Local Democracy, Economic Development and Construction Bill [Lords]


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Mr. Raynsford: My right hon. Friend is making an extremely valid point. I listened to the entirely intelligent response from the right hon. Member for Skipton and Ripon, who rightly is trying to find certainty about future prospects and trends. However, I must tell him that that is not life. He is slightly overwhelmed by his own interpretation of the measure as some kind of latter-day soviet Gosplan that determines everything according to the availability of public finances.
As all of us with reasonably long memories are aware, the Government of whom the right hon. Gentleman was a distinguished member in the 1990s had very pessimistic views about public expenditure, and cut it. As a housing Minister, he had to put up with some very serious reductions in his budget. The climate has changed, and we have seen considerable investment since then. Inevitably, the downturn will have consequences for a while, but it would be wrong to base planning for the future simply on assumptions of public sector investment. Planning should be based on the wider economic imperatives, which is what is behind the clause.
Ms Winterton: My right hon. Friend is absolutely right. I wish to add only this: I have meetings as a regional Minister with potential inward investors, and they want strong leadership, not only at local authority level, but at regional level. This combination, in which we bringing together the different strands of economic planning with business-focused regional development agencies, alongside political leadership through the leaders’ board, is the way to convince people that we are serious about ensuring that our regional economies are as robust as possible.
As my right hon. Friend the Member for Greenwich and Woolwich says, the right hon. Member for Skipton and Ripon, who spoke the other day about the contribution of North Yorkshire and the fact that plans had to be in place to rescue inadequate tourism or whatever, ought to be listening to what businesses, economists, and potential inward investors are saying about the issue.
Mr. Curry: The Minister is making a distinction between substance and form. My question is this: do we need this big, overarching machinery to deliver the goods? The universities in Yorkshire have a good reputation of getting together to deliver high technology, and they are linked worldwide. The universities in Sheffield, Leeds and York, which are very high quality, do not need a regional strategy to know what they have to do, because they are getting on and doing it.
The Minister extolled “The Northern Way”, but even if it was as successful as she said, that was done without a regional strategy. I do not question whether it is desirable for people to know where they are going, but I do not want everything frozen for five years while people labour to produce a strategy that might be overturned by events.
By the way, I was concerned about the low value-added in tourism in Yorkshire. We need to increase that.
Ms Winterton: Again, the right hon. Gentleman is wrong in assuming that the universities do not want to be involved in the kind of forward planning that we are talking about. I chair the Yorkshire and Humber economic delivery group, which seeks to ensuring we have a regional response to problems resulting from the economic downturn, and is also looking to the future. Because of the way in which the universities in Yorkshire have joined together, they have taken a clear view of the region’s needs and said, “This is what we need to do to help attract inward investment and ensure that our graduates remain in the region.” They are looking at research and development needs, and how universities play a part in local industries. They are extremely focused on the regional agenda, which is why they have come together in such a way, as their region is one of the best in recognising the importance of regional input.
The right hon. Gentleman, as a Member representing a constituency in that area, really ought to look a little closer and perhaps with a slightly more open mind at the benefits we are gaining from the regional approach. I hope that he will be pleasantly surprised by what is happening, but it is incredibly disappointing that the hard work going on at a regional level, often including Conservative councillors, is not in the slightest way recognised by the Opposition.
11.15 am
Ian Stewart: I advise my right hon. Friend to be cautious about accepting the Damascene conversion of the Opposition to localism and local democracy. The right hon. Member for Skipton and Ripon has been leading a working party of sorts looking at localism—they are no doubt attempting to be the new Labour-y Tories for the future. My view is straightforward: it is a bit rich for a party that voted against last year’s Local Transport Bill, thereby wishing to diminish real local democracy, to start advocating local democracy in this Committee.
Ms Winterton: My hon. Friend is right to remind us that during the passage of the Local Transport Act 2008, the Conservative Front-Bench spokesmen were out of touch with what their local councillors recognised as a good Bill that allowed local authorities to plan properly according to local needs. As I recall, local councillors wrote to those Front-Bench spokesmen asking, “Why do you never listen to a word we say?” That is another example of them not wanting to let go, and not recognising or allowing the kind of economic development that is absolutely vital, especially in these difficult economic times.
Mr. Jackson: I had hoped that there would be some consensus in the debate. The right hon. Lady fails to recognise that we have legitimate concerns about whether there is a diversity of provision at regional level, which is dealt with in the clause. She will undoubtedly be aware of a report by the respected International Journal of Urban and Regional Research in 2006 that found, notwithstanding the huge amounts of money that had been spent by the RDAs,
“scant allowance for region specificities as they have all produced strategies that reveal a remarkable generic resemblance”.
In other words, the RDAs are not adding value that will help localities, but are in fact using a template given to them by central Government.
Ms Winterton: It is quite wrong to say that the RDAs are not adding value. The recent report to which I referred showed that every pound spent brought £4 of value to the region. I can send a copy of that report to the hon. Gentleman because he really ought to ensure that he looks at the importance to the regional economies of the work that is being carried out by the RDAs.
Finally, it is important to stress that regional boundaries are a framework rather than a straitjacket. As I have said, we support and encourage joining up between local areas and cross-boundary work at a regional level. There is flexibility in the Bill. I suspect that the amendments are probing but, following my reassurance, I hope that they will be rejected if pressed to a Division. I stress again that this clause is one of the most important in the Bill; voting against it would be to the detriment of the economic prosperity of all our regions in the future.
Dan Rogerson: I was pleased that the Minister addressed the issue in the amendment at the end of this long debate. We could have had a shorter debate that would have quite clearly said that the Liberal Democrats feel that the regional boundaries do not necessarily make sense, although some might. I am not an expert on all regions, and I would not seek to be, as these issues are for people in the regions and their elected representatives to decide.
There seems to be a fixation among Government Members that the boundaries are right. I listened for the Minister’s defence as to why they are right. She said that they are about the same size as the Länder in Germany, but given that the Länder include Bavaria and Bremen, which are of different size and population, that argument does not stack up. If we are merely going to chop up the country to get the population numbers absolutely right, the process becomes even more meaningless. All that makes it obvious that we need more debate about what the regions are.
Ms Winterton: How does the hon. Gentleman envisage the reorganisation of all the boundaries happening? There should be flexibility to work across and within boundaries, but at this point, when there is a complete focus on getting through the economic downturn, while still looking beyond it to what our regions are going to look like, the uncertainty that would be caused by a huge reorganisation would make that extremely unwise. How long does he think such a review would take?
Dan Rogerson: The whole point is that that would be determined by local people. If they think their region is right, that is fine, but presumably the Minister must agree that it is pointless to put together a regional strategy that people feel does not work and does not represent any community of interest. It is very time consuming to go through a process such as the recent regional spatial strategies and to draw up documents that may or may not come into force, or have influence over a particular area, when the people within that area do not feel that it represents a real region.
I am sure that there is the facility for cross-border working, but that leads only to duplication. Rather than having cross-border working between borders in areas that do not make sense, why not have regions that work, that represent communities of interest and that recognise people’s economic, geographical and cultural affinities to get a set of strategies going forward that are right? It is crucial to get that right now, even more than in the future.
In the wider debate about whether there is a purpose to having a regional tier of government and that way of doing things, the Minister came back time and again to the idea that Government offices somehow represent devolution, but in my book they do not. A civil servant who is directed by a Minister, or as part of a Whitehall Department, does not represent any form of devolution just because they sit somewhere out in a region rather than in Whitehall.
Julia Goldsworthy: Does my hon. Friend believe that the power is the equivalent of having a bank branch in the town? The branch does not determine local policy, but implements the main bank’s policy. Government offices for the regions are there to do the Government’s bidding in the regions, not to make decisions.
Dan Rogerson: I thank my hon. Friend for her intervention. People who have been in banking for a long time might say that when bank managers made direct decisions on whom to lend money to and there was genuine devolution of such decisions, people made more sensible lending decisions that we have seen in recent years.
Ms Winterton: It is amazing that the hon. Member for Falmouth and Camborne says—I am surprised that the hon. Member for North Cornwall backs her up—that a local bank just implements its central bank’s policy. The point is that people are saying that they want local branches with the ability to consider what is happening in the local area and to interpret the central bank’s policy to determine what is appropriate. I said about Government offices that there is an important point that one can have a centralised approach—that is what the hon. Member for North Cornwall and, amazingly, the hon. Member for Falmouth and Camborne are now saying—or the Government can be present in the regions. Michael Heseltine importantly accepted that it was important have an approach that recognised the particular issues that pertain within different regions.
Dan Rogerson: That remark shows that the Minister has not acknowledged the debate that we are attempting to promote. How can the Government have a policy appropriate to a region when that region does not function as a region? As the hon. Member for Peterborough said, a regional policy that seeks to reconcile the situation in Swindon with that on the Isles of Scilly just does not work. They have completely different economies and geographical circumstances. I am not saying that regional policies should function at parish level. There are natural communities, but we need more of a debate about what those regions are and what represents a sensible region.
You said, Mr. Amess, that we could have a stand part debate on the clause, and perhaps we can return to whether regional strategies are right. So far, we have not heard any justification for the current regional boundaries or why they should be inviolate, so I shall press the amendment to a Division.
Question put, That the amendment be made.
The Committee divided: Ayes 2, Noes 8.
Division No. 33]
AYES
Goldsworthy, Julia
Rogerson, Dan
NOES
Cooper, Rosie
Efford, Clive
Heppell, Mr. John
McCarthy-Fry, Sarah
Raynsford, rh Mr. Nick
Stewart, Ian
Watts, Mr. Dave
Winterton, rh Ms Rosie
Question accordingly negatived.
The Chairman: Before we move on to the next amendment, this morning I have indulged hon. Members, and we have had a very wide debate on the first group of amendments. I am still minded to have a clause stand part debate later, but I have decided that it will be a short debate.
Dan Rogerson: I beg to move amendment 100, in clause 67, page 50, line 16, after first ‘the’, insert ‘sustainable’.
The Chairman: With this it will be convenient to discuss amendment 72, in clause 67, page 50, line 19, leave out from ‘(b)’ to end of line 20 and insert
‘must be designed so as to ensure that the regional strategy as a whole—
(a) contributes to the mitigation of, and adaptation to, climate change; and
(b) is consistent with the proposals and policies prepared by the Secretary of State under section 13(1) of the Climate Change Act 2008.’.
11.30 am
Dan Rogerson: I shall attempt to be brief and bear in mind the instructions that you have quite rightly given the Committee, Mr. Amess. The amendments seek to put the principle of sustainability at the heart of any regional strategy on any boundary. We are concerned that, given the role that the Bill gives to regional development agencies, which focus on delivering economic targets and growth, important gains that have been made on sustainability policy will be lost. We had such a debate during last year’s Planning Bill Committee, which led to the Planning Act 2008, where it was felt both in Committee and on Report that it was important that every effort was taken to ensure that important principles of sustainability lie at the heart of any legislation and any regional planning process.
The Government’s planning guidance shows that there has been a growing awareness of the issues, particularly in relation to climate change. Amendment 72 centres on the mitigation of climate change and the Government’s ambitious targets, which were approved by the House last year, to tackle climate change. Adaptation is also important; it is absolutely vital that any new planning development is able to adapt to climate change, which is sadly well under way. That is my view, and it is also the view of my hon. Friend the Member for Falmouth and Camborne, who originally tabled amendment 72, as well as the view of other members of the Committee who have added their names to the amendment, which now stands in the name of the hon. Member for Liverpool, Walton (Mr. Kilfoyle).
The amendments are crucial, and I hope that the Government will accept them. They will reassure people who have to engage with regional strategies that the gains in relation to sustainability policy and tackling climate change are included in the Bill, and that a core function of the strategies is not only to address the economic future of the region, but to address issues of sustainability and climate change.
 
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