HL Deb 05 June 1985 vol 464 cc837-8WA
Earl De La Warr

asked Her Majesty's Government:

What preparations they are making to set up the residuary bodies under Part VII of the Local Government Bill.

The Minister of State, Department of the Environment (Lord Elton)

Under Clause 56 of the Local Government Bill, my right honourable friend the Secretary of State for the Environment is required to establish the residuary bodies on an appointed day or days before the abolition date and to appoint between five and ten members, including a chairman, to each body.

The residuary bodies will have a considerable job to do between Royal Assent and abolition. They will be identifying the property, rights, and liabilities which will fall to them; they will be preparing to assume their tasks at abolition; they will be identifying and approaching the staff they need; and they will be approaching the successor authorities to ensure that, in the course of the transition to the new structure, satisfactory arrangements are made for specialist GLC or MCC units whose services are needed after abolition.

With that in mind, we are taking a number of steps to ensure that the residuary bodies can be set up as soon as is practicable after enactment of the Local Government Bill and can make rapid progress on these tasks.

First, we have commissioned studies, one by Price Waterhouse in respect of London and one by Peat, Marwick, Mitchell in respect of the metropolitan counties, on setting up the residuary bodies and preparing for the assumption of their responsibilities at abolition.

Second, we are taking steps to identify suitable members of each residuary body. We intend to make initial appointments of a chairman and perhaps two or more key members of each body on an advisory basis—in accordance with normal precedent—before the Bill is enacted. Parliamentary approval to the expenditure involved in the period before the residuary bodies are formally established is being sought in the Main Supply Estimate for the Department's Central Administration and Environmental Research Vote, Class VIII, Vote 5. Pending that approval the urgent expenditure will be met by repayable advances from the Contingencies Fund.

In order to facilitate close and effective working between the residuary bodies and successor authorities, we have provided, in an amendment to Clause 56 of the Bill, that one of the members of each residuary body will be appointed from among the members of, and after consultation with, the joint preparatory committee required to be established by the borough and district councils in each area under Clause 94.

In making these appointments we shall be looking for individuals committed to winding-up the residuary bodies in the shortest timescale. The qualities we shall be seeking include general financial experience; public and local government confidence, in relation particularly to management of debt and pension funds; and property expertise.

I am pleased to be able to announce that Sir Godfrey Taylor, current chairman of the Southern Water Authority and a past chairman of the Association of Metropolitan Authorities, has accepted m) right honourable friend's invitation to serve in an advisory capacity with a view to his formal appointment in due course as chairman of the London Residuary Body. On his formal appointment he will be resigning as chairman of Southern Water.

These initial appointments will not prejudge the filling of other appointments after Royal Assent. We regard it as essential that each residuary body should work closely with local government in its area. Experience of local government as elected members or officers will be desirable, but should not be such as to give rise to conflicts of interest in regard to the residuary bodies' dealings with successor authorities.