§ Mr. KirkhopeTo ask the Secretary of State for the Environment what conclusions he has reached as a result of the consultative paper "Local Authorities' Interests in Companies" issued in June 1988.
§ Mr. GummerMy right hon. Friends the Secretary of State for the Environment and the Secretary of State for Wales have considered the responses received to the consultation paper and have decided to make a number of amendments to the proposals which are set out in the document which I have today placed in the Library of the House.
The amendments are:
- (i) the addition of mutual companies, combined heat and power companies and waste disposal companies to the categories of companies in which local authorities are permitted to have a minority interest;
- (ii) the exemption of bodies funded by grants under section 56(9)) of the Local Government, Planning and Land Act 1980 which are deducted from the aggregate amount available for block grant; other exemptions will be considered case by case where companies are, in effect, dependent on central Government grant, since their activities can then be monitored in other ways.
- (iii) the relaxation of the proposed rule that companies controlled by local authorities at arm's length should not have any local authority members or officers on the board of the company.
- (iv) the spouses of officers of a local authority will no longer be a category of persons whose involvement in a company would establish a link with a local authority.