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Control of Hedgerows in Residential Areas
Mr. Jim Cunningham accordingly presented a Bill to amend the Environmental Protection Act 1990 by
extending powers to environmental health officers to intervene in neighbourly disputes involving hedgerows in residential areas; and for connected purposes: And the same was read the First time; and ordered to be read a Second time on Friday 24 March, and to be printed [Bill 74].
Government Resources and Accounts Bill
As amended in the Standing Committee, considered.
Brought up, and read the First time.
The Economic Secretary to the Treasury (Miss Melanie Johnson):
I beg to move, That the clause be read a Second time.
Madam Speaker:
With this it will be convenient to discuss the following: Amendment No. 8, in clause 16, page 8, line 44, after "on", insert "upstream".
Amendment No. 9, in page 8, line 44, after "business", insert "activities".
Government amendments Nos. 27 and 28.
Amendment No. 10, in page 9, line 6, after "provide", insert "further".
Amendment No. 11, in page 9, line 7, leave out from "connection" to end and insert--
Amendment No. 12, in page 9, line 9, leave out from "conditions", to the end of line 11 and insert--
Amendment No. 13, in page 9,, leave out line 13 and insert--
Amendment No. 16, in page 9, line 13, at end insert--
Amendment No. 14, in clause 17, page 9, line 14, leave out subsection (1) and insert--
Amendment No. 15, in page 9, leave out lines 34 to 36 and insert--
Government amendments Nos. 29 to 31.
Miss Johnson:
The Government are introducing new clause 7 to provide a statutory limit to the level of investment that the Treasury can make in Partnerships UK. When the matter was discussed in Committee, I indicated that the Government had no objection in principle to the imposition of a limit, that we had been considering the matter and that we would return to it after further consideration. I also made it clear in Committee that we would ensure that our commitments were the minimum necessary to ensure the successful launch of PUK, while at the same time ensuring that they represented value for money. I also said, however, that we should not impose a restrictive limit because of the position that PUK will occupy. It is important to ensure that the company is funded to a level that will allow its continued development over time.
Opposition Members will note that the limit that we have set is £100 million below the figure that was suggested in Committee by the hon. Member for Arundel and South Downs (Mr. Flight). The £400 million limit will apply to all forms of investments, including any loans or guarantees. It is a fixed, aggregate figure that is not insulated against inflation.
The limit is subject to change only by means of affirmative resolution. That ensures that the procedure for changing the level of the investment in the new company, which may be proposed by this or, indeed, any other Government, will be open to consideration by the House. I should like to take this opportunity to mention that my officials consulted the National Audit Office on the matter of a limit, as requested by the right hon. Member for Haltemprice and Howden (Mr. Davis), who has just joined us.
I shall speak briefly on the issues covered by the other Government amendments on PUK. Amendments Nos. 27 and 28 have been introduced to provide clarity of purpose. The redrafted clause gives a more accurate explanation of the Government's financial commitments to the new body. Partnerships UK will be a public-private partnership, and the Government will invest on a basis that ensures the best value for money. All financial provision by and on behalf of the Treasury will be on commercial terms.
Amendment No. 28 also makes it clear that the moneys provided may be used in connection only with a public- private partnership business. Under that amendment, the position remains that investment may be made only in one body. Those points, along with the imposition of a limit, should allay the fears of those who are concerned that the Treasury will be providing a blank cheque.
Amendments Nos. 29 to 31 are drafting amendments. They are necessary to remove from the Bill some text that is no longer required. I agreed to introduce these amendments during an exchange with the hon. Member for Arundel and South Downs in Committee.
Mr. Howard Flight (Arundel and South Downs):
If I may put it thus, the Government have, somewhat trickily, put into a Bill about Government resource accounting the legal provisioning to set up Partnerships UK. Announcements were made by the Government last July on the scope and activities of Partnerships UK. They included putting private finance initiatives into better shape more quickly, pump-priming for feasibility studies for local authority projects, expanding the range of projects that can be undertaken and seeking to make good the public sector skills deficit in putting together private finance initiative deals.
I submit, having looked at clauses 16 and 17, that what the Government intend Partnerships UK to do is unclear. The provisions go much wider than the announcements that were made last year, after considerable debate and spinning on the subject. The clauses as drafted would indeed enable the new body to step into territory that has been raised by the TUC, the CBI and the existing private finance initiative industry, which could lead to major conflicts of interest.
Mr. John Bercow (Buckingham):
Before my hon. Friend expatiates on that point, will he confirm that he heard the Minister say that the investment limit would be increased only after "consideration" by the House? Trawl through the measure as I may, I can find no reference to "consideration"--only a reference to approval by resolution. Would my hon. Friend care to try to get the Minister out of the conundrum into which she has plunged herself?
Mr. Flight:
I thank my hon. Friend for his, as ever, valuable contribution. New clause 7 is almost as opaque and as lacking in clear description of its intent as the existing clauses. It seems that the Government's intent is that anything in excess of the prescribed limit of £400 million should require the affirmative resolution of both Houses--but I question whether that is what the words in the measure really add up to.
Moreover, new clause 7 contains a loophole: apparently the £400 million limit applies only to subsections (1)(b) and (c) of clause 16 and not to subsection (1)(a). As subsection (1)(a) empowers the Government to put up finance for the body, how much do they intend to provide up front?
'.--(1) The Treasury shall ensure that the aggregate of outstanding expenditure under section 16(1)(b) and (c) does not at any time exceed £400 million.
(2) For the purpose of subsection (1)--
(a) outstanding expenditure in respect of the acquisition of assets, securities and rights shall be taken to be the aggregate of amounts paid for the acquisition of assets, securities and rights which have not been disposed of,
(b) outstanding expenditure in respect of a loan shall be taken to be the amount outstanding in respect of the principal,
(c) outstanding expenditure in respect of a guarantee shall be taken to be the aggregate of amounts which have been paid in fulfilment of it and in respect of which the Treasury has not been reimbursed, and
(d) the Treasury shall make arrangements for evaluating outstanding expenditure in respect of anything done under section 16(1)(b) or (c) which is not addressed by paragraphs (a) to (c) above.
(3) The Treasury may by order substitute a new amount for the amount for the time being specified in subsection (1).
(4) An order under subsection (3)--
(a) shall be made by statutory instrument, and
(b) shall not be made unless a draft has been laid before, and approved by resolution of, each House of Parliament.'.--[Miss Melanie Johnson.]
4.15 pm
'with the carrying on of its business, equal to 200 per cent, of the total finance provided under subsection (1)'.
'but may not comprise the following forms--'.
'( ) long term equity investments in public-private partnership projects'.
'(5) The accounts of a body to which financial assistance is provided under subsection (1)(b) or (3) shall be open to inspection of the Comptroller and Auditor General and that body shall give such explanations of those accounts as he may reasonably require.'.
'(1) In section 16, "upstream public-private partnerships activities" means acting as a manager in the organisation of public-private partnership projects, providing public sector organisations with expert advisory and implementation skills, providing interim finance for feasibility studies for local government public-private partnership projects and negotiating the necessary arrangements for particular public-private partnerships with the relevant government departments and the Treasury.'.
'(b) references to public-private partnership projects include those carried on outside as well as within the United Kingdom.'.
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