§ 4. Mr. MurphyTo ask the Secretary of State for Wales when he last met representatives of local authority associations in Wales; and what topics were discussed.
§ The Secretary of State for Wales (Mr. Peter Walker)I met representatives of the Welsh Counties Committee and the Committee of Welsh District Councils at a meeting of the Welsh Consultative Council on Local Government Finance on 24 October. The main topics discussed were the provision of Welsh rate support grant settlement for 1989–90, the 1988 report of the grant distribution sub-group, the Rate Support Grants Act 1988, provision for community charge preparation costs, and the consultation paper on capital expenditure and finance.
§ Mr. MurphyWhy will the Secretary of State not listen to district councils in Wales, which have told him that his capital allocations for the implementation of the poll tax fall well short, by many millions of pounds, of the amount required and which are, in any event, loans, the repayment of which will place a great burden on future community tax payers in Wales? Does the Secretary of State not realise that the money would be better spent on reducing housing waiting lists, improving school building and helping to improve road systems? When will he admit that the poll tax is an imposition on the people of Wales and is deeply resented by all who live there?
§ Mr. WalkerFirst, I congratulate the hon. Gentleman on his new appointment and wish him a long and happy life there. He mentioned the allowances for the poll tax. In fairness, if he speaks to the district councils, they will inform him that when they put forward their original proposals on revenue I not only listened to them but pointed out that I thought that they had not requested enough. They applied for more because they had made a mistake in their calculations, which I pointed out. No one could accuse me of not listening. I not only listened, but told them how they should change their applications. The capital assumptions will be reasonable. The total per head allocation in Wales compares favourably with what is being provided in England. I can understand differences of opinion on the poll tax, but the hon. Gentleman will find that many people in his constituency and elsewhere will be considerable beneficiaries from the change.
§ Mr. MorganWhat is the right question to produce the now standard Cabinet answer that Cardiff, like Edinburgh, is a flourishing city? In seeking to find out which question will produce that non-sequitur, I shall ask the Secretary of State whether he thinks that the 7 Chancellor's high interest rate policy will have a devastating effect on the efforts of local authorities in Wales to bring in industrial development.
§ Mr. WalkerThe effect will be nowhere near as adverse as it would be if we returned to the level of inflation under the last Labour Government.