HL Deb 02 March 1998 vol 586 cc1035-6

8.20 p.m.

Lord Sewel rose to move, That the draft order laid before the House on 15th January be approved [20th Report from the Joint Committee].

The noble Lord said: My Lords, the draft order before the House tonight is a straightforward provision which is necessary to maintain cross-border harmonisation of valuation practice. A discrepancy exists in respect of seaward jusrisdiction. In England and Wales and in Northern Ireland the extent of local authorities' seaward boundaries for valuation and other purposes is defined in statute. Pipelines extending out to sea there are non-rateable. In Scotland, however, the seaward boundaries of local authorities for valuation and other purposes are substantially undefined except for some subjects such as coal-mines, piers and bridges which have been held by courts to be properly entered in the valuation roll. Legislation exists to exempt certain offshore installations from entry in the valuation roll. However, the assessor for Dumfries and Galloway has concluded, after taking legal opinion, that the Premier Transco and Bord Gais Eireann (the Irish gas board) undersea gas pipelines are not covered by the existing provisions and has entered valuations in the roll for them. We accept that the current regulations are not clear and this draft order, made under provisions of the Valuation and Rating (Exempted Classes)(Scotland) Act 1976, clarifies the position. It excludes those parts of the pipelines lying seaward of the low water mark of ordinary spring tides from the valuation roll. This order will ensure that cross-border harmonisation of the valuation practice is maintained. I commend the draft order to the House. I beg to move.

Moved, That the draft order laid before the House on 15th January be approved [20th Report from the Joint Committee].—(Lord Sewel.)

The Earl of Courtown

My Lords, I thank the Minister for his explanation of the order to me and other noble Lords. We support the order but there are one or two small points which I hope the noble Lord will be able to clarify for me. Can he tell me whether any other pipelines under the sea are rateable? How will new pipelines, when laid, be treated? If the legislation going through another place at the moment concerning devolution becomes law, how will pipelines supplying gas or oil from Scotland to England or Wales be treated; and, if rateable, how will the rateable value be calculated?

The noble Lord said that each new pipeline will be considered on its own merits. What guidance will be given by the Government as to how they are to be rated? I know that I have asked one or two questions more than perhaps the Minister was expecting. I would be only too happy to have answers by letter.

Lord Sewel

My Lords, I thank the noble Earl for his helpful observations on this particularly abstruse matter. He asked a number of questions, all of which I had failed to anticipate, so I will rely to a large extent on writing to him. However, I can give him some words of assurance and comfort in that I think that, as a result of the order, we are tidying up one of the last remaining anomalies in terms of achieving cross-border harmonisation. So I doubt whether there are any other examples of pipelines being treated differently north and south of the Border. But if there are, I will ensure that the noble Earl is informed about them.

The noble Earl has obviously been in cahoots with some of his noble colleagues and has raised yet again the prospect of devolution. We look forward to devolution. I have to tell the noble Earl that, following devolution, valuation will be a devolved matter, but we are working to achieve cross-border harmonisation. Work that one out!

On Question, Motion agreed to.

Baroness Farrington of Ribbleton

My Lords, I beg to move that the House do now adjourn during pleasure until 8.35 p.m.

Moved accordingly, and, on Question, Motion agreed to.

[The Sitting was suspended from 8.24 to 8.35 p.m.]