HC Deb 07 March 1985 vol 74 cc1196-7

5.9 pm

Mr. Brian Sedgemore (Hackney, South and Shoreditch)

I beg to ask leave to move the Adjournment of the House, under Standing Order No. 10, for the purpose of discussing a specific and important matter that should have urgent consideration, namely, the response of the Department of the Environment to the declaration of Mr. Justice Mann concerning Hackney's refusal to set a rate. On Tuesday of this week, Mr. Justice Mann in the High Court granted interim relief to a Hackney resident against Hackney council in respect of its stated intention not to fix a rate this evening. He ruled that Hackney has a duty to make a rate for the year commencing 1 April; that it cannot make a rate contrary to the Rates Act 1984; that moneys forwarded by tenants in respect of rates after 1 April cannot be used until a rate has been fixed; and that Hackney cannot borrow against expected revenue until a lawful rate has been fixed for 1985–86.

The matter is the more specific and quite extraordinary because the response of the Secretary of State for the Environment has been to enter into negotiations with the resident who made the ex parte application to Mr. Justice Mann in the High Court. I have a letter in my possession from the resident who made the ex parte application to the leader of the Liberal party in Hackney and I shall quote briefly from it, because it shows how specific, urgent and important the matter is: You will be interested to learn that the Solicitor to the Department of the Environment telephoned today to ask for copies of the papers in this case. He told me that the Private Office had evinced an interest. He also said that if the Liberal Group were put in a position where they had to make a budget and upon getting all the information they needed to do so, they found that there was a defined need for further assistance (say, in respect of Housing repairs) a properly evidenced application to the Secretary of State would undoubtedly result in further funding being made available. The person who was party to the application was a Mr. Fleming, who stood as an SDP candidate in a local by-election last Thursday and was defeated.

The matter is important for two reasons. First, it is important because it is a constitutional outrage and in contempt of Parliament, as well as an insult to the people of Hackney, for the Secretary of State to enter into negotiations with a resident who is not a Member of this House or a member of the Hackney borough council. And it is an outrage for the Secretary of State for the Environment to offer moneys to an individual who is nothing to do with the Hackney borough council.

Mr. Patrick Cormack (Staffordshire, South)

This is an outrage.

Mr. Sedgemore

I do not accept that this is an outrage. If the hon. Member for Staffordshire, South (Mr. Cormack) would only listen, he might learn something.

It is also important because there are a number of other councils affected by this ruling, which totally changes the law in respect of rate capping. It is urgent because I have been told by the Hackney council today that, if this ruling stands, on 1 April Hackney council will not be able to pay any wages or salaries or to provide any services for the people of Hackney. That means that we are within four weeks of the breakdown of local government in Hackney.

I do not want to be dramatic or to exaggerate, but it means that we shall get not only hardship but disorder and rioting in the streets, and the Secretary of State for the Environment is going to have to come to this House with emergency legislation. I believe that we should be debating today the nature of that emergency legislation before the constitutional crisis hits us.

Mr. Speaker

The hon. Member asks leave to move the Adjournment of the House for the purpose of discussing a specific and important matter which he believes should have urgent consideration, namely, the response of the Department of the Environment to the declaration of Mr. Justice Mann regarding Hackney's refusal to set a rate. I have to give him the same answer as I gave to the hon. Member for Dunfermline, West (Mr. Douglas). I regret that I do not consider the matter which he has raised to be appropriate for discussion under Standing Order No. 10. Therefore, I cannot submit his application to the House.