Voluntary Organisations (Hansard, 4 December 1985)

§ 6. Mr. Terry Lewis
asked the Secretary of State for the Environment what representations he has received since his statement on 19 November, Official Report, column 148, about future grants for countrywide voluntary organisations currently funded by the metropolitan counties and the Greater London council.

§ The Parliamentary Under-Secretary of State for the Environment (Sir George Young)
My noble Friend the Minister of State discussed this and other matters with representatives of the London voluntary sector last week, but there have been no written representations on the matter of countrywide organisations.

§ Mr. Lewis
Is the Minister aware that there has been a disappointing response from his Department to the transitional bids made by local authorities, with only a low percentage of bids being accepted? In view of that, of what value are the promises made in this House and in another place last year during the debates on abolition?

§ Sir George Young
The hon. Gentleman said that local authorities were disappointed with the allocations. However, we announced some time ago that we would help with £20 million worth of transitional projects. Indeed, a few weeks ago we announced allocations for projects of exactly that value. That is additional money to the rate support grant and other resources.
I am encouraged by the progress being made on the transitional arrangements for voluntary sector projects in the areas affected by abolition.

§ Mr. Dickens
Is my hon. Friend aware that many constituents are writing to Members of Parliament who represent areas within the metropolitan county councils that are covered by voluntary organisations? Those organisations wonder whether they will still receive the grants that they currently receive, and whether the money that is recycled by the metropolitan county councils will 289 still find its way to them. Can my hon. Friend clarify that? The Greater Manchester council is the authority involved in my area.

§ Sir George Young
As a Member who represents just such an area, I am well aware of the correspondence to which my hon. Friend has referred.
The Government have set up two schemes. One is the section 48 scheme for organisations that cover more than one district. Progress with that scheme is quite encouraging. The other scheme is the one referred to by the hon. Member for Worsley (Mr. Lewis). As I told him, an extra £20 million is being made available to help that scheme. In addition, all the rate support grant that currently goes to the metropolitan county councils will be available to the successor bodies, and that will provide additional help.

§ Mr. Meadowcroft
Is the Minister aware that many excellent voluntary organisations in Yorkshire, currently in receipt of grant, are concerned about their future? Will the hon. Gentleman go beyond the block amount available and tell the House what process there is for evaluating projects to decide whether they are worth funding in future? That is the question to which most voluntary organisations want an answer.

§ Sir George Young
That decision rests with the local authorities. My Department has indicated the provisional amount of money available to local authorities for transitional projects. It is for local authorities to decide which projects to fund with transitional help and which to take on board themselves.

§ Mr. Boyes
The Minister's answers simply are not good enough. They reveal a lack of knowledge of the magnitude of the problems that will face voluntary organisations, which have told me that the transitional grants are not sufficient. The additional spending power of boroughs on a county-wide basis under section 48 is not good enough. Why did the Minister not consider the solution offered by a number of organisations—that the section 137 2p rate should be increased to 4p for borough councils?

§ Sir George Young
I congratulate the hon. Gentleman on his first intervention from the Dispatch Box. As he knows, we debated these matters at length when the abolition Bill passed through the House earlier this year. I am satisfied that the Government have done all they can to ensure that worthwhile voluntary projects are not out of pocket as a result of abolition.