§ Mr. Andrew WelshI beg to move amendment No. 316, in page 35, line 24, leave out subsection (1).
At 11.53 pm, I will be as brief as possible. The amendment—
§ Mr. Tony BanksTake your time, kid.
§ Mr. WelshThe amendment seeks to delete subsection 28(1), which will impose a duty on local authorities to seek guidance from the Secretary of State about any expenditure on the promotion of local economic development. The Bill places yet another statutory obligation on local authorities to put themselves into the clutches of the Secretary of State when they simply set about exercising the powers of economic promotion allocated to them.
Local government can, and should be, a significant and knowledgable contributor to local economic regeneration and a prime motivator in encouraging local economic activity.
My fundamental objection is to yet another example of unnecessary central Government interference with duly given local government powers. Clause 28(1) sets out to shackle local government in its attempts to determine the exact nature and requirements of local industrial promotion. As ever, with the anti-local government mob which now runs the United Kingdom's central Government, central Government will determine what will and what can be done by local authorities in such matters. That is yet another clawing back of power from local government to central Government, and is another unnecessary demand on local authorities.
My objection is that I do not believe that central Government is always right in such matters. Local authorities have few enough industrial powers devolved to them and little enough cash to meet their industrial problems. Therefore, it is somewhat unnecessarily heavy-handed of central Government to take these further restrictive powers over duly elected local councils.
Local authorities know the local situation and the industrial development and promotional needs of their local areas in a way that is quite impossible for central Government. That is why they should be allowed full control in getting on with such matters to ensure that there is industrial regeneration and innovation in their areas.
However, the Bill seeks further to stop the scope for such initiatives in the industrial promotion that is at the heart of any new initiatives and developments locally. I 836 know from first hand the expertise and ability of local authority staff—men and women who understand and who know personally the economic profile of their areas—
§ Mrs. Virginia BottomleyI am not entirely clear whether the hon. Gentleman is aware that these measures do not apply to Scotland.
§ Mr. WelshThe hon. Lady will have noticed that I have not specifically mentioned Scotland, which I normally do. I am sure that the expertise that I have found at first hand exists also in English local authorities.
Local government should be given the powers and the authority to get on with those activities because local authorities know the local situation.
§ Mr. Nicholas BennettWill the hon. Gentleman give way?
§ Mr. BennettI am most grateful to the hon. Gentleman for giving way. I simply want to place on the record the fact that we welcome his part in English legislation and hope that we can take part in Scottish legislation.
§ Mr. WelshWell, it is a return match for the interference that the hon. Gentleman has made in my country's legislation. Perhaps I am getting one back, but I hope that I am doing so in a positive and useful way.
Local authorities know best how to promote local industry in their areas because they know the economic needs in a way that central Government cannot. Why should local government officials, under policy guidance from democratically elected local councillors, not be allowed to get on with their work of dealing with the local economic problems without always being hedged in by legislation and by Big Brother in central Government? Legislation has already severely limited the powers and initiative allowed to local people. My fundamental objection is that the Bill worsens rather than improves the situation. Economic development, promoted and encouraged with sensitivity by people with local knowledge and, more importantly, the power to get on with the job, would be a far better objective than that of this part of the Bill.
I do not in any way object to local authorities having a duty to report on their plans in each financial year to ensure that local plans fitted in with the Government's broader strategic economic planning function. That is why my amendment seeks to remove the first subsection only of clause 28. Local authorities have been given little enough freedom of action and few enough resources to create employment and to encourage local enterprise. My amendment would at least free them from one more unnecessary restriction on their powers of action.
§ Mrs. Virginia BottomleyApart from the explanation to the hon. Member for Angus, East (Mr. Welsh) that this provision is not available in Scotland at the moment, I should like to inform him that the Convention of Scottish Local Authorities has welcomed the fact that more time will be allowed for the development of the separate proposals for Scotland. However, judging from the hon. Gentleman's remarks, perhaps he would not like the power to be extended there.
§ Mr. MaxtonI am also sure that the party of the hon. Member for Angus, East (Mr. Welsh) has little or no influence in COSLA, which is almost entirely dominated by the Labour party.
12 midnight
§ Mrs. BottomleyThe amendment is unnecessary. The Secretary of State may give guidance under subsection (1). While obviously it will probably be necessary for guidance to be given in the form of circulars at the time of the regulations being enacted, it is not necessarily our intention to issue further specific guidance to local authorities.
If specific guidance were to be made available, it is most likely that it would be aimed at promoting value for money or consistency between central Government and local authority initiatives. In short, it would be only practical assistance which would be helpful and sensible for local authorities to see. They would be required only to take it into account, and, having taken it into account, it would be for them to make up their minds on the matter.
These economic development powers will be helpful and of great benefit to local government, and I therefore hope that the hon. Gentleman will withdraw his amendment.
§ Mr. Andrew WelshAs my attempt to be helpful seems to have been somewhat rebuffed by English hon. Members, I beg to ask leave to withdraw the amendment.
§ Amendment, by leave, withdrawn.