Local Authorities (Overview and Scrutiny) Bill


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Barbara Follett: My hon. Friend’s question echoes that of the hon. Member for Falmouth and Camborne. Decisions about exactly how the scrutiny will operate will have to be taken. The idea is to build slowly and look at how we can make the proposal effective. We can expand a local area ad infinitum, but we need local authorities to be as effective as possible. At this point, I will conclude and commend the Bill to the Committee.
The Chairman: Before I call Mr. Raynsford to reply to the debate on clause 1 stand part, as the Minister made reference to an amendment, I would like to clarify, for the avoidance of doubt, the fact that no amendment has been selected. We are debating clause stand part.
Mr. Raynsford: I would like to focus on three issues. First, it is important to take the opportunity, on Report, to debate amendments that hon. Members wish to pursue, because of the short timetable that has precluded our doing so in Committee. I wholly sympathise with that view, and I wrote to all hon. Members before today’s sitting to say that I would happily discuss any amendments they wish to table on Report.
I want to echo the views of the hon. Member for Putney (Justine Greening) on Second Reading. She said that overview and scrutiny committees perform an important function, but that their powers need to be extended:
“There is a growing recognition that overview and scrutiny committees need to have powers over a wider range of external organisations as they become more involved in local public services, and that councils should provide sufficient resources and support to those committees so that they can undertake more scrutiny.
The Bill seeks to address a number of issues, and we welcome its intention to increase local scrutiny powers.”—[Official Report, 5 February 2010; Vol. 505, c. 524-25.]
I hope that we can proceed on that consensual basis, with the clear undertaking, which I am happy to give, that while I continue to have anything to do with the Bill I want to achieve a balance between enabling overview and scrutiny committees to discharge those functions more effectively, across a wider range of organisations involved in public service delivery, without imposing any undue burden. Three points of detail have been raised, which I think will come up later. The hon. Member for Northampton, South, in discussing a possible burden on business, was worried about duplication. There is provision in clause 7 for joint scrutiny, which is also pertinent to the concern of the hon. Member for Falmouth and Camborne about the Devon and Cornwall interest in cancer services at Derriford hospital. Again, joint scrutiny would probably be the appropriate response.
My hon. Friend the Member for Plymouth, Devonport and the hon. Member for Falmouth and Camborne both spent some time considering the words “greater” or “different” in the phrasing of the definition in clause 1. There is clearly a fine balance. If we are to avoid imposing an unreasonable burden on the organisations that are scrutinised, there should be a focus on what is local, and what has a greater impact locally than it does elsewhere. The failure of a jobcentre to ensure that there are effective services for a particular area, to use the example given by my hon. Friend the Member for Plymouth, Devonport, may have a greater impact on the citizens of that area than on those elsewhere. However, I should like to take further advice on the issue, and perhaps we may return to it on Report.
I agree very much with the concerns that the hon. Member for Falmouth and Camborne raised about the link with Total Place and the scope for scrutiny to give more sense of public engagement in something that I believe we all support as a concept, but which has seemed a little remote and technocratic up to now. Perhaps that is a good way to engage the public in an important issue.
The hon. Member for Beckenham raised two specific issues including, first, conflicts of interest between executive and back-bench members, which will come up in relation to clause 8, so I will not say anything more about it now. The second issue was district councils, which will come up under clause 6; we can perhaps pick it up at that point. I understand her concerns and hope that we will find effective answers. I am interested in how the regulations, which are crucial, will be introduced, although I am not in a position to give any guarantees on that. However, it is vital to get the right balance.
Mrs. Lait: I am grateful to the right hon. Gentleman for his conciliatory approach. However, I shall stick to my suggestion and encourage my colleagues to vote against clause stand part. This brief debate has revealed many flaws in the Bill, which need to be debated. Because of the speed of proceedings, which I accept the right hon. Gentleman did not necessarily desire, we have not been able to scrutinise the Bill thoroughly. To register our objection to the Bill’s flaws and to that speed, I encourage my colleagues to vote with me against clause stand part.
Question put, That the clause stand part of the Bill.
The Committee divided: Ayes 9, Noes 3.
Division No. 1]
AYES
Cohen, Harry
Corbyn, Jeremy
Drew, Mr. David
Follett, Barbara
Goldsworthy, Julia
Iddon, Dr. Brian
Raynsford, rh Mr. Nick
Seabeck, Alison
Turner, Mr. Neil
NOES
Binley, Mr. Brian
Curry, rh Mr. David
Lait, Mrs. Jacqui
Question accordingly agreed to.
Clause 1 ordered to stand part of the Bill.

Clause 2

Excluded matters
Question proposed, That the clause stand part of the Bill.
10.15 am
Mr. Raynsford: I shall be brief. Clause 2 sets out the circumstances in which the scrutiny powers in part 1 of the Bill do not apply. There are some necessary exclusions because there is existing legislative provision, for example in the Police and Justice Act 2006, the National Health Service 2006 and the Flood and Water Management Bill, which is currently before the House.
Jeremy Corbyn: My right hon. Friend mentioned NHS scrutiny, and I recognise that there are existing scrutiny powers. May I draw to his attention a problem that he must experience in London, just as I do? A consortium policy has developed in all the regions of London in which the local authorities decide on a major reorganisation covering, in most cases, five or six London boroughs. The London boroughs have scrutiny powers within each borough but not beyond it, which means that a significant part of health planning is outwith any acceptable or effective public scrutiny. I have experienced this in the London north central area, which covers the five local boroughs, but I am sure that my colleagues in other parts of London have the same problem. I realise that this Bill is limited, but can he offer me any hope on this matter?
Mr. Raynsford: When we reach clause 7, my hon. Friend will see the specific provisions relating to the scope for joint scrutiny. It is clearly appropriate for authorities to work together across a wider area where such circumstances apply. One of the important principles that has been maintained is coterminosity between the primary care trust and local authorities, which means that London has avoided some of the problems that have occurred elsewhere. However, I take my hon. Friend’s point. It is certainly an issue that should be considered in relation to joint scrutiny and the use of the powers in the Bill to cover a wider range of bodies than just those directly delivering specific services, because there is a wider impact.
As I have been reminded, health scrutiny is subject to separate legislation. That remains, but there is provision later in this Bill, so that where there is any doubt about the variable impact of different measures, the provisions in the Bill will be overriding. We are trying, in an interesting way, to extend scrutiny power, which has developed in a rather piecemeal way over recent years. This is helping to create a more coherent framework than the somewhat piecemeal approach that has followed legislation relating to specific services areas.
Mrs. Lait: This is a very interesting point. My first thought when the right hon. Gentleman began to outline the powers in the Bill was that there would be duplication of scrutiny. Would he be prepared to accept an amendment to the Bill to explore whether the overview and scrutiny committees would thereby repeal all the other scrutiny legislation that affects bodies such as health authorities, because they will just be swamped by people scrutinising them and not able to focus on patient provision?
Mr. Raynsford: I hope that I can reassure the hon. Lady by saying that there is absolutely no intention of creating additional layers of scrutiny that would have the effect she fears. The Bill will ensure that there is scope for scrutiny in those areas where it is not currently possible for overview and scrutiny committees to require information or attendance. The powers are important, as her hon. Friend the Member for Putney recognised on Second Reading.
There is certainly no wish to duplicate measures. The way in which the Bill is drafted builds on existing legislation, rather than substituting for it. It would be difficult to accept an amendment that gets rid of all other powers, because that would leave a series of new holes. I am more than happy to talk to the hon. Lady between now and Report to see if we need an amendment to clarify the objective that I am absolutely in favour of, which is seamless scope for scrutiny without imposing additional and unnecessary burdens. With those comments, I hope that members of the Committee will accept the clause.
Question put and agreed to.
Clause 2 accordingly ordered to stand part of the Bill.

Clause 3

Power to require information
Question proposed, That the clause stand part of the Bill.
Subsections (2) to (4) provide that the Secretary of State may make regulations about the exercise of the powers. The intention is to ensure that appropriate provision may be made for the handling of personal and confidential data of all types. I hope that the Minister can reassure the Committee that that will be the case.
Mr. Binley: Having had my rant about illiberal Liberals, not least because of the experiences that we suffered in Northampton under a Liberal council, I shall now proceed to the matter that I wished to raise in the first instance. However, because I was not wide awake, I failed to recognise at what stage we were at.
I served as scrutiny chairman for a sizeable time when the Conservative party was in opposition on Northamptonshire county council. We duly took control of that council, and my role changed. I am a supporter of scrutiny. It plays a vital part in local government and if we did not have scrutiny, many elected councillors would not have much to do. One of its purposes is to ensure that they are at least kept busy and off the streets.
I want to ask some questions specifically about the ability to summon people to provide information or, indeed, to attend scrutiny meetings in connection with the provision of public services by authorities or persons designated under regulation by the Secretary of State. I seek clarification of that particular measure. It seems to be a wide definition of those people connected with the provision of services. For example, many small businesses provide services for the provision of a wider service within the remit of local government. Will the clause include the many businesses that supply goods or services to local organisations, which themselves provide a wider and perhaps more specific service?
I recognise the value of local councils, but I also recognise their ability to be mischievous, and even more than mischievous on some occasions. I am worried about the power that will be given to councillors who wish to be mischievous, so I am looking for confirmation from the proposer of the Bill, who I know to be a very fair man, and I know he would be concerned if his Bill were misused in any way. He would certainly not want that.
I want to know about the legal situation. A small business that supplies a bigger organisation might be open to giving away information that might impact on it legally. What protection is there for people who might be summoned under the new legislation? We all know that scrutiny bodies do not have the right to summon people at the moment.
Alison Seabeck: Later in the Bill, protection for commercial confidentiality is set out. Committees can keep information confidential, so there is some security there.
Mr. Binley: I did see that there was some security and I am grateful for that intervention, because that properly explains the situation—“some security”. I am looking for a greater degree of security for innocent people who could be summoned for mischievous reasons at a local level, particularly, if I may say so, in the run-up to an election.
 
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