Oral Answers to Questions Debate

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Oral Answers to Questions

John Denham Excerpts
Thursday 15th July 2010

(14 years, 5 months ago)

Commons Chamber
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Robert Neill Portrait Robert Neill
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The most valuable assistance that we have given is ensuring an extension of the business rate relief. Moreover, we are assisting small businesses in particular and we have increased the threshold for empty property relief this year to £18,000—all of which the previous Government signally failed to do.

John Denham Portrait Mr John Denham (Southampton, Itchen) (Lab)
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The Government often tell us that hard choices must be made in these difficult economic times. May I ask the Minister about port rates? The Labour Government recognised the difficult position of ports businesses that were faced with backdated rates by giving them eight years to pay. In those circumstances, how does the Minister justify spending hundreds of millions of pounds entirely wiping out the legal rates of those businesses, when other public services for which he is responsible are suffering? Is not that a pretty disgraceful piece of pork-barrelling, given that the measure is aimed at what were Tory target seats in the last general election? People up and down the country who face their services being cut will ask why that is a priority in these difficult times.

Robert Neill Portrait Robert Neill
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I think it is a better use of money than £2 million for the furniture in Eland House, if I might say so. With respect, the right hon. Gentleman neglects the fact that his Government’s policy was roundly condemned by the cross-party Select Committee on Communities and Local Government as being wholly inadequate, and condemned by a number of his hon. Friends who represented port constituencies.

The right hon. Gentleman’s policy neglected to reflect the reality that a discount for eight years did not remove the book liability that fell on ports businesses. That drove a number of them into balance-sheet insolvency, which in turn created cash-flow difficulties with their banks and actually put some out of business. The Government are keeping jobs in port constituencies and communities, and I am very proud that we are doing so.

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Lord Stunell Portrait Andrew Stunell
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I thank my hon. Friend, who I know has done a lot of work in looking at the administrative costs of the process. One of the things that we will be examining closely is how those costs can be reduced and how local authorities can have more control over the process.

John Denham Portrait Mr John Denham (Southampton, Itchen) (Lab)
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The hon. Member for Burnley (Gordon Birtwistle) raises an important question, but what is the Minister’s answer to the current Lib Dem leader of Burnley council, who has said of this Government’s financial settlement:

“We are a deprived borough but once again we are suffering. I am disappointed and sick of us being kicked by budget cuts in Burnley”?

Is it not the case that the Minister has ensured that it is the poorest and most deprived councils in this country that are suffering the most?

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Lord Pickles Portrait Mr Pickles
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I have always felt that Banbury was indeed at the heart of England. Of course, the local enterprise partnerships will give an opportunity for local authorities, business and academic institutions to coalesce around a genuine economic area. We will ensure that they have an opportunity to bring prosperity to that very fine town.

John Denham Portrait Mr John Denham (Southampton, Itchen) (Lab)
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I start by thanking the Secretary of State for his recognition of the two firefighters, Alan Bannon and James Shears, who died fighting the fire in Shirley Towers. Alan Bannon was a constituent of mine, as the Secretary of State knows, and I am grateful to the fire Minister, the Under-Secretary of State for Communities and Local Government, the hon. Member for Bromley and Chislehurst (Robert Neill), for attending the memorial service yesterday. It was appreciated by everybody connected with the Hampshire fire and rescue service.

On Tuesday this week, the Local Government Association showed that the arbitrary and incompetent decision to suspend the Building Schools for the Future programme has cost local council tax payers in England £162 million in spending on much-needed school projects which will not now go ahead. What efforts did the Secretary of State make to persuade the Secretary of State for Education not to cut that programme? How does he intend to stand up for local councils and prevent his Department becoming the ministry of waste—wasted council tax payers’ money on suspended schools projects, wasted council tax payers’ money as a result of the cuts that he has brought in this year, and wasted money on the opportunity to build new homes?

Lord Pickles Portrait Mr Pickles
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I hardly think that the former Secretary of State is in a position to talk about waste. We have already understood that he has virtually become the patron saint of internal decorators within the Department; £2 million was spent on furnishing at a time when councils were crying out for help. I did indeed speak to my right hon. Friend the Secretary of State for Education, and I was shocked to discover the amount of waste that was within that programme. I was shocked to discover that the achievement of that programme seemed to have made a single consultant a millionaire. Labour Members seemed quite happy to waste other people’s money, but I assure them that this coalition Government are about saving money and are on the side of local councils.