Localism Bill Debate

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Lord Taylor of Holbeach

Main Page: Lord Taylor of Holbeach (Conservative - Life peer)
Wednesday 14th September 2011

(12 years, 9 months ago)

Lords Chamber
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Lord Beecham Portrait Lord Beecham
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Indeed, and I join the noble Lord in congratulating the noble Lord, Lord Filkin, on what he said on that occasion as well as this. A number of issues have been raised today. I particularly note the observations of the noble Lord, Lord Tyler. I am probably alone in this Chamber in being prepared to shed a tear or two for the standards board. It perhaps started off in a rather cumbersome and bureaucratic way, but it did improve its performance over time. Nevertheless we accept that its day is done, and we have to find a suitable replacement for it.

The noble Lord, Lord Tyler, made perfectly legitimate reference to the problem of trivial complaints designed to gag or in some ways punish or inhibit members. That is a perfectly legitimate concern, which can be met within the framework of the local committees that are proposed in the amendments, particularly when they include the involvement of independent members. That is a crucial issue and one which will need to be discussed with Ministers. Those committees offer an assurance of impartiality which might not otherwise arise in the sometimes highly charged atmosphere—not necessarily party-political atmosphere—that can exist within individual councils.

The noble Earl, Lord Lytton, referred in particular to the position of parishes. There is clearly a need to consider the substantial workload generated by complaints within the very large number of parishes that we have. It is sometimes difficult for principal authorities to cope with the volume of issues that arise. I endorse his view that, where the principal authority is to remain responsible, some representation from parishes within that authority would be helpful. That is certainly the practice in Newcastle, as the noble Lord, Lord Shipley, will confirm. We do have parish members on the standards committee. I ought to say that, whatever happens in terms of the legislation, both political parties in Newcastle wish to continue with that committee, which is of course independently chaired. Incidentally, the independent members have written to say that they would very much wish to see an obligation on authorities to maintain those committees. However, I wonder whether it would be possible, in conjunction with the National Association of Local Councils, to which most, but not necessarily all, parish and town councils belong, to look at ways in which that burden might be moderated. For example, if the association in a county area were able to put together a panel drawn from across an area, rather than necessarily drawn from an individual council, which might find it difficult to man and support such a project, that might be an alternative to principal authorities having to undertake that work.

There is also the fundamental issue of what the purpose of this whole procedure is. The Bill puts the situation as effectively criminality or nothing. If there is a criminal offence, as defined by the Bill, then something happens; nothing else comes within the purview of the legislation. The criminality is based, as we have already heard, on a fairly narrow definition of financial interests. That in one sense is too narrow. But in any event there are other issues which are perfectly legitimate issues for public concern—for example, members’ relations with members of the public or staff, or the misuse of council property.

All these, I fear, occur and there needs to be a mechanism whereby complaints and issues of that kind can be dealt with and appropriate sanctions imposed. I concur that that would be better at a local than a national level. I hope, therefore, that we can carry forward those discussions. The noble Lord, Lord Filkin, is absolutely right: if you do not have sanctions, you do not have a mechanism that the public can have any confidence in. The Minister has indicated—I think to all and sundry—that the Government are prepared to move on these issues. That is extremely welcome, and I hope that we can have productive discussions that will lead to a more flexible and perhaps a more locally based system; but one in which the public in particular—whom it is there ultimately to serve—can have confidence. I very much welcome that change of mind and the positive attitude, which characterises Ministers in this House, at least in this department. I look forward very much to hearing the Minister’s reply and his anticipated undertaking to take this away and consider it, so that we might have an opportunity to see the position satisfactorily resolved at Third Reading.

Lord Taylor of Holbeach Portrait Lord Taylor of Holbeach
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My Lords, it is certainly clear that these amendments cover an important aspect of local government governance, and I acknowledge the strength of feeling around the House. It has been a very informative and well informed debate, and I think it has added a very useful stimulus to the discussions which have been well trailed but which I hope will follow as a result of this debate. I have to say that there is considerable common ground between us: we all want a vibrant and the strongest possible local democracy and we all want the highest standards of conduct in local government. The issue—and this is what we are trying to grapple with—is how we achieve that. The abolition of the Standards Board regime is a coalition agreement commitment. Whatever the original intentions behind the establishment of the regime, it has become a heavy-handed and costly vehicle for dealing with complaints, which can, in some cases, be petty, malicious, vexatious or politically motivated. I note that the noble Lord, Lord Bichard, in his very able presentation of his amendments, agrees with this judgment. My noble friend Lord Tyler did so most powerfully.

At the same time, it is evident that many noble Lords have significant concerns that what the measures in the Bill put in its place are too localist and do not deliver the outcome we all want. It is apparent that consideration of these issues will repay any time that we give between us to get it right. There are some difficult issues here, and there is clearly a discussion to be had on where to strike the balance between the local framework we have proposed and the framework proposed in these amendments. I am not going to claim that I have all the answers at this stage. I will not—as I would normally do—respond to many of the detailed points that have been raised, because I think it is perhaps best to deal with those in these discussions, and we should not try to pre-empt what we will say. I can perhaps give a steer as to how the Government are approaching the situation.

I think there is merit in some of the amendments that have been put forward. In particular, I am sympathetic to the proposal in Amendment 175 that there should be an obligation on local authorities to have a code of conduct, and that any such code should have some core mandatory elements to it. If the House is willing to give us space to consider this matter further, I am willing to take it away with a view to discussing it with noble Lords and seeing if we can come up with something suitable ahead of Third Reading.

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Moved by
170: Clause 16, page 22, line 8, leave out “The reference in subsection (2)” and insert “A reference in this Chapter”
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Lord Taylor of Holbeach Portrait Lord Taylor of Holbeach
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My Lords, this group of government amendments is designed to formalise the arrangements for London. Amendments 171 and 172 take on board the representations that have been made to us by the mayor and the Assembly of the Greater London Authority, asking that the standards function be a joint function of the Assembly and mayor. I said in Committee that we would be open to considering that request as we could see the benefit of ensuring that the mayor and the Assembly were given equal roles and responsibility for promoting and maintaining high standards, rather than leaving that function to be discharged by the Assembly alone.

Amendments 176 and 189 allow the Assembly and mayor to delegate functions to a committee or a member of staff. This mirrors the powers that local authorities have to delegate the function to a committee or a member of staff. Amendment 173 defines Joint Committees and Amendment 170 is a technical amendment related to the definition. Amendments 245 to 247 are also technical amendments. I hope that these amendments meet with the approval of the House and I beg to move.

Lord Beecham Portrait Lord Beecham
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My Lords, I do not have an interest to declare in these matters and neither do the Opposition. We are happy to agree with them.

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Moved by
171: Clause 16, page 22, line 44, after “by” insert “the Mayor of London and”
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Moved by
176: Clause 17, page 23, line 33, leave out from “section” to end of line 34 and insert “(Delegation of functions by the Greater London Authority) (delegation of functions by the Greater London Authority)”
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Moved by
180: Clause 18, leave out Clause 18 and insert the following new Clause—
“Register of interests
(1) The monitoring officer of a relevant authority must establish and maintain a register of interests of members and co-opted members of the authority.
(2) Subject to the provisions of this Chapter, it is for a relevant authority to determine what is to be entered in the authority’s register.
(3) Nothing in this Chapter requires an entry to be retained in a relevant authority’s register once the person concerned—
(a) no longer has the interest, or(b) is (otherwise than transitorily on re-election or re-appointment) neither a member nor a co-opted member of the authority.(4) In the case of a relevant authority that is a parish council, references in this Chapter to the authority’s monitoring officer are to the monitoring officer of the parish council’s principal authority.
(5) The monitoring officer of a relevant authority other than a parish council must secure—
(a) that a copy of the authority’s register is available for inspection at a place in the authority’s area at all reasonable hours, and(b) that the register is published on the authority’s website.(6) The monitoring officer of a relevant authority that is a parish council must—
(a) secure that a copy of the parish council’s register is available for inspection at a place in the principal authority’s area at all reasonable hours,(b) secure that the register is published on the principal authority’s website, and(c) provide the parish council with any data it needs to comply with subsection (7).(7) A parish council must, if it has a website, secure that its register is published on its website.
(8) Subsections (5) to (7) are subject to section (Sensitive interests)(2).
(9) In this Chapter “principal authority”, in relation to a parish council, means—
(a) in the case of a parish council for an area in a district that has a district council, that district council,(b) in the case of a parish council for an area in a London borough, the council of that London borough, and(c) in the case of a parish council for any other area, the county council for the county that includes that area.(10) In this Chapter “register”, in relation to a relevant authority, means its register under subsection (1).”
Lord Taylor of Holbeach Portrait Lord Taylor of Holbeach
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My Lords, we have tabled this group of amendments following consideration of these clauses in the light of points raised in Committee. We have made amendments to the register of interests provisions in order to ensure that the best elements of the pre-Standards Board regime are incorporated into the new system that will replace it. We have taken the decision to focus on pecuniary interests for the new regime for the declaration and registering of interests. This ensures that real concerns about ensuring that councillors cannot use their position for financial advantage are addressed and we do not recreate the current system, where petty complaints are rife and councillors are hauled over the coals for inconsequential matters.

It is right that these provisions should be about dealing with situations where there is a serious risk of a member seeking personal gain or acting corruptly. In such cases, the criminal law should be engaged. We are therefore ensuring that a councillor can be fined up to £5,000 and disqualified from office for up to five years where such criminal activity is found.

We have also taken the opportunity to tighten up the wording in these provisions that was originally included to ensure that councillors who are simply forgetful in the registering of their interests are not criminalised. This clarification ensures that a failure to declare or register pecuniary interests, or a councillor voting on a matter where he or she has a pecuniary interest, will be a criminal offence only where the councillor does not have a reasonable excuse or where the councillor deliberately or recklessly provides information that he knows to be false or misleading. To improve transparency, and so that noble Lords can be clear about how we intend the system to work, we have also moved the detail of the interest requirements and criminal offences from secondary legislation to the Bill. Noble Lords will have noted my previous comments about these matters. With the prospect of our decisions ahead, I beg to move the amendment.

Lord Filkin Portrait Lord Filkin
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My Lords, I would prefer it slightly if these amendments were not moved formally so that they could be on the table as part of our discussions. Nevertheless, we understand that the noble Lord, Lord Taylor, wishes to do so and to get them into the Bill, while recognising that all these things are issues that we may wish to discuss and explore further and, if we can reach agreement, come back to. Even if we cannot reach agreement, we may come back to them by the usual processes that we know of. Having said that, I do not intend to move against these amendments tonight. I shall use the opportunity, as part of the process of probing on new amendments—we are almost in Committee—to posit several questions to the Minister. They are not for response now—it is too late and I would much prefer a considered response—but perhaps the relevant Minister could write to me afterwards.

As has been said, the criminal offence is serious and the defects, as we see them, have been pointed out succinctly by the noble Lord, Lord Bichard. We could amplify those if necessary. It is unclear to us what sanctions are available beyond the criminal offence. If there is to be a code—we are now moving towards a consensus on that—there clearly have to be meaningful sanctions if it is to be effective. As drafted, the Bill seems vague about what councillors can do. Under the current system, they can suspend members for serious misbehaviour. The Bill currently simply says that councils may impose sanctions as they see fit. Does that mean that they can suspend members or even disqualify them, or can they merely censure them?

Previously, the Bill said that the Secretary of State would make regulations about available sanctions and would specifically exclude suspension and disqualification as options. That was extremely surprising for many of us. However, that regulation-making power has now disappeared from the Bill. Does that mean that the Government now think that suspension and disqualification can be imposed locally if a council chooses to do as it sees fit? When the Minister writes to me, will he explain what councils can and should do as proposed by the Bill in its current form, albeit informed by what he thinks in light of our debate? If a council can merely censure somebody for serious misconduct, clearly many of us would feel that that would not do. For example, putting persistent, excessive and improper pressure on officers behind the scenes to ensure that someone gets their own way occasionally occurs. Officers are there to have a degree of pressure put on them, as I know, having been one for many years. Clearly that is not caught at all by the new criminal sanction. Is there to be no sanction at all for that?

Without more ado, let me leave those questions about what the Government’s position on the appropriate sanctions and the sanctions currently in the Bill has been and will be. Those of us who have studied the Bill are completely at a loss to understand the current position. We have views on what it should be but let us start from what the current position is. We can then discuss what it should be.

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Lord Beecham Portrait Lord Beecham
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My Lords, I am fascinated by the notion of a literally hung council. I am not sure that I would wish to be a member of such a body—presumably it would be a very short life. That apart, I endorse the views of the noble Lords, Lord Filkin and Lord Newton, and the noble Earl, Lord Lytton. There is something to be discussed here. It requires a little more care and, perhaps, a little more legal input into definitions and processes. That said, the noble Lord has assured us that those discussions will take place and that we may be able to revisit, if necessary, at Third Reading. On that basis I am happy to accept that position.

Lord Taylor of Holbeach Portrait Lord Taylor of Holbeach
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My Lords, it has been useful to have this discussion. One of the ways forward for the discussions that we may well have between now and Third Reading is the provision of government position papers describing the factual information that noble Lords are seeking. The noble Lord, Lord Filkin, kindly let me off responsibility for replying in detail on the hoof this evening. Indeed, it would be far better to be able to put these matters to noble Lords at a point where we could commence our decisions. I hope that noble Lords will agree with that procedure. I thank them for their co-operation on this part of the Bill. It is important and I think the House is agreed on that.

Amendment 180 agreed.
Moved by
181: After Clause 18, insert the following new Clause—
“Disclosure of pecuniary interests on taking office
(1) A member or co-opted member of a relevant authority must, before the end of 28 days beginning with the day on which the person becomes a member or co-opted member of the authority, notify the authority’s monitoring officer of any disclosable pecuniary interests which the person has at the time when the notification is given.
(2) Where a person becomes a member or co-opted member of a relevant authority as a result of re-election or re-appointment, subsection (1) applies only as regards disclosable pecuniary interests not entered in the authority’s register when the notification is given.
(3) For the purposes of this Chapter, a pecuniary interest is a “disclosable pecuniary interest” in relation to a person (“M”) if it is of a description specified in regulations made by the Secretary of State and either—
(a) it is an interest of M’s, or(b) it is an interest of—(i) M’s spouse or civil partner,(ii) a person with whom M is living as husband and wife, or(iii) a person with whom M is living as if they were civil partners,and M is aware that that other person has the interest.(4) Where a member or co-opted member of a relevant authority gives a notification for the purposes of subsection (1), the authority’s monitoring officer is to cause the interests notified to be entered in the authority’s register (whether or not they are disclosable pecuniary interests).”
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Moved by
185: Clause 19, page 24, line 23, leave out from “person” to end of line 32 and insert “commits an offence if, without reasonable excuse, the person—
(a) fails to comply with an obligation imposed on the person by section (Disclosure of pecuniary interests on taking office)(1) or (Pecuniary interests in matters considered at meetings or by a single member)(2), (3) or (7),(b) participates in any discussion or vote in contravention of section (Pecuniary interests in matters considered at meetings or by a single member)(4), or(c) takes any steps in contravention of section (Pecuniary interests in matters considered at meetings or by a single member)(8).(1A) A person commits an offence if under section (Disclosure of pecuniary interests on taking office)(1) or (Pecuniary interests in matters considered at meetings or by a single member)(2), (3) or (7) the person provides information that is false or misleading and the person—
(a) knows that the information is false or misleading, or(b) is reckless as to whether the information is true and not misleading.”
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Moved by
189: After Clause 19, insert the following new Clause—
“Delegation of functions by Greater London Authority
(1) The Mayor of London and the London Assembly, acting jointly, may arrange for any of the functions conferred on them by or under this Chapter to be exercised on their behalf by—
(a) a member of staff of the Greater London Authority, or(b) a committee appointed in accordance with provision made by virtue of this section.(2) Standing orders of the Greater London Authority may make provision regulating the exercise of functions by any member of staff of the Authority pursuant to arrangements under subsection (1).
(3) Standing orders of the Greater London Authority may make provision for the appointment of a committee (“the standards committee”) to exercise functions conferred on the Mayor of London and the London Assembly by or under this Chapter in accordance with arrangements under subsection (1).
(4) Standing orders of the Greater London Authority may make provision about the membership and procedure of the standards committee.
(5) The provision that may be made under subsection (4) includes—
(a) provision for the standards committee to arrange for the discharge of its functions by a sub-committee of that committee; (b) provision about the membership and procedure of such a sub-committee.(6) Subject to subsection (7), the standards committee and any sub-committee of that committee—
(a) is not to be treated as a committee or (as the case may be) sub-committee of the London Assembly for the purposes of the Greater London Authority Act 1999, but(b) is a committee or (as the case may be) sub-committee of the Greater London Authority for the purposes of Part 3 of the Local Government Act 1974 (investigations by Commission for Local Administration in England).(7) Sections 6(3)(a) (failure to attend meetings) and 73(6) (functions of monitoring officer) of the Greater London Authority Act 1999 apply to the standards committee or any sub-committee of that committee as they apply to a committee of the London Assembly or any sub-committee of such a committee.
(8) Part 5A of the Local Government Act 1972 (access to meetings and documents) applies to the standards committee or any sub-committee of that committee as if—
(a) it were a committee or (as the case may be) a sub-committee of a principal council within the meaning of that Part, and(b) the Greater London Authority were a principal council in relation to that committee or sub-committee.(9) Arrangements under this section for the exercise of any function by—
(a) a member of staff of the Greater London Authority, or(b) the standards committee,do not prevent the Mayor of London and the London Assembly from exercising those functions.(10) References in this section to the functions of the Mayor of London and the London Assembly conferred by or under this Chapter do not include their functions under this section.
(11) In this section “member of staff of the Greater London Authority” has the same meaning as in the Greater London Authority Act 1999 (see section 424(1) of that Act).”