Power to Give Financial Assistance

Part of Clause 50 – in the House of Commons at 5:45 pm on 14 June 1988.

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Photo of Mrs Marion Roe Mrs Marion Roe , Broxbourne 5:45, 14 June 1988

I have listened with amazement to some of the wild allegations that Opposition Members have made about the likely activities of HATs. It is quite untrue to suggest that the Bill gives HATs an unfettered ability to spend taxpayers' money. HATs will be able to use their power to give financial assistance only with the consent of the Secretary of State. My Department will issue a financial memorandum to HATs, setting out in detail the circumstances in which assistance may be given. As provided in amendment No. 332, which the House agreed only a little time ago, full details of all financial assistance by each HAT will be set out in annual reports submitted to Parliament.

Opposition Members are becoming obsessed with derelict land. That land may be of particular relevance to urban development corporations in Thamesmead, but it is of marginal relevance to HATs, which will be set up to improve life for people who live in run-down council housing. HATs will certainly be required to make the best possible use of derelict land in their areas, as the Secretary of State expects local authorities to do.

The hon. Member for Makerfield (Mr. McCartney) referred to accountability. Of course HATs will not be asset-strippers. The interests of the residents in the area will be essential to HATs' interests. Despite what Opposition Members have said, I emphasise that HATs will be fully accountable to Parliament through the Secretary of State. HATs' activities will be controlled and monitored through the corporate planning system. The Secretary of State will have powers of direction over HATs, and HATs will be required to submit annual reports to Parliament. We are about to consider an amendment that was promised in Committee to allow the National Audit Office access to HATs, to carry out value-for-money audit examinations. That will ensure HATs' final financial accountability.