Localism Bill

Debate between Baroness Hanham and Baroness Hamwee

Monday 12th September 2011 Lords Chamber

[Baroness Hamwee]

My Lords, unless the Minister is about to move the government amendments—I was wondering whether she was going to do that—perhaps I should keep going.

[Baroness Hanham]

Perhaps I will move those amendments—that is, I will speak to them. I am constantly being reminded about that, and quite rightly too. They are Amendments 156, 157 and 162. In Committee, as the noble Lord, Lord Jenkin, has reiterated, there are a number of provisions in Schedule 2 to the Bill which noble Lords considered were either overly prescriptive or unnecessary. While I have not been able to act on all of their concerns, Amendments 156 and 157 remove provisions in relation to the actions a local authority must take following a referendum about a change in governance model. I hope that that will be another of the deregulatory ways that we deal with today.

In doing so, these amendments put beyond any doubt that local authorities must act in accordance with the wishes of local people as expressed at a referendum. In light of the Delegated Powers and Regulatory Reform Committee’s comments we have also tabled Amendment 162, which provides that regulations made under Section 9MG in relation to the conduct of governance referendums will be subject to the affirmative resolution procedure.

[Baroness Hamwee]

My Lords, I was intending to comment on only one of the noble Lord’s amendments. I agree very much with the thrust of his comments but I would simply take up with him whether at this point we should be dealing with Clause 98. I am concerned about applying the general points that he has made at this stage to a very contentious part of the Bill. As he said, Amendment 204 would delete the provision for statutory guidance about the duty to co-operate, which is, in full, a:

“Duty to co-operate in relation to planning of sustainable development”.

One would have had to be in a very faraway country to be unaware of how contentious “sustainable development” and its application have become—interestingly, led by the Daily Telegraph—over the last two or three weeks.

I find it difficult to make a judgment about the need or otherwise and the desirability or otherwise of statutory guidance without debating the substantive duty. I have always had a concern about legislation purporting to tell local authorities how to co-operate—I share that very much with my noble friend—but without discussing the whole substantive provision, I find it difficult to come to a view as to whether or not statutory guidance is desirable. It is very difficult to take this proposition along with the others and, as I say, I very much agree with the points that he has made where they arise in other parts of the Bill.

Localism Bill

Debate between Baroness Hanham and Baroness Hamwee

Thursday 7th July 2011 Lords Chamber

[Baroness Hanham]

My Lords, I have nearly finished. I apologise that I have been rather long. In fact, I have only another two lines to read.

The proposed amendment to Clause 85, Amendment 147E, would enable the regulations to include an appeal against compensation decisions under the community right-to-buy scheme. The amendment will strengthen the protection for property owners affected by the scheme. I beg to move.

[Baroness Hamwee]

My question on Clause 83 has turned into a short supplementary to the questions asked by the noble Lord, Lord Beecham. The Minister has told us that the order-making power in Clause 83(7) will be used to deal with matters of inheritance and partnership. Can she give the Committee an assurance—I am sure she can—that the order-making power will not be used to alter the principal definitions of relevant disposal, which are already contained in the Bill? As subsection (7) is set out, it could, on the face of it, actually change the 25-year term or the definition of disposal in Clause 83(2). Those are quite fundamental points.

[Lord Taylor of Goss Moor]

My Lords, I welcome much that the noble Baroness said about the Government’s willingness to look at the particular circumstances that may arise, for example, in the sale of going concerns and where the community asset is a small part of a larger concern. These issues have certainly raised great concerns, and I would like to add another.

I am not sure that I need to declare an interest but I shall do so just in case. I chair the eco-town strategic partnership in the St Austell area, a wide area of mining land which was mined formerly by English China Clays and more recently by Imerys. Over many years the policy of past and present mining companies in the china clay area has been to open large areas of land to community access, but always with the proviso that it might be worked in future. That is not a bad example of the concern that I want to put to the Minister about the deterrent effect that this policy—a policy which, broadly, I very much support—could have on landowners of that sort in opening up land to community use, whether for walking, riding, cycling and so on, if it were severely to limit their ability to sell and dispose of the land as part of the operation of their business. My fear is that, as things stand, it will simply freeze in aspic the current position on community access as people would be able to argue that access already exists and to list it. Equally, in terms of new community access, it is in the nature of mining land that the areas which may be accessed by the public will change over time depending on where the workings are and where land restoration has taken place following tipping. I can see this creating a substantial block to opening up land for future community use. The same may well apply to the farmer who very willingly allowed a corner of his land to be used by the cricket club. That usage now exists and a listing could be applied for. It could also create a substantial deterrent to any landowner opening up land for such use in future.

I am very much in favour of the idea that we should register assets of community value—which clearly applies to things like village shops, community halls and so on—but I am concerned about how to ensure that the creation of new community resources is not blocked by the fear that these elements will be applied.

I have one more question; I should already know the answer to it, and no doubt there is an answer. What is the position when the sale of land options—which are usually bought because planning permissions might be granted—in practice trumps these proposals to register community assets? I wonder whether the purchase of an option in any sense triggers this process.

Localism Bill

Debate between Baroness Hanham and Baroness Hamwee

Monday 20th June 2011 Lords Chamber

[Baroness Hanham]

My Lords, I am tempted to thank the noble Lord on the opposition Benches for answering the question for me. The noble Lord, Lord Beecham, has put his finger absolutely on the button: there are many areas where local government can help overseas. In fact, going back to my own days in local government, I remember well that we gave enormous help to the setting up of local government in a place called Mbale in Uganda. We had exchanges between officers on my council and officers from Mbale. We taught them how to start and set up a rates system and a community charge system. So there is that, as well as the help abroad for people in emergencies. There are all sorts of areas where this power is necessary.

My friend opposite has done well to point out that there are times when this would be valuable, but also that what we are talking about is a general power of competence and, whether or not it was available under the well-being power, it is reiterated under this power to ensure that there is no mistake about it.

Amendment 2 attempts to limit unnecessarily the extent of the general power of competence by restricting the exercise of power to the United Kingdom only. Amendment 3 also attempts to limit unnecessarily the extent of the general power, by requiring that the authority be able to demonstrate that activity has directly benefited the authority, its area or persons resident. If you are benefiting someone or a country abroad with your help, I hope you would also be affecting your residents, who would be glad that you were doing so.

The effect of the amendments is to attempt to turn this into a well-being power. We need to give local authorities confidence in the powers available to them. Rather than grant a power to do specified things, the new power is drafted on the basis that local authorities will be able to do anything that an individual with full capacity can do. That is the general power of competence, and that is the way that it is drafted. We believe that this will give local authorities freedom to act in the interest of their local communities and to generate efficiencies and savings, the benefits of which will be passed on to those communities. I would not be willing to accept the amendment and I hope that the noble Lord will be happy to withdraw it.

[Baroness Hamwee]

My Lords, before my noble friend responds, perhaps I may ask the Minister about Amendment 3. I entirely understand that a local authority should be able to do something that is only indirectly for the benefit of its residents and I understand that the Government might want to make sure that a local authority is not open to a claim that what it is doing is not, even indirectly, for the benefit of its residents. Is that the sort of technical protection that lies behind these words? Surely what a local authority does should be at least indirectly for the benefit of its residents, even if there is disagreement as to whether something is for the benefit of its residents. In the minds of the people who are taking the decisions, that must be the case, must it not? Perhaps this is a technical protection, which I had not understood until the Minister spoke.

[Baroness Hanham]

My Lords, of course we expect councils to act in the best interests of the communities that they serve, but we do not believe that it is for the Government to dictate what that means. Local authorities are, as we know, accountable through the ballot box and the other provisions of this Bill, not to mention our system of administrative law, which requires the statutory powers for any public authority to be exercised reasonably, in good faith and for proper purposes only. I think that that covers the questions that my noble friend Lady Hamwee has asked and sets into context the provisions in the Bill.

--- Later in debate ---

[Baroness Hanham]

My Lords, I thank my noble friend for his question. The general power is drafted on the basis that local authorities will be able to do anything that an individual might do, other than that which is specifically prohibited. In practice, this means that local authorities will be required to act in accordance with statutory limitations or restrictions. This is not surprising as we would not want local authorities to be completely outside the law.

Clause 2(2) sets out that limitations in legislation apply to the general power but draws a distinction between pre- and post-commencement limitations. Restrictions in post-commencement legislation will apply to the general power only where the drafting of the new legislation is clear that this is the policy intention. Amendment 6 would remove the requirement that local authorities exercising the new power act in accordance with any restrictions. Amendment 9 removes the definitions of post- and pre-commencement limitation from the clause.

Some restrictions on the activities of local authorities are obviously needed—for instance, a council should not have free rein to override the rights of others and these should be set out in the clearest terms—to ensure clarity for local authorities and avoid the uncertainty that has led to legal challenges to local authority powers in the past. That is what these subsections seek to achieve. We cannot require pre-existing limitations to expressly refer to the general power but, where these are found unnecessarily to restrict the general power, they can of course be removed following consultation. Amendment 7 would allow local authorities to decide their own governance arrangements and Amendment 8 will allow local authorities to use the general power to further contract out its functions.

We believe that it would be inappropriate that local authorities should be entirely free to change their governance arrangements. The Government set the overall governing structures of local authorities while still providing them with sufficient flexibility to decide on the most appropriate arrangement for their individual circumstances. This ensures democratic accountability and that transparent and workable arrangements are put in place. Arrangements for discharge of functions remain subject to existing legislation. Contracting out of functions will continue to be permitted in specific cases. The noble Lord asked specifically why local government should not be able just to make its own decisions about its governance. The answer is that the Government are right to be able to set the overall governing structures of each local authority.

[Baroness Hamwee]

I am puzzled by the answer about contracting out. Is not what is important that a local authority ensures that a particular service is delivered, rather than how it delivers it?

[Baroness Hanham]

My Lords, contracting out is clearly one of the ways in which a local authority can carry out its services but it will still be subject to the Deregulation and Contracting Out Act 1994. Those provisions are not being repealed, so they will continue to be part of the legislative control that will be maintained on the general power.