Local Democracy, Economic Development and Construction Bill [Lords]


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Clause 75

Approval of revision by Secretary of State
Dan Rogerson: I beg to move amendment 118, in clause 75, page 54, line 27, leave out subsection (2).
The Chairman: With this it will be convenient to discuss the following: amendment 119, in clause 75, page 54, line 31, leave out subsection (3).
Amendment 120, in clause 75, page 54, line 36, leave out subsection (4).
Dan Rogerson: In the hope that we can move swiftly on, I will be brief. The amendments reflect our suspicion of the Secretary of State’s role in overriding what might have been agreed under arrangements already in place. We have said before that those arrangements are imperfect, but if we are to have a slightly more accountable system, we really prefer that it stand, rather than have the Secretary of State able to nitpick every revision made by regional bodies. It undermines the whole purpose of any form of regional government in which local government is involved if the Secretary of State can overrule it.
Mr. Raynsford: We passed rather rapidly over the clause 74, which required the responsible regional authorities to take account of regional strategies in adjoining areas. In the event of the regional body approving a strategy that is completely in conflict with that of another region and that other region objecting strongly, the revisions that the hon. Gentleman is proposing leave no mechanism for resolution. Does he not recognise that there will be circumstances in which some sort of higher authority has to take a look at situations in which there is a conflict between the regional strategies prepared by different regions? Frankly, it is not satisfactory to remove the role of the Secretary of State without providing an alternative mechanism for resolving such disputes.
Dan Rogerson: The preceding clause refers to the need for the responsible regional authorities to “have regard to” certain matters. If they do not have regard to the matters listed, we have a problem, because those strategies cannot come into force unless the regions get together and resolve the issue.
I am concerned about the fact that, as is often the case when discussing such matters, if there is a reserved power for a Secretary of State in a Bill, the Government say, “It will only be used very sparingly, and you must trust us that it is absolutely fine.” We tend to take a slightly more suspicious view, which is that the instincts of Government and Whitehall are not to be charitable when handed power, but to interfere more if the power is there for them to do so. I think that we differ in our view of how Government works.
The principle behind the amendments is to allow responsible regional authorities to make amendments to their strategy. I am mindful of the previous clause, which we did not oppose, and that there are other issues that need to be dealt with. However, we hope that it will not be for the Secretary of State to be involved with and sign off everything.
Ms Winterton: I can be brief because my right hon. Friend the Member for Greenwich and Woolwich set out one obvious scenario in which the effect of the Liberal Democrat amendment would be to remove the ability to sort out cases in which there were differences in regional strategies between regions. If, for example, the responsible regional authorities in one area do not agree, the Secretary of State needs to have this power, because it is important that there is an arbiter. Also, if any agreed strategy had completely ignored any of the priorities set out nationally—perhaps through this House—it is important for the Secretary of State to be able to intervene in those circumstances. That is why I hope that the Committee will not accept the amendments.
Dan Rogerson: One of the important reasons for tabling such amendments is to get clarification from the Minister on the record about the sort of circumstances in which the power would be used. We have done that and we are mindful that people will now have something to reflect back on in the future, and that, of course, any future Secretary of State can be reminded of what was said if the Bill comes into force. Although I am not entirely convinced that the power will always be used in the way that the Minister has set out, I hope that that is the case and, on that basis, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Dan Rogerson: I beg to move amendment 55, in clause 75, page 54, line 31, leave out subsection (3) and insert—
‘(3) If after proceedings under subsection (2)(b) the Secretary of State proposes to make any modifications to the draft they must publish—
(a) the changes proposed,
(b) the reasons for doing so.
(3A) Any person may make representations on the proposed changes.’.
The Chairman: With this it will be convenient to discuss amendment 56, in clause 75, page 54, line 44, at end insert
‘including the reasons for making any changes to the submitted draft revision.’.
Dan Rogerson: My hon. Friend the Member for Falmouth and Camborne and I were discussing earlier the principle I was debating with the right hon. Member for Greenwich and Woolwich, which is that the Liberal Democrats seem to see the worst in central Government and the best in local government. When a party is in government, perhaps it tends to see things the other way around. The principle behind amendments 55 and 56 is to ensure that, where the Secretary of State has the power to approve or not approve draft provisions—we have moved on from the debate about whether or not the Secretary of State will have that power—and intervene in that way, the reasons behind his intervention and the type of changes that he wishes to make are published for consultation, so that Secretary of State must consult widely before taking any action that the Bill would allow him to take.
Dan Rogerson: The Minister sees that the principle behind the amendments follows on from the principle that we were debating earlier. We must ensure that every opportunity is given to members of the public to comment on revisions, which may well be significant. From the viewpoint of Whitehall, they may not seem highly significant, but a small revision to an overarching regional strategy could have huge consequences for a community or area and be a very contentious issue. We must therefore ensure that there is ample opportunity for people in such areas to comment on any revision to the strategy that may affect them greatly. Furthermore, the Secretary of State must accept the need for that consultation and seek to consult as widely as possible.
However, having received those assurances from the Minister, I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question put, That the clause stand part of the Bill.
The Committee divided: Ayes 10, Noes 5.
Division No. 45]
AYES
Cooper, Rosie
Efford, Clive
Goldsworthy, Julia
Heppell, Mr. John
McCarthy-Fry, Sarah
Raynsford, rh Mr. Nick
Rogerson, Dan
Stewart, Ian
Watts, Mr. Dave
Winterton, rh Ms Rosie
NOES
Curry, rh Mr. David
Dunne, Mr. Philip
Goodman, Mr. Paul
Jackson, Mr. Stewart
Lilley, rh Mr. Peter
Question accordingly agreed to.
Clause 75 ordered to stand part of the Bill.

Clause 76

Reserve powers of Secretary of State
Question proposed, That the clause stand part of the Bill.
Dan Rogerson: We have expressed suspicion about the Secretary of State having reserve powers, but clause 76 is the heart of the matter. In effect, it says, “If you don’t get on and do it, we will impose a strategy or a significant revision to a strategy.” I have concerns about that. Once again, I would like to hear the Minister’s clarification of the purpose of the clause and her explanation of the circumstances in which it might be used.
Ms Winterton: Clause 76 sets out the Secretary of State’s reserve power to revise a regional strategy, in whole or in part, where the responsible regional authority has failed to do so at the time specified in regulations or directions. The clause also makes a saving provision for any steps already carried out in relation to a revision of an existing regional spatial or economic strategy at the time that the clause is commenced.
I know that the hon. Member for North Cornwall will probably not agree with what I am about to say, but we do not believe that the powers afforded to the Secretary of State are excessive. Indeed, the Secretary of State’s powers in this part of the Bill are broadly similar to those in the Regional Development Agencies Act 1998 and the Planning and Compulsory Purchase Act 2004. The only wholly new powers are in relation to the leaders’ boards, but that is because the mechanism is a new one.
6.15 pm
Dan Rogerson: Will the Minister explain subsection (6), which states:
“If the Secretary of State thinks it necessary or expedient to do so the Secretary of State may at any time revoke all or any part of a regional strategy”?
“Expedient” is an interesting word, and although it might be customary in such cases, it seems a little wide-ranging. To revoke all or any of a regional strategy is the nuclear option. We have a whole Bill about consultation and involving people, but this tiny little subsection effectively says that if the Secretary of State does not like it, we can rewrite the whole thing at a moment’s notice. That is a problem.
Ms Winterton: Again, I can assure the hon. Gentleman—I suspect that he will greet this with hollow laughter—that we intend that the Government will use reserve powers sparingly and as a last resort. I do mean that. Obviously the word “expedient” implies that there would be extremely good reasons for doing so. I must emphasise that the Government have taken enormous steps to devolve power to regional authorities. It is not the Government who, throughout the course of the Bill, have voted against the ability to draw up regional strategies and for there to be democratic accountability through the leaders’ board.
We want to see the strategies working effectively. There is no reason why they should not, because we believe that this is a good way to deliver economic prosperity and improve competitiveness in the regions. The principle here is that things have to be done at regional level. The circumstances in which the Secretary of State would wish to intervene in such a way would necessarily be as a last resort, and we believe it is important to have these powers as that last resort.
Mr. Lilley: Will the Minister elaborate a little on a point that I think she made: the reserve powers here are similar to existing powers. As far as I can see, the reserve powers here allow the Minister to revise a regional strategy only if the relevant authority has not done so. I get the impression that, at present, the Secretary of State can revise a regional strategy, even if the regional body has itself revised it. Perhaps she will acquaint me with what the change in the Bill is, or what the existing legislation is.
Is the Minister saying that the councils were acting outwith their powers? This clause would not give them such powers. Will there be an improvement on the present situation in such circumstances? Will the clause prevent the Secretary of State from getting into bed with local authorities that are re-revising their strategy after they have been through all the consultation?
Mr. Raynsford: Will the right hon. Gentleman give way?
Mr. Lilley: I give way to the defender of the indefensible.
Mr. Raynsford: I am grateful to the right hon. Gentleman. I simply refer him back to clause 75, which we approved a moment ago and provides for the circumstances about which he is concerned. Clause 76 simply makes provision for a failure by the responsible regional body to come forward with a regional strategy. In such circumstances, the Secretary of State has to act because of the failure of the regional body to produce a strategy.
There are circumstances at present in which the Secretary of State may make revisions to a strategic document prepared by a regional authority that is in some way defective. However, as I said, that is covered by clause 75. I hope that I am not defending the indefensible; I am simply pointing out that the right hon. Gentleman appears to have missed a clause.
 
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