House of Commons Hansard Debates for 26 Apr 1990

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(2) Where a development corporation are satisfied as mentioned in subsection (1) above they may make grants of amounts to be determined by them with the approval of the Secretary of State and the consent of the Treasury.

(3) Any grant made under this section may be given subject to such conditions as the granter thinks appropriate including (without prejudice to this generality) conditions requiring repayment of all or any part of a grant in the event of non-compliance with any other condition ; and any consent given under this section may be general or specific.

Dissolution of development corporation. 36G.--(1) A development corporation shall, after the making of a winding up order relating to them, remain in existence until such date as the Secretary of State, after consultation with the corporation, appoints for their dissolution by order made by statutory instrument.

(2) The date appointed under subsection (1) above shall not be earlier than the date provided for in the winding up order for the completion of the winding up of the corporation.

Financial consequences of winding up. 36H. Any surplus arising from the winding up of a development corporation shall be paid into the Exchequer and any deficit shall be defrayed out of money provided by Parliament.".'.

Brought up, and read the First time.

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The Minister of State, Scottish Office (Mr. Ian Lang) : I beg to move, That the clause be read a Second time.

Mr. Speaker : With this it will be convenient to take the following : New clause 2-- Development Corporation tenants' choice of landlord --

In the period prior to and at the time of a winding-up order made against any development corporation the tenants of development corporation housing stock shall be allowed to exercise a choice of alternative landlord which must include the District Council within which the development corporation is situated.'.

New clause 3-- Transfer of vacant houses to District Council -- At the time a winding-up order is made against a development corporation all vacant houses shall be transferred to the District Council within which the development corporation is situated at a price to be negotiated and agreed upon by the parties involved.'. New clause 8-- Winding up and dissolution of new town development corporations --

30. For Sections 36 and 36A of the New Towns (Scotland) Act 1968 there shall be substituted the following sections--

36.--(1) The Secretary of State shall require the Development Corporation--

(a) to undertake

(i) an environmental audit of parks, woodlands and recreational areas ;

(ii) an audit of all other lands and buildings in the New Town, in their ownership or over which they have superiority rights ; within one month of the Enterprise and New Towns (Scotland) Act 1990 coming into force and shall be completed within four months thereof ;

(b) to make available within one month of completion, the findings of the audits to :--

(i) the regional and district council in which the new town is situated, and

(ii) such other person or body as appear to him to have an interest.

(2) Where the Secretary of State is satisfied that the purposes for which a development corporation was established under this Act have been substantially achieved he may by order (a "winding up order") provide for the winding up of the corporation.

(3) Before making a winding up order the Secretary of State shall consult--

(a) the development corporation to which the order will relate, (

(b) the council--

(i) of the region or islands are, and

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(ii) of each district,

In which any part of the new town is situated, and

(4) A winding up order shall name the day on which the winding up of the corporation is to commence and the day by which it is to be completed and may--

(a) stipulate a timetable for the winding up,

(b) require the corporation to make interim reports to the Secretary of State,

(d) impose such duties, or confer such additional powers, in relation to the winding up as the Secretary of State thinks appropriate,

(e) contain such incidental, consequential, supplementary or ancillary provisions (including provision modifying the effect of any enactment as it relates to the corporation) as the Secretary of State thinks necessary or expedient for the purposes of the order. (5) A winding up order shall provide that the regional and district council within whose area the new towns are situated, shall be entitled to invest, by equity participation or otherwise, in a local development company (set up to own and manage assets of the former new town development corporation within their area).

(6) The Secretary of State may, after such consultation as is mentioned in subsection (3) above, by order vary any of the terms of a winding up order.

(7) An order under this section shall be made by statutory instrument which shall, if it contains provision modifying the effect of any enactment as it relates to the corporation, be subject to annulment in pursuance of a resolution of either House of Parliament.

Application of sections 35 etc. to operators of

telecommunications systems 36A. Section 35, 36B and 36D of this Act shall have effect as if references to statutory undertakers included references to operators of any telecommunications code system and as if for this purpose--

(a) references to a statutory undertaking were references to the running of such a system, and

(b) references to the appropriate Minister were references to the Secretary of State for Trade and Industry.

Consultation by development corporation 36AA. (1) A development corporation shall, before disposing of any of their property, rights or liabilities and before entering into any agency agreements (whether by means of management buy-out agreements or otherwise) in respect of any of the development corporation's functions or services, consult and have regard to representations, related to any proposed disposal of such property, rights or liabilities which may be made by--

(a) Regional and District Councils within whose areas the new town is situated

(b) Scottish Homes and Scottish Enterprise

and shall advertise in a newspaper circulating in the locality any proposed disposals of property and consider any representations relating to it.

Additional power to disposal of property including houses etc.

36B (1) Subject to the conditions set out in subsection (2) below and without prejudice to the powers contained in section 18, 18AA or 18B of this Act, a development corporation may dispose of any of their property, rights or liabilities on such terms (including by way of gift) as they think fit to any person, including (without prejudice to this generality) Scottish Enterprise, the Scottish Development Agency, Scottish Homes, a local authority or a statutory undertaker.

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(2) The conditions relating to the power conferred by subsection (1) above are that the power may be exercised only

(a) with the consent (which may be general or specific) of the Secretary of State, and

(b) during the period from the date of coming into force of the winding-up order until the date of dissolution of the corporations. (3) in granting consent as provided for in subsection (2) above, but also in respect or the period from the date commencement of this section, until the date of coming into force of the winding-up order, the Secretary of State shall ensure that each tenant of any house owned by a development corporation, if that house may be transferred or disposed of to a new landlord, shall have the right to choose that the new landlord shall be one of the following bodies

(a) the district council in which the new town is situated, (

(b) Scottish Homes or

provided that the tenant's choice of landlord is agreed by that body.

Direction and order making powers of Secretary of State 36C.--(1) Without prejudice to the power contained in section 4(2) of this Act the Secretary of State may, in relation to a development corporation which is subject to a winding up order--

(a) during the period from the date of coming into force of the order until the date named in the order as the date by which the corporation is to be wound up (the "winding up date"), give directions (which may be general or specific) to the corporation in relation to the winding up ; and

(b) during the period from the winding up date until the date of dissolution of the corporation, give directions (which may be general or specific) to the corporation.

(2) In the case of a development corporation which is subject to a winding up order the Secretary of State may exercise the power conferred by section 5(2) of this Act without its having to appear to him that there are exceptional circumstances rendering such exercise expedient.

Transfer orders

36D--(1) At any time after a winding up order has been made the Secretary of State may by order (a "transfer order"), made by statutory instrument and subject to annulment in pursuance of a resolution by either House of Parliament, provide for the transfer of any property, rights and liabilities of a development corporation to any person, including (without prejudice to this generality) Scottish Enterprise, the Scottish Development Agency, Scottish Homes, a local authority or a statutory undertaker.

(2) A transfer order--

(a) shall transfer the property rights and liabilities in land including the superiority thereof held on feu or lease or otherwise held, occupied or used at the date this Act is passed or subsequently, by a local authority for the performance of its statutory or other duties or powers or functions to such local authority, on such terms as the Secretary of State may provide in the Order.

(b) may transfer the property, rights and liabilities on such terms (which may include transfer either with or without consideration) as the Secretary of State may provide in the order, provided that no such property, rights or liabilities shall be transferred to a local authority unless there has been prior agreement between that authority, the development corporation and the Secretary of State as to the terms upon which the transfer is to be made.

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Scottish Development Agency, Scottish Homes, a local authority or a statutory undertaker for the purpose, or in consequence, of any transfer made to any such body by virtue of subsection (1) above, and

may contain any such incidental, consequential, supplementary or ancillary provisions as the Secretary of State thinks necessary or expedient for the purposes of the order.

((3) Any property, right of liability transferred to any person by a transfer order shall vest in that person on such date as may be specified in the order.

(4) If a person to whom any land is transferred by a transfer order wishes to complete his title to the land by expending a notarial instrument or notice of title or otherwise, the order shall be deemed to be and may be used as a general disposition or assignation of the land in his favour.

Reduction of liability of development corporation 36E--(1) If the Secretary of State is satisfied that it is expedient, having regard to the provisions of any transfer order or proposed transfer order, that the liability of a development corporation in respect of advances made to them under this Act should be reduced he may, by order made with the consent of the Treasury, reduce that liability to such extent as may be specified in the order.

(2) Section 46(6) of this Act applies to orders under this section.

Grants by Secretary of State 36F--(1) Where the Secretary of State is satisfied that a disposal of land by a development corporation or any transfer of land under a transfer order imposes or will impose a financial burden on the disponee or transferee he may make grants to the disponee or transferee of amounts to be determined by him with the consent of the Treasury.

(2) Where a development corporation is satisfied as mentioned in subsection (1) above they may make grants of amounts to be determined by them with the approval of the Secretary of State and the consent of the Treasury.

Dissolution of development corportion 36G--(1) A development corporation shall, after the making of a winding up order relating them, remain in existence until such date as the Secretary of State, after consultation with the corporation, appoints for their dissolution by order made by statutory instrument.

(2) The date appointed under subsection (1) above shall not be earlier than the date provided for in the winding up order for the completion of the winding up of the corporation.

(3) At a date not later than dissolution a number of houses for allocation to the homeless, as may be agreed by the development corporation and the district council, and failing such agreement, as may be determined by the Secretary of State, shall be transferred to the district council in which district the new town is situated. Financial consequences of winding up 36H --Any surplus arising from the winding up of a development corporation shall be paid into the Exchequer and any deficit shall be defrayed out of money provided by Parliament." '.

Mr. Lang : New clause 9 reintroduces the original clause 30. Interestingly, its content is replicated in a new clause

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tabled by the Opposition and grouped with it, which illustrates the opportunist and frivolous approach that the Opposition took to eliminating the clause in Committee.

For the benefit of the House, I should explain that the clause replaces sections 36 and 36A of the New Towns (Scotland) Act 1968 with a series of new sections on the procedures to be adopted for the winding up and dissolution of the five Scottish new town development corporations. We debated the provisions of the clause extensively in Committee and I will summarise that debate. The clause extends the scope for the development corporations to dispose of their property, rights and liabilities, and empowers the Secretary of State to make directions and orders, including wind-up and transfer orders, for the transfer of property, rights and liabilities affecting the development corporations up to and at dissolution.

It also empowers the Secretary of State to relieve, by making grants, any financial burden imposed by the transfer of corporation property. The clause is essentially enabling, designed to ensure that sufficient scope is left to ensure a smooth winding-up process, consistent with the intent of the architects of the original 1946 legislation. Wind-up has been implicit for new towns since the outset, and it is generally recognised that the new towns, at varying stages of maturity, are reaching the time when wind-up is appropriate and necessary.

We intend that wind-up orders will be made in 1991 for East Kilbride and Glenrothes, and those corporations will be dissolved no later than 1994. Cumbernauld will begin winding up in 1993, Livingstone in 1995 and Irvine in 1996. Winding up will normally take place over three years, after which corporations will be dissolved. It is important to handle this matter sensibly, and we are anxious to maintain the momentum--particularly the economic momentum--established by the towns while they have had special legislative protection and support from the taxpayer.

The economic benefits that the new towns have generated for themselves, for their surrounding areas and for Scotland as a whole are too significant simply to wind up the towns without providing for a smooth transition. In the last year alone, more than 5,000 new jobs were established in the towns, where unemployment rates are well below those of the surrounding areas, having halved in the last three years. Even since we have debated the Bill in Committee, we have had excellent news about Conner Peripherals in Irvine and NEC's expansion in Livingston, I announced Locate in Scotland's annual results earlier this week, in which the new towns played a prominent part. It is intended to make sure that satisfactory arrangements are in place before any corporation is wound up. We have concluded that the most effective way to take forward development in the towns will be through the private sector by way of a local development company, the principal role of which would be to own and manage a portfolio of industrial and commercial assets of the former development corporations and to undertake new property development on a commercial basis as it judges appropriate. In addition, and for a limited number of years, the company will undertake certain public sector functions under contract in the new town area.

A local development company vehicle offers three main advantages. The first is the potential for the introduction of a substantial private sector involvement in the on-going

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economic development of the towns. The second is the disposal of a significant part of the industrial and commercial assets. The third is the assured continuing delivery of certain key

activities--promoting, marketing and support for the attraction of inward investment ; property development ; and business support and advisory services.

Housing is an important issue and undoubtedly one which concerns local residents, so we devoted considerable time to it in Committee. It is clear that the housing argument in the new towns is moving our way. Our support for diversity and variety is just what people want. That is why more than 30,000 tenants have bought their own homes and that is why housing associations are being set up and expanded. I know that district councils and Opposition Members have been quick to press the claims of councils to take over development corporation housing, but there is no sign of a demand among tenants to transfer to district councils. There are many more applications to move from councils to the development corporations. Most tenants--four fifths of them in a recent survey--want to make their choice at wind-up. I agree with them that that is the right time to choose. Our priority now is to make sure that they are aware of the alternatives.

We had a thorough and wide-ranging debate on this clause in Committee. The hon. Member for Clydebank and Milngavie (Mr. Worthington) said :

"There is some cross-party agreement on this issue in that both parties accept the success of the new towns and that at some stage there must be winding-up."--[ Official Report, First Scottish Standing Committee, 27 February 1990 ; c. 439.]

By tabling their own new clause, the Opposition have made it plain that they accept the fact of wind-up.

I should draw attention to one addition in the clause as now proposed. On Second Reading, the hon. Member for Cumbernauld and Kilsyth (Mr. Hogg) specifically raised the matter of the proposed transfer of planning functions from development corporations to local planning authorities. He also asked how and when this transfer would take place. The new clause includes a further technical provision--section 36(3)(e)--for the Secretary of State to have powers to

"revoke any order relating to the development corporation". That provision will allow the special development order for any town to be revoked by the winding-up order and to be an integrated part of the wind-up process. It will not necessarily mean that the revocation of the special development order will take effect at the start of wind-up. The precise timing will be influenced by such matters as the state of readiness of local plans. The availability of this power should, however, facilitate a smoother transition, and to this end we have also added an explicit provision at new section 36(3)(f) allowing the winding-up order to contain transitional provisions.

The new clause is essential to the Bill and to the new, robust free- standing picture of the new towns in Scotland.

Mr. Tony Worthington (Clydebank and Milngavie) : The Minister said that our new clause is the same as the Government's, so the Government should have no problem in accepting our new clause, which asks them to give tenants of development corporations the right to choose to become tenants of the district council if they so wish. I wait for the Minister to say that he accepts that, but clearly he does not.

The Government are denying tenants of development corporations in Scotland the right, given to development

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corporation tenants in England, to transfer to district councils in the 17 new towns that were wound up there. Up to 1984, the Government agreed that development corporation housing should go to the district. The right hon. Member for Ayr (Mr. Younger) was not in Committee on the morning when the Government lost the new towns windup clause, but, on Second Reading, he was clearly under the impression that things were as they were when he was Secretary of State for Scotland.

Mr. Norman Hogg (Cumbernauld and Kilsyth) : My hon. Friend will recall that I attempted to get answers on this matter from the right hon. Member for Ayr (Mr. Younger). Would my hon. Friend care to comment on the fact that the winding up of new towns in England was undertaken when the right hon. Member for Henley (Mr. Heseltine) was Secretary of State for the Environment? Perhaps we could look forward to a more enlightened approach to this wind- up if, between now and the general election, he was to be promoted to glory.

Mr. Worthington : We do not have to wait for the right hon. Member for Henley (Mr. Heseltine) to be promoted, because the new towns will be wound up under the Labour Government, who will give development corporation tenants the right to become district council tenants if they so wish.

Late last year, the Department of the Environment issued consultation papers that gave that right to council tenants. Our view is clear. It is fine by us if development corporation tenants want to do any of the following things : become owner-occupiers, vote to become a tenant of a management buy-out, join a co-operative, join a housing association, become a tenant of Scottish Homes. However, new town development corporation tenants have said overwhelmingly that they want to become tenants of the local district councils. We would give them that choice, but it is denied them by the Government.

Mr. Bill Walker (Tayside, North) : If I heard the hon. Gentleman correctly, he complained earlier that the law in Scotland would be different from the law in England--that was the substance of his comments. If that is so, can he give us an assurance that if there is a Labour Government they will ensure that Scotland has the same laws as England, as they affect the new clause, and also that that would be true of the roof tax?

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