§ 9. Mr. Adleyasked the Secretary of State for the Environment if he will list, in order of priority, the criteria he has established to determine the level of rate support grant; if coastal erosion is on the list; and, if not, whether he will include it next year.
§ Mr. KingI refer my hon. Friend to annex J of "The Rate Support Grant Report (England) 1980" for the indicators used in the calculation of grant-related expenditure. It is not possible to list those in order of priority. An indicator relating to expenditure on coast protection is included.
§ Mr. AdleyDoes my right Friend agree that expenditure on coastal erosion should nevertheless qualify as essential rather than desirable expenditure? Does he accept the principle that if a bit of England falls into the sea, England should pay?
§ Mr. KingMy hon. Friend will be able to pursue his arguments on this point more effectively under the new system than under the previous system, under which it would have been impossible to know what sums of money were effectively allocated for this purpose or the basis on which they were distributed. I am not satisfied with the present system, but it is the best that could be introduced this year. Owing to the lack of adequate statistics on coastal erosion, it does not take that factor as fully into account as I would like. There is scope for improvement. I hope that my hon. Friend will be able to make constructive suggestions as to how this might be handled.
§ Mr. CryerWhatever the criteria for the rate support grant, is it not a fact that the Department of the Environment is cutting back? Where is the sense in cutting 281 back the rate support grant, forcing local authorities to cut back in both the private and public sectors, and simply transferring money to the Department of Employment in larger payouts on lengthening dole queues? It is crazy economics and it makes nonsense for those joining the dole queues.
§ Mr. KingThe numbers who join the dole queues will be very much influenced by the attitudes of local authorities to the levels of the rating bills that they face.
In that connection, I should think that the hon. Gentleman is thanking his lucky stars that his constituency is in West Yorkshire, which has decided to make a 25 per cent. reduction in its rates, has cut its bus subsidy completely and has managed to freeze fares for the next 17 months. However, I understand that South Yorkshire which is a Labour-controlled county council, proposes to spend no less than £65 million on subsidising bus fares with the result that industrialists in that area will face a 42 per cent. rate increase.