HC Deb 02 December 2002 vol 395 cc635-7W
Mr. Clifton-Brown

To ask the Deputy Prime Minister whether he plans that each order laid before the House under Clause 97 of the Local Government Bill relating to charging and trading will(a) contain aprovision for the Secretary of State to revoke such anorder and (b) specify the circumstances for such a revocation. [84424]

Mr. Leslie

Clause 97 confers powers enabling my right hon. Friend the Deputy Prime Minister by order, to amend, repeal, revoke or disapply the application of any order, to amend, repeal, revoke or disapply the application of any enactment that restricts a best value authority's ability to charge for the provision of a discretionary service or carrying out trading in its functions. By virtue of provisions contained in the "Interpretation Act 1978," it is unnecessary for the order itself to make express provision as to its revocation. Having made an order under clause 97 for the purpose of revoking an enactment which restricts charging or trading, we would not expect to make a further order revoking that initial order.

Mr. Clifton-Brown

To ask the Deputy Prime Minister under clause 99 of the Local Government Bill relating to the Audit Commission assessment of English Local Authorities Performance, whether the Audit Commission will be free to set its own criteria; and what appeal mechanism there will be against a particular assessment. [84425]

Mr. Raynsford

The clause requires the Audit Commission to provide a report on local authorities' performance and to categorise individual authorities. The Commission will be responsible for all decisions on such a report and the categorisations.

The Commission have set out their disputes procedure in the publication "Quality Assurance Procedures and Dispute Resolution for Single Tier and County Councils". Full details are available on the Audit Commission's website at www.audit-commission. gov.uk.

Mr. Clifton-Brown

To ask the Deputy Prime Minister what safeguards there will be to stop trade distortion and unfair competition in the proposed new powers to allow local authorities to trade; and how full cost recovery will be included in the pricing of services or goods traded. [84426]

Mr. Leslie

The power to trade conferred by the provisions is only exercisable through a company within the meaning of Part V of the Local Government and Housing Act 1989. The Competition Act 1998 and the Companies Act 1985 will apply in the normal way to these operations. The new trading powers will therefore be subject to the same regulation as other commercial bodies. This will help ensure a level playing field with private sector competitors.

Clause 97 provides for my right hon. Friend, the Deputy Prime Minister to make an Order enabling best value authorities to trade in any of their ordinary functions. Trading is expected to take place on a commercial basis, that is, charges fixed at more than cost recovery. We expect to issue guidance on the ways in which local authorities may use the powers, aspects of competition law that authorities will need to take into account and how to avoid distortion of markets.

Mr. Clifton-Brown

To ask the Deputy Prime Minister what reason underlies his policy on the abolition of the statutory safeguards relating to local authorities powers to borrow in relation to charging and trading. [84427]

Mr. Leslie

The Local Government Bill makes provision to allow local authorities to borrow for capital expenditure without Government consent, where they can service the debt from their revenues. This freedom would be subject to safeguards for national and local taxpayers. Any borrowing by an authority relating to services where it is exercising its powers to charge or to trade would therefore be subject to these rules.