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Written Answers

Volume 468: debated on Thursday 5 December 1985

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Written Answers

Local Authorities And Foreign Borrowing Transactions

asked Her Majesty's Government:What conditions have in the past been imposed by foreign banks and governments lending to British local authorities.

This information is not available to Her Majesty's Government. Conditions on local authority borrowing are a matter between the authority and the lender. However, in all their financial transactions local authorities must have due regard to their fiduciary duty to their ratepayers, and are answerable to the district auditor.

asked Her Majesty's Government:Which local authorities, and of what political complexion at the time, have recently borrowed major sums from foreign banks, and from which banks.

Such information as is available to Her Majesty's Government is not collected in the form requested. Details of individual authorities of this sort are subject to commercial confidentiality.

Local Authorities: Borrowing Approval Requirements

asked Her Majesty's Government:What sources of loan finance British local authorities are allowed to approach without central Government approval.

Local authorities in England and Wales require the approval of my right honourable friends the Secretary of State for the Environment and the Secretary of State for Wales respectively to borrow for capital purposes. This takes the form of a block borrowing approval. Subject to that approval, they may borrow in sterling from any source willing to lend to them, and outside the United Kingdom or in foreign currency subject to the additional consent of my right honourable friend the Chancellor of the Exchequer.In Scotland, local authorities are given block consent by my right honourable friend the Secretary of State for Scotland to incur capital expenditure. They may borrow sterling within the United Kingdom without prior approval but require the consent of my right honourable friend the Chancellor of the Exchequer to borrow outside the United Kingdom or in a foreign currency.

Glc And Mcc Properties: Transfer To Successor Bodies

asked Her Majesty's Government:What are their intentions for the transfer at abolition of property owned by the GLC and MCCs.

Proposals for the making of orders under Section 100 of the Local Government Act 1985 were issued for consultation in September in my department's second property memorandum. This proposed that orders should be made on general principles, transferring land and other property according to the statutory purpose for which it was held on 16th July 1985. These principles were designed to ensure that property needed for the continuing provision of inherited services would pass immediately at abolition to the appropriate successor authority. Other property, including that for which the appropriate successor has not been identified, would pass initially to the residuary bodies.My right honourable friend the Secretary of State for the Environment has now considered the responses to his published proposals. He has concluded that, as a first step, it is essential that a general order, applicable in all the seven areas concerned, should be made as soon as possible. The order would be based on the general principles set out in the second memorandum. It would deal also with contractual and other rights and liabilities, proposals for which were set out in the third memorandum issued on 12th November.In some areas, proposals have been put forward that virtually all property should pass directly to successor authorities at abolition. This would include the categories of land which the second memorandum proposed should go to the residuary bodies. The making of any initial general order on the lines now proposed will not rule out the bringing forward of further orders to meet more closely the wishes of successor authorities. However, before making such supplementary orders, my right honourable friend would wish to be satisfied:

  • (a) that the arrangements would not prejudice third parties' interests;
  • (b) that there is unanimous support for the proposals from all the boroughs and districts; and where appropriate other successor authorities in the area concerned, and agreement as to the arrangements for dealing with such matters as shared occupation and the distribution of the proceeds from the disposal of land; and
  • (c) that the arrangements are acceptable to the residuary bodies in terms of access to property which they may require for their own purposes such as administrative buildings and computers.
  • My right honourable friend will consider proposals put forward by successor authorities in any area in the light of these considerations, and where appropriate will make supplementary orders under Section 100. If such an order cannot be made before abolition, he will give early consideration to proposals by the appropriate residuary body under Section 67 of the Act, so that orders can, where appropriate, be made under that section for the early transfer of property to functional successor authorities.

    By proceeding in this way we shall provide a clear statutory framework for dealing with property, rights and liabilities at abolition, if alternative arrangements as described above have not by then been made.

    My right honourable friend will shortly invite the local authority associations to let him have their views on a draft of the proposed general order. In addition, discussions will be held with residuary bodies and successor authorities in each area both about the implications of the general order, and about the handling of proposals for the making of further orders.

    El Salvador: Alleged Machine-Gunning Incident

    asked her Majesty's Government:In what circumstances two British subjects were machine-gunned from a helicopter of the Salvadorean armed forces in Tenancingo, El Salvador, on 26th September 1985.

    We have received no complaints about such an incident.

    President Ortega: Exchange Of Letters

    asked Her Majesty's Government:Whether they will place the text of the exchange of letters between President Ortega of Nicaragua and the Prime Minister in March of this year in the Library of the House.

    I would refer the noble Lord to the Answer given by my right honourable friend the Prime Minister to the honourable Member for Islington North in another place on 23rd July.

    Nuclear Weapon Testing: Opinion Poll

    asked Her Majesty's Government:What are their comments on the Marplan Poll in which 84 per cent. said that the United Kingdom and the United States should follow the example of the USSR if they agree to ban all further nuclear tests.

    As the noble Lord will know from the Answers I gave to his two Questions on nuclear testing last week, we believe that declaratory, unilateral gestures are no substitute for adequately verifiable and durable arms control agreements.

    President Reagan: Meeting With Prime Minister

    asked Her Majesty's Government:Whether they will make a Statement about the Prime Minister's meeting with President Reagan in Brussels about his meeting with Mr. Gorbachev.

    I refer the noble Lord to the Answer given by my right honourable friend the Prime Minister to the honourable Member for Liverpool, Riverside (Mr. Parry) in another place on 25th November.