I am grateful to the Minister for his explanation of the new clauses and amendments. I read them carefully when they were tabled and started to wonder about their purpose, which he helpfully clarified. I have some questions about the measures because I have been in touch with the Local Government Association. While it sees them as a replacement for existing clauses, it is worried about the wide-ranging powers that are being taken and wants clarification of several aspects of the powers.
What prompted the tabling of the new clauses? Have a series of problems been associated with the definitions of entities or the different forms of arm’s length bodies that are run by local authorities? Are we considering purely a series of drafting changes, or do the measures reflect concern that has been raised by auditors or others? Does the fact that the measures have been introduced reveal an underlying worry about the way in which the bodies have been working, or does the Minister believe that this is purely a tidying process?
I was interested by the Minister’s little exchange with my hon. Friend the Member for Lichfield (Michael Fabricant) about the public sector borrowing requirement. The Chancellor’s ability to move things off the balance sheet is legendary. There is no danger of golden rules or anything else being broken while the Chancellor remains in his post, or while he remains Chancellor when he becomes Prime Minister, as he undoubtedly will. His ability to shift things to ensure that he does not break the golden rule will no doubt continue. I am not quite sure whether the powers are needed in such circumstances. We have noted the nifty ability to change golden rules and doubt that that will change much under a future regime.
The new clauses will provide for the original powers, although the provisions have been redrafted. How often have the original powers needed to be used? There are two sorts of power: the power to prohibit or regulate under new clause 22, and the power to apply for consent under new clause 24. Has the Secretary of State used those powers, or have permissions been requested by local authorities? Have the powers been used often, or are they effectively nominal? I am trying to get to the heart of where the measures have come from. Have they arisen due to problems, are they designed to address anticipated problems, or are they purely drafting changes to accommodate the rise of entities in their different forms?
Let me ask a question about the entities themselves. How many are we talking about? Is there are growing trend of such entities in local authorities? To that extent, is the Minister expressing concern that the bodies are moving slightly outside the control of local authorities and the Government? Is there any evidence that the number of entities is growing significantly and that such controls are thus necessary? To what extent does the Minister think that the Government are carrying out an exercise in second guessing?
Although we are considering a devolutionary Bill, we are discussing measures that give the Secretary of State powers that look significant on paper, even though the Government have the back-up position that the PSBR is relevant and that the Secretary of State must thus remain in control. However, if we are talking about the extent of risk taking among local authorities and the Government, as we will on Third Reading and we did earlier in the debate, how does the Minister see the powers fitting in with that?
Local Government and Public Involvement in Health Bill
Proceeding contribution from
Alistair Burt
(Conservative)
in the House of Commons on Tuesday, 22 May 2007.
It occurred during Debate on bills on Local Government and Public Involvement in Health Bill.
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Proceeding contribution
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460 c1154-5 
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2006-07
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