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Commons Chamber

Volume 203: debated on Tuesday 4 February 1992

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House Of Commons

Tuesday 4 February 1992

The House met at half-past Two o'clock

Prayers

[MR. SPEAKER in the Chair]

Oral Answers To Questions

Defence

Low Flying

1.

To ask the Secretary of State for Defence what recent representations he has received on low flying; and if he will make a statement.

The Parliamentary Under-Secretary of State for Defence Procurement
(Mr. Kenneth Carlisle)

My Department has recently received a number of representations from hon. Members and the general public on matters relating to military low-flying training.

May I add to those representations the ones that haw been made to me locally by committees responsible for organising the summer common riding festivals in the central Borders and Scotland? It does not take much imagination to understand the effect of a Tornado flying at 250 knots and at 250 ft, on a cavalcade of 200 horses on top of the Border hills. Will the Minister consider increasing the current exclusion zones of 1 nautical mile to about 5 nautical miles in order to give those cavalcades some protection?

I am grateful to the hon. Gentleman for giving me notice of his question. I have considered the point carefully. As he knows, we are always ready to give an avoidance of 1 mile on each side of the tracks used by these riders. The problem is that there are 75 ridings a year and to give a wider berth would concentrate our low flying over other parts of the countryside to the detriment of the inhabitants there. We have had few complaints from those taking part in the ridings and nearly half the ridings take place at weekends when there is little low flying. I do not believe that the case has been made for a change in our policy.

Do my right hon. and hon. Friends agree that if we are to have an effective Royal Air Force, it is essential that our pilots are given the best possible training, including training in operating at below the level of enemy radar? Do my right hon. and hon. Friends agree that the magnificent and heroic performance of our pilots in the Gulf thoroughly vindicates the training programme that we have had up to now? Will they accept that in Lincolnshire, where we have more RAF stations than any other part of the country, there is wide appreciation of those facts?

I am grateful to my hon. Friend for the realistic way in which he faces the problem. In Lincolnshire we are proud of the role of the RAF and its life in our county. It might be helpful to know that it is planned that low flying by jets will decline by about 30 per cent. over the next three years. In the worst-affected areas, such as the Lake District, the Borders and Wales, we are establishing community relations officers to provide a closer link with local people.

Trident

2.

To ask the Secretary of State for Defence if he will make a statement on the progress of the Trident programme.

3.

To ask the Secretary of State for Defence when he now expects to place the order for the fourth Trident submarine.

The Trident programme continues on time towards its in-service date at an estimated final cost of £10,518 million. This marks a further small reduction against last year's estimate and an overall real reduction of £3 billion against the original 1982 forecast.

We plan to place the order for the fourth Trident submarine with VSEL at Barrow as soon as contract negotiations have been satisfactorily completed.

Does the Secretary of State accept that the debate on Trident in Scotland is not on whether we should have three or four boats or on the number of warheads per missile but on whether we should proceed with expenditure which, over its lifetime, could amount to £23,000 million on a useless, dangerous military white elephant? Does the Secretary of State accept that there has not been, is not and will not be a majority in Scotland for the Trident missile system and that, ultimately, its deployment will depend on the consent not of the Westminster Parliament but of the Scottish people, and it will not be forthcoming?

I have not met many Scottish people who wish to be left exposed to the nuclear blackmail that could come from the huge nuclear arsenal which will remain for many years on the continent and in Russia. The Scottish people whom I meet who work in the shipyards at Yarrow take pride in building ships for the Royal Navy whose orders would presumably be lost to them if they had the pleasure of being represented by an SNP policy. I do not think that the 23,000 people presently involved in the Trident programme think that their efforts are wasted. They are proud of their contribution to the essential safeguarding of our country.

What does the Secretary of State believe to be the Russian assessment of our Trident programme and, indeed, their assessment of British public opinion on the subject?

The whole world had the opportunity of hearing on television what President Yeltsin thought. He said that the number of nuclear weapons at the disposal of the United Kingdom was not comparable with theirs and that, therefore, the matter was not worth discussion. The Opposition have complained for years that our determination to maintain an essential minimum safeguard for our country with a nuclear deterrent was somehow an obstacle to the necessary task of reducing the overblown nuclear arsenals of the super-powers, but President Yeltsin dealt with their arguments in one wholly destructive answer.

Will the Secretary of State confirm that fully two thirds of the costs of Trident have already been spent or contractually committed by the present Government? Will he further confirm that the consequences of the Scottish National party's policies would be to deprive many hundreds of people of their employment at Rosyth and on the Clyde while still leaving Scotland at risk from the consequences of a nuclear attack on Barrow or on the north of England? We would have all the risk but none of the advantages.

I am grateful for the hon. Gentleman's support which I take to be absolutely unequivocal support for the Trident programme. I wish I thought that his colleagues were beginning to share that idea—perhaps we have an alliance here. Not all the expenditure is committed. The hon. Gentleman and his colleagues can save money if they do not believe in the nuclear deterrent, and it is high time that they told the country what their priorities are.

The Secretary of State will be aware of the further 600 redundancies announced yesterday in the shipyards in Barrow which will bring to 4,500 the number of jobs lost since "Options for Change" was announced about 18 months ago. Will he therefore take this opportunity to emphasise the employment aspect as well as the strategic importance of the fourth submarine? Will he also note the observations of Barrow Labour party which has described the Opposition's promise to give work equivalent to that involved in a fourth submarine as ignorant and ill-informed?

Clearly, I heard with disappointment the announcement made by VSEL yesterday. I note that 10,400 are presently employed. It is a disappointment that there are to be 600 redundancies, but there is a continuing significant level of employment in defence at Barrow which is dependent on it and which has been sustained by the Government's commitment to a strong defence. I weep for Barrow's prospects were there conceivably any change in Government, because the right hon. Member for Manchester, Gorton (Mr. Kaufman) has said that the Opposition would replace a cancelled fourth boat with equivalent work only to be denounced by his own candidate in Barrow who used the words "ignorant and ill-informed".

Will the Secretary of State explain to the House the confusion that arose yesterday following the Prime Minister's statement on the United Nations meeting? The confusion arose between the subsequent press briefings given by the hon. and learned Member for Grantham (Mr. Hogg), the Minister of State, Foreign and Commonwealth Office, and the Prime Minister's statements about what were likely to be the maximum number of warheads on the Trident programme. Although I recognise that for obvious reasons the Secretary of State will not want to be locked or painted into a figure of 512 as the maximum, which is what it would be, will he tell the House whether, in the light of last week's discussions with President Yeltsin and the changes that have taken place since Christmas, the Government are now considering the minimum deterrent to be somewhat lower than they had previously considered it necessary to be?

The hon. Gentleman knows the situation perfectly well. We have never gone beyond the statement that we will have a maximum of 128 warheads per submarine. That is our position and that is where we remain. We have also made it absolutely clear that we will ensure that our deterrent is effective and absolutely credible, and that it puts real fear into any potential aggressor about the damage that he could suffer if he were to attack this country. That is our position and we have made it absolutely clear that we will do that within the terms of operating a minimum deterrent, which is obviously the sensible way to go.

The hon. Gentleman seems to be totally ignorant of and unable to adjust to President Yeltsin's announcement in which he made it absolutely clear that our determination to maintain a minimum deterrent is no obstruction to the determination that he and President Bush have to reduce the nuclear arsenals of the super-powers.

Defence Expenditure

4.

To ask the Secretary of State for Defence what estimates he has made of the effect on the reactive capability of United Kingdom defence industries of a reduction in defence expenditure to the Western European Union average.

We have no intention of reducing defence expenditure to the WEU average; we have made no estimate of the implications of such a reduction.

I thank my right hon. Friend. Does he agree that in this very uncertain world, if such a reduction were to take place, it would seriously jeopardise this country's ability to defend itself? That policy would destroy hundreds of thousands of jobs in defence industries, including many in my constituency, yet it has been endorsed on no fewer than three occasions by large majorities at the Labour party conference.

Yes, that is right. That policy has been endorsed by majorities of more than 2 million pounds—[Interruption.]—members on each occasion. It is especially interesting that, leaving aside the damage that such a policy would do to the services by wiping out 10 frigates, four submarines and four squadrons of Tornados, there has never been a suggestion in any of the texts that money would be returned to the taxpayer. In every resolution, there has been a reference to making the money available for other "social and economic priorities", thus confirming that the Labour party is the party of high taxation. Labour regards reducing taxes and defending ourselves as equally sinful.

It is a bit hypocritical both for the questioner and for the Minister, who is a representative of the Government of unemployment, to criticise potential job losses under a Labour Government. The Secretary of State has presided over the loss of hundreds of thousands of jobs in the defence industry in recent years. Since June 1990—[HON. MEMBERS: "Question!"] Since June 1990, 74,000 jobs have been lost in the defence industry. Since the Prime Minister came to power, 1,000 jobs have been lost each month. Some 4,500 jobs have been lost in Barrow. What a bunch of hypocritical mealy-mouthed people! When will the Minister stop the cuts in the defence industry or at least set up a defence diversification agency to help people such as those in Barrow who will be put out of work?

It is always interesting to note that the moment one reminds Labour Members of their party's commitment to high taxation, they lose control of the argument completely and deliver tirades along the lines of that to which the hon. Gentleman has just subjected the House. We regret very much the fact that there have been job losses in the defence industry—of course—and the figure is 25,000—[Interruption.] If the hon. Gentleman will not even listen to the reply to his argument it is his loss. The total losses have been of the order of 25,000, but the fact remains that there are still more than 140,000 people directly involved in the defence industry and more than 120,000 indirectly involved. Every one of those workers knows exactly what his likely fate will be should the Labour party ever return to power.

Is not it a strong strategic interest of the United Kingdom to maintain an effective and comprehensive defence industrial base, in case international circumstances change? In that regard, does my right hon. Friend support the WEU proposal of a European surveillance satellite system to engender confidence and ensure that arms control measures are adhered to?

It will be increasingly important to ensure that all surveillance is comprehensive and very widely directed. In no sector is that more important than in the field of nuclear proliferation. All countries that are committed to non-proliferation and all the signatories to the treaty must be prepared both for greater resources to go into the inspection process and to submit to greater surveillance.

Nuclear Weapons

5.

To ask the Secretary of State for Defence what steps he is taking to encourage non-proliferation of nuclear weapons.

The greatest immediate risk of proliferation follows the disintegration of the Soviet Union with its massive nuclear stockpile and large number of nuclear scientists. We are actively involved in discussion with all the former Soviet republics where nuclear weapons are at present located—particularly with Russia. We are also giving full support to the implementation of United Nations Security Council resolution 687, for the elimination of the Iraqi nuclear weapons programme.

I thank the Secretary of State for that answer. Does he want the British public to realise that 128 warheads per submarine equals 512 warheads for four submarines, and that that equates to 2,560 Hiroshimas? Even if he seeks to deploy fewer warheads per boat than the maximum possible, why should not other countries follow his example and say that that is also their ideal of a minimum deterrent? Does non-proliferation apply to everyone else but not to us?

The hon. Lady seems quite unaware of the fact that, not long ago, I announced from the Dispatch Box what is effectively a halving of our sub-strategic nuclear weapons. NATO will now restrict itself to only one nuclear system, as opposed to the Soviet Union—or Russia now—with three, and we in NATO can point to the fact that we will soon have about one tenth the number of nuclear warheads that we had 10 years ago. I hope that the hon. Lady will recognise the changes that have taken place. I remind her that, following President Yeltsin's recent visit and the welcome changes in connection with what is a hugely large arsenal of nuclear weapons, the top priority of proliferation at present is to ensure that we take action in the ways that I described in my answer. The fact that the hon. Lady rose with a prepared supplementary, ignoring the significance of the massive problems of the time, does her little credit.

Does my right hon. Friend agree that even if one ignores what is happening in the former USSR, there are other countries in the world that are potential aggressors and which either have nuclear capacity or may be near to acquiring it? Would not it be the height of folly to give away our own independent nuclear deterrent while any potential aggressor has the ability to strike at us?

I entirely agree. I was asked about proliferation. We have to face the fact that there is a bigger risk of nuclear proliferation at present than the world has ever known. As a result, while the right approach is to take the most positive steps that we can to help to deal with that problem, we have a duty to our own people also to ensure that we maintain that elementary, basic, minimum safeguard of our own nuclear deterrent. Anybody who dreamt of surrendering that basic safeguard at this time would be doing the gravest disservice to current and possibly to future generations in Britain.

May I welcome the attempts that the Government are making, in conjunction with the Russians and the Confederation of Independent States, to reduce and dismantle the nuclear weapons arsenals? That is a most welcome and urgent step. In the current discussions about the size of the nuclear arsenal, is the Secretary of State still committed to bringing on stream another replacement for the WE177 free-fall bomb? Although that may not be against a literal interpretation of the wording of the nuclear non-proliferation treaty, would not such a move be a gross affront to the potential proliferators who are reconsidering the need to indulge in the acquisition of nuclear weapons? Would it not be better for the country and for the nuclear proliferation process for the Government to abandon their next generation of air-launched cruise missiles?

The hon. Gentleman's supplementary question ignored the fact that we are talking about NATO policy. In fact, we are talking about a proposed change in NATO policy, that is what matters—not about a unilateral decision by the Government—which was agreed at the London NATO summit. We are considering the options at the moment, and I have nothing to add to that.

Will my right hon. Friend please confirm that it is absolutely necessary for us to have a minimum deterrent so that the people of the United Kingdom are safe? In terms of that deterrent, is it not right that when a submarine is cruising anywhere in the world's oceans, any potential aggressor who attacks the United Kingdom will stand the risk of unacceptable and devastating retaliation from us?

I am grateful to my hon. Friend; that is precisely the point. Indeed, that is precisely the point which was so clearly recognised by President Yeltsin. We have criticised the building-up of such a huge nuclear arsenal, but my hon. Friend may have noticed that President Yeltsin is talking of reducing the number of warheads to 2,500, which he regards as reducing to a deterrent. We believe that it is right to have a minimum deterrent so that no potential aggressor can think that this country could be attacked and that they could be unaffected by any retaliation.

Ex-Service Personnel (Housing)

6.

To ask the Secretary of State for Defence what plans he has to consult local authorities on housing requirements for ex-service personnel.

In consultation with the Department of the Environment and the Scottish Office, which are represented on MOD's housing task force, my Department has recently been in contact with all local authorities, seeking information on their arrangements for the provision of housing for ex-service personnel.

The Minister has said that his Department has contacted the local authorities, but when will the Government accept that the local authorities have the strategy and the enabling powers to make provision for housing, especially for the homeless and perhaps for some of the 40,000 personnel who will be leaving the armed forces in the near future? Why is the task force in consultation with the Housing Corporation but refusing to consult the local authorities which have that power? Is it not a fact that the Government still have such a bigoted bias against local authorities that they will even put at risk the future housing of our ex-service families?

Let me first put the hon. Gentleman right about the figure of 40,000—40,000 is the number that we have put on the reduction of personnel in the Army, but much of that reduction will be achieved by natural wastage. I remind the hon. Gentleman that about 30,000 people leave the armed forces every year anyway. We are expecting in excess of 10,000 redundancies, which will be spread over three years. We must put those numbers in perspective.

On the housing task force, we feel that the representatives of the Department of the Environment are well aware of the position of the local authorities in relation to housing. Their representations have been valuable. In addition, Lady Anson, the chairman of the Association of District Councils, has been in touch with my noble Friend the Under-Secretary of State for the Armed Forces.

Does my right hon. Friend accept that his contact with the Housing Corporation must be the best way forward and can be usefully developed? Will he further accept that service men are looking for the opportunity to obtain a rung on the ownership ladder and that the Housing Corporation and its satellite housing associations can most assuredly provide that? Is my right hon. Friend confident that nationwide assistance will be available to enable those excellent people to be rehabilitated in our community?

Yes. We are in touch on that. The question arises whether some of our married quarters may be sold to housing associations who will give priority to service men. Many different options are being considered. My hon. Friend might be interested to know that we sent out a questionnaire to 5,293 people who volunteered for redundancy and 76 per cent. of them returned it. Of those people who had volunteered for redundancy, 49 per cent. already owned their own homes and another 34 per cent. intended to buy. Therefore, the majority of those who are to be made redundant will either have their own homes or will buy them shortly after.

When the Minister next talks to the local authorities about this issue, will he point out that many of them no longer give rehousing priority to ex-service personnel, but expect them to go through the normal homeless families procedures? Does he agree that that is a pretty poor way in which to treat people who have given their lives to the service of their country?

I absolutely accept everything that the hon. Gentleman says. One of our concerns is that our ex-service men should not be in temporary accommodation. That is why we are considering the use of our married quarters to ensure that that does not happen.

Will my right hon. Friend consider further the approach that I have made to the Secretary of State that vacant married quarters in civilian areas around army camps should be co-ordinated into my right hon. Friend's scheme? If they are to remain empty at any particular time short-held leases could be used so that the barracks could be used for local housing rather than stay vacant.

Yes, this has always been a problem, but it has become worse recently, I am afraid, because of the people who have been made redundant and who have come back from Germany. The stocks of empty houses may be larger at this time. I take that point and we are keeping in close contact with local authorities.

Does the Minister accept that there is a real need and opportunity for bold and radical measures? Local housing authorities have been starved of cash for a number of years by the Government. However, local authorities and the Ministry of Defence have empty sub-standard housing on their books. Will the Minister release MOD votes to allow local authorities, in collaboration with the MOD, to bring empty housing owned by the local authorities and the MOD up to acceptable standards and then transfer it to local authority control for the express purpose of providing homes to ex-service personnel? Or will this Government's ideological opposition to council housing prevent them from doing that?

Most of what is being done by my Department—[HON. MEMBERS: "Reading".] It is a blank piece of paper. Most of that work is carried out in conjunction with housing asociations and is financed by the Housing Corporation. On the whole, we would prefer to dispose of blocks of married quarters to housing associations rather than to local authorities. We do not exclude that possibility, but we find that when we talk to local authorities that they do not have the money to buy married quarters in the first place.

"Options For Change"

7.

To ask the Secretary of State for Defence what further consultations he has had regarding "Options for Change", in the light of the disintegration of the Soviet Union.

We have set out our plans in "Britain's Defence for the 90s" and we are proceeding to implement those over the next four years. I do not propose future reductions in the light of the disintegration of the Soviet Union, and given the continuing instability in Europe and elsewhere.

Can my right hon. Friend assure the House, nevertheless, that the validity of the arguments behind "Options for Change" will be kept under constant review, not least because of the disintegration of the Warsaw pact, followed by the emergence of new power structures within the Soviet Union?

I appreciate that concern. One of the bases that underpinned "Options for Change" was the disintegration of the Warsaw pact, the establishment of independence in Czechoslovakia, Hungary, Poland and other former allies, the reunification of Germany and the disappearance of East Germany. We did not anticipate the rapid disintegration of the Soviet Union. There are some who advocate that, now that that has happened, the world is somehow a safer place. We do not believe that that is correct. We believe that the world is passing through a period of considerable instability and therefore we do not propose further reductions in our defence forces.

In any further consideration of "Options for Change" will the Minister take into account lessons from the Gulf war such as heavy lift, better intelligence especially on targeting, mine countermeasures, which may have inhibited an amphibious operation, and, above all, fire from friendly forces, which underlines the need for the IFF—identification, friend or foe—system which has so far eluded NATO?

I am glad to confirm that these lessons have been learnt from our consideration of the Gulf conflict. They have been discussed by both NATO and the Western European Union. Heavy lift and enhanced intelligence capability are two very specific matters that have been considered in those forums.

Defence Contracts (Devon)

8.

To ask the Secretary of State for Defence if he will visit factories in north Devon which have been involved in defence contracts and seek to maintain this link.

I thank my right hon. Friend for his brisk but satisfactory reply. Will he please bear in mind the fact that it is essential that, where possible, we buy from British manufacturers across the country? May I commend to him a visit to north Devon and ask him to remember Coutant's of Ilfracombe and firms like High Temperature of South Molton, Hobart's, CQC and others? It is important that we retain these excellent companies even if some of the swords become ploughshares.

My hon. Friend makes a very good point. All the firms that he has mentioned contribute to the employment of the 130,000 people who are directly concerned with the defence industry. He did not mention Cray Marine, a firm in his constituency that provides the Torpedo-handling system for the type 23s. That firm will have welcomed the recent announcement of an order for a further three of these ships.

When the Minister visits north Devon will he consider the matter of British equipment and pay a visit to RAF Chivenor, which is waiting for the SAR Westland helicopters that have been on order for two years? The Minister promised that this order would be taken care of shortly after the new year. Surely that time has arrived. The Minister should remember that Westland will hold its annual general meeting on 13 February. An order announced now would not only fulfil the SAR requirements but also be very welcome to Westland.

I am glad to confirm that an announcement about this order will be made shortly. Important though the right hon. Gentleman is, he is not yet in a position to issue invitations to visit Royal Air Force stations.

If my right hon. Friend is going on a tour I hope that he will not forget our mutual home territory on Plymouth, which is very anxious indeed to maintain close links with the armed services. It has provided excellent service in the past, and wishes to do so in the future.

Plutonium

9.

To ask the Secretary of State for Defence if there are currently any contracts with the Atomic Energy Authority for research into the fabrication of weapons components using plutonium; and whether any such work has been carried out at Harwell.

There are no contracts with the AEA for research into the fabrication of weapons components using plutonium. We do place contracts with AEA, which exploits its expertise in a range of matters, including plutonium handling.

Why is it that £40 million is being spent on the 220 building at Harwell? Does this have something to do with the transfer of work on Trident warheads from Aldermaston, which is not big enough? Is not the cry of every potential bomb-making third-world country that its nuclear work is entirely civil, even though it is, in fact, for defence purposes? It is time Britain gave a lead by stopping its nuclear proliferation.

The hon. Gentleman excites himself without cause. Most of the work that is done at Harwell is for the civilian sector. Indeed, the refurbishment of the 220 building results from AEA's commercial considerations and is not necessitated by Ministry of Defence contracts. The answer to the hon. Gentleman's question about the Ministry is the one that I have just given. Far more interesting is whether the hon. Gentleman and his Back-Bench colleagues support Labour's new nuclear defence policy—so far as anyone can understand it.

My hon. Friend will be aware of reports coming out of Russia of grave concern about the maintenance and decommissioning of the vast ex-Soviet nuclear stockpile. Is it possible for us to provide facilities, skills and help from the Atomic Energy Authority to help them with that difficult problem?

My hon. Friend raises a very important point. Safety is always paramount to us in those matters and we are in discussion with them to see how best we can help.

Territorial Army

10.

To ask the Secretary of State for Defence what representations he has received about the future strength of the Territorial Army in Scotland.

Can the Minister confirm that they included representations to ensure that any rundown in the Territorial Army in Scotland will not mean there being insufficient units in Scotland, to the point at which the TA will lose the goodwill of the scattered communities, particularly in the highlands and islands, in terms of recruitment? Did he also receive representations about 15 Parachute regiment to the effect that it should be allowed to continue at its five locations in Scotland? Will he take this opportunity to confirm that sufficient resources will be made available to ensure that full establishment is maintained at each of those locations for men and resources, for training and administration?

I am always fascinated to hear Liberals going on about resources being made available for defence, when they are committed to cutting them by 50 per cent. by the end of the century. I am never sure how their inquiries fit in with that commitment.

The reduction in Scotland will be 13 per cent. compared with a United Kingdom average of 17 per cent. So Scotland is being treated well under the measures.

The geographical spread will be very much a question of how the highland and lowland TAVRAs—the Territorial Army volunteer reserve associations—decide to allocate their resources. My hon. Friend has made it clear that no willing volunteer will be turned away and that anybody who wants to continue to serve with the TA will be able to do so, maybe not with the unit in which he is now serving, but with another unit.

Does my right hon. Friend agree that Scotland's contribution to the armed forces, including the TA, far exceeds its proportion of less than 9 per cent. of the United Kingdom population? That has been recognised by the Government. That is why Scots who are interested in military and other matters will always be best served by a Conservative Government.

That is absolutely right. It is amazing what we hear from Opposition Members, when they intend to cut defence expenditure. The effect that that would have on Scottish defence would be devastating in terms of procurement and the employment of people in the armed forces.

Is it not a fact that on 3 July last year the Minister of State told my hon. Friend the Member for East Lothian (Mr. Home Robertson) that the recruitment figures for individual battalions in Scotland would not be released on the ground of security, yet when it suited the Secretary of State's purpose, he was prepared to release figures showing 67 per cent. recruitment to 15 Parachute regiment? Can he therefore confirm that either the Secretary of State has breached the security rules or that the excuse of national security has been used merely to cover the fact that the Government made the decisions on political rather than on military grounds? Is that not why there is so much concern in Scotland among supporters of the regiment? Is he aware that there will be a wide welcome for my assurance that an incoming Labour Government will review each and every one of these decisions to ensure that the size and structure of the regiments in Scotland and throughout the United Kingdom reflect our military needs, and not the political expediency of the Tory party?

If the hon. Gentleman is suggesting that a review of defence by an incoming Labour Government, should we happen to have such an Administration, would mean more money being spent on defence, I am a Dutchman.

Defence Hot-Lines

11.

To ask the Secretary of State for Defence what offer of assistance he has given to the member states of the former Soviet Union to assist in establishing defence hot-lines.

My right hon. Friend the Prime Minister agreed with President Yeltsin in London last week that a secure direct telephone link between No. 10 and the Kremlin should be established. I also discussed with Marshal Shaposhnikov the ways in which we could establish clearer links between us and our staffs. I hope to make a further announcement about that very shortly.

Does my right hon. Friend accept that unambiguous communication is just as important now as it was during the cold war, and perhaps even more important? Will he also accept that the newly independent states of the former Soviet Union may from time to time have some apprehension, and that there may be need to give them reassurance?

That is precisely why my right hon. Friend the Foreign Secretary visited each of the nuclear republics of the former Soviet Union. With regard to the need for direct and close contact, I do not think that we could have had a clearer example of that than the visit of President Yeltsin and the very straight talking between my right hon. Friend the Prime Minister and the president. In one very short and clear comment, President Yeltsin demolised all the arguments of the Labour party that somehow our deterrent is an obstacle to the reduction of the nuclear arms of the super-powers.

Prime Minister

Engagements

To ask the Prime Minister if he will list his official engagements for Tuesday 4 February.

:) 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.

Does my right hon. Friend agree that to suggest that there is one kind of school that can cater for the needs of all kinds of pupils is an example of the naive theorising that has caused so many problems in education, which we are seeking to address today? Will he continue to press for diversity in education through grant-maintained schools, through city technology colleges and through local management of schools responsive to parents' wishes?

I agree with the premise underlying my hon. Friend's question. We will certainly continue to encourage diversity through grant-maintained schools, CTCs and locally managed schools, all of which give greater opportunity and choice to parents and pupils. We will continue to offer that choice.

At the time when the Prime Minister said that if his policies

"were not hurting, they were not working,"
did he realise that those policies would cause the longest recession since the 1930s?

We have taken action to ensure that we come out of this recession in a way that will ensure sustained recovery. As the Governor of the Bank of England said only yesterday,

"the conditions are now in place to underpin a … sustained recovery."

Having caused the longest recession since the 1930s, does the Prime Minister agree with the words of his right hon. Friend the Chancellor of the Exchequer, who said last month:

"the policy would not have been different even if we had known the outcome."?

Caused the recession?—Did we cause it in the United States, in Sweden, in Japan, in Australia, in New Zealand? If the right hon. Gentleman believes all that, he is certainly not capable of leading his party, let alone this country.

There is no question of doubt that this Government caused the recession in this country. Since the Prime Minister made the statement that I quoted, nearly 1 million jobs have been lost, there have been over 100,000 repossessions and 80,000 businesses have been lost, in those two years. This Government caused the recession, they continued the recession, and now they have not got a clue how to get out of the recession.

What the right hon. Gentleman has to say is economic illiteracy. If the right hon. Gentleman is genuinely concerned about recovery, what does he think that higher taxes would do to it? What does he think that his jobs tax would do to it? What does he think that his investment tax would do to it? What does he think that his minimum wage would do to it? The policies which the right hon. Gentleman pursues would mean perpetual recession for this country.—[Interruption.]

Chancellor Kohl

Q2.

To ask the Prime Minister when he will next meet the Chancellor of Germany; and what issues he intends to discuss with him.

Chancellor Kohl and I are in frequent contact by telephone to discuss matters of mutual interest. I expect to meet him again soon, but I have no immediate plans to do so.

Has my right hon. Friend noticed the extent to which the German economy has suffered from the worldwide slowdown and the fact that German output has decreased during the past two months for which figures are available? Does not that conclusively show that economic difficulties are not confined to the United Kingdom, as the Opposition try to claim?

My hon. Friend's question is more apposite than he might have imagined. He is entirely right. I have noticed that fact, even if the Opposition have not. Again, the Governor of the Bank of England noted yesterday that the recession has proved unexpectedly persistent in north America and that in continental Europe, Japan and elsewhere economic activity has slowed and unemployment has begun to rise. Only the Opposition adopt their typical stance. They ignore other countries' difficulties and concentrate solely on those in this country, to the damage of our interests.

After the two opt-outs negotiated by the Prime Minister at Maastricht, does Chancellor Kohl still think that the Prime Minister is a good European?

The hon. Gentleman had better ask Chancellor Kohl that question. I have enjoyed the closest possible co-operation with Chancellor Kohl in the past year and I intend to continue to do so in the same capacity in years to come.

Engagements

Q3.

To ask the Prime Minister if he will list his official engagements for Tuesday 4 February.

I refer my hon. Friend to the reply that I gave some moments ago.

The massive growth at Manchester airport since the Government have come to power—a 1,100 per cent. increase in fixed assets—has given a tremendous boost to the economy and pride of the north-west. Indeed, the north-south divide has now ceased to exist as an issue. When my right hon. Friend next has a free Saturday, will he fly up to Manchester, look at what has been achieved by the airport, and then pop over to Old Trafford to watch a first-class football side in action? It will win the first division championship, just as my right hon. Friend will certainly win the next general election.

My hon. Friend will forgive me if I do not respond to one part of his question. Manchester airport, however, is a success story. It has benefited especially from the growth in the liberalisation of air services and, as a result, three times as many passengers now use the airport as when the Government came to office. That is a direct result of liberalisation introduced by the Government. The concept of a north-south divide was always too simplistic and sweeping. Many areas of prosperity and some of difficulty exist in each and every part of this country—[Interruption.]

Q4.

To ask the Prime Minister if he will list his official engagements for Tuesday 4 February.

I refer the hon. Gentleman to the reply that I gave some moments ago.

Is the Prime Minister aware that, in my constituency of Leyton, unemployment has risen by 84 per cent. in the past 18 months? As last night the Governor of the Bank of England backtracked over the duration of the slump, will the Prime Minister now institute an urgent programme of recovery? Failing that, will he explain to my unemployed constituents why the Government consider them a "price worth paying"?

Clearly, the hon. Gentleman was not listening a few moments ago when I quoted directly the Governor of the Bank of England saying that the conditions necessary to underpin a sustained recovery are now in place.

Will my right hon. Friend confirm that a review is to be undertaken of the use by the security and intelligence agencies of informants and other sources? When he receives that final report, will he bear in mind the fact that the security intelligence agencies rely on the use of informants, and the intelligence that they receive will never be any good unless a measure of protection can be granted to those sources?

We do, of course, constantly keep these matters under review and I believe that it is important that we continue to do so.

Q5.

To ask the Prime Minister if he will list his official engagements for Tuesday 4 February.

I refer the hon. Gentleman to the reply that I gave some moments ago.

Is the Prime Minister proud of the fact that since the Government came into office in 1979 nearly 2·5 million full-time jobs in manufacturing have been lost, 34 jobs for every hour this wretched Government have been in office? In view of the devastation, the unemployment and the misery caused to our people, is it any wonder that the Prime Minister is so reluctant to hold the general election?

The hon. Gentleman is joining the Opposition trend of seeking to talk down what manufacturing and other industries are doing. He should remember that export volumes of manufactured goods grew faster than in the United States throughout the 1980s, that manufacturing grew faster than in France or Italy during the 1980s, and that Britain exports a larger proportion of its national product than Japan, a point recognised by even the Scottish National party.

Will my right hon. Friend join me in sending congratulations to a Yorkshire manufacturing company, Spring Ram plc, which at the end of the month will open two new factories in my constituency, creating 400 new jobs, which is at present building two new factories in Barnsley which will create 400 new jobs, and which has a plan to create 1,100 new jobs in Bradford over the next four years?

I am delighted to send my congratulations to my hon. Friend's constituents. There are, of course, many other companies up and down the country which are similarly investing and growing, and laying the foundation for prosperity in the 1990s.

Q6.

To ask the Prime Minister if he will list his official engagements for Tuesday 4 February.

I refer the hon. Gentleman to the reply that I gave some moments ago.

Can the Prime Minister tell the House how he squares his vision of a classless Britain with the experience of a constituent of mine from Fulwood, who was told last May that she needed a hip replacement but that she would have to wait 14 months for the operation under the national health service, and who was told that she could have had the operation immediately had she been able to cough up £4,300?

There were no hip replacements available just a few years ago. It is now a relatively routine operation available in the national health service. Hip replacements are becoming more widely available month after month. That is the direction in which we must go to provide the best health service, the best opportunities and the best element of the classless society that I have talked about.

Does not my right hon. Friend agree that the last thing that business needs is for business rates to be brought back under the control of uncapped, loony Labour authorities who will send rates sky rocketing, as they did during the early 1980s? Will he give the House a pledge that such a crazy proposal will never be included in a manifesto issued by the Conservative party?

I can give my hon. Friend that undertaking. It is well known to every hon. Member that under the old system, councils could put up rates by more than the rate of inflation. They did and, among other evils, they forced many jobs out of inner city areas by doing so. Those who doubt that might remember the rate rise of Labour-controlled Ealing council of 57 per cent. in 1987. They might also recollect the wriggling of the hon. Member for Dagenham (Mr. Gould) on television the other day on precisely that problem. It would be a problem, he said. It would be a problem not just for the Labour party but for business men up and down the country.

Q7.

To ask the Prime Minister if he will list his official engagements for Tuesday 4 February.

I refer the hon. Gentleman to the reply that I gave some moments ago.

Since the Government have supported independence in Russia, Lithuania and other parts of the world, when the people of Scotland democratically and peacefully vote for independence, what will the Government say to them?

This Union has served both Scotland and England well, and I would not wish to see it undermined. The proposals of the Labour party, the Liberal Democratic party and the Scottish National party would undermine that relationship that has served us so well in the Union. Devolution is not just a matter for Scotland; it is a matter for the whole United Kingdom. If an Assembly were given tax-raising powers, how would that fit in with the other fiscal arrangements? What would the increased taxation do to prosperity in Scotland? The hon. Gentleman should put a fair proposal before the Scottish people, not the half-baked one that he has made.

Order. The hon. Gentleman has not yet asked a question of the Prime Minister.

Will my right hon. Friend confirm that the Government will continue as the party of denationalisation, and confirm to the electorate of York that the Conservative party will not take away the shares of those who have invested in Northern Electric, British Telecom and other such denationalised companies?

I can give that assurance to my hon. Friend. The denationalisation programme has been good not only for the consumer, but for share owning and the improvement of both investment and wealth in this country. We believe in those propositions and we shall continue to support them.

Q8.

To ask the Prime Minister if he will list his official engagements for Tuesday 4 January.

I refer the hon. Gentleman to the reply that I gave some moments ago.

I am sure that the Prime Minister will have enjoyed reading the Western Mail last Saturday, where he will have seen the results of a telephone survey showing that the people of Wales now support the setting up of a Welsh Parliament by a margin of four to one. When will the Prime Minister acknowledge that the aspirations of the Welsh and Scottish people cannot be sidelined for ever, and when will Parliament act?

I seem to recall that there was a referendum once before on devolution in Wales when there appeared to be a majority in favour. But the reality was that the referendum showed that there was no majority, and the people of Wales recognised that it would be in the best interests of their country and the United Kingdom to sustain the present arrangements.

Security Forces

3.31 pm

On a point of order, Mr. Speaker, on matters appertaining to the rule of law, the primacy of the police and confidence in the security forces in Northern Ireland? You will recall, Mr. Speaker—

Mr. Speaker, you will recall that at Question Time last Thursday the Government were twice asked to make a statement on the subject at the conclusion of the Nelson trial. I had privately written to the Secretary of State about that. The matters related to the honesty and integrity of the British Army, connivance in terrorist offences, the role of the police and security forces, and plea bargaining to prevent full public scrutiny of the issues in the House and before the British public.

May I ask you, Mr. Speaker, to seek some way to force, make, persuade or otherwise cajole the Secretary of State for Northern Ireland who has responsibility for such matters to make a statement to the House?

I have received no request for a statement, but the hon. Gentleman's point of order will have been heard by those Ministers with responsibility for such matters.

Welsh Affairs

Ordered,

That the Matter of education in Wales, being a matter relating exclusively to Wales, be referred to the Welsh Grand Committee for its consideration.—[Mr. Sackville]

Caravan Sites (Amendment)

3.32 pm

I beg to move,

That leave be given to bring in a Bill to amend Part II of the Caravan Sites Act 1968; to make further provision in respect of encampments of travelling people; and for connected purposes.
I am asking—[interruption.]

Order. Will hon. Members who are not remaining for the ten-minute Bill leave the Chamber quietly, particularly those below the Gangway?

I ask the House to give my Bill a First Reading, conscious that many hon. Members also face problems arising from the illegal encampment of people who may be gipsies, but, who, as in my constituency, often belong to other groups variously titled —hippies, travellers, new age travellers, tinkers, dropouts, didicoys and peace people. I submit that the Caravan Sites Act 1968 is no longer relevant to meet the difficulties that such people create.

The ineffectiveness of the present law was vividly illustrated in west Berkshire recently when we faced the encampment of people who described themselves as new age travellers and who decided to park 20 vehicles illegally on a county council byway. The local people were infuriated by the camp and asked the police to move the travellers on. The police demurred on the ground that, as the county council had not designated a site according to part II of the 1968 Act, there was nowhere for the travellers to go. That prompted me to write to Berkshire county council asking when it intended to designate a site in the west of the county to meet the travellers' needs. The council responded that the Act referred only to sites for gipsies and that, as the travellers were not gipsies, the council had no responsibility for the matter. I then wrote to the council asking how it identified a gipsy from a traveller, but I did not receive an answer.

Strictly speaking, the county council is right. Within the strictest interpretation, the 1968 Act applies to gipsies and not to travellers. It seems to me that the Act should be amended, the word "gipsy" dropped, and the phrase—suggested, I think, by the National Gipsy Council—
"persons of a nomadic way of life"
substituted. At the very least, it would mean a reappraisal of the numbers of people involved in travelling, and thus a reassessment of the number of sites required. The figure of 11,544 gipsy caravans given in 1990 could increase dramatically, and the sooner that we know the scale of the problem, the sooner we can do something about it.

Despite the fact that the 1968 Act is now 24 years old, the Department of the Environment has set no time limit within which county councils must meet their statutory responsibility to designate sites. That would be another requirement of my Bill. Every county should have at least one site, and I suggest that that should happen within the next 12 months.

I go further. The number of people who have taken up a nomadic way of life has increased, and it is probably still increasing. I do not know why they choose that way of life, but that is their right in a free society and we must recognise it. If we are to avoid the endless aggravation that such people as travellers cause virtually wherever they go, the illegality of their encampments, the mess and rubbish that they leave behind, their lack of sanitation, and the fear of local people that travellers pay little attention to the law, cut timber at will, and poach—in other words, if we are to create some measure of harmony between modern nomads and the community—local authorities should be required to appoint a travellers' liaison officer whose task, much like that of community relations officers, would be to liaise with travelling groups, farmers and their representatives, such as the National Farmers Union, local land owners, and the police. I believe that some counties already have such a person.

In turn, such groups of interested people, working with a local authority, could seek to create a pattern of short-stay transit sites, inconspicuous to the public but maintained by the local authority for travellers. Travelling groups should be able to discover from the local authority where sites are located, and those refusing to use them could be made subject to severe fines.

Clearly, the size of transit sites would vary according to the neighbourhood, but at least some should be able to cope with large vehicle convoys, such as those which make their way to Stonehenge, or which have over the past two years chosen the common around Hungerford as a weekend site.

Present police powers need revising. Currently, policing illegal encampments is a costly business. A large site can tie down as many as 100 constables and cost tens of thousands of pounds, yet the police have limited powers. Generally, they use section 39 of the Public Order Act 1986 to move people on, but that legislation does not apply to vehicles, animals, or the travellers' other belongings. As the assistant chief constable of Thames Valley wrote in a recent letter to me:
"It follows therefore that if we were to exercise a power of arrest in circumstances which warranted it, then the families of the persons arrested would still be able to remain with their property on the land."
It was put to me that there should be a new offence of aggravated trespass on land to meet that problem. As matters stand, a district council can obtain an eviction order from a local court when dealing with illegal encampments on common land, but for the police to move illegal encampments from private property requires a much more drawn-out procedure. I know that the police would welcome a simplified court order system.

I wonder whether showmen's vehicles, and the right or otherwise to park them at the side of the road, really belong in the 1968 Act as it is presently drawn.

I have outlined some of the changes to present legislation that, in my opinion, could bring some order to a situation that is rapidly getting out of control. I hope that it is clear from my remarks that the law should strike a new balance between the obvious rights of ordinary people living in towns and villages to be spared the nuisance, aggravation, and hooliganism associated with illegal encampments and the fact that many thousands of people prefer a nomadic way of life—and that simply to try to move them on to somebody else's patch is no solution. Quite simply, the Act must be amended.

Question put and agreed to.

Bill ordered to be brought in by Sir Michael McNair-Wilson, Sir Anthony Durant, Sir Patrick McNair-Wilson, Mr. Robert G. Hughes, Mr. Mark Wolfson, Mr. Tim Smith and Mr. John Watts.

Caravan Sites (Amendment)

Sir Michael McNair-Wilson accordingly presented a Bill to amend Part II of the Caravan Sites Act 1968; to make further provision in respect of encampments of travelling people; and for connected purposes: And the same was read the First time; and ordered to be read a Second time upon Friday 14 February and to be printed. [Bill 64.]

Local Government Finance

In view of the large number of right hon. and hon. Members who wish to participate in the debate, I propose to put a 10-minute limit on speeches between 6 pm and 8 pm. I hope, however, that those who are called before and after those times will bear the limit in mind, so that all who wish to speak may be called.

3.40 pm

I beg to move,

That the Revenue Support Grant Report (England) 1992–93 (House of Commons Paper No. 188), a copy of which was laid before this House on 24th January, be approved.
It may be convenient also to consider the following motions:
That the Revenue Support Grant Distribution (Amendment) (No. 2) Report (England) (House of Commons Paper No. 190), a copy of which was laid before this House on 24th January, be approved.
That the Population Report (England) (No. 3) (House of Commons Paper No. 189), a copy of which was laid before this House on 24th January, be approved.
That the Special Grant Report (No. 3) (House of Commons Paper No. 191), a copy of which was laid before this House on 24th January, be approved.

Many of us have taken part in these annual debates before, but they should not be seen as any sort of ritual. The House should explore thoroughly and carefully the allocation of £33 billion of taxpayers' funds: that is the element of Government support for some £42 billion of local authority expenditure.

It is appropriate on occasions such as this to remind the House of the difference between the Labour party's approach to taxation and expenditure levels, and that of the Government. We know from long and bitter experience that high levels of taxation are the hallmark of the Labour party in national government and that rising taxation levels are characteristic of that party in local government.

This year, the average community charge is some £60 higher in Labour-controlled metropolitan boroughs than in those controlled by the Conservative party. In London, the gap is even wider. It is exactly the same story in the shire counties: average charges are £80 higher in Labour districts than in Conservative districts. In independent and Social and Liberal Democrat-controlled authorities, they are £37 higher. This is a national pattern, which both the House and a wider audience will no doubt wish to bear carefully in mind.

Last year, the Isle of Wight received a higher settlement than any other shire county in England. The authority has nearly £3 million on its balances, but the Liberal Democrats are considering cutting £1·5 million from the education budget—although, when they fought the last county election, they ran down the county balances to £250,000 and ignored the advice of the district auditor. I wonder whether my right hon. Friend could spare the time to join me in a rally and march in Newport, Isle of Wight, this weekend, when we shall go to county hall to protest to the Liberal Democrats about this exhibition of sheer political spite.

That is a most generous invitation, I must say. I feel torn between two options. Perhaps I can combine making a speech in Eastbourne on Saturday to the Young Conservatives, the largest political youth organisation in the country—we shall also have to deal with the problems caused by Liberal Democrats in the House, if only temporarily—with a dash across country to support my right hon. Friend the Secretary of State for Defence in his constituency, and a detour to that of my hon. Friend the Member for Isle of Wight (Mr. Field).

On mature reflection, that will be stretching the ingenuity of the transport infrastructure in this country further than is credible, despite the remarkable improvements in that infrastructure for which the Government, alone, are responsible. I must leave it to my hon. Friend the Member for Isle of Wight to use his customary eloquence to put the case, which is obviously a formidable one. I look forward to reading the coverage in the national and local press, which I am sure is well deserved.

Where was I?

Why does not the right hon. Gentleman stand against the grey man?

On the rare occasions that the hon. Member for Bolsover (Mr. Skinner) stands to say anything, he seeks to cause the maximum possible trouble for his party, which it claims has abandoned all the political views that the hon. Gentleman, at least, has the integrity still to advocate.

Unlike the Secretary of State, I have never stood against the leader of my party. I was not one of those who decided to act as a stalking horse so that the Ken Barlow replica could get the job, turning out the previous Prime Minister like a dog in the night. The net result is that the right hon. Gentleman has finished up with the poll tax brief, which he did not want. He begged for the Chancellor of the Exchequer's job and was kicked into touch.

I am sorry to have bothered the hon. Gentleman. He should reconsider his position. By standing against the leader of the Labour party, he would cause exciting consequences for this country. If he were the leader of the Labour party, at least we would know that he was saying the things that most of his supporters still believe. We would know where we are and we would find it easier to keep the Labour party in opposition than we will otherwise. I do not want to trespass on your generosity, Mr. Speaker, by straying from the important revenue support grant debate.

Before my right hon. Friend tours the entire country from the Isle of Wight to Basildon, may I bring him back to the point that he was making? Whether we are dealing with metropolitan authorities or shire districts, Labour authorities set community charges that are substantially higher than in Conservative-controlled areas, and that is as true in the north as it is in London. Does my right hon. Friend agree that the low community charges set by Wandsworth and Westminster are proof of the generous revenue support grant settlements for all inner London boroughs, which are partly subsidised by the settlement for the shire districts represented by the Conservative party?

My hon. Friend is right. As I have made clear, we have provided an additional 7·2 per cent. cash to support local authority expenditure in the coming year when inflation is just over 4 per cent. That is a considerable real-terms improvement in the support for local authority services. It is characteristic that, despite the additional support from the Government, the overall level of charges in all classes of authority will be significantly higher in Labour-controlled authorities than in Conservative-controlled authorities. Interestingly, more money being spent is not the same as people getting a better standard of service.

The right hon. Gentleman talked about a 4 per cent. uplift for all authorities next year. Would he care to tell us about Wolverhampton's predicament? We will have to take £15 million from our budget, cut hundreds of jobs and reduce services that have been built up patiently over many years. We have an uplift of 3·5 per cent. when inflation is 4 per cent. How can my authority balance its books and do what it should for the people of our town, when the Government are not granting it sufficient resources to maintain the level of services? How can you say that the people of Wolverhampton—[Interruption.] I shall finish, Mr. Speaker, because this is important for the people of Wolverhampton. They want to know why the Government are not supporting them. We have the—

The people of Wolverhampton will suffer as a result of the right hon. Gentleman's policies.

I am sure that the hon. Gentleman will be pleased to know that the West Midlands police authority will receive an increase of about 15 per cent. in next year's allocation—that is an important concentration of support where people care most about the quality of service that they receive.

I was going to make the point that high community charges and high expenditure levels do not necessarily mean that the quality of service is high. That is clear from the analysis. Lambeth has one of the highest community charges in the country, but its cumulative rent arrears are now more than £17 million. That means that £17 million which should have been spent on maintaining the local authority housing stock is not being spent, because the local authority has not collected it. It is another example of inefficient management denying local authority tenants the service to which they are entitled.

Haringey's rent arrears are the equivalent of almost 20 per cent. of its rent roll—

No.

All analyses show the same disregard for the quality of service, although the levels of expenditure are often very high. I have been less than impressed by the hon. Member for Dagenham (Mr. Gould) during the past few days. He has been trying to suggest that one can make easy comparisons between one authority and another. He indulged in a very selective process and produced a number of statistics to try to show that some Labour authorities spend more than some Conservative-controlled authorities on some services.

That reflects only the fact that Labour controls some authorities where there are significant levels of need and the Government, through the standard spending assessment system, provide encouragement to meet that need. Therefore, it is not surprising that some Labour authorities spend more in areas of need.

What about meeting needs in North Derbyshire or South Derbyshire?

Is it not difficult for my right hon. Friend to come to the aid of Wolverhampton in the full knowledge that its authority has more than £5 million of rent arrears, numerous empty council houses and 10,000 surplus school places? Although we hear what the hon. Member for Wolverhampton, South-East (Mr. Turner) says, is it not a difficult situation for my right hon. Friend to comprehend?

My hon. Friend's point seems to be a most telling case, with which the hon. Member for Wolverhampton, South-East (Mr. Turner) should deal. It is very important, but it is perhaps not a debate which should be conducted over my head during my introductory speech.

I was intrigued to discover that the hon. Member for Dagenham alleges that the collection cost of 1 tonne of rubbish is £39·38 in Wandsworth and £16·62 in Haringey, but I understand from inquiries in Wandsworth that that figure is for collection and disposal—£30 per tonne for disposal alone under an old expensive contract inherited from the borough. The House will by now have guessed from where the authority inherited that contract—it was the old Labour-controlled Greater London council.

The most interesting point in the analysis by the hon. Member for Dagenham, in which he sought to produce figures to prove that Labour was more effective than others on an independent analysis, is why he does not therefore bring pressure to bear on Labour-controlled authorities, especially in London, which do not provide up-to-date returns on which their cost analysis can be compared. It is obvious that the hon. Member for Dagenham will not do anything to encourage Labour authorities to keep their returns up to date, so that their analysis of spending can be known to their electors and to a wider public. I can understand why. Those authorities are the ones which do not collect rents, which did not collect the rates and which do not collect the community charge.

I must confess that I understand that the hon. Gentleman is a non-payer of his community charge. I can see no case for a Secretary of State giving way to him when he advises his constituents that they should not maintain the law of this country.

On a point of order, Mr. Speaker. The statements made by the Secretary of State are absolutely incorrect. [HON. MEMBERS: "Apologise."] He should give me a chance to talk about North East Derbyshire. It is a Labour-controlled authority—

Order. Is this a point of order for me? If the hon. Gentleman is patient, he may get the chance to talk about North East Derbyshire later in the debate.

If the hon. Gentleman is now advising people to pay their community charge, I apologise unreservedly.

The Secretary of State has now given way to the hon. Gentleman. I would far rather that he put his question to the Secretary of State than to me.

I never advised people not to pay their community charge. I might not have paid my own for a certain period, and there are strong arguments and analyses in connection with that, which I have explained in the House on numerous occasions. That chap over there knows nothing about them.

Do I understand that the hon. Gentleman's argument is that if he did not pay his own community charge—I believe that he said he would not do that—

Ah. Having said that he would not pay and having given the worst possible signals, under pressure he has now given way and changed his mind. It sounds to me like the worst possible deal.

Will the Secretary of State explain why the standard spending assessment for North East Derbyshire places it 365th out of 366 authorities in England? It receives only £81 per head for poll tax payers in the area by way of grant, whereas other authorities receive two or three times that amount. If the right hon. Gentleman wants a discussion later about the principles of non-payment and why hon. Members may not have paid because of the damage done to the electoral register, that is another matter.

Will the right hon. Gentleman give an answer about the position of North East Derbyshire? It is not a well-heeled authority, yet it is at the bottom of the league in terms of the money that it is allowed to spend and the amount of grant that the Government provide.

I was trying to hear whether the hon. Gentleman paid his community charge because he was taken to court or whether it was because he was convinced that the case that he first advocated was wrong. He has not made that position clear to the House. The House would like to know whether the hon. Gentleman's sudden conversion to keeping within the law came because he changed his mind or because he was taken to court.

The change occurred because there was a vast change in the Government's position. They decided to get rid of the poll tax, although they have not lived up to that promise properly and correctly. A change took place. The action taken by various people, including myself, advanced the position of the Secretary of State and led to the demise of the right hon. Member for Finchley (Mrs. Thatcher) as Prime Minister. She was destroyed by the flagship of the poll tax. No one else on the Conservative Benches has produced arguments to explain why they wish to get rid of the poll tax and introduce a council tax in its place.

The hon. Gentleman is being more than frank with the House. In effect, he is arguing that it is perfectly legitimate to defy the law as long as one gains by doing so. I must tell the hon. Gentleman that his is exactly the sort of case that led to authorities' inability to collect the community charge on the scale that was appropriate. It was a deliberate decision and strategy of some Labour Members that they would pursue that policy, and it does not lie in their mouths now to blame the Government for the effects of that deliberate strategy.

Is my right hon. Friend aware that, in Derbyshire, more than 90 per cent. of the money raised is spent by Derbyshire county council, which subsidises school meals at 1981 prices while sacking teachers, ending swimming lessons and closing libraries, which sends its leader and his cronies on an expensive trip to China while we have fewer police officers than 10 years ago, and which plays around with the pension fund? In those circumstances, is my right hon. Friend surprised that the leader of the council has just announced that he is to resign and that the deputy leader is facing charges? Does my right hon. Friend think that things will improve in future? With "friends" like the hon. Members for Derbyshire, North-East (Mr. Barnes) and for Bolsover (Mr. Skinner), will they not remain exactly the same?

I am grateful to my hon. Friend. The debate has taken on a most intriguing dimension. Any minute now, the hon. Member for Dagenham will be on his feet asking for higher levels of public expenditure by local authorities. He will be citing—I have no doubt that he will paint a dramatic picture of harrowing cuts—the local authorities' case for an extra £2 billion, over and above the 7·2 per cent. increases that the Government believe to be appropriate.

The House will want to know exactly where the Labour party stands on the issue of increased public expenditure. It does not require a great deal of calculation to work out that, if the hon. Member for Dagenham argues the local authorities' case for an additional £2 billion of public expenditure—which is what the authorities want—that will have to be paid for somehow. The money will not come from extra support from the Government, so it can come only from either 1p extra on income tax or £60 on every poll tax bill. Before the debate ends, we shall want to know which argument the hon. Gentleman advances: does he support the levels of expenditure that the Government believe to be justified or would he put another 1p on income tax or £60 on poll tax to support the local authorities in their request for additional expenditure?

Surely, as reports from the Audit Commission have repeatedly proven, the answer to everything is greater efficiency. That is why Wandsworth is able to return for a second year no community charge while receiving the lowest level of support of all the inner-London boroughs—hundreds of pounds less than the London borough of Lambeth next door.

My hon. Friend raises a central issue. The Labour party wants to get rid of the Audit Commission because, for the first time, the commission has put a spotlight on inefficiency in service delivery and on cost per unit of output in a way that is in the end likely to improve efficiency. The moment the Labour party sees genuine discipline imposed on local authorities, it wants to get rid of the agency that is achieving that discipline.

I despair of the Secretary of State ever treating local government matters in the House seriously. He reduces everything to drag-out dirty politics, as though he was addressing the Conservative conference.

The right hon. Gentleman is looking around for reasons why local authorities will be asking for extra money. I put it to him that, in the case of the London borough of Newham, it will be because we have to find £6 million this year out of revenue as a result of decisions taken by the valuation court on old rate rebates. That had nothing to do with the London borough of Newham. We are not the only borough in London—or, indeed, elsewhere—facing that prospect. What help can the Secretary of State offer us? Or does he intend to carry on kicking the thing around like a cheap party political football?

The hon. Gentleman knows perfectly well that he went to see my hon. Friend the Minister for Local Government and Inner Cities yesterday and that they had a discussion about the matter. It would be quite wrong for me to anticipate what my hon. Friend might recommend by way of response. Frankly, when the hon. Gentleman uses that sort of debasing language—I have to use those words—to misrepresent the courteous reception that he received yesterday at the Department of the Environment, he does not encourage my hon. Friend the Minister of State to continue to see people so courteously.

The hon. Member for Dagenham has also been misleading the public about the target community charge for next year. All hon. Members know that the figure that we produced in the settlement provides for standard spending of just over £257. That is not a prediction; it is a target. Efficient authorities will be able to set charges at or near that level, and a significant number of authorities will do precisely that. However, inefficient local authorities will charge more. It is interesting to note that, once again, 18 of the 20 highest community charges this year have been set by Labour local authorities.

The latest evidence is that the gloomy predictions about collection rates that were made by the hon. Member for Dagenham and his colleagues are not being realised. Returns for the third quarter of 1991–92 show that 29 per cent. of the annual budgeted income was collected in that quarter, making a total of 68 per cent. of the budgeted yield for the year. The figure for that quarter is marginally better than for the same quarter in the previous year. There is no reason why, in the year as a whole, local authorities should not improve their overall level of collection. Indeed, the latest figures for 1990–91 show that authorities have now collected 97 per cent. of the budgeted income for that year. As always, however, the average disguises the failure of the worst authorities—and the worst authorities are Labour authorities. As far as we can see on the latest information, in about nine cases a quarter or more of last year's budgeted income still remains to be collected. I hope that that position will have improved, but that is the latest information available to me.

The essence of the point that I wish to stress to the House is that that problem is not unique to the community charge. The self-same authorities generally had the worst record for rent collection also. They would do no better under "fair rates" proposals of the hon. Member for Dagenham , if they were ever to be introduced. Indeed, they are the same authorities that cannot collect their rents either. One keeps coming back to the same authorities— Lambeth, Haringey, Hackney and Liverpool. Time and again, the same authorities do not collect their bills—whatever those bill happen to be.

May I take my right hon. Friend briefly back to the figure of £257 that he quoted? I believe that, if it put its mind to it, my authority in Nottingham could achieve that figure —but with one exception. Will my right hon. Friend address the problem that affected all my constituents last year when an extra £44·75 was imposed on them to pay for the slow payers and non-payers who were encouraged in their actions by the Labour Members, and especially by Labour Members such as the hon. Member for Derbyshire, North-East (Mr. Barnes)? I make that point because the neighbouring authority to the city of Nottingham, Conservative-controlled Gedling, imposed only an extra £3·50. That shows clearly that the surcharge had nothing to do with Government legislation but was due entirely to the difference between Conservative and Labour-run authorities. What protection can we give our constituents?

The simplest solution, as I am sure my hon. Friend will persistently advocate, is to vote those Labour authorities out of office. That is incomparably the best way in which to deal with the issue.

Please forgive me, but I shall not give way because many other hon. Members wish to speak.

I wish to say a few words about non-payment. The House has heard me say before, and I repeat it now, that there will be no amnesty for non-payers. We are taking further steps to ensure that authorities have the necessary powers for the proper enforcement of the community charge. On 23 January, I announced that we would be extending from two to six years the period during which enforcement proceedings may be commenced. I announced last week that we are moving swiftly to put beyond doubt the admissibility of computer evidence in proceedings for community charge recovery in magistrates courts. We will table amendments to the Local Government Finance Bill, now in another place, to ensure that admissibility.

Last week, the hon. Member for Dagenham put it to me that we should put a short Bill through the House in rapid time to deal with the issue. I considered that offer with fairness and in deference to his position of responsibility as a leading member of the Labour party. When his letter arrived, I spent a great deal of the day exploring all the problems of putting through a Bill of the sort that he had in mind. He could not, for example, carry all the House with him. There could easily have been filibustering by the Scottish nationalists or who knows what. He could not command a majority in another place and I had to take those issues into account, but I did not dismiss the possibility out of hand.

I was beginning to talk to the business managers about moving in that direction, which could have saved a fortnight of the House's time and would have been possible in the best of all possible worlds. However, I came to the House to find that a principal piece of Government legislation, the Education (Schools) Bill was being subjected to a filibuster. As a consequence, we lost a day's business.

That displays, as clearly as one can, the cynical disregard the Labour party has for proper relations between the Opposition and the Government. They had no intention of enabling us to get our legislative programme through with dispatch. It was done to try to cover up the embarrassment of the Labour party at the refusal of its own members to try to collect the community charge. Therefore, I was not prepared to deal with the matter in the way that the hon. Member for Dagenham suggested.

My Department has written to local authorities about how to proceed in the short period before the Bill which we are amending is enacted and about the position of existing liability orders. In the intervening period, authorities will wish to consult the clerks to the justices about how to proceed. We believe there is no obstacle to authorities continuing to apply for liability orders where they consider that their procedures for the presentation of cases meet the requirements of existing law. I understand that a number of authorities are continuing to do so.

In any event, it is our view that summonses for non-payment of the community charge, with return dates after new powers are in place, can continue to be issued. When cases have been or are adjourned, they can be considered under the new powers when they are in place. Our proposed amendments will not be retrospective, but they will apply in proceedings to enforce payment of the community charge whenever the liability arose, including cases in which a summons was issued before the Local Government Finance Bill takes effect.

Our understanding in relation to liability orders, which have been made under existing powers, is as follows. The new provisions will not in themselves invalidate any order previously made. Local authorities can continue to act on orders which magistrates courts have granted. An individual may of course apply to challenge a liability order in a higher court—for instance, by applying for leave to seek judicial review if the order was granted within the past three months. Each case would need to be looked at separately on its merits. If the only ground on which an individual sought relief was the inadmissibility of computer evidence, and he had not raised the issue in a lower court, it seems unlikely that the court, in the exercise of its discretion, would entertain an application.

I understand that, if it came to a hearing, it is equally unlikely that the court, in the exercise of its discretion, would quash a liability order solely on the grounds of procedural defect if no injustice had been done and the community charge remained unpaid. Let us be clear; we would be dealing with individuals who have failed to pay a community charge properly due and who would be seeking to avoid or delay payment through a technicality.

I hope that hon. Members will believe that, in addressing the legitimate interests of the crucial services provided by local government for the forthcoming year, and having regard to the current levels of inflation and the ability of the Government to afford whatever sum is appropriate, this settlement is one for which they can vote. We believe that it is coupled with a realistic capping regime to contain excessive levels of expenditure. The House will know of the regime that follows the determination by any authority that its budget comes within that capping regime.

The House would do well to support this set of proposals, which I commend. In so doing, it would urge local authorities not to seek to justify higher levels of expenditure, which can only put pressure on their community charge payers and others in the area affected by such charges, but to seek improvements in the output values that they can attain, which are being attained by many authorities of all political persuasions up and down the country.

The settlement that we are finalising today reflects the Government's continuing commitment to ensuring a proper level of funding for local authority expenditure. It provides sufficient resources for local authorities to provide a full range of services at a price that both their charge payers and the country as a whole can afford.

4.10 pm

This debate brings us to wearisomely familiar territory, even if our only guide to that territory so far has been a typically rambling and shambling speech from the Secretary of State. It is territory littered with the wrecks of failed Government policies. It is a familiar catalogue of Government mistakes, which have dogged local government for more than a decade, undermined its morale, slashed its resources and virtually extinguished its independence.

The hon. Gentleman must be joking. Last year the Secretary of State had an excuse of sorts. The more generous among us were inclined to say that, in the decade since his first stint at Marsham street, he appeared to have mellowed somewhat. While others pointed the accusing finger at him as the progenitor of the "Whitehall knows best" approach, we tended to point to his attack on the poll tax—the "Tory tax", as I think he called it—and to his robust opposition to universal capping. Even his commitment, at this time last year, to a manifestly inadequate RSG settlement could be excused on the ground that he had inherited the settlement from his predecessor and had had no chance to recast it. A year later, none of those excuses will wash any more.

This revenue support grant settlement is the Secretary of State's settlement; the poll tax bills are his poll tax bills; the capping is his capping; the consequences for local government, disastrous as they are, are consequences that he has willed as a deliberate act of policy. The great centraliser of the early 1980s, the great hostile opponent of the whole concept of local government, is again alive and well in Marsham street. It is little wonder, therefore, that we heard only the merest token of any analysis or defence of the RSG settlement. The Secretary of State spent the bulk of his speech on a typically wild assault and denunciation of local government in general.

So it is that this RSG settlement shows all the flaws of its predecessors. It is, first of all, simply inadequate. It represents a full £2 billion less than local authorities—I refer not only to Labour authorities but to all local authority associations, including those under Tory control —calculated were needed to maintain services, to take account of inflation and to discharge the new obligations imposed by statute.

I shall give way to my hon. Friend, too.

To justify the settlement, the Government persist in using figures based on calculations that are irrelevant and misleading. They point to a rate of increase over last year's settlement, when everyone knows that last year's settlement was itself inadequate, that the actual level of local government expenditure was much higher.

They base themselves on a rate of inflation of 4£5 per cent., which is lower than the 7·3 per cent. which local government calculates it actually has to face and which is higher than the general rate because of the importance of wage settlements beyond the control of local government.

They fail to take account of demographic changes, of new service pressures, of the impact of recession or of the rise in homelessness. No wonder local government as a whole regards this RSG settlement as unsatisfactory.

I will give way to the hon. Gentleman shortly, but I give priority to my hon. Friend the Member for Halifax (Mrs. Mahon).

Probably because the Secretary of State anticipated the question that I wanted to ask him, he refused to give way to me.

Labour-controlled Calderdale, recently named the second most efficient metropolitan council, has recently given official figures for the loss of rate support grant since 1979. More than £167 million has been lost as a result of RSG cuts under the Conservatives. That represents £13 million a year for each of the 13 unlucky years that the Conservatives have been in office. That is why the area is facing another massive round of cuts, which leaves it unable to build homes for the homeless and explains why we have crumbling schools and face the prospect of the closure of old people's homes. That has nothing to do with councillors but everything to do with the Conservatives removing £13 million a year in RSG in the way I have described.

The testimony of my hon. Friend is persuasive because what she tells us about the experience of Calderdale, important and damaging though that has been, is by no means limited to that authority, to Labour local authorities or to local authorities of particular categories. It has been the general experience of local government as a whole, and Conservative-controlled local authorities are almost as damning in their judgment of Conservative treatment of local government as are my hon. Friends and I.

I thank the hon. Gentleman for giving way, and I understand his commitment to positive discrimination in giving way first to the hon. Lady the Member for Halifax (Mrs. Mahon).

If the settlement is really so inadequate, may I ask the hon. Gentleman to give the House an unequivocal commitment significantly to increase funding for local government within two years? Yes or no?

I will gladly give the hon. Gentleman a commitment that we shall put an end to the £25 million of taxpayers' money wasted every day on maintaining the poll tax in being. That must be added to the £14 billion of taxpayers' money so far thrown at the poll tax. It is the most breathtaking cheek on the part of the Conservative Members to pretend that, in some way, they are the guardians of prudent management of the taxpayers' money—[Interruption.] This deliberate self-delusion as to the true value of the RSG settlement may convince those who want to be misled, but it cannot alter the real consequences in the real world of reduced services and higher poll tax bills.

The size of the settlement is not the only problem. There is also the question of the distribution of the grant and the whole system of standard spending assessments, a system which even the Secretary of State's predecessor admitted was flawed and needed reform but which has remained unreformed and consequently open to fundamental objection.

Is the £4·2 billion of additional public expenditure that the hon. Gentleman is recommending within the £37 billion already promised, or is it a new and separate promise?

The hon. Gentleman must have been asleep at the time of the Budget and Finance Bill last year, when the House appoved that expenditure because it at least made some attempt to redress the short-changing of local government over a long period under the Conservatives.

I was speaking of the flaws of the standard spending assessments. Virtually no one has a good word to say for SSAs. Even the Audit Commission warned that the Government should not underestimate the lack of confidence in SSAs among local government politicians and professions.

Everyone knows that SSAs measure the wrong things. Why, for example, are needs measured but not resources, and why is this done in an arbitrary, capricious and over-complicated way? Why is it assumed that it costs £1,148 per adult to deliver a standard level of service in Manchester, but only £857 for the same standard level of service in Wigan? Why is it assumed that a 300-pupil secondary school in Sheffield needs £300,000 less than a similar school in Wandsworth?

Why does Barnsley, with all the problems of a declining mining area, receive an SSA ranking it 251st out of 366 English authorities—below that of such supposedly deprived areas as Epsom, Sevenoaks and Bath? Why are so many well-run Labour authorities in the north—Wigan, Barnsley, Doncaster, Rotherham, and so on—victims of the capping axe on the basis of a manifestly inappropriate set of SSAs? Do Ministers dispute in public what they have admitted in private—that the SSA system discriminates against those authorities?

My hon. Friend has referred to Barnsley, which is 36th out of 36 metropolitan districts. What is his view of a settlement that puts Manchester's SSA 78 per cent. higher than Barnsley's for the provision of a standard level of service?

My hon. Friend chooses one more of a veritable myriad statistics which could be adduced. There is a huge range of statistics which show how ludicrous and irrational is the system of SSAs. I pointed out on 26 November that there must be something wrong with a system which concluded that Harrow, with 15·4 days of snow each year, had more snow than Cumbria, with only 12·6 days. At least that nonsense, we understand, has been partially remedied, with two days added to Cumbria's total. But that is only one of the many inconsistencies.

Can either the Secretary of State or the Minister tell us how many local authorities—is it dozens or is it scores? —have been so concerned about their treatment that they have been to see them to try to get their assessments changed?

I agree with some of the hon. Gentleman's comments about the standard spending assessment; he has made many points which I believe many Conservatives throughout the country would make. Nevertheless, will he find time this afternoon to spell out some of the alternatives which the Labour party might think it could find to improve the situation?

We are at least making some progress. I very much welcome the spirit in which the hon. Gentleman not only concedes that there is common ground between us in the criticisms that I am making of the SSAs, but also demonstrated a willingness to learn from the excellent policies that we have published. I will gladly send him a set of the policy documents, which I am glad to say are in great demand by letter writers from all over the country.

It is not just the capricious nature of the system that is unacceptable; it is, I am sorry to say, the scope which the system offers to an unscrupulous Secretary of State to manipulate it for party advantage. It is not just the introduction of criteria, such as foreign visitor nights, which are plainly calculated to benefit Westminster; it is the pattern of the increase in SSAs, with a plain divergence along party lines, that gives real cause for concern. The figures are quite startling in their implications.

For local government in England as a whole, SSAs increased by 21£6 per cent. more for Tory-controlled authorities than for Labour-controlled councils. The figure for shire districts, where the comparison is least affected by differences in the nature of the authorities, is even clearer. The SSA for Tory authorities increased by 24£6 per cent. more than for Labour authorities and the same pattern is found for counties. The only exceptions are metropolitan authorities, where the comparison is impossible because there is only one Tory metropolitan authority, and London, where the rate of increase shows little variation according to political control.

The House may wish to know that the average SSA for every class of Labour-controlled authority is higher than it is for Conservative-controlled authorities. The hon. Gentleman is talking about shire districts. Labour-controlled authorities have SSAs which, per adult, are 27 per cent. higher than the average for Conservative districts.

The Secretary of State uses a statistic that simply shows that need tends to be greater in inner-city areas served by Labour local authorities, as he pointed out earlier this afternoon. Significantly, he did not deal with the figure that I presented to him. We are not discussing the absolute level of SSAs. The charge that I level against him is that, between the current and the coming financial year, he has sanctioned an increase in SSAs that is nearly 25 per cent. faster for Tory authorities than for Labour authorities.

I shall give way in a moment, once I have concluded this point.

The pattern revealed by those figures is too consistent and unmistakable to be accidental. The contrast is sometimes breathtaking.

The Secretary of State wants a second bite at defending his indefensible position.

That allegation amazed me when the hon. Gentleman first uttered it, so I looked up the figures. The most startling discovery was that one of the largest improvements was made in the neighbouring constituency to mine—Labour-controlled Oxford, East—and one of the lowest improvements was made in my district authority.

I am delighted that I have at least induced the Secretary of State to look at the figures. I am prepared to concede that the figures that he has just quoted are exactly accurate. However, although that is the second time that he has come to the Dispatch Box allegedly to deal with the point, he has still not denied the basic charge that we level against him.

I have not yet made the point, so the hon. Gentleman will perhaps sit down and listen to it for a change.

The conclusion must be that the Secretary of State has found a way, in election year, of providing an advantage to authorities of the right political colour. After all, we are operating in a highly charged, pre-election context and we are dealing with a Secretary of State who is, above all, a ruthless and unprincipled party politician. He could not tell someone the time without warning him that, under Labour, every hour would be reduced to 58 minutes. But even for him, it is a piece of breathtaking cheek that he should seek to link the Labour party with high local government taxation.

What brought lawful citizens on to the streets? What induced Tory councillors to resign? What forced £14 billion-worth of taxpayers' expenditure to be thrown at it? What destroyed the former leader of the Conservative party, the right hon. Member for Finchley (Mrs. Thatcher)? It was the poll tax. The poll tax forced up bills and was one of the most painful aspects of the Government's already pathetic record on personal taxation.

I suppose that all Members of Parliament are used to being accused of party political chicanery. What worries me is the hon. Gentleman's assault on my competence. He suggests that I have somehow tried to fix the revenue support grant to help the Conservative party. Again, my further inquiries into the matter, in which I am supposed to have been working for the benefit of the Tory party, show that I managed to arrange a situation in which the SSA for Barking and Dagenham is higher than the average for all the Conservative-controlled outer London boroughs.

I am glad to say that that is yet one further reason why no doubt I will be returned with an increased majority. Again, for the third time, the Secretary of State comes to the Dispatch Box and makes another irrelevant point, but he does not deal with the central charge, which remains on the table.

I want to take up the hon. Gentleman on the point which he made about the shires. He said that my right hon. Friend has been generous to the shires. Cambridgeshire is the one part which I know; the hon. Gentleman knows Cambridgeshire too, because he has been gadding about there quite a lot. Will he explain why, for months on end, the Labour and Liberal parties in Cambridgeshire have been bellyaching about the skinflint nature of my right hon. Friend? What does the hon. Gentleman say about that?

With every intention of being well meaning, the hon. Gentleman misunderstood the point that I was making. I was not saying that the Secretary of State had deliberately favoured shire districts. Let me reiterate the point. What I said was that, as between Labour-controlled shire districts and Tory-controlled shire districts, the increase in SSAs was 24·6 per cent. higher in the case of Tory-controlled authorities. We may have made a little progress and got that point across to the hon. Gentleman.

When I am confronted with a barrage of intending interveners, I am less likely to give way.

The significance of the SSA is that it determines the level of grant and therefore the size of the poll tax bill. It is also the basis for applying the cap on spending which will determine the cuts in services which will have to be made by each local authority. That is why the intricacies of the SSA system, which may seem arcane and remote from the concerns of most voters, are of great importance to those self-same voters.

The minds of voters will be concentrated wonderfully on local government finance by the arrival of poll tax bills at the beginning of April. We expect that the Secretary of State will try everything he can to shuffle off the blame for those high poll tax bills on to the local authorities, but we also know that the voters, by a huge majority, will agree with the Secretary of State in viewing the poll tax as a Tory tax.

I will give way to the hon. Gentleman, but I ought to give notice that I do not intend to deliver the same unstructured mess of a speech as the Secretary of State.

I wanted to take up the hon. Gentleman on precisely the point about poll tax bills. In answer to my hon. Friend the Member for Amber Valley (Mr. Oppenheim), the hon. Gentleman said that, if elected to office, he would immediately do away with what I think he referred to as the £25 million a day waste of the poll tax. Bearing in mind that the House has already passed the legislation to abolish the poll tax, and bearing in mind also that the poll tax bills will have gone out and that the financial year will probably have started by the time the general election takes place, is the hon. Gentleman saying that at that stage, with 10 or 11 months of the financial year and the poll tax still to run, he would abolish the poll tax? If so, will he tell the House how he would finance local government for the remaining months?

The hon. Gentleman's intervention simply shows how right we and most people are to regret the fact that the opportunity which the Government had to abolish the poll tax for this April was thrown away. I might add that that opportunity was aided by our offer of co-operation on the legislation required to do it, but that offer was turned down.

Many authorities, of whatever political control, will have to make substantial cuts to stay within the cap. That is the consequence of the universal capping which the Secretary of State now supports, in direct contradiction to his earlier and principled opposition to it. Many authorities which have hitherto escaped the threat of capping because their budgets fell below the £15 million threshold will be caught. No one should imagine that councils such as Derwentside or Elmbridge can make the huge cuts in their budgets now demanded of them without great damage being done to services.

Ms. Hilary Armstrong
(Durham, North-West)