HL Deb 22 July 1991 vol 531 cc629-30

1.20 a.m.

The Earl of Strathmore and Kinghorne rose to move, That the draft order laid before the House on 27th June be approved [24th Report from the Joint Committee].

The noble Earl said: My Lords, the two draft orders laid before your Lordships' House on 27th June 1991 for approval prescribe rateable values for 1991–92 for the operational lands and heritages of the Forth Ports Authority and Caledonian MacBrayne Limited. The rateable values for other statutory dock and harbour authorities in Scotland are also calculated by formula as prescribed by the Secretary of State in an order approved in 1990. In their case the annual revisions are made by the regional assessor in the area in which the undertaking is located.

FPA and Cal-Mac are treated separately because in each case the lands concerned span more than one valuation area. Consequently, it would be awkward to have their valuations carried out by different regional assessors acting independently. We have therefore arranged for the valuations of those two undertakings to be calculated by officials following the same method as is applied to the other statutory port authorities, then to be apportioned among the local authorities concerned and for the resulting rateable values to be prescribed by order.

Statutory docks and harbour undertakings have been assessed for rating by formula valuation prescribed by the Secretary of State for many years. Nevertheless, we are reviewing the need for this approach to the valuation of the various statutory and other utility undertakings with the aim of implementing any advisable changes in 1995, the year of the next revaluation. The method of valuation used to assess the rateable value shown in the draft orders before your Lordships is to assess rateable value at 9 per cent. of the relevant income of the undertaking. Relevant income is the total income for the year less that for certain defined activities which are not related to the occupation of property or are connected with properties separately assessed.

In order to ensure harmony of treatment between Scotland, England and Wales, the method and percentage used for assessing other statutory ports are the same throughout Great Britain. The apportionment of the rateable value of each undertaking among the relevant local authorities is made on the basis of its relevant income in each area. The FPA and Cal-Mac, again in common with the other statutory port authorities, are subject to the annual transitional limits on increases and decreases in rateable values resulting from the revaluation in 1990. Where those limits are still relevant for 1991 and 1992 they have been applied to give the rateable values shown in the schedules to the orders.

The assessments and provisions contained in the orders have been the subject of consultations with the two undertakings concerned; that is, with the Convention of Scottish Local Authorities and also with the Scottish Assessors' Association. All are content with the draft orders and I commend them to your Lordships.

Moved, That the draft order laid before the House on 27th June be approved [24th Report from the Joint Committee].—(The Earl of Strathmore and Kinghorne.)

Lord Carmichael of Kelvingrove

My Lords, I thank the noble Earl for his full explanation. I read the Standing Committee report in another place and was glad to note that the noble Earl emphasised again that there were certain difficulties in the method of applying valuation principles to a network that crosses several valuation area boundaries. The Minister in another place, Mr. Allan Stewart, pointed out, as did the noble Earl, that the next revaluation in 1995, which would be the earliest date at which a change could be made, will help the assessors to collect essential information about each undertaking.

I understand that CoSLA and the Scottish Assessors' Association are content with the orders, and with the formula upon which they are based. Therefore, having read the report and heard the full explanations given by Mr. Allan Stewart in another place, supplemented by those of the noble Earl this evening, I am happy to agree to the orders.

On Question, Motion agreed to.