Local Democracy, Economic Development and Construction Bill [Lords]


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Mr. Curry: I seek clarification. My understanding is that the central decision-making unit, to put it that way, would be composed of nominated members of the regional development agency, although perhaps not all the members. However, in the case of Yorkshire and Humber, there would presumably be eight members. The other half of the board would consist of people who were exclusively elected local authority representatives so that there would be a balance between the quango representatives and the local authority representatives. Are we now saying that the leaders’ board may include people who have not been elected? Secondly, does the Minister have any guidelines in mind as to whether or not there should be some broad political balance among those people who are elected to serve? It is easier to achieve that in some parts of the country than others. It would be quite difficult to do that in the south-east at the moment, but there have been times when it would have been difficult in the north-east, for example. Alternatively, is a desire to seek political balance not a relevant consideration?
Ms Winterton: Taking Yorkshire and Humber as an example of how the scheme has been drawn up, there has been agreement in that region to have, as the right hon. Gentleman said, eight members of the leaders’ board out of approximately 22 local authorities. That has been agreed by the local authorities and all councillors who are represented. Below that, there are a number of subsidiary boards relating to housing, transport, planning and economic regeneration—those are roughly the advisory committees.
In Yorkshire and Humber—I am sure this applies to other regions as well—there has been a keenness to involve people who might previously have been on the regional assembly. That is sometimes achieved as part of a scrutiny role, and sometimes there has been consideration of co-opting people on to some of the boards that have been established, such as people from the voluntary sector and the trade union movement, and representatives of the faith movement or environmental groups. There are a number of ways in which people can remain involved in the decision-making process.
Mr. Curry: But the holding company—if I may use that expression—that makes a decision is composed exclusively of members of the regional development agency and elected local authority representatives, whether or not they are leaders of individual local authorities.
Ms Winterton: The current interim bodies have to abide by existing legislation, which requires the regional planning body to include other stakeholders. However, as I have said, regions such as Yorkshire and Humber have been keen to ensure that other voices are heard, whether by scrutiny or by the ability co-opt members, as sometimes happens. The new legislation itself will not require other stakeholders to be involved, but I think there has been sensitivity about ensuring that people do not feel that they have been excluded from the drawing up of regional strategies. In fact, people felt that there was a good reason to have a regional strategy on the environment and other areas.
We are aware that the leaders’ board schemes might, outside the scheme itself, want to involve other stakeholders in scrutiny, or involve them through the local authority structure. We will also make it clear in our early advice about the leaders’ boards that we expect the inner leaders’ board—if you like—to be made up of elected members. We are keen to ensure that there is sensitivity about the fact that there are many other groups and organisations that want to have an input—they have already been doing so through the assemblies. We will therefore look at how we can encourage scrutiny of proposed plans.
Mr. Curry: There is no point in getting rid of the existing regional assemblies if, in practice, they are then duplicated in the new structure. May I be absolutely clear that the main decision-making body will be exclusively made up of RDA and local authority people who have been elected and have their own mandate, and that whatever subsidiary bodies they bring in, that central core remains exclusively elected people on the RDA?
Ms Winterton: That is what I have just said. I will say this again if the right hon. Gentleman would like me to: the early advice will make it very clear that we expect the leaders’ board to be made up of elected members. Having said that, I think that the clause is the right way to get a balance between elected democratic representation and the strategic focus of the regional development agencies. I hope that the Committee will support the clause.
Question put, That the clause stand part of the Bill.
The Committee divided: Ayes 8, Noes 7.
Division No. 38]
AYES
Cooper, Rosie
Efford, Clive
Heppell, Mr. John
McCarthy-Fry, Sarah
Raynsford, rh Mr. Nick
Stewart, Ian
Watts, Mr. Dave
Winterton, rh Ms Rosie
NOES
Curry, rh Mr. David
Dunne, Mr. Philip
Goldsworthy, Julia
Goodman, Mr. Paul
Jackson, Mr. Stewart
Lilley, rh Mr. Peter
Rogerson, Dan
Question accordingly agreed to.
Clause 68 ordered to stand part of the Bill.

Clause 69

Responsible regional authorities
Question proposed, That the clause stand part of the Bill.
Julia Goldsworthy: I rise to make a few brief comments. We discussed on the previous clause the extent to which leaders’ boards and the indirectly elected representatives who, it now seems, will sit on them give a gloss of legitimacy to the work that the RDAs undertake. The clause reveals who actually is in charge. Although on earlier clauses we asked, “Is this really necessary?” the key question in the next few clauses is, “Who is in charge of the process?” The clause makes it clear that the RDA is the first among equals in the partnership between it and the leaders’ board because, if I understand the clause correctly, the leaders’ board can be suspended and, if that happens, the RDA stays in charge.
Our earlier amendments tried to firmly establish that even though the leaders’ boards were indirectly elected—we wanted to find ways to make them more directly and democratically representative and accountable—the responsible regional authority had some kind of democratic legitimacy and would not be overpowered by the RDA. Our main concern about the clause is that it will still give a huge amount of power to the RDA and undermine a clear chain of accountability.
Mr. Jackson: I support the hon. Lady’s comments because this short clause seems to encapsulate a fundamental dichotomy between what the Minister says is its purpose, which is essentially to require the leaders’ boards and RDAs to act jointly, and its substance. Subsection (2) is effectively open-ended. It could give rise to an open-ended arrangement whereby a leaders’ board is unable to operate effectively for unspecified reasons, which may come to light and we may have more information about via regulation. We do not know on what basis that might happen—it might be a problem with a group on the board having an agenda over regional issues at variance with another group on the leaders’ board, or it might be a financial or organisational issue.
5pm
Mr. Raynsford: The hon. Gentleman will understand that we highlighted in our discussion the need, wherever possible, to give discretion and freedom to local authorities to develop appropriate arrangements in their areas. The Government’s intention is that local authorities should have a good measure of discretion, within a framework that ensures that the new leaders’ boards work and that is subject to approval by the Secretary of State. Is the hon. Gentleman suggesting that that is wrong, that there should be no such discretion and that there should be no scope to have different arrangements and, if necessary, to decide not to have a leaders’ board? If that happens, the means to continue the arrangements must be in place. Unless the regional development agency is in a suitable position, we could be in stasis. Does he recognise that the measure is a necessary safeguard against that?
Mr. Jackson: The right hon. Gentleman makes some key philosophical points about the relationship between local and central Government, but that is not relevant to subsection (2).
Julia Goldsworthy: I wonder whether the right hon. Member for Greenwich and Woolwich has got things the wrong way round. The previous clause requires leaders’ boards to be established and gives the Secretary of State the right not to go ahead with them. Whether or not they are established is within the gift of the Secretary of State, not the local authority.
Mr. Jackson: The hon. Lady comes to my point before I do.
Ian Stewart (Eccles) (Lab): Will the hon. Gentleman give way?
Mr. Jackson: I shall make a little progress and then give way to the hon. Gentleman, as long as he does not wax lyrical about transport policy in Greater Manchester.
Ian Stewart: That is my job.
Mr. Jackson: It is the hon. Gentleman’s job, but perhaps not in this Committee. The issue is about the Secretary of State’s powers. The practical ramifications of the clause are that the Secretary of State could maintain an open-ended arrangement in which there was an RDA but no leaders’ board ad infinitum, thus subverting the democratic voice of local people. Incidentally, we would like to say on record that the regional assemblies do not get a mention—they are dead and buried in a schedule—so, in terms of democracy, they are gone. The subsection allows the Secretary of State, if he or she wishes, to have only the RDAs making decisions, and that situation could drag on.
The Royal Town Planning Institute in particular draws attention to the lack of a dispute resolution process. The Minister may say that that will be covered by regulations, and I will accept that in good faith. There may be contested policy positions that will not be improved if a leaders’ board is not in situ and the RDA is governing alone. There may be delay and deadlock as a result.
Ian Stewart: I point out that there are integrated transport issues in the Bill.
I am perplexed by the hon. Gentleman’s line. First, he put it to the Committee that leaders’ boards may not go ahead by local decision, and he then accepted an intervention from the Liberal Front-Bench spokesperson who said that the decision-making power was with the Secretary of State. How can the hon. Gentleman reconcile those two positions?
Mr. Jackson: I am merely reading the relevant subsection. If there is any inconsistency in the argument, it is in the drafting of the Bill and this clause in particular. I hope the Minister will clarify the situation; but as it stands, we have serious concerns.
Ms Winterton: Clause 69 identifies the responsible regional authorities referred to throughout the remainder of this part of the Bill as the regional development agency and the leaders’ board for the region. Subsection (2) is quite explanatory. It states that
“if during any period after the coming into force of this section there is no leaders’ board for a region”—
for example, if the local authorities cannot agree on the constitution of a leaders’ board, or if nobody in the region wants to participate—the responsible regional authority will be the RDA on its own. We do not want that to happen—we want leaders’ boards to be properly constituted—but we have to plan for an eventuality where the leaders’ board breaks down or has not been properly constituted, to ensure there would be a responsible regional authority in the area. There is nothing sinister about that; it is a fail-safe in the Bill for the reasons that I have set out. That is why I urge the Committee to support clause 69.
Question put, That the clause stand part of the Bill.
The Committee divided: Ayes 8, Noes 6.
Division No. 39]
AYES
Cooper, Rosie
Efford, Clive
Heppell, Mr. John
McCarthy-Fry, Sarah
Raynsford, rh Mr. Nick
Stewart, Ian
Watts, Mr. Dave
Winterton, rh Ms Rosie
NOES
Curry, rh Mr. David
Dunne, Mr. Philip
Goldsworthy, Julia
Goodman, Mr. Paul
Jackson, Mr. Stewart
Rogerson, Dan
Question accordingly agreed to.
Clause 69 ordered to stand part of the Bill.
 
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