London Borough of Tower Hamlets

Debate between Lord Pickles and Richard Shepherd

Tuesday 4th November 2014 Commons Chamber

[Mr Pickles]

I am not sure whether it will be necessary to uphold the local officials, some of whose rights are enshrined in law. I refer the hon. Gentleman to the point I made earlier to the right hon. Member for Greenwich and Woolwich (Mr Raynsford), which is that for the most part local government operates under this system and we do not need to regulate it too closely because everyone operates, and has always done so, for the benefit of the public. The difficulty comes when a council disregards the norm, the rules and the normal give and take that occurs in local authorities. I am not entirely persuaded that we should legislate for all local authorities because one has behaved badly, but I am persuaded that whatever system we operate, be it a cabinet, committee or mayoral system—I do welcome the variety—it must conform to probity, transparency and accountability under the law.

[Sir Richard Shepherd (Aldridge-Brownhills) (Con)]

Words such as “crooked” and “corrupt” have been used across the Floor of the House in response to the issues before us, yet the police have no reason for action. I just do not understand how one can reconcile corruption as laid out in the forms that my right hon. Friend has pointed out and there being no criminal implications whatsoever. What can be the answer?

[Mr Pickles]

That of course is a matter for the police—it is not a matter for me—but let me quote from the PwC report about the sale of Poplar town hall: It said:

“The Authority accepted a late bid from the winning bidder after other bids had been opened, creating a risk of bid manipulation…While the difference was small, the Authority did not in fact select the highest bidder, in spite of the external adviser’s recommendation to do so….The winning bidder was, as a matter of fact, connected to a person with other business interests that had an association with the Mayor.”

Would a well-run, accountable, transparent council act like that? I suggest that it would not.