§ Mr. AllenTo ask the Secretary of State for the Environment whether he has any plans to tighten the current regulations regarding the declaration of shareholdings by local authority councillors; and if he will make a statement.
§ Mrs. Virginia BottomleyThe White Paper on "Conduct of Local Authority Business" (Cm. 433) sets out the Government's plans for strengthening the statutory controls on councillors' pecuniary interests, such as shareholdings. These involve legislating to require local authorities to set up a register of pecuniary interests. Failure to declare information for the register or provision of incorrect information would be a criminal offence.
The register will serve to reinforce, but not replace, the current legislation which requires that a councillor must disclose any pecuniary interest in a matter coming before the council. The current disabilities on speaking and voting will remain as the main safeguard, with the Secretary of State retaining the power to grant dispensations.
We have set up a working group with the local authority associations to consider the scope of the register, but it is envisaged that company interests such as shareholdings would be covered.