Local Democracy, Economic Development and Construction Bill [Lords]


[back to previous text]

Julia Goldsworthy: Although I do not intend to press the amendments, I am not entirely sure whether the Minister has answered all the questions that the amendments raise. She seems perfectly happy for the responsibilities of all the other authorities listed in subsection (4) to be covered by the definition in subsection (1):
“the whole or any part of the area for which the person acts or is established coincides with or falls within that area”.
If that definition of the extent of responsibilities is good enough for every other body listed in subsection (4), why is it not good enough for the Secretary of State? Why is it not clear enough? I do not think that the Minister has answered that question.
The issue of the ability to amend the list goes back to the Minister’s assumption that the Government will always act in the best interests. Although I can, of course, envisage circumstances in which bodies are disbanded or new ones are created and the list needs to be amended, subsection (5) allows the Secretary of State to not only remove authorities that no longer exist but to remove authorities that it might not be convenient or expedient to have on the list. I wonder why the list cannot simply be amended by regulation, so that there is an opportunity for scrutiny of what is on the list, rather than by order of the Secretary of State. I remain concerned about those two issues, but given what we have to get through today it might take too much time to press the amendments.
10 am
Ms Winterton: To give one final reassurance, I must say that the power to remove bodies from the list is exercisable by order. It is subject to parliamentary control and must follow consultation. It cannot be used lightly, without coming back to Parliament.
Julia Goldsworthy: I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Question proposed, That the clause stand part of the Bill.
Mr. Lilley: The Committee will know that my worries come from the actions of a group of authorities. They could be operating under a multi-area agreement, and have predatory intentions outside their area that will affect another local authority. My two concerns might be relevant to the clause, but they arise from a lack of clarity under clause 118, which states that a multi-area agreement
“specifies improvement targets for that area.”
However, if the authorities are achieving improvements in, say, Luton, by building houses in north Hertfordshire, what happens then? Can the Minister, under the clause, require them to include north Herts in the multi-area agreement so that the local authority that is being impinged upon in the pursuit of a target, which does not relate to it but is the housing target for Luton and south Bedfordshire, will be included in the multi-area agreement?
In the rather sinister goings on between Luton and south Bedfordshire to specify an area for building in north Herts, a meeting took place involving Luton council, South Bedfordshire council, the Minister’s Department—before she was in office—and a private developer. A development agency can be a party to a multi-area agreement, but will the right hon. Lady make it absolutely clear beyond peradventure that a private developer cannot be part of the agreement or party to an authority or document seeking to improve Luton by building in Hertfordshire? All hon. Members can think of parallel circumstances that might affect their constituencies, and I should be grateful if the Minister responded to that point.
Ms Winterton: Private developers would not be part of a multi-area agreement; which authorities can be part is set out clearly. The whole concept of a multi-area agreement is that different authorities sign up and agree to the targets. Local authorities have said to us that they want a similar process to local area agreements because that would mean a stronger statutory basis for operating the multi-area agreement.
Mr. Lilley: I am grateful to the Minister, who is endeavouring to be helpful and positive. Clause 118 states:
“specifies improvement targets for that area”,
rather than “in” that area. Given that the courts take into account what Ministers say, will she make it clear that this is meant to apply to targets for and in the area of the local authorities—not just for an area—but achieved by actions taking place outside the area?
Ms Winterton: I would be extremely surprised if the targets not owned by local authorities in an area could somehow apply outside an area. I suspect that the drafting was carried out on legal advice.
Mr. Raynsford: I rise merely to raise a speculative point that will create an almost impossible difficulty for the right hon. Member for Hitchin and Harpenden. If the multi-area agreement was to produce a target for improving air quality, it would be completely impossible to define the way to achieve that target so that it related only to the area of the authorities making the agreement, because the very nature of the target would have wider implications. That is why it is not wise for us to be unduly prescriptive in seeking to define the role of a multi-area agreement. I hear exactly the right hon. Gentleman’s point. Multi-area agreements will not necessarily be concerned solely with housing. They could be concerned with a number of other provisions, such as air quality, for which there would be an obvious intellectual difficulty in coming up with the formulation that he is pressing towards.
Ms Winterton: On the north Herts scenario, I re-emphasise that north Herts would agree to a target only if it was happy with it. The target that it signs up to must apply to its functions; and it is not bound to any target if it does not sign up for it. I hope that that is helpful.
Mr. Lilley: In fact, it undoes some of the good that the Minister was doing earlier. The point is not that north Herts has signed up to the Luton housing target—a target imposed on Luton and south Beds by central Government. They are trying to fulfil their target, for their area, by building outside the area. The right hon. Member for Greenwich and Woolwich supposed that that could be a problem in respect of other functions. What if Greenwich were to try to improve the quality of air in Greenwich—in my experience, of a high calibre already—by building a waste-disposal plant in someone else’s constituency, so that all the fumes from the waste processes in Greenwich were disseminated in Bromley, say? Would that be within the powers established by the Bill for a multi-area agreement, in a case where Bromley is not part of that agreement?
Question put and agreed to.
Clause 120 accordingly ordered to stand part of the Bill.

Clause 121

Proposal for multi-area agreement
Julia Goldsworthy: I beg to move amendment 161, in clause 121, page 76, line 10, leave out from ‘may’ to end of line 12 and insert
‘notify the Secretary of State of their intention to establish a multi-area agreement.’.
The Chairman: With this it will be convenient to discuss the following: amendment 162, in clause 121, page 76, line 19, leave out ‘request’ and insert ‘notification’.
Amendment 163, in clause 121, page 76, line 20, leave out ‘request’ and insert ‘notification’.
Amendment 164, in clause 121, page 76, line 24, leave out ‘request’ and insert ‘notification’.
Amendment 165, in clause 122, page 76, line 27, leave out subsection (1).
Amendment 166, in clause 122, page 76, line 36, leave out subsection (4).
Amendment 92, in clause 123, page 77, line 2, leave out from ‘agreement’ to ‘the’ in line 3.
Amendment 93, in clause 124, page 77, line 26, leave out ‘Secretary of State approves’ and insert ‘local authorities and partner authorities approve’.
Amendment 94, in clause 124, page 77, line 28, leave out subsection (3).
Amendment 95, in clause 124, page 77, line 31, leave out subsection (4).
Amendment 96, in clause 125, page 77, line 35, leave out subsection (1).
Amendment 97, in clause 129, page 79, line 12, leave out paragraph (b).
Julia Goldsworthy: Although the amendments have been grouped with clause 121, they relate right the way through clauses 121 to 129. Considering them together is logical, because the next part of the Bill seeks to set out the mechanics of how multi-area agreements work: how they are initiated, how the proposals move forward, and how they are prepared, approved, submitted and revised.
In the Minister’s earlier remarks on multi-area agreements, she spoke of local authorities’ demand that multi-area agreements be put on a statutory footing. However, what concerns we Liberal Democrats is not only that almost every stage of the progress of multi-area agreements—their initiation, proposal, preparation, approval, revision and submission—is dependent on the Secretary of State’s approval, but that every stage could be initiated by direction of the Secretary of the State. It is difficult for the process to be purely bottom-up if, at every stage, the Secretary of State can direct a multi-area agreement to be revised, initiated or proposed. That concerns us greatly, because it could undermine what, according to the Minister, multi-area agreements are there to achieve, which is to allow local authorities to work together. They are not there to allow groups of local authorities to work together under the direction of the Secretary of State.
Our proposals would allow local authorities to notify the Secretary of State of their intention to put forward a multi-area agreement, rather saying to the Secretary of State that they would like to do so. The amendments put all the power firmly in the hands of the local authorities that will be delivering the multi-area agreements, rather than in the hands of the Secretary of State. That is the principle we are seeking to establish. We are trying to establish a clear, bottom-up process, rather than the top-down one that we fear is being perpetuated through these clauses.
Mr. Curry: I am afraid that I am going to start to sound like an old Stalinist—
The Exchequer Secretary to the Treasury (Sarah McCarthy-Fry): Never!
Mr. Curry: Perhaps I used to be a young Stalinist.
In terms of aspiration, what the Liberal Democrats are doing is remarkable. In terms of practicality, I do not think a great deal of it. Frankly, multi-area agreements are often brokered by Government offices, which play a huge part in their development. The powers of the Secretary of State often give a sort of back-stop to the agreements for local authorities. I suspect that local authorities would not welcome a provision that cut them loose so dramatically from the Secretary of State, not least because he is a participator in multi-area agreements. I admire the optimism behind the proposals, but in the real world local authorities are not unhappy with such tutelage, and in many respects need it. The Secretary of State and his powers are part of multi-area agreements. Obviously, those agreements that are going to have a statutory power—multi-area agreements with attitude—need the Secretary of State to be welded into this process. As always, the key is how the Secretary of State exercises the powers.
The history of multi-area agreements is not bad. A series of them have been signed in south Yorkshire and in Lancashire, for example. The representations I have received show that people are happy with the process and are quite optimistic. As I said, given that there are so many participants—including a significant number who are not directly democratically accountable—the big issue is how the citizen can find a way in and feel that their voice is being heard in the extraordinarily complex landscape we are developing.
Mr. Raynsford: I cannot but observe that the right hon. Gentleman has said something with which I wholly concur. The hon. Member for Wycombe may wish to recall our debate last week, in which I was categorised not quite as a Stalinist, but as someone who advocates a little helpful hand on the tiller from Government to achieve results that local authorities might not achieve by themselves. I wholly concur with the right hon. Gentleman’s comments, in which he advocated a little helpful hand on the tiller from central Government to assist local authorities. I hope that the hon. Member for Wycombe will reflect that, far from there being a major divide on this issue, the right hon. Gentleman’s view is almost entirely in agreement with mine.
Ms Winterton: Let me say just two things. The points made by my right hon. Friend the Member for Greenwich and Woolwich and the right hon. Member for Skipton and Ripon are exactly right.
I confirm that the Secretary of State’s power of direction is just a formal mechanism that acts as a trigger for the duty for local authorities and partner authorities to co-operate in determining the improvement targets to be set out in the draft agreement. The Secretary of State can issue the direction only if it is requested by the local authorities for the proposed area. The process is still voluntary at its inception. Local authorities do not have to go down the route of an MAA with duties if they do not want to. They can still choose a non-statutory MAA as an alternative. The process is entirely a response to local authorities’ wish to have this power. As I said, it is necessary to have a mechanism that involves the Secretary of State to trigger to the duties. With that, I hope that the hon. Lady will withdraw the amendment.
10.15 am
Julia Goldsworthy: The Minister has just said that the Secretary of State’s direction can come only following a request from local authorities, but the powers in these clauses presumably also allow the Secretary of State not to make a direction following a request. The Secretary of State says that the process is nothing but a formality and that these are the words that we need to ensure that what local authorities want will happen, but that formality perhaps gives an important and clear statement of who is in control.
The Minister says that the process is a formality, but the amendments would say that the Secretary of State must be involved only on an equal footing. However, the powers that are being reserved are not equal, and there is ultimately a lot in the gift of the Secretary of State.
The fact that the hon. Member for Wycombe did not speak perhaps implies that, despite the language in “Control Shift”, his sympathies lie more with the contribution made by the former Minister. However, we are still very much “control-alt-delete”, rather than “Control Shift”. For that reason, I will press amendment 161.
Question put, That the amendment be made.
The Committee divided: Ayes 2, Noes 9.
 
Previous Contents Continue
House of Commons 
home page Parliament home page House of 
Lords home page search page enquiries ordering index

©Parliamentary copyright 2009
Prepared 19 June 2009