HC Deb 15 July 1987 vol 119 cc1127-8
10. Mr. Hayes

asked the Secretary of State for the Environment if he will issue advice to local authorities who entered into deferred purchase agreements with merchant banks to delay prescribed expenditure before 22 July 1986; and if he will make a statement.

Mr. Chope

Advice to local authorities on scoring prescribed expenditure under deferred purchase deals entered into before 23 July 1986 was given in my Department's Circular 5/87.

Mr. Hayes

I thank my hon. Friend for his depressing reply. It shows that Hard-Left Harlow council is yet again surpassing itself in fleecing ratepayers. Not only is its grant-related expenditure 162 per cent. above the norm, but it is spending above the norm. It is the highest rating district—[Interruption.]

Mr. Speaker

Order. Ask a question, please.

Mr. Hayes

I put it to my hon. Friend—

Mr. Speaker

Order. Please do not do that. Ask a question.

Mr. Hayes

The question that I put to my hon. Friend is that, now that the council is embarking on an illegal and shady deal with foreign banks—[Interruption.]

Mr. Speaker

Order. That is an abuse.

Mr. Hayes

It was a question, Mr. Speaker.

Mr. Chope

In answering my hon. Friend's question, there is good news for him in the answer that I gave to the substantive question. Harlow's £50 million deferred purchase deal is caught by the Local Government Act 1987, I think rather to the surprise of that council.

Mr. Skinner

Why do the Government have two sets of standards for different institutions that engage in rescheduling debts? For instance, why should local authorities—mainly Labour authorities—be hammered into the ground by the Government for entering into arrangements to provide services, while the four top merchant banks have recently been engaged with the Inland Revenue, with the connivance of the Chancellor of the Exchequer, to offset debt payments of, in the case of Midland bank, about £1 billion? It means that, at the end of the day, the taxpayer will have to find £875 million to bail out Lloyds, Midland, National Westminster, and Barclays banks. Why do the Government have double standards?

Mr. Chope

The hon. Gentleman's question would probably be much better directed to the hon. Member for Blackburn (Mr. Straw), who told the House on the Third Reading of the Local Government Bill that clause 1, the deferred purchase measure, should be on the statute book. The official policy of the Labour party then was in favour of outlawing deferred purchase.