HL Deb 14 March 1983 vol 440 cc544-5

7.42 p.m.

The Earl of Gowrie rose to move, That the draft order laid before the House on 22nd February be approved.

The noble Earl said: My Lords, the order is short and uncomplicated and basically seeks to do three things to require only one rates demand to be issued to ratepayers each year, instead of the current half-yearly billing; to allow discount for prompt payment of domestic rates only if the full amount of rates is paid as a single sum; and to provide for the partial exemption from rates of non-domestic hereditaments which straddle the boundaries of enterprise zones.

The provisions on annual billing and on discounts for domestic ratepayers have resulted from a package of proposals made by a team of officials working in consultation with Sir Derek (now Lord) Rayner. This team was charged with the task of considering ways of improving efficiency and reducing the cost of rate collection in Northern Ireland. I was the overseeing Minister in respect of this exercise.

In relation to the first objective of the order—that is, annual instead of twice-yearly billing—this will facilitate the introduction of a new computerised rate collection system which we hope will start on 1st April 1983. This change will reduce administrative costs and will enable action for the recovery of arrears of rates to begin earlier in the rating year and take account of the full year's rates. Similar procedures have been introduced by many local authorities in England and Wales with a resultant reduction in costs and an improvement, of course, in cash flow. I can assure the House that ratepayers will not suffer any inconvenience as a consequence of this proposal.

When the draft order was published on 29th November 1982, it was proposed to raise the level of discount from 2½ to 3½ per cent. However, the position has been re-examined in the light of trends in interest rates and analyses of the costs of operating the new system. I am pleased to say that the Government are prepared to raise the proposed level of discount even higher; that is, to 4 per cent. In arriving at this increased figure, close attention was paid to the comments made during the debate on the order by the Northern Ireland Assembly. Indeed, this proposal was the first to be considered by the Assembly which took note of the proposal and passed an amendment to the effect that the amount of rates due should be payable in two moieties before appropriate dates at 3½ per cent. discount.

In the course of that debate on the draft order reference was made to the position of ratepayers following the introduction of the new procedures. I am, of course, very conscious of the need to facilitate ratepayers in making payments and dealing with any problems or queries they might have. In relation to the payments, I am pleased to be able to say that arrange- ments have now been made with the Post Office whereby payments can be made through the National Giro Bank, and the cost of transactions will be paid by the department. As I mentioned earlier, domestic ratepayers can choose to pay their rates by 10 instalments, two half-yearly payments, or in a single sum for discount.

The House will recognise therefore that the general effect of the order is to streamline rate collection procedures and so increase the efficiency of the administering department. At present the rate collection arrangements in Northern Ireland are being reorganised and the changes proposed in this new order will form an integral part of a new computerised rate collection system. When this reorganisation is complete and the new procedures proposed here are fully implemented savings of £1 million a year will be realised. I commend the order to the House.

Moved, That the draft order laid before the House on 22nd February be approved.—(The Earl of Gowrie.)

Lord Underhill

My Lords, in welcoming the explanation given by the noble Earl, may I ask one question? There is to be a saving as a result of this single billing. Can the noble Earl indicate whether this will lead to redundancies and tell us the number of jobs likely to be affected? What will be the net effect of the saving in view of the heavy unemployment position in Northern Ireland and the net loss that will be encountered by paying out unemployment benefit and losing tax revenue?

The Earl of Gowrie

My Lords, I hesitate to be drawn into the macro-economic argument with the noble Lord. The saving of public monies is essential to maintain employment. It is not deleterious to employment. No individual jobs that I know of are lost by this saving, although it should be—and I hope it may well be—that those engaged in public administration in respect of the grades for whom, as I have said, I am responsible will he more usefully and more productively employed.

On Question, Motion agreed to.