Clause 17
Local Government and Public Involvement in Health Bill
5:45 pm
Robert Syms (Shadow Minister (Local Government), Communities and Local Government; Poole, Conservative)
There are a few items that I wish to raise. Clearly, much can go on with residuary bodies. Commitments can be entered into by local authorities for the long term. For all their benefits, private finance initiatives can sometimes land authorities with considerable costs in the long term, committing them to office buildings and other matters such as computer contracts. Will the Minister reassure us about how residuary bodies will operate and confirm that the consequence of reorganisation will be that the successor authority does not inherit more longer term, higher cost contracts than need be the case?
Under the clause, the residuary bodies will turn over most of the assets but, as we know, a lot of local government is tied up with ancient charities, gifts of land or school buildings which the authority is not sure whether it owns. Things might be vested into a charitable or residuary body for some years to come. I want reassurance from the Minister about how the process will operate. Will the costs of running residuary bodies dealing with the loose ends of reorganisation be taken into account for what was described earlier as the aggregate financial envelope?