Stewart Jackson (Shadow Minister, Communities and Local Government; Peterborough, Conservative)

I beg to move amendment 91, in clause 80, page 56, line 31, at end insert—

‘(1A) The functions referred to in subsection (1) above shall include its duty under subsection (3) of section 6B of the Regional Development Agencies Act 1998 (Delegation of functions by regional development agencies) to propose delegations of certain of its functions to one or more local authorities in its area.’.

Eric Illsley (Barnsley Central, Labour)

With this it will be convenient to discuss new clause 14—Delegation of functions by regional development agencies—

‘(1) The Regional Development Agencies Act 1998 (c. 45) is amended as follows.

(2) After section 6A (delegation of functions to the Mayor of London and the London Development Agency) insert—

“6B Delegation of functions by regional development agencies

(1) Subject to the provisions of this section, a regional development agency shall have power to arrange for the discharge of any of their functions by a local authority within their area or jointly by a group of local authorities within that area.

(2) For the purposes of this section, a ‘function’ shall include any part of a function, or any function or part of a function which is exercisable only in relation to part of the area of a local authority.

(3) A regional development agency shall within six months of the coming into force of this section and at yearly intervals thereafter propose such delegations for the discharge of any of their functions by a local authority within their area, or jointly by a group of local authorities within that area, having regard to the desirability of maximising such delegation.

(4) Whether or not a regional development agency has made proposals under subsection (3), the Secretary of State shall have power to direct an agency to make such delegations as he may determine, after taking into account any representations made to him by any local authority in the area concerned, or by the agency.

(5) Two or more local authorities to which any function has been delegated under this section may arrange for it to be discharged by them jointly or in accordance with any executive arrangements agreed by them from time to time.”’.

Stewart Jackson (Shadow Minister, Communities and Local Government; Peterborough, Conservative)

We are on the home stretch, Mr. Illsley.

The proposals could be designated as the Local Government Association new clause and amendment. They arise from the delegation of powers from RDAs to local authorities, which is important, and flow from discussion and consultation on the sub-national review, which we have mentioned. The Minister often prays in aid the panjandrums of the LGA. We are grateful for their leadership in local government, but they do not always agree with the Minister and the Government. On RDA delegation, the briefing that the LGA provided on Second Reading specifically stated:

“It is disappointing that despite the Government’s assertions that the Bill is designed to empower communities there has been no movement to allow elected councils to have increased powers and funds to effect real difference in their local areas, particularly during the recession.”

The LGA makes a number of key points in support of the new clause—I referred to this when we talked about regional government generally, but it nevertheless merits repetition. Its research showed that although there is a national economy,

“there is no evidence that the current Government office boundaries define ‘regional’ economies. Below the national level, markets for goods and services”

and so on

“operate at sub-region and city region level.”

The LGA also makes the point that there are

“roughly 50 ‘sub national’ functional economic areas in England”

alone, and states:

“Many decisions...need to be taken at sub-regional, rather than regional level...Our most recent research focuses on the differential effects that the current recession is likely to have on local economies. The research suggests that in the current economic climate it is more important, not less, to delegate decision-making and funding to the level at which it can most effectively be deployed.”

That point was also made in the Lords. The LGA specifically mentions what the Select Committee on Business and Enterprise has said about the need to delegate functions. There has been some debate and contention about whether it is necessary to be exact in specifying all the functions and responsibilities for funding that could be delegated to local authorities.

Paul Goodman (Shadow Minister, Communities and Local Government; Wycombe, Conservative)

Does my hon. Friend agree that despite all the Divisions, we now have a chance to achieve consensus on this matter? Were the Minister minded to look favourably on the amendment, we would be able to look favourably on clause 85, which sets up the bare  bones of economic prosperity boards, leaving aside all the other clauses that give her a lot of centralising power. In that way, the Government would have the boards, the LGA would have its amendment and everyone would be happy.

Stewart Jackson (Shadow Minister, Communities and Local Government; Peterborough, Conservative)

My hon. Friend leads me to finish my peroration via a crescendo of consensus. I hope that the Liberal Democrats—our doughty fighters for Cornwall—are minded to support us.

There is consensus on this matter. The Business and Enterprise Committee has said, specifically with regard to RDAs and the Bill, that there is a need for

“the role of local authorities—and of the communities they represent—to be strengthened”.

If the Minister is truly committed to the devolution of power from RDAs to local authorities, which has a degree of consensus in the Committee—the opinion is prevalent among Government and Opposition members of the Committee—I hope that she will see fit to accept the amendment and the new clause.

Julia Goldsworthy (Falmouth & Camborne, Liberal Democrat)

I am not entirely sure whether I would call my remarks a peroration, but I hope that they add something to the debate this evening. I would like to return to a comment that I made earlier today about drawing a distinction. Although I should say at the outset that we broadly support what the amendment and the new clause seek to achieve, it is important to draw the distinction between delegating functions and devolving decisions. If anything, we would like the proposals to go further and not only pass down functions to a lower level, but give greater discretion in the decisions that are taken, not simply delivering Government policy at a lower level.

I like the fact that the amendment and the new clause provide us with probably the only opportunity in the discussion so far to talk about devolution and the delegation of functions as a process rather than simply an event. Many of the provisions about petitions involve setting up not only an immovable structure that will be exactly the same in the future but the framework through which it will be necessary to view all future events. There should be a process. Every six months, there should be reviews to discover what else could be passed down. That is another aspect that gives the proposals merits.

The hon. Gentleman called my hon. Friend and myself Cornish crusaders. I would like to think that the Liberal Democrats are not crusading for Cornwall, but across the country. May I be parochial for just a moment to elucidate something that will be a great benefit? Although in earlier debates, the Minister dismissed Cornwall’s appetite for some kind of greater representation and recognition as a region in its own right, the proposals would, if the Government accepted them, give people in Cornwall an opportunity to satisfy that appetite—to pass down decision making and the administration of important things such as objective 1 funding and its successor programme, Convergence. That would provide an opportunity to administer those funds at a much more sensible level. At present, Convergence is administered at a regional level, even though the resources are only available to people in Cornwall. That seems to create a ridiculous situation: the allocation of those funds and  the decisions about which projects should go ahead are affected by other problems that the RDA is experiencing. If those powers and resources were devolved to Cornwall, it would make much more sense for those decisions to be made there. That is a practical example of how the proposals could make a real difference.

I see nothing controversial in the proposals. This is a good opportunity to demonstrate that the Government are willing to engage in the process, rather than simply produce a Bill. I hope that they will consider supporting the proposals.

Rosie Winterton (Minister of State (Yorkshire and the Humber), Department for Communities and Local Government; Doncaster Central, Labour)

I am sure that the LGA will be delighted to know that it has now been called a panjandrum, or whatever phrase was used by Opposition Members, who are excelling themselves today in insults to local councillors. Labour Members are full of praise for the work that councillors do.

Daniel Rogerson (North Cornwall, Liberal Democrat)

Not parish councillors, though.

Rosie Winterton (Minister of State (Yorkshire and the Humber), Department for Communities and Local Government; Doncaster Central, Labour)

Parish councillors have come in for further abuse from some Opposition Members. However, we have been considering how councillors can contribute at both local authority and regional levels to increase economic prosperity in their regions.

The key to our discussions on the new clause is the partnership work that we envisage, regarding the regional development agencies’ overall strategy, drawn up in consultation and discussion with the leaders’ boards, which represent the local authorities. That will ensure that RDAs and local authorities work together closely in planning and implementing the regional strategy. We must also ensure that local authorities’ economic strategies contribute to the region’s overall economic prosperity.

Financial assistance could be given to local authorities. We could probably all point to examples within our regions of how RDAs have worked very closely with local authorities on such issues. However, RDA’s cannot delegate decision making on where finances are directed, and it is important that RDAs retain the final accountability for funding passed through them. I hope that I can offer the Opposition enough comfort for them not press the amendment or the new clause. We want to ensure close partnerships, and we certainly accept that, in some instances, financial assistance might be given to local authorities. However, we do not believe that it is right to delegate decision-making powers, as set out in the amendment and new clause.

Stewart Jackson (Shadow Minister, Communities and Local Government; Peterborough, Conservative)

I thought that we would see the sinner repenting over the new clause—I was full of hope, but it is now dashed! We had an opportunity to recognise the reality of the situation. The Government have given a written commitment on this matter. Also, in its submission to the sub-national review, One North East mentioned the delegation of functions to, among other things, special purpose vehicles, economic development companies and urban regeneration companies. In practical terms, there is that recognition among organisations such as the East Midlands Development Agency, which, according to evidence that it gave, has devolved 43 per cent. of its budget to local authorities. It would have been nice if the Government had recognised that progress, following the sub-national review, and formalised it by accepting  our amendments, and I am sorry that the Minister has not done so. On that basis, we cannot support the clause.