Local Democracy, Economic Development and Construction Bill [Lords]


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Ms Winterton: May I first assure the hon. Member for Peterborough that I will say that his clauses are legally defective only if they are legally defective, because I would not make it up. With regard to the new clause, I think that it is true to say that outcome-based targets are already central to the new performance framework through local area agreements, as was set out in the original local government White Paper of 2006 and subsequently in statutory guidance in 2008.
I am afraid that the new clause would lead to significant disruption to the existing set of local area agreement targets that local partners are now working together to deliver. It would require us to revise all 152 local area agreements, and I think that the impact on the delivery of priority outcomes in local areas would be significant, and certainly not something that local government would welcome, frankly.
We are already working to see how we might strengthen the framework further, including considering the Bichard recommendations on strengthening local area agreements in the national indicator set. So we think that it would be premature and potentially counter-productive to pre-empt that work by making changes such as the one proposed here. I therefore ask the hon. Gentleman to withdraw the motion.
Mr. Goodman: The Minister, as she conceded, did not have her battery of legal arguments to hand this time. All that she has told the Committee is that the new clause would cause disruption—as though no change brought in by Ministers over the past 10 years has ever done that. I do not feel that she was at her most persuasive, but I will not press the new clause. We might return to the matter if we get an opportunity on Report and perhaps find a way of couching it so that it would be even less disruptive to local councils. I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.

New Clause 10

Payments by parish and community councils
‘(1) The Local Government Act 1972 (c. 70) is amended as follows.
(2) In section 150, for subsection 5, there is substituted—
“(5) Every parish or community council must make safe and efficient arrangements for the making of their payments.”.
Brought up, and read the First time.
2.45 pm
Mr. Goodman: I beg to move, That the clause be read a Second time.
The Chairman: With this it will be convenient to discuss the following:
New clause 11—Payments by charter trustees
‘(1) The Charter Trustees Regulations 1996 (SI 1996/263) is amended as follows.
(2) In Regulation 15, for paragraph (2), there is substituted—
“(2) Charter trustees must make safe and efficient arrangements for the making of their payments.”’.
New clause 12—Payments by parish and community councils and charter trustees
‘(1) The Secretary of State may by regulations prescribe requirements relating to the making of payments by—
(a) a parish council, or
(b) charter trustees in England constituted under section 246 of the Local Government Act 1972 or the Charter Trustees Regulations 1996 (SI 1996/263).
(2) The Welsh Ministers may by regulations prescribe requirements relating to the making of payments by—
(a) a community council, or
(b) charter trustees in England constituted under section 246 of the Local Government Act 1972 or the Charter Trustees Regulations 1996 (SI 1996/263).
(3) Regulations under this section may make different provisions for different cases.
(4) Regulations under this section must be made by statutory instrument.
(5) A statutory instrument containing regulations under this section is subject to annulment in pursuance of a resolution of—
(a) either House of Parliament (in the case of regulations under subsection (4)), or
(b) the National Assembly for Wales (in the case of regulations under subsection (5)).
(6) This section comes into force—
(a) in relation to England, on such day as the Secretary of State may by order made by statutory instrument appoint;
Mr. Goodman: These clauses, as the Minister will well know because the information is in the brief, are strongly supported by the National Association of Local Councils. One might call them the NALC clauses if it were not even more appropriate to call them the 1894 clauses. I shall explain what I mean by that date.
The new clauses relate to payments made by parish and community councils and charter trustees. The point that NALC wishes to make by supporting them is that modernisation is needed in relation to payments. It describes the way in which some councils have to make payments as an anachronism that merits modernisation. It claims that the problem goes all the way back to the Local Government Act 1894, arguing that methods of making payment have not been adequately updated since then, despite the Local Government Act 1933 and the Local Government Act 1972. [Interruption.] There was an echo from a well-informed voice on the other side of the Committee—the right hon. Member for Greenwich and Woolwich may be able to remember that Act better, I am afraid, than I do.
The National Association of Local Councils makes the simple point that, in effect, it believes payment by cheque—which is what I presume was written into the 1894 Act—will be entirely superseded by payment cards and internet banking within eight years. However, under the present legislation, such online payments by the local councils and bodies referred to in the clauses would be unlawful.
Those are the 1894 clauses in a nutshell. There may be reasons why the Minister believes they could be better drafted. NALC, which represents councillors of all sorts of different points of view, including councillors from the Minister’s party, says that a serious problem is rumbling along and gathering pace. The way in which payments are made in the modern world is changing and NALC says it will be left exposed legally if it moves to a more up-to-date process than writing cheques. We look forward to hearing the Minister’s comments. She may be able to persuade us that the Government are preparing to act on the matter in a different way from that which the new clause proposes.
Dan Rogerson: The hon. Member for Wycombe has done a good service to the local government community by proposing the new clause. NALC hoped that some of the issues that were originally in the White Paper would be addressed in the Bill; the Bill is of a different nature, so it hoped such matters could be restored to it. Hon. Members have heard me, in previous debates, express my regard for parish councils and their work. Sometimes they are neglected. The proposal would give them greater flexibility as they continue to serve their communities. I hope the Minister will allow this change, which is rather long overdue.
Ms Winterton: I certainly see that there is a case for reform of the current rules on parish payments, and I agree with many of the points that Opposition Members made. I have had some discussions with my right hon. Friend the Member for Greenwich and Woolwich about the issue because it is something that he feels strongly about, too.
We had some initial discussions that made good progress. I assure the Committee that we will continue those discussions, so that we have a properly worked out plan for change. We will also look for an opportunity in the legislative programme to put that change on a firm foundation, which I hope will receive support from all parties.
We want further discussions about the issue. However, as I have said, I will certainly give a commitment that we will look for an appropriate legislative vehicle to make some of the changes. Having said that, I hope that the hon. Member for Wycombe will withdraw the new clause.
Mr. Goodman: It is obviously not for the official Opposition to pre-empt whatever NALC may think. However, having heard what the Minister has said, I imagine that it will find her remarks reassuring. Therefore, we will not seek to press the new clause to a vote and I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.

New Clause 16

Abolition of the Standards Board for England and the Adjudication Panel for England
‘(1) The Standards Board for England and the Adjudication Panel for England shall be abolished.
(2) Sections 57, 57D, 58, 59, 60, 61, 62, 63, 64, 65, 65A, 66A, 66B, 66C, 67(1), 75(1), (3), (4), (7), (9), (11), 78A, 78B and Schedule 4 of the Local Government Act 2000 (c. 22) shall cease to have effect.
(3) The Secretary of State may also by order make transitional or consequential provisions (including by amendment of the Local Government Act 2000) as are necessary due to the abolition of the Standards Board for England and the Adjudication Panel for England.
(4) Any order under subsection (3) must be made by statutory instrument.
(5) A statutory instrument containing an order under this section may not be made unless a draft of the instrument has been laid before, and approve by a resolution of, each House of Parliament.’.—(Mr. Goodman.)
Brought up, and read the First time.
Mr. Goodman: I beg to move, That the clause be read a Second time.
We now turn to the standards board. It is perhaps worth saying at the start—
The Chairman: Order. I just want to make an announcement: members of the public are not allowed to take documents from the table. Those documents are for the members of the Committee. Members of the public are not allowed to come in front of the bar. Thank you.
Mr. Goodman: As I was saying, we now turn to the Standards Board. We have reflected on the history of the board for the past 10 years or so, since it was introduced, and we have come to the conclusion that it is a classic illustration of the law of unintended consequences. No reasonable person could object to the idea that we should seek to ensure that local councillors conduct their work according to proper standards. However, in these matters there is always a danger that the law of unintended consequences applies and we think that has been proven in this case. Labour Members ought to consider that point very carefully if anyone anywhere proposes in any way to apply a similar principle and a similar framework to Members of Parliament.
Let me explain what I mean by the law of unintended consequences. If a process is established whereby a board is set up to receive complaints but it happens that under data protection rules, the names of the people making the complaints cannot be published, the Government are potentially setting up a considerable problem for local councillors. I suspect that there will not be a Member of Parliament in this Committee this afternoon who has not received a complaint from a councillor—probably a councillor from their own political party but possibly not—about a case in which that councillor has been reported to the Standards Board. The councillor does not necessarily know the name of the person who submitted the complaint. It is certainly the case with complaints that have been made to me that the councillor was not even aware of the charges that had been brought against them, which is surely contrary to natural justice. The process then flows on.
Rather than presenting the Committee with statistics about the small percentage of complaints that have been upheld, I seek to draw its attention to research that has been done by the university of Aberystwyth and others that points to the difficulty that parish, town and community councils have in attracting sufficient candidates. Obviously the existence of the Standards Board will not be the only reason why people do not come forward as candidates for those councils. However, given that such a large proportion of the complaints are about parish councillors and other councillors who operate at that level, the standards board regime, which is of the nature that I have just described, must have an effect on the number of people, and perhaps on the quality of people, who wish to come forward; the university of Aberystwyth certainly thinks that it does. I urge Ministers and other Labour Members to consider whether there would be a similar effect on Members of Parliament were a similar regime introduced at Westminster.
Mr. Raynsford: The hon. Gentleman has not addressed the crucial issue, which is the impact that the Standards Board may or may not have had on standards of conduct in local government. He will be aware that at the time it was established there was widespread concern about inappropriate behaviour. As an illustration—it is a good news story—I was judging the Local Government Chronicle awards for governance and standards in local government recently, and I saw a presentation from an authority that began with an image of a police van with a caption that read:
“That was our former leader being taken away.”
I tell the story because that local authority went through a traumatic process because of that particular incident but subsequently improved its governance and standards, as have many others. I believe that the existence of a Standards Board has been an important influence. I hope that the hon. Gentleman, rather than talking about peripheral consequences, focuses on the crucial issue of the impact of the Standards Board in helping to drive a culture of high standards in local government.
Mr. Goodman: I think that people not coming forward to stand for local government is not a peripheral consequence. I concede to the right hon. Gentleman that if such a framework—one of his favourite words—was implemented there would be some good consequences. The problem is that there would also be some bad ones. The question is whether the bad ones outweigh the good. The bad ones outweigh the good for people who are not coming forward and for councillors who have an accusation made against them without knowing the nature of the complaint. Is it necessary to drive up standards of behaviour among councillors by installing the framework in the first place? The right hon. Gentleman’s answer is “yes”, our answer is “no”. If local councils are given more power and responsibility, standards will rise. There are other ways, to which I shall refer, of ensuring that councillors observe proper conduct, and that will happen naturally.
 
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