HC Deb 26 January 1983 vol 35 cc889-90
11. Mr. Hal Miller

asked the Secretary of State for the Environment if he will now make a statement on the terms for transfer of assets from development corporations to local authorities.

Sir George Young

We are establishing guidelines on the terms of transfer for community-related assets in the light of our discussions with district councils and, as I told my hon. Friend on 8 December, I hope shortly to be resuming discussions with the association on the terms for future housing transfers.

Mr. Miller

Will there be any income-producing assets—such as commercial and industrial—included in the balanced package on community-related assets to ensure that no undue burden is placed on local authorities arising from the need to maintain other community-related assets?

Sir George Young

I can give my hon. Friend that assurance. The transfer will take place on terms that do not impose an unacceptable burden on district councils. The aim is that it should be broadly neutral on revenue accounts. Assets that cost money will be balanced by assets that are revenue earning.

Mr. Newens

Will the Minister state clearly what assistance he will give to local authorities if they take over assets that are disposed of by the Commission for the New Towns when that is wound up—especially car parks and other assets that lose money? Will he make a better arrangement than that which he made for the houses affected by design defects, when he refused fully to honour promises made in the House?

Sir George Young

I do not for one moment accept the hon. Gentleman's allegation. I hope that the offer that was made on housing at the end of last year to district councils will be acceptable to them all. The aim is to find a fair balance between the ratepayers taking over the assets and the taxpayers who originally created them.

Dr. Mawhinney

Will my hon. Friend agree officially to consult hon. Members who represent third generation new towns about the detailed proposals for the transfer of assets within their constituencies before the proposals are affirmed?

Sir George Young

I shall ensure that hon. Members who represent the areas concerned are kept fully aware of the negotiations as they proceed between my Department and the district councils.

Mr. Graham

Does the Minister intend to learn from his previous mistakes? Does he recall the bitter resentment caused by the dictatorial and disgraceful terms that he imposed on the transfer of housing assets? Does he now accept that the forced sale of housing, industrial and commercial assets on less than fair terms will have disastrous consequences for new towns and their residents?

Sir George Young

My Department has no powers to force local authorities to take over housing. We have made it clear to the new towns that housing must be in good shape before it is offered to local authorities.