§ 6.38 p.m.
§ The Earl of Strathmore and Kinghorne rose to move, That the draft orders laid before the House on 24th February and 14th March be approved [10th and 12th Reports from the Joint Committee].
§ The noble Earl said: My Lords, I beg to move that the orders standing in my name on the Order Paper be approved en bloc.
Of the five draft orders before the House today, three relate to Scotland and two relate to England and Wales. First, I wish to say a few words on industrial derating.
554 The progress towards a common poundage and full harmonisation of valuation practice north and south of the Border, have reduced the need for industrial derating in Scotland to be retained. We accordingly are continuing to phase-out industrial derating in Scotland in line with the progressive reduction of rate poundages which continues in 1994-95. Those cuts in poundages next year result in a further reduction in non-domestic rates of £60 million. The Industrial and Freight Transport (Rateable Values) (Scotland) Order 1994 therefore sets a level of industrial derating of 10 percent.—a reduction from 17.5 per cent. in the previous year.
For mines and quarries, the same level of derating is continued by the Mines and Quarries (Rateable Values) (Scotland) Order 1994 which carries forward other valuation provisions, which also apply south of the Border.
Turning to the other Scottish draft rateable values order before the House today, this prescribes a formula for the determination of rateable values for 1993–94 and 1994–95 of Scottish Football League grounds. Scottish Football League clubs, the league itself and the Scottish Football Association have over a number of years argued that the different methods of valuation which apply to this class of subject on either side of the Border have resulted in an unfair rating burden being borne by Scottish Football League clubs. The Government have not felt that it is possible to prove that case with certainty, and have been assured by the Scottish Assessors and Valuation Office Agency jointly that cross-Border harmonisation of values, if not of method, was broadly achieved at the 1990 revaluation. We have however concluded that the method of valuation for this class of subject should be seen to be as similar as possible on either side of the Border in line with our overall harmonisation policy.
Within the draft order before the House today are formulae which seek to mirror the effects of the non-statutory English scheme of valuation. These produce a rateable valuation on the basis of an individual club's home league gate receipts in the antecedent year for the 1990 revaluation. Most affected clubs will benefit from the order although the valuation of a few may rise. Clubs which have incurred significant costs in modernising grounds to meet the requirement of the Taylor Report or which have built new stadia recently are likely to see particular benefit.
Next, I wish to refer to the first draft English and Welsh order before the House: the Telecommunications Industry (Rateable Values) (Amendment) Order 1994. This revises the recalculation factor which is used to update rateable values in England and Wales for Mercury Communications. At present, the revaluation factor works by applying a formula based on cable lengths to England and Wales separately. The existing factor has had the effect of increasing the company's rateable value in Wales by some £21,000 for each extra kilometre of cable laid, whereas in England the equivalent figure is only £2,000. To resolve this inequality, the order before the House provides for the recalculation factor to be based on increases in length in 555 England and Wales together for the year 1994–95. Similar provisions apply in respect of other industries south of the border, including British Telecom.
Finally, I come to the other draft English and Welsh order. This makes provisions for the change in rateable occupation of railway property as a consequence of the privatisation of rail services. The provisions of the Railways Act 1993 allow for transfers of property between the British Railways Board and other companies. the largest of these transfer schemes is the one that concerns Railtrack. On 1st April Railtrack plc will become a new government owned company and the occupier of the majority of the property previously owned by the board.
The order simply divides what would have been the board's rateable values for 1994–95 between the board and Railtrack. The ratio of the split is 95 per cent. for Railtrack and 5 per cent. for British Rail. The values are given separately for England and Wales. Similar provisions will be proposed for Scotland but, owing to the different statutory framework, they will be brought forward at a later date, along with related matters concerning Scottish public utility rateable values for next year.
The provisions of these orders have been the subject of formal consideration with ratepayers and others concerned. I believe that the measures that I have described represent fair and reasonable proposals. I commend them to your Lordships.
Moved, That the draft orders laid before the House on 24th February and 14th March be approved [10th and 12th Reports from the Joint Committee].—(The Earl of Strathmore and Kinghorne.)
§ On Question, Motion agreed to.