Local Democracy, Economic Development and Construction Bill [Lords]


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Mr. Raynsford: I shall be brief, but I shall disappoint the right hon. Member for Hitchin and Harpenden by saying that I hope that the Minister will not accept the new clause, which is misconceived and inappropriate.
I shall not talk about the individual circumstances in the right hon. Gentleman’s constituency, and I have no reason to dispute his concern about them, but I note the tone of hostility to housing development that one has grown accustomed to hearing from many Conservative quarters. I reflect only on the fact that we have a serious housing shortage and that if we are not serious about providing new housing to meet people’s needs, we will continue to face serious problems of homelessness and people living in squalid conditions, which is not acceptable in a modern society.
I object to the new clause because it is prescriptive and because it would prohibit the very co-operation between local authorities that the right hon. Gentleman says he wants to encourage. It is clearly inappropriate to prevent one local authority, with the agreement of another, from doing a housing development that crosses the border between the two. I represent a constituency in a fairly densely occupied urban area where we have housing developments that cross borders. Indeed, people are sometimes confused as to whether they are renting from Lewisham or Greenwich council. It would be absurd to say that there could not be an agreement whereby a development done by one of those councils impinged in some way on the other’s area.
I am also conscious of the efforts that have been made to help people to move to other areas through new towns and other provision in seaside locations to which elderly people can retire. Prohibiting such provision would be completely inappropriate. Of course, we want co-operation.
Mr. Lilley: The right hon. Gentleman makes a valid point. If he will support my new clause now, I will support further modification on Report saying, “Except by agreement of the councils concerned.”
Mr. Raynsford: If the right hon. Gentleman tables such an amendment on Report, I will consider it a lot more sympathetically, but I could not possibly support the new clause now because I regard it as inappropriate for the reasons I have explained.
Dan Rogerson: I have a great deal of sympathy for what the right hon. Member for Hitchin and Harpenden says about his constituents. They must be mystified that such a planning process can be under way for the area where they live, and that decisions are being taken over well-established borders. That is a real problem. I accept the point that the right hon. Member for Greenwich and Woolwich made, because, as we have discussed, local authorities should be able to come together and present solutions, so perhaps the measure is not quite right. We are certainly sympathetic to the views expressed by the right hon. Member for Hitchin and Harpenden, and I am sure that his constituents would expect better from the planning process.
I spent several years living in the borough of Bedford—not quite Luton—and my wife taught very close to Hitchin in a place called Stotfold, just over the border in Bedfordshire. I know the area quite well and I am sure that residents have more in common than the right hon. Gentleman implied, even in Hertfordshire. I am sure, too, that they get on far better than was suggested. Issues such as this do not help the process, so if we can resolve it in some way, all to the good.
3.30 pm
Ms Winterton: I want to start by saying that it is difficult to comment on the proposals that the right hon. Member for Hitchin and Harpenden referred to, because I understand that the respective local authorities are still at the stage of making proposals that have yet to be tested by inspectors. I support all the comments made by my right hon. Friend the Member for Greenwich and Woolwich, and I want to reassure the right hon. Gentleman that, as my right hon. Friend the Member for Wentworth said on Second Reading, it is not the loophole that he talks about.
Local authorities have no powers to require another local authority to accommodate housing numbers that have been allocated to them. As I have said, our policy is that local authorities should accommodate the level of housing identified for their area in the regional strategy. We support councils working together, even to the extent of preparing joint plans and initiatives, so that they decide between them how best to accommodate their respective housing needs across a sub-regional area. But they cannot simply require another local authority to accommodate the numbers of houses that have been allocated to them. Where local authorities disagree, there is a role for an independent inspector to make a decision on their proposals, based on the evidence available and policy set out in the regional strategy and by the Government. The proposed new clause is unnecessary and I urge the right hon. Gentleman to withdraw it.
Mr. Lilley: The point is not that I am saying one council can “require” another. Councils can make an application—they should not be allowed to—for planning and that will then have their endorsement when it goes to an inspector. What I would like is an assurance that if they did go ahead with any such proposal, and it was granted, the houses that they built in another district area would not count towards their target, which has been set for their area. The Minister did not make that clear.
Ms Winterton: As I have said, the point of the amendment would, as my right hon. Friend the Member for Greenwich and Woolwich said, prevent authorities joining together, but they cannot simply require another authority to build in their area. I suggest I look at the record relating to the question that the right hon. Gentleman asked and I will write to him to clarify the position.
Mr. Lilley: Can I not bring it back on Report now?
The Chairman: Voting on a new clause and an amendment in Committee does not prevent the same clause or amendment being re-tabled on Report. But when Mr. Speaker selects amendments on Report, the amount of time given to the clause or the amendment in Committee will be taken into account. For example, if the Committee had had quite a substantial debate on an amendment or a new clause, that would be taken into account by Mr. Speaker, who might judge that sufficient debate had been had on that particular section of the Bill. Voting on it now is not an absolute bar to raising the new clause on Report, but it may be advantageous not to vote now as it could allow more time for it on Report. It is entirely up to the hon. Gentleman. That is not particularly good guidance, but this is an awkward situation.
Mr. Lilley: It is extremely valuable guidance. After 25 years in the House, it is the first time that I have proposed a new clause in Committee, other than a Government new clause. I shall therefore follow your advice, Mr. Illsley, and not press the new clause to a vote. I shall table a similar clause on Report, but one that meets the objections that have been expressed today. I beg to ask leave to withdraw the clause.
Clause, by leave, withdrawn.

New Clause 20

Local freedoms
‘(1) The Local Government Act 1972 (c. 70) is amended as follows.
(2) In section 248 (freemen and inhabitants of existing boroughs), after subsection (1) there is inserted—
“(1A) Where the son of a freeman of a city or town may claim to be admitted as a freeman of that place, the daughter of a freeman may likewise claim to be so admitted.
(1B) The son or daughter of a freeman of a city or town shall be admitted as a freeman whether born before or after the admission, as a freeman, of his or her freeman parent and wherever he or she was born.
(1C) In subsections (1A) and (1B) “freeman” excludes a freeman of the City of London.”’.—(Dan Rogerson.)
Brought up, and read the First time.
Dan Rogerson: I beg to move, That the clause be read a Second time.
The new clause was tabled by the hon. Member for Newcastle upon Tyne, Central (Jim Cousins), who is not a member of the Committee. I was contacted this morning by Newcastle city council and told that councillors wished to raise a crucial question by way of this new clause. Current legal provisions allow for certain rights to be passed on to male children but not female children. The new clause also draws attention to the fact that it matters whether those children were born prior to someone becoming a freeman or after. The council says that those are crucial questions of equality. I am happy to raise them today, as this may be the only opportunity to do so in the foreseeable future.
Something in the new clause struck me as interesting. I am not familiar with such arrangements, not having spent a great deal of my life in cities, but these rights seem to be hereditary. I am used to things such as the honorary freedom of a borough, which is usually given to regiments or RAF squadrons and certain notable individuals who have made a big contribution to the community. We spoke about honorary positions earlier, but did not dwell on them. We passed over the matter.
I am keen to discover why those offices are hereditary, as society seems to have moved away from such things. Indeed, I hope that we will soon move away from that in the other place. I want to know what the law is, and why it might be a problem in places such as Newcastle. I note that the hon. Member in whose name the new clause is tabled is a Newcastle Member.
The Chairman: Before I call the Minister, I shall give a little background on why the new clause appears where it does.
I understand that Newcastle city council wanted this matter to be debated, and approached the Member of Parliament in whose name the new clause was tabled. However, it was too late to be considered as an amendment to clause 27, which would have been appropriate. In order to have the matter debated, the hon. Member for Newcastle upon Tyne, Central (Jim Cousins) tabled it as a new clause. The advice that I gave to the right hon. Member for Hitchin and Harpenden applies here as well. I ask the Committee to tread carefully in case the hon. Gentleman wishes to table the same amendment on Report, so that he can have the opportunity to speak on behalf of his constituency.
Ms Rosie Winterton: I very much hope that the hon. Member for North Cornwall welcomes clause 27, which was introduced in the other place by Lord Graham. In our view, it meets the aims of the new clause in a more sustainable way. I shall give a bit of background, by way of diversion. If the hon. Member for North Cornwall has any other questions, he can write to me.
Dan Rogerson: If we can return to this matter on Report, and if the Minister is keen to explore it in the future, we could correspond, rather than further delay the Committee.
Ms Winterton: As I said, I understand that the new clause’s aims were met by clause 27, so perhaps the hon. Gentleman—
The Chairman: Order. I apologise for interrupting the debate, but I want to make it clear that it will not be within my gift to decide what is selected on Report. I would not want to curtail or stifle debate here, if Members wish to debate the new clause.
Ms Winterton: Perhaps a discussion between the hon. Member for North Cornwall and my hon. Friend the Member for Newcastle upon Tyne, Central would be helpful, because I am advised that clause 27 meets many of the new clause’s aims and—crucially—in a more sustainable way. I know that he likes that word.
Dan Rogerson: On the basis of that consultation with other hon. Members, I beg to ask leave to withdraw the new clause.
Clause, by leave, withdrawn.

New Clause 21

Conditional payment provisions: insolvency of a third party payer
‘In the Housing Grants, Construction and Regeneration Act 1996, section 113 prohibition of conditional payment provisions, omit the following—
“(a) in subsection (1) ‘unless that third person, or any other person payment by whom is under the contract (directly or indirectly) a condition of payment by that third person, is insolvent’, and
(b) subsection (2), and
(c) subsection (3), and
(d) subsection (4), and
(e) subsection (5)”.’.—(Dan Rogerson.)
Brought up, and read the First time.
Dan Rogerson: I beg to move, That the clause be read a Second time.
Again, I shall not detain the Committee for too long. The hon. Member for Peterborough raised the issues covered by new clause 22, which would protect those at the end of the chain who carry out work on a construction project. It would try to prevent contractors higher up the money-supply chain from withholding payment because of an insolvency somewhere along that chain—in particular, at the top of it. As he has raised this issue already, I shall merely say that that problem remains to be resolved.
Sarah McCarthy-Fry: We return to the point raised by the hon. Member for Peterborough. The new clause would protect firms from the effects of insolvency elsewhere in the supply chain, which is, of course, a laudable aim. However, we must ensure that, when trying to protect some businesses, we do not disadvantage others. That would be the case in the construction industry as in any other. Of course, the construction industry is facing difficulties in the economic downturn, but so are other sectors.
The new clause suggests that we delete the insolvency exception to the prohibition of the “pay when paid” clauses. The construction industry is unique in that such clauses are prohibited by statute, and that exception is in place for a good reason. It continues to allow construction firms the same protection from the risks of an insolvency as businesses in other industries. It is important to maintain that level playing field. We need to be careful that we do not create a situation for construction insolvencies different from that for other businesses. Preventing construction firms from using “pay when paid” clauses in insolvency situations would do that.
We have consulted the industry extensively on whether a better solution could be found than the compromise one in the Housing Grants, Construction and Regeneration Act 1996—a solution that would deliver a fairer result for all—but no clear evidence was found that the removal of the current insolvency exception would achieve that. In those circumstances, the sensible option is to maintain the status quo. I therefore ask the hon. Gentleman to withdraw his new clause.
3.45 pm
 
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