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DELEGATED LEGISLATION

Mr. Deputy Speaker (Sir Geoffrey Lofthouse): With permission, I shall put together the motions relating to delegated legislation.

Motion made, and Question put forthwith, pursuant to Standing Order No. 101(6) (Standing Committees on Delegated Legislation).

Northern Ireland


Contracting Out


Agricultural Holdings


Local Government


Question agreed to.

8 Feb 1996 : Column 530

Audit (Miscellaneous Provisions) Bill

As amended (in the Standing Committee), considered.

Clause 5

Publication at direction of either Commission

7.13 pm

Ms Hilary Armstrong (North-West Durham): I beg to move amendment No. 5, in page 4, line 5, at end insert--


'(1A) The relevant body may publish the information in accordance with a Code of Practice issued by the Secretary of State under section 2(2) of the Local Government, Planning and Land Act 1980.'.

Mr. Deputy Speaker (Sir Geoffrey Lofthouse): With this, it will be convenient to discuss the following amendments: No. 6, in page 4, line 8, leave out from '(3)' to end of line 9 and insert 'The relevant body'.

No. 7, in page 4, leave out lines 14 to 25.

No. 1, in page 4, leave out line 19 and insert


'distributed to a number of separate dwellings in their area at least equal to the circulation of the newspaper(s) printed for sale and circulating in their area, in which the information would otherwise be published in accordance with subsection 2 above; and'.

No. 2, in page 4, line 25,, after 'to', insert 'at least 80% of'.

Ms Armstrong: We have reached Report stage of the Audit (Miscellaneous Provisions) Bill. We had a series of interesting debates in Committee and we have brought these amendments to the House in an attempt to make the Government see sense.

The amendments address the issue of how and where local authorities will publish their performance indicators. Last year was the first year in which performance indicators were published and we learned many lessons from that experience. It is one of the reasons why the Bill is before the House this evening. However, I believe that we have learnt more lessons than are addressed in the Bill, so we are seeking to amend it.

Amendment No. 5 seeks to approach the issue in a different way. Local authorities are obliged to publish their performance indicators properly so that the majority of local people can read and understand them. They should not be complicated and they should be easily accessible. I am sure that every hon. Member shares that objective. The information must reach as many people as possible and be easily understood. Tonight we are debating the mechanism which will achieve those ends.I do not believe that the Bill has got it right, and that is another reason why we have tabled the amendments.

Amendment No. 5 seeks to give the Secretary of State power to issue a code of practice to prescribe the way in which local authorities must publish performance indicators. In other words, the Secretary of State will have the power to issue a code of practice so that he can be absolutely sure that local authorities are not using oblique methods in an attempt to avoid meeting the objective. We have taken methods of practice from other pieces of legislation, which we believe will better achieve our aims, and applied them in this case.

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Under section 3 of the Local Government, Planning and Land Act 1980, the Secretary of State may make regulations to enforce the provisions of such a code of practice. There is an existing code which ensures that the objective is met. I am sure that the Minister knows all about it so I shall not take up the time of the House tonight by going through it. However, I believe that the current provisions in the Bill will not meet the objective.

The provisions of the 1980 Act were introduced by the right hon. Member for Henley (Mr. Heseltine), when he was Secretary of State for the Environment, to ensure that local authorities published the information that the Government thought necessary at that time. That included information to accompany local tax demands, annual reports, staffing levels, information on planning applications, information on land holdings and so on. The amendment would bring performance indicators under a similar regime.

I appreciate that performance indicators must be published separately and that specific attention must be drawn to them. However, as I understand the code of practice, that would not be a problem under existing legislation. The provisions of the 1980 Act specifically permit



    any such Code to specify the steps which authorities are to take to inform the public of the availability of the information".

In Committee, the Minister interpreted the wording of the Opposition amendment as requiring authorities to distribute the information to every household and business. He thought that it would put authorities at risk of legal challenge and


He was anxious that authorities did not abuse the publication of performance indicators to produce partisan material in a local authority publication.

We pointed out in Committee that if local authorities did that, they would be breaking the law as set out in the Local Government Act 1986. Notwithstanding that, the Minister sought to make it one of his concerns.

The Minister objected to our amendment asking authorities to distribute the information to every household and business as he thought that would be too difficult. The Bill requires authorities to "take all reasonable steps" to ensure that a free newspaper is distributed to each dwelling and business. That could be equally onerous and create other difficulties.

We discussed the problems involved in the distribution of free newspapers in great detail in Committee, so I shall not do so today. However, the wording of the Bill may lead to demands that some local authorities are unable to meet.

The amendment would permit a wide range of practice in publishing performance indicators. We are asking the Government to reconsider the matter. If the amendment were agreed, the Government would retain every possible means of preventing abuse. I know that the Minister is concerned to stop abuse and to ensure that local authorities are not tempted down that road. The amendment would give him the necessary powers, so he and his right hon. and hon. Friends should be reassured that it is not an attempt to make sure that people do not find out about performance indicators, but to give more people access to them.

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Clearly, a code should be used to encourage best practice and to give authorities maximum flexibility in the publication of performance indicators. It could also incorporate such safeguards as requiring a statutory notice in a paid-for or free newspaper publicising the authority's arrangements for distribution of the material and telling the public where additional copies were available.

Taken with the Bill as presently drafted, the amendment would present authorities with a menu of options for publishing performance indicators in accordance with a code of practice that would permit own newspapers, leaflets, the use of a paid-for or free newspaper or a combination of those options. It is our responsibility to give local authorities the opportunity to develop means that are appropriate to their areas and meet the objectives set out in the Bill.

It is also important to provide for diversity. In Committee we discussed the diverse nature of local authorities. Although one newspaper may be distributed throughout an entire city area, that is not always so. In order to uphold the proper relationship between central and local government, there should be a balance between diversity and the adherence to a minimum national standard. The amendments give the Government the opportunity to achieve that balance.

The other amendments in the group would put amendment No. 5 to into effect. Amendments Nos. 6 and 7 aim to delete the distribution conditions for free newspapers so that they are treated in the same way as paid-for newspapers when placing a statutory performance indicator advertisement.

In Committee, there were two main concerns with the Bill's provisions permitting the use of a free newspaper for the statutory publication of performance indicators. First, clause 5(4) places the burden on authorities to ensure that a free newspaper is distributed to dwellings and businesses. The Bill sets a test of reasonableness, but that is not much help to authorities that might need to test the circulation claims made by the publishers of a free sheet. The Minister acknowledged:


As I have already said, that cannot be assured throughout the country as the distribution and availability of free newspapers is variable. The Bill is likely to deter authorities from using a free newspaper for the statutory advertisement and could effectively vitiate the purpose of clause 4.

Secondly, the Bill puts paid-for newspapers at a market advantage. Contrary to the Minister's words, no distribution condition applies to paid-for newspapers.A paid-for newspaper with a very small circulation would suffice for the statutory performance indicator advertisement, but a free paper has to meet a very stiff test of being delivered throughout the authority's area.

The Bill leaves whole issue confused and does not meet our objectives. As it incorporates a minor barrier to free trade, the Bill does not seem consistent with the philosophy and the policy that the right hon. Member for Henley purports to support. The Government seek to make the performance indicators more accessible to the electorate and the council tax payer, but they have drafted the Bill in such a way as to make that objective much

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more difficult to attain. The amendments give the Government a way through and I hope that, even at this late stage, they will consider rethinking the wording of the Bill.


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