Mr Desmond Swayne (New Forest West, Conservative)

Will the Under-Secretary enlighten the Committee, for the record, as to what matters are provided for under subsection (2)(d)?

Looking ahead to clause 55(7)(a) and (b), will he also tell us why those paragraphs are placed in clause 55 and not in clause 54? They seem to be more the subject matter of clause 54, which deals with the appeals procedure, than of the commencement arrangements.

Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)

The drafting arrangements for provisions on allowing such an appeal and the effect of allowing the appeal placed those provisions under clause 55. However, whether they come under clause 55 or 54 is immaterial to our policy discussion. I have faith, as always, in parliamentary counsel on such matters.

Clause 54 provides that where the billing authority decides to veto a BID, any ratepayer who was entitled to vote in the BID ballot can appeal against the exercise of that veto to the Secretary of State. The clause confers on the Secretary of State the powers to make regulations regarding the timing of appeals, the manner in which an appeal is to be made, the procedure to be followed in connection with an appeal, and the factors to be taken into account when deciding whether an appeal is successful.—[Interruption.] I have a ringing in my ears, Mr. Conway, which suggests that perhaps I am taking too long to explain the clause.

Although it is important that the local authority has the power to veto proposals if it judges that a BID contravenes local arrangements of benefit to the community, it is equally important that businesses that invested time in securing a success in the BID ballot should have a right of appeal to the Secretary of State against the veto.

Mr Robert Syms (Poole, Conservative)

Can a person appeal if they were entitled to vote, even if they did not vote in the ballot, either for or against?

Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)

Yes. If they are entitled to vote they will have that right of appeal. As we said in the White Paper when we first made the proposals, the Secretary of State would consider the views of both the council and the rent payers who supported the BID. The council would have to show that in exercising the veto it was acting reasonably and in the interests of the wider local community.

Mr Andrew Turner (Isle of Wight, Conservative)

It is extraordinarily difficult to see how a local authority can act reasonably when it has vetoed a BID post ballot, having failed to exert its influence sufficiently strongly through all the mechanisms that are available effectively to veto that BID pre-ballot. Is it not almost inconceivable that a local authority could be acting reasonably in so doing?

Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)

I can certainly concede that it is difficult to envisage circumstances in which an authority would exercise its veto. It is not impossible to imagine circumstances in which a local authority would come into conflict with people proposing a BID, although it is unlikely. There might conceivably be some conflict between the interest that it has a duty to observe for the general people in its vicinity and the interests of the ratepayers as represented by BID proposers, although it is difficult to imagine. There would have to be a burden of proof on the local authority to show that it was acting reasonably in exercising that veto. Appeals could be made to the Secretary of State.

Mr Robert Syms (Poole, Conservative)

Perhaps I can help the Minister. There might be a vote for a BID followed a month or two later by a vote for the council. The political control of the council could well change and so the priorities in a particular area would change. It is also possible to have a BID district across two London boroughs. One of those boroughs might well change its mind as a matter of policy. All those issues might well lead to change.

Mr Christopher Leslie (Parliamentary Secretary, Cabinet Office; Shipley, Labour)

My understanding is that a veto can take place only up to the point when the BID arrangements come into place and are up and running. It is not possible for the veto to be exercised after that point, so I cannot see that such a circumstance is likely. As I said in response to the right hon. Member for Skipton and Ripon (Mr. Curry), the provisions are mostly to strengthen the local authorities' arm, so that right from its inception they are included by the BID proposers in drawing up something that is likely to have all parts of the local community on board. That is why I believe that we have struck the right balance in this case. We have the safeguard of the appeal system if needs be.

Question put and agreed to.

Clause 54 ordered to stand part of the Bill.