HC Deb 16 July 1957 vol 573 cc946-7
49. Dame Irene Ward

asked the Prime Minister if he will consider the setting up of machinery to ensure that local authorities with a good financial record for controlling expenditure and sound management of raising finance for capital expenditure shall be permitted to increase their standards of buildings and housing accommodation without interference from Departments which have also to sanction capital expenditure by less prudent local authorities, thus ensuring that incentives are offered to those authorities which spend wisely and economically.

The Prime Minister

The capital investment of local authorities is such an important element in our economy that some central control cannot be dispensed with. Proved competence and prudence naturally influence Ministers in considering applications for loan sanction; but it may well be necessary in the national interest to ask the most prudent of authorities to defer a capital project for the time being.

Dame Irene Ward

I thank my right hon. Friend for that Answer, but is it not a fact that Government Departments do suggest to local authorities putting in plans that they might prune the plans to the minimum standard, and would it not be a good idea that local authorities which have got a sound record of finance and are not profligate in their expenditure should have the opportunity of demonstrating to those residing within their boundaries that sound administration enables local authorities to raise standards? Is not it a bad thing always to have people brought down to a minimum, when the whole idea of the country is to improve quality and give incentives for good, sound administration?

The Prime Minister

I find it rather difficult to take the discussion further upon these highly generalised terms. If there is some particular instance which my hon. Friend has in mind, I shall, of course, try to look into it. I understand that we are to have two days of discussion upon the whole subject of the relations between central Government and local government, and perhaps that would be a good occasion on which these principles might be ventilated,