HC Deb 05 May 1981 vol 4 cc19-25 3.31 pm
Mr. Alfred Dubs (Battersea, South)

I beg to move, That leave be given to bring in a Bill to reform London government by abolishing the Corporation of the City of London as a local government unit and to provide for its resources and functions to be transferred to one or more adjacent boroughs; and for related purposes. In two days, the people of London will have their opportunity to vote in the forthcoming GLC elections. In that process, the residents of the City of London will be able to play their full and democratic part. But next year, when the people of London have their chance to vote in the local elections for the London borough councils, that democratic process will be denied to the people living in the City of London because each year the City of London will go through a different process of selecting its own form of local government. The intention of the Bill is to give the City of London the same type of democratic local government which the rest of the country has had for many years.

There is every reason why the City of London should conform to the rest of the country. The City of London has responsibilities for planning, housing, highways, refuse, social services, public health and all the other things which are the essence of local government. I am quite certain that the officers who work for the corporation of the City of London do a first class job.

However, the proposed Bill is about democracy. It is about doing away with patronage and privilege and having democratic local government. The Court of Common Council, which governs the City of London, consists of a Lord Mayor, 24 alderman and 138 Common Council men. The Lord Mayor is nominated by the livery voters of the City Guilds, such as fishmongers and coachmakers, masons and even skinners, although any connection with my hon. Friend the Member for Bolsover (Mr. Skinner) is purely coincidental.

The Lord Mayor is then elected by the Court of Aldermen, the aldermen themselves being elected for life if approved by the Lord Mayor and the existing aldermen—a filter, the like of which if applied to this House would have kept many of us out for ever. Indeed, given the set-up in the City of London, it can only be said that a latter-day Dick Whittington would never have made it to becoming Lord Mayor, and would have done much better to have stayed in Tower Hamlets, or perhaps Lambeth.

The Common Council men of the City of London are elected in 25 wards. There are 14,000 electors, of whom only 5,000 are residents. The vast majority—about 9,000—are on the voting lists of the City of London because they own or rent business premises. Indeed, in 22 of the 25 wards there are more non-resident than resident electors, and in only three of the wards do the residents outnumber the non-residents.

There is an enormous disparity in the size of the wards. The largest ward has 3,791 electors. That is a ward called Farringdon Without. The smallest ward, Candlewick, has 40 electors.

There are fewer than 100 electors in six wards. There are fewer than 10 residents on the voting list in five wards, and there are fewer than 100 residents on the voting list in 19 wards. Women hardly feature at all in the voting lists of many of the wards in the City of London. I checked two of the wards. In Bassishaw there are four women on the voting list, and in the Candlewick ward there are only two women on the voting list.

To become a Common Council man, a candidate must be a Freeman of the City of London as well as being on the voting list, must own freehold or leasehold land in the City, or must have lived in the City in the previous 12 months. There are three ways of becoming a Freeman of the City of London. It can be done by servitude, which is a form of apprenticeship; it can be done by patrimony—in other words, to be the son or daughter of a Freeman; or it can be achieved by redemption or purchase.

In 1960 the Royal Commission on local government in Greater London looked into the question of the City of London and said in its conclusions: If we were to be strictly logical we should recommend the amalgamation of the City and Westminster. But logic has its limits and the position of the City lies outside them. That is why to this day the City of London has had a different and undemocratic form of local government. Royal Commissions are not always right, and in this case I believe that it was just plain wrong.

A submission to the Royal Commission, prepared by the Corporation of London in 1958, says: In the national interest, Parliament has made provision for the preservation of ancient buildings, works of art, manuscripts and other things of historical importance. It would seem at least as important that ancient institutions should be preserved, particularly where they have been moulded by the centuries to serve modern needs. Parliament itself, no less than the Corporation of London, is an example of such an institution. But even Parliament has modernised itself far more than the City of London, and at least the modernisation of Parliament is still a burning issue, certainly in the Labour Party. However, the City of London has hardly modernised itself at all. The argument used in that submission is the argument for protecting privilege and patronage over the ages.

The City of London is extremely rich. It has a high rateable value. If it were to be merged with adjoining boroughs there would be greater benefits to people who are not as affluent as many of those on the voting lists of the City of London. Furthermore, there is the question of what is called the City's cash, a sum of money not obtained through the rates which is disbursed by the corporation of the City of London and which ought to be available for the benefit of the people of London as a whole and not just for a small minority of them or a small part of London.

Indeed, it is clear that the City of London is well behind the times. It has a business and property vote, although it has been abolished in the rest of the country. It has aldermen, even though they have been abolished elsewhere. It has an undemocratic system of elections at a time when the rest of the country has become democratic in its local government.

The question of how the City of London should be split up between the adjoining boroughs is best left to the Committee stage of the proposed Bill. At this stage my inclinations are that it ought to merge with the borough of Tower Hamlets. However, several hon. Members representing constituencies in adjoining boroughs have already approached me and have made their pitch for the City of London to be merged with their local authority areas.

I am not a philistine. I hope that some of the ceremonial functions of the City will be retained under the new structure. I hope that there will be the ceremony of the Lord Mayor: it attracts the tourists; it is good for the balance of payments, I am not against it.

Essentially, the Bill is against privilege. I ask the House to support it in order to give the City of London the same form of democratic government which many years ago we gave the people of other parts of the country.

3.40 pm
Mr. Tony Durant (Reading, North)

I rise to oppose the motion on behalf of my hon. Friend the Member for City of London and Westminster, South (Mr. Brooke) who, because of his position in the House, is unable to speak. I have no interest in the matter. I am not a stockbroker and I do not have any financial interests in the City so I can speak honestly and openly.

There are four good reasons why the motion should be opposed. First, it is a blatant political move prior to the GLC elections on Thursday. Secondly, the need to reform the City of London has not yet been proved, as a number of commissions have stated. Thirdly, the importance of the City of London to the nation and to the world is beyond comprehension. It is most important to Britain. Fourthly, reform of local government is not always a success, as many of us have felt for some time.

The hon. Member for Battersea, South (Mr. Dubs) made a blatant speech prior to the GLC elections. The last time that the matter was raised in March 1977—once again prior to the GLC elections—by Mr. Bryan Davies, who then represented Enfield, North. It was raised in 1965 by the former Member for Putney Mr. Hugh Jenkins, who is now in another place. Both gentlemen lost their seats. Perhaps that is a lesson of which the hon. Gentleman should be careful.

As is commonly known, the City occupies an important part of our constitution. It is an important square mile which houses financial, industrial and commercial centres of the world. It is important to us all. It is a unique place with high integrity, skills and expertise. It earns millions of pounds for Britain. The world watches and studies its actions. Its history goes back 2,000 years to Roman times. Its first main charter was granted by William the Conqueror. It was a port and a commercial centre for Britain for many years. Parliament granted it powers to elect its mayor and Magna Carta confirmed its separate identity.

The City of London has always been a defender of individual rights. It took into its care the five Members of Parliament who were attacked by the King when he entered the Chamber many hundreds of years ago. In the reign of George III when the House rejected John Wilkes as a Member of Parliament because he attacked the monarchy, the City of London made him its mayor three times in a row. It certainly looks after the rights of its citizens. The City has grown in importance. It employs 540,000. I admit that only 4,000 live in the City, but 540,000 work there. The City is important to them.

This matter has been examined many times. An inquiry in 1887 suggested that the City took over the surrounding areas—that would be an interesting position. An inquiry in 1854 decided to leave the City of London alone. There have been many inquiries since the war. Lord Reading, one of my distinguished predecessors in my constituency, chaired a committee considering the matter in 1945, which found the terms of reference too narrow. A Royal Commission was established, as the hon. Member for Battersea, South mentioned, which looked at the whole of Greater London. It recommended leaving the Corporation of London as it was because of its unique character. It is important to Britain.

The argument put forward by the hon. Gentleman is that the City of London is undemocratic. Its traditions are long and well-established. I sometimes question whether it does not work better than many of the things that we do in this place. We do not always make a success of what we do in the Chamber. The City looks at itself democratically and is trying to extend the franchise. It accepts that the number of resident electors is small, and that it must recognise the large numbers who work there and who need a voice in that important city.

The hon. Gentleman talked about the City's wealth. It provides one-eighth of the GLC's budget and 21 per cent. of ILEA's money, which is a credit to the City. It requires for its administration only £55 million. If the hon. Gentleman wants to break up the City and give it to the neighbouring boroughs he should remember that they are heavily in debt, especially in the north, east and south. There would have to be an almost immediate rate increse which would act as a deterrent to industry and business in the City. They would have to consider moving elsewhere. Rates have a bearing on where people work, as is shown in South Yorkshire and other places where businesses have been moving out because of high rates.

It is in the interests of the nation to maintain the City Corporation. It costs nothing. It raises money to pay for the pageantry mentioned by the hon. Gentleman. It supports the City schools, it runs Billingsgate and Smithfield and it spends £1 million a year on open spaces, especially in Epping Forest and Burnham Beeches. It maintains the four bridges into the City. Would the hon. Gentleman's borough care to take on the maintenance of those bridges? It runs the Guildhall School of Music, reputable establishment. It built the Barbican.

The Opposition often criticise the City corporation, but however, it is interesting to note that the Labour Front Bench seldom speaks on the matter. When the right hon. Member for Stepney and Poplar (Mr. Shore) carried out his' organic development—or whatever he called it—during the last Government he never mentioned the City of London. Two former Labour Prime Ministers have accepted the freedom of the City—Lord Attlee and the right hon. Member for Huyton (Sir H. Wilson). They both accepted it gladly and were honoured to take their place among the other Freemen.

The motion is a political move, which happens regularly before GLC elections. It should be thrown out. Reform of local government since the war has not been a great success. I say that as someone not keen on the legislation put through by my party. Tampering with local government has never been a success since the war, and the motion would make the matter worse. I urge my right hon. and hon. Friends to vote against this mean little measure.

Mr. Peter Rost (Derbyshire, South-East)

On a point of order, Mr. Speaker. As a Freeman of the City of London, I wonder whether you could give me guidance. I gather that I am not alone in that position. As the proposed Bill would abolish the rights and privileges of Freemen of the City, is it proper that Freemen on either side of the House should vote on the matter?

Mr. Speaker

Before I answer that point, I should tell the House that I am a member of the ancient order of blacksmiths in the City of London—and I am very proud of that. I am a Freeman of the City of London. I do not intend to vote—at least, I do not expect that I shall be called upon to vote. I do not see any direct pecuniary interest for any hon. Member. Whether to vote is a matter of judgment for each hon. Member.

Question put, pursuant to Standing Order No. 13 (Motions for leave to bring in Bills and nomination of Select Committees at commencement of public business):

The House divided: Ayes 155, Noes 236.

Division No. 167 3.49 pm
AYES
Anderson, Donald Graham, Ted
Ashley, Rt Hon Jack Grant, George (Morpeth)
Barnett, Guy (Greenwich) Hamilton, James (Bothwell)
Barnett, Rt Hon Joel (H'wd) Hamilton, W. W. (C'tral Fife)
Benn, Rt Hon A. Wedgwood Harrison, Rt Hon Walter
Bennett, Andrew(St'kp't N) Hart, Rt Hon Dame Judith
Bidwell, Sydney Hattersley, Rt Hon Roy
Booth, Rt Hon Albert Haynes, Frank
Bottomley, Rt Hon A.(M'b'ro) Healey, Rt Hon Denis
Bradley, Tom Heffer, Eric S.
Brown, Hugh D. (Provan) Hogg, N. (E Dunb't'nshire)
Buchan, Norman Holland, S. (L'b'th, Vauxh'll)
Campbell, Ian Home Robertson, John
Carmichael, Neil Homewood, William
Carter-Jones, Lewis Horam, John
Cartwright, John Huckfield, Les
Clark, Dr David (S Shields) Hughes, Robert (Aberdeen N)
Cocks, Rt Hon M. (B'stol S) Hughes, Roy (Newport)
Cohen, Stanley Janner, Hon Greville
Coleman, Donald Jay, Rt Hon Douglas
Concannon, Rt Hon J. D. John, Brynmor
Cook, Robin F. Jones, Barry (East Flint)
Cowans, Harry Jones, Dan (Burnley)
Cox, T. (W'dsw'th, Toot'g) Kaufman, Rt Hon Gerald
Craigen, J. M. Kerr, Russell
Cryer, Bob Kilroy-Silk, Robert
Cunliffe, Lawrence Kinnock, Neil
Cunningham, Dr J. (W'h'n) Lambie, David
Dalyell, Tam Lamond, James
Davidson, Arthur Leighton, Ronald
Davis, Clinton (Hackney C) Lestor, Miss Joan
Davis, T. (B'ham, Stechf'd) Lewis, Ron (Carlisle)
Deakins, Eric Lyon, Alexander (York)
Dean, Joseph (Leeds West) McCartney, Hugh
Dixon, Donald McDonald, Dr Oonagh
Dobson, Frank McKelvey, William
Dormand, Jack McNamara, Kevin
Douglas-Mann, Bruce Magee, Bryan
Dubs, Alfred Marshall, Dr Edmund (Goole)
Duffy, A. E. P. Marshall, Jim (Leicester S)
Dunwoody, Hon Mrs G. Mason, Rt Hon Roy
Edwards, R. (W'hampt'n S E) Meacher, Michael
English, Michael Mikardo, Ian
Evans, loan (Aberdare) Millan, Rt Hon Bruce
Evans, John (Newton) Miller, Dr M. S. (E Kilbride)
Field, Frank Mitchell, R. C. (Soton Itchen)
Flannery, Martin Morris, Rt Hon A. (W'shawe)
Fletcher, Ted (Darlington) Morton, George
Foot, Rt Hon Michael Mulley, Rt Hon Frederick
Forrester, John Newens, Stanley
Foster, Derek O'Halloran, Michael
Foulkes, George O'Neill, Martin
Garrett, John (Norwich S) Owen, Rt Hon Dr David
Gilbert, Rt Hon Dr John Pavitt, Laurie
Golding, John Penhaligon, David
Powell, Raymond (Ogmore) Summerskill, Hon Dr Shirley
Prescott, John Thomas, Dafydd (Merioneth)
Price, C. (Lewisham W) Thomas, Dr R. (Carmarthen)
Richardson, Jo Thorne, Stan (Preston South)
Roberts, Allan (Bootle) Tilley, John
Roberts, Ernest (Hackney N) Tinn, James
Roberts, Gwilym (Cannock) Torney, Tom
Robertson, George Urwin, Rt Hon Tom
Rooker, J. W. Varley, Rt Hon Eric G.
Roper, John Walker, Rt Hon H.(D'caster)
Ross, Stephen (Isle of Wight) Weetch, Ken
Sandelson, Neville Welsh, Michael
Sheerman, Barry White, Frank R.
Sheldon, Rt Hon R. White, J. (G'gow Pollok)
Short, Mrs Renée Wigley, Dafydd
Silkin, Rt Hon J. (Deptford) Willey, Rt Hon Frederick
Silverman, Julius Williams, Rt Hon A.(S'sea W)
Skinner, Dennis Winnick, David
Spearing, Nigel Woolmer, Kenneth
Spriggs, Leslie Young, David (Bolton E)
Stallard, A. W.
Stoddart, David Tellers for the Ayes:
Stott, Roger Mr. Reg Race and
Strang, Gavin Mr. Clive Soley.
Straw, Jack
NOES
Adley, Robert Douglas-Hamilton, Lord J.
Alison, Michael Dover, Denshore
Arnold, Tom du Cann, Rt Hon Edward
Atkins, Robert (Preston N) Durant, Tony
Atkinson, David (B'm'th.E) Dykes, Hugh
Baker, Kenneth (St.M'bone,) Eden, Rt Hon Sir John
Banks, Robert Edwards, Rt Hon N. (P'broke)
Beaumont-Dark, Anthony Eggar, Tim
Beith, A. J. Elliott, Sir William
Bendall, Vivian Eyre, Reginald
Bennett, Sir Frederic (T'bay) Fairbairn, Nicholas
Benyon, Thomas (A'don) Fairgrieve, Russell
Benyon, W. (Buckingham) Faith, Mrs Sheila
Berry, Hon Anthony Fell, Anthony
Best, Keith Fenner, Mrs Peggy
Biffen, Rt Hon John Fisher, Sir Nigel
Biggs-Davison, John Fletcher, A. (Ed'nb'gh N)
Blackburn, John Fletcher-Cooke, Sir Charles
Blaker, Peter Fookes, Miss Janet
Body, Richard Forman, Nigel
Boscawen, Hon Robert Fox, Marcus
Bottomley, Peter (W'wich W) Freud, Clement
Bowden, Andrew Gardiner, George (Reigate)
Boyson, Dr Rhodes Garel-Jones, Tristan
Bright, Graham Glyn, Dr Alan
Brinton, Tim Goodhart, Philip
Brittan, Leon Goodhew, Victor
Brooke, Hon Peter Goodlad, Alastair
Brotherton, Michael Gorst, John
Brown, Michael (Brigg & Sc'n) Gow, Ian
Browne, John (Winchester) Gower, Sir Raymond
Bruce-Gardyne, John Grant, Anthony (Harrow C)
Bryan, Sir Paul Gray, Hamish
Buchanan-Smith, Alick Griffiths, Peter Portsm'th N)
Buck, Antony Grimond, Rt Hon J.
Budgen, Nick Grist, Ian
Burden, Sir Frederick Gummer, John Selwyn
Butcher, John Hamilton, Hon A.
Carlisle, John (Luton West) Hamilton, Michael (Salisbury)
Carlisle, Kenneth (Lincoln) Hannam, John
Chalker, Mrs. Lynda Haselhurst, Alan
Chapman, Sydney Hastings, Stephen
Churchill, W. S. Hawkins, Paul
Clark, Sir W. (Croydon S) Hawksley, Warren
Clarke, Kenneth (Rushcliffe) Hayhoe, Barney
Clegg, Sir Walter Henderson, Barry
Cockeram, Eric Higgins, Rt Hon Terence L.
Cope, John Holland, Philip (Carlton)
Cormack, Patrick Hooson, Tom
Corrie, John Howell, Rt Hon D. (G'ldf'd)
Costain, Sir Albert Howell, Ralph (N Norfolk)
Critchley, Julian Hunt, David (Wirral)
Dickens, Geoffrey Hunt, John (Ravensbourne)
Hurd, Hon Douglas Kilfedder, James A.
Jenkin, Rt Hon Patrick Kimball, Marcus
Jessel, Toby King, Rt Hon Tom
Jopling, Rt Hon Michael Knight, Mrs Jill
Lamont, Norman Rifkind, Malcolm
Lang, Ian Rippon, Rt Hon Geoffrey
Latham, Michael Roberts, M. (Cardiff NW)
Lawson, Rt Hon Nigel Roberts, Wyn (Conway)
Le Marchant, Spencer Rossi, Hugh
Lennox-Boyd, Hon Mark Rost, Peter
Lester, Jim (Beeston) Sainsbury, Hon Timothy
Lloyd, Peter (Fareham) St. John-Stevas, Rt Hon N.
Loveridge, John Shaw, Giles (Pudsey)
Lyell, Nicholas Shaw, Michael (Scarborough)
McCrindle, Robert Shelton, William (Streatham)
MacGregor, John Shepherd, Colin (Hereford)
MacKay, John (Argyll) Shersby, Michael
McNair-Wilson, M. (N'bury) Silvester, Fred
McQuarrie, Albert Sims, Roger
Marland, Paul Skeet, T. H. H.
Marlow, Tony Smith, Dudley
Marten, Neil (Banbury) Speller, Tony
Mates, Michael Spicer, Jim (West Dorset)
Mather, Carol Spicer, Michael (S Worcs)
Maude, Rt Hon Sir Angus Stanbrook, Ivor
Mawby, Ray Stanley, John
Mawhinney, Dr Brian Steel, Rt Hon David
Maxwell-Hyslop, Robin Steen, Anthony
Mayhew, Patrick Stevens, Martin
Mellor, David Stewart, Ian (Hitchin)
Meyer, Sir Anthony Stewart, A.(E Renfrewshire)
Miller, Hal (B'grove) Stokes, John
Mills, Iain (Meriden) Stradling Thomas, J.
Mills, Peter (West Devon) Tapsell, Peter
Moate, Roger Temple-Morris, Peter
Molyneaux, James Thatcher, Rt Hon Mrs M.
Monro, Hector Thomas, Rt Hon Peter
Montgomery, Fergus Thompson, Donald
Moore, John Thornton, Malcolm
Morris, M. (N'hampton S) Townend, John (Bridlington)
Morrison, Hon C. (Devizes) Townsend, Cyril D, (B'heath)
Morrison, Hon P. (Chester) Trippier, David
Murphy, Christopher van Straubenzee, W. R.
Myles, David Vaughan, Dr Gerard
Neale, Gerrard Viggers, Peter
Needham, Richard Waddington, David
Nelson, Anthony Wainwright, R.(Colne V)
Neubert, Michael Wakeham, John
Newton, Tony Walker, B. (Perth)
Onslow, Cranley Waller, Gary
Osborn, John Walters, Dennis
Page, John (Harrow, West) Ward, John
Page, Rt Hon Sir G. (Crosby) Warren, Kenneth
Patten, Christopher (Bath) Watson, John
Patten, John (Oxford) Wells, John (Maidstone)
Pawsey, James Wheeler, John
Pink, R. Bonner Whitelaw, Rt Hon William
Pollock, Alexander Wickenden, Keith
Powell, Rt Hon J.E. (S Down) Wilkinson, John
Prentice, Rt Hon Reg Williams, D.(Montgomery)
Price, Sir David (Eastleigh) Wolfson, Mark
Proctor, K. Harvey Young, Sir George (Acton)
Pym, Rt Hon Francis Younger, Rt Hon George
Rathbone, Tim
Rees, Peter (Dover and Deal) Tellers for the Noes:
Rees-Davies, W. R. Mr. Bob Dunn and
Rhodes James, Robert Mr. John Heddle.

Question accordingly negativated.