Lord Greaves
Main Page: Lord Greaves (Liberal Democrat - Life peer)Department Debates - View all Lord Greaves's debates with the Department for Transport
(13 years, 5 months ago)
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Lord True
My Lords, it might be helpful if I speak to my Amendment 37, which is in this group and relates to governance arrangements. I apologise for its rather dense language but it imitates the drafting style of the Bill and I was trying to be as accommodating as possible to the Government. The real issue here is about the relations between lower tier and higher tier authorities, and how we achieve localism where things are done to local people by higher tier authorities.
I have a very live example: before leaving for the House this morning, I received an extremely angry e-mail from a person in my ward asking, “Why on earth are you wasting my money moving bus stops on our high street?”. The answer is that I am not doing that. I have had meetings with TfL asking it not to move bus stops. But it is all being done by a higher tier authority within a lower tier authority without any open consultation with the people affected.
There are many other examples of this kind of thing, and I am sure it does not only go on between London boroughs and regional government—it probably goes on between lower tier authorities and county councils and, in some cases, parish councils. Another example would be the one I cited at Second Reading where, after consultation with local people, we proposed revised parking standards in a neighbourhood. Without holding any public consultation, we received a letter from a higher authority saying that the arrangements were not satisfactory and did not accord with its standards, and we were asked to change them.
I do not wish to unpick the constitutional arrangements between lower and higher tier authorities in this country, but I do not think that the Bill is very localist when it comes to London boroughs. Indeed, it strikingly fails to be localist in that respect. What I am really asking for in the amendment, although I do not expect my noble friend to agree to it at first bite nor do I necessarily want to add to the huge bible of regulation that is emerging from this Bill, is recognition of the important principle here. If we believe in localism, at the very least it should be open to the lower tier authority to be able to say to the higher tier authority, “If you are considering planning changes which specifically affect an area”, such as whether to have high-rise buildings in the centre of Twickenham, which happens to be a live issue in my authority, “meetings should be held by the higher tier authority to gauge the opinion of local people”. It might even be that we could ask officers to come and hold public meetings, or indeed have the right to require that that should happen.
At the moment there is no formal ability for a lower tier authority to act on behalf of its local residents to do what we would regard as absolutely normal in terms of explaining to residents what is going on. It is absolutely inconceivable, if we were planning to change the alignment of a high street in a village or small town centre, that that would be done without prior and detailed public consultation with local people. The purpose of the amendment is to give a lower tier authority such as my own, a London borough, but also those outside London, the ability to propose or suggest arrangements to the higher tier authority to ensure that it conducts itself in a proper, localist fashion in respect of matters that affect local people. I urge my noble friend to reflect on the issue being raised here.
Lord Greaves
My Lords, I have one amendment in the group and I shall speak to the others. I start by saying that we support the amendments put forward by the noble Lord, Lord Beecham. They form part of a recurring theme in our discussions on this Bill, which is that while the Government’s proposal is that localism should be more prevalent and that there should be more localism in authorities and among local people, it is being done within a highly prescribed framework and is subject to a large number of orders and regulations from the centre. In other words, it is top-down localism, not genuine localism. There is absolutely no reason at all why this amount of central control and prescription of local authorities should take place. It was not the case when I first became a councillor 40 years ago. We had nothing like this amount of central control when the new authorities were set up in 1973 and elected in 1974. It has crept in over the years from both Conservative and Labour Governments, and we are now getting more of it from the coalition.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Hanham)
My Lords, I thank noble Lords who have taken part in this quite long debate on the amendment, and I congratulate the noble Lord, Lord Beecham, on introducing it succinctly.
The Bill seeks to remove the current prescriptive and overly burdensome rules and procedures for local authority governance arrangements. I am not sure that I am quite on line with my noble friends behind me because, for instance, the Bill allows councils greater freedom to determine their governance arrangements. We have been asked to allow a committee system ever since the previous legislation, when it was arbitrarily removed by the previous Government. We accept that local authorities, as practitioners, are experts in the field of governance, and that most proposals for additional governance models will come from them.
Amendment 34, on the Secretary of State’s power in Schedule 2 to make regulations on this issue, fails to understand that ideas for new governance models may also come from other sources—from government, local government representatives or other bodies. There seems to be some sort of idea that everything has been forced on local authorities. We are not forcing them to do anything; they do not have to adopt the arrangements set out in these regulations for a committee system and can carry on as they are. These regulations—with the prospect of other, newer forms of governance; I cannot think what they are at the moment but there might be some—give them the opportunity to carry them out if they wish.
The restated conditions in Amendment 35 would do little if anything more than recast the existing provisions in the language of today, rather than the language of a decade ago. They are arguably less demanding, since the explicit requirement that the new arrangements must be an improvement on what is already there has been removed. However, it is hard to imagine prescribing a new arrangement unless it achieved something more than what was currently on offer. In short, I do not believe that these amendments would make a substantive difference in how the powers in this section might be operated.
Amendment 36 significantly weakens the conditions, apparently allowing new arrangements that did not provide for decision-taking in an efficient, transparent and accountable way. I am sure that no one would wish to see this. Certainly we do not.
Amendment 37, as the noble Lord, Lord True, said, is all about allowing a district council, for example, to make proposals for governance arrangements that would improve the accountability of the county council to the people of that district. I think that he also mentioned London boroughs as part of that. Effective collaboration between tiers, shared services and shared chief executives, which are coming about more and more, might all be effective ways of improving local governance. I am not certain that we need more central regulation to achieve this. I noted exactly what my noble friend Lord Howard said, that in his area that did not seem to operate. On the other hand, it is a mechanism that I would strongly recommend.
Amendment 37A would disempower local authority leaders by allowing authorities to resolve that the full council, rather than the leader, should appoint the members of the executive cabinet. I remember dealing with the previous local government legislation, where this was accepted as rather a good move, so I am not certain why we now want to get rid of it again.
Lord Greaves
I, too, remember the previous legislation, which brought in this new system. I do not know whether it was accepted as a good move, or by whom, but it was certainly not accepted as a good move by the Liberal Democrat Benches in this House, because we challenged it at the time. The point is that if it is such a good move, surely most authorities will continue to do it that way. But if we are talking about localism, why should they not have the choice?
Baroness Hanham
My Lords, we believe that the leader and cabinet model is a good one. We also believe that the leader should be able to select those whom he wishes to have with him. It is a very close relationship, and it is very important that it works well. We think it right for a leader to be able to appoint his own executive team.
Amendment 38 would prevent the maximum size of an executive being set at a figure lower than 10 members. I accept that current experience with 10 members is about right, but I would not accept that future circumstances will be such that, while it might be right to increase the maximum limit of the size of an executive, it might not be right to have a lower limit. I think that that is what the noble Lord’s amendment suggests. Experience demonstrates that 10 is about the right number, and that a lower number may be too little and a higher number too much. Most of these cabinet systems are working quite well as they are. One might also point out that the more cabinet members you have, the more you have to pay. I hope that that resolves some of the questions.
Lord Greaves
“(1) A local authority that is operating executive arrangements, an executive of such an authority or a committee or specified member of such an executive may arrange for the discharge of any functions which, under executive arrangements, are the responsibility of the executive by an area committee of that authority.
(2) Arrangements for the discharge of executive functions to an area committee made under this section are without prejudice to any other allocation of functions to such an area committee that the local authority may make.”
Lord Greaves
My Lords, Amendment 39 is the most important amendment in this group about area committees. It seeks to remove most of the central prescription about area committees and how they should work. I will also speak to Amendments 41 and 42 in my name, and comment on the two Labour amendments in the group when I respond.
A theme is developing in the discussions this afternoon. The Bill merely restates the existing provision in the new Section 9EA of the Local Government Act 2000:
“The Secretary of State may by regulations make provision for or in connection with enabling an executive of a local authority, or a committee or specified member of such an executive, to arrange for the discharge of any functions which, under executive arrangements, are the responsibility of the executive by an area committee of that authority.
(2) Regulations under this section may impose limitations or restrictions on the arrangements which may be made by virtue of the regulations (including limitations or restrictions on the functions which may be the subject of such arrangements)”.
Why is this necessary? Why are local authorities thought to be so stupid that, even though they decide to set up area committees, of which I am a huge fan, they cannot be trusted to do it in a sensible way? Why can they not be trusted to take advantage of best practice in other places? Why can they not be trusted to listen to what people advise, wherever that advice comes from, and do what is most sensible in the circumstances? Why do they have to do it in the way laid down in detail in Whitehall?
I agreed entirely with the Minister when she said in her response to the first group that ideas come from sources other than local authorities. That is absolutely true. Ideas come from all over the place. Good ideas even come from national government and Whitehall. Local authorities can be expected to take account of those, to listen and do what is sensible. Back in 1974 when the new authorities were set up, it was generally thought that the way councils had operated before then was not very efficient and there needed to be changes. The Government set up a committee and the Baines report was produced as a result. It was almost universally accepted by local government throughout the country. It set up policy and resources committees, which were the big new idea of the time, with personnel and finance sub-committees and so on. The idea was that the operation of local authorities would be brought together in a more coherent, co-operative and corporate way, rather than each department of the authority operating in what people would nowadays call its own “silo”. That still happens in some authorities, but it was an attempt to bring it together, just as the idea of executives was an attempt to bring it together.
Baroness Hanham
My Lords, on this debate, I hear what noble Lords say. I shall reflect carefully on what has been said and I shall ask noble Lords to withdraw their amendments for the time being.
Lord Greaves
My Lords, I commend the reply of the Minister on this group of amendments. I advise her to use that exact wording for every group of amendments that we put forward throughout the rest of the Bill; however, I do not say that very optimistically. There are clearly some discussions to be had.
I would just like to respond to the amendments spoken to by the noble Lord, Lord Beecham, and particularly to Amendment 43, which I disagree with fundamentally. In a sense, the amendment reflects the diversity and variety of local government and the representation of local government in your Lordships' House and in this Committee. It is a big-city view, a view of big authorities: in a big city, an area committee of 40 per cent would, in almost any conceivable situation, be ridiculous. However, that is not necessarily the case in smaller authorities.
Perhaps I can tell the Committee the position in my own authority in Pendle. We have five area committees and they range from 32 per cent—these figures are based on mid-year population estimates for 2008—down to 10.7 per cent. The 32 per cent is for the town of Nelson, which has an estimated population of 28,745, which, by big-city standards, is not excessive—it might be just two wards or one and a half wards in some big cities. It would be ridiculous to split Nelson because it is a community with a town centre. You walk from the middle of the town centre and you get to the edge of the town and Nelson stops and you are in the countryside and into smaller communities. I believe that the figure of 40 per cent is right. Quite clearly, there needs to be sensible reflection on the basis of local knowledge in a particular area.
Lord Beecham
Does the noble Lord agree that the best course would be to dispense with the clause altogether and leave the matter entirely to the discretion of the local authority, which is my first preference?
Lord Greaves
The noble Lord knows that I agree with him on that. It should be left to the good sense of local authorities. It is difficult to see a situation in which you would want a system of area committees where one area committee was more than half, but there might be such circumstances. There might be a district authority with a large town that is surrounded by a constellation of smaller communities. That would be the sensible way to do it. I believe that if it is left to sensible local discretion, the areas will be based on the real communities that exist there in the best possible way they can be defined on a sensible working basis.
I thank the Minister for her interesting reply on Amendment 39 and I look forward to discussions on it. I beg leave to withdraw the amendment.
Lord Greaves
My Lords, I speak to Amendments 49 and 49C, and I support the comments of my noble friend Lord Tope about district councils. Whether the prescription on scrutiny should exist is a matter for discussion. If it should, then it should apply to district councils as well as to everyone else.
There is a view across parts of the legislation that was brought in 10 years ago that district councils’ overview and scrutiny functions are in some way less important than those of bigger councils. However, for some of the reasons that the noble Lord, Lord True, talked about earlier, because district councils are smaller councils and there are more councillors per elector—often a lot more—scrutiny of local services generally, as well as of their own services, is something that they can do very well indeed.
That leads me to Amendment 49, which removes more classic words. The new subsection states that an “excluded matter”, which I shall describe in a minute,
“means any matter which is … a matter of any description specified in an order made by the Secretary of State for the purposes of this section”.
What major national imperative is there that the Secretary of State should make an order excluding matters from discussion? The matters to be discussed are defined as “local government” matters. This exclusion allows the Secretary of State to produce a list of things that the Secretary of State says are not local government matters and, therefore, under this new section, cannot be referred to an overview and scrutiny committee by a member of the council. This is silly.
I do not know what other provision we are using to do it, or if we are just doing it, but my council has decided on and is getting on with scrutiny of part of the local health service within east Lancashire. It provides a vital service that is not provided by the local authority, although it has some limited influence and joint schemes. However, the local authority is performing some scrutiny. Clearly, it will have to do it with the co-operation of those parts of the health service that are being scrutinised, but that can take place. It may or may not be a local government matter. I do not know whether the Secretary of State wants to exclude it under this provision, but it is the sort of situation in which you should let the local authority get on and do what it wants to do in the interests of the people in the area.
The purpose of the second amendment, Amendment 49C, is probing. It refers to new Section 9FF(1)(b) on page 202 of this compendium Bill and to recommendations relating,
“to a local improvement target which … relates to a relevant partner authority, and … is specified in a local area agreement of the authority”.
I have never really understood local area agreements or got too involved in them, but my impression was that this Government were scaling back on the importance of such agreements and perhaps were looking to abolish them. Perhaps the Minister can tell me where we stand on that.
Baroness Hanham
My Lords, I shall start by saying that I recognise a lot of what I have heard from noble Lords regarding how councils operate. The amendment of the noble Lord, Lord Shipley, would make it compulsory for scrutiny committees to be chaired by the leader of the opposition party on a council. This amendment is unnecessary. I know of many councils that do precisely that, whereby a leader or senior member of the opposition party chairs review and scrutiny meetings. That is absolutely proper, but such a provision does not need to be couched in either guidance or legislation. As the noble Lord, Lord Beecham, pointed out, there may be some areas where there are no opposition members, but the amendment would make such a provision mandatory. There are some areas where all members are Conservatives and the issue is the same. I hope that from the tenor of the debate noble Lords will agree that such a provision is neither appropriate nor necessary, and that we should not return to it. The annual scrutiny survey, which, I must say, I did not know existed, shows an upward trend, with 42 per cent of authorities allocating scrutiny chairs to members outside the majority group. This idea is clearly taking off well enough, without any interference from Parliament.
Amendments 46 and 47 would change the arrangements on designated scrutiny officers, particularly to make it clear that a designated officer could lead other officers in the discharge of scrutiny functions, as well as requiring district councils in two-tier areas to designate a scrutiny officer. Again, the amendments proposed are not necessary. Of course, we envisage that scrutiny will involve a number of officers to support a scrutiny committee. That already happens, it is part and parcel of the way scrutiny committees are run, and indeed in some councils they are completely separate from the rest of the administration so that they are completely independent. It is unimaginable that one scrutiny officer could not appoint somebody to help him. It is certainly not necessary to make that mandatory because I am quite certain that in most local authorities that is precisely what happens. There is nothing to prevent a district council in a two-tier area designating a scrutiny officer but statute does not require this. Noble Lords have made the point that district councils perhaps do not have quite such onerous responsibilities as county councils and therefore it is not mandatory for them to have a designated officer, although of course if they choose to have one they can. That is perfectly in order.
Amendments 48 and 49 remove the requirement on members to have regard to the guidance and the regulation-making powers of the Secretary of State in relation to referral of matters to a scrutiny committee. These powers enable the Secretary of State to ensure that certain important safeguards are in place. Regulations made under the power that noble Lords are seeking to remove protect against vexatious or discriminatory matters from being placed on the scrutiny committee meeting agenda. They also exclude matters for which there are already statutory processes and rights of appeal, such as planning and licence decisions or matters relating to an individual. It is not unreasonable that those matters should be placed before scrutiny committees in the course of their business.
We believe that the existing framework is working pretty well without removing the requirement for scrutiny committees to make reports and recommendations relating to partner authorities and local area agreements. Having said that, I have some sympathy with Amendment 49C, which is seeking to remove the link between local improvement targets and local area agreements—that might indeed become otiose. We are absolutely clear that where authorities operate executive governance arrangements, scrutiny arrangements must be in place. We recognise that scrutiny plays an important role in holding the executive to account and contributing to policy development in authorities. I certainly support what the noble Lord, Lord Beecham, says—that overview and scrutiny committees, like planning committees, should not be whipped. They are clearly committees where scrutiny and challenge should take place and that should not be done against a background of being told what to do.
Amendment 69 would make it mandatory for councils with committee systems to have an overview and scrutiny committee. That is not necessary. The committee system in itself should have a scrutiny role and always did in the past—that was one of the benefits of the committee system. Therefore, that amendment is not necessary.
With the various explanations and assurances I have given, I hope that noble Lords will not press their amendments.
Baroness Hanham
There is quite a lot of common sense in what the noble Lord has said. I am not going to make any commitments but I would like to talk to the noble Lord before the next stage because I accept that things have changed a lot since the previous committee system was in place, not least partnership working and working across public bodies. It may be that as part of the committee system we at least ought to give tacit acknowledgement to the fact that there may be joint issues they need to discuss. I am not sure whether that needs to be a full scrutiny role or whether it should simply be that the local health authority, or whatever it is, turns up if invited by the committee. Perhaps the noble Lord and I could discuss that before the next stage.
Lord Greaves
My Lords, the Minister said that there might need to be some modification in relation to local improvement targets and local area agreements. Perhaps she could write and tell me exactly where we are with these now, what their status is and what the Government’s intentions are.
Baroness Hanham
I will happily do that and I will lay a copy of the answer in the Library.
Lord True
My Lords, I do not want to prolong the philosophical discussion about which system is better but given the principles behind a Localism Bill, clearly the matter should be decided locally and as soon as possible. I am not speaking as a representative of London Councils, but the matter came up at a recent meeting of the leaders’ executive of London Councils and the leaders of all the parties unanimously agreed that they would like the Government to think again about this proposal. We hope that the amendment spoken to by my noble friends Lord Tope and Lord Palmer will gain favour in the Government’s eyes. I submit that what goes for London goes for authorities outside London as well.
Lord Greaves
My Lords, I support this sensible and well drafted amendment; my noble friend understands that joke. I want to make two points. First, if councils are to be able to choose the system of governance that they want, let it not be too bound by lots more regulation. Councils used to exist before 2000 and operated committee systems. They did not have lots of statutory guidance, regulations and orders telling them how to run them. They do not need that. Councils can perfectly well set up committees and run sensible committee systems without lots of new regulations.
Secondly, let us not imagine that there was a wonderful era of local representative democracy before 2000, when local authorities everywhere used the committee system, and that it suddenly all went bad when we had to have the executive/scrutiny split, the appointment of leaders, and so on. Life is not and was not like that. In the past, there were councils that operated efficiently, openly and transparently, involved residents and carried out their duties sensibly and efficiently; and there were councils that were pretty hopeless. That has remained the case, even though their systems have changed. Surprise, surprise—those councils that were not so good before 2000 have been not so good since. Of course, councillors can improve and some go the other way but, by and large, it is simply not true that everything was wonderful before 2000 and that everything has been awful since. Different systems may well suit different types and sizes of councils, and the dispositions of different councillors.
I hope that my council will adopt a new committee system and abandon the executive/scrutiny split, although I entirely agree with the noble Lord, Lord McKenzie, that when you are in control of the council, the executive system allows you to do all sorts of things fairly quickly, and you can just get on and do it. Looking back on the five or six years during which we controlled my council and I was involved on the executive, I have to say that I am not terribly proud of the way in which we made some of the decisions out of the public gaze. Of course, they were all rubber-stamped in a proper and legal manner but, in practice, the decisions were made by a small group of people consisting of top councillors and officials who decided what we wanted to do. It may be that that was always the case and that it will happen under a committee system, but the importance of a committee system, as a noble Lord said earlier, is that the scrutiny process can take place at the time that the decision is being made in the committee. This is one of the real reasons for committees and for not having single-party executives making all the decisions.
I am sorry that the noble Baroness, Lady Farrington, is not in her place. She and I were together on Lancashire County Council and we have discussed this in the past. I extolled the virtues of the committee system when it all changed to what I think is the appalling way in which that council now makes decisions, a large number of which are made by a single member of the executive—a cabinet member, portfolio member, or whatever they call themselves—sometimes meeting as a single-person committee, with all the officers and just one person in the middle making all the decisions. That is not the right way to do local government. The noble Baroness, Lady Farrington, would say, “Yes, but even under the committee system, when the Labour Party controlled the county council, the decision was made in the Labour group and very rarely changed”. I would say, “Yes, but occasionally it was changed, particularly when I stood up and pointed a few things out. You made a few changes”. The point is that the decisions were subject to debate and scrutiny in public at the time and at the moment they were being made. That does not happen under a lot of executive systems. The decisions we made on my council, when we were able to do so through the executive route, might have been better if we had had more people there challenging what we were saying and the workability of what we were doing, and persuading us to make some improvements. That is the advantage of the committee system.
However, I hope that people will not continue talking about “going back” to the committee system. We do not want to go back to the old committee system. We who hope that our councils will now move to a committee system want them to learn from the experience of the last 10 years and adopt some of the good things that have happened—scrutiny done well is very good. I know that many councils do not do scrutiny very well at all and that scrutiny committees are simply places to make back-bench councillors think that they actually have a job on the council, but scrutiny can be done very well indeed.
I am sorry that my noble friend Lady Hamwee is not here because she is an expert in scrutiny and would wax more lyrical about it than me. However, I hope that councils which are going to move forward to a new committee system—not an old dinosaur system—will keep the best parts of scrutiny because, done well, it has a role to play. What it does not do is the day-to-day, week-by-week scrutiny of decisions as they are taking place and that is why we want to go back to committees.
I say these things because this is the first time we have discussed the very welcome proposals by the Government to allow councils to make the choice, which some of us have argued for whenever it has come up in this House in the last 10 years. It is very welcome, the Government are to be congratulated, and I hope as many councils as feel it is sensible will go ahead with it.
Baroness Hanham
My Lords, that was a short debate and I can probably give a reasonably short answer. We have some sympathy with the points that have been raised, particularly about the time that has to elapse before the changes can be implemented. I will not accept the amendment today but I am happy to take it away and consider whether those provisions are as good as they can be.
Lord True
My Lords, my noble friend might be disappointed that I rise at this point, but I gave her notice that I might do so at some point.
The noble Lord, Lord Beecham, made a very interesting and thoughtful intervention which I hope everyone in the House will reflect on. It is absolutely beyond doubt that the coalition agreement, and indeed my own party’s manifesto, made very clear that it wishes the mayoral principle to be extended further, specifically in the cities listed in the noble Lord’s amendment, and he has acknowledged that. From my point of view, therefore, it is absolutely clear that we should support and accept that, as I believe it has, in the traditional sense, a mandate. However, our own party’s manifesto, and the coalition agreement as I read it, did not go beyond that into extending the general principle.
There is at least scope for some discussion on this subject. I have an open mind on it, and I am open to be persuaded by my noble friend and others in the House. In the context of a localism Bill, it is a very strange concept that a Secretary of State of whatever political hue can in effect lift the telephone and say, “You’re going to have a mayoral arrangement in your authority”, even if there has been no clear localist wish for one. If people want a mayor and there is scope for one, and if a campaign for a mayor gains ground, there may be circumstances in which the Secretary of State might be tempted to wish that he had such a power, but I hope that over the next few weeks, while assuring my noble friend of my absolute support for the principles set out in the coalition agreement and in the manifesto, she might be prepared to reflect on whether the best way to advance even what you think is a good idea is to take the power to impose it potentially on the unwilling.
In some way or another we might be able to explore, in the traditions of this House, some way in which the absolute exercise of such potential power could be limited. My noble friend will be relieved to hear that I cannot support the amendments in the name of the noble Lord, Lord Beecham, but I hope that we can have some constructive engagement on this point.
Lord Greaves
My Lords, I have one or two questions. First, what evidence do the Government or anyone else have that in these 11 cities, including Newcastle, Manchester, Leeds, Liverpool, Wakefield—the metropolitan district of Wakefield is technically a city, but is in fact a collection of towns, as I know well because I grew up there—Sheffield, Birmingham, Bristol, Coventry, Nottingham and Bradford—there is an overwhelming demand, or indeed any significant demand, in these places for an elected mayor? In the absence of such a demand, forcing a referendum on people that is likely to be rejected in the majority of these places—perhaps all but two or three places are likely to reject it, or perhaps they will all reject it—is an astonishing waste of money.
Secondly, can the Minister tell us how much it will cost to hold a referendum in each of these 11 places? Although I may have missed something, the only place I can recall where there was a significant campaign for an elected mayor was Liverpool. It was led by some high-profile people, some of whom were connected with broadcasting organisations. However, the campaign failed to get through the present system to requisition a referendum. It is clear that in each of these places it would be difficult to raise the 5 per cent of genuine signatures for a referendum. In those circumstances, it is extraordinary that in a Bill called “localism”, the Government are imposing from the centre their own version of how local democracy should work.
People might argue that an elected mayor is a more localist system than an elected council, council leader and so on. But it is difficult to see how they can argue that it is more localist. They might argue that it is more efficient, more effective or more exciting, or that more people will turn out to vote, although, as the noble Lord, Lord Beecham, said, that is not likely. I wonder whether the Minister can tell us the criteria that the Government have used to make them think that this provision of top-down centralised instructions to people on the ground on how to run their cities fits in with a Bill called “localism”.
Thirdly, what evidence have the Government got that, in those places which have already got elected mayors, taking them as a whole, the system of local government is better than it was previously? There are places where the system is working very well. I would point, as I would anyway, to Watford, which has a Liberal Democrat mayor and a Liberal Democrat council, which helps a lot because they work closely together. But I suspect that, without an elected mayor but with a Liberal Democrat majority, the Liberal Democrat elected councillors and, thus, mayor would work together and would be a good council anyway.
I am not arguing that Liberal Democrat councils are always better than other councils. We all know perfectly well that, while we all pretend that our councils are better in different ways than everyone else’s, it is not always the case. As I keep saying, there are good councils and bad councils, and most councils are somewhere in-between, which goes right across the parties. They may have different approaches to things but in terms of whether they are good, bad, efficient, inefficient or whatever, it goes across the spectrum.
There are councils run well by mayors. The noble Lord, Lord Beecham, mentioned some in London. There are also councils which may have elected mayors but do not run so well. Local politics and local administration in Stoke-on-Trent has been a basket case for some considerable time. Having an elected mayor made absolutely no difference. You could argue that it made it worse. Another example is Doncaster, another council which has not had a good reputation for being efficient, open, honest and all sorts of things over the years. It now has an elected English Democrat mayor. Does that make the administration in Doncaster any better? The Government do not think so because they keep putting people in Doncaster to sort it out and to run things.
There are places where the local political culture is conducive to being run efficiently, whichever party is running it. There are places where the local political culture is conducive to it being a shambles and very difficult for whoever is running it to sort out. There is no evidence whatever that those places with elected mayors are on average run any better or any worse than those without elected mayors. Surely, if the Government are going to impose things like this from the centre, it should be on the basis of the evidence. If it could be proved to me that imposing mayors on these 11 places would suddenly make them better run than they are, I would consider it, but I have to say that the big cities in England, taken as a whole, have been one of the success stories of local government and administration over the past 10 to 20 years. Not all of them by any means—I do not want to mention particular cities—but some have been outstandingly successful. That is under the present system, so why will having a mayor make a difference?
Unless we can be given some very clear evidence, this just seems to be policy developed on the whim of a few people at the top of and within the present Government. That is not a reason for supporting it. I accept that if something is in the coalition agreement, as a Liberal Democrat I start from the presumption that I will support it. Some things in the agreement are so important to the coalition, so crucial and critical, that even though I think they are completely bonkers, I will go through the right lobby in support of the Government. There have been certain constitutional issues recently where that has been the case. However, I do not believe that whether you have elected mayors in 11 places, or you have expensive referendums for elected mayors to decide whether to have them in London, are matters that are fundamental to the foundations of this coalition Government. So if the House of Lords booted it out or if it goes to a Division at any stage, I have to say to my own party and anyone else who wants to listen, I will find it very difficult indeed not to support the proposition.
Lord Beecham
My Lords, the noble Baroness has a rather more pleasant duty to attend to in a few minutes when she goes to, presumably, the town hall in Kensington and Chelsea. We wish her well, and an enjoyable evening. We look forward to resuming the debate next week with the new freeman of the Royal Borough of Kensington and Chelsea.
Lord Greaves
My Lords, I will be very quick; we would not want the Minister to be late. She is quite right: I am totally off message on this issue as far as the coalition agreement is concerned. I am not off message as far as the coalition is concerned. The Government should learn. They have had a huge car crash, as people say nowadays, with the AV referendum; I voted loyally for that on every occasion and now I wish I had not. This will be another, in the modern phrase, car crash.
Whatever has been in coalition agreements and manifestos, there are times when, politically, Governments have to consider what is likely to happen. In most if not all these places, it seems likely that the Liberal Democrats will be campaigning vigorously against having an elected mayor—alongside the Labour party in many cases, and, I suspect, the Conservative party in so far as it still exists in some of these places; it certainly exists in some of them.
I am grateful for the information on the cost. I did not quite catch who was going to bear it. Was it central government? Yes. Well, a waste of public money is a waste of public money, whoever pays for it. I wonder whether the Government can direct me to some serious evidential basis for the view that having elected mayors provides better local government than would otherwise have been the case. I have not seen that evidence. There is lots of political and other argument about it, but I have seen no serious evidential basis for that proposition. If the Government have it, I would be grateful if they would make it available.
Lord Tope
My Lords, the Minister has warned me not to allow my noble friend Lord Greaves to let me stray off message. I have actually said nothing at all on the subject yet, and that might well be a message in itself. I am rather too mindful of the Minister’s immediate appointment elsewhere to take more time with this. I am struggling hard to resist the debate that has been held about the benefits of a London Mayor. Having been a member of the London Assembly for the entire reign of the first London Mayor, I can say that any strategic government for London has to be better than no strategic government for London. What none of us can know—so I will not bother to argue it—is whether another system of strategic government would have been as good, worse or better. At least, there could have been an alternative to an elected mayor, which has not been considered.
Lord Greaves
Perhaps my noble friend would pay attention to the point that having an elected mayor for Liverpool does not provide strategic government for Merseyside, and that having an elected mayor for Manchester does not provide strategic government for Greater Manchester, and that the same applies to Leeds and Bradford.
Lord Tope
He refused and it was one of his wisest decisions, because the person who requested him to do so did not distinguish himself in the interests of the Liberal party within a few years of that. I refer to our then party leader. The noble Lord, Lord Beecham, is probably too young to remember such an occasion in the 1970s.
I must get back to the point. The amendment relates to the threshold, and I am grateful that, in the end, the Minister paid some attention to it, because no one else has done so throughout the entire debate. Therefore, I have very little to reply to, except to say that we shall be returning to the issue of thresholds for referendums and so on at a later stage. In the mean time, I beg leave to withdraw the amendment.
Lord Greaves
Lord Greaves
My Lords, we have rightly just had a long debate about a major issue. In moving Amendment 88, I wish to speak also to Amendments 89, 90, 91, 92, 94, 95 and 96, with which it is grouped. Somebody who looked at them said to me that they were typical fiddly House of Lords amendments, by which I think they meant the kind of amendments that try to probe what is meant by the words set out in the Bill.
We are now on Chapter 4 of Part 1, which is about predetermination. Predetermination is a doctrine that I understand is well established in common law—that people making decisions in a public capacity have to keep an open mind and not close their minds and fetter their discretion before they make those decisions. That principle is vital in the law courts. Within local government that doctrine has really taken off in the past 10 or 15 years. I was a member of a local authority until 1998, when I decided to retire and find something else to do with my life. Until then, it was not something that people paid a great deal of attention to. In planning decisions, the area where the rules on predetermination have really taken hold, if there was a proposal for a new supermarket, councillors were free to campaign about it and election campaigns could involve people expressing their views. It did not stop councillors taking part in decisions.
When I went back to become a member of a local authority in 2004, the situation had substantially changed. I have been aware of that from discussions with people on local authorities since then. At that time, largely because of the decisions of the Local Government Ombudsman, particularly in planning applications, the concept of fettering one’s discretion had become a major factor. Councillors, particularly on planning committees, were warned that they must not express a view on an application before making a decision on it. On many authorities councillors were often told that they could not speak to objectors, residents or applicants—or, if they could, that they had to do so in an organised way in the presence of a planning officer. This whole doctrine has therefore taken over at least one major field of local government: planning.
Over the years many of us have taken the view that this has not only fettered people’s discretion on planning applications but prevented the proper operation of local democracy. We have had ridiculous situations whereby, in one rural town in the West Midlands, candidates from our party campaigned during an election against the one big issue in the town, a major town centre development, but when they were elected to the council they were told that they could not take part in discussions on it, otherwise they risked being hauled up before the standards regime or even being taken to court.
This provision is a welcome attempt by the Government to solve this problem and to put the weight back on the democratic side of the balance, at least as far as planning applications are concerned. That is not to say that people should not make the actual decisions in full knowledge of all the facts and having listened to all the arguments. They should be able to take a rational decision. However, it is ridiculous that on some of the most important proposals coming forward for decision in communities, councillors are prevented from expressing a view, and candidates at elections run the risk of finding that they cannot take part in those decisions if they had expressed a view during an election in which residents, not unreasonably, wanted to know what the candidates thought about the proposals and may well have voted on that basis.
The provision in the Bill is very welcome. However, the more that I read the details, the less I understand what some of it means. Because this whole area has been tied up in legal red tape, the wording has to be absolutely right. Amendment 88 probes why the words “to any extent” are in subsection (1)(b), and whether that weakens the provision. Either you have a closed mind or you do not have a closed mind. Of course, you might have a closed mind at 10 am, open it again at 11 am, and close it again at noon, but I do not understand what a “closed mind (to any extent)” actually means. It would be helpful to have some clear understanding of that.
I am not sure that I shall receive satisfactory answers on all these amendments. I may get wonderful answers this afternoon, but perhaps these are matters that require a clear explanation, perhaps in writing.
Amendment 89 asks what is meant by,
“or to have appeared to have had”
a closed mind. The question, as I understand it, is whether you had a closed mind. I do not understand why “appeared to have had” is relevant. Either a person had a closed mind or they did not have a closed mind on the facts of the case. I question what those words mean and why they are there.
Lord Greaves
My Lords, as I said at the beginning, I should make it absolutely clear that I support what the Government are trying to do. The noble Lord, Lord Newton of Braintree, suggested that this was wonderland—and to some extent it is—but the debate has shown that there are a number of very important issues involved.
When I table fiddly, legalistic House of Lords-type amendments such as this, I always do so with a certain amount of fear that when I move them I shall be denounced around the Committee for wasting everybody’s time, but we have spent almost an hour debating this amendment. The debate has varied from a discussion of what the two particular words mean right through to the general principles. The noble Lord, Lord McKenzie of Luton, made a useful speech which took us through the general principles, the issues and the problems. The debate has shown that this provision perhaps needs a little more careful attention before we leave it in the Bill.
A noble Lord referred to the question of predetermination. One of the problems for local government is that this issue does not derive from any statute that I know about but from common law. It has developed over the past 15 years as a result of complaints and rulings from the Local Government Ombudsman, the Standards Board for England and some court cases.
We are talking about planning here more than anything else. When you are dealing with applicants who put in for planning permission—certain large supermarkets and so on—one of the problems is that it is very easy indeed for a council to end up in court. This can cost a great deal of money and councillors being hung out to dry. It is difficult and I hope that what the Government are trying to do will clarify the situation.
I do not want to see reams of regulations and statutory guidance on this but clear advice will have to be given to local councillors, particularly those on planning committees. That would be extremely useful. On councils such as mine, where the area committees are the planning committee for their area, every member of the council is a member of the planning committee. It affects everyone and they cannot hide behind what councils with very small planning committees do. They cannot say that certain councillors are insulated from the campaigning but everyone else can campaign; on my council, every councillor is a planning councillor on a planning committee and takes development control decisions every month.
There are ways of getting round it. I always say to developers, “Yes, I will meet you. I am not going to be hidebound and say that we do not generally agree to this. I am going to be careful what I say to you and you must be very clear that I shall look at all the issues. I represent people who are against what you are doing—indeed, I may represent you—but I shall listen to you. When the application comes to the committee I shall make a rational decision, but I cannot tell you now what that decision is going to be”.
It is more difficult when you are talking to angry constituents but there are ways and means of saying things. I could say, “Look, I cannot promise—I am not allowed to—that I will support you at the committee. I suggest that you come along to the committee, see what I do and then make your own mind up”. Even then sometimes I do not vote the way they want me to—but there we go. That is life. It has all happened in the last 15 years with regard to planning, but I do not believe that the planning system was hopeless before that all started, and this may get us back towards that. I ask the Government to issue clear advice and guidance to local councillors. It would be extremely helpful if somebody could produce a draft of that advice to councillors, based on what is in this legislation, before we get to Report. If the Government are able to do that, it will clarify a very great deal of the effect that the Government think it will have—not in all these legalistic worlds, but what ordinary councillors on the ground are going to be told they can and cannot do.
I offer that advice to the Government. Meanwhile, I said these were typical House of Lords amendments, and I thank my noble friend Lord Taylor for giving a typical House of Lords response to them, some of which I am satisfied with and some of which I did not quite understand on the spur of it. I will spend a typical House of Lords weekend reading Hansard to try to understand it. On that basis, I beg leave to withdraw the amendment.
Lord Greaves
“( ) This section does not apply to decisions made under a local authority’s licensing functions which relate to—
(a) the suitability of an individual to hold a personal licence, or(b) the personal and private circumstances of any individual.”
Lord Greaves
My Lords, this is a substantive issue, which affects licensing. There is an important point here that needs addressing. I have no idea what the Minister will say in response to this, but perhaps some thought needs putting into it. The noble Lord, Lord McKenzie of Luton, said there was a clear distinction between quasi-judicial decisions and general policy. There is always an argument as to how quasi-judicial planning is, but there are some licensing functions which nobody can possibly argue are not quasi-judicial—not least because it is not very long since they were actually dealt with in the magistrates’ courts. One of the Local Government Acts—I think it is the 2007 one, but I am not sure—transferred the function of granting permission and licences from the courts to the local authority.
In my experience, there are two main areas. There are licence applications for events and entertainments. If you want to run a cinema or theatre or you want a temporary licence for a big shindig in the park, or whatever it is, you have to apply to the local authority for a licence. There are alcohol licences, as well as licences for premises, pubs, clubs and retail premises—for new ones and for changes and extensions to existing ones. Then there are occasions when there might be objections from the police to an existing situation where the question of revocation or restriction of the licence is considered. All those things are matters of public policy. They are not huge, overriding policies and will never be in a manifesto, but the question of whether a particular premise is a suitable place to be a pub or club is general policy. The question of whether alcohol should be sold from particular retail premises is a matter of policy and ought to be treated as policy. The removal of predetermination restrictions should apply to that. But if you are dealing with the question of whether a particular individual is a suitable, fit and proper person to hold an alcohol licence in any of those circumstances, that is not policy. Under those circumstances, judicial rules really have to apply, and you cannot possibly have people going round saying, “That man is a rogue”, or, “That man did my sister down”, or whatever it is, “and therefore I am going to vote against him having a licence”. Members of the licensing committee have to be trained, they have to carry out proper procedures, the whole thing has to be done by due process and it is a matter of whether an individual is a fit and proper person.
The other area is taxi licences for operators, drivers and so on. Again, these are matters that refer to a particular individual and to whether that person is an appropriate person to drive a taxi and carry a member of the public around, or whether they are an appropriate person to run a taxi business. The question of whether premises are suitable to be taxi offices is probably a planning decision rather than a licensing decision. That is public policy, in my view, and it is entirely reasonable that you should be able to go around an area meeting people who are concerned, or even campaigning, about it. The question about whether Joe Bloggs or whoever is a suitable person to run a taxi business or to drive a taxi is like the situation with alcohol licences: they are not questions that councillors should go around debating in public, or in private before the meetings. They are there as if they are magistrates, considering on the facts and the evidence, usually on the advice of the police, whether or not these people are suitable. There is a specific case there where the predetermination rules should be applied, and strictly. The purpose of moving this amendment is to probe the Government’s thinking on this issue. I beg to move.
Lord McKenzie of Luton
My Lords, I will be brief. I am not unsympathetic to the noble Lord’s amendment but I am not sure that I agree with the basis on which he proposes it. I think that he is distinguishing some circumstances where predetermination can be dispensed with from others where it should not. Without reopening the arguments that we have just been through, I do not believe that that is the import of Clause 14. In a sense, we are still awaiting the definitive government view on that. The issues around predetermination ought to run throughout the decision-making process. It is not quasi-judicial planning issues; there are lots of other decisions that councillors may make. As I understand it, if they have discretion on decisions, it must be real discretion. If they have pre-empted it by predetermination, there is the prospect that that decision will be unlawful, whatever area of decision-making is involved. However, I would not particularly disagree with taking those licensing operations outside the provisions of Clause 14.
Lord Greaves
My Lords, I had hoped that the Government might take a rather different view on this. Having listened carefully to what the Minister has said, I am now even more convinced that I am right and they are wrong. The Minister referred to libel and data protection. I am not sure that either has much to do with it. Data protection would come into it with personal details being divulged to whichever licensing committee it was, which are private and should not be made public. If councillors made them public, they would be liable for it.
However, that is not at all the point that I am making. For example, there could be two rival taxi businesses in a community. The taxi business is fairly cut-throat. People do not make a great deal of profit and work very long hours. There are attempts to do the other side down, perhaps in a legal way. One faction is larger than the other and gets to the councillor who happens to be on the licensing committee. They say, “We do not want you to give a taxi operating licence to this person or taxi driver licences to these people, because they will be able to expand their operation and compete with us. We will find it more difficult”. These are personal applications. It would be outrageous if that councillor went around saying, “Yes, I will block the personal applications for taxi driving or operating licences from this or that person”, before the meeting. Councillors should be banned from saying things like that. Any councillor who goes around making such promises should be banned from taking part in the decision.
These decisions, particularly the alcohol decision, were until recently made in magistrates’ courts. Can you imagine a magistrate being in that position: going around and promising a community that they will block a particular person from taking over a pub and being the licensee because that community wants somebody from that community who it favours? Imagine the pub is in the middle of a big estate, and the estate has somebody who they would like to take over the pub, but the owners have an alternative in mind. To go around campaigning against that person getting a licence to run that pub would be absolutely disgraceful. It should be banned by law.
The more I listen to the Minister, the more I am absolutely convinced that I have raised a genuine problem. I disagreed with the noble Lord, Lord McKenzie of Luton. He was saying that he wanted everybody to be treated the same, but he wanted it to be more restrictive for everybody. The Bill says that predetermination —I keep wanting to say “predestination”, but that is not quite it—should be abolished for everybody. I am not suggesting that the noble Lord, Lord McKenzie, is saying that, but it is what the Government are effectively saying.
Lord McKenzie of Luton
I do not think that that is what the Bill is saying. If predetermination equals a closed mind—I was trying to get an answer from the Minister earlier—and if predetermination as a concept is abolished, then there are very serious issues, particularly on planning and licensing arrangements, on which the noble Lord touched. That is the point I make about predetermination.
Lord Greaves
Yes, I accept that. I accept that there is a difference. It seems to me that there is a difference between the Government’s rhetoric and what they are saying will happen: that councillors will be freed from the kind of constraints that the wife of the noble Lord, Lord Newton, found, and which I found when I got back on the council. I think that relates to the probing that the noble Lord has usefully undertaken in the past hour or so, but there is no doubt that the regime will be more liberal than at present. We are probing what it will be exactly. The noble Lord said that it will be very radical and that perhaps we were not appreciating how radical it will be.
In general, I am fairly happy with that. However, I am not happy, and I suggest noble Lords should not be happy, about how it applies to applications for personal licences by individuals where they may be seen as controversial in the community. There may be other incidences as well. Let us look at an alternative. In a fairly built-up area, there are two corner shops which do not have alcohol licences but one of them applies for such a licence and the other one objects. The shop owner who objects could have lots of friends in the community who will instigate a petition, saying that the other shop owner should not have a licence. The motivation will be competition, not that the shop owner has spent the past five years in jail or is a fraudster or is generally unsuitable; it is simply competitive rivalry. As a result, the friends persuade a councillor with whom they have close connections, and who happens to be on the licensing committee, to oppose the licence. They hold a public meeting and present a petition. Surely that should not be allowed and yet, as I understand it, that kind of thing would be allowed under the new regime that the Government propose.
There is an important and serious issue here. I ask the Government to take the matter more seriously and to take more legal advice on it. On that basis, I beg leave to withdraw the amendment.
Lord Greaves
My Lords, I am not sure we have had a may/must amendment yet on this Bill, but perhaps we have and I have missed it. This is an important amendment. I rise to speak to my amendments in this group: Amendments 97A, 98E, 98F and 98H. I will also speak to the other two amendments in the group, if I may.
There is widespread concern within local government that the Government have not got this exactly right. At the very least, it needs some fettling and a number of probably quite major changes if it is going to work fairly. As my noble friend Lord Tope said earlier, there is a widespread feeling in local government—it is not universal—that the demise of the Standards Board for England is to be welcomed. The Standards Board for England’s regime has turned out in practice to be expensive. It has been arbitrary in too many cases, and therefore it has been seen to be unfair. It has been open to abuse, and it has been open to attempted political manipulation, not by Standards Board members or its staff, but by people trying to use the system in order to do down opponents.
In our judgment, the removal of the Standards Board for England is a good idea, and we congratulate the Government on doing it, but something has to replace it. We cannot simply go back to the free-for-all situation we had up until about 20 years ago when standards codes and sanctions against councillors were hardly known. The system then seemed to work. There did not seem to be any more rogue councillors than there are now, and people did not seem to step out of line more than they do now, but the world has changed. We are now in a world in which standards in public life have come in and are accepted right across the board of everybody who takes part in public life. We have even had to grapple with these matters and come up with solutions here in the House of Lords. Local authorities are no different, and to pretend that local authorities generally, or some local authorities in particular, can be excepted from this situation is not the world that we are now living in.
The Government’s proposal in the Bill is that there will be no national system, no national organisations and no bureaucracies; it will all be left to local authorities. In our debate on a previous amendment, my noble friend Lord Taylor said that it will be up to local authorities to behave sensibly and do what they think is best in their area. There will be no uniform or national standards code, so each authority will be able to adopt its own code or not have one. It can keep, amend or do away with the present code. If any of my description of the present system is wrong, I hope the Minister will intervene and tell me, but I do not think it is.
Authorities will be able to choose whether to have standards committees. Since local authorities all have them at the moment and are institutionally fairly conservative bodies, most of them will probably keep them in one form or another, but it will be open to an authority not to have them, so there will be a hotchpotch pattern; they will be able to invent their own rules for how standards committees work within their own codes of conduct.
In addition, for the offence of failing to declare appropriate interests, either by not entering them on to a register of interests or by failing to declare them in meetings at appropriate times, the only real sanction left is the criminal law and, subject to the Director of Public Prosecutions’ agreement, people will be arraigned before a magistrates’ court if the DPP thinks it is serious enough. Meanwhile, parish councils will be left in some sort of limbo. They might be able to have their own systems or to continue to be part of a district council’s standards committee and system of standards, but if the local district council does not have one or decides to do away with it all, the parish councillors will have the choice either of doing it themselves, which might be rather difficult for small parish councils, or not doing it at all.
That seems to be the regime that is on offer. Perhaps the way I have presented it suggests that I am not terribly impressed with it. Nevertheless, I think my presentation of it is factually correct.
We have been here before and had something similar to this. When standards committees were first brought into local authorities, local authorities were left to do their own thing. Many of them did it very well, but in some places it was not done well. It was done either inefficiently or in an arbitrary, uneven or unfair way. In a small minority of places—it is always a small minority—it was not a good thing. It was fairly dreadful. Some authorities used it to victimise individual councillors in order to conduct campaigns against opposition groups on the council and to conduct witch-hunts against individuals. That is always the danger if local authorities in an area like this are left to their own devices, because there will be some places where malign, malevolent politics gets in the way of a fair system. Therefore, we propose in amendments in this group, and in the next group, which I will speak to later, a system in which every authority must have a standards committee. It seems ridiculous that someone could be dual-hatted or triple-hatted, and on three different authorities at different levels, some of those authorities having a standards committee and some not.
Equally, we are suggesting a uniform, standard, national code of conduct. We are not talking about local diversity. There cannot be local diversity about what is appropriate conduct for people in public life. We are talking about standards in public life. While standards and rules for councillors may be different from those for Members of the House of Lords, Members of the House of Commons, people on national quangos or whatever, the organisations are different. Nevertheless, they should be based on the same principles and underlying standards in public life.
There does not seem to be any reason why, if I am a member of a district council, a parish council and a county council, which I have no intention of being except for one of them, there should be a different code of conduct on each council. Surely, that cannot be right. Nor can it be right that of the 11 or 12 district councils in Lancashire, some do not have a code of conduct and some have a very different code of conduct from the adjoining council. Codes of conduct should be laid down nationally.
We are saying that the drawing up of the code of conduct and its approval should be done by local government and not by the Secretary of State or national government. It should be the responsibility of representatives of local government and, in terms of legislation, the LGA obviously is a key representative. We want systems for appeals and we want to sort out parish councils. We want to look at criminal offences, but they are in the next group so I will not talk about them any more at the moment.
On something like this there has to be protection for the public against rogue councils. Much as I have an underlying, innate aversion to national uniformity in anything, some things are so important and fundamental that they underpin everything else. This is the right way forward.
Lord McKenzie of Luton
My Lords, we agree with the noble Lord, Lord Greaves, that we cannot have a free-for-all and that it should be mandatory for every local authority to have a code of conduct. There should be a universal code and an appeals procedure. If that means that we would support each of these amendments, that is where we are.
Lord Greaves
I am confused because my Marshalled List does not have the next amendment, Amendment 98HA, on it.
Lord Greaves
I have found it.
Clause 18 : Disclosure and registration of members' interests
Amendment 98HA
Lord Greaves
Lord Greaves
My Lords, in effect this is not a substantial amendment, so I probably do not have to move it formally, but I shall speak to the substantial amendments in the group.
Lord Taylor of Holbeach
My Lords, we do not see the case for these amendments, which would limit the registering and declaring of interests to financial interests. That would take us back to the days before the Widdicombe committee in 1988, when there was widespread concern about the treatment of non-pecuniary interests, which led to the strengthening of the requirements relating to pecuniary interests. There are clearly situations where non-financial interests are relevant to decision-making by councillors, and it is right that the public are aware of such interests so that they can see that decisions are being made fairly and transparently. I hope that my noble friend will see the merit of the argument and withdraw his amendment.
Lord Greaves
My Lords, I apologise. I should have jumped up before the Minister. I will speak to Amendments 98K and 98M in this group.
On the two other amendments in the group, Amendments 98J and 98L, which would remove “and other” and “or other” respectively, an important, if not fundamental, point to be made is that the Government are proposing to use in this Bill language which in local government is rather out of date. Local government used to talk about financial interests and non-financial interests. If you had a financial interest, you had to declare it. You then had to do whatever the council instructed you to do, such as leave the room or sit there and not speak. If you had a non-financial interest, you had to declare it, but you were not usually subject to those sanctions.
My experience is that local government nowadays talks about personal and prejudicial interests, which are similar. However, prejudicial interests, while they include financial interests, are wider ranging and may include interests which are not directly financial but are nevertheless thought to be prejudicial to somebody taking part in discussion and debate. Personal interests, which have to be declared, are those which people should know about but are not thought to be prejudicial to people taking part in a debate. It seems to be common practice in local government nowadays for those words to be used. I was fairly sure that they had been used in the previous legislation, although I have not looked it up. Perhaps along with my noble friend, I would ask the Government to check the nomenclature, because there is no point putting in legislation words which are not now used on the ground and, in any case, are narrower perhaps, and less clear certainly, than the words and categories now used in local government.
My amendments in this group follow on from the amendments in the previous group. They are part of a package of the way we suggest the new standards regime needs to be changed. First, if there is to be a local system of councillors being sanctioned by local committees and no National Standards Board procedure, there needs to be an appeals procedure written into the system. There has to be a way in which someone who feels aggrieved by a local decision is able to appeal to a wider group against the sanction made against them. As I understand it, this is normal human rights and administrative tribunal procedure. In many ways these bodies will be operating as administrative tribunals and we hope that the Government will look at this issue. We suggest that it should not be a national quango such as the Standards Board for England and that it should not be run by central government; it should be operated within local government by representatives of local government and it should be set up in co-operation with the LGA. As my noble friend Lord Shipley said, we have set out ways in which this can be done.
My second point concerns parish councils. The Government have not bottomed the issue of parish councils on this new standards regime. I have a long briefing about the problems that it will cause to parish councils but I shall not read it all out. If parish councils have to operate their own procedures, there will clearly be resource implications. Big town councils might be able to do it—although it might be wasteful of their funding—but small parish councils will not possibly be able to do it. If there are many individual local codes so that parish councils operate different systems and some do not have any, how will members of parish councils be trained to understand the code? How will parish clerks, who play an absolutely crucial role, be trained in the new system?
My experience from talking to people involved in standards committee throughout the country is that where there are lots of parish councils they seem to occupy quite a high proportion of the time of standards committees. The reason for this is obvious: parish councillors are not getting the expert advice on standards matters—on declarations of interest and so on—which they ought to be getting; and parish clerks are perhaps not being trained or not passing on that advice. I am a huge fan of parish councils but there may be something about parish-level politics and government that leads to individual rivalries and encourages people to make complaints against each other. Whatever it is, there is no doubt that parishes form quite a large part of the workload of standards committees in many different places. To leave them adrift, as this Bill seems to do, does not seem the right way to go.
In our view, the parishes probably need their own system. That system ought to be operated via the established means of communication and training that parish councils have with the National Association of Local Councils and other bodies such as the county organisations, and there ought to be county-level standards committees for parish councils. Whatever the system is, doing it within the parish council community is a sensible idea—particularly if the parish council finds itself cast adrift with a district that does not have a system. In any case, if districts have different codes of conduct and different systems for standards committees, the parish councils will have to join in those willy-nilly whether or not they agree with the systems and the codes. A separate parish system seems to be the way to look at things.
My final point relates to criminal offences. Again, we think the Government have not thought this issue through properly. On failures to declare interests, a major failure is a very serious matter indeed, whether it be a failure to register or a failure to declare during a meeting. A minor failure would require a sanction—but not a draconian sanction such as being hauled up before a magistrates' court. Yet the government system seems to mean that if the offence of not declaring or not registering an interest is not sufficiently serious for the DPP to agree to prosecute, there will be no sanctions at all. That does not seem to be the right way forward.
As for the criminal investigations and vexatious complaints, that needs thinking through; there are enough vexatious complaints on standards already that end up with people being found not guilty and having no sanctions against them—or, in my case, the complaint was proved and the sanction was nothing. People can imagine what happened. There are enough cases of people using the standards procedure for political or personal vexatious purposes. Think of the prospects of this being used when criminal sanctions are possible. You would get massive headlines in the local papers that the complaints had been made, it would all come to nothing but the damage would all have been done. It has to be thought through a bit more carefully.
I join my noble friend Lord Tope in hoping that we can have discussions with the Government in the mean time and that at the very least we can get the thing thought through again. If no change occurs at the end of the day, so be it—but we are convinced that the Government have not yet got it quite right.
Lord McKenzie of Luton
I am not sure that we would agree with everything that the noble Lord has said, but we would appreciate the opportunity to join in the discussions with government together with the coalition parties.