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Clause 31

Joint overview and scrutiny committees
Mr. Goodman: I beg to move amendment 33, in clause 31, page 25, line 12, leave out ‘The Secretary of State may by regulations’ and insert ‘local authorities may’.
The Chairman: With this it will be convenient to discuss the following: amendment 34, in clause 31, page 25, line 36, leave out ‘regulations’ and insert ‘arrangements’.
Amendment 35, in clause 31, page 26, line 19, leave out ‘Regulations’ and insert ‘Arrangements’.
Amendment 36, in clause 31, page 26, line 26, leave out ‘have regard to any guidance issued by the Secretary of State’.
Mr. Goodman: The official Opposition, like other Opposition parties, were not convinced by the Minister’s explanation of clause 30. She said that the view had generally been expressed that it would be useful to have more resources and scrutiny and that representations had been made to the Department for Communities and Local Government, but it did not seem to us, on the basis of her comments, that local authorities and others were knocking at the Department’s door saying that scrutiny in local authorities was poor.
And that brings me directly to our amendments. Very often, amendments are probing amendments designed to test the Government’s intentions. However, these amendments would give the clause sufficient flexibility to make it just about bearable. Amendment 33 would remove the Secretary of State’s regulation-making power and give local authorities the flexibility to make this provision, if they so wish. Amendment 34 would replace “regulations”—again, made from the centre—with the more pliable word “arrangements”. That is also the case with the next amendment. Perhaps we have taken a rather severe view of any guidance issued by the Secretary of State in amendment 36. However, together, our amendments would make the minimum necessary changes to the clause to ensure that it does not place a burden on local authorities that, on the basis of the Minister’s evidence, they should not have to carry.
1.45 pm
Julia Goldsworthy: I think that everybody in the Committee agrees that ensuring a strong scrutiny process is important in order for people to have confidence that their councils are well run and that, if there are any problems, a mechanism exists for investigating them fully. The Liberal Democrats have no problem with the establishment of joint overview and scrutiny committees. There are many issues on which councils working together can be run more efficiently, and we can see an improved process.
Our problem is that we cannot see why the process must be determined by the Secretary of State. The concern is that it brings forward a background issue, which is that the Government always presume the best intentions in the Government and the worst in local authorities. The provisions are just another example of that: clearly, local councils cannot be trusted to come up with satisfactory arrangements; that will only be achieved if those arrangements are specified, once again, in primary legislation. That seems to be the theme of virtually every clause in the Bill.
The amendments presented by the hon. Member for Wycombe seem entirely sensible. They would make it clear that it is not only the local authority’s right but its responsibility to ensure that the process works effectively. For councils that might struggle to do so, the regulations might be an additional burden that will make it more difficult to fulfil those duties. Once again, the Government have no business requiring all local authorities to act entirely in a specified way. It is a matter for local authorities. It is depressing that we continue to have discussions such as this.
Mr. Curry: If the Minister were to accept the amendments, would it not be a good opportunity to put into practice the new doctrine enunciated by the Prime Minister yesterday about devolution?
Julia Goldsworthy: The right hon. Gentleman makes a valid point. This is called the Local Democracy Bill, and the White Paper that informed much of it was all about putting communities back in control. Exactly how will the Bill put communities back in control? Even looked at in the most positive way, which is that it is about giving communities a better service—I am sure that the Government will present it that way—it certainly does not put them in control. It puts power in the hands of one person only, and that person is the Secretary of State.
Mr. Goodman: Has the hon. Lady had a chance to read—I am sure that she has, as she is an assiduous chewer-through of material—a recent report called “The balance of power” by the Select Committee on Communities and Local Government, on which our parties do not have a majority? The conclusion reads:
“Central government should maintain a very high threshold before it intervenes in only the last resort.”
It ends:
“CLG is not as far down the road as some of its rhetoric might suggest.”
Julia Goldsworthy: It is a challenge for all political parties. It is easy to use the rhetoric surrounding empowering communities and pushing down resource, but it is an opportunity for the Government to ensure that their actions confirm their words. At the moment, they appear to be contradicting them.
Mr. Curry: Of course, the supervision of the Secretary of State will be carried out by the regional office, so in practice, an official will make a recommendation to the Secretary of State. The practical decision could well be taken by somebody who is not elected.
Julia Goldsworthy: And then we are back into quangocracy and bureaucracy, which will continue to be remote to so many people. I have grave concerns about the clause. The amendments are an attempt to restate that. I think that the Conservatives also have a long way to go in persuading people that they are prepared to back up their rhetoric with actions, so if the Government were to adopt the amendments—I am inclined to support them—it might be an opportunity to demonstrate on a cross-party basis that not only are all the parties keen to use the rhetoric of localism, they are prepared to do something about it as well.
Mr. Nick Raynsford (Greenwich and Woolwich) (Lab): On Second Reading, I declared my interest as a chairman of the Centre for Public Scrutiny; I stress that this is a non-pecuniary interest, a non-remuneratory post.
I have to say that what I have been hearing from the Opposition is a load of nonsense. This is not some kind of unwarranted Government interference: it is a sensible measure to enable joint scrutiny to be carried out by different local authorities—scrutiny that engages other activities, notably the health service and the criminal justice system. We all know the importance of joining up, and if we do not have central Government creating a legal framework that makes it clear that this can be done—
Mr. Goodman rose—
Mr. Raynsford: Will the hon. Gentleman please leave me for a moment? I simply want to make this point. If central Government do not create a clear, legal framework under which it is absolutely clear to local authorities that they can set up joint scrutiny committees, there will inevitably be variations in interpretation of what is within their power and what is not. This is where there is an absolute case for central Government to set out the framework. It does not impose obligation on local authorities: the powers are permissive. How they set up their joint scrutiny committees will be for them to decide, as will whether they set them up at all.
Both Opposition parties are completely wide of the mark on this. They are trying to see some kind of authoritarian, central Government diktat where it does not apply at all.
Mr. Goodman: If the right hon. Gentleman, to whose experience I defer, wants a framework he can have one, but why should not that framework say “local authorities may” rather than “the Secretary of State may” by regulations?
Mr. Raynsford: For the very simple reason, as I just explained, that some authorities may take a different interpretation of the extent of the powers for some of the scrutiny bodies that may be set up, not just with other authorities, but with other parties as well. All the evidence of scrutiny—the Minister referred to the experience of the Centre for Public Scrutiny—suggests that there are huge benefits from cross-silo working by different authorities and bodies in the public service. We should surely be encouraging this and promoting a framework that makes it possible.
Mr. Jackson: Like my hon. Friend the Member for Wycombe, I defer to the right hon. Gentleman’s interest in and passion for this issue, but we are not talking about encouragement. The Bill is effectively forcing local authorities to amalgamate their functions. What is wrong with using the term “may” and giving more authority and autonomy to local authorities, if they have issues relating to social and economic commonality of interest?
Mr. Raynsford: The hon. Gentleman is completely wrong. If he reads the Bill, he will see that the relevant phrase says:
“The Secretary of State may by regulations make provision under which any two or more local authorities in England may”—
It says “may”, not “must”. It is permissive; it helps local authorities; it gives clarity. It is Government acting sensibly: acting in response to representations, made by many people with experience of good scrutiny, that we should be encouraging cross-border and cross-sector working to ensure a more joined-up approach to the delivery of public services and better government at a local level.
Julia Goldsworthy: The right hon. Gentleman says that the problem is that there have been variations in interpretation, but does he not think that a good thing, which allows for the boundaries to be pushed even further? Is it not also slightly risky to assume that joint scrutiny processes will in every case help overcome some of the silo thinking? I can think of a joint health and adult social care overview scrutiny committee that, from the point of view of the public, has been very confusing because it looks at decisions for which it has no responsibility. In many cases, it has been criticised for decisions that are entirely in the realm of health, and nothing to do with the council it is responsible for scrutinising. So this provision is not the only way of breaking down these silo issues.
Mr. Raynsford: The hon. Lady makes two points, the first of which is to leave it all to local authorities. I entirely concur with the principle that the format of the joint scrutiny committees can probably best be determined at a local level. The problem is that if individual local authorities are advised by their lawyers that their powers are perhaps limited, we may get different interpretations. One authority could take the view that it has the power to set up such a committee, and another might take a different view. That is why it is sensible to have a national framework.
The hon. Lady’s second point was that joint scrutiny is not always a good thing. Of course it is not always, and it can sometimes be done badly, but there are huge gains from different organisations with different perspectives working together. The experience of local authority involvement in health scrutiny is an interesting issue. It has helped local authorities, with their considerable social care responsibilities, to have a much better understanding of the interface between what they do and what the national health service does. That must be a good thing.
Julia Goldsworthy: I have no doubt that it has helped to encourage joint working, but this is the Local Democracy Bill and much of what we have been considering is about aiding people’s understanding. I am not entirely convinced that in every case, these joint committees help people to understand where the responsibilities, and ultimately the budgets, also lie.
Mr. Raynsford: They may not have worked in every case, but they have overwhelmingly been a force for good. I would have thought that the hon. Lady and her party would support this as a way of encouraging more joined-up working at local level, with the permissive power to enable local authorities to take useful initiatives.
Mr. Curry: I have a sense that we are travelling round different perimeters of the circle to arrive at the same point. If local authorities had to discover the boundaries of their powers themselves, would not the tradition of best practice before very long assert a common view of what was permitted? Would not that process of experimentation in a sense be rather creative in the process? Secondly, what the hell is the Local Government Association for?
Mr. Raynsford: Probably, given its recent difficulties, it is best to pass over that second question. On the first question, I give the right hon. Gentleman three names to show why his assumption is a bit optimistic. They are the names of local authorities with which I had considerable dealings when I was Local Government Minister because they were in an appalling mess: the London borough of Hackney, the metropolitan borough of Walsall and the district of Rossendale. Those are three different authorities under different political control—that is the reason why I mention them—that were not working well and where, despite the fact that this had been evident for many years, there was little sign of any improvements.
Sometimes it is necessary to give a little nudge and a little help in the right direction. When that is done it can often produce rather remarkable results. I am happy to say that all three of those local authorities are now working very much better—remarkably better than a decade ago. There is evidence of the perfectibility of man, woman and local government, but sometimes it requires a bit of a nudge. So just leaving it to the automatic process, as the right hon. Gentleman suggests, may not be the right approach. The clause is eminently sensible. I believe that the Opposition’s amendments are misconceived and I hope that my hon. Friend the Minister will recommend the clause to the Committee and that it will approve it.
Sarah McCarthy-Fry: I thank my right hon. Friend for sharing his considerable expertise and experience on this issue, and I entirely concur with his remarks. Unfortunately, I do not entirely concur, as might be expected, with the remarks of Opposition Members.
I reassure the Committee that we have not opted for this approach because we want to prescribe the fine details of how local arrangements work. To reiterate what my right hon. Friend said, the regulations simply ensure a broad framework and flexibility to address key questions relating to area scrutiny committees. This is an enabling power and a practical measure that allows us to address matters of important detail in regulations, to ensure that the various scrutiny provisions dovetail and work effectively without causing duplication or unnecessary burdens. I certainly see nothing unusual or sinister about making provision for such matters through regulation.
2 pm
The Committee might be aware that we recently consulted on proposals for joint area scrutiny arrangements. Responses to that consultation highlighted a number of practical considerations. For instance, there were concerns about the need for full and fair representation of all interests and proper governance arrangements, and there is clearly a difficult but important balance to strike, and possibly quite complex arrangements to make.
As the proposal for any two or more authorities to appoint joint overview and scrutiny committees is new, it is even more important that we carefully consider those practical issues and work with key stakeholders to ensure that the right balance is struck. By addressing those detailed matters in regulations, we can ensure that the new arrangements work to deliver real benefits for communities.
On guidance, Parliament agreed and recognised the need for a statutory guidance-making power for the overview and scrutiny provisions introduced by the Local Government and Public Involvement in Health Act 2007, including those for joint overview and scrutiny committees. Overview and scrutiny committees are already required to have regard to a basic level of statutory guidance and there is no good reason to treat joint overview and scrutiny committees differently. However, I should like to reassure the Committee that wherever possible, guidance should take the form of sector-led best practice guidance. That is why we are working with the Centre for Public Scrutiny to issue guidance to accompany the new overview and scrutiny powers, thereby limiting the need for statutory guidance.
I hope that the hon. Gentleman is prepared to withdraw the amendment and support the clause as it stands.
 
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