| Previous Section | Home Page |
Mr. Michael Connarty (Falkirk, East) : It is a strange irony that I am standing on the Floor of the House tonight. I recall sitting in the Gallery 13 years ago when I was leader of Stirling district council. The Government were using the draconian powers of the "excessive and unreasonable" clause to bring down Stirling district council's rate of expenditure nearer to the level that the Government found acceptable.
The Minister might reflect on the fact that after that exercise had been carried out, at the next election the electorate increased the Labour majority on Stirling district council. People in Scotland know what has been happening for the past 13 or 14 years. They know that the Government are intervening to give themselves a majority on every council in Scotland, regardless of the voting patterns and choices of the people. They are doing so in spite of the rhetoric about the people being given a choice and being allowed to assess their councils--
Mr. Gallie : Will the hon. Gentleman give way?
Mr. Connarty : No, I shall not give way. The hon. Gentleman's previous interventions have been appalling and I do not intend to accept one from him.
The Government then were underfunding local authorities, and that is what this order is about--the continued underfunding of local authorities. Throughout the 1980s, local authorities had problems because the Government were placing on them many additional duties, such as those to which my hon. Friend the Member for Monklands, West (Mr. Clarke) referred.
Benefits adminstration was shifted solely on to local authorities without proper recompense. Increased environmental health duties were placed on them without adequate funding. With the passing of the Civic Government (Scotland) Act 1982, the Secretary of State shifted the paraphernalia of unnecessary and unwanted bureaucracy on to local authorities. The conclusions of the Stodart report also placed extra burdens on local authorities for, among other things, tourism.
Column 392
Every time the Government came up with their rate support grant settlement, as they are doing tonight, they said that they had provided adequate funds. They fiddled the figures and talked about their level of inflation and other levels of inflation, but they did not give adequate funding to local authorities.In the coming year, local authorities, especially their social work departments, will face the massive burden imposed by community care. It is grossly underfunded. As yet, it is unclear what will happen in one important aspect of the transfer of responsibilities : what payments will have to be made to keep people in residential care? The cost will fall either on the local authorities, which tell me that they do not have the funding and that the revenue support grant does not provide adequate funding, or on the families.
Families might have to pick up the tab for the extra costs of keeping their loved ones in residential care where they are currently being well looked after. At the moment, some of the responsibility for the cost involved falls on the Government, but that will not be the case after the transfer of responsibilities.
Occupational therapy services, even in the region which takes in Kincardine and Deeside, cannot afford enough people to carry out a proper survey of a person's need, sometimes even within six months. For example, they cannot give people a shower because they do not have the physical resources. It has already been said that they cannot supply adequate home help care.
Such problems will continue because the revenue support grant settlement does not take into account the aging of the population. That portion of the population requires more care, but the Government are throwing those people out of the health service's care. I have been told by health board representatives that the welfare of elderly people is no longer regarded as being a health matter but is a social concern. If that is so, the Government should be transferring resources in the revenue support grant settlement to allow local authorities to look after those people properly and give them the social care that they deserve.
Education departments are straining to maintain their morale, and I commend them on remaining motivated. I do not know how they manage it, because they have been burdened with one idea after another. Some ideas have been good, such as the five to 14 proposals. The Minister will know of the burden that has been placed on local authorities by that initiative, but local authorities do not have the resources to make the changes required of them. Many other tasks that local education authorities are being asked to perform, such as testing, are diversions. They need funding to carry out the initiatives at the regional level, to continue to develop standard grades and to continue a commitment to nursery education.
It might be notable that, under the Clinton Administration, there is a proper commitment to the Head-Start programme. The lessons from the previous programme proved that giving a child a proper education as early as possible will bear fruit in the teenage years. Youngsters stay on in education, provide the skills that we need and go on to become the technicians who will develop our future. One hopes that they will be able to pay for the retirement of those who cannot salt away money in a decent private pension fund, as many hon. Members probably can, but rely on state benefits that come from the taxation borne by the new productive industries.
Column 393
In my region, the cracks are beginning to show. I know of two advisers in the education department who have recently returned to being head teachers in primary schools. They wanted to get out of the advisory service, making it clear that what they were being asked to do was necessary but impossible because of the resourcing and funding from the Government for the very initiatives in which the Government encouraged them to participate and to develop.In district councils, where I spent 10 years, the staff used to have a vision of leisure and recreation providing an alternative for people who hung around the streets, selling drugs, getting into trouble and doing all the things about which the Government complain. That vision is now very dulled by the mud that has been thrown at it by the Government in many ways, one being a level of revenue support grant settlement which means that local authorities cannot provide the leisure development officers who are required to get young people into leisure centres and make them realise that there is an alternative to hanging about on the streets.
I began by saying that 13 years ago I was in the Gallery when the Government had to use the "excessive and unreasonable" clause to bring down local authorities' budgets. At that time, people could see what an authority stood for when it had a decent level of budget. They could also see what the Government stood for when they reduced each authority's spending with a single order.
Now, it is all done by sleight of hand. Capping is up the Minister's sleeve --he wears a soft glove but there is an iron hand underneath. Local authorities are not allowed to do what the Government said that they would allow them to do, which was to set their budgets, and say to the people, "Elect us if you want to elect us, and put us out if you don't like our budget." The Government have walked away from that promise despite their warm words about the poll tax : they said that everyone would pay and would be individually responsible for choosing the membership of the local authority that they wanted. However, the Government did not want people to choose, which is why they introduced rate capping before the rate support grant order.
The world is now a different place from what it was when Labour were in power. Page 49 of the latest "Scottish Economic Bulletin" shows that in 1980 unemployment in Scotland was 6 per cent. It has gone up and down since then, but has never been below 8 per cent., and the latest figure is 10 per cent. Everyone knows what massive problems that causes for people on social welfare. The lack of jobs causes demotivation among fathers and young people.
There are problems out there, but the Government are not willing to provide an adequate revenue support grant settlement. Let the people choose the level of local authority service and expenditure. The Government are guilty, in the eyes of the Scottish people, for not doing so, as are those, like the hon. Member for Kincardine and Deeside (Mr. Kynoch), who supported them. The expenditure of the hon. Gentleman's local authority is 35 per cent. below the guideline set by the Government. The hon. Gentleman should apologise for that, and the Government ought to apologise for this impoverishing revenue support grant settlement.
Column 394
8.30 pmMr. Bill Walker (Tayside, North) : The hon. Member for Falkirk, East (Mr. Connarty) typifies the difference between the Opposition and the Government.
Mr. Connarty : The hon. Gentleman will recall that when I was the leader of a local authority we had occasion to engage in a debate in Perth. My recollection is that he told young people that they should be grateful for the scab YTS jobs that they were given in Gleneagles. So far as I know, the hon. Gentleman has not served in local government and does not know what it is like to work on the ground to provide people with services, rather than sit here and pontificate.
Mr. Walker : The hon. Gentleman seems to think that the only thing qualifying people to take part in a House of Commons debate on any subject- -local government or otherwise--is to have done the job himself. I shall not forget that, as the hon. Gentleman is inclined to speak on many topics of which he has no experience at all.
Mr. Kynoch : Does my hon. Friend agree that one of the qualifications entitling Members of Parliament to speak about local government is that Parliament provides its funds?
Mr. Walker : Yes, indeed. The hon. Gentleman and his friends believe that there is virtue in simply spending money. As has been demonstrated very clearly in Kincardine and Deeside, virtue lies in providing a service at the lowest possible cost to the taxpayer and those who make their 14 per cent. contribution--or whatever tiny proportion it will turn out to be.
I am rather sorry that the hon. Member for Monklands, West (Mr. Clarke) is not now in the Chamber. I do not say so critically, as we all require sustenance in a long day here. I simply want to say that I am delighted that the hon. Gentleman is back on the Opposition Front Bench, in combative form. I should have liked to be able to say so to his face, rather than in his absence. The hon. Gentleman, like many of his colleagues, has a very selective memory. Opposition Members forget the traumas of the last Labour Government--for example, the problems created by the IMF.
In addressing the problems that face Tayside, Perth and Kinross and Angus district, I remind the Minister of matters that I have put to him and to his ministerial colleagues. I refer to the storm and flood damage sustained in my constituency and in the neighbouring constituency of Perth and Kinross. This matter was referred to also by the hon. Member for Monklands, West. The Bellwin formula, while it is useful in most circumstances, is not the answer in every case. I believe that the River Tay is unique in that the volume of water and the speed at which it moves are greater than in any other river in Europe. The unique problems of the Tay require unique answers.
Mr. Foulkes : I am grateful to the hon. Gentleman for giving way. No doubt, he is keen to be helpful to me, as I arranged for him to reply for the Government in a debate last night.
The hon. Gentleman is making an eloquent plea--I heard him do likewise on the radio--for public funds for people suffering from a natural disaster in his own area. As the hon. Gentleman would expect, I support that stand, since it accords with my philosophy. But the argument that
Column 395
he is putting forward on behalf of his constituents is out of tune with his own philosophy. In his introduction he said that money does not solve these problems. He wants to cut expenditure. He wants people to stand on their own feet. Why does he think that his constituents who suffered in this way should not have been properly insured, that they should not take care of their own liabilities, that they should not stand on their own feet? Why are they special?Mr. Walker : As always, the hon. Gentleman is being very selective. I defy him to suggest that I have ever said that public money ought not to be used to meet particular needs. This has been the basis of my whole political career, such as it is--and I was very grateful for the opportunity to make a winding-up speech. The plain fact is that the taxpayer is constantly called upon to contribute towards satisfying specific needs once they have been clearly identified. That does not mean some kind of blanket arrangement, which is why I deliberately used the word "unique" in reference to the Tay. If the Tay were in the hon. Gentleman's constituency, I should still think that the problems were unique.
Mr. Foulkes : In my constituency are the Rivers Doon, Stinchat and Girvan, all of which create problems. The Spey, too, is a very fast river, which creates difficulties. I believe that the hon. Gentleman is stretching a point. My hon. Friend the Member for Monklands, West (Mr. Clarke) put forward a very good argument in respect of a whole range of services, including education and social work, and he referred to the new responsibilities that have been assumed by local authorities. I support the hon. Gentleman in putting forward arguments on behalf of his constituents. Surely he, in turn, ought to support the arguments put forward by my hon. Friend the Member for Monklands, West.
Mr. Walker : Again, the hon. Gentleman has got it all wrong. We are already spending much more than he or his colleagues will acknowledge, but we are not getting the best possible value. Expenditure could be more constructive and more useful and could produce better results. As time is limited, I do not intend to go into detail on that matter.
The Tay requires a special detailed survey--something for which I have already made a plea. Such a project will cost money, but we hope that it will demonstrate how the river could be managed more effectively during periods of spate and flood. The hon. Gentleman seemed to imply that I expect the largesse to extend to everybody who is affected. That is certainly not the case.
However, the Perth and Kinross local authority has special problems. There has been difficulty in my constituency, and there has been substantial difficulty in the neighbouring constituency of Perth and Kinross. The question of the Bellwin formula must be looked at carefully. It is rather nonsensical that one bank of the River Tay qualifies for less-favoured area status, whereas the other bank, which is owned by the same person, does not. That makes a difference to the amount of public money that goes towards repairing the flood banks. The flood banks are there to protect people and property, not for the benefit of any individual.
Mr. Eric Clarke (Midlothian) : We are talking about the expenditure of money. The hon. Gentleman wants one-off expenditure on a barrier to ensure that flooding will not
Column 396
occur again. That is common sense, and in that respect, I am with him 100 per cent. However, money spent on patching a road or a roof, rather than repairing it, is wasted. Local authorities are asking for resources to do a multitude of such things. The way that you look at it, public expenditure cuts are sacrosanct. Those are things that you--Mr. Deputy Speaker (Mr. Geoffrey Lofthouse) : Order.
Mr. Clarke : I am sorry, Mr. Deputy Speaker ; I should have said, "the hon. Gentleman". The point is that we are on your side. We are with you on this one.
Mr. Clarke : I am sorry, Mr. Deputy Speaker. I meant that we are with the hon. Member on this one.
Mr. Walker : I thank the hon. Gentleman, but I do not want there to be any confusion about the narrow case that I am making. The situation is unique and calls for a unique answer. I do not want my argument to be seen as a rubber stamp or a blanket authority for across-the-board expenditure.
I drew attention to the fact that the case required a single in-depth inquiry. I agree with the hon. Member for Midlothian (Mr. Clarke) about patching. One of the results of patching on the banks of the Tay and elsewhere, as we know from the experiences of 1990 and 1993, was that the river had its way. Anyone who understands the situation will realise that the water has to go somewhere. The problem has to be properly tackled. There is a great need for an in-depth inquiry if we are to find answers.
I can tell the Minister that if I lived in California instead of North Tayside my neighbours would be delighted to store all that water. They would find a use for it, because there is a dearth of water in California. Some areas of the United Kingdom have recently been declared drought free and, as I said in the Scottish Grand Committee in Edinburgh, when we were talking about what might happen to water authorities, there is plenty of water in North Tayside. If anyone wanted to go there with a bucket or a bowser he could take it away, and it would be free.
Mr. Gordon McMaster (Paisley, South) : The hon. Gentleman has made a lucid and rational case for investment in the suggested study of the banks of the Tay. The Opposition support his efforts, but I must tell him that a far smaller number of houses in Park avenue, Paisley have experienced flooding over a number of years. The residents of those houses--I believe that there are about a dozen houses--have often had to move out, at substantial cost. I convened a meeting with all the authorities--the district council, the regional council and there was even someone from the Scottish Office--a year ago. Yet those residents are expecting their houses to be flooded again this winter. I shall support the fight of the hon. Member for Tayside, North (Mr. Walker) for the people of Tayside if he will support me in my fight for the far smaller number of people in Paisley.
Mr. Walker : Let me make it clear that I am not talking about simple flooding, which occurs throughout the whole country when rivers rise above their normal level and flood properties, and when there is a backflow from the outflows, or whatever. Such problems must be addressed ; I am not ducking the issue. I am talking about what happens when a river is flowing faster than any other river
Column 397
and with a greater volume of water. The damage done by water moving at that speed is horrendous. Whole farms are wiped away ; the topsoil is removed and when the river finally subsides, there is nothing left. That is quite different from the kind of flooding that occurs in many other areas.Several hon. Members rose --
Mr. Walker : Other hon. Members wish to speak. I have tried to let in as many hon. Members as I could, because I believe that that is often the only time that Opposition Members get the opportunity to raise their constituency problems. That is why I give way as often as I do.
I want a single body to have the authority to deal with the problems of the Tay sensibly and logically. I know that that will require specific funding and allocations. I hope that the Minister will tell me tonight that the Scottish Office is considering sympathetically my suggestion as a special one-off, unique case, which should be dealt with accordingly.
8.44 pm
Mr. James Wallace (Orkney and Shetland) : As in the past, the hon. Member for Tayside, North (Mr. Walker) has expressed eloquently his case for special funding. I endorse his plea, but when he responded to interventions the hon. Gentleman failed to grasp the point of principle at issue. The facts of nature make the banks of the Tay and its banks the way they are, and that leads to damage to people's livelihoods, farms and well- being. In the same way, the ravages of age and disability, for example, mean that some people need home helps or sheltered workshops. Yet the hon. Member for Tayside, North seems to have a mental block about that kind of local government expenditure. He shakes his head, as if to say no, but he usually seems to approve of such expenditure cuts, which often mean that home helps are not being provided and sheltered workshops are not being built. Those issues inevitably arise in debates such as this. The hon. Member for Kincardine and Deeside (Mr. Kynoch) said that the Convention of Scottish Local Authorities said that 3.2 per cent. could not be regarded as unrealistic. I believe that the Minister said that the sum was somewhat larger. It was said that, with inflation at 1.7 per cent., that was reasonable. But we are talking about a level of grant that has to last throughout the forthcoming financial year. I do not think that the hon. Member for Kincardine and Deeside could put his hand on his heart and tell us that inflation will still be at 1.7 per cent. next February. According to the Bank of England report today, that would be an optimistic assumption ; 3.5 per cent. might not look so rosy in 12 months' time.
Mr. Kynoch : The hon. Gentleman obviously did not hear the rest of what I said. I said that, as wage increases represent 60 per cent. of local government costs, if they were restrained and ranged from nothing to 1.5 per cent., that would leave up to 4 per cent. or even more for other expenditure. That would take account of varying inflation over the coming year.
Mr. Wallace : It may even be optimistic to imagine that inflation will be 4 per cent. in 12 months' time. The hon. Gentleman leaned so heavily on COSLA's comments he should have regard to the fact that COSLA said that
Column 398
reductions in services were still likely as a result of the settlement. That is because we are talking not about a one- off arrangement but about a background of 14 years during which local government has been asked to cut expenditure.The Minister said that he expected more efficiency savings, but there comes a time when one cannot save any more. There may be some items in the budget that can still be investigated ; perhaps some functions can be performed more efficiently. But the Government have failed to recognise that there comes a time when there is no more fat left ; they are eating into muscle. At that point services are threatened. Repairs and maintenance in schools are not carried out, and children have to learn in circumstances and surroundings that are not conducive to learning. In the past, I have tabled questions whose answers revealed the diminishing amounts spent in real terms on school books. When I was at school pupils had a book each. Now it is common practice for books to be shared, which makes homework difficult.
An increasing number of responsibilities have been placed on local authorities. The Minister responsible for industry and local government in Scotland is present, so perhaps he can tell us how many more responsibilities were placed on local government as a result of the Environmental Protection Act 1990. I do not dispute the fact that many of those responsibilities were appropriate, but so often the resources to implement the new responsibilities do not match the task.
There are particular concerns in my constituency. In Shetland the reduction in aggregate external finance this year will be 10.3 per cent., and that follows a reduction last year. Inevitably, that must mean that there will be either a significant hike in council tax, or other local government taxation, or a cut in services. The original brief for the special islands needs allowance contemplated the possibility that it might not continue, so the fact that it is to continue is welcome. We wish to acknowledge that fact, and put it on the record.
One issue involved the resources that the two local authorities in the isles had built up not only as a result of prudent management over the years but from oil-related income. I understand now that while local authorities cannot dip into special funds to meet expenditure, they can do so to defray council tax. People will ask why local authorities which have been prudent in the past, and which have managed to build up special funds, should be expected to use those funds because Government have not provided sufficient to them otherwise to meet their responsibilities.
The hon. Member for Monklands, West referred to non-payment of the community charge. I share the views of Conservative Members that those who went about encouraging people not to pay their community charge did considerable damage to local government in Scotland. Those who have to bear the cost of that through the subsequent increase in community charge are the honest, law-abiding citizens who pay their tax and those who suffer because of services not being provided.
Mr. Maxton : I agree with the hon. Gentleman. I never argued in favour of non-payment campaigns. But if the whole responsibility for non- payment of poll tax was placed on those who propagated that idea, it would be
Column 399
misleading. The tax was uncollectable from the start. The problems were built into the tax and it should never have been introduced.Mr. Wallace : That was partly recognised because 100 per cent. collection was never expected. Various factors were involved. The mobility of people was much greater than anyone had imagined. Also, in some cases it was not a matter of "can pay, won't pay" but that people could not afford to pay the tax.
The Minister knows that I am a fair person and will take the rap if I am wrong, but I understand that if a person does not pay, for whatever reason, and if that person would have been entitled to a rebate, the Government do not pay the amount of the rebate to the local authority.
Mr. Foulkes : It is a double whammy.
Mr. Wallace : It is a double whammy, perhaps. The local authority is not getting the money from the individual ; in addition, it is not getting the money which it would have got from central Government if the person had paid the tax. In the first nine months of this financial year almost £0.5 billion of community charge is unpaid. The Government contribution relevant to that could be a sizeable amount. Perhaps the Minister could indicate how much he estimates the Government have saved because people have not paid their poll tax. Local authorities would be interested in knowing the amount by which their resources would have been increased if the Government had paid their share. The Government could pay, but I think that they, too, are adopting the line of "can pay, won't pay".
The problem in local government finance is that, because of the gearing effect, almost 90 per cent. of council spending is determined by central Government. If a local authority wants to incur expenditure, the impact is proportionately very high on the council tax and, because of the capping powers of the Secretary of State, the amount of discretion afforded to local authorities has become less and less.
We believe in the system of local government finance based on a person's ability to pay. In that case there would be scope to increase the local base for raising revenue. If Ministers are sceptical about that, it comes ill from a party which at the last three general elections gave tax bribes to ensure that it would win. We believe in a simple proposition that may be too radical for the Government. Local government finance should be arranged in such a way that local authorities, elected by local people to make decisions in respect of the local community, should be accountable to the electorate for those decisions, including decisions on spending. That proposition is perhaps too radical for the Government, but it would enhance the quality of local authorities throughout Scotland. 8.54 pm
Mr. Phil Gallie (Ayr) : I wish to comment first on the remarks of the hon. Member for Monklands, West (Mr. Clarke), who refused my second intervention. I do not criticise him for that ; he was good enough to allow me to intervene once.
The hon. Gentleman listed matters for which he thought a Scottish assembly should be responsible. Some Opposition Members have suggested that a Parliament would be more in line with their views, but I will comment
Column 400
on that later. The hon. Member for Monklands, West suggested that education, roads, social services and planning should fall within the remit of a Scottish assembly. Those services are all looked after by local authorities. The hon. Gentleman seemed to be offering devolution in reverse by passing to the centre responsibility for issues already catered for locally.Mr. Foulkes : The hon. Gentleman shows a lamentable ignorance of the proposals. The proposals are for devolution of legislative powers for education, housing, local government and so on. The proposals are for devolution of the legal framework for those services, not their administration. Administration would remain, as at present, with local government. The hon. Gentleman shows a fundamental lack of understanding. He displays an ignorance which shows us why he does not understand anything about Scottish devolution.
Mr. Gallie : I am not sure what I am not supposed not to understand. Is it the policy for a Scottish convention? Is it the policy for a Scottish assembly? Is it the policy of the Labour party that I am supposed to know about? Is it the policy of the Liberals, or that of the Scottish National party? Each of those groups has different ideas. They are a hotch-potch ; they are crazy ideas. The hon. Gentleman is trying to kid us if he makes out that there is some structure that we should all be aware of.
Mr. Foulkes rose--
Mr. Gallie : No, I am not giving way. The hon. Gentleman had his opportunity.
As the hon. Member for Monklands, West said, the vote at the last election suggested support for Scotland's place within the Union and support for an assembly. There are two interpretations of the consequences of that vote. The hon. Member suggested that 75 per cent. of the population voted for a Scottish assembly. My interpretation is that 78 per cent. of the population voted for Scotland's place within the United Kingdom. I strongly believe that the parties of the Union must take on board the fact that an assembly would be nothing more than a stepping stone to the break-up--
Mr. Deputy Speaker : Order. I have listened patiently, but I have not heard much about local government. Will the hon. Gentleman please get back to that subject?
Mr. Gallie : I accept your ruling, Mr. Deputy Speaker, and I shall come back to the topic. I was simply trying to pick up points raised by the hon. Member for Monklands, West.
The hon. Member for Falkirk, East (Mr. Connarty) criticised Kincardine and Deeside for spending at below Government limits. Voters in Kincardine and Deeside elect local councils to do just that. They fully recognise that the community charge that they have to pay relates to council expenditure. Obviously they do not favour paying high community charges, so they elect councils that are financially responsible. Instead of criticising that council, hon. Members should commend it.
The hon. Member for Falkirk, East also suggested that Labour party policies served people especially well in Stirling district. My recollection--I stand to be corrected--is that Stirling district is now a Conservative-run council.
Mr. Maxton : It was decided on the toss of a coin.
Column 401
Mr. Gallie : As it was when Labour ran the district.
The revenue support grant has three elements. The first is aggregate external financial support--RSG and business rates combined--which totals £5.165 billion. As the Minister suggested, the figure for Scotland is 47 per cent. higher than the equivalent figure for England. The total allowable expenditure for local authorities in the coming year is £5.8 billion. That means that the council tax has to make up the difference of £6.35 million, which is 11 per cent. of the total expenditure of local authorities. The Government have thus been very generous to the new council tax payers. I suggest that that is far fairer than the demand when the community charge was introduced. Payments then were based on a 14 per cent. contribution. If some of the new ideas for the introduction of the council tax, which is about to descend on us, had been introduced with the community charge, we might not have had to make the change. [ Hon. Members-- : "Like what?"] Like what? We do not now demand 20 per cent. payments for those on benefit as we did for the community charge. The 20 per cent. banding payment has been removed for the new council tax. It was almost certainly a mistake to look for payments on a per head basis without tying payments to the point of abode and without looking for a collective payment from that door. Such lessons have been learnt only in retrospect, and I regret that.
In the coming months, many who will be asked to pay the council tax may regret the passing of the community charge. They have been the silent members of the community until now.
I have said that council tax payments will be 11 per cent. of total expenditure. I also see figures between £200 million and £250 million, which will almost certainly come from the rebate system, especially as the 20 per cent. banding will be removed. That means that only 7 per cent. of local authority funding will be paid directly by council tax payers.
Mr. Maxton : I accept what the hon. Gentleman is saying about council tax rebates. The real problem with the discounts for council tax payers is that that cost will not be borne by central Government : it will be borne by the other council tax payers in the area. There may be a fair number of second homes, which have a 50 per cent. discount, in the hon. Gentleman's constituency. That 50 per cent. discount will be paid for by the hon. Gentleman and his constituents, and not by central Government.
Mr. Gallie : I do not believe that there are many second homes in my constituency, so the problem does not really arise. I recognise, however, that, in many areas--especially in the constituency of the hon. Member for Cunninghame, North (Mr. Wilson)--second homes were a problem when the community charge was introduced. Therein lay another problem with the implementation of that charge for local authority services.
Another problem arose because the Government were not prepared to cap local authority spending on the introduction of the charge. In effect, that meant that local authorities spent beyond reasonable levels and blamed the Government and the community charge for the high cost to the community charge payer. I am pleased to note that the Government have learnt that lesson in time for the introduction of the council tax.
Column 402
Mr. Gallie : A roof tax was something that was in the Opposition's minds. I hold no brief for property taxes, but I believe that the council tax is the best of such options, and I support it on that basis.
Let us look once again at the rate of revenue support grant in the current year. I must draw attention in particular to the added injection of the community care allowance--some £63.5 million. I welcome the community care ideal, as do most people in the community, but I ask my hon. Friend the Minister to take careful note of what I have to say. I understand that there may well be problems of ring fencing in Scotland, but it is important that the new cash injected finds its way into the community care programme. I seek my hon. Friend's words of comfort on that.
Mr. Chisholm : The hon. Gentleman speaks highly of the community care settlement. Does he realise that a study by Lothian region shows that, throughout Scotland this year, there will be a £9.5 million care gap between the amount of money given and the amount that will have to be paid for services? Does he further realise that, when all clients are covered by local councils, that care gap will widen to £63 million? A £9 million care gap would add £5 and a £63 million gap £40 to a band D council tax payer's bill. Surely the settlement is somewhat inadequate.
Mr. Gallie : The hon. Gentleman's comments do not surprise me, especially as they are based on the findings of Lothian regional council. In my experience, whatever aspect that body is considering, it always envisages a need for more money.
The allowances give a 3.2 per cent. increase across the board--above the rate of inflation--to local authorities. If one adds in the community care component, as my hon. Friend the hon. Member for Kincardine and Deeside (Mr. Kynoch) suggested, that raises the level to 4.1 per cent.
One important issue seems to have been ignored in the documents, and that is the effect of falling interest rates. Will my hon. Friend the Minister address that point and advise me what benefits local authorities will achieve as a result of the fall in interest rates that we have experienced, especially in the past six months? I do not think that the papers take account of that fall, which I think will place extra money in the councils' coffers.
The Convention of Scottish Local Authorities document refers to the non- collection of the community charge. In that respect, I am pleased to identify myself with the words of the hon. Member for Orkney and Shetland (Mr. Wallace), who referred to difficulties that were initially encouraged by Opposition Members when the community charge was imposed. People were encouraged not to pay, and inevitably the collection rate fell. The situation got worse. In the first year, there was a 12 per cent. non- collection rate, which fell to 18 per cent. in the second year and 20 per cent. in the current year. That is changing, because people are being pursued. I should like the Under-Secretary of State to give me some assurance that those who have deliberately avoided paying the community charge will be pursued until every last penny is paid into the coffers of the local authorities which are entitled to that cash.
I pay tribute to the council of the Western Isles. Last week, I was privileged to visit the Western Isles with the Select Committee. I was most impressed by the attitudes of the councillors. I expected to hear complaints and whining
Column 403
about the problems of the Bank of Credit and Commerce International, but I heard nothing but positive views. I understand the problems which the councillors face. I would ask the hon. Member for Western Isles (Mr. Macdonald) to return my good wishes to the councillors. I trust that they will do well in the coming year with the rate support grant.I should like to refer to the new administration of the Kyle and Carrick district council. That council inherited an horrendous budget. The previous council had overspent, and the budget was totally out of control. The new council did not wait until the rate support grant announcements were made to take action ; it tackled the issue from the day it was elected in May 1992. It has made good progress.
I believe that the Under-Secretary of State will have no worries at all in having to cap Kyle and Carrick district council. That would not have been the case if another party had been in control of the council.
| Next Section
| Home Page |