HL Deb 02 August 1972 vol 334 cc405-7

8.11 p.m.

LORD POLWARTH rose to move, That the Draft British Railways Board (Amendment of Certified Amount) (Scotland) Order 1972, laid before the House on July 14, be approved. The noble Lord said: My Lords, in moving this Order I should explain to your Lordships that under the provisions of Part V of the Local Government Act 1948 the operational properties of the British Railways Board are excluded from normal valuation and rating and, instead of paying rates to individual local authorities, the Board make annual payments, calculated in a manner prescribed by the Act, to the Secretary of State for distribution to local authorities in Scotland. The purpose of the Order is to fix a new "standard amount" for the purpose of these calculations. This will ensure that the operational properties of the Board in Scotland, which were outwith the scope of last year's general revaluation, are kept in a proper relationship with subjects which are rated in the normal manner.

The Board's contributions in lieu of rates are calculated by applying each year to a "standard amount" adjustment factors which take account of changes in the general level of rate poundages and in the activities of the Board. There was a considerable overall increase in the valuations of other property following last year's revaluation and as a result the average rate poundage in Scotland fell by about 50p. Consequently, if the standard amount is not revised the adjustment made for changes in rate levels would have the effect of reducing the Board's contribution for the current year by about £30,000.

The Order, which amends a figure from which the standard amount is derived, in effect increases the present standard amount in the same proportion as valuations generally have increased in Scotland following revaluation; namely, 75 per cent. The current figure is £160,000 which is being amended to £279,000. When the Railways Board were consulted about this proposal they contended that with the continuing contraction of their services in Scotland the standard amount should be decreased rather than increased. We did not agree to this because we felt that reduction of the Board's contribution—at the expense of Scottish ratepayers generally—ought not to become an invariable feature of each quinquennial revaluation. The Board are carrying forward the benefit of the concessions made in 1962 and 1967 which have permanently reduced (by about one third) their contribution relative to that of ratepayers, both domestic and industrial. To maintain the Board's established relationships with ratepayers at large would be in line with the approach adopted in reviewing the gas and water undertakings' valuations and more recently in the adjustments made to the Scottish Electricity Boards' standard amounts.

We feel that any more radical reappraisal of the Board's contributions to local revenues should be left to the general examination of the rating liabilities of public industries which is to be carried out soon as part of the general financial review associated with the reorganisation of local government. It seems reasonable therefore at this time to maintain the status quo by securing that as nearly as may be the payments by the Board in 1972–73 and subsequent years are the same as they would have been had there been no revaluation. I beg to move.

Moved, That the Draft British Railways Board (Amendment of Certified Amount) (Scotland) Order 1972, laid before the House on July 14, be approved. —(Lord Polwarth.)

8.18 p.m.

LORD HOY

My Lords, may I preface my remarks on this particular Order by saying that earlier in the House to-day there was a protest about the time that business concerning Scotland was taking in your Lordships' House. I have been waiting from 2 o'clock until the present time to get on to Scottish business. I am prepared to tolerate that, but I find it difficult to understand why there should be interposed an Order which had taken 24 years to be promoted in this House. It seems to be going a little too far. I would say to Scottish Office representatives that they ought to get a Whip to look after Scottish affairs in the House of Lords and then we might come on at a more civilised hour.

This' Order is reviewing the quinquennial period, and the noble Lord must be aware that there has always been considerable discontent about this piece of legislation. It may well be that the railways to-day are saying that operational services have been cut in a substantial way, and that they want them increased, but it is true to say that Scottish local authorities have always felt that they have had to carry a considerable burden which ought to have been carried by the railway services. I was interested to hear the noble Lord say that there is to be some review. Can I take it that when the review takes place the views of local authorities will be taken into consideration? If he can assure us of that, I am certain that local authorities in Scotland will welcome the news because one or two in particular feel that the burden they carry at the present time is far too great. If the noble Lord can assure us this evening that this review is going to take place, and will take place shortly—we do not want it put off as long as that of the aircraft industry —and that the local authorities will be consulted with regard to any revised method of valuation, then of course this Order and this debate will have been worth while. I should be grateful for an answer.

LORD POLWARTH

My Lords, I can without hesitation assure the noble Lord that the local authorities will be consulted in the course of this review through their normal associations.