Clause 30 - Authorisation of agreements during the prohibition period
Local Government Bill
4:45 pm
Mr Geoffrey Clifton-Brown (Cotswold, Conservative)
You may have thought that you were on a roll, Mr. Conway, but all rolls have to stop somewhere. We have not tabled amendments to clause 30, but it would be wrong to let it pass without a debate, because it is the nuclear option. The clause gives chief finance officers considerable powers. As the explanatory notes to the Bill suggest, section 114(3) of the Local Government Finance Act 1988 states:
''The chief finance officer of a relevant authority shall make a report''.
Subsection (6) deals with what should happen
''If the chief finance officer is unable to act owing to absence or illness''.
There are some pretty draconian duties under that section. Section 115 relates to where such a report is to be considered by the full council within 21 days of its issue. During the period from the report's issue until the day after the council meeting, the authority is prohibited from entering into any new agreement that may involve expenditure by the authority.
We are talking about pretty severe circumstances, but perhaps not quite as severe as the situation in Walsall, which has required special measures. By the time such powers were needed, the council would already be running into some difficult financial circumstances.
It would be interesting to know what is wrong with the existing legislation—is it that chief finance officers have draconian powers? I have asked that question on so many occasions, but I have never received a proper answer. Perhaps the Minister will explain that in a moment. What is wrong with those draconian powers that already exist that we are seeking to supplement them through the clause? Perhaps the Minister will answer that question at some length in relation to this important clause.