Mr Geoffrey Clifton-Brown (Cotswold, Conservative)

I should like to probe the Minister on subsections (4), (5) and (6). The Minister rejected my practical proposal that some estimate should be given before the BID comes into operation. Given the use of modern computers and the average size of the BID—probably a few hundred people—I suggested that it would be relatively simple and inexpensive to communicate at least an estimate of how much each business was likely to have to pay to give it greater certainty in planning its business.

Do the provisions specified in subsections (4), (5) and (6) relate generally to all BIDs, or are there specific regulations for each BID?

Subsection (4) states:

''The Secretary of State may by regulations make provision . . . as to the alteration of BID arrangements, and . . . as to the termination of BID arrangements.''

I presume that that is the power to terminate them if they start to go wrong financially. That power is then circumscribed by subsection (5), which states:

''The provision which may be made by virtue of subsection (4)(a) or (b) includes provision preventing or restricting the alteration or early termination of BID arrangements.''

Subsection (5) is unnecessary, as the Secretary of State already has the power in subsection (4). If subsection (5) is superfluous, subsection (6) is wholly superfluous. It states:

''Nothing in subsection (5) is to be taken as limiting the power conferred by subsection (4).''

Will the Minister comment on that? The drafting is very clumsy. Subsection (5) could be removed, as

could subsection (6), and nothing would be lost from the Bill.

Mr Robert Syms (Poole, Conservative)

I have a similar point. Under subsection (4), I perfectly understand the Secretary of State having powers of termination, as the scheme would need to be wound up if it got into difficulty before the end of five years.

On alteration of the BID arrangement, a proposal can be made, voted on and implemented, yet the Secretary of State can unilaterally alter the arrangements on which that proposition is based. That might mean increasing the amount of tax that the businesses have to pay. Will the Minister say what he means by alteration in this particular clause? Are we talking about minor technical changes or about major changes that could alter the proposition on which people have voted?

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

The clause allows BID arrangements to be in place for a period of time specified in the proposals, but not exceeding five years. The BID arrangements may be renewed for further periods, although, each individual period cannot exceed five years. That means that any successful BID can continue to work after the initial period decided in the BID arrangements. A ballot of ratepayers liable for the levy must approve the renewal of the BID arrangements. That ballot will be subject to the same rules as set out earlier. Approval for renewing the BID must be secured to the same dual-key mechanism that was used to secure the first vote. A time limit of five years means that a BID cannot charge ratepayers an additional levy indefinitely; it must be regularly approved by a vote if it is to extend beyond five years.

Mr Desmond Swayne (New Forest West, Conservative)

If the arrangements have been put in place by the means described by the Under-Secretary, including the dual keys, what happens if the Secretary of State makes regulations under subsection (4)(a) and (b) that change the BID arrangements? Will that change the arrangements for BIDs that are already established or is it just a general power that will affect the arrangements for BIDs that come into force subsequently?

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

That is the question that the hon. Member for Poole (Mr. Syms) asked—whether the alterations would be significant. The clause grants the Secretary of State the power to make regulations regarding the alteration or termination of BID arrangements. We would expect BID arrangements to contain rules on how the business improvement district could be wound up prematurely if the parties to the BID so decided, and the regulations will be general rather than for specific BID proposals.

Again, we want to ensure that safeguards can be put in place, which is the purpose of clause 56 providing the Secretary of State with the ability to make alterations or terminations. They will provide a fall-back to allow a BID to be altered or terminated early if BID members decide to do that in the light of experience but the specific BID arrangements contain insufficient provisions. The regulations could provide a mechanism to deal with such matters as outstanding

contracts or assets that a BID may have when it dissolves.

In setting out the regulations, we will make it clear that we do not envisage the Secretary of State using them to intervene directly in the operation of a business improvement district. Alterations and terminations will take place only in rare and exceptional circumstances, and the presumption will always be the protection of the ratepayers by ensuring that large and unforeseen burdens do not fall on them. It may be helpful for me to circulate an indication of our policy intent on the use of the regulations to give a clearer and more in-depth picture of how we envisage using the regulations, if at all. That may also help enlighten any debate on Report.

Mr Geoffrey Clifton-Brown (Cotswold, Conservative)

The Minister wholly failed to answer the point, which I perhaps put too quickly. I will put it more slowly as he did not take it on board the first time. Why are subsections (5) and (6) necessary?

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

I took it on board, but I was more concerned with a couple of other points. The clause gives drafting protection to the Secretary of State's ability to make the regulations. I shall be happy to speak again to parliamentary counsel who helped draft the clause, but the subsections make it copper-bottomed and crystal clear that the Secretary of State has the power to make the regulations. I am content with the drafting.

Mr Geoffrey Clifton-Brown (Cotswold, Conservative)

What power does the Secretary of State not have under subsection (4) that is given to him by subsections (5) and (6)?

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

Those powers set out in subsections (5) and (6).

Question put and agreed to.

Clause 56 ordered to stand part of the Bill.