My Lords, I sought to scribble down the noble Lord’s questions as they came in. I apologise if I miss certain questions. On anything omitted, I shall write to the noble Lord.
The award-of-costs system supports the Government’s drive to improve the planning system by seeking to reduce the poor behaviour that leads to wasted expense and unnecessary delay. Clause 2 extends existing powers to enable the Secretary of State to recover his own
costs in planning appeals and makes provision to improve the handling of costs awards between parties. A timely and efficient appeals service will promote economic recovery. At the start of the debate—I hope that this shows my level of attentiveness throughout the past few hours—my noble friend said that this was a magic wand of a Bill. Certainly, what it seeks to do is remove hurdles to growth and it is our view that this is one of those elements.
Clause 2 extends the existing powers of the Secretary of State to recover costs in full or in part in all appeal procedures. It already provides, at subsections (5) and (6), for rules and regulations to lay out the circumstances in which the Secretary of State may direct that costs may be recovered—about which the noble Lord, Lord McKenzie, asked. Amendments 41 to 44 and 46 and 47 would duplicate provisions already made in the clause and are therefore not necessary.
On Amendment 45, the current award-of-costs system is already flexible enough to take account of mitigating circumstances when all claims for an award of costs are being considered. All parties will have the opportunity to present evidence, including detail of any mitigating circumstances, before a decision is made on an award of costs. We therefore consider, again, that no further change is necessary.
The noble Lord asked how the new powers of the Secretary of State would be laid out transparently. I assure him that established guidance is provided on what constitutes unreasonable behaviour and behaviour that may give rise to an award of costs. This guidance will continue to apply whether an award is made by the inspector or by the Secretary of State. We will of course ensure that clarity is provided on the circumstances in which the Secretary of State may recover his costs.
The noble Lord said that the Secretary of State seemed to be able to take a lot more powers to himself to recover costs. As I am sure the noble Lord is aware, the Secretary of State already has powers to recover his own costs. The clause simply makes it clear that he can do so in full or in part in relation to the different appeal procedures. It is right that these powers cover all types of appeal, and we will ensure that information is provided on what type of behaviour may give rise to the Secretary of State recovering his costs before any costs are recovered.
The noble Lord, Lord McKenzie, said that the proportion of appeals in which costs are awarded is estimated by the impact assessment to rise from 3% to 20%. The 20% figure was rather a high estimate; we also gave in that same assessment medium and low assumptions of 10% and 5% respectively. I guess that one can only make estimates until the reality kicks in, and I am sure that we will return to the subject at that time.
Clause 2 is about improving the efficiency of appeals handling and freeing up inspectors’ time to focus on planning issues. Subsection (7) enables the identification of categories of work connected with appeals which will be dealt with by the Secretary of State instead of by a planning inspector. It is unnecessary to seek the agreement of parties to do this in each case. Parties to an appeal can be assured that any matters dealt with directly by the Secretary of State will be handled fairly
and justly. Award-of-costs decisions, which I have covered, will be made in line with current guidance on grounds for an award. As I have already assured the noble Lord, we will amend existing guidance to make it clear what type of cases this will apply to. Therefore, Amendments 48 and 49 are deemed unnecessary.
Ultimately, this is to make the whole process more efficient and effective. I am sure that all of us involved with the planning process would welcome such changes. I therefore hope that, with those reassurances, the noble Lord, Lord McKenzie of Luton, is willing to withdraw his amendment.
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