Local Audit and Accountability Bill [HL] Debate

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Department: Cabinet Office

Local Audit and Accountability Bill [HL]

Earl of Lytton Excerpts
Wednesday 26th June 2013

(10 years, 10 months ago)

Grand Committee
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Moved by
18ZA: Clause 34, page 21, line 6, after “authorities” insert “who receives more than half their income from government funds and”
Earl of Lytton Portrait The Earl of Lytton
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My Lords, this amendment returns to an issue that was flagged up by more than one noble Lord at Second Reading—the question of mission creep.

One of the problems of local democracy is the perception that there is very little for the elector to influence beyond which party happens to rule the roost. The process of localism—and indeed the fruits of the Government’s initiatives on this—must surely be to redress this balance. That means having current, live and important issues, including matters of expenditure, at stake in local elections. I will return to this subject in respect of Clause 39, so I will leave it for the moment.

If the role of the National Audit Office is allowed to expand, as would be possible under this Bill, the question that the Local Government Association has asked—indeed, this amendment comes with its imprimatur—is: what is left for the voter to determine? Democracy and democratic accountability are clearly in point here.

The Local Government Association’s second question is: what is there to prevent the National Audit Office effectively replicating the investigative adventurism— my words, not those of the Local Government Association—of the Audit Commission? On our first day in Committee, the Minister said that a recreation of the Audit Commission by the back door is to be avoided and I entirely understand that. Just so, the recreation of its functions by an expansion of the National Audit Office is equally to be guarded against.

Amendment 18ZA would restrict the role of the National Audit Office to prevent this mission creep and the potential erosion of the proper function and role of local democracy. Its scrutiny would therefore apply to expenditure, principally that from central government. I will speak also to Amendment 18ZB, but on the detail of Amendment 18ZA I can see that the Minister may feel that this is too wide a get-out clause. However, if he could indicate whether the principle might be acceptable, I dare say that we could talk about the detail of the wording and how we can deal with that as the Bill proceeds.

Amendment 18ZB has been tabled, of course, to prevent mission creep, to which I have referred. It seems that the Bill effectively risks reintroducing some of the intrusive and costly activities that the abolition of the Audit Commission was supposed to have removed. Looking at the overall geometry, as the LGA would put it, the role of the National Audit Office would be restricted to evaluating expenditure that has a majority of its funding from the central government grant. It goes on to say that the NAO should be precluded from replicating the activities of the Audit Commission under its previous assessment and inspection regime.

I will leave it there. I dare say that the noble Lord, Lord Tope, may have some comments to make, as will other noble Lords. I beg to move.

Lord Tope Portrait Lord Tope
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My Lords, I am grateful to the noble Earl, Lord Lytton, for moving his amendment, to which I have added my name. I endorse all that he said and, in deference to the Grand Committee, I will not repeat it; I will simply add a number of points.

The amendments of course come at the instigation of the Local Government Association, but reflect fairly widespread concern, based upon experience with the Audit Commission, about what is termed “mission creep”. Most, or perhaps all, of us would agree that the Audit Commission started very well. It did some very good work and continued to do so, but its mission and role expanded to such an extent that the Government, without too much objection elsewhere, have determined that it has now reached the end of its useful life. There is concern, whether well founded or not only time will tell, that the same experience could come to the National Audit Office—that having now got the limited role that was intended, over time, just as with the Audit Commission, the mission will expand.

I have had a useful briefing from the National Audit Office. It was mostly factual and very reassuring. Paragraph 2 states:

“The NAO considers that any future responsibilities it takes on within the Government’s new framework for local public audit should … align with the NAO’s core role of providing assurance to Parliament and holding Government to account over its use of resources”.

That is the intention behind Amendment 18ZA: to try to give effect to that. It may not be the best way of doing so; I do not know. However, the intention is there to say that if the NAO’s role is to Parliament in respect of the use of government resources, then those resources which are raised locally—which in some authorities are considerable; it varies—are outside the core role of the NAO as defined by Parliament and repeated by the NAO itself.

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In conclusion, we believe that the power in Clause 34 supports the Comptroller and Auditor-General’s existing role. These amendments would be overly restrictive in limiting the Comptroller and Auditor-General’s ability to scrutinise broader public spending on behalf of Parliament and the taxpayer and to help public service managers’ performance and service delivery. Finally, we believe that there are duties in the Bill and parliamentary controls that mitigate the risks that noble Lords have expressed, particularly about mission creep and the possibility of reintroducing league tables. I hope that, with those remarks, the noble Lord will withdraw his amendment.
Earl of Lytton Portrait The Earl of Lytton
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My Lords, first, I thank the noble Lord, Lord Tope, for his support and the noble Lords, Lord McKenzie and Lord Beecham, for their comments. All three have a much greater knowledge of local government matters than I can claim to possess but I would say to the noble Lord, Lord Beecham, in particular that it is important not to take amendments of this sort at this stage of the Bill too literally. The intention was to try to probe the parameters and get that on the record so that we know where we are.

Turning to the Minister’s comments, I hope I did not say that there would necessarily be mission creep, damage to democracy or any of the other things; only if it is uncontrolled and unconstrained could there be circumstances in which such things arise. But I am very comforted by what she said, particularly about the safeguards already in the Bill in connection with Amendment 18ZB.

It is my view that audit is a right and proper process. I am not suggesting for one minute that it should be removed, far from it; I do not think that anybody would advance that. However, it needs to be consistent with cost efficiency and done in a way that is not intrusive or that displaces other proper avenues of choice. I will leave it there for the time being but may return to it at a later stage.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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Before the noble Earl withdraws his amendment, can the Minister tell us any more about the value-for-money profiles, and in particular what the plans are to maintain those? Obviously that requires the compilation of data and comparative data.

Baroness Hanham Portrait Baroness Hanham
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We are currently considering the future management of the Audit Commission’s value for money—the question asked. I cannot say anything more today but we will come back to this before Report, I hope, and I will certainly make sure that noble Lords are kept in touch with progress, which I think is what I said last time.

Earl of Lytton Portrait The Earl of Lytton
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Not to prolong the matter, I beg leave to withdraw the amendment.

Amendment 18ZA withdrawn.
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Lord Beecham Portrait Lord Beecham
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My Lords, I have a certain sympathy with the amendment moved by the noble Lord. It is a long time since I recall seeing a notice about the provision of a cattle grid, a busker’s licence or even acupuncture, which feature among the interesting series of regulations which apparently apply, and it seems that an overhaul of the requirement is long overdue. However, I do not completely follow the line he has taken. We must not forget that a significant proportion of the population are still not involved with modern communications and are therefore not able to log on to a council website, for example. Moreover, if you log on to a council website, generally speaking you are looking for something, whereas if you are perusing a newspaper you are more likely to come across things. The question is: what things ought to be included in this provision? That is a perfectly legitimate point which the Government need to address to reduce substantially the scope of the present requirement.

However, I do not have too much sympathy with local authorities which complain that they are being charged a differential rate as the answer is in their own hands. They should threaten to withdraw the relevant advertising from the local paper if they do not get better terms. I should think that that would be a pretty powerful sanction. I think that my authority spends £88,000 a year on statutory notice advertising. There is ample scope to reduce that with a more sensible list but I would not like to see the requirement go altogether. Certain other things also have to be published by way of statutory notice—for example, in the realm of probate, licensing matters and things of that kind. Certain things in this enormously long list ought to be retained. I am with the noble Lord in hoping that the Government review this issue and come forward with a much reduced list which would make more sense and perhaps reduce the cost. However, I would not go all the way with him and support the amendment as it stands.

Earl of Lytton Portrait The Earl of Lytton
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My Lords, I will follow what the noble Lord, Lord Beecham, said, in the same vein, because I think that getting rid of the requirement altogether would create all sorts of difficulties, which the noble Lord, Lord Beecham, has referred to.

I cannot help commenting that for all the money that is spent on these things, they seem to be reproduced in the smallest print and in the most insignificant parts of the relevant newspaper. One always wonders whether a local authority chooses its moment to stick in an important announcement when the local football team has been moved up to the next division or whatever it happens to be, and nobody is going to read the small print in the public notices part of the paper. Maybe it is because they are being charged so much that the print is so small so they need to cram it into a smaller number of column inches in order to get value for money—but that is speculation on my part.

I agree that better and more efficient ways should increasingly be used to disseminate this information. Very often I hear about things not through the pages of the press, where they are carefully hidden, but because the parish council or some other organisation sends a round robin e-mail and I happen to be on the circulation list and that is how I get to know about it. I think that must be the experience of many noble Lords and many members of the public. So I support the general purpose here. Certainly, I would not necessarily support the removal of public advertising in the press for every single thing that is on the list of the noble Lord, Lord Tope.

Baroness Hanham Portrait Baroness Hanham
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My Lords, happily, noble Lords have not quite agreed on this again, which is always very useful as far as I am concerned, but they have raised issues that are important and I want to acknowledge that.

The purpose of statutory notices is to inform the public about decisions that will affect their lives, their property and their amenity. There are 162 aspects they will need to be informed about but they are all relevant to local people, either individually or in groups. The amendment does not consider the effect on the public or on business and other groups, and would potentially put local people in the dark. We must acknowledge that there are still people who do not access information other than through newspapers. The local paper, where it exists, still fulfils a very public duty in that regard.

Removing statutory notices from the requirement to publish for local authorities would also stifle local transparency and the rights of local people to challenge decisions that impact upon their lives, because they would not know about them. This is a complex and contentious issue, as my letter to the noble Lord, Lord Tope, acknowledged. I do not believe there is any consensus about taking them out of local newspapers even if they cost a small amount to put in.

The burden of statutory advertising is one that we acknowledge, and the Communities and Local Government Select Committee’s recommendation a couple of years ago for a review of publication requirements for statutory notices cannot be ignored in the long term. Against this background, local newspapers remain an important part of local democracy, ensuring that local people are informed about the decisions that affect their daily lives. It is essential that local people have free and open access to information that can affect them or impinge upon them rather than having to rely on other means. I acknowledge that the requirement to publish some notices in newspapers comes from an age which has long since gone—1972 was a very different time from now—and they could perhaps be removed. However, other requirements remain as valid today as they always have been.

Looking at planning applications, there is a limited amount of time for local residents to make representations, yet applications can and do affect their and their neighbours’ quality of life and property. The previous Administration consulted in 2009 on removing the statutory requirements to publish planning notices in newspapers. It was not well received. The noble Lord, Lord McKenzie, may remember that.

The then Government concluded that it was clear from responses that some members of the public and community groups relied on the statutory notices in newspapers to learn about planning applications in their area. There was no conviction that good alternative arrangements could readily be rolled out. The effect of this amendment would therefore be to reduce public scrutiny regarding, for example, planning decisions, the provision of sex shops, bus-lane fines, casinos, betting shops and councillor allowances, among myriad others. I acknowledge that all 162 are laid out in Amendment 19E, but I have understandably mentioned a few which are important. Although some may be willing to see all these go, we would ask whether the blanket removal of a huge swathe of statutory notices is really in the public interest or ideal. That does not stop us looking at the statutory notices under initiatives such as the Red Tape Challenge, but they are currently as listed.

It is vital that we understand how local people receive and use information in the 21st century. Some make use of innovative technology, and everyone here sits with their little iPads making sure they know exactly what is going on at home when they are sitting here taking important decisions about legislation. However, not everyone is as privileged and not everybody has, or wants, easy access to technology. They like reading what they want in papers and we cannot disregard that.

It is also true that the money that pays for these statutory notices helps to keep local newspapers in existence. That is important to ensure that those who are not going to be tied up to the internet have ready access to information not only about statutory notices but about what is going on their local area. The newspaper industry is clear that competition with local authority newspapers for advertising revenue is damaging their primary source of revenue and preventing newspapers reporting on what local authorities are doing on behalf of local people.

It would be unfair to remove statutory notices in such a blanket way as proposed, particularly while independent newspapers are—as the noble Lord, Lord Tope, acknowledged—under threat and need to be kept in business. A small contribution to that is through the statutory notices, which seems a good use of public money. We would not wish to accept the amendment. With the comments I have made, and with the understanding that the coalition agreement was that we would try to protect local newspapers, I would ask the noble Lord to withdraw his amendment.

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Lord Beecham Portrait Lord Beecham
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My Lords, perhaps I can give the Minister a few more minutes to assemble her thoughts.

Once again we are dealing with one of Mr Pickles’s little obsessions. It is unfortunate that so often our parliamentary time is taken up with dealing with these notions of his. I entirely support the amendment and the sentiments with which the noble Lord, Lord Tope, has moved it.

It is interesting to look at the justification—perhaps that is the wrong word; the explanation—for the proposals in the government document, which describes their objectives in revising the code. The code speaks of competition but of course it does not deal with competition, which can and should be dealt with by the appropriate legislation. The department, however, considers that the publicity code is,

“the right vehicle for imposing tougher rules to stop unfair competition by local authority newspapers”.

That is quite extraordinary. It goes on to say:

“The Department’s view is that the proliferation of council newspapers can have the effect of reducing the impact of independent local newspapers. A healthy free press is important in providing information to the public to hold their local authority to account”.

I could not agree more. I deplore the decline in the coverage of the affairs of my council and many others, which has gone on now, to my certain knowledge, for 20 years. Those sentiments are quite right but the statement goes on, risibly, to suggest:

“Council newspapers, issued frequently and designed to resemble a local newspaper can mislead members of the public reading them that they are local newspapers covering council events and give communities a biased view of the activities of the council”.

So the residents of Newcastle are so dim as not to be able to distinguish between the Evening Chronicle or the Newcastle Journal and the occasional distribution of the council’s Citylife? This is a ludicrous proposition.

The suggestion that somehow the terrible decline in the newspaper industry, local newspapers in particular, is the responsibility of local government is just absurd. I can quote some figures about that. Trinity Mirror, which runs papers in my part of the world, employed 6,000 production and editorial staff in 2004; the figure is now fewer than 2,700. The Daily Mail has shed a quarter of its 3,000-strong workforce since 2010. This is not because people are rushing out to get hold of a council newspaper, or waiting eagerly for it to arrive through the door, and therefore no longer need to read these other papers, it is because of the changes in the industry; it is because we now have the internet and social media; and it is perhaps because people are less interested in news.

Certainly, in my experience, local newspapers are much less interested in covering council affairs than they ever were. That process is still going on and I regret it. When I was leader of the council—this is going back a long time—I used to get daily calls from a newspaper correspondent. That stopped before I finished as leader, which was in 1994. They do not come to council meetings and never cover scrutiny meetings, because the industry is in an altogether different position now.

One of the more useful briefings that some of us have received has come from the National Union of Journalists. It opposes this government stance and this clause. As it puts it:

“The NUJ has no difficulty with additional guidance being issued to local authorities and councils. However, the new publicity code ‘includes specific guidance about the frequency, content and appearance of local authority newspapers, including recommending that principal local authorities limit the publication’”—

well, we know about that. The journalists go on to say:

“We do not believe that this element of guidance reflects the needs of many communities, nor the practicalities of providing prompt, accurate advice and information to communities”.

That is, of course, right. They also make the point that it is perfectly possible that if authorities stray into the area of political propaganda—which they should not—they can be,

“referred to the appropriate body for investigating improper use of council funds for political aims”.

Proper officers of the council should be keeping an eye precisely on that sort of area. If they do not, perhaps the auditors should be doing so. They presumably will be getting copies of any civic newspaper while they are about their business.

The Audit Commission itself, three years ago, rebutted the suggestion by newspaper proprietors that local authority publications represented unfair competition. It found that the money spent by councils was not unreasonable, that few council publications were published sufficiently frequently to be viable media for most local advertising—which is where the press think that they are being deprived of revenues—and that the current accountability framework is adequate. That seems a pretty unanswerable case. The position that the Government are adopting bears no relationship to the reality.

However, that is only publications and the press. There is another aspect to this code, which the noble Lord has not mentioned—the question of lobbying and the effective injunction against councils employing firms to lobby on their behalf. Again, if there were any suggestion that the lobbying was of a political nature, that would be caught in exactly the same way as any political material in a newspaper. But why should a council not seek to use lobbyists—preferably registered ones, which I hope will come, even if we have not got round to it yet—to develop an argument with Members of this House or the other House, or to influence government or public opinion? There is nothing wrong with that provided it is not a political exercise. However, that is also excluded under the revised code of practice.

Again, too much power is accruing in the hands of the Secretary of State, who in this case is being set up as a censor or inquisitor prepared to put something on the index of prohibited publications. That is not the function of the Secretary of State. This is an intrusion into local democracy under the specious argument that somehow local council publications are undermining the press. It is an absurd proposition and I support the noble Lord.

Earl of Lytton Portrait The Earl of Lytton
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My Lords, the noble Lord, Lord Tope, will be pleased to know that the National Association of Local Councils supports the thrust of what he has advanced here. It does not believe that there is a problem, nor does it see a need to change the present code status. It is not aware of a single instance of the Secretary of State intervening in a parish council publicity matter. It says that the taking of additional powers by the Secretary of State is distinctly non-localist, and there are some concerns at the potential longer-term implications for parish newsletters. It certainly does not think that this is a legislative priority. I am at one with what has been said on this.

I have a separate concern that I expressed at Second Reading on the suitability of the present code to become a statutory code at all. When I put this to the Local Government Association, it agreed with me that the current drafting appears to be less than precise and said that it was a matter on which the LGA had taken some advice. However, that is not to say that the general thrust of the code is wrong. It actually contains some good principles but is qualified by all sorts of terms, mainly prefaced by the word “should”, and includes phrases such as “likely to be perceived”. There are also imperatives about there being no,

“commentary on contentious areas of public policy”,

and positions being presented “in a fair manner”. Authorities should not do anything,

“designed to influence members of political parties”.

Paragraph 13 of the code states:

“The purchase of advertising space should not be used as a method of subsidising voluntary, public or commercial organisations”.

That begs the question: when is a subsidy merely part of a cost contribution? I note also that the definition of what might be unreasonably partisan, contentious, sensitive or likely to have an influence if not even-handed is probably not a constant between Parliament at this level and the parish pump at that level. I certainly question whether it applies in equal manner to everything in between. How would making this code statutory improve things? Would it be simply an avenue for contention whereby the matter would have to be thrashed out in the courts—the Secretary of State versus some borough, parish or other?

Is that a profitable way to go forward, bearing in mind that there do not seem to have been any substantial problems? It is said there have been one or two in some London boroughs but I do not know whether they are regarded as being typical or whether those boroughs that have had the finger wagged at them have failed to observe the wagging finger. Other noble Lords may know more about than I do, but it seems to me that the case for the clause is not made.

Baroness Hanham Portrait Baroness Hanham
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My Lords, I recognise that the Room is not with me but it is none the less extremely important that the clause stands part of the Bill.

The code of recommended practice, agreed by both Houses of Parliament, is the guidance to which local authorities must have regard when producing their publicity. It sets out the seven principles that local authorities have to abide by when producing their publicity. We know what they are and I shall not read them out. The publicity code is necessary because local authority publicity can be expensive and contentious. We acknowledge that the majority of local authorities abide by the guidance in the publicity code. However, there are some that do not. There are examples of local authorities that still produce weekly newspapers that are highly contentious and political. While there may be only one or two authorities that have done this, it is proper that someone is able to make sure that that does not happen.

Clause 38 provides the Secretary of State with the power to take action where a local authority is not complying with the publicity code. This would be taking action by direction. The Secretary of State can direct a local authority or a group of local authorities to fulfil or take notice of the publicity code and can require compliance. Such directions do not require all local authorities to comply—although it could do so, which would make the power statutory, if there were to be a real outbreak across every single local authority.

However, that is not what this clause is directed at. It is directed at the one or two authorities that are still not conforming to the publicity code. If a publicity notice is excessive and people complain, it enables the Secretary of State to direct the local authority to comply with that code. The clause sets out the procedures to be followed before a direction is given and these require the Secretary of State to give proper notice of the proposed direction and for an authority to make representations within 14 days.

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Lord Geddes Portrait The Deputy Speaker (Lord Geddes)
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It may assist the Grand Committee if I advise that this is not an amendment as such but an opportunity for one or more noble Lords to voice their opposition to the Question that the clause stand part of the Bill.

Earl of Lytton Portrait The Earl of Lytton
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My Lords, my entire purpose in objecting to the clause came not only at the request of the LGA but as a result of a question that I put to it about the interface between the council tax referendum regime on the one hand and local democracy on the other. It felt, as do I, that the Government’s position needed further explanation. The National Association of Local Councils has also raised doubts about the wisdom of this part of the Bill, so here I am opening up the point for debate.

The Committee will know better than I about the frequency of local elections, depending on the type of authority and whether all the seats are up for election—a third, a half, or whatever, depending on the type of authority. The authorities that seem to have the least frequent elections seem to be the shire counties and the London boroughs, according to a potted account with which I have been provided by the LGA. The unitary and district authorities obviously have a different range of election frequencies and proportions of those standing for election, so the only slightly tongue-in-cheek question is this: how many council tax referenda equate to an election? As I say, that is slightly tongue in cheek.

I accept that a council tax referendum may be advanced on a narrower basis than a local election but it seems to be obvious that if a council is elected and starts to implement its programme, but is then subject to a further check on progress via a referendum on the logical outcomes of its policies, it begins to look like a recipe for potential gridlock. Giving the electorate the right to chop and change midway through an electoral cycle is curious. I suggest that the open-ended nature of that needs to be looked at. I do not necessarily say that the principle of intervening in council tax referenda is wrong or anything like that, but they do not necessarily coincide with the normal electoral cycle, and there is therefore the possibility of such referenda being quite disruptive.

As I said earlier, in order to galvanise the local electorate, which is sorely needed in some cases, it is necessary to have matters of substance and of relevance to the electors on which their votes can make a difference. That is a very important point. The LGA certainly feels—I noted the comments of the noble Baroness in another context—that the referendum provision risks compromising the thrust of local democracy in certain circumstances and that the main decision should be via the normal electoral ballot box. That is certainly the view of the LGA. As I say, we cannot guarantee that a referendum and a local election will coincide. A further explanation is needed from the Government.

In terms of forward investments, I noted what the noble Baroness said a few minutes ago about the way in which the previous amendments might be brought to bear on this whole matter. I did not quite understand the thread that a longer-term investment process would necessarily be proof against the effects of a referendum. That was my intention at this stage. I noted that no other noble Lord had added their name to the amendment and therefore anticipated that I might be in a minority of one standing before the Committee. On the broader principle, however, I should be interested to hear the Minister’s comments and those of other noble Lords.

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Moved by
19C: After Clause 39, insert the following new Clause—
“Parish polls
(1) The Secretary of State may by order amend Schedule 12 to the Local Government Act 1972 to provide for the circumstances in which a parish poll may be demanded in relation to parish financial matters.
(2) An order under this section may make provision for—
(a) different requirements having regard to the purposes for which a parish poll is sought;(b) different requirements having regard to smaller authorities or authorities with electorates below a threshold to be specified in the order;(c) safeguarding an authority against misuse or disproportionate costs of a parish poll, including circumstances in which the authority may require reimbursement of the cost of a poll; and(d) the circumstances in which a demand for a poll gives rise to a mandatory or discretionary requirement to comply.”
Earl of Lytton Portrait The Earl of Lytton
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My Lords, I tabled this amendment in order to raise the wider issues of parish polls. In order to do that, and in order to get it underneath the clerical radar in the Public Bill Office, I had to specify that the amendment related to such polls only on matters of parish finance, but the Minister will know very well where I am coming from on this. I recognise that the wider issues may well fall outside the scope of this Bill, but none the less the principle is very important and applies to financial matters also that will clearly fall within the scope of this Bill.

The Committee may well recall that the original draft of what is now the Localism Act included a provision in Clause 53 for the Secretary of State to amend the parish polls regime by regulation. This unfortunately was deleted along with other clauses on referendums during the passage of the Act. In particular it said:

“Regulations under this section may (a) apply or reproduce, with or without modifications, any provision of, or any provision made under, this Chapter; (b) amend, repeal or revoke any enactment (whenever passed or made)”.

It goes on in the next subsection:

“The Secretary of State may make or arrange for the making of payments to parish councils to enable them to meet the additional expenditure they incur as a result of regulations under this section”.

In Committee in another place the Minister’s right honourable friend Andrew Stunell confirmed the situation in debate on Clause 53, saying that this was clearly a problem that needed to be addressed. He said that he wished to modernise the existing regime to make it fit for purpose in the modern world and he intended to work with key partners such as the National Association of Local Councils and the Society of Local Council Clerks. That would have been fine had there been an order-making provision that survived the course of that Bill but it did not.

The situation there remains that Schedule 12 of the Local Government Act 1972 governs the circumstances in which a parish poll may be demanded. That, in short, means that at a parish meeting either the chairman or 10 members or one-third of the electors present can force a parish poll. It is whichever is the less, so it may be a very small number indeed. Once triggered, of course, the process kicks in and the principal authority then holds the poll and the cost is rechargeable by that principal authority to the parish. The potential for making payments to parishes which was lost as part of the Clause 53 issues in the original draft of the Localism Act was an important omission.

Apart from that, the poll must be about a “parish matter”, but “parish matter” unfortunately is not defined in law. There are therefore no mechanisms to prevent vexatious use of this particular provision. Moreover if a poll is demanded and it cannot at that particular stage be shown to be a non-parish matter—sometimes these things are bounced on parish councils—but subsequently may so be shown, the auditor may disallow the expenditure and that probably occurs many months after the event. Furthermore, the poll result is not even legally binding. There are enormous financial consequences and is an enormous potential, as will be apparent, for vexatious pursuit of various hobby-horses.

Action for Communities in Rural England—ACRE—produced an excellent briefing note in 2010 on the process and the outcomes. It referred to a number of case studies and identified some typical cost elements. For instance, it identified ones listed for them by Shropshire Council under the following headings: “Staff charges”, “Publicity” and,

“Hire and fitting up of premises”.

Staff charges related to posts such as presiding officers, poll clerks, counting supervisors and so on. Many examples of parish costs have been produced, some quite recently. According to the briefing:

“Newark Town Council estimated the costs of a recent poll at £3,900 … An estimate of between £3,000 and £4,000 to cover costs was submitted to Whitby Town Council by their local authority for a poll that eventually resulted in a turnout of 5.27% of electors … Haydon Wick Parish Council with 14,000 electors estimated the cost of a contested election (roughly equivalent to the costs of a poll) at £4,500”—

it was extrapolating the information from something similar—

“South Marston Parish Council, with 600 electors, estimates the cost of a poll at £1,500 which represents around 8% of their annual income”.

Those sorts of figures tend to be fairly typical.

I have further information that reveals the same sort of thing: sadly, a very similar pattern of voter disenchantment or a complete lack of results. Parish polls were triggered in several town councils—Hythe, Sandgate and Folkestone—in 2010 on a district council parking strategy. For Hythe Town Council, with an electorate of 8,000, a population of 14,000 and a precept of £300,000, the cost was around £9,000. For Folkestone Town Council it was £20,000—it has an electorate of 15,000, a population of 50,000 and a precept of around £500,000.

These are not insignificant sums of money. If they happened only sporadically and on rare occasions, that might not matter. However, it begins to look as if this is the route of preference for certain people to try to get their particular view across. Never mind the fact that there may have been a poll in a normal election process and that a council, having been given a mandate, should be given a fair crack of the whip to try to get on with and deliver some of its policies. The list goes on and I will provide it to the Minister because it is important that some of this is known. The point I am making here is that clearly the problem has not gone away.

The questions I need to ask are as follows. First, is the Minister able to suggest anything in the context of this Bill? As I said earlier, clearly the principle applies to parish finance matters and is a legitimate subject for consideration even though the concept of parish polls applies to a much wider category of activity.

Secondly, and probably most importantly, do the Government remain committed to the comments raised by Andrew Stunnell in Committee in another place? If so, the National Association of Local Councils and the Society of Local Council Clerks would appreciate further dialogue.

Thirdly, on the wider issues to which parish polls can be applied, I appreciate that I am taking this outside the scope of the Bill but it is important to ask whether we can look forward to the measures of which the Minister spoke so warmly in Committee in another place being introduced. If they can be, could it please be fairly soon?

That is all I have to say on these things. As we know from the announcement today, we all now have to do as much, if not more, with a great deal less. The question of parish polls is a drain on community endeavour. It is a drain on financial resources. It is a drain on human volunteer resources. It seems that something needs to be addressed here for good order at the parish council level. I beg to move.

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Lord Wallace of Saltaire Portrait Lord Wallace of Saltaire
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My Lords, I was unaware of the parish poll dimension. I say from the outset that, although we are very much on the outer edges of the scope of the Bill, the noble Earl’s points are clearly of importance for the modernisation of parish polls, which has rather fallen through the net. The questions of the threshold for triggering the poll and what a legitimate subject for a poll should be are issues to which we would be happy to give further consideration. We would happy to meet the noble Earl to discuss this further. I am rapidly turning over in my mind the question of how one deals with that. Even though this is a relatively limited area, it might be the sort of thing that is appropriate for a Private Member’s Bill in a future Session, which might be given a fair wind. It is a relatively self-contained set of issues.

We are aware of the issue of whether one could institute postal or proxy votes. Certainly, we should be lengthening the time during which a vote could be cast and modifying regulations about the threshold for triggering a parish poll. All those issues really need to be considered.

I understand that the provisions of the regulations limit the content of polls to matters which have been considered by the parish meeting, which means that the person chairing a parish meeting could rule out of order any attempt to discuss matters which are not parish affairs and so prevent parish polls on, for example, EU referendums, or whatever it may be. However, we are all conscious that different parishes and local communities are often dominated by different small groups. This is one of the problems we have with getting back to community self-government. I am often conscious that I am extremely lucky to live in the community of Saltaire, which has far too many people who are highly educated. We are overstuffed with activists, and there are other areas around Bradford which are not so blessed with local activists willing to turn up to lengthy committee meetings in the evenings and take part in local community activities. With that assurance and that offer to talk further on this small but important issue, I hope that the noble Lord will feel able to withdraw his amendment.

Earl of Lytton Portrait The Earl of Lytton
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My Lords, it was not my intention to press the amendment, particularly as we are in Grand Committee, but I am extremely grateful to the Minister for his comments and for his offer at any rate to look into the matter further and have a further discussion. It is a narrow but important issue, and it will be even more important if what I might call the fruits of the localism agenda in terms of expanding the number of organisations that operate at this level—perhaps not in name but effectively as parish and town councils—are set to increase. I hope that it will become the model of preference at community level. The matter is not without ongoing consequence and I will certainly forward to the Minister some of my paperwork. That will do for this evening and I beg leave to withdraw the amendment.

Amendment 19C withdrawn.