House Of Commons
Monday 15 September 2003
The House met at half-past Two o'clock
Prayers
[MR. SPEAKER in the Chair]
Oral Answers To Questions
Culture, Media And Sport
The Secretary of State was asked—
Historic Royal Palaces
1.
What recent advice she has given to Historic Royal Palaces regarding the imposition of charges to the public. [129551]
My noble Friend Baroness Blackstone told the trustees of Historic Royal Palaces that they have the power to introduce charges for entry to the gardens at Hampton Court palace provided that the cost is reasonable, related to upkeep, and not at a level that effectively restricts public access.
Does the Minister have any constructive proposals to deal with a basic inequity, arising from a ruling of the European Court of Justice, that local people who use royal palaces—Hampton Court gardens in the case that we are considering—or other national monuments cannot be exempted from or given any sort of preference with regard to charges, which are designed to apply to tourists who visit those places perhaps once in a lifetime?
I know that the hon. Gentleman and some of his colleagues will meet my right hon. Friend the Minister with responsibility for media and heritage on Friday and I am sure that they will be able to hold a dialogue. I assure him that no final decision has been made about the subject. "Not to be announced" appears more times on the briefing sheet than I have previously seen since becoming a Minister. That is unfortunate, but I am sure that all will be revealed to the hon. Gentleman. I hope that what is under discussion will be helpful in dealing with not only the concern that he raised directly, but others.
Does the Minister know what happens in royal palaces in other countries? For example, visitors to Swedish royal palaces properly pay, but do local people have free access to the grounds? Can the Minister find out?
Royal palaces in other countries probably experience the same problems with visitor numbers as those here. That is why they are revisiting the issue of charging. However, I do not have the information that the hon. Gentleman requests to hand.
Mind Sports
2.
Whether it is the Government's policy to seek to legislate to permit certain mind sports to be recognised as sports for the purpose of receiving national lottery funding. [129552]
The Government recognise the benefits of participation in chess and other mind games and continue to look at the case for amending the Physical Training and Recreation Act 1937. That could allow the sports councils to fund mind games. It would then be for the councils, including those of the devolved Administrations, to decide whether to recognise individual mind games as sports for funding purposes.
I am grateful for that response and the moral support that the Minister and the Secretary of State for Education and Skills have given to chess and bridge. However, will the right hon. Gentleman acknowledge the unfairness, which means that British top-class and world-class players, especially juniors and disabled players, are sometimes unable to access the international competition that we should like them to experience because, consequent on the 1937 legislation, they cannot get lottery funding?
I understand the hon. Gentleman's point, but chess is funded directly by the Exchequer to the tune of £50,000. Indeed, in 2003, the figure will be £60,000. It has also received just under £500,000 directly since the lottery's inception. Funding streams can therefore be accessed for chess and other mind games. I am aware of the world-class performance, but until the problem of the 1937 Act is resolved and chess is included in the definition of sport, it cannot have access to direct funding from the Sports Councils.
I wish to support the line of questioning of the hon. Member for Oxford, West and Abingdon (Dr. Harris), who is my bridge partner in the House of Commons team. However, my question does not constitute special pleading because although I do not believe that the House of Commons team will apply for any grants, we are considering a serious issue. In my constituency many people play contract bridge, but travel to events, booking halls and so on are restricted to those who are reasonably wealthy. Recent studies clearly show that Alzheimer's and such conditions can be ameliorated by engagement with mind sports. I therefore urge my right hon. Friend to continue to use his best efforts to widen the canvas on which his brush is currently painting.
Notwithstanding all those points, I suggest that my hon. Friend gets a partner from either Scotland or Wales who could put some pressure on the respective Sports Councils. I have raised the matter at the sports cabinet, which Sports Ministers of the devolved Administrations attend. I am bound to say that there is currently no appetite for change. Unless there is such appetite in Scotland, Wales and Northern Ireland, it will be difficult to proceed with changes to the 1937 Act.
Performing Art
3.
If she will make a statement on the most recent funding settlement from the Arts Council for the performing arts in the regions. [129553]
While the allocation of funding is a matter for Arts Council England, I am pleased that so many arts organisations in all regions of England are benefiting from the increased funding that we secured for the arts in the last spending review. This will see arts expenditure increase to £410 million by 2005–06, a 117 per cent. increase since 1997.
I am grateful to my right hon. Friend. She will be aware that theatre provision in my constituency has been inadequate since the closure of the Barnsley Civic theatre several years ago due to the necessity for structural repairs. Unfortunately, successive bids for lottery funding have failed, and the Arts Council obviously now has less money available to distribute to such causes. Will my right hon. Friend examine this situation to see whether any further assistance can be given to my local authority, so that it can provide a theatre in my constituency?
I have a great deal of sympathy with what my hon. Friend says, in view of the fact that the theatre in his constituency has now been dark for some years and was unsuccessful in the last bidding round. It is not for me to say whether any help can be given, because it is important that the allocation of funds by Arts Council England is independent of the Government. I note, however, that Barnsley is one of the priority areas in Yorkshire for development by the Arts Council, which recently funded a development officer in the town to help with cultural regeneration. I am delighted that culture is forming such an important part of the economic regeneration there. I would also point out to my hon. Friend that it is possible to bid again, and I hope that careful contact with the Arts Council prior to the bid being put in will secure a better result next time. If that were the case, I would join him in being absolutely delighted.
Is it not the case that the Arts Council and other organisations expected additional money when the Millennium Commission was wound up? Notwithstanding that, is the right hon. Lady aware that the Arts Council has given a generous grant to the Garrick theatre in my constituency, which the Secretary of State opened when she visited Lichfield recently? Does this not just go to show that when bodies have decent organisation and make decent applications, money can sometimes be found?
The hon. Gentleman is right to say that many good quality bids have been funded. I was delighted, on my only other appearance at DCMS questions, to celebrate with him what has happened at the theatre in Lichfield, which my right hon. Friend the Secretary of State opened the following day. I would, however, question something that he said. I do not think that he meant to give the impression that the bid from Barnsley was no good. I am sure that in Yorkshire, as in the west midlands, Humberside and other regions, there are good quality bids. I am pleased to say that the bids coming in from cultural organisations for investment in regeneration are now of such quality that it is becoming difficult to make final decisions. I agree with the hon. Gentleman, however, that we should always ensure that we have as much money as possible to fund good bids, as such projects form an essential part of the economic infrastructure of the country and provide for people to enjoy their leisure time.
Athletics (North-East)
4.
If she will make a statement on Government-funded provision for athletics in the north-east. [129554]
Since 1998, a total of just under £2.8 million has been awarded to athletics in the north-east by Sport England from Exchequer or lottery programmes, comprising four community capital programme awards totalling just over £2.5 million, one award of £50,000 through the community athletics refurbishment programme—part of the legacy money given to UK Athletics—and 33 Awards for All grants totalling£113,000.
I know that the Minister is looking forward to doing the great north run next week. When he does so, he will pass Gateshead stadium, which he will see is in dire need of investment. Is he aware that the stadium has been turned down for an £11 million lottery bid, while at the same time the Duke of Northumberland, one of the richest men in the north-east, received an £11 million grant from the lottery for some old painting that he did not want any more? When the Minister is up there, will he intervene in this matter and get some public resources in so that we can get this worthwhile scheme going?
I can assure my hon. Friend that when I am doing the great north run on Sunday, I shall be keeping my eyes in front and looking for the 13-mile marker. Seriously, though, my hon. Friend raises an important question. Sport England's review has been looking at the facilities for elite development, and it took the decision in July to review that. I was up there a few weeks ago, and it was pleasing to see how all the parties involved have come together. A meeting was called by Sport England, which has given a commitment that there will be some elite facilities there, and the development agency, the Government office and the universities are all now involved, together with the local authorities. I hope, therefore, that in the next few weeks or months, there will be a resolution to the problem to which my hon. Friend refers.
Notwithstanding what the Minister has just said about funding for athletics, I assure him that athletics clubs in the north-east, in common with sports clubs throughout the country, will react with shock-horror at his decision, as outlined to me in his letter of 20 August, that clubs will have to pay the full fee for alcohol licences in future. In Committee on the Licensing Bill, his predecessor, the hon. Member for Pontypridd (Dr. Howells), said in response to the three amendments that I had tabled to reduce licensing fees payable by voluntary sports clubs in the north-east:
"Having regard to the strength of the argument that the hon. Gentleman has presented to the Committee"—[Official Report, Standing Committee D, 6 May 2003; c. 4021—
Order. The question is out of order, so I cannot allow the Minister to answer.
Lottery Funding
5.
If she will make an assessment of the criteria used by the lottery funding bodies to distribute their resources to applicants. [129555]
The criteria vary from distributor to distributor, but they are based on national lottery financial and policy directions issued to distributors by the Department, and on distributors' own strategic plans and funding policies.
Does the Minister share my concern that the current use of highly selective types of disadvantage and deprivation by many lottery funding bodies to target their funding is causing frustration, disillusion and even anger among many other groups facing similar levels of deprivation, but who feel excluded from access to lottery funds?
I am grateful to the hon. Gentleman for raising this matter with me. He has sent a letter to the Department, which we will reply to shortly. I took the trouble to look into the background of that letter, because I thought that it may have been the reason for his question. On the face of it, the matter that came before his constituent has been clumsily dealt with by Awards for All in the west midlands. I agree with the hon. Gentleman about that. I have no control over what Awards for All writes in letters, but had I been the hon. Gentleman's constituent and read about the priority for funding as explained to him, I may have had the same response as he had. I hope that that message gets back.
The letter to the hon. Gentleman's constituent was clumsily written, but the policy is not clumsy or ill-thought-out. It is important that all lottery distributors examine how money is being distributed and ensure that under-represented groups are assisted to make better quality applications or to get their fair share. The letter was a reflection of that. The groups that were highlighted in the letter have been significantly under-represented in applications and awards from the Awards for All lottery fund. The issue could have been described in a much better way that would not have antagonised people. Groups other than those highlighted receive funds from Awards for All. May I compare the hon. Gentleman's constituency with mine as an example? His constituency has had £500,000 in 147 awards, whereas my constituency has had £31,000 in eight awards. On that basis, perhaps it is me rather than him who should be complaining about the criteria and the priorities.Will my right hon. Friend pause to consider the winner of last night's "Restoration" programme? Victoria baths, which lies between my constituency and that of my right hon. Friend the Member for Manchester, Gorton (Mr. Kaufman), was refused lottery funding on a number of occasions. That does not necessarily reflect on the lottery per se, but it shows that the people sometimes have very different priorities from those of the lottery. Will she join me in congratulating Gill Wright and all the many people who made the bid for Victoria baths so successful?
Of course I will join my hon. Friend. With my connections, affection for the city and knowledge of the area, I am delighted that the people expressed that view. In the consultation paper on the national lottery, we are looking for ways in which the general public can make clear their priorities. Perhaps there is a message from last night, which may reach the ears of those who make the decisions. If so, I would be thrilled.
We could argue until we are blue in the face about the distribution of lottery funds. Is not the issue the reduction in sales of lottery tickets, as a result of which less money is available to distribute? When the lottery began it was supposed to be a competition with one big jackpot. Since then it has fragmented. What proposals does the Minister have to increase lottery sales that do not involve further fragmentation?
Ours is still the most successful lottery in the world. Since it was launched in the mid-1990s, £14.77 billion has been raised. If the hon. Gentleman looks at the pattern of sales and receipts for lotteries elsewhere in Europe and beyond, he will find that sales fall off and plateau after a number of years, and new games are needed. I have no plans to launch new games because that is not my responsibility, but the hon. Gentleman will know from an announcement made last week that Camelot has launched its first new game for some years, and it plans to diversify the games over the next few years to increase funds. I agree with the hon. Gentleman that more sales mean more money for good causes.
Olympic Bid
6.
What benefits for UK regions she estimates will accrue from the London Olympic bid. [129556]
Hosting the Olympic and Paralympic games in London in 2012 should provide benefits throughout the UK as a whole. Some events, such as sailing and shooting, require specific venues and are therefore likely to be staged outside London. The Olympic football competition is also likely to be held in stadiums around the country. In addition, there will be opportunities to secure investment in improved sporting facilities around the country by some of the visiting teams as they arrive for training and preparation in the year leading up to the games. We intend to do all we can to ensure that as much of the country as possible benefits from the opportunities that the games will create.
I thank my right hon. Friend for that helpful reply. I am sure that the whole country will take great pride in a successful London bid for 2012, but that pride might just turn to resentment if people in the regions feel that more money is being sucked into London's infrastructure when London already receives more per capita funds by a mile than any other region. I am particularly anxious that lottery money used for the bid should be seen to be distributed equitably. As my right hon. Friend knows, a number of Members on both sides of the House have campaigned for a fairer share of lottery money, and I hope that she will give special attention to that aspect.
I shall certainly do that. I pay tribute to the efforts, led by my hon. Friend, to focus on the problem that lottery money is not always distributed equitably.
As for the balance between London and the rest of the country, it should be remembered that a substantial part of the estimated cost of hosting the games will be met from London as well as the lottery and income from the International Olympic Committee. While preparing the detailed case for bidding, however, the Government consulted all the regional development agencies to test the very issue raised by my hon. Fiend. The response was unanimous across the country: RDAs recognised that hosting the games in London had the potential to benefit every region if it was done properly. We need to ensure that those benefits are realised in practice wherever people may be.I can confirm that the official Opposition support the bid and expect the UK regions to benefit if it succeeds. But should not the House be more than a little concerned about the fact that the Government have still not appointed a chief executive officer, while Paris has more than 100 people working full-time on its bid? It appears that our preparations are behind even those of Havana. If the Government are serious about the bid, should not senior Ministers be treating the matter with far more urgency?
I welcome the right hon. Gentleman to his Front-Bench responsibilities. I also welcome the cross-party support for the bid. However, it is not the Government's job to appoint the chief executive of the bidding company; that is the job of the bidding chair, and she has that process in hand. She is determined to recruit the best possible person—[Interruption] That is a judgment that she will make, with great respect. On Friday she announced the names of board members, and I think all who have seen them will recognise the strength of the sporting interests involved and the commitment to representing and promoting regional interests, as well as drawing on the experience of the very successful Commonwealth games in Manchester last year.
Therefore, progress is being made, greatly helped by the very detailed preparation that was undertaken in advance of the Government's decision to bid. In addition to the announcement of the board, the bidding chair has announced the name of her chief operating officer, so the organisation is being put together. The work is proceeding and the important thing now is that hon. Members on both sides of the House do not simply talk about support, but deliver it in practice at every turn.Can my right hon. Friend shed some light on why neither of the two candidates for the post of chief executive took the job? Can she explain why that was the case?
No, these are decisions for the chair of the bidding company and I do not think that it is right that I should speculate on the reasons why Barbara Cassani is continuing to interview candidates for chief executive.
Does the Minister accept that the eastern region and Essex in particular have a major part to play in the London Olympic bid? Will she ensure that the Government bring forward resources and co-operate with Essex to ensure that Essex can benefit from the bid and that the bid is successful?
I understand why the hon. Gentleman, as a diligent constituency MP, wishes to highlight the interests of his constituents but I do not have anything to add to the answer that I gave to my hon. Friend the Member for Morley and Rothwell (Mr. Challen), which is to state in broad terms the Government's commitment to ensuring that the whole country benefits as much as possible from the investment in the Olympics.
Analogue/Digital Television
7.
What responsibilities the Government have regarding the availability of (a) analogue and (b) digital television services in Greenock and Inverclyde. [129557]
The Independent Television Commission and the BBC are jointly responsible for television broadcasting in the UK. As my hon. Friend knows, analogue coverage is provided in Greenock and Inverclyde by the Rosneath and Rothesay transmitters. However, reception in parts of Greenock and Inverclyde is affected by local topography.
I am grateful to my right hon. Friend for that answer. As she knows, many of my constituents in Inverkip cannot get an analogue signal, so they have subscribed to BSkyB Digital. Now, on a Saturday afternoon when they want to watch on the BBC a live football match, they get a blank screen with a sign saying, "Switch to analogue to watch this match because of other contractual arrangements." That is not an option for them. Should there not be one simple principle written into the new BBC charter that, if one pays one's licence fee, one should be able to watch the BBC, irrespective of any other commercial or technological impediments?
Obviously, comments about the future of the BBC charter will be for my right hon. Friend the Secretary of State in future months and years, but I have some sympathy with my hon. Friend's constituents. Less than 1 per cent. of people in the United Kingdom cannot receive analogue television, but for his constituents it is 100 per cent. I can imagine their dismay at not being able to watch Scottish football on a Saturday afternoon. He makes a powerful point. All I would say is that the rights and ability to watch analogue television are as important to his constituents as they are to anyone else's throughout the UK. We will do as much as we can to put pressure on the relevant authorities. We will take up his point with them.
Bbc
9.
If she will make a statement on the (a) governance, (b) independence and (c) accountability of the BBC. [129559]
We are committed to a BBC that is independent of Government and accountable to Parliament and licence fee payers and to a governance regime that delivers on those requirements. The forthcoming charter review will provide the opportunity for a full public and industry debate about those issues.
When does my right hon. Friend intend to launch the review of the charter of the BBC and what form will it take? Who, for example, will undertake it? Will it be civil servants in her Department or an independent commission? Among other things, will the charter review look at the proposition that the BBC should be regulated in terms of the quality of its programmes by Ofcom, in the same way that ITV and independent radio are?
There are two answers to my hon. Friend. First, when I spoke recently at the Edinburgh television festival, I made it clear that, over the next few weeks, I would set out in detail the way in which the Government intended to approach the charter review, which will run over a period of time. The present charter is in place until 2007. I repeat today that I attach enormous importance to the charter review involving public consultation in every way that we can. That will be one of the features and I will make the announcement over the next few weeks.
Previous charter reviews have coalesced in about four areas. Governance, funding and the BBC's position as a monopoly—less the case now, but certainly an issue in the past—have always been issues. Also, building on the Communications Act 2003, we will want to look at the BBC's role in a multichannel world. These questions are not new and recur every time the BBC charter is up for renewal. We are strongly of the view that the voices of the people of this country, who pay for the BBC, should be powerful in shaping the charter review argument.Does the Secretary of State accept that despite her assurances that the charter review will not be influenced by the Government's arguments with the BBC about Andrew Gilligan and the "Today" programme, the process has not been helped by the reports of threats against the BBC from Ministers and, indeed, former Ministers? Does she agree that it is all the more important that the process is seen to be objective and transparent? Given that we have known for 10 years that the review is to happen, why is she not in a position today to announce how the Government intend to go about it?
On the hon. Gentleman's first point, I can state categorically that the conclusions of the Hutton report will impinge on the charter review only where any conclusions are relevant to the process of the charter review. I have made that clear and the position has not changed. There have been no threats, nor anything else that would undermine the integrity of the process, which is crucial. Given that the charter review process will take up to three years, it is right that all the preliminary work—leading on from the Communications Act, which received Royal Assent in the summer—is done properly. We will make an announcement when the work has been undertaken, rather than at the prompting of the Opposition.
The report of the Secretary of State's interview in The Times said:
That came as news to the Opposition, as we argued that case throughout the passage of the Communications Act. Does she accept that the events of the summer have once again highlighted the need for the BBC to be made accountable to an external and independent body, rather than the rather cosy arrangement that exists at present?"Ministers have long favoured handing the board of governors' regulatory responsibilities over to Ofcom."
During the passage of the Communications Act, it was clear that the issue of governance would be revisited at the time of the charter review, but that the Act represented a broad settlement for now. As I said in response to my hon. Friend the Member for City of York (Hugh Bayley), that is not new. There will always be malicious forces seeking to misrepresent and distort, but I restate that decisions about the future funding, organisation and governance of the BBC will be affected by the outcome of the Hutton inquiry only where there is clear and direct relevance. That is the position, whatever kind of mischievous or malevolent spin Opposition Members try to put on it.
Is not the current state of the governance and accountability of the BBC utterly unacceptable when the head and deputy director of BBC News and the editor of the "Today" programme are allowed to get away with colluding in the back-door briefing of members of the Foreign Affairs Committee, and that editor is able to get away with approving a contentious article written by Andrew Gilligan for The Mail on Sunday? Apart from the resignations at all levels that we need to expect from the BBC, is it not time that, instead of buckets of whitewash, the BBC's accountability should be the sole responsibility of the new body, Ofcom, as recommended by the Culture, Media and Sport Committee?
My right hon. Friend has set out some of the evidence received by the Hutton inquiry. I do not intend to be drawn into that—we will wait until the inquiry has concluded before making any judgment on any of the points that he raises. My right hon. Friend refers also to the governance of the BBC. His Committee's view is well known, but the Communications Act 2003 takes a different view. However, none of us must forget the BBC's importance not just in this country, but in term; of the way that the rest of the world sees us. That is why it is so important that we get the charter review right, and that at its outcome we have a BBC that is strong and independent of government, and that does the job for the people of this country, and across the world, for which it is so respected and admired.
Leaving aside the Hutton inquiry, and given that members of the public both abhor fence-sitting by politicians and applaud those politicians of all parties who say openly what they think, can the right hon. Lady tell the House this afternoon, on the criteria of governance, independence and accountability, what marks she would award the BBC on a rising scale of one to 10?
With great respect, that was an elegant but insubstantial question. The hon. Gentleman has repeated the framework of first-stage questions for charter review, which we will engage with over the next two to three years.
Does my right hon. Friend agree that through their recent actions, the BBC governors have in fact confirmed the value of their role, independent of government and of commercial regulators, first by stoutly rebutting claims of anti-war bias; secondly, by instituting a review of the rules on BBC journalists writing for newspapers; and thirdly, by upholding a complaint about the use of footage of two dead British soldiers during the "Correspondent" programme—a complaint which, unlike that of Mr. Alastair Campbell, was formally made to those governors?
My hon. Friend will be aware that the duty of impartiality and accuracy defines the governors' regulatory responsibility. The contributions that we have heard give a flavour of the debate to come, in the context of charter review, on the future governance, funding and nature of the BBC.
Notwithstanding what the right hon. Lady says about her willingness to consult the people about their continuing desire to pay £116 a year for the privilege of watching "Fame Academy" and so on, can she say whether she and the Labour Government remain committed in principle to the licence fee as the means of funding the BBC?
Again, the charter review will address that issue. As I have said on many occasions, we want the review to be wide-ranging and fundamental, so it would be wrong at this stage for the Government to express a view that would constrain a debate that is just beginning. No doubt the hon. Gentleman, in his characteristic way, will have many robust contributions to make in the months ahead.
Amateur Sports Clubs
10.
If she will make a statement on her policy on rate relief for amateur sports clubs. [129561]
I am pleased that the Government were able to introduce an amendment to the Local Government Bill on 10 September. The amendment will provide mandatory rate relief for registered community amateur sports clubs. That further demonstrates the Government's commitment to supporting our 110,000 amateur clubs, and I believe that it is excellent news for sport.
I thank my right hon. Friend for that excellent news and for the Government's commitment to supporting grass-roots sport. I can assure him that the secretary of Chepstow rugby club, whom I spoke to this morning, knows that 80 per cent. rate relief on the £4,000 that the club currently pays to Monmouthshire county council will be immensely beneficial. Will my right hon. Friend ensure that all the amateur sports clubs that stand to gain from this excellent policy will be informed and encouraged to apply?
Very much so. I received a letter congratulating the Government—such letters are not very common these days—from the National Playing Fields Association. It reminded me of the association's annual report of 1930 and provided rather more detail than appeared in the Hansard when the matter was discussed at the time. That letter also referred to the annual report of 1931, which referred to efforts made
That letter continued:"to obtain rate relief from the additional rate burdens that now oppress sports clubs".
From time to time the National Playing Fields Association has bashed the Government. but on this occasion I thank it for congratulating us."70+ years later you deserve the credit for introducing something very simple, obvious and helpful to community sports".
The Minister's announcement and the amendment to which he referred are extremely welcome, as his hon. Friend the Member for Monmouth (Mr. Edwards) rightly said. However, will he ensure that his definition of registered community sports clubs leaves no room for political correctness and, in particular, allows target-shooting sports access to the rate relief?
We provided a definition of community amateur sports clubs, or CASCs, about 12 months ago and we have sent out 110,000 leaflets to the nine regions, establishing a one-stop shop for any amateur sports club that wants information on the subject, so it is not the burden that some people have suggested. We agreed the definition with the Treasury and that definition has been sent out to the clubs. I do not know whether the shooting fraternity has applied for CASC relief, but I shall look further into it and write to the hon. Gentleman.
Free-To-View Television
11.
What discussions she has had with (a) ITV, (b) Channel 4, (c) Channel 5 and (d) BSkyB regarding their policy on free-to view access to their services on digital satellite television. [129562]
I accept that this question deals with a serious matter that many constituents have raised with their MPs of all political parties. The position is that, until May, the BBC provided Solus viewing cards to satellite viewers who did not have a subscription to a pay-TV service. That allowed them to receive BBC, ITV, Channel 4 and Channel 5 free-to-view. In May the BBC moved its services to a new satellite, which meant that viewers could receive them without any viewing card. The BBC ended payment to BskyB for the provision of the cards, and it is now for ITV, Channel 4 and Channel 5 to find an arrangement to ensure that customers continue to receive their public service channels without the need to subscribe to Sky. I have written to the chief executives to ask about their intentions and their responses indicate that the broadcasters are considering various options. I am closely monitoring the discussions, which I understand are making progress.
I thank my hon. Friend for her efforts thus far. In common with my hon. Friend the Member for Greenock and Inverclyde (David Cairns), I know that this is a serious issue. The problem is not just the lack of an analogue signal in some localities, but the lack of cable and free-view in rural parts of Dumfries and Galloway. The recent decision to broadcast unencrypted on satellite and to withdraw support from free-to-view viewing cards means, as my right hon. Friend rightly says, no signal for ITV, Channel 4 or Channel 5 unless people subscribe to Sky. Will she therefore highlight to broadcasters the complete lack of access to free-to-view channels for those viewers and, if broadcasters are not prepared to find an answer, will she use the provisions of the Communications Act 2003 to empower Ofcom to insist on finding an answer?
I thank my hon. Friend for posing that question on behalf of his constituents. It is important to be clear that we are not at that stage. Negotiations are proceeding and we are optimistic that the broadcasters will develop a solution. As I have made clear, we will keep the situation under review and we recognise the concern and anxiety that it causes to the thousands of people who are directly affected.
Electoral Commission Committee
The hon. Member for Gosport, representing the Speaker's Committee on the Electoral Commission, was asked—
Marked Electoral Registers
21.
To ask the hon. Member for Gosport (Mr. Viggers), representing the Speaker's Committee on the Electoral Commission, what discussions the Committee has had with the Electoral Commission on the use of marked electoral registers in political campaigning. [129572]
The Speaker's Committee has had no such discussions. However, I am informed by the commission that it is currently reviewing the use and supply of, and access to, marked electoral registers and intends to make recommendations to Government when its review is complete.
I thank the hon. Gentleman for that reply. In any discussions he has with the Electoral Commission, will he remind it that the Chartists campaigned for the fundamental human right to vote, and in secret, not for the fundamental human right to keep secret whether one voted or not? If the Electoral Commission did not allow marked registers to be made available to political parties, would not that represent yet another erosion of the idea of voting as a duty, rather than just another lifestyle consumer choice?
I hear the representation made by the hon. Gentleman, but issues of law and principle, human rights and data protection are involved, as well as practical issues about the provision of an accurate register, especially during the campaign period itself. The commission is assessing those issues alongside the views of political parties and the public.
Will the hon. Gentleman put the other side of the argument to the Electoral Commission, especially with regard to Northern Ireland? En the past it has been the practice of certain political parties in Northern Ireland to make use of marked registers to see who has not voted for the purpose of personation.
The Electoral Commission is considering all those matters, but it takes the view that if the marked registers can be made available—subject to the caveats that I have just described—it would be in the general public interest for them to be made available.
Church Commissioners
The hon. Member for Middlesbrough, representing the Church Commissioners, was asked—
Sexual Orientation (Employees)
22.
Whether the Church Commissioners have set or intend to set a requirement relating to sexual orientation for any of their employees in non-proselytising roles; and if he will make a statement. [129573]
Good afternoon, Mr. Speaker. The Church Commissioners and the other national Church institutions are committed to an equal opportunities policy that provides comprehensive safeguards against discrimination on those and other grounds. The policy is currently being examined to ensure that it is consistent with the two new sets of employment regulations that will come into force in December. It is unlikely to need fundamental change.
The hon. Gentleman will be aware that the sexual orientation employment regulations were changed at a late stage to allow organised religions to set an employment requirement on grounds of sexual orientation in order to comply with religious doctrine or to avoid offending the religious susceptibilities of a significant number of their followers. That exemption has been questioned by the Joint Committee on Statutory Instruments as possibly being ultra vires, and a judicial review is threatened by the trade unions. Therefore, how can he say what he has just said and how does he justify his remarks earlier this year, when he said that the Church
Furthermore, a letter from the Archbishops Council, dated 23 January, requests the Government to add to the regulations the very words that I have cited."is opposed entirely to discrimination of any sort and, in particular, to the discrimination of the sort to which my hon. Friend refers."?—[Official Report, 30 June 2003; Vol. 408, c. 17.]
I surmise that that supplementary was written before the hon. Gentleman heard my reply. All anti-discrimination legislation carries the scope for organisations to apply genuine occupational requirements to jobs for which it can be objectively demonstrated that a person with or without a particular characteristic is required. Our policy is comprehensive, and it covers discrimination on the grounds of gender, race, nationality, colour, culture, sexual orientation, disability or age.
I wonder, therefore, whether my hon. Friend will comment on the fact that at present the Church is able to discriminate on the grounds of gender against its women employees taking high office in the Church?
There is no such discrimination in the Church and I beg to differ from my hon. Friend. She will be aware that 2,000 women have been ordained in the Church of England since the Priests (Ordination of Women) Measure 1993. As I have already pointed out, we are anti-discriminatory in our Church and will continue to be so.
I am grateful to my hon. Friend for his answer; it is about as clear as it can be that dinner ladies employed in Church of England schools are not going to be sacked because they are lesbian and that caretakers are not going to be sacked because they are gay. Could the Church also take on something of a proselytising role and persuade other Churches to follow its example and, for that matter, in its own proselytising jobs, including bishoprics, could it adopt the same policy?
I am always grateful for interventions from my hon. Friend. He relieves me somewhat, however, as the question dealt only with non-proselytising roles.
Church Access (Disability Discrimination)
23.
What plans the Church Commissioners have to comply with the Disability Discrimination Act 1995 with regard to access to churches and church buildings. [129574]
The Council for the Care of Churches and the Cathedrals Fabric Commission, within whose remit those matters lie, has issued a guidance note which explains the Act and its ramifications for the Church. That document can be found on the Church Care website.
I am grateful to my hon. Friend. Does he agree that churches and chapels should not feel threatened by the Act, as it requires that reasonable steps be made and in fact many churches and chapels make reasonable steps? However, given the age and design of many churches and chapels, it would be a great help if they were able to apply for public moneys to adapt churches and church entrances for the benefit of people with disabilities.
I am grateful to my hon. Friend. The question of public moneys is for the Chancellor of the Exchequer and not for the Church, but the Church takes reasonable steps to ensure that any disabled person who has difficulty can take communion. There is also provision of auxiliary aids, such as hearing loops, large-print hymn sheets and handrails. We are careful to ensure that there is no discrimination as regards worship or access to churches.
While of course we all support, in spirit and in law, the provisions of the DDA, will the hon. Gentleman confirm that it is his hope that there will be a light touch where meeting those provisions involves serious alterations to buildings of outstanding architectural merit? As many of our churches are among our country's 500,000 listed buildings, it would be wrong deleteriously to affect their design by meeting the provisions of the Act, so a sensible compromise is needed, such as that we have found, I hope, in the Palace of Westminster.
I am grateful to the hon. Gentleman. Modifying churches to allow access is relatively inexpensive, although lack of funds is never an excuse to ignore the requirements of the Act. However, awareness of our heritage and of the number of buildings that are either listed or extremely old is a point well worth making.
Is my hon. Friend aware that many churches have an outstanding record in responding to the needs of people with disabilities, especially in the provision of hearing loops, to which he referred? Will they continue to do that in the interest of best practice in public buildings?
I am grateful to my right hon. Friend. I, like many other hon. Members, remember his sterling work for disabled people over many years and of the particular private Member's Bill that he put through. His point is well taken and will be well received in the Church.
Further to the hon. Gentleman's reply to my hon. Friend the Member for Chipping Barnet (Sir Sydney Chapman), does he agree that, although it is essential that our churches are available to everyone who wants to visit them or worship in them, it would be wrong for structural changes to compromise the outstanding beauty and architectural merit of some of the historic churches that are part of our national heritage?
That point was well made. However, we would not wish to deny any member of our society—disabled or otherwise—access to holy communion, so any necessary steps should be taken to allow participation. In fact, to act to the contrary would be unlawful.
Electoral Commission Committee
The hon. Member for Gosport, representing the Speaker's Committee on the Electoral Commission, was asked—
Postal Votes (Intimidation)
24.
If he will make a statement on the commission's assessment of measures necessary for the prevention of intimidation of postal voters. [129575]
In its reports, "Absent Voting in Great Britain" and "The Shape of Elections to Come", which were published earlier this year, the Electoral Commission has recommended a range of measures designed to reinforce the arrangements to prevent the abuse of postal votes.
I thank my hon. Friend for that answer. I am sure that he will be aware that our forebears fought for the secrecy of the ballot and that that secrecy would be compromised by having to mark ballot papers or being able to mark them in public, whether in the presence of a landlord, a trade union official or the head of a household. What is the Electoral Commission doing to ensure that no undue influence is exercised on people because of the requirement for them to mark their ballot papers in public?
My hon. Friend makes a very important point. Of course, the Electoral Commission has to balance that against the clear advantage of the increase in voter participation with postal ballots. The commission has recommended a wide range of measures, including replacing the current declaration of identity with a new security statement, signed by the voter; new secrecy warnings on postal voting literature and ballot papers; more effective tools for prosecutors; a new police power of arrest on reasonable suspicion of personation at any location, not just at polling stations; a marked register, showing who has cast a vote by post, available after elections; and a new code of practice on handling postal ballot papers by candidates and party workers.
The hon. Member will recognise that most recent election disputes have been over postal and proxy votes. As we are increasingly moving into an era of all-postal votes, is he absolutely certain that local police, local authorities and returning officers will have adequate powers to ensure that votes are in fact cast in the way that was intended by the said voters, so that the voting is not a sham?
The Electoral Commission will propose that we move forward on the basis that I have just described, but of course, it will keep the situation under review, and I am sure that, if further action is required, it will be anxious to proceed with that as quickly as possible. I have to inform the House that, having examined the operation of the pilot schemes, the commission has recommended that all-postal voting, if backed by changes in the law to minimise the risk of electoral abuses, should become the standard approach at local elections. That is the commission's proposal; it will be for the Government to decide whether to act on it; and then, of course, ultimately for the House to implement any change.
Boundary Reviews
25.
What provision is made to assist stakeholders interested in local government and boundary reviews to obtain information to help them to make submissions to the boundary committee: and if he will make a statement. [129576]
The boundary committee provides a wide range of information to assist stakeholders in making submissions, including leaflets, information in the local press and through the committee's website. The committee also holds briefing meetings in the areas under review.
I am sure that the hon. Gentleman is aware of the report that the Select Committee on the Office of the Deputy Prime Minister issued after taking evidence from the chairman of the boundary commission and the boundary committee which identified that people in the wards under review are at a disadvantage because maps, statistics and professional help are not available to them, but are available to the local authority. I am disappointed with the hon. Gentleman's response because the real issue has apparently not been addressed: the need to give that information to stakeholders to help them to submit an alternative to the boundary committee's proposals. That lack of information denies many people their democratic right to have some say in their own destiny. Will the hon. Gentleman relay that point to the boundary committee and ensure that information is made available to stakeholders, so that they can compete with local authorities when submitting a response to the boundary committee?
I am instructed that the Electoral Commission and its boundary committee give equal consideration to all submissions that are received. Where appropriate, it requests that the local authority provide interested parties with further detailed information and some assistance. The boundary committee will also make its information available to interested parties. The main consideration is always the argument and evidence that accompanies any submission.
I am sure that my hon. Friend is aware that the boundary committee is in the process of a major review of local government boundaries in three regions in this country, including the north-west, which I represent, as a result of the proposed referendums on regional government. In terms of providing information to stakeholders and others, will the committee publish how much that review will cost?
I must say to my hon. Friend that the work undertaken by the boundary committee is at the instruction of the Office of the Deputy Prime Minister, to which any questions on that subject should be put.
Points Of Order
3.30 pm
On a point of order, Mr. Speaker. I am confident that it will not have escaped your notice that yesterday's edition of The Mail on Sunday set out in terms a personal minute from the Foreign Secretary, dated 17 March this year, to the Prime Minister, in which he urged the Prime Minister to stop short of military engagement in the Iraq war. As you will be aware, the very next day, on 18 March, at column 901 of the Official Report, the Foreign Secretary told the House on a Government motion authorising United Kingdom military engagement in Iraq:
Given the apparent irreconcilable contradiction between the Foreign Secretary's personal minute and his statement to this House, has he requested to come to the House to make a personal statement to explain why he expressed one view on this major issue to the Prime Minister on one day and a totally opposite view to the House on the next day, and to clear up which of them accurately reflected his view?"I am as certain as I can that the Government's course of action is right."—[Official Report, 18 March 2003; Vol. 401, c. 901.]
It is for any Minister to decide when he or she wishes to make a statement. It is not a matter for me to be drawn into at this stage.
Further to that point of order, Mr. Speaker. On a House of Commons point, when such grave charges as these are laid, do not Ministers owe it to the House to say one thing or the other, whether it is true or false, because it is deeply unsatisfactory that such grave charges should be left in limbo?
I have already said to the right hon. Member for Devizes (Mr. Ancram) that this is not a matter for the Chair.
Further to that point of order, Mr. Speaker—
I have said to two Members that this is not a point of order, but I will listen to the hon. Gentleman.
Further to that point of order, Mr. Speaker. Can you confirm that although the information that my right hon. Friend the Member for Devizes (Mr. Ancram) has just used came to us from only one source, that would not have been a bar from the Government making a statement?
As I said, I will not be drawn into this matter.
Programme Motions
Water Bill Lords (Programme) (No 2)
Motion made, and Question put forthwith, pursuant to Orders (28 June 2001 and 29 October 2002).
That the programme order of 8th September 2003 in relation to the Water Bill [ Lords] be amended by the substitution in paragraph (2) (time for conclusion of proceedings in Standing Committee) for the words 'Tuesday 21st October' of the words `Thursday 23rd October'.—[ Mr. Ainger.]
The House divided. Ayes 240, Noes 98.
Division No. 308]
| [3:32 pm
|
AYES
| |
Abbott, Ms Diane | Cunningham, Jim (Coventry S) |
Ainger, Nick | Dalyell, Tam |
Ainsworth, Bob (Cov'try NE) | Davey, Edward (Kingston) |
Allan, Richard | Davey, Valerie (Bristol W) |
Allen, Graham | Davies, Geraint (Croydon C) |
Armstrong, rh Ms Hilary | Dean, Mrs Janet |
Atherton, Ms Candy | Denham, rh John |
Atkins, Charlotte | Dhanda, Parmjit |
Austin, John | Dismore, Andrew |
Baird, Vera | Dobbin, Jim (Heywood) |
Banks, Tony | Doran, Frank |
Barnes, Harry | Drew, David (Stroud) |
Barron, rh Kevin | Eagle, Angela (Wallasey) |
Bayley, Hugh | Eagle, Maria (L'pool Garston) |
Beard, Nigel | Edwards, Huw |
Bell, Stuart | Ellman, Mrs Louise |
Berry, Roger | Etherington, Bill |
Best, Harold | Farrelly, Paul |
Blunkett, rh David | Field, rh Frank (Birkenhead) |
Borrow, David | Flint, Caroline |
Bradley, rh Keith (Withington) | Flynn, Paul (Newport W) |
Bradley, Peter (The Wrekin) | Foster, rh Derek |
Bradshaw, Ben | Foster, Don (Bath) |
Breed, Colin | Foster, Michael (Worcester) |
Brennan, Kevin | Foster, Michael Jabez (Hastings & Rye) |
Brooke, Mrs Annette L. | |
Brown, rh Nicholas (Newcastle E Wallsend) | Gardiner, Barry |
George, Andrew (St. Ives) | |
Bruce, Malcolm | Gerrard, Neil |
Bryant, Chris | |
Burgon, Colin | Gibson, Dr. Ian |
Burnham, Andy | Gilroy, Linda |
Burstow, Paul | Green, Matthew (Ludlow) |
Byers, rh Stephen | Griffiths, Jane (Reading E) |
Cable, Dr. Vincent | Griffiths, Nigel (Edinburgh S) |
Caborn, rh Richard | Grogan, John |
Cairns, David | Hain, rh Peter |
Calton, Mrs Patsy | Hall, Mike (Weaver Vale) |
Hall, Patrick (Bedford) | |
Campbell, Mrs Anne (C'bridge) | Hamilton, David (Midlothian) |
Campbell, rh Menzies (NE Fife) | |
Caplin, Ivor | Hancock, Mike |
Carmichael, Alistair | Hanson, David |
Cawsey, Ian (Brigg) | Harris, Dr. Evan (Oxford W & Abingdon) |
Challen, Colin | |
Chapman, Ben (Wirral S) | Harris, Tom (Glasgow Cathcart) |
Clark, Mrs Helen (Peterborough) | Havard, Dai (Merthyr Tydfil & Rhymney) |
Clark, Dr. Lynda (Edinburgh Pentlands) | |
Heath, David | |
Clark, Paul (Gillingham) | Henderson, Ivan (Harwich) |
Clarke, rh Tom (Coatbridge & Chryston) | Hepburn, Stephen |
Heppell, John | |
Cohen, Harry | Heyes, David |
Corbyn, Jeremy | Hill, Keith (Streatham) |
Cousins, Jim | Hodge, Margaret |
Cox, Tom (Tooting) | Hood, Jimmy (Clydesdale) |
Cryer, Ann (Keighley) | Hope, Phil (Corby) |
Cunningham, rh Dr. Jack (Copeland) | Hopkins, Kelvin |
Hoyle, Lindsay |
Hughes, Beverley (Stretford & Urmston) | Quinn, Lawrie |
Rammell, Bill | |
Hughes, Kevin (Doncaster N) | Rapson, Syd (Portsmouth N) |
Humble, Mrs Joan | Raynsford, rh Nick |
Hurst, Alan (Braintree) | Reed, Andy (Loughborough) |
Hutton, rh John | Reid, rh Dr. John (Hamilton N & Be11shill) |
Iddon, Dr. Brian | |
Illsley, Eric | Rendel, David |
Ingram, rh Adam | Robertson, John (Glasgow Anniesland) |
Irranca-Davies, Huw | |
Jackson, Glenda (Hampstead & Highgate) | Roche, Mrs Barbara |
Rooney, Terry | |
Jamieson, David | Ross, Ernie (Dundee W) |
Jenkins, Brian | Ruane, Chris |
Johnson, Miss Melanie (Welwyn Hatfield) | Ruddock, Joan |
Russell, Bob (Colchester) | |
Jones, Helen (Warrington N) | Ryan, Joan (Enfield N) |
Jowell, rh Tessa | Sanders, Adrian |
Joyce, Eric (Falkirk W) | Savidge, Malcolm |
Kaufman, rh Gerald | Sedgernore, Brian |
Keeble, Ms Sally | Sheerman, Barry |
Khabra, Piara S. | Sheridan, Jim |
Kidney, David | Simon, Siôn (B'ham Erdington) |
King, Ms Oona (Bethnal Green & Bow) | Simpson, Alan (Nottingham S) |
Skinner Dennis | |
Knight, Jim (S Dorset) | Smith, Geraldine (Morecambe & Lunesdale) |
Kumar, Dr. Ashok | |
Ladyman, Dr. Stephen | Smith, Jacqui (Redditch) |
Lammy, David | Smith, Sir Robert (W Ab'dns & Kincardine) |
Lazarowicz, Mark | |
Levitt, Tom (High Peak) | Soley, Clive |
Linton, Martin | Spellar, rh John |
Lloyd, Tony (Manchester C) | Squire, Rachel |
Love, Andrew | Starkey, Dr. Phyllis |
McAvoy, Thomas | Steinberg, Gerry |
McCabe, Stephen | Stewart. David (Inverness E & Lochaber) |
McDonagh, Siobhain | |
McDonnell, John | Stoate, Dr. Howard |
McFall, John | Stringer, Graham |
McIsaac, Shona | Sutcliffe, Gerry |
McKechin, Ann | Taylor, rh Ann (Dewsbury) |
McNulty, Tony | Taylor, David (NW Leics) |
McWalter, Tony | Taylor, Matthew (Truro) |
Mahmood, Khalid | Thomas, Gareth (Clwyd W) |
Mahon, Mrs Alice | Tipping Paddy |
Mallaber, Judy | Todd, Mark (S Derbyshire) |
Mann, John (Bassetlaw) | Trickett, Jon |
Marsden, Gordon (Blackpool S) | Turner, Neil (Wigan) |
Marshall, David (Glasgow Shettleston) | Twigg, Derek (Halton) |
Twigg, Stephen (Enfield) | |
Marshall, Jim (Leicester S) | Vaz, Keith (Leicester E) |
Marshall-Andrews, Robert | Vis, Dr. Rudi |
Meacher, rh Michael | Walley, Ms Joan |
Merron, Gillian | Ward, Claire |
Michael, rh Alun | Wareing, Robert N. |
Miliband, David | Watson Tom (W Bromwich E) |
Miller, Andrew | Watts, David |
Moffatt, Laura | Webb, Steve (Northavon) |
Moonie, Dr. Lewis | Whitehead, Dr. Alan |
Moran, Margaret | Williams, rh Alan (Swansea W) |
Morley, Elliot | Williams, Roger (Brecon) |
Murphy, Denis (Wansbeck) | Willis, Phil |
Norris, Dan (Wansdyke) | Winnick, David |
Oaten, Mark (Winchester) | Winterton, Ms Rosie (Doncaster C) |
Organ, Diana | |
Osborne, Sandra (Ayr) | Woodward, Shaun |
Palmer, Dr. Nick | Wright, Anthony D. (Gt Yarmouth) |
Perham, Linda | |
Pickthall, Colin | Wright, David (Telford) |
Pike, Peter (Burnley) | Wyatt, Derek |
Plaskitt, James | |
Pollard, Kerry | Tellers for the Ayes:
|
Pound, Stephen | Vernon Coaker and
|
Prosser, Gwyn | Ms Bridget Prentice
|
NOES
| |
Ainsworth, Peter (E Surrey) | Lansley, Andrew |
Ancram, rh Michael | Lewis, Dr. Julian (New Forest E) |
Atkinson, David (Bour'mth E) | Liddell-Grainger, Ian |
Atkinson, Peter (Hexham) | Lidington, David |
Bacon, Richard | Loughton, Tim |
Baldry, Tony | Luff, Peter (M-Worcs) |
Baron, John (Billericay) | McIntosh, Miss Anne |
Bellingham, Henry | McLoughlin, Patrick |
Bercow, John | Malins, Humfrey |
Beresford, Sir Paul | Mawhinney, rh Sir Brian |
Blunt, Crispin | Mercer, Patrick |
Brady, Graham | Mitchell, Andrew (Sutton Coldfield) |
Brazier, Julian | |
Browning, Mrs Angela | Moss, Malcolm |
Burns, Simon | O'Brien, Stephen (Eddisbury) |
Burt, Alistair | Osborne, George (Tatton) |
Cameron, David | Page, Richard |
Chapman, Sir Sydney (Chipping Barnet) | Paice, James |
Pickles, Eric | |
Chope, Christopher | Prisk, Mark (Hertford) |
Collins, Tim | Redwood, rh John |
Cormack, Sir Patrick | Robathan, Andrew |
Curry, rh David | Robertson, Laurence (Tewk'b'ry) |
Davis, rh David (Haltemprice & Howden) | Roe, Mrs Marion |
Rosindell, Andrew | |
Djanogly, Jonathan | Shephard, rh Mrs Gillian |
Evans, Nigel | Simmonds, Mark |
Fabricant, Michael | Soames, Nicholas |
Fallon, Michael | Spink, Bob (Castle Point) |
Field, Mark (Cities of London & Westminster) | Spring, Richard |
Steen, Anthony | |
Flight, Howard | Syms, Robert |
Flook, Adrian | Tapsell, Sir Peter |
Forth, rh Eric | Taylor, John (Solihull) |
Fox, Dr. Liam | Taylor, Sir Teddy |
Gale, Roger (N Thanet) | Thomas, Simon (Ceredigion) |
Garnier, Edward | Turner, Andrew (Isle of Wight) |
Gillan, Mrs Cheryl | Tyrie, Andrew |
Goodman, Paul | Viggers, Peter |
Gray, James (N Wilts) | Walter, Robert |
Grayling, Chris | Waterson, Nigel |
Green, Damian (Ashford) | Watkinson, Angela |
Greenway, John | Whittingdale, John |
Hague, rh William | Wiggin, Bill |
Hammond, Philip | Wilkinson, John |
Hawkins, Nick | Willetts, David |
Hoban, Mark (Fareham) | Wilshire, David |
Horam, John (Orpington) | Wishart, Pete |
Jack, rh Michael | Young, rh Sir George |
Jenkin, Bernard | |
Key, Robert (Salisbury) | Tellers for the Noes:
|
Knight, rh Greg (E Yorkshire) | Mr. Mark Francois and
|
Lait, Mrs Jacqui | Mr. John Randall
|
Question accordingly agreed to.
Local Government Bill (Programme) (No 4)
Motion made, and Question put forthwith, pursuant to Orders (28 June 2001 and 29 October 2002).
That the following provisions shall apply to the Local Government Bill for the purpose of supplementing the Orders of 7th January 2003, 28th January 2003 and 25th February 2003:
Consideration Of Lords Amendments
1. Proceedings on consideration of Lords Amendments shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption at this day's sitting.
2. Those proceedings shall be taken in the order shown in the first column of the following Table, and each part of those proceedings shall (so far as not previously concluded) be brought to a conclusion at the time shown in the second column.
TABLE | |
Lords amendments
| Time for conclusion of proceedings
|
Nos. 3, 6, 19 and 20 | 2½ hours after the commencement of proceedings on the Motion for this Order |
Nos. 1 and 2, 4 and 5, 7 to 18 and 21 to 56 | The moment of interruption |
Subsequent Stages
3. Any further Message from the Lords may be considered forthwith without any Question put.
4. The proceedings on any further Message from the Lords shall (so far as not previously concluded) be brought to a conclusion one hour after their commencement.—[ Mr. Raynsford.]
The House divided: Ayes 237, Noes 140
Division No. 309]
| [3:46 pm
|
AYES
| |
Abbott, Ms Diane | Cunningham, rh Dr. Jack (Copeland) |
Ainger, Nick | |
Ainsworth, Bob (Cov'try NE) | Cunningham, Jim (Coventry S) |
Allan, Richard | Dalyell, Tam |
Allen, Graham | Davey, Edward (Kingston) |
Armstrong, rh Ms Hilary | Davey, Valerie (Bristol W) |
Atherton, Ms Candy | Davies, Geraint (Croydon C) |
Atkins, Charlotte | Dean, Mrs Janet |
Austin, John | Denham, rh John |
Baird, Vera | Dhanda, Parmjit |
Banks, Tony | Dismore, Andrew |
Barnes, Harry | Dobbin, Jim (Heywood) |
Barron, rh Kevin | Doran, Frank |
Bayley, Hugh | Drew, David (Stroud) |
Beard, Nigel | Eagle, Angela (Wallasey) |
Bell, Stuart | Eagle, Maria (L'pool Garston) |
Berry, Roger | Edwards, Huw |
Best, Harold | Ellman, Mrs Louise |
Blunkett, rh David | Etherington, Bill |
Borrow, David | Farrelly, Paul |
Bradley, rh Keith (Withington) | Field, rh Frank (Birkenhead) |
Bradley, Peter (The Wrekin) | Flint, Caroline |
Bradshaw, Ben | Flynn, Paul (Newport W) |
Breed, Colin | Foster, rh Derek |
Brennan, Kevin | Foster, Don (Bath) |
Brooke, Mrs Annette L. | Foster, Michael (Worcester) |
Brown, rh Nicholas (Newcastle E Wallsend) | Foster, Michael Jabez (Hastings & Rye) |
Bruce, Malcolm | Gardiner, Barry |
Bryant, Chris | George, Andrew (St. Ives) |
Burgon, Colin | Gerrard, Neil |
Burnham, Andy | Gibson, Dr. Ian |
Burstow, Paul | Gilroy, Linda |
Byers, rh Stephen | Green, Matthew (Ludlow) |
Cable, Dr. Vincent | Griffiths, Jane (Reading E) |
Caborn, rh Richard | Griffiths, Nigel (Edinburgh S) |
Cairns, David | Grogan, John |
Calton, Mrs Patsy | Hain, rh Peter |
Campbell, Mrs Anne (C'bridge) | Hall, Mike (Weaver Vale) |
Campbell, rh Menzies (NE Fife) | Hall, Patrick (Bedford) |
Caplin, Ivor | Hamilton, David (Midlothian) |
Carmichael, Alistair | Hancock, Mike |
Cawsey, Ian (Brigg) | Hanson, David |
Challen, Colin | Harris, Dr. Evan (Oxford W & Abingdon) |
Chapman, Ben (Wirral S) | |
Clark, Mrs Helen (Peterborough) | Harris, Tom (Glasgow Cathcart) |
Clark, Dr. Lynda (Edinburgh Pentlands) | Havard, Dai (Merthyr Tydfil & Rhymney) |
Clark, Paul (Gillingham) | Heath, David |
Clarke, rh Tom (Coatbridge & Chryston) | Henderson, Ivan (Harwich) |
Hepburn, Stephen | |
Cohen, Harry | Heppell, John |
Corbyn, Jeremy | Heyes, David |
Cousins, Jim | Hill, Keith (Streatham) |
Cox, Tom (Tooting) | Hodge, Margaret |
Cryer, Ann (Keighley) | Hood, Jimmy (Clydesdale) |
Hope, Phil (Corby) | Prosser, Gwyn |
Hopkins, Kelvin | Quinn, Lawrie |
Hoyle, Lindsay | Rammell, Bill |
Hughes, Beverley (Stretford & Urmston) | Rapson, Syd (Portsmouth N) |
Raynsford, rh Nick | |
Hughes, Kevin (Doncaster N) | Reed, Andy (Loughborough) |
Humble, Mrs Joan | Reid, rh Dr. John (Hamilton N & Bellshill) |
Hurst, Alan (Braintree) | |
Hutton, rh John | Rendel, David |
Iddon, Dr. Brian | Robertson, John (Glasgow Anniesland) |
Illsley, Eric | |
Ingram, rh Adam | Roche, Mrs Barbara |
Irranca-Davies, Huw | Rooney, Terry |
Jackson, Glenda (Hampstead & Highgate) | Ross, Ernie (Dundee W) |
Ruane, Chris | |
Jamieson, David | Ruddock, Joan |
Jenkins, Brian | Russell, Bob (Colchester) |
Johnson, Miss Melanie (Welwyn Hatfield) | Ryan, Joan (Enfield N) |
Sanders, Adrian | |
Jones, Helen (Warrington N) | Savidge, Malcolm |
Jowell, rh Tessa | Sedgemore, Brian |
Joyce, Eric (Falkirk W) | Sheerman, Barry |
Kaufman, rh Gerald | Sheridan, Jim |
Keeble, Ms Sally | Simon, Siôn (B ham Erdington) |
Khabra, Piara S. | Simpson, Alan (Nottingham S) |
Kidney, David | Skinner, Dennis |
King, Ms Oona (Bethnal Green & Bow) | Smith, Geraldine (Morecambe & Lunesdale) |
Knight, Jim (S Dorset) | Smith, Jacqui (Redditch) |
Kumar, Dr. Ashok | Smith, Sir Robert (W Ab'd'ns & Kincardine) |
Ladyman, Dr. Stephen | |
Lammy, David | Soley, Clive |
Lazarowicz, Mark | Spellar, rh John |
Levitt, Tom (High Peak) | Squire, Rachel |
Linton, Martin | Starkey, Dr. Phyllis |
Lloyd, Tony (Manchester C) | Steinberg, Gerry |
Love, Andrew | Stewart, David (Inverness E & Lochaber) |
McAvoy, Thomas | |
McCabe, Stephen | Stoate, Dr. Howard |
McDonagh, Siobhain | Stringer, Graham |
McDonnell, John | Sutcliffe, Gerry |
McFall, John | Taylor, rh Ann (Dewsbury) |
McIsaac, Shona | Taylor, David (NW Leics) |
McKechin, Ann | Taylor, Matthew (Truro) |
McNulty, Tony | |
McWalter, Tony | Thomas, Gareth (Clwyd W) |
Mahmood, Khalid | Tipping, Paddy |
Mahon, Mrs Alice | Todd, Mark (S Derbyshire) |
Mallaber, Judy | Trickett, Jon |
Mann, John (Bassetlaw) | Turner, Neil (Wigan) |
Marsden, Gordon (Blackpool S) | Twigg, Derek (Halton) |
Marshall, David (Glasgow Shettleston) | Twigg, Stephen (Enfield) |
Vaz, Keith (Leicester E) | |
Marshall, Jim (Leicester S) | Vis, Dr. Rudi |
Marshall-Andrews, Robert | Walley, Ms Joan |
Meacher, rh Michael | Ward, Claire |
Marron, Gillian | Wareing, Robert N. |
Michael rh Alun | Watson, Tom (W Bromwich E) |
Miliband, David | Watts, David |
Miller, Andrew | Webb, Steve (Northavon) |
Moffatt, Laura | Whitehead, Dr. Alan |
Moonie, Dr. Lewis | Williams, rh Alan (Swansea W) |
Moran, Margaret | Williams, Roger (Brecon) |
Morley, Elliot | Willis, Phil |
Murphy, Denis (Wansbeck) | Winnick, David |
Norris, Dan (Wansdyke) | Winterton, Ms Rosie (Doncaster C) |
Oaten, Mark (Winchester) | |
Organ, Diana | Woodward, Shaun |
Osborne, Sandra (Ayr) | Wright, Anthony D. (Gt Yarmouth) |
Palmer, Dr. Nick | |
Perham, Linda | Wright, David (Telford) |
Pickthall, Colin | Wyatt, Derek |
Pike, Peter (Burnley) | |
Plaskitt, James | Tellers for the Ayes:
|
Pollard, Kerry | Vernon Coaker and
|
Pound, Stephen | Ms Bridget Prentice
|
NOES
| |
Ainsworth, Peter (E Surrey) | Lansley, Andrew |
Ancram, rh Michael | Lewis, Dr. Julian (New Forest E) |
Atkinson, David (Bour'mth E) | Liddell-Grainger, Ian |
Atkinson, Peter (Hexham) | Lidington, David |
Bacon, Richard | Loughton, Tim |
Baldry, Tony | Luff, Peter (M-Worcs) |
Baron, John (Billericay) | McIntoth, Miss Anne |
Bellingham, Henry | McLoughlin, Patrick |
Bercow, John | Malins, Humfrey |
Beresford, Sir Paul | Mawhinney, rh Sir Brian |
Blunt, Crispin | Mercer, Patrick |
Brady, Graham | Mitchell, Andrew (Sutton Coldfield) |
Brazier, Julian | |
Browning, Mrs Angela | Moss, Malcolm |
Burns, Simon | O'Brien, Stephen (Eddisbury) |
Burt, Alistair | Osborne George (Tatton) |
Cameron, David | Page, Richard |
Chapman, Sir Sydney (Chipping Barnet) | Paice, James |
Pickles, Eric | |
Chope, Christopher | Prisk, Mark (Hertford) |
Collins, Tim | Redwood, rh John |
Cormack, Sir Patrick | Robathan, Andrew |
Curry, rh David | Robertson, Laurence (Tewk'b'ry) |
Davis, rh David (Haltemprice & Howden) | Roe, Mrs Marion |
Rosindell, Andrew | |
Djanogly, Jonathan | Shephard, rh Mrs Gillian |
Evans, Nigel | Simmonds, Mark |
Fabricant, Michael | Soames, Nicholas |
Fallon, Michael | Spink, Bob (Castle Point) |
Field, Mark (Cities of London & Westminster) | Spring, Richard |
Steen, Anthony | |
Flight, Howard | Syms, Robert |
Flook, Adrian | Tapsell, Sir Peter |
Forth, rh Eric | Taylor, John (Solihull) |
Fox, Dr. Liam | Taylor, Sir Teddy |
Gale, Roger (N Thanet) | Thomas, Simon (Ceredigion) |
Garnier, Edward | Turner, Andrew (Isle of Wight) |
Gillan, Mrs Cheryl | Tyrie, Andrew |
Goodman, Paul | Viggers. Peter |
Gray, James (N Wilts) | Walter, Robert |
Grayling, Chris | Waterson, Nigel |
Green, Damian (Ashford) | Watkinson, Angela |
Greenway, John | Whittingdale, John |
Hague, rh William | Wiggin, Bill |
Hammond, Philip | Wilkinson, John |
Hawkins, Nick | Willetts David |
Hoban, Mark (Fareham) | Wilshire, David |
Horam, John (Orpington) | Wishart, Pete |
Jack, rh Michael | Young, rh Sir George |
Jenkin, Bernard | |
Key, Robert (Salisbury) | Tellers for the Noes:
|
Knight, rh Greg (E Yorkshire) | Mr. Mark Francois and
|
Lait, Mrs Jacqui | Mr. John Randall
|
Question accordingly agreed to.
Orders Of The Day
Local Government Bill
Lords amendments considered. [Queen's consent, on behalf of the Crown, signified.]
I draw the House's attention to the fact that privilege is involved in Lords amendments Nos. 3, 6, 18 to 22, 27, 47 to 49, 53 and 54, which are to be considered today. If the House agrees to these Lords amendments, I shall ensure that the appropriate entry is made in the Journal.
Clause 11
Use Of Capital Receipts
Lords amendment No. 3
3.58 pm
I beg to move, That this House disagrees with the Lords in the said amendment.
We are considering a vital issue. Agreement with the amendment would undermine one of the fundamental principles of housing finance, which allows the redistribution of housing capital receipts to the areas of greatest need. Accepting the amendment would deprive housing authorities in areas of high housing stress of the resources that they need to fulfil pressing demands for housing. Simply letting housing authorities keep their housing capital receipts, irrespective of need and of how they intended to apply them, would be an unfair and irresponsible way of allocating limited resources. We have always taken the view that the proceeds from the sale of council housing should be used to help the areas in which housing need is greatest. That is the purpose of redistribution, and was indeed the principle underlying the legislation introduced by the previous Conservative Government and operated since 1990. The Bill repeals the part of that legislation governing the current—redistribution system—the set-aside mechanism. The drawback to set-aside, as we have said many times before, is that it does not apply to all authorities. Redistribution must apply equally to all, if it is to be fair to all. This is the anomaly in the present system that our pooling proposals address. It is simply wrong that some authorities should have more resources than others, regardless of need, simply because they happen to be rich in right-to-buy receipts or debt-free. I stress that we are not talking about funds generated by good financial management or good planning, but those generated simply because tenants have decided to buy their own house in areas where house prices are buoyant. The local authority cannot determine or manage such sales and, contrary to what was said in another place, they cannot claim any credit for them.I am grateful to the right hon. Gentleman for giving way. Before thirsting to reduce local authority autonomy in such a way as to allow him to pursue his redistributionist agenda, it is incumbent on him first to consider the efficacy or otherwise of existing policy. In that context, will he oblige the House by telling us what assessment he has made of the effect of the change in the rules on the use of capital receipts from the sale of council houses in the last Parliament on the size of interest repayments on local authority debt?
Approximately £1.2 billion received from the sale of council houses is currently brought within the overall framework, which allows the pooling to take place through the set-aside mechanism. The problem with that mechanism is that it does not apply to those authorities that are debt-free; that is just the nature of the mechanics involved. The principle of redistribution, which was argued strongly by the hon. Gentleman's own party when it was in government, and part of the approach that it adopted in the 1990 legislation, was to ensure that the receipts would be distributed to meet housing need rather than simply lying arbitrarily where they arose because of the vagaries of the housing market or the whims of tenants in particular areas.
rose—
rose—
I give way to the hon. Member for Kingston and Surbiton (Mr. Davey).
In the Minister's opening remarks, he tried to suggest that all the councils that are debt-free were just lucky, because they were in areas where house prices were high and had received a large windfall from right-to-buy receipts. Surely some of those councils have managed their finances prudently, however, and worked hard to become debt-free. In some cases, they may have taken painful decisions to reach that point. Should they not now be allowed the chance to benefit from the freedoms that they have won after going through the pain of putting their finances in order?
Lots of other authorities have worked extremely hard to run their finances in the most efficient way possible, but, because they happen to be in areas with low house values, where capital receipts do not generate the same amount of money, they have not been able to reach the same position as those lucky enough to be located predominantly in the south-east. Frankly, it is curious for the hon. Gentleman representing the Liberal Democrats to be advocating a policy that would have a strongly redistributive effect, which favoured the affluent areas, rather than the areas of greatest need. That would be the effect of the policy that he is advocating. I can understand why the Tory party would pursue that line, but it is strange, to say the least, that the Liberal Democrats should do so.
The Minister quoted a figure to my hon. Friend the Member for Buckingham (Mr. Bercow). Will he confirm for the record that the sum involved in relation to debt-free authorities—the only ones that will be directly affected in cash terms by the measure—is about —120 million, and not £800 million, £1.8 billion or any other exaggerated figure?
The figure that I quoted was the total sum that we estimate will be brought within the pooling arrangements. That is similar to the set-aside. The figure for debt-free authorities is £120 million, as the hon. Gentleman rightly said. That is a significant sum, and can contribute substantially to meeting housing needs. I remind him of a little debate that we had in Committee. He will recall that I flourished a Liberal Democrat "Focus" leaflet. I do not usually do that.
Where is it?
I am afraid that I put it in the bin. I am sure that the hon. Gentleman will agree that, on the whole, that was the right course of action. The Liberal Democrats in Mole Valley argued that it was scandalous that Mole Valley council had received substantial capital receipts—probably not through any great effort of its own, but because housing in the area has a high value—but was not proposing to use those receipts to meet housing need. Instead, it intended to spend the money on other things. The Liberal Democrats in Mole Valley said that that was monstrous and wrong.
It is typical of the Liberal Democrats to say one thing to one group of people and something else to another. In Mole Valley they said it was monstrous and wrong not to spend the money on housing, but when they are confronted with a Bill that ensures that capital receipts are used for housing where the need is greatest, they oppose it, because they want to say something different to a different audience.I thought that we had educated the Minister on this point in Committee. We said that it was about local democracy. The Liberal Democrats in Mole Valley were right to fight elections in that constituency on the proposition that housing receipts raised locally should be spent locally on affordable housing. That was a fair point, and it is consistent with the Liberal Democrats saying that the council should be allowed to do that. The Government want to take away the right of local authorities to spend receipts in their local area. The Minister is the one who is inconsistent. He is going against his policy of so-called new localism.
That was a pretty feeble effort. In Mole Valley, the Liberal Democrats campaigned on the simple principle that money from housing receipts should be used for housing. As soon as the Liberal Democrats have a chance to give effect to that principle in the House, they take a different view. It is the same old story.
Does my right hon. Friend agree that the Liberal Democrats have the opportunity to set the record straight? With respect to national policy, will my right hon. Friend confirm that the effect on the borough of Brent of this Liberal Democrat and Tory sponsored amendment would be to take away £2.1 million from the people of Brent? What the Liberal Democrats are saying on the doorsteps about investment in local housing would drive a coach and horses through what Brent council could do, unless it was prepared, as a matter of national policy, to say that Brent people should pay higher taxes to receive the same level of service, because the Bill would put £2.1 million on to its budget.
My hon. Friend has hit the nail on the head. In Brent, the Liberal Democrats no doubt claim that they would do many things to help Brent, but at the same time they actively supported an amendment in the House just last week that would have exactly the effect that my hon. Friend describes. It would take £2.1 million away from the London borough of Brent that could and should be used to meet housing needs in that borough, which has enormous pressures.
The Minister should be careful about what he says. We cannot take away something that is not there. Language needs to be used more carefully. Is he saying that Brent is an area of low house prices, which is why it is where it is? His argument was that places in London and the south-east would be the beneficiaries of the Opposition's amendment. Is he suggesting that house prices in Brent are very low?
I am afraid that the hon. Gentleman does not understand the issue. There is a relationship between house prices and house values, and that is one of the important elements, but there is also housing need. Brent is an area of enormous housing need. The scale of the capital receipts that the borough receives is not proportionate to the scale of housing need in that area. Brent is one of the boroughs that will gain substantially from our proposal for a proper redistributive system that applies universally.
It should be remembered that the redistribution mechanism already applies. It applies to all authorities except those that are debt-free. The Liberal Democrats are essentially saying that they want to help very affluent, mainly Tory authorities in the south-east at the expense of areas such as Brent and a number of others. That is an extraordinary comment on a party that tries to claim that it has some pretensions to a concern for social justice.The Minister will recall that in Committee we offered an opportunity to ensure that right-to-buy receipts were recycled into housing in the local authorities involved, and he rejected that opportunity.
Does the Minister at least accept that at a time when one of the most pressing housing issues facing the Government and authorities in the south-east is affordable housing for key public-sector workers, there is a close correlation between high house prices and the need for such housing?Indeed. That is exactly why we have increased investment by two and a half times the amount we inherited, and why we have been concentrating on the provision of new housing in areas of stress—particularly in areas where that can be achieved with good use of brownfield sites, such as the Thames gateway—while also investing in improving housing stock in areas of less demand, where serious problems are caused by property in poor condition and the fact that people are living in unsatisfactory houses. We have a responsibility to do both those things.
We are certainly keen to expand the housing supply in areas of need, and that is part of the programme. Our objective, however, is to be fair in the allocation, not arbitrary. The problem with the hon. Gentleman's position and that of his party is that the allocation system that the Conservatives supported—although they did not support it in 1990—would arbitrarily give huge buckshee benefits to certain areas simply because they happened to be receipt-rich and with relatively low needs, while denying other areas that were receipt-poor or whose needs were too high to be met from the receipts that they had.Is the Minister suggesting that, having sequestered my local authority's right-to-buy receipts, he expects nurses, policeman and school teachers who are needed in Surrey to commute daily from the Thames gateway around the M25? Is that his grand strategy for the future of the south-east?
No, it is not. As the hon. Gentleman will recall, I used the Thames gateway as an example to highlight the importance of using brownfield sites: but of course we are looking at brownfield sites elsewhere. What I am sure the hon. Gentleman does not want is indiscriminate building on greenfield sites in his area. That would be an entirely undesirable policy—a policy that was, as it happens, supported by the hon. Gentleman's party when it was in government: it let rip with development by private developers throughout the south-east, and particularly in the Thames valley.
Will my right hon. Friend confirm that one of the areas that would be disadvantaged by this measure is Milton Keynes? Will he join me in urging Milton Keynes council, which is of course controlled by the Liberal Democrats, to devote some of its efforts to educating Liberal Democrat Front Benchers here, to ensure that the party is not saying one thing in Milton Keynes and another in Westminster?
My hon. Friend is absolutely right. Milton Keynes is another of the areas that stand to lose if the amendment supported by the Liberal Democrats is passed. Of course, it is not the only one; a number of other areas stand to lose. Liverpool stands to lose substantially, as do Sutton and Basildon.
I can understand the Tories' supporting the amendment, as it will generally favour their affluent south-east strongholds, but I fail to understand why the Liberal Democrats want to harm so many areas that they control. It is either the result of a sudden burst of masochism, or an example of their being highly confused and not quite knowing what they are doing. Because they are saying one thing to one group of people and something else to another group, they forget the plot and vote for something that will have catastrophic consequences for many Liberal Democrat authorities—including Milton Keynes.
4.15 pm
It is always a particular pleasure to joust with the Minister but the endless tergiversations and chameleon-like behaviour of the Liberal Democrats could readily absorb all the time available for debate today, and it does not seem very profitable for us to allow that to happen. The question that I would like answered is the question that I did ask, not that which I did not. Can the right hon. Gentleman simply tell me on a non-partisan basis what assessment he has made of the effect of the change made in the previous Parliament on policy towards the use of capital receipts from the sale of council houses on the level of interest repayments on local authority debt?
I cannot because the hon. Gentleman is asking some rather odd questions. There was no change of policy in the previous Parliament on the application of right-to-buy receipts. We have constantly said that it is right that right- to-buy receipts should be made available for and used for housing need to the extent that we operate a redistributive system, a system that, as I have said, we inherited from the previous Government. That system has remained in place since 1990. It is now being changed because of this Bill, but there has been no other change in policy.
There may have been changes in policy on some of the detailed points about the level of discount that will apply. Of course, there have been significant changes in interest rates because of the Government's prudent management of the economy, which results in a substantially better position in terms of all those people paying interest. That is to everyone's advantage. All those matters can be taken into account by economists, who will no doubt come up with a sophisticated answer to the hon. Gentleman's question, but there is no policy change along the lines that he has proposed.Before we move on, can the Minister confirm who he thinks controls Basildon council?
I was referring to a number of authorities. There are many areas that are affected, including some Tory-controlled areas. Of course, the Tories are being a bit foolish in favouring the interests of their south-east heartlands at the expense of some of their other councils, which happen to have rather greater housing needs. No doubt the voice of Essex will be heard in due course, telling us that we should be fairer to Essex and insisting on the redistribution of capital receipts to favour Basildon. That is certainly a policy I would be happy—
rose—
I must make progress.
The amendment would remove the proposed replacement for set-aside and end redistribution. We would, therefore, no longer be able to recycle housing capital receipts fairly. The alternative to a redistribution system is higher taxes, less investment or cuts in other programmes. Affordable housing for key workers, decent homes, market renewal in low-demand areas would all be put at risk. Without redistribution, the majority of local authorities—those with debt, with lower capital receipts and with greater housing investment need—will lose out. That would be irresponsible and indefensible. Without pooling, we would probably have to continue to operate a mechanism based on the principles underlying the current system. That could be only a partial solution and would lack the transparency and simplicity of pooling. Debt-free housing authorities rich in right-to-buy receipts would retain the benefit of their housing capital receipts regardless of housing need and be able to use receipts for whatever purpose they saw fit. I mentioned earlier the interesting example of Mole Valley being a classic illustration of that. Agreeing to the Lords amendment would perpetuate the anomaly inherent in the current system and disadvantage most of the nearly 260 local authorities with housing stock. I have quoted a number of the authorities that are affected. Let me repeat that there are currently around 40 debt-free authorities with housing stock in England. Under our proposals, pooling will apply to a proportion of their housing capital receipts, not all of it, and it will not apply to other capital receipts. That does not mean that those authorities will have no resources to use. On the contrary, they will have access to all their other receipts and indeed to 25 per cent. of their housing capital receipts, and they will have the additional allocations that come through the new framework for distributing funding. Those depend on decisions by the regional housing boards, which will make recommendations to Ministers in a month or so, so I am not able to anticipate the precise allocations at this stage, but additional sums will be allocated in relation to need and some of those debt-free authorities will certainly be likely to qualify to some extent under those rules.The Minister has said that authorities will continue to have access to 25 per cent. of their right to buy receipts. For clarity—and for those who have not gone through the tortuous Committee process—will the Minister confirm that he is quoting the draft regulation that he has published, but that the Bill allows the Secretary of State to take up to 100 per cent. of receipts?
We specify amounts by regulation rather than putting them in the Bill; therefore, there is that power. But, on a number of occasions, I have made it clear that our policy intention is not to change the percentage from the 75 per cent. that currently applies to the great majority of authorities in the country. It is an anomaly that a relatively small number of debt-free authorities get preferential treatment and it would be quite wrong for that to be perpetuated. That would be the effect of the amendment, which is why we ask the House to reject the Lords amendment and to restore the Bill's provisions as originally presented and discussed in Committee.
The Minister is talking as if it were counter-intuitive that debt-free authorities should be allowed to keep their capital receipts. To most people, it would be intuitive that somebody in debt should use their capital receipts to offset their debt and that somebody not in debt should be free to use their capital receipts as they wished. Surely that is how the great majority of people would see it.
I disagree profoundly. In my view, it is counter-intuitive to argue that one relatively small group of authorities should be given preferential treatment and should not be required in any way to make use of capital receipts for housing purposes when all other authorities are required to do so. That is the anomaly that we are putting right.
I am glad that the hon. Gentleman raised the question of incentives for prudent financial management; we are keen on them. The new borrowing regime in part 1 will help by enabling authorities to take a broader view of their finances and to borrow without having to get Government approval at any point. They can take regular decisions as to the advantage of borrowing on a particular project or financing it by other means without their decisions being distorted by an arbitrary factor; that is, if they remain debt free, they get a particular benefit. If they are able to organise their finances while looking at the respective merits of financing and new investment, they can take sensible decisions without being precluded from considering the borrowing option.If it were the Minister's intention that debt-free authorities with housing stock should spend their money on housing, why did he not make that the law instead of taking 75 per cent. away from an authority such as Bridgnorth in my area, which is debt free and has its housing stock? If Bridgnorth undertook large-scale voluntary transfer, 75 per cent. of receipts would be taken away and spent in other local authorities elsewhere. That cannot be right.
Once again, the hon. Gentleman is very confused. He and his party believe that it is right to spend money on housing; we wholly agree. It is also right to ensure that allocations should reflect the needs of different areas. If the hon. Gentleman is arguing that the right way is to leave the receipts where they lie, irrespective of need, inevitably that will disadvantage substantial numbers of areas with high needs and low receipts. If he is arguing that, I wish him luck; the people of Liverpool will have an extremely jaundiced view about the Liberal Democrat proposal to take £1.5 million away from that city and from many other areas that would be badly affected by the arrangements that his party has suggested in the Lords.
Liverpool, of course, has a declining population in comparison with many areas of the south-east. However, is not the process that the Minister is introducing analogous to saying to someone who has paid off their mortgage that they must now hand some of their money to others to help them pay off their mortgages?
No, it is analogous to an arrangement in which someone has provided the finance for an asset. All these houses were built with very substantial Government subsidy—in many cases, meeting the full costs—and national Government have a right to have an interest on the disposal of that asset. That would be regarded as an absolutely normal principle in any commercial operation, or, indeed, in any public service operation.
Unfortunately, the right hon. Gentleman's position will not do; it is as perverse as his appetite for nationalisation of local decision making seems insatiable. Does he not at least concede that where a local authority has substantial debts and some resources from the sale of council houses, it has a responsibility to use the latter to pay off the former, before benefiting from other councils' legitimately acquired funds?
No, the right position is that every authority—not just those that the hon. Gentleman gives as examples—should have a framework that provides an incentive to repay debt and to act prudently. That is part of the framework that we are introducing, which will be reinforced by the housing revenue account subsidy system. It will enable authorities to repay debt, but it will also recognise that many authorities still have very high housing needs that must be met. It is quite wrong that areas with high needs and few resources from receipts should be penalised, as the amendment passed in another place would do. This is a matter of social justice and fairness, and of ensuring a decent housing policy that looks after the interests of people throughout the country, rather than favouring just a limited number of areas that happen to have the good fortune of substantial receipts.
I want to put the arrangements for receipts in context. The Government are now providing some £2.5 billion in investment each year, to be allocated on the advice of the regional housing boards. Some £2.5 billion in investment—more than two and a half times the amount that went into housing in 1997–98—will address the needs in all authorities, not just in some. Finally, we have recognised the level of concern expressed by debt-free authorities about the introduction of pooling. That is why we offered them the reimbursement of a reducing proportion of the estimated £120 million in capital receipts that they would be required to pool for the next three years: 75 per cent. in 2004–05, 50 per cent. in 2005–06, and 25 per cent. in 2006–07.The Minister said a moment ago that this large sum would be allocated on the advice of the regional housing boards. Will he confirm who advises on the distribution of that sum between the boards? I assume that he was referring to distribution within a region by the boards.
The hon. Gentleman is absolutely right. We seek a national framework to ensure a fair regional distribution overall, and we will then invite regional housing boards to make recommendations within their regions about actual distribution. The decision on the allocation between regions is ours. The regional housing boards make recommendations on decisions within regions, but they are obviously subject to the agreement of my right hon. Friend the Minister for Housing and Planning.
So that we can see what the flow of funds looks like, can the Minister explain the distribution between the eight English regions, by percentage, of those funds, and the distribution by region of the £120 million in capital receipts taken from debt-free authorities? If he does not have the figures in his voluminous folder, perhaps he can get hold of them.
I will happily provide the hon. Gentleman with answers to both those questions by writing to him. But to ensure that he has a full and fair picture, I should remind him of a third element: what the allocations are following the recommendations of the regional housing boards. That information will complete the picture by showing where the money is going to, as well as where it is coming from.
The arrangement that I have described, which gives generous transitional support to enable debt-free authorities to adjust rationally over time, is the right way forward, rather than the removal of these important provisions. I trust that, as when the House previously debated this issue, it will recognise that it is both fair and right to continue with the framework of redistribution of capital receipts, which should apply to all authorities, rather than just to an arbitrary group that happens not to be debt-free. I ask that the House resist this amendment.We are now 45 minutes into the allocated time, and hon. Members will have noticed that the long summer recess has not increased the Government's appetite for the proper scrutiny of their business. We have the three most controversial groups of amendments to consider in a time-limited period of two and a half hours, and the remainder of the evening for—
4.30 pm
So get on with it.
The Under-Secretary says, "Get on with it," but I want to get on with placing on record our perplexity at the allocation of time as between the first three groups of amendments and the remainder. Why the Government could not have allowed us three, four or even five hours to debate the first three groups is completely beyond Conservative Members.
The amendment carried by the Lords was originally moved in Committee by my hon. Friends and me and was supported by the Liberal Democrats—[Interruption]—and I am grateful for that support. I described clause 11 as one of the most important in the Bill. It is also the clause that gives the lie to the Government's intentions. The Minister likes to describe the Bill as conferring new freedoms and flexibilities on local authorities, but, as drafted, the clause gives the Secretary of State the power to force local authorities to hand over to him some or all of their capital receipts, principally gained through right-to-buy sales. It is a central Government tax on local authority capital receipts: however the Minister chooses to dress it up, that is precisely what it is. We are not talking about a tax of 10, 20 or 30 per cent. The Minister has already told us about—and the regulations that he has circulated already show—the intention to tax the receipts at 75 per cent. As I said in an earlier intervention, there is nothing in the Bill to prevent the Secretary of State from increasing the take-up to 100 per cent. The Minister calls that "pooling", but the word does not appear anywhere in the Bill. He says that it is redistribution of capital receipts. Of course all taxation is potentially redistributive, depending on how the Secretary of State chooses to exercise his discretion in distributing the proceeds of this tax on local authorities. Undoubtedly it is a redistribution of power away from local authorities to the Secretary of State. No matter how the Minister tries to dress that up, local authorities, the Local Government Association and Opposition politicians of all parties clearly recognise that the measure goes directly against the thrust of the policy that the Government profess to be implementing through the Bill.In many respects, the hon. Gentleman may be said to be making a powerful case about how moneys should not be redistributed and about local democracy, but he is suggesting that the policy is being implemented by the Government to change the status quo. It is not. In fact, the previous Conservative Administration introduced the policy and decided that that was the way to pool and redistribute moneys
And the 75 per cent.
As my right hon. Friend rightly says, they also introduced the 75 per cent. figure. Will the hon. Gentleman therefore explain to the House why there is so much outrage about what the Government are supposed to be doing, when what they are actually doing in this instance is maintaining the status quo and when it is the hon. Gentleman who wants to change it?
That is an extraordinary argument. The hon. Gentleman should ask the Local Government Association why there is so much outrage. If we take his point literally, he is suggesting that if we accept the Government's proposals, nothing will change. That is simply not true. Local authorities that have been free to spend their capital receipts because they are debt-free will find that 75 per cent. of those receipts will be sequestered by the Secretary of State. They will also potentially be exposed to a 100 per cent. sequestration of their right-to-buy capital receipts. In particular the 34 debt-free authorities, which have been ably represented by the capital receipts group over the course of this long battle, will feel the impact. Other local authorities do not have access to their capital receipts in the same way, precisely because they are indebted. That is another example of the Government's determined assault on well-managed, prudent councils in order to prop up their favoured authorities, including—I have to say—the odd basket case. It is also a frontal assault on the principle of localism.
The Minister's first, and rather lame, argument, which he has already deployed this afternoon, is that local authority housing stock should somehow be seen as a national rather than a local asset. The Minister says that it was originally built, all those years ago, with central Government subsidy. He is of course right, but it was also built with borrowings which, by definition, debt-free authorities have repaid. The stock's value has also been maintained and enhanced by maintenance and improvements carried out at the expense of tenants and council tax payers in many of those local authorities that have been in nil or negative housing subsidy for many years.Will the hon. Gentleman confirm that the authorities would have received Government subsidy both for the repayment of the debt, because that was taken into account, and also—in many cases—for the renovation and improvement of the properties?
Some of the authorities may have done so, but many—as the Minister well knows—have been in negative housing subsidy. The value of the housing stock has been enhanced by the care and maintenance of the local authorities and their tenants over the years. It is those tenants and council tax payers who should benefit from a capital receipt by their local authority.
I shall address this issue in greater detail when I make my speech, but I am sure the hon. Gentleman would agree that we should not let the Government get away with the notion that all those houses were built and maintained solely by central Government subsidy and the taxpayer. Many of them were built under local authority initiative, decades and sometimes centuries ago, as local communities acted to provide homes for the needy in their areas. The Government are trying to rewrite history, and we should not let them get away with it.
The hon. Gentleman is right, but even if the Minister has a point about the original financing of the housing stocks, it is bizarre to try to rewrite the rules 30 or 40 years later by saying what was given as a grant is now subject to a clawback: it is as if the Government were saying, "Sorry. we forgot to tell you at the time."
If that is bizarre, can the hon. Gentleman tell me what was the logic of his party when it introduced this arrangement in 1990?
I do not suggest that authorities that have access to their capital receipt s should be subject to a retrospective clawback, which is what the Minister's argument appears to be.
My noble Friends targeted their amendment precisely. They sought to remove the Secretary of State's power to levy a tax on capital receipts, but would have left in the Bill the power to direct the use of receipts, either for debt reduction or for capital expenditure. We can effectively demolish the Minister's second line of argument, which he deployed extensively in Committee, that many local authorities have not used their capital receipts to the full for housing or urban regeneration. We have some sympathy with that argument. Of course, to restrict those local authorities in the use of their capital receipts would be a restriction on local freedom, but—in the spirit of compromise—we were prepared to meet the Minister halfway on that. We tabled an amendment that would have allowed the Minister to direct that those receipts retained by local authorities should be used for specified purposes—housing investment and urban regeneration—which would have entirely addressed the concern that the Minister outlined. The amendment was also supported by the Liberal Democrats, but the Government rejected it. It is a fact that it is often the areas with high property values, and thus buoyant right-to-buy capital receipts, that have the greatest need for affordable housing. I make no bones about the fact that I am thinking of constituencies such as mine and that of the hon. Member for Kingston and Surbiton (Mr. Davey) in making that statement; we know that we are not in areas that are likely to be favoured by the Secretary of State's largesse when he redistributes the so-called pooled receipts. We know that as a consequence public services in our constituencies will suffer, as our public authorities are unable to employ the teachers, nurses, social workers and police officers whose employment our constituents have a right to expect so that they, too, can enjoy decent public services notwithstanding the high cost of delivering such services in the south-east. If the Minister thinks about it, he will find that there is a strong correlation between buoyant right-to-buy receipts, which, as he correctly says, indicate high housing demand and high house prices, and real need in the present context for the delivery of affordable housing. At present, the most pressing housing issue facing both the country and the Government—who will be judged on whether or not they can improve public service delivery—is to provide affordable housing for people who will work at the kind of nationally negotiated salaries that the public services are able to offer. As the hon. Member for Brent, North (Mr. Gardiner) knows, that is a real problem in the south-east and it is worse outside than inside London, because our public sector workers do not have the benefit of London weighting, yet they often face higher living and housing costs than people who live in the outer London boroughs.I would not like the hon. Gentleman to leave the list of areas that suffer a shortage of affordable housing without mentioning places like Shropshire and Cornwall where shortages exist for different reasons. Shortages in those areas are due to people either buying holiday homes or retiring to the area, yet local salaries are much lower than nationally agreed pay settlements for the public sector. There are good public sector jobs in Shropshire, but houses cost £200,000.
I acknowledge the hon. Gentleman's point. It is important to recognise that the issue is not confined to the south-east of England; there are other areas with buoyant right-to-buy receipts and buoyant housing markets. They all have one thing in common: they suffer from the problem of how to provide affordable housing for public sector workers.
May I respond to the serious comments that the hon. Gentleman makes about house prices in the south-east by reference to my borough of Brent? I understand perfectly that the south-east is a high house price area, but I hope that the hon. Gentleman will reflect on and take to heart the fact that inner-city and outer-London boroughs such as Brent are subject to peculiar pressures in attracting key workers, which are not simply mirrored in house prices. The pressures of working in those environments are a disincentive to workers, so if we are to address the problems of public service delivery and key worker housing, which he rightly highlights, boroughs such as Brent, where key sector workers face complex difficulties, need the sort of investment that has meant £2.1 million to meet Brent's housing needs.
I do not for a minute suggest that there are no problems in boroughs such as Brent. We are all aware of the broader issues of dealing with inner and outer-city deprivation; the list of problems is endless. However, it is wrong for the Minister to characterise areas that will have that money—the 75 per cent.—taken from them as areas that do not have a problem. They are leafy, they have buoyant housing markets
They may have high housing need.
In Standing Committee, I cited Lord Rooker who said outside the House that it was likely that only one authority—Barking and Dagenham—of the then 34 debt-free authorities with housing stock was likely to be regarded by the Government as in housing need—[Interruption.] No doubt the Minister will correct me if that is incorrect.
4.45 pm Let me just tell the Minister how this looks from the point of view of an authority that will lose 75 per cent. of its capital receipts and that will have to change its plans accordingly. Runnymede borough council—my local authority—is debt free, with housing stock and good right-to-buy receipts, but it is in desperate need of investment to improve pre-war, inter-war and immediate post-war system-built housing, some of which the Minister knows about, and I am pleased to say that he has recently approved such a scheme. There is a desperate need to invest in improving the quality of some of that, frankly, life-expired housing stock, as well as a desperate need to invest in new affordable housing, precisely to allow the area's economy and public services to continue to function. Local people do not understand why the Government apparently do not recognise that need and are apparently hell bent on taking such money away from our communities and redistributing it elsewhere. We believe that there is a clear need for that housing investment to take place locally. The proceeds of this tax on local authorities will be used to finance Government dirigisme, channelling development to specific areas. The Minister has already mentioned the Thames gateway. [Interruption.] I do not know why the Minister is shaking his head, because that information is in the public domain. The money will be spent in Ashford, the Thames gateway and Milton Keynes; it will not be spent in Runnymede. If the Minister has some good news that I was unaware of, I should be very pleased to hear it, but that looks like channelling development to the Government's priority areas at the expense of local solutions to local problems. The Minister denied this when I put it to him earlier, but I am afraid that, from where I sit in north-west Surrey, the Thames gateway looks like a massive dormitory at the end of a 40-mile stationary car park called the M25, which key workers in Surrey will have to travel to and from to find affordable housing. The Government can go on all they like about decentralisation and local authority freedom and flexibility, but we will judge the Government by their actions, not their words. This confiscatory swipe at the capital receipts of some of the best-run local authorities in England, including those under the control of all the parties and none, shows us the Government's true colours. We had it right when we previously debated this issue in the House, when we proposed to scratch that confiscatory power from the Bill. The Lords have got it right now in deleting from the Bill a power of confiscatory taxation, which we know full well the Secretary of State proposes to use to reduce to local discretion, to fuel the redistribution pork barrel and to reinforce his wider attack on the right to buy. [Interruption.] The right-to-buy policy has given real hope and opportunity to millions of hard-working families over the past decade or so—something that the Labour party obviously cannot abide and that the Minister appears to find funny. I urge my hon. Friends to resist the Government's crude attempt, in pursuit of their centralising and confiscatory agenda, to ignore the collective wisdom of all the Opposition parties in the House and of the majority of the House of Lords.This issue has been debated more than any other during debates on the Bill in both Houses. The arguments have been explored in great detail, and the Opposition have had to think hard about the Government's arguments. The Minister will admit that the Opposition have tested the Government's arguments and thought hard about them. The Minister's problem seems to be that we have reached a different conclusion from him, and I shall set out the principles of why we have done so shortly.
The Minister sometimes cites councils and which parties control them. There is almost a scorecard, as though such things will be done by partisan analysis. [Interruption.] The Minister shakes his head, but that sounded like the point he was making in his opening remarks. That is not the right approach, and it is not one that we have adopted. The Liberal Democrat group on the Local Government Association, which I consulted widely—including representatives from all the councils that the Minister mentioned and many more—debated the matter at length before taking its decision. It knew that some councils would win and some would lose, but it wanted to decide on the right principle for the financial mechanism. Another case in point, which the Government have mentioned, is that of Brent. For obvious reasons, Brent has raised its very pretty head in this debate [Interruption.] I should make it clear that I was not referring to the hon. Member for Brent, North (Mr. Gardiner). The Government should be careful, however, before they make opportunist points about Brent. Labour has been running Brent for a long time and has piled up some of the debts, and in recent years the Labour Government's local government finance settlements for Brent have not exactly been generous. I am sure that the hon. Member for Brent, North would concede that point, because I know, as Hansard will show, that he has not been very happy with Ministers' settlements for Brent.I am sure that the hon. Gentleman will recall that Brent's 1998 local government settlement for children's personal services was indeed not generous and that it had a bad effect on Brent. If we look at the Government's record, however, specifically on housing and capital allocation over the past six years, we find that the Labour council in Brent has begun the rebuilding of houses, which was left in abeyance for years by the Conservative administration in Brent and by the then Conservative Government. The record of the Labour local authority in Brent, supported by the Government, in delivering on housing need in Brent is absolutely exceptional. Last year, we had one of the largest capital allocations that we could have had. I therefore hope that the hon. Gentleman will now address the real question—
Order. I hope that the hon. Gentleman will now conclude his intervention.
You are probably right, Mr. Deputy Speaker, to admonish the hon. Gentleman, but perhaps I, too, should be admonished for giving him the opportunity to make that party broadcast. At least he confirmed, however, that he was not happy with Brent's local government finance settlement from this Government.
The Government say that the proposals will get rid of an anomaly, but the anomaly can also be seen as an incentive to reduce debt and to become debt free—a sensible element to have in the local government finance system. The Government are rightly getting rid of a lot of the nonsense that they inherited from the Conservatives—the central capital controls, supplementary credit approvals and so on—and are introducing what is more or less Liberal Democrat policy: the prudential capital regime for local authority borrowing. We wholeheartedly support the Government's welcome move in that direction, which provides greater opportunities for local authorities to manage their capital affairs well. The key question, however, is whether the Government are still allowing, within those many changes, opportunities and incentives for local government to make sure that it is managing its debt well. Let us have freedom to borrow when it is appropriate, but do we really want to take away the significant incentive to run down debts? We all agree that encouraging local authorities to reduce their debt is sensible, and I do not understand why the Government are getting rid of that important incentive. That is one issue of fiscal principle. The other issue relates to localism and centralism. The Government say that the Bill is about freedoms and flexibilities for local authorities and that it will empower and free up local authorities. They also talk about new localism. This policy goes completely in the opposite direction. The Government justify that by saying that they have to redistribute, and the two parties do not disagree on the need to redistribute; the question is how that is done. [Interruption.] The Minister points to Conservative Members, but I was not including the Conservatives in that argument. Perhaps we should do so these days, but we never quite know. Labour and the Liberal Democrats certainly agree that it is important that central Government should be used to redistribute resources around the country, but that is not the question. The question is how we do that, and it is clear in my mind that this is not the right way to do it. National Government could provide the resources for housing in Brent and other areas, should they choose to do so, but the question is whether they should take that money off other authorities that have housing needs and that have managed their financial affairs well. Should the Government be penalising them or should they be coming up with money from elsewhere? I want to press the Government on the idea that all council housing has somehow been funded solely by central Government. Lord Rooker was at it in the other place when he said:I have heard council houses called many things, but I have never heard them called a national asset. It is as though council housing is some sort of nationalised industry that central Government have provided and that local authorities have nothing to do with. That is clearly not the case, whether it is on the financial level or on the level of the entrepreneurship, vigour and dynamism of the local communities that have made the provision of social housing possible. It is all very well for the Government to say, "This money came out of the central pot." However, they decided where the central pot began and ended and where the local pot began and ended. The boundaries between national and local government funds have been vague at times and have moved over the decades. Liberal Democrats believe that local authorities should have much greater financial powers, and we would like the boundaries to be shifted from central Government and more to local government. That is one reason why we think that this measure is wrong. There should be redistribution, but there should be greater autonomy, too. This measure is a step in the opposite direction to greater autonomy."Council housing is a national asset."—[Official Report, House of Lords, 4 June 2003; Vol. 648, c. GC 198.]
Earlier, the Minister shook his head when my hon. Friend said that some of the properties go back for centuries. Many boroughs in mediaeval market towns built properties that came into the hands of councils, which turned them into flats and houses. Those properties often realise the highest possible values if they are sold. They were funded not by central Government in the 20th century, but by locally raised money or by charitable money in the 19th century.
I am grateful to my hon. Friend for making that point. Two councils in his constituency—South Shropshire and Bridgnorth—are debt free and will be affected by the measure, but they have real housing need. That brings me to my third point of principle against the Government's proposal. Housing need is sometimes a relatively subjective concept. The Government say that they have housing need indicators, but the housing need that the hon. Member for Runnymede and Weybridge (Mr. Hammond) mentioned—the need for affordable housing for key public sector workers—is a key issue. We do not know how authorities will meet that need when the money is taken from them. The Minister may say that we do not know because the Government have set up regional housing boards—a step in the right direction—which have yet to report. However, he is asking the House to take a decision on one side of the equation when we do not know the information on the other side of the equation.
The hon. Member for Runnymede and Weybridge says that he is privy to the information that Lord Rooker has said that only one of the debt-free authorities that are losing out will receive money through this process. I am not sure how Lord Rooker knows that if the regional housing boards will provide and allocate the funds. Perhaps he knows something that we do not.I have tried to follow the hon. Gentleman's argument closely, but I do not understand his point about the regional housing boards. Surely if those boards are to be the arbiter of genuine housing need, it is absolutely right that we take the decision on one side of the equation and not on the other. That is precisely because of the point that the hon. Gentleman made at the beginning of his remarks: this process should be free of partisan judgment and based on objective criteria. That is exactly what the regional housing boards are supposed to provide.
5 pm
The hon. Gentleman cannot have it both ways. The Minister was trying to say that some authorities that do not have housing needs will lose and that other authorities with housing needs will win. We want to know about and to understand the housing needs, because we know from our constituencies, from which much of our information for such debates comes, that there are housing needs in the so-called leafy boroughs of suburban London. There are housing needs in rural areas such as that of my hon. Friend the Member for Ludlow (Matthew Green) and in parts of Surrey. The Government cannot have it both ways. We want to know where housing need will be met before the money is taken away. Perhaps that information should come from the regional housing boards—I do not disagree with that. The process should be less partisan and should be based on objective criteria. However, we are being asked to make a decision before we know about the need.
Surely it is unlikely that there will be sufficient money to meet all the housing needs in a given region, even with the pooling of money. There will be priorities. In the west midlands, it might well be decided that Birmingham needs an extra 20,000 houses. We need only 1,500 more affordable homes in South Shropshire district council, but the district contains only 30,000 people. The suspicion in South Shropshire is that it is likely that the money for the west midlands will go to areas other than South Shropshire or Bridgnorth.
Over the weekend, I talked to several council leaders and councillors who will be affected by the decisions to check whether they were still happy with our position, because this is a serious moment during the passage of the Bill. They were clear that they managed their budgets and forward planning in the knowledge that when they became debt free, they could use the moneys as they wanted.
Three Rivers district council is desperately keen to meet the decent homes standard that the Office of the Deputy Prime Minister gave it and to build more affordable housing with housing associations to address its affordable housing crisis and to house some of its key public sector workers. However, it will not be able to do so because the money will be taken away and it does not think that it will be on the regional housing board's list. Councils have planned for years in the expectation that they will receive money to meet the housing needs that they know exist in their communities, but they will no longer be able to do that. The situation is retrospective in many ways. Councils have planned and hoped for freedom so that they may make essential investment. They have even told their communities that they were making preparations, but suddenly, and without too much warning, the Government are taking the money away, which is why people are so cross. The Government and hon. Members such as the hon. Member for Brent, North must understand that. The Government say that the transitional scheme may cushion the blow for some of the affected authorities, and indeed it will. The problem is that the scheme will last for only two or three years, after which all the money will be taken from the authorities. The situation affects not only the 38 or 40 debt-free authorities with capital receipts that the Minister mentioned. Local authorities that have been working towards becoming debt free have gone through some of the pain but will discover that the freedom that they worked for and looked forward to will be taken away. I say to the Minister, in as friendly a way as possible, that Liberal Democrats have thought hard about the matter, as is our duty. As he said, £120 million is up for grabs throughout the country, so the way in which it is distributed and allocated is important. However, if one considers the principles of fiscal prudence and incentives to become debt free, localism versus centralism, the way in which housing needs are defined and the way in which local authorities have worked towards becoming debt free, the Minister has not made his case and we shall vote against him in the Lobby.We have had a good debate on an important subject, although the hon. Member for Runnymede and Weybridge (Mr. Hammond) made several rather curious allegations, the most frequent of which was that the measure is confiscatory. By that logic, the Conservative Government who introduced the whole set-aside regime were confiscatory. He alleged that the measure represents heavy-handed government forcing local authorities to do undesirable things, yet his party, when in government, introduced measures that required local authorities to set aside capital receipts. I cannot accept his latter-day expressions of support for the idea of greater freedom for local government without reminding him of the actions of Conservative Governments.
The fundamental difference is that today we are talking about housing capital expenditure of £2.5 billion a year—two and a half times the level that we inherited when we came to power. At that stage, the redistributive mechanism that the hon. Gentleman's Government had introduced was virtually the only means of getting capital into housing.If so much new money is available for housing needs, why is it necessary to take £120 million from the debt-free authorities that have worked so hard to become so?
If the hon. Gentleman bears with me, I will give him a full answer that deals with the inherent contradiction in his case. He seems to believe, as Liberal Democrats generally do, that it is possible to find ways out of difficult conflicts without any pain, but it is not. It may be so in the Liberal Democrat Valhalla, where everyone debates everything ad nauseam and outcomes are always pain free, but in the real world there are hard choices that require decisions. There is conflict between allowing receipts to remain where they fall and ensuring a fair allocation of housing resources. This is a testing moment for Opposition Members to show where they stand. Are they in favour of simply letting things lie according to the accidents of history, or do they want a fair distribution based on principle, not accident?
Is taking money away from Tory and Liberal Democrat councils and giving to it to Labour ones the hardest decision that the Minister has ever had to make?
It is not like that at all. It is interesting that the hon. Gentleman proposes to take money away from a substantial number of Liberal Democrat authorities. I understand exactly why Conservative Members support the measure—because, in general, Tory councils will benefit from it; it is self-interest on behalf of predominantly Tory authorities. I find it extraordinary, however, that the Liberal Democrats should argue against the interests of many of their own authorities. That is an example of the curious stance that they often take by standing on their heads on certain issues. [Interruption.] I shall come back to the hon. Member for Kingston and Surbiton (Mr. Davey) in a moment. I want first to respond to the hon. Member for Runnymede and Weybridge.
The difference between the actions of his Government and our proposal is that we are ensuring that the principles of fair distribution apply to all local authorities, which will all be part of the same mechanism. He proposes giving special benefits to a small number—around 40—that are debt free. As we know, that is because Conservative Members see that as being in the financial interests of predominantly Conservative authorities. Let me test him on this. Why should mid-Devon be treated differently from east Devon? Why should Milton Keynes be treated differently from Watford? Why should Maidstone be treated differently from Dartford? In each case, one will lose and one will gain. Can the hon. Gentleman tell me which will be the gainers and which will be the losers? We know about Milton Keynes, because we have rehearsed that already, but can he genuinely tell me what the outcome will be in the other two cases? Of course not. We know that those authorities are in broadly similar circumstances. It just happens that one has the advantage of being debt free and the other not. Why should there be an arbitrary benefit for one as against another? That is the fatal weakness of the Opposition's position. They are proposing special treatment for a small group of authorities merely on the accident of which one happens to be debt free. Why should one authority have unrestricted access to capital receipts while the other is required to set aside 75 per cent? That is the question that I must put, and there is no credible answer to it. It illustrates the confusion of both opposition parties.The Minister is taking a static one-year view when we are talking about housing and capital finance. These things do not happen from one year to the next. The span is 25 or 30 years plus, as we have discussed. The Minister cannot say that what he has said justifies his case. He must take a much longer-term view. If he did that, he might win more of us over.
The hon. Gentleman, for whom I have great respect, could not have made my case better. Essentially, he is arguing for special treatment for a few authorities that happen at this moment to be in a favourable position. We are taking the longer-term view and saying that there should be a framework that applies fairly throughout all authorities and ensures that resources are allocated according to need. Surely the Liberal Democrat party would say that that is a fair principle, and it is the principle that underpins our policy.
The Liberal Democrats are caught on the horns of a dilemma. On the one hand, they argue for the use of resources to meet local housing needs, but they are not prepared to follow logic and say that that means that we cannot live with the accidents of history and geography and allow buckshee gains for some authorities that at this moment have the advantage of being debt free with substantial receipts, and needs that do not outweigh their receipts. I am not sure what my noble friend Lord Rooker said in the other place—the hon. Member for Runnymede and Weybridge quoted him—but some authorities that are debt free have significant needs that will be taken into account in the allocations that will be considered by the regional housing boards. Other authorities will have lesser needs. In our view, it is right that every authority should be assessed on the basis of needs, on the simple principle that housing allocations should be determined by need. That should not be based on the simple accident, as it were, of where the receipts arise.I have listened to everything that the Minister has said. Does he understand how he is undermining the sense that he wants to convey that he is granting freedom to local authorities? Does he understand also the psychological significance of the provision? We are talking of only 40 authorities, but a message is being sent to all authorities and to the Local Government Association that the Government do not really want to let go and allow local authorities to manage their own affairs. Instead, they want to control what they do.
I hope that we shall shortly come on to the next group of amendments, which deals with financial management and accompany all the provisions that change radically the capital allocations system. The provisions will remove Government controls and will free local authorities to take decisions on capital allocations. The Government are making substantial moves towards giving local authorities greater freedom and flexibility. We are also a Government who have principles. One of those principles is that fairness in the allocation of resources to meet needs should be paramount. We are not resiling from that. It is sad that the other parties are prepared to argue for a framework that will give special advantage on the basis of accidents of history and geography to a few authorities, rather than taking the more rounded view.
We have offered generous transitional arrangements. We are prepared to help those authorities that are debt free because, as the hon. Member for Kingston and Surbiton said, some of them have made plans. We want to ensure that those plans are not disrupted unduly by these changes. Therefore, there was opportunity for substantial help for the impact on debt-free authorities to be smoothed over for a significant time. We remain willing to assist those authorities, but that must happen in a framework that ensures fairness to all authorities, and not be a purely arbitrary benefit for a small number that will have adverse consequences for the majority. 5.15 pm With those thoughts, I trust that hon. Members will vote to resist the amendment.Question put, That this House disagrees with the Lords in the said amendment:—
The House divided: Ayes 258, Noes 154.
Division No. 310]
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AYES
| |
Ainger, Nick | Borrow, David |
Ainsworth, Bob (Cov'try NE) | Bradley, rh Keith (Withington) |
Alexander, Douglas | Bradley, Peter (The Wrekin) |
Allen, Graham | Bradshaw, Ben |
Anderson, Janet (Rossendale & Darwen) | Brennan, Kevin |
Brown, rh Nicholas (Newcastle E Wallsend) | |
Armstrong, rh Ms Hilary | |
Atherton, Ms Candy | Brown, Russell (Dumfries) |
Austin, John | Bryant, Chris |
Baird, Vera | Burden, Richard |
Banks, Tony | Burgon, Colin |
Barnes, Harry | Burnham, Andy |
Barron, rh Kevin | Byers, rh Stephen |
Bayley, Hugh | Caborn, rh Richard |
Beard, Nigel | Cairns, David |
Bell, Stuart | Campbell, Alan (Tynemouth) |
Benn, Hilary | Campbell, Mrs Anne (C'bridge) |
Benton, Joe (Bootle) | Campbell, Ronnie (Blyth V) |
Berry, Roger | Caplin, Ivor |
Best, Harold | Casale, Roger |
Cawsey, Ian (Brigg) | Hoyle, Lindsay |
Challen, Colin | Hughes, Beverley (Stretford & Urmston) |
Chapman, Ben (Wirral S) | |
Clark, Mrs Helen (Peterborough) | Hughes, Kevin (Doncaster N) |
Clark, Dr. Lynda (Edinburgh Pentlands) | Humble, Mrs Joan |
Hurst, Alan (Braintree) | |
Clark, Paul (Gillingham) | Hutton, rh John |
Clarke, rh Tom (Coatbridge & Chryston) | Iddon, Dr. Brian |
Illsley, Eric | |
Clwyd, Ann (Cynon V) | Ingram, rh Adam |
Coffey, Ms Ann | Jackson, Glenda (Hampstead & Highgate) |
Cohen, Harry | |
Cook, rh Robin (Livingston) | Jackson, Helen (Hillsborough) |
Corbyn, Jeremy | Jamieson, David |
Corston, Jean | Jenkins, Brian |
Cousins, Jim | Johnson, Alan (Hull W) |
Cox, Tom (Tooting) | Johnson, Miss Melanie (Welwyn Hatfield) |
Cruddas, Jon | |
Cryer, Ann (Keighley) | Jones, Helen (Warrington N) |
Cunningham, rh Dr. Jack (Copeland) | Jones, Lynne (Selly Oak) |
Jowell, rh Tessa | |
Cunningham, Jim (Coventry S) | Joyce, Eric (Falkirk W) |
Dalyell, Tam | Kaufman, rh Gerald |
Darling, rh Alistair | Keeble, Ms Sally |
Davey, Valerie (Bristol W) | Keen, Alan (Feltham) |
Davies, rh Denzil (Llanelli) | Khabra, Piara S. |
Davies, Geraint (Croydon C) | Kidney, David |
Dean, Mrs Janet | King, Andy (Rugby) |
Denham, rh John | King, Ms Oona (Bethnal Green & Bow) |
Dhanda, Parmjit | |
Dobbin, Jim (Heywood) | Knight, Jim (S Dorset) |
Dobson, rh Frank | Kumar, Dr. Ashok |
Donohoe, Brian H. | Ladyman, Dr. Stephen |
Doran, Frank | Lammy, David |
Dowd, Jim (Lewisham W) | Lazarowicz, Mark |
Drew, David (Stroud) | Lepper, David |
Dunwoody, Mrs Gwyneth | Levitt, Tom (High Peak) |
Eagle, Angela (Wallasey) | Lewis, Ivan (Bury S) |
Eagle, Maria (L'pool Garston) | Lewis, Terry (Worslsey) |
Ellman, Mrs Louise | Linton, Martin |
Etherington, Bill | Lloyd, Tony (Manchester C) |
Farrelly, Paul | Lyons, John (Strathkelvin) |
Field, rh Frank (Birkenhead) | McAvoy, Thomas |
Flint, Caroline | McCabe, Stephen |
Flynn, Paul (Newport W) | McCafferty, Chris |
Foster, rh Derek | McDonagh, Siobhain |
Foster, Michael (Worcester) | McDonnell, John |
Foulkes, rh George | McFall, John |
Gapes, Mike (Ilford S) | McIsaac, Shona |
Gardiner, Barry | McKechin, Ann |
Gerrard, Neil | McKenna, Rosemary |
Gibson, Dr. Ian | Mactaggart, Fiona |
Gilroy, Linda | McWalter, Tony |
Godsiff, Roger | Mahmood, Khalid |
Goggins, Paul | Mahon, Mrs Alice |
Griffiths, Jane (Reading E) | Mallaber, Judy |
Grogan, John | Mann, John (Bassetlaw) |
Hain, rh Peter | Marsden, Gordon (Blackpool S) |
Hall, Mike (Weaver Vale) | Marshall, David (Glasgow Shettleston) |
Hamilton, David (Midlothian) | |
Hanson, David | Marshall, Jim (Leicester S) |
Harris, Tom (Glasgow Cathcart) | Marshall-Andrews, Robert |
Havard, Dai (Merthyr Tydfil & Rhymney) | Martlew, Eric |
Meacher, rh Michael | |
Hendrick, Mark | Merron, Gillian |
Hepburn, Stephen | Michael, rh Alun |
Heppell, John | Miliband, David |
Heyes, David | Miller, Andrew |
Hill, Keith (Streatham) | Moffatt, Laura |
Hood, Jimmy (Clydesdale) | Moonie, Dr. Lewis |
Hoon, rh Geoffrey | Morley, Elliot |
Hope, Phil (Corby) | Murphy. Denis (Wansbeck) |
Hopkins, Kelvin | Murphy, Jim (Eastwood) |
Howarth, rh Alan (Newport E) | Norris, Dan (Wansdyke) |
Howarth, George (Knowsley N & Sefton E) | O'Brien, Bill (Normanton) |
O'Hara, Edward |
Organ, Diana | Soley, Clive |
Osborne, Sandra (Ayr) | Speller, rh John |
Palmer, Dr. Nick | Squire, Rachel |
Perham, Linda | Starkey, Dr. Phyllis |
Pickthall, Colin | Steinberg, Gerry |
Pike, Peter (Burnley) | Stevenson, George |
Plaskitt, James | Stewart, David (Inverness E & Lochaber) |
Prentice, Gordon (Pendle) | |
Primarolo, rh Dawn | Stoate, Dr. Howard |
Prosser, Gwyn | Stringer, Graham |
Purchase, Ken | Sutcliffe, Gerry |
Quin, rh Joyce | Taylor, rh Ann (Dewsbury) |
Quinn, Lawrie | Taylor, David (NW Leics) |
Rammell, Bill | Thomas, Gareth (Harrow W) |
Rapson, Syd (Portsmouth N) | Tipping, Paddy |
Raynsford, rh Nick | Todd, Mark (S Derbyshire) |
Reed, Andy (Loughborough) | Touhig, Don (Islwyn) |
Reid, rh Dr. John (Hamilton N & Bellshill) | Trickett, Jon |
Truswell, Paul | |
Robertson, John (Glasgow Anniesland) | Turner, Dennis (Wolverh'ton SE) |
Turner, Neil (Wigan) | |
Roche, Mrs Barbara | Twigg, Derek (Halton) |
Rooney, Terry | Twigg, Stephen (Enfield) |
Ross, Ernie (Dundee W) | Vaz, Keith (Leicester E) |
Ruddock, Joan | Vis, Dr. Rudi |
Ryan, Joan (Enfield N) | Ward, Claire |
Salter, Martin | Wareing, Robert N. |
Savidge, Malcolm | Watson, Tom (W Bromwich E) |
Sawford, Phil | Watts, David |
Sedgemore, Brian | Whitehead, Dr. Alan |
Sheerman, Barry | Williams, rh Alan (Swansea W) |
Sheridan, Jim | Wills, Michael |
Simon, Siôn (B'ham Erdington) | Winnick, David |
Simpson, Alan (Nottingham S) | Winterton, Ms Rosie (Doncaster C) |
Singh, Marsha | |
Skinner, Dennis | Wood, Mike (Batley) |
Smith, rh Andrew (Oxford E) | Woodward, Shaun |
Smith, rh Chris (Islington S & Finsbury) | Woolas, Phil |
Wright, Tony (Cannock) | |
Smith, Geraldine (Morecambe & Lunesdale) | Wyatt, Derek |
Smith, Jacqui (Redditch) | Tellers for the Ayes:
|
Smith, John (Glamorgan) | Vernon Coaker and
|
Smith, Llew (Blaenau Gwent) | Ms Bridget Prentice
|
NOES
| |
Ainsworth, Peter (E Surrey) | Calton, Mrs Patsy |
Allan, Richard | Cameron, David |
Amess, David | Campbell, rh Menzies (NE Fife) |
Ancram, rh Michael | Carmichael, Alistair |
Atkinson, David (Bour'mth E) | Cash, William |
Atkinson, Peter (Hexham) | Chapman, Sir Sydney (Chipping Barnet) |
Bacon, Richard | |
Baker, Norman | Chope, Christopher |
Baldry, Tony | Clappison, James |
Baron, John (Billericay) | Collins, Tim |
Beith, rh A. J. | Cormack, Sir Patrick |
Bellingham, Henry | Cotter, Brian |
Bercow, John | Curry, rh David |
Beresford, Sir Paul | Davey, Edward (Kingston) |
Blunt, Crispin | Davis, rh David (Haltemprice & Howden) |
Boswell, Tim | |
Bottomley, Peter (Worthing W) | Djanogly, Jonathan |
Bottomley, rh Virginia (SW Surrey) | Doughty, Sue |
Duncan, Alan (Rutland) | |
Brady, Graham | Duncan Smith, rh lain |
Brazier, Julian | Evans, Nigel |
Breed, Colin | Fabricant, Michael |
Brooke, Mrs Annette L. | Fallon, Michael |
Browning, Mrs Angela | Flight, Howard |
Bruce, Malcolm | Flook, Adrian |
Burns, Simon | Forth, rh Eric |
Burnside, David | Foster, Don (Bath) |
Burstow, Paul | Fox, Dr. Liam |
Burt, Alistair | Gale, Roger (N Thanet) |
Butterfill, John | Garnier, Edward |
George, Andrew (St. Ives) | Osborne, George (Tatton) |
Gibb, Nick (Bognor Regis) | Ottaway, Richard |
Gidley, Sandra | Page, Richard |
Gillan, Mrs Cheryl | Paice, James |
Goodman, Paul | Pickles, Eric |
Gray, James (N Wilts) | Price, Adam (E Carmarthen & Dinefwr) |
Grayling, Chris | |
Green, Damian (Ashford) | Prisk, Mark (Hertford) |
Green, Matthew (Ludlow) | Randall, John |
Greenway, John | Redwood, rh John |
Grieve, Dominic | Rendel, David |
Hague, rh William | Robathan, Andrew |
Hammond, Philip | Robertson, Laurence (Tewk'b'ry) |
Hancock, Mike | Roe, Mrs Marion |
Hawkins, Nick | Rosindell, Andrew |
Hayes, John (S Holland) | Ruffley, David |
Heath, David | Russell, Bob (Colchester) |
Heathcoat-Amory, rh David | Sanders, Adrian |
Hoban, Mark (Fareham) | Shephard, rh Mrs Gillian |
Horam, John (Orpington) | Simmonds, Mark |
Howard, rh Michael | Simpson, Keith (M-Norfolk) |
Jack, rh Michael | Smith, Sir Robert (W Ab'd'ns & Kincardine) |
Jenkin, Bernard | |
Kennedy, rh Charles (Ross Skye & Inverness) | Soames, Nicholas |
Spelman, Mrs Caroline | |
Key, Robert (Salisbury) | Spink, Bob (Castle Point) |
Knight, rh Greg (E Yorkshire) | Spring, Richard |
Stunell, Andrew | |
Lamb, Norman | Taylor, Ian (Esher) |
Lansley, Andrew | Taylor, John (Solihull) |
Laws, David (Yeovil) | |
Taylor, Matthew (Truro) | |
leigh, Edward | Taylor, Sir Teddy |
letwin, rh Oliver | Thomas, Simon (Ceredigion) |
Lewis Dr Julian (New Forest E) | |
Tonge, Dr. Jenny | |
Liddell-Grainger, Ian | Turner, Andrew (Isle of Wight) |
Lidington, David | Tyrie, Andrew |
Lilley, rh Peter | Viggers, Peter |
Llwyd, Elfyn | Walter, Robert |
Loughton, Tim | Waterson, Nigel |
Luff, Peter (M-Worcs) | Watkinson, Angela |
McIntosh, Miss Anne | Webb, Steve (Northavon) |
Maclean, rh David | Whittingdale, John |
McLoughlin, Patrick | Wiggin, Bill |
Malins, Humfrey | Wilkinson, John |
Mawhinney, rh Sir Brian | Williams, Roger (Brecon) |
Mercer, Patrick | Willis, Phil |
Mitchell, Andrew (Sutton Coldfield) | Wilshire, David |
Yeo, Tim (S Suffolk) | |
Moore, Michael | Young, rh Sir George |
Moss, Malcolm | |
Norman, Archie | Tellers for the Noes:
|
Oaten, Mark (Winchester) | Mr. Mark Field and
|
O'Brien, Stephen (Eddisbury) | Mr. Mark Francois
|
Question accordingly agreed to.
Lords amendment disagreed to.
Before Clause 25
Lords amendment No. 6
530 pm
I beg to move, That this House disagrees with the Lords in the said amendment.
The amendment would insert a new clause at the beginning of part 2. The new clause says that part 2 can be applied only to an authority that has been identified by the Audit Commission as being at risk of overspending its total budget by more than 10 per cent. I need first to explain the perverse and highly undesirable effects of such an overspending test. It requires the Audit Commission to undertake an entirely new task, which would be costly and potentially very hazardous. In effect, it would require the commission to create what would be a blacklist of authorities that had agreed budgets that were likely to be seriously overspent. How would that be done? The factors that lead to an overspend are extremely diverse and difficult to predict. The commission would have to examine the budget of every authority, consider the various contingencies that might affect it and their likelihood, and from that try to predict whether the outcome would be a 10 per cent. overspend. The scope for disagreement would be immense, and inclusion in the list would be highly likely to be challenged in the courts. A major input of audit resource would be required, which would be reflected in an increase in audit fees for all authorities. What would be the effect of an authority's inclusion? It should be borne in mind that this is not a general assessment concluding that an authority is a poor performer, but, specifically, a supposedly authoritative statement that it is likely to spend at least 10 per cent. more than it put in its budget. If the authority had reserves of less than 10 per cent., that would effectively mean that it had set an illegal budget. On the other hand, if it had reserves of more than the expected overspend, it would be on the blacklist but not at any financial risk. Its reputation would be compromised for no reason. The purpose of the amendment is apparently to apply part 2 to authorities that have unsound finances. When Hackney's chief finance officer issued his section 114 report in October 2000, he was estimating an overspend of between £14.5 million and £22 million. The reserves were £6.5 million. The general fund budget for the year, however, was £264 million. The reserves were insufficient, but the projected overspend was less than 10 per cent. of the budget. Even if it could have foreseen that development, the Audit Commission would not have identified Hackney under the new clause. The part 2 provisions would not have applied in one of the most serious financial crises to have hit a local authority in recent years. This arbitrary test would not guarantee the identification of authorities facing financial crises, while running the risk of needlessly tarnishing the reputation of an authority with sound finances. The new clause would have another serious consequence. Much has been made of the opposition to part 2 in local government, but one clause, clause 30, has been universally welcomed. It helps an authority to take rapid remedial action when a section 114 report has been issued. The amendment would perversely deny au authority the use of that facility unless it was on the Audit Commission list—but unexpected financial crises can affect many authorities. It is absurd that only projected overspenders would be allowed the means to take immediate action to deal with such a crisis. Those are the reasons for our belief that this is a perverse and unworkable amendment, but there are more fundamental issues at stake. The purpose of part 2 is to reinforce important aspects of sound financial management in local government. It does that mainly by requiring authorities to follow proper procedures and have regard to appropriate considerations, while leaving the substance of the decisions to authorities themselves. This is all part of our programme to extend freedom, and flexibilities to local authorities—in this case, by repealing the restrictive policies relating to capital spending that were introduced by the last Conservative Government. I am interested to see the right hon. Member for Wokingham (Mr. Redwood) laughing at the fact that his party was responsible for the introduction of those measures.The Minister is going into chapter and verse about his technical objections to the amendment, but he knows that the underlying principal concern was clause 26, which, in contrast to what he has just said about giving local authorities freedom and allowing them to manage their affairs in accordance with generally accepted accounting practice, gives the Secretary of State the power to dictate reserves. Why did not the Government take the opportunity to accept the Opposition amendment that would have struck out clause 26, and then everyone would have been happy?
If the hon. Gentleman bears with me, I will come on to precisely that issue. I emphasise that the Bill is part of a programme to extend freedoms and flexibility but, as all sensible people recognise, with freedoms come responsibilities, and the part 2 provisions are sensible safeguards to ensure that the new freedoms are applied responsibly. Clause 26 provides a fall-back power to require an authority to budget for a minimum level of reserves but we have made it clear on many occasions that we would use that power only in very limited circumstances. We have said on the record, and I repeat tonight, that we will set a minimum only if an authority is disregarding the advice of its chief finance officer and is heading for serious financial difficulties. In deciding the level of the minimum, we would take account of the advice of the chief finance officer and any observations of the auditor.
I was laughing because the Minister was purporting to say that this is a liberalising Bill when, as my hon. Friend the Member for Runnymede and Weybridge (Mr. Hammond) has pointed out, there is a very strong measure of centralisation. Before the Minister suggests that I should not be making this point, he should remember that, when I was the Minister with responsibility for local government, the only changes I made liberalised. I would have liked to liberalise more. I wish this Government would liberalise more. This is not the measure that is going to do it.
I remind the right hon. Gentleman that, when he was a Minister, there was a capital control regime in place that involved central decision taking about every local authority's borrowing—every local authority's borrowing was determined by central Government. That was the policy that he followed. That is what we are doing away with by giving local authorities freedom to take decisions based on a sound prudential assessment of what they can afford to borrow. The only safeguard that we have put in is the safeguard that I have been referring to, which ensures that, in the event of an authority disregarding the advice of its chief finance officer and heading for serious financial difficulties as a result of that, there is a fall-back. I think that any sensible person would recognise that that is prudent and a necessary safeguard, but I hope that we will have to use it very rarely, if ever.
The Minister knows that we disagree with the policy as embedded in clause 26 but can he elucidate a little more about when he thinks the power could be used? He said that it would be used on very rare occasions, if ever. Have his officials given him a list of occasions over the past few years when the power might have been applied, given the undertakings that he has just given?
As I have already said, we hope that we will never have to use these powers. There have been very infrequent occasions where authorities have disregarded the advice of their chief finance officer. There were cases some years ago where authorities got into imprudent financial arrangements, disregarding official advice, but thankfully they have been very few and infrequent, and we hope that they will not happen at all in future. That is why I can say with some confidence that I hope that we will never have to use the powers, but it is a foolish Government who do not make provision for the possibility of one rogue authority taking irresponsible decisions against the advice of its chief officers in certain unforeseen circumstances. If that were to happen and we did not have the power to intervene, I would be surprised if there were not some Opposition Members saying, "How is it that the Government have got into a position of giving these freedoms to local government without any ability to step in and to prevent the people of that area suffering as a result of irresponsible behaviour by the local authority?"