§ 5. Mr. Adam Hunterasked the Secretary of State for Scotland why it was necessary to introduce a new system of controlling local authority expenditure by means of block allocations to local authorities and granting them the discretion to decide their own priorities with regard to individual projects; and if he will make a statement.
§ Mr. MillanThe new system was introduced with the agreement of the Convention of Scottish Local Authorities. It will give authorities more freedom to determine their own capital expenditure priorities and afford better control over total capital expenditure.
§ Mr. HunterIs my right hon. Friend aware that the block allocation scheme 1475 appears to give him and his Department the opportunity to shed their responsibility with regard to allocations for certain projects, and that means that district councils will have the power to decide priorities? How will that effect Dunfermline's borrowing application for its sports complex? Can my right hon. Friend do something to grant a portion of the borrowing power requirement to enable Dunfermline to commence the first stage of the project?
§ Mr. MillanThe whole purpose of the new scheme is to allow priorities to be decided by local authorities and not by central Government. That is what local authorities want.
It is difficult to introduce the new scheme where the amount of capital expenditure is limited, but the authorities—I met them on this matter—specifically wish the scheme to go ahead despite the current difficulties. I could not, therefore, within the new allocations, set aside a part of an authority's allocation for a particular project.
If my hon. Friend wishes to pursue other aspects of this important project, which I know is very dear to him, perhaps he will do that with my hon. Friend the Under-Secretary of State.
§ Miss Harvie AndersonAs the discretion appears to mitigate against the increasing provision for the mentally handicapped, will the right hon. Gentleman watch the position closely to ensure that as much as possible is done in this needy held?
§ Mr. MillanHon. Members must accept that if I reduce central Government intervention—and incidentally, save staff when the scheme is in operation—and give local authorities the right to decide priorities I cannot be responsible for the individual decisions that a local authority makes.
§ Mrs. BainIs the Secretary of State aware of the deep concern felt amongst the careers service people that this discretionary power for local authorities may mean a decrease in expenditure on this vital service at a time of high unemployment? Will the Secretary of State therefore undertake to issue a directive similar to the one issued last year in England and Wales, whereby expenditure 1476 on this aspect is guaranteed at a minimum level?
§ Mr. MillanAgain, I think that my answer must be the same. The House has to decide whether it wants me to make all the individual decisions or to allow local authorities to make the decisions for themselves. I am constantly told that central Departments and the Secretary of State are interfering in matters that ought to be decided by local authorities. I have made an important step forward by taking central Government out of whole areas of decision-making and passing that responsibility to local authorities. That having been done, I cannot answer for individual local authorities.