Localism Bill Debate

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Lord McKenzie of Luton

Main Page: Lord McKenzie of Luton (Labour - Life peer)
Thursday 7th July 2011

(13 years, 4 months ago)

Lords Chamber
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Lord Gardiner of Kimble Portrait Lord Gardiner of Kimble
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My Lords, I will speak to Amendment 144A in my name and that of my noble friend Lord Cathcart. The intention is to set out explicitly some types of disposals of land that should be exempted from the moratorium rules and that would therefore not require notification to the local authority. I am very aware of many discussions that noble Lords have had about seeking a positive result from what we do. I hope that the amendment will produce some harmony, because there are legitimate concerns from owners of private property.

New paragraph (a) proposed in Amendment 144A would exempt from the moratorium disposal of a listed asset where the asset forms part of a larger site that is held as a single legal estate. The intention is to avoid delaying the sale of a larger piece of land or an estate if one small part of it has been listed as an asset of community value. New paragraph (b) would exempt other types of disposals of land, such as bona fide gifts following a philanthropic donation, transfers between members of the same family, made as either a gift or a sale, land passed on by inheritance, transfers between associated companies or companies in the same group, and transfers between trustees or partners in a firm. Indeed, there may be other exemptions that other noble Lords are more aware of. The intention of this amendment is to avoid any disruption to internal transfers between business partners and trustees. It would not interfere with the rights of landowners to pass their land on to future generations.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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I start by reiterating that I hope it is clear that we on these Benches very much want to see the Government achieve their aspirations in these provisions. However, Amendment 144A in particular illustrates the danger we are getting into of making this very complicated and bureaucratic. For example, there is a proposition that transfers between companies in the same group should not be a relevant disposal. Let us reflect on how you would cast that provision. There are plenty of differing definitions of groups of companies around. If we think one step beyond that, what happens if you sell the shares of a company that owns the asset, but not the asset itself? If that company were not only to have the asset but another asset, for example, the group of pubs mentioned by the noble Lord, Lord Hodgson, where does that leave you? We ought to be focusing on something that is deliverable, even if at the edges it is a bit rough and not technically watertight. It offends me as an accountant to suggest that, but this group of amendments and the issues that were raised in respect of the previous amendment illustrate the complexity that we are in danger of building into this provision which could undermine it completely.

Earl of Lytton Portrait The Earl of Lytton
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What the noble Lord, Lord McKenzie, has just said highlights the fact that we are trying to talk about exclusions from something that would cover a potentially vast range of circumstances. I support the thrust of what he said. We need to reverse that so that we catch the transactions that need to be caught because in the global family and order of property transactions that could potentially be caught, the class of transaction that we are trying to catch is very small. The problem is the lack of definition, and therefore the clause has to be all-encompassing, and it sweeps up all these other things that other noble Lords have referred to. I think of situations where there might be transfers of assets one way or another between parish and rural community councils or between community groups of whatever form and structure. What about transfers of assets between various tiers of authorities? Are all these to be caught up? It seems to me that we are almost at the point of needing a category of owner that gets caught by the Bill, but I am not going to suggest that because I think there might be a simpler way of dealing with it, as the noble Lord, Lord McKenzie, suggested. However, there is a relatively narrow class of circumstances, and it all boils down to the fact that we have these open-ended definitions. I plead with the Minister to find some way of rendering this down so that we can get to the nub of the issue and not have a one-line provision and then 1,000 lines of exclusions and caveats and things to try to exclude all the bits that have got caught up and should not be in there in the first place.

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Baroness Byford Portrait Baroness Byford
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My Lords, I should like to add a few comments to those made by the noble Lord, Lord Greaves, in moving his amendment. All those who have spoken are very conscious of the fact that planning in the future must surely be a balance between social, economic and environmental needs. Subsection (4) of Amendment 147FD in the name of the noble Lord, Lord Greaves, clearly defines that. However, I have a slight problem with what to include and not include in the list. It is always the same whenever there is a list. Certainly, I have no difficulty with,

“social, economic and environmental needs of the present without compromising the ability of future generations to meet their own needs”.

That is something to which I hope the Minister will, when he responds, say, “Yes, this is something that we feel is extremely key”. I have a slight difficulty as we go through paragraphs (a), (b), (c), (d) and (e) because it is quite difficult to strike a balance between them. I suspect that the noble Lord, Lord Greaves, might well feel, for example, that environmental limits should be given a higher priority than the economic side. I think that the two go together and you cannot define them separately. I have difficulty with paragraph (b). We would all like to see,

“ensuring a … healthy and just society”,

included but most of us know that the society we live in is not fair for all as it is. Therefore, I have concerns about putting that in the Bill.

Turning to paragraph (e), “using sound science responsibly”, I would much rather have seen something such as “using our resources better”. We have such wonderful new technologies available to us now. We can make better use of water and can use better means of energy-saving. In future, we shall see many more of those technologies coming on-stream.

I do not wish to be a killjoy on the amendment. I support the thrust behind it. However, as it stands, it raises certain questions. Lists have never been one of my great loves. One often puts things in that one should not, or leaves out things that ought to be included. However, I very much support the theme behind subsection (4), which I started by mentioning—social, economic and environmental needs.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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My Lords, I have put my name to these amendments and am happy to support them. The noble Lord, Lord Greaves, has set out the case in his usual exemplary manner. My noble friend Lady Andrews said that it was right that we should have a positive definition, which this is. She referred to the need possibly to expand it to include cultural needs. We have the opportunity to debate that in relation to other amendments in the not too distant future.

The noble Baroness, Lady Byford, challenged the definition and the listing of some of the principles. However, this is not a new definition, but one that has been around, and internationally accepted, for some time. Those principles were enshrined in the 2005 sustainability principles that were set out by the previous Government and have, I believe, been accepted all round. My noble friend Lord Berkeley referred to a fear of what has been accepted to date being diluted. The noble Baroness may also have strayed into that territory. The noble Lord, Lord Cameron, said that there was no conflict between business and the environment. The definition and proposition are neither anti-business nor anti-development.

There are imperatives for having this definition in the Bill. The planning proposals in the Bill represent a major upheaval for the current system. Amid all the change, it is important to anchor a focus in the purpose of planning. There is concern among some that, despite the rhetoric and the expressed ambition to be the greenest Government ever, that ambition is being sidelined. With a new governance framework involving neighbourhood planning, the achievement of sustainable development must be at the heart of the local decision-making process.

This issue is brought into sharper focus because there are apparently other versions of the draft national planning policy framework. Like other noble Lords, including the noble Lord, Lord Jenkin, I ask when we shall see the official version, which will clearly help our deliberations through the myriad amendments on planning. There are concerns that the drafts vary from the previously adopted and accepted meaning enshrined in the 2005 UK sustainable development strategy. We have also seen, along the way, the demise of the Sustainable Development Commission on the basis that its funding will go towards mainstreaming sustainability.

We took it from earlier responses by the Minister, Lady Hanham, at Second Reading that we were in accord with the definition of sustainable development and the five principles set out in the amendment. I think it follows from that that we should be in accord with the “purpose of planning” definition, but perhaps the Minister will take this opportunity to reconfirm that on the record. Of course, we must await the final, official draft of the NPPF, but perhaps the Minister will also say whether he considers the current version of the NPPF to include an identical definition of sustainable development, the purpose of planning and the principles set down in this amendment. It is important for us to be clear whether our discussion with the Government—and a possible disagreement with the Government on this—is on the substance of the definition or the principles, or on the fact that it is in the Bill, in primary legislation.

These issues have been brought into focus by a number of matters which lead to concerns that attempts are under way to redefine sustainable development. For example, the draft presumption in favour of sustainable development—my noble friend Lady Andrews referred to this—has a definition that states:

“stimulating economic growth and tackling the deficit, maximising wellbeing and protecting our environment without negatively impacting on the ability of future generations to do the same”.

Such statements give rise to fears that overwhelming weight might be given to the need to support economic recovery and to incentivise development that will facilitate this.

Of course tackling the deficit is an issue of huge importance, although—this is probably not the occasion for the debate—we believe that the Government’s approach is dealing with it too far and too fast. However, economic growth is only one of many objectives that the planning system can and is meant to deliver. On sustainable development duties, as the noble Lord, Lord Greaves, said, there are existing duties under the Planning and Compulsory Purchase Act 2004 and the Planning Act 2008 on local planning authorities and the Secretary of State to prepare planning policy with the objective of contributing to the achievement of sustainable development. However, in order to properly achieve sustainable development, the statutory duty, as the noble Lord said, should be more positive and proactive. That is why we support the amendment in this form.

The noble Lord, Lord Jenkin, was not particularly enamoured of this form of amendment. He made reference to the default position of LDVs, where there is not a full suite of plans at local level in place. One issue that seems to be emerging is that, if the new NPPF is written in a high-level general way and is therefore not specific around special issues, and if LDVs are not in place, then the presumption and the default position could open up opportunities for development, which would not be the case if, in fact, that local development framework was in place. If I have misunderstood the noble Lord, I apologise, but I think that he almost equated sustainability with nimbyism. I do not believe that that is right.

As other noble Lords have said, this is an extremely important start to our deliberations on planning. It is fundamental, we believe, to get that definition clear, agreed and in the Bill, because that will help drive our deliberations on a whole raft of stuff, the tiers of planning, that flow from the Government’s effectively new system.

Lord Lucas Portrait Lord Lucas
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My Lords, the noble Lord, Lord McKenzie of Luton, contrasted two definitions of sustainability—theirs and ours, as it were. May I say to my noble friend how much I prefer ours, which is in plain, understandable English? One can understand what its implications are for any particular project, while the definition in these amendments is largely phooey.

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Amendments 147FD to 147FF not moved.
Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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My Lords, I was not sure that we had formally debated Amendment 147FF, which is in a separate group—although I think the noble Lord spoke to it.

Lord Greaves Portrait Lord Greaves
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The noble Lord is in the position that I was in on Tuesday of having an old list. In the interests of getting some brownie points with the business managers and the Whips, I grouped it with the other amendments.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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Perhaps I had the 11 am, rather than the 11.10, list this morning.

Amendment 147FFA

Moved by
147FFA: Before Clause 94, insert the following new Clause—
“National Planning Policy Framework
(1) The Secretary of State must issue, designate and update a National Planning Policy Framework, to establish policies to achieve sustainable development.
(2) Such policies should relate to mitigation of, and adaption to, climate change.
(3) Before designating a document as the National Planning Policy Framework for the purposes of this Act or before amending any such document, the Secretary of State must carry out an appraisal of the sustainability of the policy set out in the document or the amendment to it.
(4) A document may be designated as the National Planning Policy Framework for the purposes of this Act only if consultation, publicity and parliamentary requirements set out by the Secretary of State, have been complied with.
(5) The requirements in subsection (4) above apply to any amendments to the National Planning Policy Framework.”
Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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My Lords, this amendment relates to the national planning policy framework, which we have just discussed and will doubtless feature in each day of our considerations. The amendment requires the Secretary of State to,

“issue, designate and update a National Planning Policy Framework”

that must set out,

“policies to achieve sustainable development”

and focus on mitigation of climate change. Before designating a document as an NPPF, the amendment requires there to be an appraisal of sustainability and for the proposal to be the subject of consultation, dissemination and an appropriate parliamentary process. It is not, at this stage, specific about what that process might actually be.

I contend that the amendment goes very much with the grain of government and with what the Minister said earlier. The coalition agreement stated:

“We will publish and present to Parliament a simple and consolidated national planning … framework covering all forms of development and setting out national economic, environmental and social priorities”.

If the commitment can be enshrined in the coalition agreement, why can it not be in the Bill? This does not call for the NPPF itself to be part of the Bill, just the requirement to produce one. We could have asked for—and we may do so on Report—an obligation to review and update on a regular basis.

On 13 September 2010, the CLG Select Committee inquiry into the work of the department asked the Minister how the NPPF is to be produced. He said:

“We are committed to bringing together and simplifying a set of planning documents that has become like the tax code, it has grown over time and we want to step back and distil it to its essential principles. In so doing, and I do not want to pre-empt the announcement we will make, but I do not want that to be done in the way that these things have been done before, behind closed doors, drafted by people in secret and then just a puff of white smoke emerges and there it is. I want this to be collaborative. There are lots of people who have a great interest in the financial planning framework. Whether town planners, whether people in local government, whether environmental groups and I want them to participate in that re-drafting in a way that I do not think has been extended to them before. That is the direction that we are going, but obviously I need to make a formal announcement to the House in due course”.

He was asked:

“Will Parliament be able to contribute?”.

He said yes. When pressed again about whether it was the committee or Parliament, either or both, the Minister, Greg Clark, said, “Both”.

It is unfortunate that we have to discuss the issue without the benefit of the official draft, in circumstances where what purports to be an unofficial draft seems to be in wide circulation, already commented on by various organisations and the press. The Minister has told us when an official version will be available—very shortly, was the expression that I believe he used.

As we made clear previously, it is very difficult to debate some planning issues effectively without that. There has already been pre-consultation and a draft of the NPPF produced by the practitioners’ group, and there is now to be a full public consultation, so the Government are delivering on aspects of the promises that they made last September, but perhaps the Minister can confirm how they will complete that promise and what will be the role of Parliament, particularly the role of the House of Lords, as well as the House of Commons. The role of Parliament is crucial, given the fundamental significance of the NPPF, as the Minister himself outlined. It represents, according to Mr Clark, part of a radical overhaul of planning policy cutting out thousands of unnecessary central instructions.

A role for Parliament would be especially important if there is anything in some of the fears expressed by certain groups on the basis of the unofficial draft. They say, on the one hand, that the NPPF is written at a high level without much detail. It is therefore difficult to gauge compliance of local plans with the NPPF. Where many local planning authorities have yet to adopt local plans, the bulk of planning applications will be assessed against the NPPF. They characterise that as a potential planning free-for-all. It remains to be seen whether that is the case, but it remains imperative that Parliament has a say in the outcome. I beg to move.

Lord Berkeley Portrait Lord Berkeley
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My Lords, my Amendment 166VZC is grouped, and I of course support my noble friend Lord McKenzie's amendment. My amendment is designed to be a helpful contribution to Ministers. As we have not seen the NPPF, it is a suggestion of what it might contain.

I declare an interest as chairman of the Rail Freight Group. There is not much about rail freight in here, but there might be a bit. The key point is in subsection (2) of the amendment, which tries to set out in more detail how the activities and development of other parts of local authorities, regional authorities, the Government and other people could be made more sustainable if they took into account the cost of environmental issues such as transport. The obvious example is when, two years ago, a lot of law courts were closed in different parts of the country, which meant that people had to travel for long distances and sometimes even stay overnight or pay for taxis because there was no public transport. Of course, the assessment of the benefits of closing law courts did not include anything to do with transport, and one could make the same comment about the closure of hospitals. Therefore, the amendment is intended to try to link planning with transport and to look at the sustainable elements involved.

Transport routes are fundamental in the location of warehouses and distribution sites so as to reduce distances travelled and traffic congestion on busy roads. I have included something about former railway lines. I know that the Government are not yet interested in reopening former railway lines, and I can understand why in the present situation, but a lot of people will be looking at this. I know that it is planned to locate High Speed 2 on some disused railway lines, but there are many other lines in this country which could be used not for railways as such but for cycle ways and other transport routes to get people off congested roads. However, it is very difficult to reinstate corridors for those types of purposes if bits of the land are sold off. Reinstatement costs an enormous amount.

I mention in paragraph (d) under my proposed new Clause 2 in the amendment the need for travel to be minimised and, in paragraph (e), sustainable transport modes for the movement of people and freight. However, it is also useful to talk about, as I do in paragraph (f), public transport, pedestrians, cyclists and disabled people. I believe that in future all these things will have a much greater impact if we are to meet the famous 80 per cent reduction in carbon. That is the Government’s target and I think we all support it but achieving it is going to be pretty challenging. Lastly, paragraph (g) would remove the need to travel so far and would maximise sustainable modes of transport. I do not know whether those points will be in the final version of the NPPF but, if they are not, perhaps the Minister could consider making a few last-minute amendments and including them.

We have talked about the parliamentary requirements, and there is obviously a need for consultation.

Proposed new Clause 5 in the amendment makes yet another attempt at achieving sustainable development. I do not think that I need to go through it with your Lordships now because noble Lords will all have read the NPPF and we all have ideas about what it should contain. However, it certainly demonstrates to me the need to have something like this in the Bill and to have more detail somewhere in the NPPF, as I have tried to do in the amendment.

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Lord Taylor of Holbeach Portrait Lord Taylor of Holbeach
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I cannot give an answer to the noble Baroness at this moment but I can assure her that when the copy of the NPPF is sent, I will accompany it with a letter giving the arrangements for the guidance to go with it. I hope that that will help the noble Baroness. In the mean time, I hope that this has been a useful debate. It has rather reinforced the debate we had earlier and I hope that the noble Lord will feel able to withdraw his amendment.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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My Lords, I am most grateful to the Minister for his reply and for the contributions from other noble Lords. I am not a veteran of past debates and discussions around planning and I am not sure yet whether that is a disadvantage or an advantage. Perhaps I should assess the matter at the end of proceedings.

The noble Lord, Lord Reay, is right. There is no point in debating the document if we do not have it—so the sooner we get it, the better. I would not agree with him on climate change but it looks as though that will be a subject for debate as our deliberations proceed. As the noble Lord, Lord Greaves, said, this is a very important document. I am a little unclear from the Minister whether he supports the principle that there should be in the Bill an obligation to produce an NPPF and some parliamentary process attached to that. I am not asking for the content of it but whether he supports the principle. I may have missed it when the Minister was responding, but I am not sure that he dealt with that point. I understand that, as a parliamentary process, a Select Committee might be a more productive route than a few days on the Floor of this House, although that can be good fun as well. I should be interested in the Minister’s view on that.

I apologise to my noble friend Lord Berkeley. I had not realised that his amendment had been grouped with this one. As the Minister said, it is, perhaps, more prescriptive. My understanding was that national policy statements sit alongside the NPPF, and I think that is what the Minister has confirmed. I am happy to withdraw the amendment but before I do so, can the Minister say what the problem is with having a requirement in the Bill to produce an NPPF? That requirement is not there. What is it that obliges a Government to keep it up to date?

Lord Taylor of Holbeach Portrait Lord Taylor of Holbeach
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The noble Lord is quite right: there is no reference to the NPPF in the Bill. The Government have no intention at this stage to include it in the Bill, but we will listen to any argument that the noble Lord puts forward and consider the matter. However, it is not the Government’s intention to produce an amendment to put a reference to the NPPF in the Bill.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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Will the Minister just say why? I know it is not there at the moment and that he will not accept this amendment, but why do the Government not wish to put that in the Bill?

Lord Taylor of Holbeach Portrait Lord Taylor of Holbeach
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I am answering the question directly. I think the noble Lord wants to know what the Government’s position is. The rationale behind it, I expect—I am only deducing this—is that the Government want flexibility in the mechanisms that they use in national policy frameworks in future and in any replacement device that they might consider necessary. Not enshrining the NPPF in primary legislation makes it easier to change the arrangements. None the less, there is determination at the moment to use the NPPF as the main device. I have some advice on this matter which may help. The law already requires a local planning authority, when making plans, to have regard to policies and guidance issued by the Secretary of State. As we know, the NPPF is a replacement for that guidance and advice. Therefore, this applies to the NPPF. The NPPF’s authority derives not from this Bill but from the Planning and Compulsory Purchase Act and the Town and Country Planning Act. In the absence of an NPPF, the Secretary of State would still be obliged to issue guidance under those Acts. That is where the NPPF fits into the equation.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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My Lords, again, I am grateful to the Minister for that response. As I understand it, he is saying that local planning authorities must have regard to what the Secretary of State issues. The missing link is what requires the Secretary of State to produce the framework. This is an issue to which I should like to return. I beg leave to withdraw the amendment.

Amendment 147FFA withdrawn.
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Lord Greaves Portrait Lord Greaves
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My Lords, I, too, support the thrust of the amendment of the noble Lord, Lord Best. I am concerned that the change-over to the new system will simply result in more delay and more expense for local planning authorities that have struggled to produce their local development frameworks—or local plans, as we may now have to call them.

My Amendment 147H is slightly different. It seeks to tackle part of the same problem, but it looks at the issue from the point of view of the local planning authority rather than from that of the regional strategy. My amendment reads:

“The provisions of this section do not affect the validity of any local development documents or of any policies contained in any local development document whether or not any such policy was adopted in order to be in conformity with a regional strategy or structure plan”—

the old structure plans were incorporated pro tem into the regional strategies, although I do not know how much of them survive. The crucial thing is that, if a local planning authority is taking its core strategy, for example, to an inquiry for examination, the strategy should not be torn apart just because those aspects of it that have been adopted in order to be in conformity with the regional strategy—or regional spatial strategy—would no longer need to be so if the local authority was starting again from scratch. Although the local authority might be able to argue that a policy is good for this reason or that reason, the true reason that a policy has been included might be in order to achieve conformity with the regional strategy. The issue is as simple as that.

Under the old system, the local authority’s approach to the examination could be to say, “It is there because it has to be there,” and that would have been the end of the argument. However, the inspector might now say, “Yes, but we have a new system now, so are you sure that this applies to your area?”. As we know, the imposition of regional policies has not always been in accord with what was desirable in a particular area, such as was the case with the old housing targets. As the noble Baroness, Lady Andrews, will remember, in East Lancashire we fought for a long time with the Government to be allowed planning permission for new housing. Because the housing targets were so low and had all been achieved, we were not allowed to give housing permission for housing that we wanted. That was a total nonsense as a result of the planning system being too prescriptive and too top-down. We were in the opposite position to that of authorities in the south-east, which were arguing against being forced to build too many houses.

However, that has all gone now. I do not know how much the noble Baroness had to do with this, but when I asked a Question in your Lordships’ House, the Answer that I got from her colleague the noble Baroness, Lady Morgan, started a process. It then took a year before what Ministers were saying here and in the Commons filtered down to grass roots, but it actually changed what was happening, and I was very grateful for that. That is very good example of how the old system did not work very well.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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My Lords, briefly, I support Amendment 147FG for the reasons that the noble Lord, Lord Best, has very fully described. Basically, the policies were two sides of the same coin and, if one set of strategies drops off the edge, that will give rise to the possible confusion and legal challenges that have been mentioned.

I also support the amendment of the noble Lord, Lord Greaves. If I understand what he said, his amendment is slightly different, in that it would provide that, where policies from the structure plan are still around, they would be saved. In a sense, that is unlike the situation where the policies do not exist at local level because they disappeared with the regional spatial strategy. I would certainly support the thrust of his amendment as well.