the primacy of NATO in matters of security? Does he agree that the parallel development of any European security identity and defence role must not detract from the central importance of NATO and the transatlantic relationship with the United States and Canada? In view of the welcome establishment of a North Atlantic Co-operation Council with eastern European countries, could the Prime Minister tell us how he sees that new council's relationship with the conference on security and co-operation in Europe? Does he foresee any possibility of further developments that might in the future include the granting of associate membership of NATO to some eastern European countries? We welcome the NATO statements on developments in the Soviet Union and the need to use all means possible to strengthen pluralism and democracy. In the interests of achieving clear and dependable progress with disarmament, does not the Prime Minister agree that the variety of political and economic contacts which Britain and other NATO countries have with the Soviet republics should be used to emphasise the need for their Governments to adhere fully and readily to all relevant treaties agreed by the Soviet Union? While welcoming the NATO statement on Yugoslavia and the Prime Minister's further information today, may I ask what efforts the British Government are making to provide the humanitarian relief that is referred to in the Rome communiqué, which is daily becoming more necessary as the tragedy in Yugoslavia continues? In the strategic concept, established at the Rome summit, it is clear that the NATO countries are adopting policies that seek to take full advantage of the new opportunities produced by the historic change in the Soviet Union and elsewhere. People and countries, east and west, will doubtless benefit from these deliberate efforts to replace the peace of tension with the peace of trust and co-operation."welcome prospects for further advances in arms control in conventional and nuclear forces"?
I am grateful to the right hon. Gentleman for his welcome of the strategic concept and of the United Kingdom's role in commanding the land-based rapid reaction corps and for much else that he had to say. There is a measure of agreement on many of the matters that he touched upon.
We are working towards a test ban treaty, but it is some way away. As the right hon. Gentleman knows, there are many difficulties. To hold talks on reducing maritime forces would be premature. I can confirm his remarks about the primacy of NATO. That is secure. It was quite specifically realised and accepted at the NATO summit that that was the case and that the role of the United States and Canadian forces was central in maintaining the peace of Europe and remaining on the land continent of Europe. As for the North Atlantic Co-operation Council, there will, over time, develop a relationship with the CSCE—very probably an informal one. I expect, over time also, that there is an aspiration that we should move towards associate membership of NATO for some of the eastern European countries. I would not expect that to happen at an early stage, but the North Atlantic Co-operation Council expressly exists in order to establish a bridge between western and eastern Europe and removes so many of the fears and concerns that have existed for so much of the post-war period. As for the Soviet Union, I can expressly confirm to the right hon. Gentleman that we are expressing both to the Soviet Union, at the centre, and, equally important, to those representatives of the republics whom we now meet so regularly the need to adhere to treaties signed by the Soviet Union, the implementation of which may pass to the republics in the months and years ahead. Returning to the strategic concept, I reaffirm that the principles upon which the alliance is based are those set out in the strategic concept: that NATO is the essential forum for defence and that that is where we shall discuss policies based on security and defence, on collective defence and, most critically, the appropriate mix of nuclear and conventional forces. There are plans for humanitarian relief for Yugoslavia, much of which is likely to come through the European Community. In view of the problems in Yugoslavia, there are huge difficulties with that at the moment. There is much discussion about it. When I am in a position to do so, I shall write to the right hon. Gentleman with the details.I warmly welcome my right hon. Friend's statement, particularly the initiative taken with the North Atlantic Co-operation Council. Can he say a little more about the European pillar, the Western European Union? While Members on both sides of the House accept that there is a role for the WEU in a European security identity, what reassurance can my right hon. Friend give that the core of the NATO alliance will not have its vital strategy affected by possible control by the European Community over the Western European Union?
My hon. Friend makes an important point. The intention behind building up the Western European Union is to use it as a vehicle for building up the European contribution to our collective defence. It is not our policy that the Western European Union should be subordinate either to NATO or to the European union. It is expected that there will be organic links, and no doubt that will be a matter to be discussed as we come towards a treaty at Maastricht. There are several things that we are clear about concerning the WEU. It should not duplicate NATO decision-making; it should not duplicate NATO structures; it should not be subordinated either to the union or to NATO; and it should not discriminate between European allies favouring some against others depending on their membership of the Community or not.
I congratulate the Prime Minister on a broadly successful NATO summit. May I welcome in particular the initiatives taken to draw in the emerging democracies of eastern Europe and to widening the strategic concept of NATO?
May I also tell the Prime Minister how welcome are the steps, limited though they are, that Heads of Community Governments have taken on Yugoslavia? In view of the daily increase in the oppression and brutality of Croatia and the bombardment of Dubrovnik, does he realise that many of us sometimes wonder whether we have done all within our power in that tragic situation and whether we have done enough to stop those events? On the broad thrust of the Prime Minister's statement, does he agree that there is nothing inimical between support for NATO and the establishment of a common security and defence policy for Europe? Will he confirm, as I asked him to do the other day, that the Government's policy on the matter remains that stated in the Anglo-Italian declaration less than six weeks ago—to work for a common security and defence policy in the inter-governmental conferences on political union?We are looking for a common defence policy. The European defence identity is important, and it should be built up, but not as subordinate to the European Council because that would inevitably lead us into the position where we would be establishing competing structures to NATO and, in so doing, would weaken NATO. I believe that the right hon. Gentleman shares my view that the primacy of NATO is essential not merely for the security of our country but for the peace of Europe. I think that our position on that is entirely clear.
I was grateful for the welcome that the right hon. Member for Yeovil (Mr. Ashdown) gave to the strategic concept and for his earlier remarks. As regards Yugoslavia, it is a great and increasing tragedy and does not seem to be susceptible to reason. I very much regret that. The Hague conference made no progress on 5 November. I am delighted to say that Lord Carrington is returning to Belgrade today at the request of European Community Foreign Ministers, who were meeting this morning. I hope that he will be able to make progress, but there does not seem to be much indication on the Yugoslavian side that it will return to the peace conference and negotiate constructively.My right hon. Friend deserves the warmest congratulations for the successful and necessary outcome of the conference. Does he agree that the one weakness of NATO is the reluctance of the republic of France to join the integrated command system? Will he make it clear that it would be widely welcomed by the rest of the members of the alliance if France could find her way to rejoining what she left?
France is an important member of NATO and a long-standing ally of ours inside NATO and without, but I certainly share my hon. Friend's view: I would welcome its return to the integrated structure.
Is the Prime Minister aware that the North Atlantic Assembly extended associate delegate status to former members of the Warsaw pact some time ago and that it brought the Baltic states into the same relationship at its Madrid conference last month? I know how welcome in those circles the proposed North Atlantic Co-operation Council will be, and how commendable was the part that the Prime Minister played; he is to be warmly congratulated. However, is he aware that in those same circles and further afield within the alliance any proposals, such as the recent French proposal, that may impinge on the responsibilities of NATO for the security of Europe or that will weaken the transatlantic bridge will be viewed with deepening anxiety?
I entirely agree with the hon. Gentleman's third point. He is a specialist in these matters, so his support is especially welcome and I am grateful for it. Events have proved how far-seeing and correct the North Atlantic Assembly was in its actions some time ago. I am grateful for the hon. Gentleman's confirmation that the new co-operation body that we have established will meet with a welcome.
My right hon. Friend has rightly stressed that we are offering a helping hand not only to eastern Europe but to the Soviet Union. It is not beyond the bounds of possibility that in the next few months we shall see the total collapse of the distribution network within the Soviet Union. In those circumstances, does my right hon. Friend envisage that we might be called upon to provide necessary infrastructure by the use of NATO troops offering the hand of friendship to the Soviet Union?
I do not believe that that will be necessary. It is certainly possible that there will be difficulties with food distribution and the availability of food, and, in particular, with animal foodstuffs in the Soviet Union. We are seeking to arrange with our partners in the European Community a proper distribution system to meet that eventuality. There is now the equivalent of about $10 billion of assistance available to the Soviet Union. Much of that cannot be disbursed until the completion of meetings with the Soviet Union to determine where the need is and how we can most appropriately meet it without duplicating the assistance that is already available.
Will the Prime Minister clarify part of his statement on the NATO summit? The second page states:
What is the status of the "report"? The statement is about a NATO meeting. Too often the EEC has been greatly influenced by the policies of Italy and Germany and by support for Croatia, and has not concerned itself with the wider problems of Yugoslavia. What is the role of NATO in all this? Will it play a part? The EEC has been great at talking, but little else."Heads of Government received a report on Yugoslavia following a meeting of Community Foreign Ministers with Lord Carrington."
The right hon. Gentleman is being unfair to the activities of the EC. A great deal of effort has been expended to alleviate the situation in Yugoslavia. Thus far it has not been successful. It is the view of the NATO partners, collectively and individually, that the European Community's action has been helpful and should continue, and that it provides the most likely forum to bring the parties together at a peace conference to obtain a satisfactory conclusion and the ending of bloodshed. On the basis of that collective view, the Foreign Ministers who met, whose Governments are members of NATO, reported to Heads of Government and NATO, so that NATO could issue its own statement.
May I congratulate my right hon. Friend on his sound leadership at the recent NATO summit and on the fact that he managed to secure agreement on new links between eastern Europe and NATO, and recognition of the primacy of the role of NATO in European defence? Will he confirm that, so long as there is a Conservative Government in this country, American troops will always be welcome on British soil, in contrast to the approach of the Labour party which, for many years, has campaigned to have American bases removed from the United Kingdom?
I am grateful to my hon. Friend for his remarks. I confirm that American troops will be welcome in this country. I believe that that is the view of our partners in Europe. It was clearly expressed in that fashion during our discussions of the past few clays. I speak with particular interest in this matter, as there is a large American air base in my constituency. American troops are welcome here and I hope that they will continue to stay.
Should we not welcome the prospect of a European defence and foreign policy as a way of escaping from our humiliating status in relation to the United States? Would not it have the advantage that we would never again have the degrading spectacle of Ministers coming to the Dispatch Box and defending the bombing of Vietnam, terrorism in Nicaragua, the invasion of Grenada and many other disreputable episodes in post-war history, to which we have been shackled by our long relationship with the United States?
On the first part of the hon. Gentleman's question, I welcome communal European policies on defence providing they are agreed intergovernmentally and agreed by unanimity. When that happens, it strengthens the foreign policy of the individual countries and of the European Community collectively. That is the way in which we have been operating in the past few years.
I do not agree with the hon. Gentleman's assessment of our relationship with the United States or with the individual examples he gave. One of the reasons why he has the freedom to stand here and express such views is that the success of the alliance depends largely on the Americans, who have remained here since the 1940s to help to protect Europe.I welcome my right hon. Friend's excellent statement. Does he agree that one of the tragic features of the previous occasion when Europe was in a state of reformation, just after the first world war, was the American decision to withdraw? Will my right hon. Friend confirm that he has never been a member of an organisation that has poured scorn on the United States, picketed their bases, and spat on American service men?
I can certainly confirm that. The United States will stay in Europe, although it is now recognised that it will reduce the number of its troops here as a result of the changed circumstances on the German border. Clearly there is now a much smaller need for a large military land-based presence than there was when the Soviet Union had troops in eastern Germany. There will be changes, but the commitment to the defence of Europe will remain.
The Prime Minister and his NATO allies have discussed developments in the Soviet Union and argued that there should be no further proliferation of nuclear weapons. Can the right hon. Gentleman therefore explain to the House what arguments he uses to the Soviet Union to explain the decision of the Government, and indeed of the official Opposition, to have four Trident submarines as part of their defence strategy? Is he aware that hardly a single tear was shed in Scotland this weekend when the Poseidon submarines left the Clyde, yet we are now expected to accept Trident while at the same time our conventional forces, including the regiments, are being cut. How does he square the circle?
The hon. Lady may not be fully aware of what has been happening. NATO has agreed that an 80 per cent. reduction in nuclear weapons is in prospect. That will involve the elimination of all nuclear artillery and short-range Lance missiles. That reduction has come about because NATO was so staunch in recent years in keeping its nuclear weapons, which forced upon the Soviet Union the need for negotiated reductions on both sides of Europe. That is the reason for the reduction in the nuclear threshold. That reduction is welcome and has been achieved through the policies of the Conservative party, not those advocated by the hon. Lady.
Faced with the apparent collapse of central control in the Soviet Union and the new assertiveness of the republics such as the Ukraine, which wants to control its own nuclear weapons, is my right hon. Friend happy with the way in which NATO proposes to handle future arms negotiations with those fragmented republics? Should the republics take their own line on nuclear weapons, is my right hon. Friend satisfied that there are enough safeguards in place?
My hon. Friend touches upon an important point. In future it will clearly be much more difficult to carry out negotiations on nuclear reductions until the circumstances in the Soviet Union are clarified and until we are clear precisely who has control over nuclear weapons in the Soviet Union and who can negotiate for them. It is precisely for that reason that we made it so clear in our statement that we expect the republics to honour the START agreement and the CFE agreement and to look towards non-proliferation. There is a great deal of discussion to be had upon this matter, and the North Atlantic Co-operation Council will be one forum in which that can begin.
Given that the Rome summit renounced any extension of the geographical limits of its competence in 1949, and mindful that the real threat today is the political and economic stability of the former Russian empire—witness the decision of newly independent states over the renunciation of their commitment to hand back nuclear weapons—does the right hon. Gentleman agree that that is a matter for regret? Does he agree that the political talks already agreed with eastern European Foreign Ministers should be continued through military talks as well?
I am not sure what conclusion one would draw from the hon. Gentleman's first assertions. It is certainly true that the threat from the Soviet Union has changed and perhaps is changing. That is no reason for us to lift our vigilance in any sense, and there is no mood among NATO members to do so. But there is a mood in NATO to enter into much closer dialogue with the east European nations, including the Soviet Union, to help to continue to diminish both the threshold of armaments and the balance of risks that has existed in the past. That is of critical importance, but it must be done steadily, carefully and without putting our own security at risk.
Has my right hon. Friend seen any indication from the French Government that they might rejoin the military command structure of NATO? Will that form part of his negotiating stance on a European defence policy, having France back into NATO fully, with possibly even Eire joining the alliance?
I have had no indication that the French Government are likely to move back into the integrated military structure. As I said, we would welcome that in NATO. While I do not think it is imminent or something that we are likely to see for quite a few years, there is no doubt a willingness among NATO to accept it. As for discussions within the European Community, I do not think that that would be a practical negotiating point, even though it would be welcome.
I understand the Prime Minister seeming to throw up his hands in despair over Yugoslavia, but may I ask whether he is aware of the appeal by the mayor of Dubrovnik for assistance in relieving the trapped people of that tragic city? Is he also aware of statements apparently made by the Presidents of Croatia and Serbia for the first time recognising the need for a peace-keeping force? Does he agree that it is imperative for there to be an early meeting of WEU with the authorities in Croatia and Serbia to test the credence of the statements of those Presidents?
To keep the peace one must first have a peace, and that was the purpose of trying to ensure, through the conference, that a peace was established. I do not believe that in the absence of that secure peace, and in the absence of both sides being prepared to keep the peace and be anxious to see a peace-keeping force there, it would be a prudent or wise proposition to send troops there.
Further to the question asked by the hon. Member for Liverpool, West Derby (Mr. Wareing), at a time when the eyes of the world are focused with horror on the destruction of the ancient and historic city of Dubrovnik, does my right hon. Friend appreciate that there is some disappointment that there appears to be no discussion about the possibility of short-term or emergency measures to alleaviate or in any way relieve that catastrophe? In particular, there should be discussion of the fact that some criticism should be levelled at those European countries which are clandestinely supplying arms to the contestants in Yugoslavia. Is it possible to put a stop to that practice?
I appreciate the point that my hon. Friend makes, but it is extremely difficult to see what in practice could be done while the fighting continues. There is absolutely no doubt that there is a will to assist, when it is possible and practicable to assist. At the moment I cannot immediately see how we could do that. I assure my hon. Friend that the point is of great importance and that we shall keep it under review.
The Prime Minister reported the difficulties that surfaced at the meeting when it came to the idea of involving western European forces in Yugoslavia. How did the discussions view the possible proliferation of nuclear weapons in Kazakhstan and the Ukraine, both Governments of which have said that they would like control of their nuclear weapons? If we cannot interfere with the nationalisms of western Europe, how can we interfere with the nationalisms of far-flung areas of the world?
To be technically correct, it is not proliferation in those republics because the nuclear weapons are already there. We seek to ensure that those nuclear weapons are under a single central control so that we are in a better position to assure our own security. There is complete understanding of that in the republics. We have made it clear in the Rome summit and elsewhere that we shall take those securities into account when we discuss the economic and other assistance that we may be able to provide to the republics and to the Soviet Union centrally.
Is it not an essential strategic objective of the NATO powers to assist the forces of democracy and liberalisation in the Soviet Union against the dangers of a counter-coup? Will my right hon. Friend assure us that the NATO powers will do all that they can to assist the Soviet Union in its immense difficulties?
My hon. Friend raises a central point, and I am happy to give a categorical assurance. Much of the assistance may be economical and through forums other than NATO, but his point is none the less entirely valid.
I welcome the decision to strengthen the Western European Union. However, will the right hon. Gentleman forgive me if I sound rather sceptical about that proposal because when the WEU presidential committee sought expert advice on armed intervention in Yugoslavia the prospect of getting it from the British and French defence Ministries and from the Institute for Defence Studies was vetoed by Herr Genscher, the current president of the ministerial Council? The WEU feels that it is being side-tracked on all those important issues. It needs the confidence of knowing that it has an important role to play.
I share the hon. Gentleman's views, as crystallised in his last couple of sentences. It is important that the Western European Union should be confident that it has an important role, and that that important role is clearly defined. We began to define it at the Rome summit and it will be crystallised further once we have completed the discussions at Maastricht. However, that the WEU has an increasing role in the defence of Europe as the European pillar of the alliance is undoubted.
rose—
Order. We have a heavy day ahead of us. I shall allow questions to continue until 4·15 and then we must move on. I hope that hon. Members will ask brief questions so that most hon. Members will have an opportunity to participate in the debate.
Will my right hon. Friend say a little more about a rapid reaction force? Is not there a real danger in multi-country political control resulting in nothing happening if there is a real crisis? Does he agree that it is different from the previous situaton in NATO, when there was clearly only one real enemy and everyone knew where the threat came from—[Interruption.] In future, however, that may not be the case and a rapid reaction force with multi-country political control may never happen. Will my right hon. Friend comment on that?
I regret to say that I could not hear every aspect of my hon. Friend's question. A rapid reaction corps is a new system. It is a new way to respond more flexibly and speedily to the changed circumstances in Europe and the need for a different form of defence in Europe. It is under a different command. We command the land forces in the rapid reaction corps. The NATO assessment is that that is the right way to proceed and will maximise defence at minimum cost to the alliance.
Given that NATO was a creation of the cold war in 1948, does not the Prime Minister understand that many of us are disappointed that the NATO summit did not use the opportunity to wind up the organisation altogether and rid itself of nuclear weapons rather than prolong a military alliance that could have been transformed into a peaceful alliance of European countries?
NATO has played a great role in ensuring the freedom of the whole of eastern Europe, and I think that the hon. Gentleman should welcome that. If his suggestion is that NATO should be wound up because there is now no military threat, I say to him that the huge stock of nuclear weapons that still exists on Soviet Union soil is of such a scale that I believe his opinion will be shared by very few people.
Will my right hon.Friend accept my sincere congratulations on Britain's role in what was obviously an historic, far-reaching and forward-looking meeting, especially its role in ensuring the promotion of peace throughout Europe and the maintenance of the essential link with the United States of America? Will he confirm that, when he mentions the word "peace", he means not peace alone, but peace with freedom, which has always been demanded by the people of the United Kingdom and the United States? If he agrees, will he include that small but vital word in future NATO communiqués?
I agree with my hon. Friend's definition, but I believe that it is implicit in the way that the term is used in the declarations made from the Rome summit. I am grateful to him for his earlier remarks and reaffirm my view that the United States linked with NATO and United States troops in this country are both essential for our freedom.
When the Prime Minister discussed with other NATO leaders his determination to go ahead with the tactical air-to-surface missile weapon system, did not some of the other leaders suggest to him that it was a little odd for Britain to be going ahead with a new weapon system when the main threat of the talks involved non-proliferation and disarmament? Did he discuss with the west Germans whether they would be happy for us to base such a system on their soil?
It was not a matter of discussion at the NATO summit, but we need an appropriate mix of nuclear weapons, both now and in the future. If the day comes when we do not, no one will be more pleased than me, but at present we need a proper mix of nuclear weapons, and will continue to do so for the foreseeable future.
May I express my appreciation for my right hon. Friend's constructive work in ensuring that there is no incompatibility between strengthening Europe's contribution to its own defence and retaining the primacy of NATO for the defence of alliance territory? Are other countries of the Western European Union assigning permanent representatives to NATO to the WEU ministerial Council as we are? Have plans been advanced to encourage the WEU to take a more active role in out-of-area operations and contingencies?
The answer to the latter question is yes, and we have suggested to our partners that they should assign their permanent representatives to the new organisation. They have not all concluded precisely how they will react, but I have great hopes that they will do so.
A few moments ago the Prime Minister was reminded of the fact that the last United States' navy nuclear submarine sailed out of the Firth of Clyde at the weekend. Could not that significant event be seen as an advance signal of the eventual American withdrawal of its membership of NATO? Is there not a growing body of opinion in America that believes that Europe should be defended exclusively by the forces of European nations?
The answer to the hon. Gentleman's first question is no. The Americans will have much longer range submarines in future, but there is no doubt that it is, and has been for many years, the policy of the American Administration that the Americans should continue to play a key part in the defence of Europe. That view was expressly reaffirmed by the President at the Rome summit.
May I join my hon. Friends in congratulating my right hon. Friend the Prime Minister on the significant personal role he played in securing for NATO its position as the linchpin of western security and on ensuring that there is a continued welcome for the United States and Canada to help in the defence of the north Atlantic? Is that not evidence that as long as my right hon. Friend retains his present position the defences of our country will be secure?
I am most grateful to my hon. Friend for his kind remarks. I regard it as a matter of prime importance that defence should remain central to our policies and that no risks should be taken with British defence. No risks have been or will be taken.
The Prime Minister referred to a possible economic blockade of Yugoslavia. Is not that interference in another nation state; and how would he respond if other countries in Europe or elsewhere told him how to organise Northern Ireland?
If we were not seeking to stop the bloodshed in Yugoslavia, the hon. Gentleman would be the first Member of this House to criticise us.
Does my right hon. Friend agree that in uncertain times, and with the possibility of loose nukes in eastern Europe, in the Soviet republics and elsewhere, it is essential that under his leadership the Government not only retain that last guarantee of our national independence and security—the British nuclear deterrent—but that we improve and modernise it?
I entirely agree. Some reductions in nuclear weapons are in prospect, as I said earlier, but I can affirm that we propose to update Polaris and that we propose to build and keep Trident. That is the absolute guarantor of our defence, and that will remain our policy in future.
Was not the plea that reportedly came from Croatia and Serbia today for military involvement in Yugoslavia not so much for a peace-keeping force as for an intervention force to separate the two sides so that a political settlement can be reached? The two sides simply cannot trust each other with ceasefires arranged from The Hague that do not hold on the ground. Is it not time that the Government went to the Security Council seeking sanction for a military intervention force so that a political settlement can be found? If they do not, we shall have to witness these people slaughtering each other, and that is disgraceful in a European country.
I do not believe that that would be the right way to proceed—for the practical reason that I do not believe that it would be successful. It would perhaps increase and extend the fighting to Bosnia, Macedonia and elsewhere, which would not be in the interests of Yugoslavia as a whole, if it still exists. The only way forward for the time being is to try to proceed as we are and to hope that Lord Carrington's latest mission to Belgrade is successful.
Bearing in mind the almost unanimous support given in the House this afternoon for the continuing role of NATO as the linchpin of Western security, would my right hon. Friend be surprised to be reminded that only a year or so ago the Norwich city council banned a NATO exhibition? Would he be further surprised to learn that the council is controlled by the Labour party? Does he not therefore think that its support for NATO is skin deep and that it is vital that he remain in charge of these matters up to the next election and beyond?
I am grateful to my hon. Friend. I am surprised that such a sensible area as Norwich should have a Labour council, but I am not surprised by its action.
New Members
The following Members took the Oath or made and subscribed the affirmation required by law:
- Ashok Kumar Esq., for Langbaurgh
- Derek Anthony Enright Esq., for Hemsworth
- Nicol Ross Stephen Esq., for Kincardine and Deeside
Points Of Order
On a point of order, Mr. Speaker. I have not raised this matter before. I have no wish to question your ruling. I am a member of the Select Committee on Health and, as you know, the House has referred to the Select Committee on Privileges the important issue of the leaked report. In view of doubts that have been raised in the House and elsewhere, may I ask for clarification on whether the Privileges Committee is free to consider the role of the Secretary of State for Health and senior officials in his Department and, most important, the role of the parliamentary private secretary to the Secretary of State, the hon. Member for Esher (Mr. Taylor)? Can you make it clear that these matters will be dealt with urgently and, in view of the credibility of all Select Committees, will you ensure that a firm conclusion is reached?
I confirm that the Committee is free to look into all those matters.
Further to that point of order, Mr. Speaker. Is not it extraordinary that Opposition Members are sanctimoniously concerned about leaks when their Front-Bench spokesmen live off leaks from Departments?
That is not a matter for me.
On a point of order, Mr. Speaker. I seek your guidance about a matter on today's Order Paper that is causing some confusion. Early-day motion 117 commends the Bolshevik communist revolution. [HON. MEMBERS:"Hear, hear."] Some Opposition Members say "Hear, hear". As you know, Mr. Speaker, the new model Labour party has been assiduously trying to distance itself from its Bolshevik friends. However, a Labour Whip has signed this motion. Can you clarify Labour party policy by saying whether Labour is in favour of Bolshevism or against it?
The hon. Gentleman and the House know that early-day motions are expressions of opinion. The motion was in order when it was put down and it is open to any hon. Member to support it—or amend it—if he or she wishes.
Further to the previous point of order, Mr. Speaker. On Thursday, a correct point of order was raised with Mr. Deputy Speaker about what one should do with matters arising from the first report of the Select Committee on Health. It was ruled clearly that as this was being automatically sent to the Select Committee on Privileges, it could not be discussed on the Floor of the House. However, just before the point of order was raised, a group of Labour Members came in and raised, on spurious points of order, allegations against the Secretary of State for Health arising from matters that did not appear in the report. They implied that these allegations were in the report. How can we refer this matter? Is it for you, or is it a matter for the Select Committee on Privileges? There was a conspiracy among Labour Members to put on the record points that do not arise from the report.
Did I hear the hon. Gentleman say that this happened on Thursday when I was in the Chair? This is Tuesday and it would have been appropriate for him to have raised this matter then. We can go no further on this point today.
Orders Of The Day
Local Government Finance Bill
[SECOND DAY]
Order read for resuming adjourned debate on Question, That the Bill be now read a Second time— [11 November.]
Question again proposed.
I must announce to the House that I have not selected either of the amendments on the Order Paper, but they may be referred to during the debate.
4.25 pm
At the height of the first day's debate on the Second Reading of the Local Government Finance Bill, there were six Labour Back-Bench Members present. There are now about 24, but that count is falling fast. I am sure that the House will start to fill rapidly as I address it at the start of the second day of debate on the Bill. After all, the Scottish clauses comprise a substantial proportion of its contents. The House will be aware that, for the most part, these are closely equivalent to the clauses which relate to the introduction and operation of the council tax in England and Wales which my right hon. Friend the Secretary of State for the Environment described yesterday. It is important that we have this opportunity to concentrate on the Bill as it affects Scotland.
We have already done some of the groundwork for the new tax. It was necessary, if we were to meet the target of I April 1993 for introduction of the tax, to ensure that the first step towards the levying of the tax—the valuation of properties—was begun as soon as possible. Therefore, we enacted, before the summer recess, the Local Government Finance and Valuation Act 1991. That enabled a considerable amount of groundwork for the valuation exercise to be undertaken over the summer. In Scotland, the assessors, in discussions with the Inland Revenue valuation office in Scotland, have been preparing for the actual task of valuation, which will get under way shortly. Therefore, we are very much on course for the introduction of the new tax in 1993. Clauses 84 to 92 carry over and develop the arrangements for valuation set out in the 1991 Act and provide for changes to be made in lists to take account, for example, of new properties and appeals against taxation. The hon. Member for Glasgow, Garscadden (Mr. Dewar) described our valuation arrangements for Scotland as a recipe for disaster. I am sure that he did not intend to insult thereby the professionals involved—the assessors—who will be responsible for the valuation and the Commissioners of Inland Revenue, who are responsible for ensuring consistency in the way in which the valuation is undertaken throughout the country. I am glad to reassure him that all is on course and going smoothly. Our decision to give the assessors that responsibility reflects the views put to us during the consultation which persuaded us that they were best placed to undertake the work and to do the job well within the timetable allowed. Our decision to give the Commissioners of Inland Revenue responsibility for overseeing the work reflected our understanding of the demand in Scotland for consistency in the way in which taxes operate throughout Great Britain. The arrangements are working well and I have every confidence that the job will be completed satisfactorily on time. Clauses 70 to 73 provide for the introduction of the council tax set separately by the regional, islands and district councils in respect of dwellings in their areas. Clause 74 provides for the valuation bands into which dwellings are to be placed and which have already been described in the Domestic Property (Valuation) (Scotland) Regulations 1991. It also provides for the range of tax payable for the bands. I think that it would be helpful now if I described in some detail what the effect of the banding arrangements will be, as there has been considerable misunderstanding of the provisions. The hon. Member for Garscadden said last week that he finds it incomprehensible that many properties may stay in the same band in perpetuity. But why should they not? A dwelling in Scotland that is placed in band D will have been assigned that band because its value at 1 April 1991 is over £45,000 but does not exceed £58,000. That value is around the Scottish average. Of course, the Bill includes provisions to allow the assigned band to be changed if the value of the property changes sufficiently to take it into another band. If the band is higher, however, the change can be made only on change of ownership of the dwelling. If there is no such change, the banding decision will remain unchanged. The banding system irons out much of the effect of relative changes in property values within an area which, under the rating system, brought regular pressure for revaluation. The need for general revaluations is therefore much reduced. If, however, such a revaluation were required, say, 20 years hence, the same house in band D would probably remain a band D house, provided that its relative position within the range of property values had not changed so much as to take it outwith the new parameters for that band. Clause 74 places an upper limit on the amount of tax that any person can be liable to pay. This aspect of the arrangements—inevitably, I suppose—has produced the standard response that the rich are being protected. That neatly ignores the imperfect correlation between people's circumstances and the value of their home. It demonstrates only the Labour party's vindictive desire to extract the maximum revenue from high-value properties regardless of the circumstances of their occupants, or any relationship between the tax burden and the services that are provided.Will my right hon. Friend explain to a simple fellow like me why it is considered sensible to return to a system of socialist taxation based on the capital value of an asset that produces no income and that is unrelated to the services for which the occupant is paying and to the income of the occupant, this asset being normally called a home?
My hon. Friend gives an admirable description of the so-called fair rates proposals of the Labour party, to which we do not intend to return.
Clause 75 defines liability to pay as an individual liability that is dependent on the relationship that persons have with dwellings. This liability would fall in the first instance on the resident owner, then the resident tenant and so on. Clause 79 provides for discount where there is only one or no resident in the property. These arrangements will be fair and simple to administer. During our debate on the Gracious Speech last Wednesday, we heard a different story from Opposition Members and especially from the hon. Member for Garscadden. The hon. Gentleman is determined, as ever, to see administrative nightmares where none exists. His contacts in local government have told him, presumably before even seeing the Bill, that discounts will be difficult to administer, and uncritically he believes them. When it comes to the hon. Gentleman's examples of why the system will be difficult to administer, what do we find? There is a complete misunderstanding on his part of how the discount proposals will work in practice. As the mouthpiece of the Convention of Scottish Local Authorities, he asks whether authorities are supposed to send out bills for 100 per cent. of the liability to everyone and leave discounts to be claimed by householders. The answer is to be found in paragraph 4 to schedule 2. Local authorities are required to take reasonable steps to ascertain entitlement to discount, but in the absence of firm information they can send out an undiscounted bill. In other words, as a matter of sensible administrative practice, authorities should make efforts to ascertain discount households before sending out bills. [HON. MEMBERS: "How?"] By referring to existing information.Can the Secretary of State tell me how local authorities will do what he describes?
They can make reasonable efforts by examining existing information or by carrying out a canvass. There are local authority housing tenancy lists. Authorities will be able to examine electoral rolls. They could even study community charge registers. They are most definitely not required to know the composition of every household in their areas before billing. There is no question, therefore, of a register being required.
We come now to what might be called COSLA's auntie problem. The hon. Member for Garscadden quoted COSLA as being concerned about what would happen if someone's aunt came to stay for a couple of months. Again, the answer is in the Bill—in clause 79 for Scotland. Discounts are calculated according to who is resident in a dwelling, and "resident" means having one's sole or main residence there—a concept not unfamiliar to Labour Members. In the case described in our earlier debate by the hon. Gentleman, the local authority would make its decision to withdraw or not to withdraw discount on the basis of whether it thought that the dwelling in question was the auntie's sole or main residence. In fact, if she were there for two months, it would be unlikely that it would regard her as a resident. However, there will be a right of appeal against any decision. Clauses 81 and 83 make provision for the appeal arrangements that will apply in Scotland. As the House will be aware, appeals under the community charge are, for the most part, made initially to the community charge registration officer and thereafter to the sheriff under summary procedure. That system has, by and large, worked well. However, we are aware of the concerns that have been expressed about the system as compared with the arrangements in England and Wales, where appeals are made to valuation and community charge tribunals. We have taken note of those concerns in formulating the arrangements for the council tax. Appeal on questions of valuation liability and levying of the tax will therefore lie with valuation appeal committees, with further appeal on points of law to the Court of Session. Clause 94 and schedule 7 make provision for capping. They re-enact the arrangements already provided in the Local Government Finance and Valuation Act 1991, which is to be repealed and replaced by the Bill and do not, therefore, make any changes to the present arrangements. The House will be aware that I announced last month the principles that I am minded to adopt next year in considering whether planned expenditure is excessive or has increased excessively. At this point, it might be appropriate to spend a few moments on a specifically Scottish aspect of the Bill.Before my right hon. Friend passes on to a specifically Scottish aspect, I wish to raise a general point. I am glad that my right hon. Friend the Secretary of State for the Environment and my hon. Friend the Minister are on the Front Bench. I agree with my right hon. Friend that the intervention of my hon. and learned Friend the Member for Perth and Kinross (Sir N. Fairbairn) aptly summed up the Labour party's position.
My right hon. Friend will be aware that most Conservative Members accept that, while some taxes may fall on income and others on spending, there is scope for a modest tax to fall on what we might describe as the amenity of property. One lesson that we learnt from the transition from domestic rates to the community charge was the injustice of the former rates system to the single-person household. My right hon. Friend is probably aware that there is considerable pressure from single-person households for an increase in the 25 per cent. discount. Will he and our right hon. and hon. Friends, over the next few weeks, consider whether there is scope for increasing that discount to something more related to the ability to pay of the single person?My hon. Friend made a point that obviously concerns him, and he did so lucidly. I and my right hon. Friend are grateful for his support for the underlying principle of the Bill. I am sure that he will wish to develop that issue in Committee, if he is fortunate enough to be a member.
We gave close consideration to the appropriate discount level and I am sure that my hon. Friend will agree that there is a certain symmetry and element of justice readily apparent in the concept of a 25 per cent. discount for a one-person residence and a 50 per cent. discount for a house that has no resident occupant.What will the Scottish electorate think when they discover what the millionaire Secretary of State for the Environment, who is sitting on the right hon. Gentleman's left, has to pay? Will they think that he is getting a massive discount, as he will have to pay only a small amount? No doubt the Scottish electorate will think that he drafted the Bill to suit himself.
If my right hon. Friend were fortunate enough to be resident in Scotland, he would find that about 89 per cent. of the cost of local government services was funded by central taxation. If my right hon. Friend is fortunate enough to be in the circumstances described by the hon. Gentleman, he is making a far larger contribution as an individual to income tax and other central Government taxation than would otherwise be the case.
As to the Scottish electorate, I reassure the hon. Gentleman that they were at the forefront in seeking the abolition of domestic rates and they will be at the forefront in resisting their reintroduction by the Opposition. I want now to discuss an important aspect of the Bill which affects Scotland—the council water charge set out in schedule 11.