§ Mr. Ashtonasked the Secretary of State for the Environment (1) if he will issue advice to local authorities suggesting that councillors with financial interests in conveyancing of houses should not vote in matters of council house sales in the light of the evidence sent to him by the hon. Member for Bassetlaw;
(2) whether he will introduce legislation to prevent councillors who are solicitors or who may have a financial 973W interest in the conveyancing of houses from voting to sell council houses;
(3) in what circumstances councillors are allowed not to declare their financial interest in council decisions which may be beneficial to them.
§ Mr. John SilkinUnder Sections 94 to 98 and 105 of the Local Government Act 1972, councillors who have a pecuniary interest in matters being discussed by their council are required to declare that interest and are prohibited from speaking or voting unless they have a dispensation from the Secretary of State. A member is not obliged to declare an interest where it is so remote or insignificant that it is unlikely to affect his judgment, or where a general dispensation exists as in the case of tenants of unfurnished accommodation. But the responsibility for deciding initially whether a pecuniary interest exists in any given situation rests with the individual member.
I have not yet received the evidence to which my hon. Friend refers, but the law on pucuniary interests as set out in the 1972 Act, and as explained in DOE Circular 105/73 would seem to meet the points he has raised. The law on this matter is being examined in the light of the Salmon Commission recommendations and a statement will be made in due course.