My Lords, I am grateful to my successor as Secretary of State for the Environment a good many years ago for giving way.
I was unable to speak at Second Reading because I could not be here, but I declare an interest as a vice-president of the Local Government Association and a joint president of London Councils. I have considered whether to make these remarks, which will have a somewhat different tone from what we have
heard so far, now or leave them until the Clause 1 stand part debate. In the light of the speech made by the noble Lord, Lord Beecham, it seems to me that it would be appropriate to say what I want to say now.
Of course, I have read all the briefing and have had meetings with the Local Government Association, which has expressed clearly its view that it would very much prefer this whole clause not to be in the Bill. It has suggested a number of amendments that we shall come to later. I put it to the association that I do not think that it has paid sufficient attention to the significant volume of evidence that is set out in the impact assessment, published last month. The noble Lord, Lord Beecham, referred to bits of it, and I shall do so as well, but perhaps drawing a somewhat different conclusion.
He referred in somewhat disparaging terms to the work of Professor Ball at Reading University, who has produced a report that seems to support the view that there is a very substantial body of opinion that regards the planning system as one of the barriers to growth. Professor Ball stated on page 12 of the impact assessment that the transaction costs of development control for major residential developments may be as much as £3 billion a year. He gave evidence recently to the Communities and Local Government Select Committee and advised that the actual costs were likely to be much higher than this. He went on to talk about the value of development that has been delayed by the planning system and stated that, taking into account both direct and indirect costs to the economy, the total cost of development control could be expected to run to several billion pounds. This is the view of a very respected academic who was consulted by the department and who gave evidence to a Select Committee in the other place.
I recognise the point made by the Local Government Association that planning is by no means the only barrier. Certainly the availability of finance, particularly for housebuilding and some forms of industrial and commercial development, has been a considerable problem. Of course, that is being addressed by the Government through a number of other measures that are not necessarily in the Bill. However, we all have evidence from bodies such as the Chambers of Commerce, the Home Builders Federation and the Confederation of British Industry. They are the investors who are affected by planning controls. Everybody seems to agree that what we need now is more investment in our infrastructure. They are the people who will do it and they have provided strong evidence, from surveys of their members, of the barriers posed by the planning system. On the measures taken in the planning Bill, in particular the National Planning Policy Framework document, I have nothing but the highest praise for my right honourable friend Greg Clark, who took it through. I notice my noble friend on the Front Bench nodding. Mr Clark did a splendid job. Despite that, these complaints are still being made. In these circumstances, the Government are right to take account of them.
Nobody is arguing for a moment that this is a magic wand that will remove all difficulties. The Minister said that the Bill was not likely to achieve that by itself.
However, it contains a number of measures that will improve growth in the economy and remove barriers to investment. In these circumstances, one has to look very carefully at amendments that are designed to make the process outlined in Clause 1 more difficult. I do not say for a moment that it is all right. I will listen to the debates on amendments. I have put my name to some of them and, when the Marshalled List is reprinted, it will be seen that I have added my name to others. At the same time, I do not want the Committee to feel that I share the views of those who would rather see Clause 1 removed.