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Mr. Ron Davies: I suggested to the Secretary of State--it was noticeable that he did not respond--that he should follow the example set by his Cabinet colleague, the Secretary of State for Scotland. There is a mandatory scheme in Scotland. I told the Secretary of State that, if he were minded to introduce appropriate legislation, the Opposition would assist its passage through Parliament.

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Sir Wyn Roberts: We are talking about directly elected authorities. Surely there is a tradition in Wales that our elected bodies are responsible, and primarily responsible to their electors.

Mr. Davies: Get away.

Sir Wyn Roberts: I hear what the hon. Gentleman says. Is he referring to the record of Labour local authorities in Wales? Is he not proud of that record? Does he think that there is a great deal to be criticised about the behaviour of his directly elected local authorities in Wales? Does he think that we must take mandatory powers to restrain them?

Mr. Davies: The answer is simple. If the Secretary of State is so concerned about abuse, why does he not do something about it? My party's position is clear. If there are abuses after the next election, Labour will act to stop them.

Sir Wyn Roberts: I am glad to hear that.

There should not, of course, be the abuses that we have heard about. Local authorities are directly elected and they should behave responsibly. The hon. Gentleman and the Labour party clearly have in mind a considerable increase in local authority spending. They are doffing their caps to higher spending. I hope that council tax payers in Wales will take account of that.

We are discussing an important statement for local government in Wales, it being the first for the new unitary authorities. There should be a saving as a result of reducing two tiers of local government to one. I am sure that there will be a reduction in due course. I am glad that my right hon. Friend the Secretary of State has been able to increase the permissible spend by about £85.6 million, or 3.1 per cent., for next year. I am grateful for the transitional funding that he has provided. My guess is that the new authorities will do well and make a good fist of their responsibilities in time.

Unfortunately, the new authorities have a cloud on their horizon in the shape of the Welsh Assembly that has been proposed by the Opposition and confirmed last night by the right hon. Member for Sedgefield (Mr. Blair), the leader of the Opposition. If the unitary authorities are to have their financial allocations decided by the assembly, I can foresee endless troubles ahead. It will be devil take the hindmost--in other words, devil take the worst represented, sparsely populated rural areas.

The equality of treatment secured in Wales by the complicated formulae that are before us will disappear before the massed ranks of the assemblymen from the heavily populated areas. Couple that with the disparity caused by local control of commercial rates, and we have a scene set for civil strife such as we have not seen since the middle ages. If we in the north suffer too much in the proposed scenario, I am sure that we shall produce our Owain Glyndwr, who will take over Caerphilly castle and throw out the robber baron.

The mind boggles at the prospect of the proposed assembly dealing with local government expenditure throughout Wales. Unfortunately, however, the prospect is real enough, as is the unfairness that may result.My right hon. Friend and his officials at the Welsh Office

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hold the balance between authorities. They are there to ensure fairness in the distribution of resources throughout Wales.

I ask a key question, which I hope the hon. Member for Caerphilly will answer: who will perform the function that I have described if we have an assembly to rule us? If the hon. Gentleman cannot answer the question now,I hope that he will at least give it some consideration. The assembly will be an extra tier of government, and extra tiers do not come cheap. It will have to be paid for in some way, probably with money that might otherwise be spent on local Government services, or perhaps on the health service. Both areas are major consumers of Welsh Office money.

If we are to have an all-Wales dimension to local government, there is much to be said for developing the role of the unitary authorities. We have already established by statute the consultative council that has responsibility for local government finance, with which my right hon. Friend the Secretary of State discusses resource issues in advance of a settlement. Possibly these discussions need to be amplified. In that context, perhaps there should be greater scope to deal in more detail with specific responsibilities such as education or social services. That is one possibility. It would not be impossible to devise a similar forum for the health service.

We carry responsibility. Whatever happens in local government must be reconciled with our parliamentary system, which must always have ultimate responsibility to the electorate. We would be foolish to try to escape that responsibility by foisting it on others.

We shall hear a great deal about particular needs that should be met, and needs that will have to be paid for.I was delighted to hear the announcement by my righthon. Friend the Secretary of State about Theatr Clwyd. We must remember that those who demand more spending object to council tax increases in the same speech, and almost in the same breath. More expenditure seems to be fine providing that someone else is paying for it. I hope that that is not our approach in our private lives. Unfortunately, it is one that some of us seem to regard as acceptable in our role as public advocates.

The settlement is fair and as sound as we could wish it to be. It represents a challenge to the new authorities to secure good value for the money that the Government, through the taxpayer, have given them.

5.19 pm

Mr. Barry Jones (Alyn and Deeside): I am glad to follow the right hon. Member for Conwy(Sir W. Roberts), but I disagree with his master classes. My speech will be briefer than his.

There are many large aging council estates in my constituency and they need urgent regrading, upgrading, modernisation and repair. Built before and after world war two, they are in real need of investment. In the townships of Buckley, Saltney, Shotton, Garden city and elsewhere, windows, doors and roofs are rotting away. My constituents increasingly despair of the situation. Alyn and Deeside district council has a good housing record, but its problems, as I have seen when visiting the localities, are very real indeed, and the new Flintshire county council will inherit them.

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The terrible cold and ensuing damp, and the mountainous snow and a chilling cold wind have turned my constituents' homes into iceboxes. The cold is literally making some of my constituents who are trapped in their houses ill. I know of distraught mothers who feel that they cannot let their youngsters sleep in bedrooms that are without central heating. The wind and frost penetrate their rooms. Mould grows on the walls of the bedrooms and ice forms on the windows.

Any youngster prone to asthma or any bronchitic disorder does not need those conditions, and neither do elderly tenants who are prone to arthritis. Hundreds of my most respectable constituents dread winter's advance, particularly after the terrible weather that we have had. They are in severe difficulties. In less serious conditions, I have received petitions from constituents in the townships.

Will the Secretary of State give serious consideration to the release of council house sales receipts that have accrued in my local authorities, as the authorities wish to invest them only to bring relief to the beleaguered families that I have described? It would be a powerful intervention if the right hon. Gentleman did that. If he does not do that now, will he do so in the near future?

In terms of the schools service, will the Secretary of State undertake to fund the teachers' pay settlement in full? If he were to say that he will do that, the new unitary authorities would be more confident that they could tackle the real problems that they know that they will inherit.I do not wish to see emergency meetings of school governors and parent-teacher associations desperate to bail out their local schools from the financial problems that they envisage. Nor do I want pupils with special needs to lose. I note the point that my hon. Friend the Member for Caerphilly (Mr. Davies) made. All of us could give examples of these problems.

I do not want any youngster with special needs to lose as a consequence of the defects of this settlement.I do not want even more pressure to be put on class teachers, who are groaning under the incessant demands of Ministers issuing their latest and ever more demanding curriculum fiats. It is time for Ministers to stop putting the pressure on class teachers. They do a good job. They are doing their best, and the Government have gone too far. Stability is needed and it is time for the Government to rest their case for further change. The morale of class teachers is very low, so the chance of our children getting the best start in life is diminished.

It is the fate of the new unitary councils to start their uncertain lives desperately short of money. It is a very cynical scene that they inherit.

Mr. Nigel Evans: Will the hon. Gentleman give way?

Mr. Jones: No, I hope to conclude shortly.

It is a cynical scene. Grants will be cut. The council tax is certain to go up, and will do so in a big way. Services to our constituents--the taxpayers--will be cut. Labour Members know that Ministers on the Treasury Bench have not delivered a top-class financial settlement. We believe that they must take responsibility for these serious shortcomings, and at the very least, to help our new councils, undertake to pay the teachers' salary increase in full.

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In an election year--that is what we are looking at in the new financial year--the Government expect the councils to carry the blame for the large increases in council tax. In my view, the new Flintshire county council deserves better from the Government, and the large-scale increases in the council tax will surely be seen at home in our constituencies as the consequence of inadequate ministerial allocations.


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