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Tristram Hunt (Stoke-on-Trent Central) (Lab)
It is a great pleasure to raise the future of the Wedgwood museum. I thank my hon. Friend the Member for Stoke-on-Trent North (Joan Walley) for joining me here, as well as the Minister, who has proved generous with his time and attention in this matter.
We are here to highlight one of the greatest cultural collections in England, and the threat to its future. On the southern edge of Stoke-on-Trent, in the constituency of my hon. Friend the Member for Stoke-on-Trent South (Robert Flello), stands a museum dedicated to
“The People Who Have Made Objects of Great Beauty from the Soils of Staffordshire.”
In 2009, it won the £100,000 Art Fund prize for museums and galleries, and the judges praised it as a “brilliant snapshot”, highlighting the marriage of art, design, manufacturing and commerce. However, today the museum is under threat from a legal quagmire more akin to Jarndyce v. Jarndyce than any rational museums policy. What is more, the principle at stake in the dissolution of the collection could have major, damaging repercussions for museums across the UK.
The origins of the Wedgwood museum can be traced to Josiah Wedgwood himself—a former resident of what is now the constituency of my hon. Friend the Member for Stoke-on-Trent North. In 1774 he wrote:
“I have often wish’d I had saved a single specimen of all the new articles I have made, & would now give twenty times the original value for such a collection. I am now, from thinking, and talking a little more upon this subject...resolv’d to make a beginning.”
And so resolved, Wedgwood made a beginning on what is undoubtedly among the finest ceramics collections in the world, with some 8,000 objects on display, from black jasper Portland designs to bone china tea sets and Robert Adam-designed vases. The collection testifies both to Wedgwood’s genius and the company’s productivity.
Joan Walley (Stoke-on-Trent North) (Lab)
Does my hon. Friend agree, given the context of the debate and his reference to Josiah Wedgwood, that this debate is part of a wider debate about ceramics and the culture of the Potteries, and about the importance of finding a long-term solution for the Wedgwood institute in Burslem?
Tristram Hunt
I absolutely agree. As I hope to point out, the interrelationship between the past and the present is enormously important, drawing on history not simply for archaic reasons but as an economic and cultural motor for the city of Stoke-on-Trent and the county of Staffordshire. As my hon. Friend pointed out, the collection is as much commercial as aesthetic. We see in the museum guides to earthenware and creamware, and to jasper and basalt production.
Mr William Cash (Stone) (Con)
The hon. Gentleman has only half an hour but, as I said in a message I left in his office, I would be grateful for the opportunity to make a short intervention on the subject. As he well knows, the museum, because of the configuration of boundaries, is actually in my constituency. I just wanted to say a few words.
Tristram Hunt
I am happy for the hon. Gentleman to say a few words, and I will canter through the outlines.
Wedgwood died in 1795, but his descendants, the Wedgwood family, dedicated their collections to the museum right through the 19th and 20th centuries. Indeed, collections from the Wedgwood family were donated right up to the last few years. It was always done as an act of social philanthropy, in the belief that the collection would be preserved for all future generations, in perpetuity. Wedgwood stands very much in line with the thinking of the Secretary of State, who recently announced:
“Philanthropy is central to our vision of a thriving cultural sector”,
and called for
“more individual acts of social responsibility”.
However, the museum goes far beyond telling the extraordinary life of Wedgwood, the manufacturer, agitator, internationalist and salesman. It describes the advent of industrialisation, the nature of the English enlightenment and how the French revolution and the struggle against slavery reverberated throughout the UK. For me and some of my colleagues, one of the most inspiring parts of the collection is the series of medallions stating:
“Am I not a man and a brother”,
celebrating Wedgwood’s involvement with the abolitionist cause.
The Wedgwood family and business have always had a keen sense of their place in history. The firm opened its first museum in 1906. By 1909, the museum catalogue was packed full of artefacts. In 1962 the family, with great prescience, aware that the Wedgwood family business was likely to go public, decided formally to separate the museum from the factory, specifically to prevent the museum from being used as a realisable asset by any future predator. Whatever financial difficulties were encountered by Wedgwood, any corporate owners could not sell the collection. Even in 2009, when Waterford Wedgwood entered administration, Deloitte, the administrator, could not touch the collection and sell it off to pay the many creditors.
The museum became a charitable trust in 1998, in order to secure funding for a new building to house the collection. The Heritage Lottery Fund generously contributed £5.86 million, resulting in a magnificent new museum which opened to the public in 2008, confident in the status of a charitable trust. Since then, unfortunately, an Alice in Wonderland legal situation of such absurdity has developed that it barely seems credible. In January 2009, Waterford Wedgwood, the pottery giant, went into administration. The company was bought by KPS, an American private equity firm, which managed to purchase the prize assets of Wedgwood, Royal Doulton and Waterford without taking on board any of the £134 million pension liability of the Wedgwood group pension fund. This was the initial cause of the problem.
Pensions legislation, introduced initially in 2005 and amended in April 2008, now means that the museum, a small charitable trust, is being held responsible for the £134 million shortfall in the Wedgwood companies’ pension plan, because five of the museum’s staff are among the Wedgwood group pension fund’s 7,000 members. We have the madness of a £60,000 pension liability being liable for £134 million of debts, with a priceless collection at risk. How can this be?
The museum staff are not employed by the insolvent Wedgwood firm, but by the entirely independent Wedgwood Museum Trust Ltd, a completely separate charitable company. The brand new museum, housing a 250-year-old collection, has not gone bankrupt, but it has gone into administration, because the Pension Protection Fund has made a claim on every penny of its assets.
To be fair to the PPF, it has acted intelligently through the process, as it seeks to find a solution. However, under the “last man standing” principle, the Wedgwood museum is still a solvent company: it is the last man standing, because five of its employees are in the same pension fund. The legislation might have had laudable aims in preventing large multinationals from hiding assets to reduce pension payouts, but somehow charities and trusts have fallen foul of its far-reaching tentacles.
In such a context, it is important to make it absolutely clear that even if the whole collection were sold, it would not meet even half the pension debt, and the 7,000 ex-employees would not receive any more pension income. The money would simply be swallowed up by the Pension Protection Fund. Loyal ex-Wedgwood employees know this and support our campaign to save the historic collection. They know from experience the hard work, craftsmanship and sheer excellence of design that went into producing many of the pieces in the collection. All the citizens of Stoke are immeasurably proud of the Wedgwood museum and will be devastated if it becomes a victim of poorly applied legislation and a pensions crisis.
Joan Walley
I simply want to put on record my thanks, and that of my constituents, to all those Wedgwood employees who, over the years, have made the collection what it is. It is absolutely essential that, when the Minister replies, he assures the people of Stoke-on-Trent that he will look at a plan B or at whatever is needed to ensure that we do not end up losing this most precious of museums.
Tristram Hunt
I thank my hon. Friend for her intervention and wholly concur with her.
The future of the Wedgwood museum collection now rests on a court decision expected in January—though it would be good to have some clarity on dates from the Minister—as to whether the collection is alienable. Former Wedgwood employees, local Stoke and Staffordshire enthusiasts, Wedgwood family members and leading historians, curators, artists and ceramicists are appalled by the situation. Sir Neil Cossons, chairman of the Royal College of Art, puts it well:
“If the court case goes against the museum it will not only be catastrophic for one of the finest museums in the country but blow a hole through all our assumptions about the inalienability of collections held by trusts.”
The case could have major implications for other museum trusts across the UK. Which museum linked to a pension deficit of a local authority, university or company might be in difficulties after a poor judgment?
Tristram Hunt
I ought to give way to the hon. Gentleman, if he wants to intervene.
Tristram Hunt
If that is the format, that is okay.
As ever, the Minister has listened attentively. We seek some commitment from the Government that they are doing more than simply watching this car crash take place. As my hon. Friend the Member for Stoke-on-Trent North asked, what are the Government’s plans for the Wedgwood museum if the case goes against it? Do the Government have plans to amend legislation, to ensure that such a crazy outcome never befalls another museum? Will they put pressure on the Pension Protection Fund so that if the case goes against the museum, there will not be a quick-fire sale of historic assets?
The pottery industry of Staffordshire and Stoke-on-Trent is far more than a museum piece, as last week’s Ceramics 2010 exhibition proved. However, the industry values its heritage and continues to draw inspiration from the designs and craftsmanship that the Wedgwood museum embodies. It would be a monstrous act of cultural self-destruction and a betrayal of those very people who have made objects of great beauty from the soils of Staffordshire if the museum was allowed to collapse, and with it a vital component of the meaning and memory of the potteries.
Robert Flello (Stoke-on-Trent South) (Lab)
I congratulate my hon. Friend on securing this extremely important debate. It is important not only to the people of north Staffordshire but to people across the globe. This is an industry that is at the heart of the beauty and craftsmanship that goes on around the world. Does he think that it would be appropriate for the Minister to furnish the House of Commons Library with details of museums that may be in a similar position in future given that they, too, may have links with pension funds? That would enable us to know as soon as possible what other collections around the country may be at similar risk.
Tristram Hunt
That is a very good point. It would be interesting to know what other museums could be at the same risk as the Wedgwood museum. Some people believe that this is a one-off case, but knowing lawyers and judges as I do, that is rarely the case.
Paul Farrelly (Newcastle-under-Lyme) (Lab)
Does my hon. Friend agree that this is not just a parochial issue for north Staffordshire? The Wedgwood museum is iconic for the whole industrial and cultural heritage of the country. Indeed, Wedgwood was one of the first global brands and is still one of our best-known names. Does he agree, therefore, that it would be sacrilege if it were forced to be sold or broken up as an unintended consequence of insolvency regulations relating to pension funds? If the case were to go against it in court—courts are bound by the law—it is vital that legislation be pushed through to tidy up these loose ends, because, at the end of the day, that is what the House of Commons is for.
Tristram Hunt
I absolutely agree with my hon. Friend. It is crazy for legislation to be applied in this context. It is right that this museum should be able to provide encouragement to the pottery industry in Stoke-on-Trent, which is beginning to export and innovate more and to return to health, and that we have a Government who believe in manufacturing and growth outside the south-east. The museum is a good symbol of their commitment to a broader vision of a regional economy.
Mr William Cash (Stone) (Con)
I am extremely grateful to the hon. Member for Stoke-on-Trent Central (Tristram Hunt) for allowing me to speak. The previous Member for Stoke-on-Trent Central was Mr Mark Fisher, who was a great friend of mine.
I should like to congratulate the hon. Gentleman on the way in which he has conducted himself in this debate because the issue relates not only to the museum itself but to the whole question of how we address the anomalies that can arise when a piece of legislation unexpectedly hits a museum and our artistic heritage in such an unpredictable and, I believe, unintended manner. It almost provides a reason for contemplating the idea of retrospective legislation. It would be extremely rare to do that, but there are circumstances that can arise, such as money not being available. A court judgment, which no doubt follows the letter of the law, may have an unpredictable result, such as the destruction of something as important as this museum, in my constituency. I should like to pay tribute not only to the hon. Gentleman but to all the other hon. Members here. This is a very important debate, and I want to give the Minister plenty of time in which to reply.
I received a letter from the chairman of the trust a few days ago, for which I am grateful, expressing his concern and saying that the question of future legislation must be discussed with the Government, which we shall do. Let me add that the reference to the anti-slavery movement by the hon. Member for Stoke-on-Trent Central, who is a distinguished historian, touched me because members of my own family were involved. In fact, Samuel Lucas and John Bright no doubt had meetings with the family over it all.
As for the future, we must resolve this matter. This is not just an aberration; it is something that must be resolved. I know from the useful letter that I received from the Minister only a few weeks ago that he himself is well apprised of that. He said:
“I too am concerned to protect the Wedgwood Collection and the award-winning Wedgwood Museum.”
I know that he means what he says. I am quite sure that some means will be found to deal with the matter, perhaps using the National Heritage Memorial Fund. I drew up the first draft of the Bill in the 1970s for Denis Mahon and Arthur Jones when we had had an historic houses meeting. I drafted the Bill and, to all intents and purposes, that is the basis on which that fund now exists. It was to deal with war surplus and it is now being topped up. Before, it was just being allowed to become a wasting asset. I know that the Government now are committed to that fund and that there are also the lottery funds as well. There are all kinds of ways and means to address the matter. There is the prospect of legislation—perhaps even a private Member’s Bill. I hesitate to suggest anything that has a “Downton Abbey” look about it, but to save the entail of Staffordshire, perhaps a private Member’s Bill is appropriate.
I should also like to pay tribute to at least one member of the family who is here today. I pay tribute to the family and to the whole tradition of Wedgwood, including its employees and others, such as Christopher Johnson, who have taken an active part and an intelligent interest in the manner in which a resolution can be achieved. Given the fact that the organisation is in a legal situation, the most that we can do is to find a way out of this impasse.
I should also like to pay tribute to Neil Cossons, who is a distinguished expert in heritage and who also worked with me in the Ironbridge Gorge Museum Trust in the 1970s. He has now gone on to so many great things. To have his support is tremendously important.
In conclusion, we must find a solution. The Government, I believe, are determined to do so. I wait to hear what our distinguished Minister has to say.
The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (Mr Edward Vaizey)
I am grateful for the opportunity to speak under your chairmanship for the first time, Mr Hollobone. I know that you will go on to have a distinguished career as a Chairman of these kinds of debates, and in many other areas of the parliamentary process. I also congratulate the hon. Member for Stoke-on-Trent Central (Tristram Hunt) on calling this debate to highlight the plight of the Wedgwood museum. It has been very enjoyable—I hesitate to use that word—to hear him set out the case for the Wedgwood museum in the forceful style to which many millions of television viewers have become accustomed. I also express my gratitude to the number of hon. Members who have attended and spoken in this debate. I refer to the hon. Members for Stoke-on-Trent South (Robert Flello) and for Stoke-on-Trent North (Joan Walley), I thank my hon. Friend the Member for Stafford (Jeremy Lefroy) for his presence and the hon. Member for Newcastle-under-Lyme (Paul Farrelly), who intervened. I pay tribute to the speech made by my hon. Friend the Member for Stone (Mr Cash). We had not only a deep historical analysis of the importance of the Wedgwood collection, but, through my hon. Friend —he is one of our foremost and most distinguished constitutional lawyers—we were able to have a tour d’horizon of the legislative or constitutional solutions that might pertain to the future of the Wedgwood collection.
As the hon. Member for Stoke-on-Trent Central made clear, the Wedgwood collection is part of this country’s history. I make no bones about that; it is probably one of the most important crafts collections and one of the most important historic collections in the country. It is an integral collection and, as the hon. Gentleman indicated in his speech, it has been more than 250 years in the making. It stands, as it were, at one end of the spectrum of the craft in which this country continues to thrive, a spectrum that ranges from the Wedgwood collection to the creation of the Victoria and Albert Museum, which is the foremost museum of crafts in the world. Two years ago, the Wedgwood museum won the prestigious Art Fund prize and the Victoria & Albert Museum of course reopened its crafts galleries to huge acclaim.
It is absolutely clear from the remarks of hon. Members that have already been made during this debate and I hope that it will be absolutely clear from the remarks that I will make in concluding the debate that none of us would like to be in this position. We are almost, as it were, walk-on parts in an obscure Dickensian novel, in which a complicated piece of legislation has the most dramatic and unintended consequences. Potentially, those consequences put one of the great cultural jewels of the nation under threat.
Nevertheless, as a Minister I cannot circumvent the law. At this stage, I must simply report to hon. Members what I believe to be the current position and then I can perhaps extrapolate from that position where we might go with a plan A, or indeed a plan B. So I want to update hon. Members on the progress on the case; I want to outline the Government’s position; I want to set out what I believe could be the next steps to protect the museum and avoid the loss of the collection; and, as hon. Members have suggested, I also want to consider what we can learn from this case to ensure that other museums do not find themselves in a similar position in the future.
First, as the hon. Gentleman pointed out, the Wedgwood museum went into administration in April this year after it was served with a substantial pension debt by the company that was set up to manage the Wedgwood Group pension plan. The trustees of the museum firmly believe that the museum’s collection is held in special trust and should not be available to pay that debt. Therefore the administrator, together with the trustees of the museum, is preparing to make an application to court to clarify the status of the collection. That application will be made when certain administrative matters have been settled, which we are informed should be by the end of November. Then the administrator will be able to make a formal application to court. Although that application to court will be made as soon as is possible, the timing of the court hearing is not within the control of the museum or the administrator.
As the hon. Gentleman also indicated in his opening remarks, the museum is in the unfortunate position that it finds itself in because of its participation in a multi-employer pension scheme covering a number of employers in the Waterford Wedgwood Group. When the group went into administration in 2009, the museum found itself as the last remaining employer in that scheme. Therefore, the museum technically became responsible for a pension debt that, as the hon. Gentleman indicated, is in the region of £134 million. That pension debt or shortfall affects some 7,000 members of that pension scheme, including former employees of Wedgwood Ltd, Josiah Wedgwood & Sons Ltd and Stuart and Sons Ltd.
Due processes now need to be followed to establish what assets are potentially available, and the Wedgwood museum is not exempt from those processes. The pension scheme has now entered an assessment period for the Pension Protection Fund, the body that was put in place to ensure that pension scheme members receive a meaningful income in place of their pension, where an employer has become insolvent or where there are insufficient assets. However, the PPF has no control over the sale of the museum’s assets.
We must follow the correct processes. If schemes such as the Wedgwood Group pension plan were to be admitted to the PPF without pursuing the debts owed to them, a greater burden would fall on pension schemes that pay the pension protection levy. That would then undermine the financial sustainability of the system and its ability to serve its purpose. Unfortunately, as I have already indicated, in this case there is a view that the Wedgwood collection could be a potential asset.
The Charity Commission was asked to provide a view on whether the collection is held in permanent endowment or whether it is part of the charity’s corporate property, which is available to creditors. The issue was considered at the very highest level by the Charity Commission. Despite the commission’s sympathy for the museum and its recognition of the importance of the collection, it reached the conclusion that the museum’s collection was not protected.
The commission cannot exercise any discretion in that decision and it must reach a conclusion based on the facts of the case and the law. However, it is a regulator and it can only reach a view on whether the collection is held in permanent endowment. The only body able to give a definitive ruling remains a court of law.
Given what is at stake here and the need for absolute certainty, the commission has confirmed that it would give consent for the museum to take court proceedings. The process of administration intervened before those court proceedings could commence.
The Government have not ignored this situation and fully recognise the implications for the people of Stoke-on-Trent and the potential loss of their heritage and indeed the nation’s heritage.
Mr Vaizey
It has been a while since I studied trust law, but I am not quite sure on what grounds equitable relief would be available in these cases. However, I would defer to more senior counsel on that point.
I would like to return to what I was discussing before my hon. Friend’s intervention, which is my Department’s involvement in the issue of the future of the Wedgwood collection. The Department has worked closely with the museum’s director and trustees, their legal advisers and the Charity Commission to assist in this matter. Under the last Government, the Department provided assistance to the Wedgwood museum, and since I have been in office I have also given as much assistance as I have been able to.
I will recap on the Department’s involvement so far. First, the chairman of the museum approached the Department in October 2009 to ask for help in clarifying the status of the collection. Department officials set up a meeting with the Charity Commission, in which the commission agreed to review the museum’s evidence. That led to the commission taking the view about the collection that it did.
More important, in January of this year the Museums, Libraries and Archives Council awarded a grant of £200,000 to the museum to support its legal costs. I know that hon. Members will agree with me, particularly as it happened under the previous Government, that that was an important injection of financial support given the situation that the museum finds itself in. The Department also gave a one-off grant of £25,000 to support the museum’s operational commitments.
As the hon. Member for Stoke-on-Trent Central pointed out, the Heritage Lottery Fund had already generously funded a substantial proportion of the new museum, but since January of this year it has awarded a grant of £50,000 towards the museum’s educational work with schools, its volunteers’ programme and staff training, to enable the museum to meet the new challenges that it faces.
In July, I wrote to the new owners of the Wedgwood company to alert them to the museum’s predicament and to emphasise the importance of the museum’s collection. I am pleased to say that the museum now has a good relationship with the new owners of the Wedgwood company.
Throughout this time, my Department, the Heritage Lottery Fund, the Museums, Libraries and Archives Council and the Charity Commission have all worked as closely as possible to support and advise the Wedgwood museum, and to try to plot a way forward. As a result of that work and the efforts of the museum’s director and its excellent staff, the museum is still open to the public and receiving a steady flow of visitors. It has made strong partnerships with the local cultural and tourist industries, and it has a business plan in place to ensure that it can continue to operate if the courts should rule in its favour.
To sum up, I believe that my Department and its sponsored bodies have acted quickly and effectively to support the Wedgwood museum during the past year, when there have been two different Governments.
Tristram Hunt
I just want to ask whether the Minister will be having talks with the PPF. In particular, if the judgment goes against the museum and therefore its assets are considered liable, what is the space that the PPF has, in terms of giving time for raising money and for appeals, so that we do not have Sotheby’s and Christie’s crawling all over the collection on a Tuesday morning and so that we can work to save it?
Mr Vaizey
Let me continue with what I was going to say, because some of my points may address that issue. As I was going to say, we must await the outcome of the court case. However, I will happily discuss with the PPF what more needs to be done. In terms of a plan B, we have had discussions with two national museums about what should happen if there is a problem, and we will work for a solution that way—