Clause 19 - Charging
Fire and Rescue Services Bill
4:30 pm
Mr Philip Hammond (Runnymede and Weybridge, Conservative)
I am grateful to have had the opportunity to raise that issue and get the Minister's response to it. It can be dealt with in the consultation process, although to allow opportunity for parliamentary time to discuss it, we had to raise it in the context of the Bill.
Although the Minister did not commit himself, I am reassured. Firstly, he said that the power to trade in those circumstances is likely to be extended to excellent, good and fair authorities. We will come on to deal with the fact that, in the context of the Bill, authorities will be marked not according to how well they discharge their functions, but according to how faithfully they comply with the Government's framework document. That is not a measure of excellence that we would necessarily recognise. Secondly, I am reassured by the Minister's recognition that trading cannot be turned on and off. It is a tricky issue. I suspect that it would take a year or so to deal with it, and I hope that the Minister has had representations on that issue from the authorities involved.
Finally, the Minister commented on the use of arm's-length companies. I suspect that those fire authorities that suggested that we raise the issue in Standing Committee will be most displeased to learn that I now agree with the Minister on that point. Using an arms-length company and ensuring a level playing field for tax and premiums is the right way forward. I do not suppose that would be hugely welcomed by those authorities that have been receiving revenues without having to have a separate structure. It is obviously important to ensure a level playing field. I am grateful to the Minister for his reassurance on that point. I hope that a sensible regime comes out of the consultation—one that allows the one or two potentially world-class consultancy operations in our fire and rescue community to prosper and reduce the burden on council tax payers by making good profits on their consultancy business.
I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.