Local Government and Public Involvement in Health Bill

moved Amendment No. 203: 203: After Clause 79, insert the following new Clause— ““Parish councils: power to issue guarantees (1) A parish council may make and issue a guarantee for a sum, incidental to its support for an activity which is within its powers under this or any other Act. (2) A guarantee under subsection (1) may be made— (a) in respect of membership of a company incorporated under the Companies Act 2006 (c. 46); (b) in respect of membership of an association of local authorities; or (c) to a voluntary organisation operating in its area. (3) In exercising the power to make a guarantee under subsection (1), the council must have regard for any limit on the maximum sum that may be guaranteed that the Secretary of State may by order prescribe.”” The noble Baroness said: In many senses Amendment No. 203 follows on from the amendments tabled by the noble Baroness, Lady Hanham, in that it concerns the ability of parish councils to issue financial guarantees. At the moment, only parish councils that pass the threshold test for councils eligible for the power of well-being set by the Government can issue guarantees. The National Association of Local Councils would like to see that ability extended to all parish councils. If it does not have such a power, a parish council would not, for example, be able to participate in joint arrangements involving a company limited by guarantee. In practical terms this would mean that it might not be able to participate in regeneration bodies, citizens advice bureaux consortia and other non-governmental consortia. On a much more local traditional basis, if parish councils have the power to issue a guarantee they might be able to underwrite the village fete or the local cricket club. I can see why the National Association of Local Councils sees this as an important issue. Certainly from my experience of rural parish councils, I think that the measure would be very helpful. I beg to move.