Growth and Infrastructure Bill

Michael Fallon Excerpts

Monday 5th November 2012 Commons Chamber

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

I thank the hon. Member for Edinburgh South (Ian Murray) for the welcome he gave me, if not for drawing attention to the difference in our ages. As a former President said, I was not going to make an issue of his youth and inexperience.

I also thank all those who have contributed to the debate, but before I reply to some of the main points, I remind the House of the purpose of the Bill, which is to support local growth and local jobs by tackling the barriers that hold back investment and growth, and that slow down sustainable long-term development. Through this Bill, six Government Departments come together to make the planning system quicker and more efficient, to accelerate investment in the modern infrastructure that our economy needs—including faster broadband and more energy generation—and to introduce a completely new type of employee ownership.

The Bill has the support of the business community. The British Chambers of Commerce said that it welcomed legislative measures to promote growth and infrastructure and the measures in the Bill to speed up and simplify the planning system. The Confederation of British Industry said:

“This new Bill should give confidence to business that the Government understands the need to fast track important infrastructure projects to boost growth. “

It welcomed the measures aimed at increasing transparency and accountability in the planning system.

I turn to some of the questions that have been put. The shadow Secretary of State asked me for an assurance that any amendment to clause 23 would be brought forward in this House and I am happy to give him that assurance. That is the aim of the timetable that we have set out in the consultation.

We had some notable contributions from Government Members, including from the former Minister, my hon. Friend the Member for Bromley and Chislehurst (Robert Neill), and my right hon. Friend the Member for Arundel and South Downs (Nick Herbert)—it was good to hear from him. He and my hon. Friend the Member for Newton Abbot (Anne Marie Morris) raised specific questions about the effect of clause 7 on national parks. I am happy to write to both of them with specific reassurance on that point.

[Tristram Hunt]

Will the Minister give way?

[Michael Fallon]

I will in a moment.

I welcome, too, the support that we have had from my hon. Friends the Members for Halesowen and Rowley Regis (James Morris), for Bury St Edmunds (Mr Ruffley), for Henley (John Howell), for Dover (Charlie Elphicke), for Cleethorpes (Martin Vickers) and others. My hon. Friends the Members for Rugby (Mark Pawsey) and for Waveney (Peter Aldous) raised specific questions about business rates. What I can tell them is that the Valuation Office Agency will be publishing data shortly, which we will collect in the impact assessment, which will be available to the Committee scrutinising that particular provision.

I turn to the principal issues raised by Opposition Members about clause 1. First, they asked where the evidence was of delay. Let me answer that directly. Less than 60% of major planning applications are decided in 13 weeks. Secondly, if Coventry can increase the percentage of all its applications that are determined within 13 weeks from 54% to 98%, and if Surrey Heath can increase its percentage from 42% to 100%, then any council can. Let me be clear: efficient councils have nothing to fear from clause 1.

Only a small minority of councils need to raise their game. Let me reassure the hon. Member for Mid Dorset and North Poole (Annette Brooke): we are not, as she feared, speaking of a massive number of councils. It is a small minority who need to raise their game if we are to ensure their local areas do not lose out in the recovery that is now under way. The Labour party had exactly the same concerns. In its last year in office in 2009-10, it cut the planning delivery grant for 22 local authorities on the grounds of poor performance. It was concerned, just as we are concerned. Applicants do not have to go to the Planning Inspectorate. Clause 1 makes it very clear that they simply have that alternative.

Turning to clause 5, there are, of course, concerns about the amount of affordable housing, and especially about those schemes that are stalled in section 106 negotiations. I need to repeat the point made earlier by the Secretary of State: affordable housing that is stalled for a minimum period of five years is not affordable housing—it is non-existent housing. We already know there are 1,400 sites comprising some 75,000 homes waiting to be unlocked. We accept that some councils are already renegotiating. However, even on the Local Government Association’s figures, 60% of councils are not renegotiating. Some 20% of councils are unwilling to negotiate. If we do not act, each of their schemes must wait for a further five years before appealing to the Secretary of State. For anybody who genuinely wants to see more affordable housing, that is simply unacceptable. If some councils can renegotiate, then all councils can renegotiate, and all councils should renegotiate. The shadow Secretary of State cannot have it both ways. At one point he suggested the measure was unnecessary and would not have any effect. Then he complained that developers would wait for it to take full legislative effect.

Turning to clause 7, I was asked about the definition of electronic communications equipment. The Bill has to be technology-neutral, so this clause could apply to all electronic communications equipment. However, as we have said before, the intention of the Bill is to allow cheaper and quicker deployment of broadband street cabinets and overhead infrastructure, not mobile phone masts. Let me reassure those who have concerns about the possible impact of this provision on our national parks and other protected areas that, under proposals on which we will shortly be consulting, providers will still have to notify local authorities of their plans. They will be encouraged to engage with local authorities and communities as a matter of best practice, and they will have to sign up to a code of practice on the siting of this infrastructure, to ensure that that is handled sensitively.

--- Later in debate ---

[Tristram Hunt]

rose—

[Michael Fallon]

I will give way in a moment.

The right hon. Members for Greenwich and Woolwich (Mr Raynsford) and for Wentworth and Dearne (John Healey) asked about the definition of significant commercial development under clause 21. We will consult on that definition soon, and on whether a new national policy statement should be put in place.

I can understand Labour’s ambiguity on this topic. Since the last election a succession—an entire football team—of former Ministers have admitted that their approach was too top-down: the Leader of the Opposition; his brother; the shadow Chancellor; the shadow Energy Secretary; the shadow Work and Pensions Secretary; the shadow Health Secretary; the shadow Culture Secretary; the right hon. Members for Wentworth and Dearne (John Healey), for Tottenham (Mr Lammy) and for Southampton, Itchen (Mr Denham); the hon. Members for Bishop Auckland (Helen Goodman) and for Plymouth, Moor View (Alison Seabeck); and, latterly, the shadow Minister, the hon. Member for Birmingham, Erdington (Jack Dromey). On his first appearance, he said that

“Labour was wrong…to downgrade the role of local government.”

One year on, at the Labour party conference last year, he said, after all, that he supported regional housing targets:

“you’ve got to have that strategic approach…in the regional spatial strategy framework.”

There we have it: they are against a top-down approach but they are back in favour of regional spatial strategies. Of course we will listen in Committee as we debate each—

[Tristram Hunt]

rose—

[Mr Speaker]

Order. The Minister of State is not giving way. He gives every indication at this stage of wishing to plough on, and that is his entitlement.

[Michael Fallon]

Of course we will listen in Committee to the debate on each clause, but the Labour party is going to have to be a lot more persuasive than it has been this afternoon.

[Tristram Hunt]

Will the Minister return to the points raised by the right hon. Member for Arundel and South Downs (Nick Herbert) that this wretched little Bill constitutes a total reversal of the localism strategy of the past two years and is a classic case of centralism based on a failed economic strategy?

[Michael Fallon]

I have already made it absolutely clear that as we have simplified the planning guidance, we are, of course, also responsible, as are local councils, for the efficient delivery of planning applications. I repeat that good, efficient councils have nothing to fear from the Bill.

Let us examine the previous Government’s record: in 13 years, they passed 15 planning Acts; six years after their main planning Act of 2004, fewer than 60 out of 335 planning authorities actually had the core strategies they were supposed to have; and after 13 years of top-down housing targets, they ended up with the lowest number of new homes built in any peacetime year since the 1920s. And who can forget the shambles of the eco-towns? Ten were promised, only three turned out to be viable without public subsidy, amazingly only one was assessed as environmentally friendly and, of course, none of the 10 was actually built. That is Labour in a nutshell: nought out of 10 for delivery. They give the builders of the Potemkin village a good name. So there we have the Labour record: planning authorities with no plans; development agreements commissioned but not actually signed; affordable housing commitments demanded but not actually built; eco-towns promised but none—not one—actually delivered. The Labour party is defending a record of failure and supporting a position of stagnation.

[Bill Esterson]

The Minister has mentioned the efficiency of councils twice now. Councils need certainty and so do businesses if we are to see growth and success in our economy. Will he define what he means by an efficient local council, using either a number of councils or a percentage?

[Michael Fallon]

The Secretary of State made it clear, and I repeat it, that we will consult on the definition of a poorly performing council. We will set out the criteria and I hope the hon. Gentleman will respond to that consultation.

Let me be very clear about the contrast that faces the House tonight. The Labour party is defending a record of failure and the status quo of stagnation, whereas this Government and this party want to see growth in all parts of our country. We are determined to open up opportunity for sustainable development, not just in the most efficient local authorities but in every single council area.

[Joan Walley]

Now that the Minister has mentioned sustainable development, would he care to give the House a definition of what he means by it?

[Michael Fallon]

The hon. Lady had a good go at trying to define sustainable development at some length earlier this afternoon. What we mean by sustainable development is development that is there for the long term, and she ought to support that in her authority and in others.

Let me be clear that the Bill promotes more efficient planning, encourages faster roll-out of broadband, will accelerate investment in electricity generation and in modern gas networks, and extends new opportunities for employee ownership. This is a Bill for growth and I commend it to the House.

Question put, That the Bill be now read a Second time.