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


Examination of Witnesses (Questions 60 - 71)

WEDNESDAY 8 SEPTEMBER 2004

PROFESSOR TONY TRAVERS

  Q60  Sir Paul Beresford: So the possibility of a sensible move to put into the bill a "sunset referendum"? In two years, if we do not like it can we take it out?

  Professor Travers: Personally, for what it is worth, I do not have hugely strong feelings about referendums one way or the other, and if there were to be a sunset referendum test in a number of years it would give everybody powerful incentive to make sure the thing worked so that if such a referendum took place those who wanted to keep it kept it.

  Q61  Mr Betts: Powers in terms of the Regional Development Agency, what effect or influence do you think the Regional Assembly would have there? Just looking at the government's policy statement, it seems that what they are saying is that the RDA will continue to be responsible for developing the Regional Economic Strategy. It is then going to be published by the Assembly, who can make some modifications to it, but the Assembly and the Agency have to have regard to government guidance in preparing the strategy. It seems very much that the government is going to tell the regional bodies what to do, the RDA is going to get on with drawing it up and then the Assembly is going to read it and put the commas and the dots in the right place. Is that a cynical view?

  Professor Travers: No, I think that is a reasonable description of at least an element of the way in which the London Development Agency and the Mayor have worked together. Using the London system as a model for what might happen in England, the Mayor has slightly more directed appointment powers over the LDA than the Regional Assemblies would over the RDAs because I think I am right in saying that the regions outside London would have to get the government's approval for appointments, which I am sure the Mayor of London does not. There is no question that, if you look at the operation of the LDA, it receives 100% of its income from central government and has targets set by the Department of Trade and Industry that give it a fairly limited area within which to work if it is to hit those targets, yet it is the Mayor who appoints the board members of the London Development Agency, and the Mayor of London—I do not need to tell the Committee—has his own view about the economy. So there is a conflict of accountabilities there between an RDA system which, after all, outside London has had longer to develop and is undoubtedly part of the national government machinery for delivering regional economic improvement—or it seems to be that—and the powers of the new Regional Assemblies to appoint the members and presumably to direct policy. So I think inevitably there will be a tension.

  Q62  Christine Russell: Can I ask your views on the proposed size of the Assembly? The GLA has 25 members, is that correct?

  Professor Travers: That is right.

  Q63  Christine Russell: In your experience is that about the right number or are they overworked, under worked? Is there sufficient capacity for everyone to have a proper role?

  Professor Travers: I think the London Assembly has still failed to find a role for itself; I think its Assembly members are in some ways 25 politicians in search of a role. But I think it is worth saying that the London Assembly members are in a different position to those in any region set up outside London, for the simple reason that outside London the model would be more like traditional Parliament or local government because the parties that would make up the Assembly would have to constitute an executive in the normal way and choose a leader, whereas in the London model the executive and leadership bit is all done by a separate election, and that means the Assembly members, and particularly in the first four years when the Mayor was an independent and all 25 members were from parties other than the Mayor, were put in a very awkward position. The fact that the party groups are very small creates—I am not a psychologist—unusual dynamics. It is difficult to whip a group of nine. Everybody knows everything about everybody and you do not have the anonymity that makes it possible for Whips to do whatever they do! So the London Assembly members act either in the sense of requiring to create a group or to be part of a group or a Party that becomes part of an administration, with other members being backbenchers, and they are very small groups. I think that this has made it very difficult for them to identify a role and I do think, having listened to the earlier questioning, that the issue of scrutiny, which this House and some Committees in this House have developed over the years, is not one that has immediately embedded itself at the GLA. One of the ways you can follow this is that the GLA, I think in common with Scotland and Wales, has taken officers from this House in the hope to use their expertise to help to develop the scrutiny role, but even that has not worked very successfully at the GLA.

  Q64  Mr Betts: To follow up the point that was made earlier, is there a potential conflict between the London-wide members and the constituency based members on the GLA, whether the problems in Scotland have been repeated in London?

  Professor Travers: Interestingly I think there was an expectation that citywide members, London-wide members without a constituency might be seen as second-class or a bit like Aldermen in the old system of local government—

  Q65  Chairman: Aldermen were first class!

  Professor Travers: I am sorry! Different class—to be politically correct—differently abled. I think that in truth the GLA, partly because of the relative uncertainty of all Assembly members as to exactly what they were doing, this difference has not been quite as difficult; the difference has not proved quite as problematic as might have been expected. So I do not think it has been a key issue of the GLA; I do not think that difference has identified itself between a class of the directly elected and a class of the citywide. I do not think it occurred in quite the way that some expected.

  Q66  Mr Betts: When the GLA was being advised was there an attempt to build some form of consensus and acceptance of this method of voting because it does seem as though, in looking at the establishment of the Regional Assemblies, there has been virtually no attempt at all to win people in the regions over to this form of voting or indeed to get their views on it.

  Professor Travers: I have to agree with you. I think that the voting system, which is not, for most of us in Britain, the cross on the ballot paper with the stubby pencil, the arrival of these new systems of voting and, in the case of London, two elections for the same Authority on the same day, was not well explained. Even at the second election it is alleged that people did not fully understand the ballot paper. So I think there is an education role very importantly needed, which I do not think has ever been fully explained to the London electorate. Whether they would learn over time, of course, is another matter. The electorate is adept over time at learning how to use any system, so perhaps it would eventually learn. But there is a need for education, I think there is no question.

  Q67  Mr Clelland: We have talked about different classes of member but what about different classes of employee? Has the Greater London Authority managed to draw a distinction between employees serving the Executive and those employees serving the Assembly?

  Professor Travers: I think the honest answer is not. Again, I was trying to be fair to the government earlier on. I think the GLA legislation, when it was created, attempted to make the Mayor and the Assembly work consensually by making the Mayor the executive but giving the Assembly the power to appoint all the senior officers. In fact, given that the Assembly is also supposed to scrutinise the Mayor in national political terms—a bit like allowing the Opposition to appoint the Senior Civil Service—it is not, in my view, a particularly appropriate way of making an authority of this kind work. So I think that the staff of the GLA have found life very difficult because they are appointed by the Assembly, with a small number of exceptions who are direct mayoral appointments, and that has made their lives as the deliverers of the Executive's policies difficult, and what has happened in fact is that the Mayor, as the Executive, operates through his office directly to senior board officers, bypassing the staff and bypassing board members. It is more like an American model of government, and I am not sure that this would necessarily work in quite the same way in the Regional Assemblies outside London. Your question certainly begs this bigger question of how a single group of staff can reasonably work for an Executive and a scrutinising body at the same time, and I do not think it has worked particularly well at the GLA.

  Q68  Mr Clelland: We are discussing the draft Bill here for the Regional Assemblies. Do you think the Bill adequately deals with this point, or should there be something included in the Bill, which will deal with that separation of responsibilities?

  Professor Travers: I certainly think that the legislation should make it clear that the Executive on any Regional Assemblies and the scrutiny function have reasonable independence of each other in the way that these Committees employ officers of Parliament not of the government to oversee the Executive at national government level. I think that some independence between these two processes is essential, yes.

  Q69  Christine Russell: It is certainly true in two tier authorities that the poor old district councils, who collect the council tax, get the blame when the county councils put up their council tax. Do you think the same occurs with the GLA in the London boroughs, in that the voters just do not distinguish between who they are exactly paying their bill to, and do you think some mechanism should be put in the Bill to make the accountability much clearer, or should we just change the collection system and make each "body", if you like, responsible for collecting its own levies?

  Professor Travers: I think going back to Sir Paul's question and to answer yours, there is no question that perhaps the single issue that caused the greatest rift between the boroughs and the Mayor of London in its first couple of years was the disagreement between the boroughs and the Association of London Government and the Mayor over a particular precept which was seen as too high, because the boroughs do feel that it is their single unified bill that the public sees as being what people pay and that a sharp rise in the GLA precept is blamed on the boroughs. So I think the answer to the question is that there is a problem here, it has been one that has existed in local government, as we all know, for many, many years, and could only be separated by separate billing. I have never fully understood myself why separate billing need be terribly expensive given that it could still go out in one envelope. It could all be done bureaucratically with two separate very, very distinctive bills, to make clear that one is from one authority the other for the other, but there we are; we have been discussing it for a long, long time.

  Q70  Chairman: Would it not be logical though to have a different basis for the precept other than the council tax—some other form of funding?

  Professor Travers: As I said, Chairman, I think that for the regions outside London, as for the London authority, it is important, if they are to work effectively, that they have a reasonable basis for generating their own resources, and if as part of doing that they were also perhaps to have a different tax that would make it even clearer still. For example, the business rate, which I know this Committee has considered very recently before, might be made available to regions, leaving the council tax to the lower tier, to the local tier of government. I think that would make accountability even clearer.

  Q71  Chairman: Very briefly, the GLA's audit experience, is that one that the Bill more or less builds on in the English regions? Is the audit working well?

  Professor Travers: I think audit and best value and so on for the GLA are only now fully biting. I think it is a bit early to judge, to be fair, Chairman. So I think I had better not try to answer the question in any detail because I am not sure that I am aware that there has yet been a great deal of published audit outcome about the GLA and its groups' first four years, but I have no doubt it will be interesting to read when it is fully published.

  Chairman: On that note can I thank you very much for your time.





 
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