HL Deb 24 July 1984 vol 455 cc278-80
Baroness Gardner of Parkes

asked Her Majesty's Government:

What specific measures they intend to take to prevent the Greater London Council and metropolitan county councils from disposing of their resources in advance of the abolition of those authorities.

Lord Bellwin

In order to protect ratepayers in all successor authorities and maintain equity between them we shall seek in the main abolition Bill this autumn Parliament's retrospective approval to a measure whereby all provision of financial assistance by the GLC and the metropolitan county councils to the London boroughs, to metropolitan district councils or to any other local authority will require the specific consent of my right honourable friend the Secretary of State for the Environment. Similarly any means whereby the GLC and metropolitan county councils propose to finance activities undertaken by other local authorities under agency arrangements will also require consent. This control will apply to all such transactions or arrangements entered into with effect from today, 24th July 1984, other than payments made under Section 137 of the Local Government Act 1972 which were dealt with in my earlier statement of 26th June 1984. [Vol. 453, col. 904–905.]

In the event of any such transactions or arrangements being entered into by the GLC or MCCs without my right honourable friend's consent in advance of the main abolition Bill passing into law, that Bill will contain proposals enabling the Secretary of State to reserve the right to require the authorities which benefited from these arrangements or transactions to repay the money, with interest, to the donor authority before 1st April 1986.

Measures already in the Local Government (Interim Provisions) Bill will require that any proposals by the GLC and MCCs to dispose of land, and to enter into contracts above a certain value, after the date of Royal Assent to the Bill must have my right honourable friend's consent. Consent will also be required to expenditure under Section 137 of the Local Government Act 1972 (the "2p rate") incurred after 1st April 1985.

We have decided to use the existing powers available under Section 230 of the 1972 Act to require the authorities to supply my right honourable friend with full information about such activities with effect from the date of announcement of the new measures, 12th July 1984. This will enable us to make available information about activities that might be seen by ratepayers to be contrary to their interests. In addition, we are withdrawing, with immediate effect, the present general consents which permit the GLC to dispose of housing land and vacant property for improvement and on-sale. Right-to-buy sales and other sales to sitting tenants and intending owner-occupiers are not affected.

We will continue to monitor the activities of the GLC and MCCs and will not hesitate to take whatever further steps are necessary to prevent irresponsible uses of ratepayers' resources.