Power to Give Financial Assistance

Part of Clause 50 – in the House of Commons at 4:30 pm on 14 June 1988.

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Photo of Mr Nigel Spearing Mr Nigel Spearing , Newham South 4:30, 14 June 1988

I am afraid that my hon. Friend is right. We cannot be certain that the animal will work in that way, but from my experience of the jumbo animal, the little jumbos will probably work in the same way. I say that for one reason alone: it is human nature. I do not think that there is a single hon. Member, however to the Left or the Right of the spectrum he may be, and however moral according to the Prime Minister's precepts, who, given the power to hand out such sums almost on the nod, would not be tempted. I am told that in the LDDC three or four people meeting in secret decide these matters. I suggest not that there would be subversion—that is a strong term—but that the members of the HATs would tend to be a little casual in dealing with these matters.

I do not believe that such a way of going about things is in the best tradition of British public administration. I am not so sure that it is in any traditions of British public administration, of which the Government constantly say they are in favour. It is an invitation to temptation. I do not question the integrity of future members of a HAT, its chief executive or chairman, but they will be in a position to hand out substantial sums for a wide range of purposes that are only indirectly related to the operation of the trust.

Clause 58 says that HATs may acquire, hold, manage, reclaim and dispose of land … carry out building and other operations; … carry on any business or undertaking: and may generally do anything necessary or expedient for the purposes of those objects and powers or for purposes incidental thereto." They could assist people to move. A HAT would undoubtedly find it profitable to assist people to buy their homes elsewhere, as the capital gain on sale of the HAT property would be considerable. If the Treasury did not want the money, the Secretary of State might. Indeed, the Secretary of State might direct a HAT to do that.

Some may say that that is going a bit far, but not at all. About one year ago, the Secretary of State for the Environment said that he wanted the LDDC to make as much profit as possible from increased land values, so that he could help fund dockland development corporations in other parts of the country. I think that he may have softened his tune a little, because he now understands the needs of people in east London. His attitude is, however, only slightly different now, and if he can do that for the LDDC, a HAT could operate in the same way.

People may be glad to take the money made available to them to move. I can imagine people vacating nice property in my constituency which the HAT could dispose of at an enormous capital gain. Indeed, I think that that has already happened in the Isle of Dogs.