City of Wakefield (Mayoral Referendum) Order 2012

Lord Rooker Excerpts

Tuesday 17th January 2012 Grand Committee

[Lord Grocott]

My Lords, I cannot resist making just one general point before I get on to the specifics about my fundamental objection to the directly elected mayor system. I see it as an import from a different political culture. In essence, it is a presidential arrangement. All levels of our democracy in our country have embraced the parliamentary system whereby executive heads emerge from the elected body. I think that is infinitely preferable to the presidential system. The Minister’s examples were notably from abroad, with the exception of London, and bringing in this system whereby elected councillors have no direct say on who the city’s leader should be is—I cannot find a less pompous way of putting this—alien to our political culture, and I do not think there is too much wrong with our political culture. In my view, it has inevitably—certainly in the United States and here—led to mayors being elected who simply do not arrive via the tried-and-tested system.

I thought that the evidence put forward for extending this system in this dramatic way was pretty thin. The explanatory document claims that,

“directly elected mayors … enhance their city’s prestige and maximise the potential for local economic growth”.

Let us not go to Barcelona or anywhere else. We have had this system in Britain for a number of years. Where is the evidence that those lucky cities and towns that have directly elected mayors have seen the prestige of their areas enhanced in comparison with those that have not had the benefit of directly elected mayors and have seen economic growth? In short, has London been demonstrably much better governed, to justify all this additional expense, than has, let us say, Newcastle, Manchester or Birmingham? If there is any evidence, I would love to see it, but I am not aware of it.

I move to the specifics of the orders that we are now looking at. One has already been mentioned by my noble friend Lady Farrington. I am afraid this is more of a rhetorical question than one I expect the Minister to be able to answer because it is unanswerable. How on earth can you have an order that states:

“The authority must, on 3rd May 2012, hold a referendum”—

I would add, in brackets, “whether you want to or not”—with the Government’s alleged commitment to localism? Why the compulsion? Why not leave it to the local authority to make up its own mind? I do not know the answer to that one. I do not think it will do to suggest, as the Minister did, that somehow this is an opportunity for local people to decide and that the Government are neutral, at least to the extent that the local people can make their own decisions, because is it just an accident that the only places where local citizens will be able to decide on their governance are places where they do not have an elected mayor at the moment? What about all those local authorities that have an elected mayor? Why not ask them whether, on the basis of the past 10 years, it is a good way of spending public money? I am delighted to be able to report that, as the Committee will know, in the one area where people have been given that choice, namely the splendid city of Stoke-on-Trent with the outstanding Stoke City Football Club, the public were asked, “Do you want to continue with your elected mayoral system?” The answer was a pretty resounding, “No, we don’t, thank you very much”.

[Lord Rooker]

We need to hear the full story on Stoke-on-Trent. The structure between the mayor and the council was not replicated anywhere else in the country; it was unique. The Stoke system was almost designed to fail and indeed did fail, but it is not the same system as for the other elected mayors.

[Lord Grocott]

As my noble friend has argued for a referendum, I simply say to him: let the people in these other cities decide whether they want to continue with their mayoral system. They have had long enough to test it out, and he may be right that it is only in Stoke that they would say, “No, thank you very much”. If we are to have referendums in places that do not have mayors—I would rather we did not have any at all—then let us have them in places where they do.

I have a couple of questions about the cost. The only statistic that I have is from House of Commons Hansard of 20 December, where the Government said that,

“the cost of referendums for elected mayors will be £2.5 million”.—[Official Report, Commons, 20/12/11; 1187W.],

That is an average of about a quarter of a million pounds per referendum. Frankly, I am not very interested in who pays for it; all I know is that we will. I suppose it would be very unfair to put it all on the local authority, but the blunt truth is that those of us who do not live in any of these cities—I am one of them—will be paying for them to have a referendum, which I certainly do not want. We will find soon enough whether the public want that. Can the Minister confirm whether those figures are accurate?

I also note that paragraph 10 of the Explanatory Memorandum says:

“A Regulatory Impact Assessment has not been prepared for these instruments as they have no impact on business, charities or voluntary bodies and the cost of conducting the referendums across the 11 cities is less than £5 million”.

I do not know how these impact assessments are worked out these days, but that may be the cost of the referendum. Of course, if the referendum results in a yes, then the cost of implementing this system in 11 cities will be massively in excess of £5 million. In effect, through these orders we are setting a train in motion that will cost an awful lot of money. I would like the Minister to tell us who will pay for the reorganisation costs in the event of there being a yes result of a referendum. I would also like to know the estimate that the Government are making before we go on this journey about the cost for each of the local authorities because most of them can ill afford any unnecessary expenditure at the moment.

I would also like to ask the Minister about the responsibility for implementing the new system. The order is loose enough, as it stands at the moment. Article 4, under the title,

“Action to be taken after referendum”,

states:

“If the result of the referendum held by virtue of this Order is to approve a change to a mayor and cabinet executive, the authority must implement that change”.

It goes on to say that if a local authority does not do that, the Secretary of State will. Following the question asked by my noble friend Lord Beecham earlier, if there is a decision to make the change, I would like to know the timescale within which the implementation of that change must take place whether it is done by the local authority or by the Secretary of State?

I very much regret that these orders have come forward. I know this was an idea dreamt up by some policy expert in some recess of the previous Labour Administration. I did my best to stop it happening then, but without success, and this is my second attempt. I do it with more confidence now as I know—I will check the figures because they are around somewhere—that there was no evidence of any great enthusiasm for this system when local areas had the chance of holding referendums under the legislation that the previous Government brought in. There were very low turnouts, by and large. Some were lower than normal for local government elections. I know of no great evidence that these places have been a riotous success. Mercifully, where I live in the West Midlands, we do not have a directly elected mayor but, like the rest of us, I spend lots of time in London, and I am massively unimpressed with the directly elected mayoral system. I do not find it a wonderfully impressive and exciting operation, and I do not know why we should proceed with this without the evidence to justify it. I am, to put it mildly, unhappy with these orders.