Select Committee on Office of the Deputy Prime Minister: Housing, Planning, Local Government and the Regions Minutes of Evidence


Examination of Witnesses(Questions 280-299)

MR TONY MCNULTY AND MR MICHAEL BACH

TUESDAY 17 DECEMBER 2002

Chairman

  280. I thought we had run out of fish for these canning factories! What worries me is you get the planning zone, you get the land owner and he gets four people on to the site and then he finds it very difficult to get the fifth one on and there is the temptation for him to let the standards slip. It may not be that it slips as far as an animal by-product, which is my example, but it still slips to something that the other people on the site are not very happy with.
  (Mr McNulty) There will be a very, very strong framework, almost a master plan, for each of the business planning zones rooted in the strategic plan and the view is that it is about high tech/low impact. I would not foresee a canning factory or an animal by-products, or otherwise, being involved too.
  (Mr Bach) The idea is that each Business Planning Zone should have a very clear planning scheme which says what is permitted and what is not permitted. With the example you have given, somebody coming along and it is outside the framework they will need planning permission for that. If it is within the framework and it complies then it will not need permission. The planning scheming will make quite clear what is allowable.

Dr Pugh

  281. Nobody decides!
  (Mr Bach) It will be agreed as part of the scheme when the scheme is agreed at the beginning. When the zone is declared it will be declared with its planning scheme.

  282. What if it is contentious? What is the issue is, does this fit in the scheme or does it not, who then decides?
  (Mr Bach) The planning authority

  Sir Paul Beresford: It is freedom, but actually there is not any freedom.

  Chairman: Let us keep to the questions.

Christine Russell

  283. Minister, how do you answer your critics like, for instance, the county surveyors who claim that the wholesale reform of the system that you are proposing will lead to uncertainty which then will inevitably harm business competitiveness?
  (Mr McNulty) I do not accept that at all. One of the clear thrusts of the Bill and the extensive consultation process from Green Paper all of the way through has had its root in clarity and responsiveness, and that is what has driven most of the Bill. I do not accept that at all from county surveyors or anybody else.

  284. Can we move on then to the Planning Delivery Grant, when is that likely to be announced? Secondly, when Lord Rooker gave evidence to the Committee before he said that the grant is not going to be ring-fenced. If it is not ring-fenced how are you going to ensure that local authorities are not going to use the additional resource for some other project or use it for keeping council tax down, or whatever?
  (Mr McNulty) You will know that the total plan delivery grant is £350 million. We have announced in a headline way more than anything else at the moment that £50 million of that will be spent in the first year and the rest subsequently. When the Deputy Prime Minister makes his announcement on resources, as much trailed, in January he will be going into greater details on it.

  285. How are you going to—
  (Mr McNulty) Do you want me to do the ring-fenced bit?

  286. Yes.
  (Mr McNulty) I think in the broadest sense the relationship between central and local government is changing. We are saying to local government we trust you—I know you are laughing because you are an ex Local Government minister.

Sir Paul Beresford

  287. That must be one of the biggest errors of statement you have made for a long time.
  (Mr McNulty) Errors! We are moving more and more away from ring-fencing, across the piece at ring-fencing. Local Government is under no illusions about the responsiveness and responsibilities that come with the Bill and are also increasingly—I have certainly told them—under no illusion they cannot spend this money on anything but getting their planning departments up to speed, it will be performance related, and then come back asking for money more, because there will not be any.

Chairman

  288. You have had a chance to look at the transcript when Lord Rooker was answering questions on this. He was very insistent that it was not ring-fencing but it would work as if it was ring-fenced. Is that right?
  (Mr McNulty) That is what we would certainly hope to be the case. Mr Beresford may laugh but it is about saying to local government, you have rights and responsibilities, we are not ring-fencing every single penny you get any more, we are not ring-fencing it in this area we are responding to a need and desire from local government to boost up their resources in terms of what they can spend on planning departments and it is up to them whether they do or not. Sadly much of the early reports, I stress they are early reports, about what has happened on much of the spend in terms of the 14% increase on planning fees this year is that not a whole lot of it has gone into planning.

Sir Paul Beresford

  289. Because you deprived them in other areas and felt they were going to resist you.
  (Mr McNulty) Which is why the relationship is changing across the piece. We are seeking to get less and less ring-fencing across the piece.

Christine Russell

  290. How are you going to ensure this additional money is used to improve a whole range of planning services, whether it is to local residents or applicants, rather than just speed up the performance. Is the speed going to be the only criteria that you are going to assess?
  (Mr McNulty) In January the details of the criteria against which the Planning Delivery Grant will be judged will come into place. We have already said there will be a performance element and subsequent grants after year 1, this coming year, will be based essentially on the quantum of improvements, not just the speed, the quantum, where they start from and where they are getting to. It is not just about saying to those who are right up the top, if you increase by a few points you are going to get a whole lot more of the grant, it is about the quantum from where the local planning authority starts to where they get to. It is about quality improvement across a range of essentially the best value plan and indicators.

  291. How confident are you that the performance will improve quickly enough to justify the big hike in planning fees?
  (Mr McNulty) As I said before, crucially it is the overall efficiencies of the planning system that need improvement, not necessarily just the turnover of decisions. We are, not just through the Planning Delivery Grant, in a wider sense working with a whole range of professional bodies to try and increase, which is absolutely necessary, the skills base and attractiveness of town planning or planning generally as a career. We are under no illusions that the PDG—which happily it is called now, it was going to be called Planning Improvement Grants, so we would be talking about PIGs all day—is going to increase performance but we need to do a lot more to change the overall culture, up the skills base and a whole range of other things. We are trying to do that with the Planning Inspector, with RTPI and a whole range of other bodies. We are getting to a stage now, talking to those bodies, planning officers' societies and others where there is a real sea-change that says that plans are important, how they link with economic development and a whole range of other things that sustain our communities are all important, rather than simply the planning decision process.

  292. How are you going to improve the dialogue between planners and architects? You talked about the role the RTPI, what about RIBA too?
  (Mr McNulty) Across the professions involved in these areas we are seeking to have far, far stronger dialogue encapsulating all of these areas. I am not offending RIBA, I cannot remember who said it, but somebody said to me over the summer that for every one town planner that our education system produced it produces twenty architects. There is something wrong with that balance in terms of people's actual functions and contributions out in the field. That is not attacking RIBA it is just a matter of fact.

Mr O'Brien

  293. Both the Regional Development Agencies and the British Retail Consortium have called for a planning system that encourages economic development in a proactive way, what are you going to do to bring this about?
  (Mr McNulty) In essence that is really right where we started from, where, as I say, much of the evidence that the Committee has taken and the pieces of evidence produced show that the system was not an impediment to business activity or economic development. I say that is simply not good enough. We want to move from that to being far, far more proactive. Business planning zones and things that like are part of it. I think crucially moving the focal point up to a regional level, where there can be much more interplay between RDAs and regional economic development focus, is part of that. More mundane things, like the review of the planning obligation circular, like a review of all of our PPGs and Planning Policy Statements will all help in that process, not simply in terms of that being the only thrust of what we do. As I say, I return to those three key interlinking elements, yes, the country needs a land use and development control framework; it needs a private system that is responsive to the communities it serves and who live with the consequences and it needs a proactive planning system that responds to the business community and economic development. At a local and regional level it is always about the balance of those three. They are asking me to let rip. Proactive is code for let them do what they want in terms of out-of-town retail or whatever else and that ain't going to happen.

  294. On the question of economic development, we have economic development teams and development control teams all working within local authorities, the question is coordination. What are you doing to encourage the joint working of these groups? These are the stakeholders and it is important that we work together, what are you doing about that?
  (Mr McNulty) More and more at council level, certainly when I go round to see local government that is happening already. The notion that there is a separate economic development unit that never spoke to the planners or the strategic people has almost become a thing of the past. Certainly I think that is more and more the case at the regional level, not least because of the impetus and the focus on economic development from the best of the RDAs.

  295. The Prime Minister set up a strategic unit to look at ways to measure control. One of the items in their report is that the planning system causes delay on all waste facilities. If we are going to allow a proactive system how can you address that reference in the strategic report that the planning system delays all waste facilities?
  (Mr McNulty) It is fair point. You can almost turn it round and it is about the balance I was talking about, much of that delay is caused by the community reflecting on and not necessarily always liking every significant application for waste facilities. Should that be done more speedily? Yes, it should. We are trying to do what we are doing in terms of the informalised parts of the inquiry process. If they are major then it is through the concurrent running of various aspects of the major infrastructure project inquiry. That is happening. It is about balance.

  296. It needs cooperation too. The initiative has to come from somewhere, I would suggest planning.
  (Mr McNulty) If things are working with the counties where they are very, very explicit as to what that future waste strategy is and that is reflected at least in part in the regional spacial strategy and where appropriately the local development framework then between them they should be able to resolve that and get to a situation where they are not having massive enquiries and delays every time they come up with an application for waste facilities because much of those arguments have been rehearsed previously during the plan process rather than the planning process.

Mr Mole

  297. Mr O'Brien was talking about the ways in which authorities can have a more enabling approach. The Corporation of London talked us to about hand-holding through the process and in that pre-application stage. What do you think of those sort of approaches and are you not concerned that, (a) pre-application discussions like transparency, and (b) the council can be seen as being torn between helping an applicant and its quasi judicial role.
  (Mr McNulty) We are trying to almost formalise that process by making provision for a statement of intent, which is not a different version to outlined planning permission but it is about saying at the very least that at the conclusion of those early pre-application stages here is roughly what a developer wants to do. Broadly if he has come to agreement with the local planning authority on that the details are all consequent to that. Here is broadly a statement of principle for development that the local planning authority agrees to. I think the more we can encourage transparency in pre-application processes the better, that means responsibilities on all sides. I do share in part—not least after 11 years on a planning committee myself, not always privy to the pre-application discussion—some concerns about the lack of transparency. As Mr O'Brien was saying, the more open at the strategic stage in terms of the plans and how they relate to the regional spacial strategies and subsequent interpretations of those by councils as more applications come in the more open that process is the more you will take the community with you. What communities do not like is surprises.

Dr Pugh

  298. The RDAs are charged with developing economy, sustainable development, and so on. The Government grants are a little bit anti-planning, does that worry you?
  (Mr McNulty) It does not unduly worry me, it leaves opportunities for all sorts of arguments to put their views forward.

  299. You recognise a tension there, do you?
  (Mr McNulty) I do recognise a tension. In part we are moving to a system where most of the key players at the regional level, including the regional planning bodies, when they come into being, will have to work to measure far, far more than they have done thus far. Rather like central government and local government the notion of having little silos and ticking boxes and who has responsibility for what is probably increasingly a thing of the past. The thrust and nature of some of the things the RDA were saying did not surprise me unduly but I thought they had missed an opportunity rather than took full use of it.


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2003
Prepared 5 February 2003