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Mr. Michael J. Martin: Would it not be best if the Minister and the Secretary of State met Councillor Gould and Councillor Young to talk these matters over?
Mr. Kynoch: If the hon. Gentleman wishes to put together a delegation to see my right hon. Friend and me, we will be only too happy to meet them. Now that Glasgow is on its own, it is clearly in the interests of those in the city who pay their bills and of the council that every effort is made to bring payment levels more into line with the position in the rest of the country.
For example, I understand that Glasgow council is assuming a 90 per cent. level of payment, which compares with a payment assumption of 94 per cent. for the whole of Strathclyde, and 88 per cent. for Glasgow in the current period. If Glasgow were to increase its assumed payment rate by 5 per cent. to 95 per cent.--which is the existing level in Edinburgh and Dundee--the tax increase would be reduced by some £50. If it actually reached the level that is pertinent in Aberdeen--which is 97 per cent.--the tax increase would be reduced by some £70.
Mr. Wray:
Will the hon. Gentleman give way?
Mr. Kynoch:
No, I will not--the hon. Member for Springburn has secured this debate, and I wish to address the points that he raised.
While I do not deny that the new Glasgow council faces a range of difficult decisions, the truth of the matter is that, within an overall favourable settlement, it has been treated generously. It has scope to increase spending next year by £40 million--or almost 5 per cent.--and it has received by far the highest per capita level of AEF of all the new mainland councils. Its special difficulties have been recognised by the provision of almost £31 million from the mismatch transitional scheme.
The council could receive more money only by increasing the overall local government settlement, at the expense of other Scottish expenditure programmes; or by skewing the distribution even more in Glasgow's favour, at the expense of other Scottish councils.
Reference was made to savings. I say to the hon. Member for Springburn that, on the radio, I heard a councillor from Glasgow refer to £500,000 being spent by the council on a celebration of the centenary of the Scottish Trades Union Congress. I question whether that is wise funding at a time when Glasgow is crying out that it is short of funds.
In the light of all that I have said, I do not think that there is justification for either of the steps that I have talked about. The council must use the resources that are available to it in the most effective and efficient way. I ask the councillors to be responsible in setting their budget, to think of the council tax payers, and to look at the cost-effective delivery of service. I hope that a budget will be set that is sensible and reasonable for the people of Glasgow.
Question put and agreed to.
Adjourned accordingly at fifteen minutes to Eleven o'clock.
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