HC Deb 23 April 1985 vol 77 cc749-54 3.48 pm
Mr. Jack Straw (Blackburn)

I beg to move, That leave be given to bring in a Bill to make further provision regarding local government services in Lancashire. In the 1930s, the urban areas of Lancashire were deeply scarred. More than 50 per cent. of the insured population of many towns, including Blackburn, Preston and Burnley were without work. That devastation was wanton and unnecessary. It was caused by blind and doctrinaire policies. The people of Lancashire resolved that it should never happen again. They fought for policies of full employment, they voted for policies of full employment and, for 35 years, they got full employment. [Interruption.] From the end of the second world war until 1980, Lancashire had virtually full employment. Unemployment rarely went above 6 per cent. People could find work—[Interruption.]

Mr. Deputy Speaker (Mr. Harold Walker)

Order. I apologise for interrupting the hon. Gentleman, but I am finding it extremely difficult to follow what he is saying because of all the background conversations. I hope that the House will give the hon. Gentleman the courtesy and attention that he deserves.

Mr. Straw

I am grateful to you, Mr. Deputy Speaker. As I was saying, unemployment rarely went above 6 per cent. and people were able to find work. New towns were created and prosperity was established, not least as a result of the successful policies of regional aid and assistance pioneered by a Labour Government, but broadly maintained by previous Conservative Administrations.

Since 1980, disaster has struck our county. Since then, 60,000 jobs have been lost across the county and one in four young people are without work. Many of them have never had a proper job in their lives. One half of the men in many Asian areas are without jobs, and hundreds of men and women over 50 might never work again.

The despair spreads across the county. From Morecambe and Lancaster in the north, to Blackpool and Fylde in the west, to Skelmersdale and Ormskirk in the south, to Preston, Leyland and Chorley in the centre, to Blackburn, Hyndburn, Darwen, Burnley, Nelson, Colne and the Rossendale valley to the east, the story has been the same—closure and cuts.

Many people remain in work, but there is not one family in the county of Lancashire which is not now affected by the scourge of unemployment. There is not a family which does not have a member without work or in which the parents, even in prosperous areas, are not worried sick about their children's future.

The Government have washed their hands of responsibility for all this and deliberately made a bad situation worse. Regional assistance for the county was all but abolished between 1975 and 1982. Housing investment has been halved during the past six years. It was £95 million in 1979 at today's prices and is now £39 million. Grants to Lancashire county council and district councils have been slashed. Lancashire county council estimates that, since 1980–81, £180 million has been cut from Government assistance to the county—equivalent to £130 per head of population.

In those circumstances, the work of the Labour-controlled Lancashire county council and Labour-controlled district councils has shone like a beacon. They have stepped in to create jobs—1,200 new jobs have been created directly by the county council in the front line, not in bureaucracy. Lancashire Enterprises Limited has been established. It has protected and promoted 2,200 jobs, created 800 training opportunities and made a £300,000 profit for the ratepayers. Its cost per job created, at £4,000, is less than the Government pay to keep people on the dole.

The county has pioneered cheap travel for the elderly, improved rail and bus services, and opened 17 nursery schools and classes—and there are another 12 on the way. It has expanded the number of home helps and services to the elderly, especially in Blackpool, the Fylde and Morecambe areas—to which many people retire. It has done all that with one of the best financial records in the country.

In national terms, ratepayers in Labour shire counties pay 50p a week less than ratepayers in Conservative shires —£5.31 is paid each in week in Conservative shires and £4.83 is paid in Labour shires. In Lancashire, the record is even better. Average rate bills are £3.99 a week. No fewer than 33 counties have higher rate bills than Lancashire.

Despite Lancashire's excellent record, we are still spending £16.6 million less than the Government's assessment of the needs of the area, thanks to the target system. Because of that record, Labour's majority in Lancashire will increase on 2 May. But to meet the massive needs of the area, created by the reckless economic policies of the Conservatives, Lancashire needs assistance from central Government, not the hindrance that we have had from them in the last six years.

The Bill sets out a new framework for a real partnership between Whitehall, Westminster and the county to provide positive assistance to restore prosperity, jobs and services to the county. Clause 1 provides that within three months the Secretary of State for the Environment shall present a report to Parliament estimating the loss of rate support grant that has been suffered by the county in the last six years and the effect that that has had on business and domestic ratepayers. Most rate increases have occurred as a direct result of cuts in rate support grant.

Clause 2 provides for the Secretary of State to make a report to Parliament on the social and economic needs of the county of Lancashire and on plans, drawn up in consultation with the county, as to what the Government propose to meet those social and economic needs.

Clause 3 provides that the Secretary of State shall present proposals to Parliament to meet the pressing housing needs of Lancashire, which have got so much worse in the last six years. Clause 4 provides for extensive consultation with the districts and the county so that plans and proposals are not imposed on the county but are presented in collaboration with the districts.

Because private Members cannot move money Bills, the measure proposes no plans for increases in public expenditure. However, it is the first stage in a new partnership with the county. I hope that it will enjoy support from Conservative as well as Labour Members in the House.

Tory Members know that unemployment in the county of Lancashire would be even higher without the fine work of the county council. They know that many Conservative business men have been knocking on the doors of Lancashire Enterprises Limited seeking help for their firms, which have been ravaged by the present Government. They know of the hundreds of jobs that have been created and of the damage that has been done to the county by the Government. I hope that they also know that if they fail to support the Bill, bearing in mind the hope for the county that it holds out, the people of Lancashire will never forgive them.

3.57 pm
Mr. Kenneth Hind (Lancashire, West)

rose—

Mr. Deputy Speaker

Does the hon. Gentleman seek to oppose the Bill?

Mr. Hind

I do, Mr. Deputy Speaker. I rise to comment on what must be considered one of the most cynical abuses of the House that we have witnessed for a long time. The county council is facing elections on 2 May and it is not without significance—[Interruption.]—that, although this Bill could have been introduced on any day this Session, it has been introduced today, nine days before those elections.

As the only hon. Member whose constituency includes the name "Lancashire", I feel qualified to draw the attention of the House to some of the flaws in the Bill. All hon. Members who represent Lancashire constituencies — there are some on these Benches — want more resources spent on Lancashire as a whole — [Interruption.]—but we must see the whole of the national purse in the context of what the country can afford. We cannot ignore the interests of every other county.

I have no doubt that this measure will be followed by other cynical attempts at campaigning for the county council elections in the days to come, with similar Bills being brought, for example, on behalf of the counties of Avon, Kent and Northumberland. Such Bills will probably be brought only on behalf of counties where Opposition Members feel that they might have a chance of winning on 2 May. We shall not hear from Conservative-held shire counties where they do not stand a chance.

When we consider increasing the resources of local authorities, we must examine the way in which they spend their money. Have the authorities given good value for money? The record of Lancashire, to quote the hon. Member for Blackburn (Mr. Straw), stands out like a beacon; it has an appalling record in abuse and waste of public money. Lancashire Enterprises Limited has been referred to. It was set up by the Labour group on a supplementary rate of 18p about six weeks after Labour got into power, simply as a campaigning tool for the benefit of the Labour party.

Attached to that was Enterprise Associates Limited, a public relations consultancy. I am told that newspaper reporters were paid £15,000 a year and provided with a car to spread the message about what the Labour party was doing in Lancashire. This was nothing more than a publicity campaign for the Labour party in Lancashire at the ratepayers' expense. It is cynical and an abuse, but presumably the Labour party hopes that it will produce results. I am sure the ratepayers of Lancashire will not be convinced.

The rates in Lancashire have been increased because of Lancashire Enterprises Limited. In this electoral year they may not have been increased as much as previously, because the Labour party knew that it was going to the polls. Those high rates since 1981 have done more damage to investment prospects in Lancashire than anything other than the recession itself.

The hon. Member for Blackburn talked about 1,200 jobs that were created. If the money taken by the Labour-controlled Lancashire county council for high rates had been left in the hands of ordinary manufacturers and industrialists, not only would 1,200 jobs have been preserved but more jobs would have been created through the investment of that money. May I say on behalf of my constituents in Lancashire, West that, although in parts of Skelmersdale there is 30 per cent. unemployment, we are still waiting for Lancashire Enterprises Limited to create one job in my constituency?

Another abuse is that £15,000 was given by Lancashire to the miners' welfare fund. The council has just spent £150,000 on attacking the Government's Transport Bill. I have a letter here from the chief executive of Lancashire county council who says, in a nutshell, that the council totally opposes the Bill and is not taking any part in providing advice for Conservative Members of Parliament who are sitting on the Transport Bill Committee. Rather than spend a train fare to come to the Committee, the council has spent £150,000 of ratepayers' money cynically to campaign in Lancashire against the Conservative Government.

We have received through our letter boxes the Lancashire Clarion, produced by Enterprise Associates Limited; it is supposed to be a news sheet for Lancashire county council. I challenge anyone reading that news sheet to hunt the Conservative, or find any mention of Conservatives. It is nothing more than a publicity sheet for the Labour campaign in Lancashire.

I am sure my hon. Friends will join me in supporting the provision of more money for the counties at a favourable opportunity, but it has to be seen within the context of total public expenditure and what the country can afford. Hon. Members should bear in mind the cynical abuse by Lancashire county council when they decide what they will do at the end of the debate. I am sure that they will vote against the Bill for one reason only: that it is a cynical abuse of the House, electioneering and nothing more. I therefore beg the House to reject the motion.

Question put, pursuant to Standing Order No. 15 (Motions for leave to bring in Bills and nomination of Select Committees at commencement of public business):—

The House divided: Ayes 122, Noes 155.

Division No. 190] [4.4 pm
AYES
Anderson, Donald Bruce, Malcolm
Ashdown, Paddy Caborn, Richard
Ashley, Rt Hon Jack Callaghan, Jim (Heyw'd & M)
Atkinson, N. (Tottenham) Canavan, Dennis
Barnett, Guy Cartwright, John
Barron, Kevin Clark, Dr David (S Shields)
Beckett, Mrs Margaret Clarke, Thomas
Beith, A. J. Clay, Robert
Bell, Stuart Clwyd, Mrs Ann
Bennett, A. (Dent'n & Red 'sh) Cocks, Rt Hon M. (Bristol S.)
Blair, Anthony Cohen, Harry
Boothroyd, Miss Betty Concannon, Rt Hon J. D.
Boyes, Roland Cook, Frank (Stockton North)
Bray, Dr Jeremy Cook, Robin F. (Livingston)
Brown, Gordon (D'f'mline E) Corbett, Robin
Brown, Hugh D. (Proven) Cowans, Harry
Craigen, J. M. Meadowcroft, Michael
Cunliffe, Lawrence Michie, William
Davis, Terry (B'ham, H'ge H'I) Mikardo, Ian
Dewar, Donald Morris, Rt Hon J. (Aberavon)
Dixon, Donald Oakes, Rt Hon Gordon
Dormand, Jack O'Brien, William
Dubs, Alfred O'Neill, Martin
Duffy, A. E. P. Owen, Rt Hon Dr David
Eadie, Alex Park, George
Evans, John (St. Helens N) Patchett, Terry
Fatchett, Derek Pavitt, Laurie
Fields, T. (L'pool Broad Gn) Pendry, Tom
Foot, Rt Hon Michael Penhaligon, David
Forrester, John Pike, Peter
Freud, Clement Powell, Raymond (Ogmore)
Gilbert, Rt Hon Dr John Radice, Giles
Godman, Dr Norman Randall, Stuart
Hamilton, James (M'well N) Redmond, M.
Hamilton, W. W. (Central Fife) Richardson, Ms Jo
Hancock, Mr. Michael Roberts, Ernest (Hackney N)
Harrison, Rt Hon Walter Sedgemore, Brian
Haynes, Frank Sheerman, Barry
Heffer, Eric S. Shore, Rt Hon Peter
Hogg, N. (C'nauld & Kilsyth) Short, Ms Clare (Ladywood)
Howells, Geraint Short, Mrs R.(W'hampt'n NE)
Hoyle, Douglas Skinner, Dennis
Hughes, Robert (Aberdeen N) Smith, Cyril (Rochdale)
Kaufman, Rt Hon Gerald Snape, Peter
Kennedy, Charles Soley, Clive
Kirkwood, Archy Spearing, Nigel
Lambie, David Steel, Rt Hon David
Leadbitter, Ted Stott, Roger
Leighton, Ronald Strang, Gavin
Lewis, Ron (Carlisle) Thomas, Dafydd (Merioneth)
Lewis, Terence (Worsley) Thompson, J. (Wansbeck)
Litherland, Robert Thorne, Stan (Preston)
Loyden, Edward Torney, Tom
McDonald. Dr Oonagh Wallace, James
McKay, Allen (Penistone) Weetch, Ken
Maclennan, Robert Williams, Rt Hon A.
McNamara, Kevin Winnick, David
McTaggart, Robert Wrigglesworth, Ian
McWilliam, John
Madden, Max Tellers for the Ayes:
Marek, Dr John Mr. D. N. Campbell-Savours
Mason, Rt Hon Roy and
Maxton, John Mr. John Golding.
Maynard, Miss Joan
NOES
Adley, Robert Brittan, Rt Hon Leon
Alison, Rt Hon Michael Bruinvels, Peter
Ancram, Michael Buchanan-Smith, Rt Hon A.
Arnold, Tom Budgen, Nick
Aspinwall, Jack Bulmer, Esmond
Atkins, Rt Hon Sir H. Burt, Alistair
Baldry, Tony Carlisle, Kenneth (Lincoln)
Batiste, Spencer Carlisle, Rt Hon M. (W'ton S)
Beaumont-Dark, Anthony Channon, Rt Hon Paul
Biffen, Rt Hon John Clark, Sir W. (Croydon S)
Blackburn, John Clarke, Rt Hon K. (Rushcliffe)
Blaker, Rt Hon Sir Peter Cockeram, Eric
Boscawen, Hon Robert Colvin, Michael
Bottomley, Peter Coombs, Simon
Bowden, A. (Brighton K'to'n) Cope, John
Brandon-Bravo, Martin Critchley, Julian
Crouch, David Mather, Carol
Dicks, Terry Maude, Hon Francis
Dorrell, Stephen Mawhinney, Dr Brian
Douglas-Hamilton, Lord J. Mayhew, Sir Patrick
Durant, Tony Mellor, David
Edwards, Rt Hon N. (P'broke) Merchant, Piers
Eggar, Tim Mitchell, David (NW Hants)
Emery, Sir Peter Montgomery, Sir Fergus
Evennett, David Moore, John
Eyre, Sir Reginald Morrison, Hon C. (Devizes)
Favell, Anthony Morrison, Hon P. (Chester)
Forth, Eric Nelson, Anthony
Fox, Marcus Neubert, Michael
Franks, Cecil Nicholls, Patrick
Gale, Roger Onslow, Cranley
Garel-Jones, Tristan Pawsey, James
Goodhart, Sir Philip Portillo, Michael
Goodlad, Alastair Powley, John
Gow, Ian Prentice, Rt Hon Reg
Gower, Sir Raymond Price, Sir David
Greenway, Harry Proctor, K. Harvey
Gregory, Conal Rees, Rt Hon Peter (Dover)
Grist, Ian Renton, Tim
Grylls, Michael Ridley, Rt Hon Nicholas
Hamilton, Hon A. (Epsom) Roberts, Wyn (Conwy)
Hannam, John Rost, Peter
Harris, David Rowe, Andrew
Haselhurst, Alan Rumbold, Mrs Angela
Hayes, J. Sackville, Hon Thomas
Hayhoe, Barney Sainsbury, Hon Timothy
Hayward, Robert Shaw, Giles (Pudsey)
Heathcoat-Amory, David Shaw, Sir Michael (Scarb')
Heddle, John Silvester, Fred
Hickmet, Richard Sims, Roger
Higgins, Rt Hon Terence L. Skeet, T. H. H.
Hind, Kenneth Smith, Tim (Beaconsfield)
Holland, Sir Philip (Gedling) Soames, Hon Nicholas
Holt, Richard Speed, Keith
Howell, Ralph (N Norfolk) Squire, Robin
Hunt, David (Wirral) Stanley, John
Jackson, Robert Stern, Michael
Kershaw, Sir Anthony Stevens, Lewis (Nuneaton)
King, Rt Hon Tom Stewart, Andrew (Sherwood)
Knight, Gregory (Derby N) Taylor, Teddy (S'end E)
Knowles, Michael Thatcher, Rt Hon Mrs M.
Lamont, Norman Thompson, Donald (Calder V)
Lang, Ian Thorne, Neil (Ilford S)
Lawler, Geoffrey Thurnham, Peter
Lennox-Boyd, Hon Mark Townend, John (Bridlington)
Lewis, Sir Kenneth (Stamf'd) Tracey, Richard
Lilley, Peter Twinn, Dr Ian
Lloyd, Ian (Havant) Waddington, David
Lloyd, Peter, (Fareham) Walker, Bill (T'side N)
Lord, Michael Walker, Rt Hon P. (W'cester)
MacKay, Andrew (Berkshire) Wells, Sir John (Maidstone)
MacKay, John (Argyll & Bute) Wheeler, John
Maclean, David John Wiggin, Jerry
McNair-Wilson, M. (N'bury) Yeo, Tim
McQuarrie, Albert Young, Sir George (Acton)
Major, John
Malone, Gerald Tellers for the Noes:
Maples, John Mr. Robert Atkins and
Marland, Paul Mr. Ken Hargreaves.

Question accordingly negatived.