Previous SectionIndexHome Page


9.40 pm

The Parliamentary Under-Secretary of State for Wales (Mr. Jon Owen Jones): There is a price to be paid for incompetent government and the number of Conservative Members sitting opposite is witness and testament to that.

I agree with the hon. Member for Ribble Valley (Mr. Evans) that the debate has been interesting. It has convinced me of three things: first, that there is widespread support for bringing the services that are provided by local authorities in England and Wales up to the standards of the best in terms of both cost and quality;

12 Jan 1999 : Column 199

secondly, that if we are to deliver best value in fulland improve local financial accountability, central Government need new powers and local government needs real flexibility; and thirdly, that those new powers need to be exercised with care, with broad agreement and for the benefit of local communities. I take heed of those hon. Members who have advocated caution.

The hon. Member for North Essex (Mr. Jenkin) initially argued that there was widespread support for the continuation of compulsory competitive tendering, rather than best value. To substantiate that claim, he had to resort to quoting the much quoted Institute of Directors--not all the Institute of Directors; only 49 per cent. of it apparently. When he was told that the larger, more representative CBI supported the Government's position, one Conservative Member, who is no longer with us, remarked from a sedentary position that the CBI was merely a bunch of socialists. What could better demonstrate the pathetic and marginal nature of the current Tory party than the fact that it believes that the CBI is a bunch of socialists?

Later, Tory Members chose to have a philosophical debate with one another and very interesting it was too. The hon. Member for Wantage (Mr. Jackson) made an interesting contribution that attracted considerable agreement from the Labour Benches because he attacked fundamentally the philosophy of the previous Government. However, he rather spoiled it by claiming, apparently, that Thatcherism was a disguised socialist plot to reintroduce central planning to Britain. However, I am grateful for the many helpful proposals that have been made in the debate.

It is a time of great change for Wales. The advent of the National Assembly heralds a new era of inclusive politics in which the people of Wales and their representatives will have to work together for the common good.

The Assembly will be no talking shop. It will have at its disposal the £7 billion or so budget that is currently assigned to the Welsh Office. The Assembly will allocate those resources and set policies and standards for services. In doing so, it will wish to work in close partnership with local government to deliver services that will meet the needs of the people of Wales.

It is my special privilege to turn to the provisions that deal with the National Assembly for Wales. Before the referendum, we promised that new Government Bills would reflect the position of the Assembly within the modernised British constitution and would confer on it powers consistent with those that it will inherit from my right hon. Friend the Secretary of State later this year. The Bill is the first to do so.

Under the Bill, the Assembly will be able to decide how to exercise its powers to take forward the modernisation of Welsh local government in a way that reflects the special needs of Wales and the democratically expressed wishes of its people. That is the only way to go if the Assembly is to have the trust and respect it deserves. In that sense, the Bill paves the way for the shape of future primary legislation for Wales. Parliament should provide the framework within which the Assembly will operate, without seeking to be unduly prescriptive. I am delighted that the Bill does that and I commend it to the

12 Jan 1999 : Column 200

House as a new and refreshing means of delivering real power into the hands of a body that will exercise it in an open and accountable fashion.

My hon. Friend the Member for Clwyd, West (Mr. Thomas) asked about the role of the partnership council and its best value. It is one of the many areas in which the Assembly can discuss with local government how it is exercising its powers with respect to local authorities. He also asked about the position of police authorities in Wales. The Bill provides that the best value powers in respect of those authorities will be exercised by my right hon. Friend the Home Secretary.

Mr. Evans: Could clause 17 be used by the Welsh Assembly so as to use the Welsh language as a means by which contracts are handed out by local authorities?

Mr. Jones: The hon. Gentleman hails from Wales and he will know that that question is meant to be entirely mischievous. There is no possibility of a democratically elected body for Wales, where 80 per cent. of the population does not speak Welsh, doing such a thing. The hon. Gentleman should be ashamed of himself for trying to make mischief out of the real consensus that exists in Wales about the promotion of the Welsh language.

There has been concern from some hon. Members about the intervention powers in the Bill. The hon. Member for North Essex trumpeted the 27 new powers for the Secretary of State that he claims are contained in the Bill. He chose to ignore the fact that 50 powers introduced by the previous Administration will be repealed by the Bill. By my calculation, that means that the Bill represents a net reduction of 23 in centralising powers. The Bill removes powers from central Government. By contrast, the hon. Gentleman declares himself proud of the 28 pieces of local government legislation introduced by the Conservative party between 1980 and 1997.

Intervention in an authority's affairs by the Secretary of State or the Assembly will be appropriate to the nature of any failure. It will be the exception, not the rule. It will be the last resort.

Dr. Evan Harris (Oxford, West and Abingdon): On that subject, may I draw the Minister's attention to a provision that is not repealed by the legislation--the disgraceful section 28 of the Local Government Act 1988, which purports to ban the promotion of homosexuality by local authorities, rather like purporting to ban the promotion of left-handedness? That has resulted in a failure to provide good sex education, the failure of pastoral care for young lesbian and gay pupils and other difficulties that schools in particular have had to face. Why did not the Government take the first opportunity to repeal that stain on our statute book?

Mr. Jones: The Government have a commitment to repeal that legislation before the end of this Parliament, but it is not a part of best value.

Some hon. Members have expressed concern about the apparently excessive powers that the Bill gives the Secretary of State and the Assembly to make orders and issue statutory guidance. The alternative would be to put more detail in the Bill. We do not believe that that would be the right way forward. Best value needs flexibility.

12 Jan 1999 : Column 201

That can best be provided through secondary legislation and guidance. That is how we can take into account the experience of the pilots. It is how we can introduce changes at operational level as circumstances change.

The Opposition have failed to appreciate the fact that we have been discussing these powers with local government and others for over 18 months. Let me make it clear that the powers will be used with considerable care. They will be used after consultation and we will seek consensus in the way we use them. We are developing a protocol with the Local Government Association setting out the general principles that will underpin the exercise of the intervention powers and the broad procedures to be followed.

Mr. Jenkin: Will the Minister undertake to make the protocol available before the Committee stage starts? It is impossible to discuss how the powers will be exercised when the Government are playing their cards so close to their chest.

Mr. Jones: The protocol will be made available as soon as it is agreed with the Local Government Association.

Some hon. Members have objected to clause 14. The powers are included in the Bill to help local authorities to deliver best value. We shall consult widely before using the powers. We shall look carefully at best value authorities' powers to trade and engage in partnerships.

We are also considering the ability to pool budgets with other public bodies to achieve common objectives. Such powers will have to be curtailed. We cannot create new monopolies. We shall not allow special advantages for authorities to trade in the market. The Secretary of State will be able to impose restrictions and conditions on the use of the powers. We shall ensure that risks are limited and public funds protected. The powers will remove the constraints that prevent authorities from delivering best value. That must be good for local people.

My hon. Friend the Member for Wolverhampton, South-West (Ms Jones) expressed concern about authorities drowning in Government performance indicators. Some aspects of local services are of national interest, such as levels of educational attainment or child protection. It is right for the Government to set standards to ensure a minimum level of such services. However, authorities will set a range of indicators to reflect their priorities. Those indicators will play a key role in the performance management framework. The Audit Commission has consulted on indicators and will continue to do so in the coming year.

The Bill is not about nationalising local government, as some Opposition Members have suggested. It provides local authorities with a framework to deliver effective and efficient local services for local people. Councils will be held to account for their delivery of services. The duties to publish annual performance plans and to consult service users and others will be key mechanisms in making that happen. The Bill is not about nationalisation; it is about enabling local government to do its job better.

The Conservatives were also concerned that the Bill says nothing about how competition will work under best value. They do not believe that best value will provide real competition. We recognise that competition will be an important part of best value. In each review, authorities will need to test the competitiveness of each service.

12 Jan 1999 : Column 202

In our White Papers we have identified a number of ways in which that can be done. There will be competition, but unlike under compulsory competitive tendering, it will be fair, based on the principle of partnership and in a climate of respect for employees' rights. If local authorities seek to evade or fudge competitiveness, it will be apparent in the quality or cost of their services and will be picked up by the audit. There is nowhere to hide.

I greatly appreciated the arguments against CCT made by my hon. Friend the Member for Southampton, Test (Dr. Whitehead). I am indebted to him for revealing to me the case of the Barnet duck. I assure him that under best value Barnet ducks will grow fat.

Equity has been referred to during the debate. It is inherent in best value. An effective authority will ensure that it is built into the review process and underpins the local performance plan. Many local authorities are addressing that already. There is no need for a specific mention in the Bill.

The hon. Member for Sutton and Cheam (Mr. Burstow) asked how we would use the experience of the pilot areas to draw up secondary legislation and guidance. The pilot studies are being widely assessed. My right hon. Friend the Secretary of State and I receive regular reports. We both have a pilots steering group and working groups which bring together the Confederation of British Industry, the Trades Union Council, the Audit Commission, the Local Government Association and the voluntary sector. We have not set up all those pilots and engaged all that expertise only to ignore them. It is to take account of the experience of the pilots that we have left some flexibility in the Bill as to how we implement the details of the framework.

We were elected on a manifesto that promised that we would retain a reserve power to control excessive council tax increases. It is right for central Government to take a responsible interest in the responsible use of local authority powers. In England, only 25 per cent. of local government finance is raised locally and in Wales the figure is even lower. We have to be accountable to the national taxpayer, but we also need to protect local taxpayers, and we will.


Next Section

IndexHome Page