Local Government Reform

HC Deb 25 October 1984 vol 65 cc691-701W

Mr. Parry

asked the Secretary of State for the Environment what is the estimated cost to the Liverpool city council of taking on the liabilities of the Merseyside county council in event of abolition; if these costs will include further rate-capping penalties; and if he will make a statement.

Mr. Patrick Jenkin

It is too early to say. Much will depend on how Merseyside organises its spending next year—its last year of existence.

Mr. Tony Banks

asked the Secretary of State for the Environment if he intends to consult the Greater London council, the London boroughs, the local authority associations and voluntary housing bodies over the changes to his proposals to abolish the Greater London council housing role from those outlined in "Streamlining the Cities", Cmnd. 9063.

Sir George Young

The changes we have announced have been designed to meet many of the concerns expressed by those responding to "Streamlining the Cities" and the associated consultation paper. When making the announcements, we promised further consultation with those affected on the details of the new arrangements.

Mr. Tony Banks

asked the Secretary of State for the Environment what response was made by the London boroughs of Greenwich and Bexley to the proposal in paragraph 18 of his consultation paper "Streamlining the Cities: Housing" that the Greater London council's dwellings at Thamesmead should be transferred to one or both of the boroughs in which they lie in the event of the Greater London council being abolished.

Sir George Young

Greenwich foresaw practical problems in taking on the public sector housing stock, which would require a considerable lead-in period. Bexley considered that, pending a review of boundaries, management of the stock should pass to Greenwich alone.

Mr. Tony Banks

asked the Secretary of State for the Environment when he expects to announce his proposals for the future of Thamesmead in the event of the Greater London council being abolished.

Sir George Young

We have already announced that we are now exploring in detail the possibility of transferring ownership to a trust along the lines of the Stockbridge village trust at Knowsley. We intend to undertake full consultation with the tenants at Thamesmead before reaching a decision.

Mr. Tony Banks

asked the Secretary of State for the Environment how many responses he received from consortia of private developers to the invitation extended in paragraph 19 of the consultation paper "Streamlining the Cities: Housing" to contact him concerning the possible sale of the development land at Thamesmead.

Sir George Young

The responses we received are regarded as being a matter of commercial confidence.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) which body will be responsible for assessing the housing requirements of London as a whole, in the event of the Greater London council being abolished;

(2) what account he has taken of the response received to the proposals in "Streamlining the Cities; Housing" to repeal without replacement the Greater London council's statutory duty to carry out research and provide information on London's housing in formulating his latest proposals for abolishing the Greater London council.

Sir George Young

We have carefully considered the responses received but concluded that we should adhere to our original proposals.

Mr. Tony Banks

asked the Secretary of State for the Environment how he intends to ensure that the London Planning Commission will have adequate up-to-date London-wide data on which to base its advice on strategic minerals policies matters in the event of the abolition of the Greater London council.

Mr. Macfarlane

It will be for the London Planning Commission to decide how best to advise my right hon. Friend on strategic issues such as minerals planning.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) if, in taking account of the Greater London council's statutory duty to renovate the housing stock transferred to the London boroughs in the mechanism to ensure that the broad financial effects of the Greater London council's obligatory revenue contributions are maintained in the event of the Greater London council being abolished, he will ensure that individual boroughs receive the same annual sum as they would have received from the Greater London council in the event of the Greater London council being abolished;

(2) if he will ensure that no individual London borough suffers any additional net cost as a result of the removal of the Greater London council's statutory obligations to make revenue contributions under the housing transfer orders in the event of the Greater London council being abolished;

(3) what will be the mechanism for maintaining the broad financial effects on transferred authorities of the Greater London council's obligatory revenue contribution under the housing transfer orders in the event of the Greater London council being abolished.

Sir George Young

We intend that the broad financial effect on individual boroughs of the GLC's obligatory revenue contributions should be maintained through the arrangements for rate support grant distribution following the GLC's abolition.

Mr. Tony Banks

asked the Secretary of State for the Environment what factors he will take into account in setting the upper limit for expenditure on the collective funding of voluntary bodies by the London boroughs, in the event of the Greater London council being abolished.

Mr. Waldegrave

The consultation paper issued on 20 September set out the Government's preliminary view that a limit of £10 million a year in Greater London would be appropriate. We have undertaken to consider this further when more detail about existing grant-giving becomes available and in the light of plans for the use of the collective arrangements.

Mr. Tony Banks

asked the Secretary of State for the Environment if spending by individual boroughs under the proposed arrangements for the collective funding of voluntary housing bodies in the event of the Greater London council being abolished will count against their spending targets.

Sir George Young

No decisions have been taken on the formulation of spending targets, if any, for 1986–87 and for subsequent years.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) what method will be used to distribute to the London boroughs that part of the Greater London housing investment programme allocation which would have gone to the Greater London council, in the event of the Greater London council being abolished;

(2) if London borough housing investment programme allocations will be increased so as to allow ex-Greater London council housing stock transferred to the London boroughs to be renovated to modern standards by 1992 with no detrimental effect on other borough capital programmes, in the event of the Greater London council being abolished;

(3) what effect his proposals for abolishing the Greater London council will have on commitments to renovate ex-Greater London council housing stock transferred to the London boroughs, as set out in the transfer orders.

Sir George Young

The entire London housing investment programme allocation will be distributed among the boroughs, taking account of their needs for capital expenditure on housing, including such liabilities as they inherit from the Greater London council. It will be for the borough councils to decide the purposes for which they use the capital resources available to them, in the light of local needs and priorities.

Mr. Tony Banks

asked the Secretary of State for the Environment how many different bodies will assume responsibility for part of the Greater London council's housing activities in the event of the Greater London council being abolished.

Sir George Young

In addition to the councils of London boroughs and the corporation of the City of London, the councils of non-metropolitan districts with GLC seaside and country homes—which already have housing responsibilities—my right hon. Friend the Secretary of State, the Greater London residuary body and possibly a trust for Thamesmead. It will be for these bodies to decide whether, within their powers, to involve other organisations in the exercise of these responsibilities.

Mr. Tony Banks

asked the Secretary of State for the Environment if capital receipts from the sale of Greater London council housing land would be made available to the London boroughs to supplement their housing programmes in the event of the Greater London council being abolished.

Sir George Young

We intend that in general the prescribed proportion of receipts generated by the Greater London residuary body through the disposal of surplus property should be made available to the boroughs.

Mr. Tony Banks

asked the Secretary of State for the Environment if the ownership of the Greater London council seaside and country homes will pass to the district councils in which they lie in the event of the Greater London council being abolished.

Sir George Young

This is the intention, subject to the vesting in the Secretary of State of nomination rights to the great majority of the lettings.

Mr. Tony Banks

asked the Secretary of State for the Environment what proposals will be made for funding voluntary housing bodies active in more than one borough if the prescribed majority of London boroughs decided not to utilise the proposed statutory machine for collective funding in the event of the Greater London council being abolished.

Sir George Young

If the London boroughs decided not to use the proposed machinery for collective grant-giving, voluntary organisations would have to seek funding from individual boroughs and other existing funding bodies. One of the objectives of abolition is to put these kinds of decision into the hand of the most accountable elected local councillors, which is where they properly belong. The London Boroughs Association has already announced its decision to invite 61 organisations providing for the single homeless to apply for grants under the proposed collective arrangements.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) if he will ensure that the distribution to the London boroughs of capital receipts from the Greater London council mortgage account will reflect the location of housing association schemes originally funded by the Greater London council and needing additional funding for repair works, in the event of the Greater London council being abolished;

(2) if he will ensure that the distribution to the London boroughs of capital receipts accruing to the Greater London council mortgage account will match the current pattern of the Greater London council's spending of those receipts, in the event of the Greater London council being abolished;

(3) if all the prescribed proportion of the capital receipts accruing to the Greater London council mortgage account will be distributed to the London boroughs in the event of the Greater London council being abolished;

(4) which body will be responsible for distributing to the London boroughs the capital receipts accruing from the Greater London council mortgage account in the event of the Greater London council being abolished; and on what basis the distribution will be made.

Sir George Young

Paragraphs 2.6.6 of my Department's publication of 31 July on the transfer of functions announced that in general the capital receipts associated with the Greater London council's mortgage account would become available to the councils of the London boroughs. The detailed arrangements involved will be announced in due course.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) what will happen to the capital receipts from housing association schemes originally funded by the Greater London council, in the event of the Greater London council being abolished;

(2) which bodies will be responsible for funding repair work on housing association schemes originally funded by the Greater London council, in the event of the Greater London council being abolished;

(3) when he expects to announce his proposals for the arrangements for dealing with housing association schemes originally funded by the Greater London council in the event of the Greater London council being abolished.

Sir George Young

An announcement about the arrangements for housing association schemes will be made as soon as possible.

Mr. Tony Banks

asked the Secretary of State for the Environment what plans he has to consult individual mortgagors over his proposal to transfer the Greater London council's mortgage account to a successor body, in the event of the Greater London council being abolished.

Sir George Young

I shall answer this question shortly.

Mr. Tony Banks

asked the Secretary of State for the Environment what practical measures he proposes to increase the attraction of the eastern sectors of Greater London and to steer developments to those sectors in line with his letter of 23 March to the chairman of the erstwhile standing conference on London and south-east regional planning; in the event of the Greater London council being abolished, what effective strategic machinery will be provided to this end; and what additional resources will be made available to increase the attractiveness of the eastern side of Greater London.

Mr. Waldegrave

My right hon. Friend's letter of 23 March to the standing conference was strategic guidance of the sort which might well be issued to local planning authorities post-abolition, following advice to my right hon. Friend from the proposed London planning commission. As the letter pointed out, the effective attraction of development towards the eastern sector of Greater London will require the active co-operation of all the agencies involved, in conjunction with the development control policies of the local planning authorities throughout the region. It was the failure of the GLC to provide effective machinery for increasing the attractiveness of London's east end which led this Government to establish the London Docklands Development Corporation.

Mr. Tony Banks

asked the Secretary of State for the Environment if he has set up a Greater London department within the Department of the Environment.

Mr. Patrick Jenkin

No.

Mr. Tony Banks

asked the Secretary of State for the Environment what assessment he has made of the additional professional staff in his Department who will be required to prepare and consult on the strategic policy guidance he proposes to issue to the London boroughs in the event of the abolition of the Greater London council, to co-ordinate the preparation of their separate unitary plans, to check that the unitary plans are in conformity with it and to ensure a satisfactory coverage of unitary plans throughout Greater London.

Mr. Macfarlane

The need for any additional staff in the Department as a result of the new planning arrangements for London will be minimal, and will be more than offset by the huge savings in staff at present employed by the GLC.

Mr. Tony Banks

asked the Secretary of State for the Environment how the content of the strategic guidance he proposes to issue to borough and district authorities for incorporation into their unitary plans in the event of the abolition of the Greater London council will differ from the provisions of a structure plan prepared under existing provisions.

Mr. Waldegrave

It is too early to say. Any strategic guidance that my right hon. Friend issues will be the subject of consultation with the London boroughs and will be directed to helping them prepare their unitary plans which will replace the Greater London development plan.

Mr. Tony Banks

asked the Secretary of State for the Environment if he will list by name those who commented on the White Paper "Streamlining the Cities", Cmnd. 9063, with specific reference to minerals planning issues, distinguishing (a) those who believed that a single strategic mineral planning authority for London would be desirable after the abolition of the Greater London council and (b) those who thought that powers should be devolved to the London boroughs.

Mr. Macfarlane

No. It is for those who have made comments to decide whether the content of these should be revealed.

Mr. Tony Banks

asked the Secretary of State for the Environment on what basis the members of the residuary bodies in the proposals for the abolition of the Greater London council will be selected.

Mr. Waldegrave

My right hon. Friend will appoint members of the Greater London residuary body with the personal qualifications appropriate to discharging the responsibilities laid upon them.

Mr. Tony Banks

asked the Secretary of State for the Environment when he expects to announce the figure deemed to be the prescribed majority of the London boroughs, which would be required for his proposals for the collective funding of voluntary bodies to function, in the event of the Greater London council being abolished; and what factors he will take into account in fixing the level in the prescribed majority.

Mr. Waldegrave

The consultation paper issued on 20 September set out the Government's proposal that the required majority should be a two-thirds majority of all the councils in an abolition area.

Mr. Tony Banks

asked the Secretary of State for the Environment what default powers he intends to take to compel individual London boroughs to contribute to the cost of funding voluntary housing bodies following agreement by the prescribed majority of boroughs under the proposed statutory provision for collective funding, in the event of the Greater London council being abolished.

Sir George Young

The Government intend to provide in legislation that once a grant has been agreed under the collective arrangements it will be mandatory on all boroughs to contribute the appropriate proportion.

Mr. Tony Banks

asked the Secretary of State for the Environment if he will seek statutory powers to ensure that the statutory housing improvement areas declared by the Greater London council continue in the event of the Greater London council being abolished.

Sir George Young

No. It will be for individual borough councils to decide, in the light of local needs and priorities, whether such areas should be continued or terminated.

Mr. Tony Banks

asked the Secretary of State for the Environment what will be the short-term net additional cost to the taxpayer of transferring responsibility for the Greater London council's statutory housing improvement areas to the London boroughs if the Greater London council is abolished.

Sir George Young

None.

Mr. Tony Banks

asked the Secretary of State for the Environment what representations he has received about his proposals for unitary plans in Greater London; and how many have been favourable to the Government's policy.

Mr. Waldegrave

The proposals for unitary development plans were published in the "Revised Proposals Paper" on "The Reallocation of Planning Functions in the Greater London Council and Metropolitan County Council Areas". This was a response to consultation carried out last autumn and it did not invite further representations.

Mr. Tony Banks

asked the Secretary of State for the Environment what discussions he has now held with boroughs over collective arrangements for the funding of vountary housing bodies in the event of the Greater London council being abolished; if he will list the boroughs which have participated; and if he intends to consult the Greater London council and the boroughs in membership of the Association of London Authorities over the proposed statutory provision for collective funding by boroughs.

Sir George Young

We have held a number of discussions with the London Boroughs Association. A consultation document discussing the Government's proposals in relation to local authority support for the voluntary sector generally after abolition, including the proposed statutory provision for collective funding by boroughs, was sent to all London borough councils and the GLC on 20 September. A copy has been placed in the Library of the House.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) if he is now in a position to make a statement flout when he will announce the terms of reference of the proposed London Planning Commission; what is the time scale for it to prepare its advisory strategic guidance for London once it is established; and what are the staffing resources it will require to do this;

(2) if he is now in a position to make a statement on when the London Planning Commission will be set up; and what will be its proposed membership from (a) the private sector, (b) environment groups, (c) local authorities and (d) trades unions.

Mr. Macfarlane

Decisions on these matters remain to be taken.

Mr. Tony Banks

asked the Secretary of State for the Environment if he is now in a position to make a statement on his consultations with representatives of the lords lieutenant concerning arrangements for support after the abolition of the Greater London council and the metropolitan county councils.

Mr. Waldegrave

Discussions have been held with the lord lieutenants and I have no reason to suppose that problems will arise.

Mr. Tony Banks

asked the Secretary of State for the Environment if he is now in a position to make a statement on whether he will list the London borough councils counted as being in favour of the proposal and those counted as being against the proposal in table 4 (Housing) of part II of the report of the consultation on "Streamlining the Cities", Cmnd. 9063.

Sir George Young

I refer the hon. Member to the reply I gave on 13 June at column493.

Mr. Tony Banks

asked the Secretary of State for the Environment if he will list the voluntary bodies which have informed him that they are reassured by the letter from the London Borough's Association to the Parliamentary Under-Secretary of State concerning collective funding of voluntary bodies by the London boroughs in the event of the Greater London council being abolished.

Mr. Waldegrave

We have received no comments from any of the 61 voluntary organisations which the London Boroughs Association has already decided to apply for grants under the proposed collective funding arrangements.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) when he expects to announce who would run the Greater London council seaside and country homes scheme in the event of the Greater London council being abolished;

(2) which body would be responsible for monitoring the London-wide housing mobility scheme in the event of the Greater London council being abolished; and which body would approve the fixing of quotas to individual boroughs;

(3) when he expects to announce which body would be responsible for running a London housing mobility scheme in the event of the Greater London council being abolished;

(4) what administrative and financial benefits he anticipates will accrue from his proposal for housing mobility in the event of the Greater London council being abolished.

Sir George Young

An announcement about the detailed administrative arrangements will be made in due course.

Mr. Tony Banks

asked the Secretary of State for the Environment what powers he intends to take to ensure that vacancies in the Greater London council's seaside and country homes are made available to elderly Londoners in the event of the Greater London council being abolished.

Sir George Young

We intend that the main abolition legislation should vest in the Secretary of State rights to nominate tenants to vacancies arising.

Mr. Tony Banks

asked the Secretary of State for the Environment if he has consulted individually the district councils in whose areas lie the Greater London council's seaside and country homes, over the future of those dwellings in the event of the Greater London council being abolished.

Sir George Young

No. I have consulted the Association of District Councils.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) if he will ensure that all the Greater London council's seaside and country homes remain available for letting and that lettings will be restricted to the elderly, in the event of the Greater London council being abolished;

(2) what provision he intends to make regarding profits accruing from the sale of any of the Greater London council's seaside and country homes in the event of the Greater London council being abolished.

Sir George Young

As I said in my speech of 17 May at columns 621–22, we intend that the London boroughs collectively should have access to the lion's share of the lettings and that fair financial arrangements should be made reflecting the benefits obtained.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) if the proposed London-wide housing mobility scheme will relate to ex-Greater London council stock or to all local authority stock in London in the event of the Greater London council being abolished; and if the proportions of vacancies will be the same as those due to be incorporated into the London area mobility scheme;

(2) if the pool of lettings for the proposed London-wide housing mobility scheme will be a proportion of all new vacancies in that part of London's local authority housing stock chosen for inclusion in the scheme in the event of the Greater London council being abolished; and if there will be control over the quality of stock in the pool similar to that for the Greater London mobility scheme.

Sir George Young

We intend that the main abolition legislation should confer on the Secretary of State nomination rights equivalent to those held by the GLC under the GLC Housing Transfer Orders 1980–83.

Mr. Tony Banks

asked the Secretary of State for the Environment who will be responsible for remedying major technical problems in housing transferred from the Greater London council to district councils outside London in the event of the Greater London councl being abolished.

Sir George Young

The district councils to which the property belongs, with the benefit of the financial arrangements proposed at paragraph 2.6.3 of my Department's publication of 31 July on the transfer of functions.

Mr. Tony Banks

asked the Secretary of State for the Environment if, in the event of the Greater London council being abolished, he will ensure that authorities with town development schemes and districts in receipt of housing stock transferred from the Greater London council will incur no net additional cost as a result of the abolition of the Greater London council.

Sir George Young

I refer the hon. Member to paragraphs 2.6.2 and 2.6.3 of my Department's publication of 31 July on the transfer of functions, a copy of which has been placed in the Library.

Mr. Tony Banks

asked the Secretary of State for the Environment to whom financial liability for defects in housing in town development schemes will pass after the London residuary body has been wound up, in the event of the Greater London council being abolished.

Sir George Young

As paragraph 2.27.4 of my right Friend's July paper makes clear, it will be for the Greater London residuary body to propose arrangements for the subsequent allocation[...]of any town development scheme liabilities which it has not been able to discharge during its own period of operation; and for my right hon. Friend to make provision accordingly.

Mr. Tony Banks

asked the Secretary of State for the Environment (1) what is the number of civil servants in his Department he expects to be employed on work associated with processing expenditure incurred by the Greater London council and the metropolitan county councils under section 137 of the Local Government Act 1972 after May 1985;

(2) how many civil servants in his Department are employed on work associated with processing financial transactions of over £100,000 arising from the Greater London council and the metropolitan county councils.

Mr. Waldegrave

Sufficient to ensure that applications referred to the Department under the Local Government (Interim Provisions) Act 1984 are dealt with expeditiously.

Mr. Tony Banks

asked the Secretary of State for the Environment if he will list the London boroughs which did not comment on particular housing issues in their response to "Streamlining the Cities" but indicated their general view of opposition to the proposal to abolish the Greater London council.

Sir George Young

Barking, Brent and Hounslow.

Mr. Tony Banks

asked the Secretary of State for the Environment how much staff time he anticipates the 11 London borough councils with mineral workings will need to devote to minerals planning issues if the Greater London council is abolished.

Mr. Waldegrave

This cannot be quantified. The work load will depend on a number of factors including how many planning applications are made for mineral extraction in the future.

Mr. Tony Banks

asked the Secretary of State for the Environment if a decision has yet been taken as to responsibility for the honouring of Greater London council warranties in respect of purchasers of ex-Greater London council dwellings in the event of the abolition of the council.

Sir George Young

We intend that valid warranties issued to purchasers in respect of ex-GLC dwellings prior to today's date and the responsibility of the GLC on 31 March 1986 should thereafter become the responsibility of the Greater London residuary body. We shall consider in due course the position of any warranties issued or extended by the GLC from today.

Mr. Tony Banks

asked the Secretary of State for the Environment if the proposed statutory provision for collective funding by the London boroughs of voluntary housing groups in the event of the Greater London council being abolished will include a forum at which such decisions will be taken.

Sir George Young

It will be for the boroughs to decide on the working arrangements to be adopted, but the consultation papers of 20 September suggested that they might nominate a single authority or a joint committee to handle applications for grant.

Mr. Evennett

asked the Secretary of State for the Environment whether he is yet able to make a statement on the management of mortgages after the abolition of the Greater London council and the metropolitan county councils.

Sir George Young

My right hon. Friend has decided that the estimated 60,000 mortgages of residential property held by the GLC should be transferred to the residuary body which will manage the residual affairs of the GLC after its abolition.

All the rights of borrowers under their mortgage deeds will be preserved. About half of the mortgages held by the GLC are on fixed interest rate terms. Those terms will be unaffected by the transfer. We will give directions to the residuary body as to its management of the transferred mortgages. In particular, it will be directed to charge rates of interest on variable rate loans on the same basis as now applies to local authority mortgages generally.

Directions will also be given as to the treatment of those falling into mortgage arrears. The residuary body will be required to have regard to guidance based on the existing best practice of the major mortgage lenders, including local authorities.

It will be the task of the residuary body to secure, so far as possible, the refinancing of the transferred mortgages with reputable private sector lenders. However, we recognise the legitimate concern of house owners as to who will take over their mortgage and the terms on which they do so, and no mortgage will be transferred unless the individual borrower has given his approval.

I am confident that, with an imaginative approach by the residuary body, a large proportion of the outstanding loans can be refinanced on this basis. Borrowers will gain the advantage of easier access to further loans for home improvement or to move house. The capital receipts generated by the disposals will increase the resources available to the London boroughs.

When the residuary body itself comes to be wound up, some mortgages are likely to remain in its stewardship. We have reached no firm view as to which public authority should become responsible for those mortgages. A final decision will be taken in the light of the number of mortgages then remaining.

The metropolitan county councils are not housing authorities and the number of residential mortgages held by them is very much smaller. Comparable arrangements to those described above will be applied to such holdings, however.

The arrangements we are proposing provide reassurance to borrowers from the GLC and MCCs that they need have no concern about their mortgage affairs as a result of the abolition of these authorities.