Local Democracy, Economic Development and Construction Bill [Lords]


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The Chairman: The Minister would be entirely right to address remarks to amendment 110. It was part of the group, and I thought that the hon. Gentleman referred to it obliquely.
Ms Winterton: I must have missed that nugget.
I ask the Committee to reject these amendments, because it is not clear what they would achieve. It appears that they would make local authorities the responsible regional authority without the involvement of regional development agencies. When we come to the stand part debate, I hope that it will become clear that we envisage a partnership between the local authorities and RDAs in drawing up the strategy. We think that that is particularly important given the focus on the economy, but the amendments would limit that partnership.
On amendment 110, I hope that I can reassure the Committee that following amendments in another place, the Bill now requires that the access to information provisions in the Local Government Act 1972, with suitable modifications, as required, be applied to leaders’ boards as constituted by local authorities. We are exploring, with RDAs and local authorities, how best to manage access to information for their joint working on regional strategies outside legislation. With that reassurance and explanation, I hope that the Committee will reject the amendment.
Dan Rogerson: Through the amendments, we sought to identify ways to allow for democratic involvement other than the leaders’ board formula proposed by the Government. I do not think that the Minister seeks to be prescriptive, but the provisions talk only about leaders being represented. It would have been good to have slightly more leeway for local areas to come together and work out appropriate arrangements for their particular circumstances. I have no problem with the concept that RDAs and local authorities should work in partnership. However, there is sometimes a slight power imbalance in that relationship. We would seek to set up a democratic framework that would put democratically elected people at the heart of decision making. The appointed members and officers of the RDA should work alongside them, but not have the same involvement in decision making. That is an important principle that I would have liked to have seen in this Bill. However, we can discuss in more detail, during the clause stand part debate, what leaders’ boards are for and what they will do. On that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
12.15 pm
Dan Rogerson: I beg to move amendment 109, in clause 68, page 51, line 26, leave out subsection (8).
We are moving into the area of the powers of the Secretary of State. Clause 68(8) states:
“If the Secretary of State considers that a Leaders’ Board established for a region is not operating effectively, the Secretary of State may by direction withdraw approval for the scheme under which it is established”.
This is contrary to the view shared by my party in favour of a bottom-up approach. We should be moving forward and creating confidence among people in local areas and regions that their views matter and will be taken seriously. I am also concerned that we are talking about stepping in, where there is a problem, against the leaders’ board rather than the RDA. The Government may have constituted this as a partnership between the two, but it seems that the Secretary of State envisages a greater likelihood of problems with the leaders’ board than with the RDA. We might call into question that premise. My party hopes that we can remove this top-down measure, which enshrines in the Bill greater power for the Secretary of State to interfere in these local and regional mechanisms.
Mr. Jackson: Again, I concur with the hon. Gentleman. We will support his amendment. We believe that subsection (8) vests disproportionate power in the hands of the Secretary of State, particularly the power to remove a leaders’ board from the plan-making process without new primary legislative authority. These powers are open to the possibility of abuse—I use that word because it could well happen.
It also seems that accountability is only one way. The question must be asked why the power is not used in respect of RDAs. Why is it used only for leaders’ boards? It speaks volumes about the disregard and disdain for people at the cutting edge of local government that the Secretary of State can invoke pretty significant powers to disregard the leaders’ board and not have concomitant powers applying to the RDA.
I am sorry that the Government, when drafting the subsection, did not seek the advice, for instance, of the Royal Town Planning Institute, which made the very reasonable point that it would have been better to establish a mechanism enabling the Secretary of State to identify and direct, where necessary, improvements in service by a leaders’ board and enabling equivalent action to be taken against the RDA if warranted. The Government have been over-prescriptive and too heavy-handed and, on that basis, we are minded to support the Liberal Democrat amendment.
Ms Winterton: The aim of the amendment is to remove the power of the Secretary of State to withdraw approval for the leaders’ board scheme. I want to assure the Committee that it is simply a fall-back power to deal with situations in which the leaders’ board is unable to function to the satisfaction of the participating authorities. It is important that we have this provision to ensure that if any difficult situations arise, we can ensure that leaders’ boards function effectively.
Dan Rogerson: In responding, the Minister was keen to point out that it would be almost a petition from the local area—from the region—saying that things were not working well and asking whether the Secretary of State could therefore step in. That is not what the provision says at the moment. It concerns me that something might be set up that is functioning and challenging Government policy on how the region should move forward, but the RDA is unhappy with the challenge it is receiving from the leaders’ board, and therefore the Secretary of State could step in and say that there was some sort of dysfunction and we needed to go back to the drawing board.
The Minister’s response hints at the fact that leaders’ boards may not be the right model everywhere. In respect of the previous debate, which I shall not seek to reopen, it shows an acknowledgment by the Secretary of State that all might not be perfect with leaders’ boards. Therefore, it is a shame that it is the only model on offer.
Having said that, the measure is unnecessary and gives too much power, which could be abused, to the Secretary of State. I will therefore press the amendment to a vote.
Question put, That the amendment be made:—
The Committee divided: Ayes 5, Noes 8.
Division No. 37]
AYES
Curry, rh Mr. David
Goldsworthy, Julia
Goodman, Mr. Paul
Jackson, Mr. Stewart
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.
Question proposed, That the clause stand part of the Bill.
Mr. Jackson: I shall endeavour not to revisit the debate on subsection (8), which focused on what was probably our primary reason for thinking that the clause is unsatisfactory. However, there are several other reasons as well.
The clause is loosely written, in particular subsection (4) about consultation. It is inappropriate to put in the Bill that the Secretary of State should, in effect, be able to choose whom they wish to be consulted with and by. No doubt the Minister will say that that is normal procedure with Bills, and that it is how they are drafted by people with more expertise than I have, but it cannot be acceptable in a mature democracy that a central personality in, as I said previously, a unitary state, can say that they will choose whom they seek to accept consultation from on an important issue such as a regional strategy. We are not happy about that.
Clearly, we are also unhappy that subsection (8) is in the clause because it is all very well for the regional development agency—
Mr. Goodman: Perhaps the Minister will provide an explanation of the point, if any, regarding consultation. It is a bit puzzling that such a provision was not inserted in previous clauses that we considered. For example, clause 66 on local authority economic assessments simply requires that the Secretary of State should consult.
Mr. Jackson: As ever, my hon. Friend is forensic and astute. He is absolutely right, and the Minister should address that issue. We need to know why the provision is considered to be appropriate in this clause but not in others.
We also need to look at the concept of “leader”. The definition of leader is loose, and we can see future legal difficulties in respect of it. For instance, is a leader a directly elected mayor in the south-west region? Is the leader the directly elected mayor of Torbay or is it the Conservative leader of the administration? We have mayoralties across the country—in Hartlepool, Middlesbrough, and Bedford. The issue of who the leader is needs to be considered. Will the leader have a deputy, and will they always be the deputy leader of the district council or the borough council? Moreover, the wording in subsection (10) is very loose and massively open to interpretation. It states:
“The application referred to in subsection (9) may be with such modifications as the Secretary of State considers necessary or expedient.”
That vests enormous powers in the hands of the Secretary of State in dealing with leaders’ boards but not with RDAs.
This whole clause fails to rise to the challenge of the sub-national review. We Conservatives took the Government at their word when the sub-national review was announced and enacted. It was about devolving power to localities and giving more say to democratically elected local councillors. This clause is an inadequate response to the consultation that took place at the time. People in district, borough and unitary authorities and other councils did not say, “Abolish regional assemblies and let us have this super-regional quango for the great and the good.” They said, “Let’s have real democracy and accountability at a local level.” Therefore, this clause fails the test. We believe that it also fails in the context of joint responsibilities for regional policy to address that democratic deficit.
Finally, it is appropriate to mention the British Chambers of Commerce, which makes the point that the architecture being established by this clause within the context of the wider Bill would weaken the sub-regional planning role of local authorities and further undermine their capacity to make decisions in the best interests of their local residents.
Therefore, for all those reasons, we are not minded to support the clause and we will be voting against it.
Mr. Curry: We now come to the central dilemma at the heart of the Government’s policy. They believe that there has to be a regional dimension—an aspect of policy that is delivered in a zone below that of the nation. The question is, how do we make that dimension accountable? Ever since the election in the north-east, that question has remained unanswered. A directly elected regional assembly would have been an answer. That went down not just marginally but hugely in the region that was assumed to be the most likely to vote in favour of it. Some people might argue that it was defeated because the powers given to the regional assembly were piddling—about 6p in the pound in terms of public expenditure. In fact the idea went down for other reasons. It went down because people felt that there was going to be another tier of politicians and they had enough tiers of politicians already. Quite frankly, had the regional assembly been endowed with the riches of Croesus and the wisdom of Solomon, I suspect that it would still have been voted down in the region.
Julia Goldsworthy: Will the right hon. Gentleman give way?
Mr. Curry: On the Bible or on the regional assembly?
Julia Goldsworthy: Does the right hon. Gentleman think that part of the reason why the assembly was voted down was perhaps that the region did not make sense to the people who were being asked to vote to make it democratically accountable?
Mr. Curry: What matters is that it was defeated. It was defeated so heavily that that corpse will not come back to life.
That was the first outcome. The second way was to make the assembly directly accountable to existing local democratic institutions. Broadly speaking, that is a policy of my party, but the Government believe that it is too diffuse and that one really has to have an alternative and better form of accountability. The trouble is how to devise and deliver it. If there is no regional assembly—that has been removed from the picture—and one does not believe that local authorities have the capacity or the scale to be able to do it, what is left?
12.30 pm
We are now on our second or third attempt to find something left. We had the regional assemblies with the nominated members, which have been abolished by the Bill, and now we have the leaders’ board. We envisage a somewhat curious mixture of a quango and people who are indirectly elected to serve. They are not directly accountable; nobody is going to vote for somebody to be a member of the leaders’ board. They are going to vote for their councillor who may emerge as the leader or, perhaps, as directly elected mayor, and they will then represent them.
That immediately poses a series of questions, the first regarding the hybrid of the quango and the elected councillors. Secondly, there is the question of representation. I have already mentioned the south-east and the existence of 77 councils, but I have just looked up another three areas. In Yorkshire and Humber, which the Minister and I are most familiar with, there are 22 councils. I suspect that two national parks have to be added to that, so there are 24 elected bodies of one sort or another. In the south-west of England, I make it 41 councils, and there will be national parks to add there as well. In the north-west, we have 41 local authorities and they are quite different in character. Yorkshire and Humber, in population terms, is weighted towards the south and west of Yorkshire, which consists entirely of metropolitan authorities. The district councils are very much exclusively clustered in north Yorkshire. Much more scattered is the south-west, where we have the new unitary councils, but the district councils are much more predominant. In the south-east, of course, there are huge numbers of district councils. The whole of old Lancashire is still divided into district councils.
Even if agreement can be made on who the leaders will be on the board—in Yorkshire and Humber I understand that the agreement is for eight people to sit on it—how do they then report back? It is one thing for the leaders to have a congress of local authority leaders who will choose their representatives to sit on the board, but it is quite another for them to be accountable when they take decisions that might not necessarily be popular. I am afraid that I am repeating myself when I say that housing issues are always the most controversial. People get most excited when they think that housing is being imposed on them. The leaders have got to report back. How will that process of accountability work? How will members be replaced if they do not operate in, to use the Bill’s words, an “effective” way? I can see all sorts of difficulty with that very indirect accountability.
 
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