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 Ian McCartney Ian McCartney , Makerfield 4:30, 14 June 1988

Yes, but I would not have said that. I hope that the Minister will be able to put our minds at rest.

We can only surmise about Government policy. For example, through the Greater London council and so on, the Government virtually handed over to Thamesmead plc lock, stock and barrel, the housing assets of the estates, the land and the derelict land. It has now become clear that the derelict land holding of Thamesmead plc is worth about £300 million. That has been stripped from the public purse.

The Government's intentions as to financial assistance are not clear. We do not know where the money will come from. Will it be money that has accrued from the sale of public assets? Will it be additional grant from the Department of the Environment? Will the housing action trusts be able to claim aid? Will they be able to claim money from the Manpower Services Commission? Will they be able to claim money from other public sources? Will it simply be money accrued from the sale of public assets, to be disbursed without any accountability?

I am curious to know why the Government have included in the Bill the words "any person." In a local authority, the district auditor would take action. I can give an example of that. During the miners' strike, in the Wigan metropolitan council we used certain sections of the Local Government Act 1986. We used the product of a penny rate to assist families in need. We helped the children and wives of miners with food and emergency payments. The district auditor ruled that the payments were not legal. Repayments have continued since the end of the strike and will continue until everything has been repaid. That is the public's perception of a local authority assisting families in need.

The Bill allows public assets to be stripped and the profits disbursed without public accountability. I could understand that if there were to be community centres, advice agencies, centres for the unemployed, tenants' associations, meals on wheels or pre-school nursery groups within the community covered by the HAT. I could understand it if the HAT was providing assistance—albeit, as has been said, in a colonialist way. In some instances such organisations would be registered charities and would be recognised by the community for the work they have done.

Will the HATs be like a bank allowing the sale of the property, organising mortgage arrangements and assisting with repairs and rehabilitation so that the property can be resold on the open market? What is the nature of the assistance to be given? In disposing of the assets, will financial assistance be given to those to whom the assets are disposed? It is important that the Minister clarifies the position.

In areas where HATs may be set up, the public are worried about what will happen to their property and community. Local authorities which are under threat from HATs are entitled to know whether the profits from their assets will be given to others inside or outside the community.

It is important to know that, because HATs will have other functions, particularly in relation to environmental health. Is it intended that the money be used to pump-prime houses in the private sector or for repair grants or other refurbishments? If the money is used for that purpose, will the local authority have its grant reduced because that money will be taken into account when considering the overall level of spending on refurbishing and repair grants?