| Previous Section | Index | Home Page |
6.26 pm
Mr. Paul Burstow (Sutton and Cheam): I beg to move, To leave out from "That" to the end of the Question, and to add instead thereof:
- "this House, while welcoming the repeal of Part 1 of the Local Government Act 1988 concerning compulsory competitive tendering, declines to give the Local Government Bill a Second Reading because, instead of creating a system of local government that is powerful and free, it grants comprehensive powers to the Secretary of State over local government, amounting to the nationalisation of local government, it creates a culture whereby local government is more concerned with the requirements of Whitehall than the needs of local residents, it retains and incrementally increases capping, thus blurring accountability for Council Tax and service levels, it fails to grant a power of general competence to local authorities, and it alters the way in which Council Tax Benefit subsidy is paid in such a way that poor Council Tax payers will pay for the benefits of the poorest Council Tax payers."
We share the view expressed by the hon. Gentleman and by several other hon. Members that it is right that the House should have regard for the way in which it has reduced the status of local government over many years--not only during the lifetime of the Conservative Government, but since the war. The process of attrition and centralisation, whereby powers and functions have been removed from local authorities and transferred to agencies and central Government Departments, has steadily undermined the authority of local authorities and their ability to command the support of local people. It is that, more than any other factor, that has depressed turnouts and the Liberal Democrats believe strongly that
there has to be a reversal of that centralising tendency. Unfortunately, the Bill does not in any way contribute to such a reversal.
Mr. Bennett:
Although I fully accept that the powers exercised by local authorities have been substantially reduced, the hon. Gentleman should be careful with his argument: turnout figures have not fallen dramatically compared with the period when local authorities had a vast range of powers, for even then turnout was relatively low.
Mr. Burstow:
I accept that. One analysis of last year's local election results commented that perhaps we had returned to a level of turnout more typical than that which pertained during the post-war period. There was a run of exceptionally high turnouts under the Conservative Government, when people increasingly used local elections to indicate their displeasure not only with Conservative local councillors, of whom there are now far fewer, but with Conservative central Government and the way in which they managed local government affairs through capping and other measures.
While we are on the subject of reversals, it was interesting to listen to the two Front-Bench speakers, especially the hon. Member for North Essex (Mr. Jenkin). He outlined the newly emerging Conservative policy on local government, which differs greatly from the policy paraded around the country when the Conservatives were in government. Many in local government, especially former Conservative councillors, would have liked to have heard those policies expressed and converted into action when the Conservatives were still in office, because they know only too well the consequences of the failure to do so. Many have told current Conservative Members of Parliament that the reason why the Conservative party no longer runs many local councils is the actions of the Conservative Government.
It is worth bearing in mind that, unlike the previous Government, the Labour Government have decided that it is appropriate for this country to sign up to and ratify the European charter of local self government. We welcome that sign of direction and of a desire to rejuvenate and reinvigorate local government. However, we question whether the Bill will move us in any way towards the noble sentiments and vision set out in the charter. It recognises the importance of independent and democratic local government and describes what local government is. It has tax-raising powers and it is not an agent of central Government. It is not there simply as a service delivery arm for central Government and Whitehall.
Given the Government's desire to sign up to that charter--soon after becoming a Minister the hon. Member for North-West Durham (Ms Armstrong) announced that they were signing up to it--it is surprising that this legislation does not cut central control or remove prescription of service delivery. It certainly does not devolve financial freedom to local authorities.
Mr. John Hayes (South Holland and The Deepings):
On the contrary, the Bill would increase central control. The distinctiveness of local authorities that want to pursue their own agenda would be limited by bland, uniform targets and by "independent" audits, which would force
Mr. Burstow:
The extent to which the Bill would further extinguish the opportunity for diversity and distinctiveness at a local level is a cause for concern and I welcome the fact that Conservative Members are now increasingly concerned about those issues. It is a pity that they were not so concerned when they were in government.
The legislation assumes the worst of local councils. Labour did not take that position in opposition. The Minister referred to what she described as the Conservatives' approach of capping, compulsion and control, but it was a case of the pot calling the kettle black. Undoubtedly, the Bill contains many of those elements and nowhere is that more clear than in part I, which introduces the new regime of central control.
I must make it clear that Liberal Democrats welcome the end of compulsory--or compulsive--competitive tendering, which prevented and, indeed, perverted value for money. CCT resulted in local authorities being forced to deliver services on the basis of little more than trying to find the bargain basement price, not the highest-quality goods. We have always regarded that as an unacceptable product of the CCT regime. CCT did not bring the discipline of the private sector; it left councils tied up in red tape and bureaucracy, creating a huge industry for lawyers, consultants and all sorts of other agencies. Often, the so-called savings resulted from increasing staff insecurity and lowering wages.
The Liberal Democrats have never opposed the principle of private sector involvement in the provision of public services. Indeed, many of the authorities that we control are doing just that. However, we have always objected to the element of compulsion that CCT necessitates. The so-called best-value regime that is to replace CCT is in danger of being as hidebound in red tape and as knee deep in consultants as it ever was.
The Bill will grant the Secretary of State wide-ranging powers to guide and direct the new best-value regime. Indeed, a future Secretary of State armed with the new powers--perhaps a less benign Secretary of State--could reintroduce compulsory competitive tendering without the need for primary legislation. The Bill goes further than the wildest dreams--I stress that--of Nicholas Ridley and his view of how local government should evolve into annual meetings to let contracts. The wording of this Bill would allow a Secretary of State with a very different view from that of this Government to enable such changes without reference to Parliament, except to a Committee considering regulations that are not susceptible to amendment. That is why the Bill is unacceptable. The changes would not be subject to the sort of parliamentary scrutiny that I think appropriate. Indeed, my colleagues feel strongly that the scrutiny allowed is inappropriate.
Of course, competition remains an important element in the best-value regime. We do not object to that and it is important that competition and the ability to benchmark and to market test are appropriate. However, if a council knows from opinion polls, citizens' panels and other public consultation methods that go beyond sectoral interests, that a service is effective and popular with local residents, will it still have to subject that service to market
testing under the regime? Many hon. Members have commented that the devil is in the detail. It is important that the regulations and guidance are available to the Standing Committee when it considers the Bill. Only in that context can we meaningfully scrutinise the legislation and debate where it will take us and local government.
Effective performance management is the key tohigh quality, cost-effective service delivery. Councils successfully deliver efficient services that are geared to the needs of their communities if they have built performance management into the organisation. There are different approaches to performance management. If one asked any three consultants, I am sure that they would offer different answers--for a price, of course.
| Next Section
| Index | Home Page |