Local Government Reorganisation (Hansard, 10 March 1994)

§ Mr. Hall
To ask the Secretary of State for the Environment what representations he has received in support of a single-tier structure of local government.

§ Mr. Baldry
Since we issued our consultation paper on the structure of local government in England in April 1991,370W we have received many representations in favour of single-tier local government structures. They have come from local authorities and other local and national organisations, and from individuals including Members of this House. It is not possible, however, to produce a definitive list except at disproportionate cost.

§ Mr. Vaz
To ask the Secretary of State for the Environment what he expects the transitional costs of reorganisation in the Isle of Wight and Cleveland to amount to in total.

§ Mr. Baldry
We have made no such estimate. We have announced that we are prepared to make available to authorities in the Isle of Wight and Cleveland supplementary credit approvals up to a limit of £9 million in 1994–95. Subject to the approval of their applications for SCAs these arrangements will enable the authorities to borrow to meet specified transitional costs. The amount of SCAs issued will depend on the amounts incurred.

§ Mr. Vaz
To ask the Secretary of State for the Environment (1) how the local authorities in Cleveland and the Isle of Wight are expected to raise the funds to cover the interest on the Government loan to cover the transitional costs of reorganisation;
(2) what interest rate will be charged by the Government on the loan to Cleveland and the Isle of Wight to cover the transitional costs of reorganisation.

§ Mr. Baldry
The authorities in Cleveland and the Isle of Wight will receive supplementary credit approvals up to a specified limit. These will enable them to borrow to meet specified transitional costs and the interest incurred on the borrowing. It is anticipated that the borrowings and rolled up interest will be repaid out of the savings arising from the reorganisations. The rate of interest incurred will depend on the pool, or other, rate at which each authority borrows.