The Minister for Immigration (Damian Green)
I understand why the hon. Member for Newport East (Jessica Morden) has chosen the debate, and she is to be congratulated on securing it. Given her reputation, I would expect her to defend her constituents as passionately as she has done tonight.
What I can do most usefully is disentangle the emotion from the facts, because although some of what the hon. Lady said was undoubtedly valuable, some of it was misleading, and some of her colleagues’ interventions frankly suggest that they do not understand the Identity and Passport Service proposals for Newport. It is important to hold the debate on a factual basis and, indeed, on the basis of the previous Government’s actions towards other passport offices. The IPS has been contracting its network of regional offices for some years.
I met the hon. Lady and the hon. Member for Newport West (Paul Flynn) last week. I was surprised when she said that she did not have any information because, as she and the hon. Gentleman know, I handed her the internal working document that the IPS used as the basis of its action. She asked for those details tonight but, as she knows, she was given them last week.
Paul Flynn
The Minister will recall from that meeting that we expressed some dissatisfaction with the idiot’s guide to the decision that we were given, and we questioned many of its conclusions, although we had only a brief time to look at it. We asked whether we could see the full report on which it was based, but no assurance was given that we would have it. Indeed, I suggested that we might need a freedom of information request to get it. Will the full report on which the decision was based be made available and put in the Library?
Damian Green
I shall ensure that the hon. Gentleman gets the available information, because I acknowledge his concern and that of the hon. Lady about the impact of job losses on the staff, their families and the local community. As the hon. Lady knows, I have met the leader of Newport council to hear his views. Of course, a proposal to lose 250 jobs has not been made lightly.
The Identity and Passport Service has long recognised that its greatest asset is its reputation, and IPS employees make a significant contribution to that, as reflected in the high levels of public satisfaction with the delivery of passports and civil registration. The Identity and Passport Service has a reputation for quality of delivery, which is achieved by those who work for the agency across the UK.
The service is paid for through the passport fee, which covers the cost of the domestic passport service and consular services overseas for British citizens. Passports have to be delivered within the fee structure and be available to the public at an economic rate. When efficiencies can be made through better working, they should be—indeed, they must be. That is why in 2008, the hon. Member for Hackney South and Shoreditch (Meg Hillier), to whom the hon. Lady referred, closed the application processing centre in Glasgow, with the loss of 124 staff. The Glasgow office currently retains a premium and fast-track service, but the processing centre work was absorbed by other regional centres. I cannot emphasise enough that that is exactly the same proposal that the Government are making for the Newport office. All the rhetoric about respect and the Government’s somehow picking on the people of Newport or of Wales is wrong.
Damian Green
The hon. Gentleman has had his chance, I have not got much time and he has already made many points. I hope that he can contain himself for the moment.
There is absolutely no disrespect to the people of Newport or of Wales. Hon. Members know about the country’s economic position and the new Government’s terrible inheritance. That is why we are having to make such decisions. It would be entirely inappropriate for the passport fee to subsidise the IPS if it were or would knowingly be over-staffed or operating with excess capacity. However, that is the situation that the IPS faces. In the case of the five remaining passport application processing centres in the UK, at Belfast, Durham, Liverpool, Peterborough and Newport, an operational review was carried out by the IPS in the light of the planned programme of efficiencies to be achieved within the next 18 months. The review identified that meeting those efficiencies by spring 2012 and beyond would result in excess capacity of around 350 staff and some 25% of the IPS estate. Therefore, cuts do have to be made.
Damian Green
That is simply not true. The IPS has already lost around 100 jobs at headquarters through efficiencies and, as the hon. Gentleman knows, it is making cuts across all regional offices. In addition, the IPS has already reduced some excess capacity across the network through voluntary redundancies. The announcement at Newport reflects the need for the passport fee to pay for the delivery of a service and not for surplus posts or excess office accommodation.
Owen Smith (Pontypridd) (Lab)
The Minister says that cuts are being made right across the board in the IPS, but surely he sees that one fundamental difference is that Wales will be the only country left in the UK without a passport office. That is a fundamental difference, whatever the cuts made elsewhere.
Damian Green
That would be a fundamental difference if it were true, but it is fundamentally wrong. It is false, and the hon. Gentleman is misleading people if he is saying that Wales will be left without a passport office. There will still be a passport office for people to go to in Newport. The hon. Member for Bristol East (Kerry McCarthy) said that people travel from the south-west of England to go to the Newport passport office, and they will still be able to do so. I have read many recent editions of the South Wales Argus, with pictures of people holding placards saying, “Wales mustn’t lose its only passport office”. I am happy to assure not just the people of Newport, but the people of Wales that Wales is not losing its passport office, and it is simply misleading for hon. Members to keep repeating the falsehood that it is.
I recognise that this is a difficult time for many people, and I appreciate that many members of staff working in passport offices up and down the country have contributed to the success of the passport operation. That is why the IPS carried out an objective assessment of its UK operation, to establish how to respond to the excess capacity. A comparative assessment was made of the five centres to determine how best to achieve a better, more efficient service for all existing and future passport holders. The assessment was based on the criteria of cost, affordability, estates, people, customers, partners, performance and operational feasibility.
The primary consideration lay in the ability of the agency to achieve the right level of efficiencies, while retaining sufficient operational capacity to maintain the current high level of service. The assessment had to consider whether an application processing centre could be closed without the need to recruit additional staff back into the remaining offices. Achieving the savings through efficiencies was a key criterion, but it had to be demonstrated in the assessment that savings would be sustainable and would not simply reappear as a future cost to the IPS during periods of peak demand. As I think the hon. Member for Newport East knows, I have undertaken to carry out a full impact assessment, in line with the requirements of the Department for Business, Innovation and Skills. I note in passing that such an assessment was not published at the time of the Glasgow closure.
I appreciate that the hon. Lady will consider Newport to be a special case that should receive special consideration. I would expect hon. Members in constituencies across the UK to consider jobs in their constituencies similarly to merit special consideration. However, the IPS applied the same economic criteria to all areas, for two reasons: first, to ensure consistency and fairness; and secondly, because the IPS is a UK-wide service and requires an operational structure that ensures the highest standards of delivery and service for all its customers, in all parts of the United Kingdom. The IPS has identified the Newport passport application processing centre as the main potential candidate for closure by using an evidence-based approach. The closure would be achievable at the lowest cost, and would represent the most favourable net present value and enable the IPS to retain sufficient operational capacity after closure without the need to recruit staff to back-fill into other offices. The IPS is looking to achieve the necessary staff reductions while avoiding compulsory redundancy wherever possible. That is why, in the case of Newport, the IPS is working with the Wales Office and other Departments to help to identify opportunities elsewhere.
I repeat, in the hope that hon. Members will accept this salient fact, that the proposed restructuring of the regional application processing centres does not mean that Wales will be the only devolved nation without a regional office. The IPS will retain a customer service centre in Newport to service south Wales and the south-west, employing up to 45 people to provide a counter service and with the ability to deal with applicants in the Welsh language. That will cater for the 47,000 people a year who use the current Newport regional office and also provide capacity for 7,000 interviews. The service proposed for Newport after spring 2012 will be similar to the services currently in place at the IPS offices in Glasgow and London.
The point was made strongly to me by the Secretary of State for Wales, my right hon. Friend the Member for Chesham and Amersham (Mrs Gillan)—as it was by the hon. Member for Newport East—that shops in the centre of Newport have been closing and that there is a threat to the town centre. The footfall of those 47,000 people who visit the passport office is therefore essential to give some hope to the shops that remain in the town centre and to the town centre’s continuing regeneration. I found that argument very persuasive from my right hon. Friend and from the hon. Lady, and that is why I have decided that that office should stay in Newport. It could be moved to somewhere else in Wales; that would fulfil the criteria desired by other Opposition Members that Wales retain a passport office, and I could obviously do that without retaining it in Newport. Given the particularly difficult circumstances that Newport has faced, however, I think that it is right to retain the customer service centre there, and that is what we intend to do.
Obviously, this will be of little comfort to the hon. Lady’s constituents and those of the hon. Member for Newport West who might lose their jobs through the closure of the Newport passport application processing centre, but the decision reflects the importance that the IPS attaches to providing a service to passport applicants and holders across the UK. I am afraid that the IPS simply has excess staff capacity in its application processing and interview office networks of around 350 full-time equivalents. It has excess physical capacity of approximately 25% across the whole application processing estate, and excess staff capacity of about 150 full-time equivalent jobs and 39 local offices across the interview office network. That is why what is happening in Newport is not the only reduction that the IPS is having to go through. It is having to make cuts across all its regional offices and across the interview centres as well.
The IPS has begun a formal 90-day consultation period with the trade unions. It began on 19 October, and we will provide the unions with extensive background information on the decision to close the Newport processing centre. We are also looking into whether that information can be made public before the end of the consultation period. To answer another specific question, the IPS will be producing a full impact assessment, which will include an assessment of the economic impact of the loss of approximately 250 jobs. Home Office economists will support the IPS with that analysis.
We will seek to include as part of the assessment the impact of job losses on a local area, but that might not be specific to the economic environment in Newport. The IPS has conducted its closure analysis as an operational task, and to include in the analysis the effect on a specific local area, we would need to conduct a local economic impact assessment on all five application processing centres. Clearly, that is not a function for the IPS.
IPS officials are continually offering meetings to the First Minister and to local council officials in Newport. As I have said, I have already met the local council leader.
Jessica Morden
May I ask the Minister why he did not consult the Welsh Assembly Government before taking this decision?
Damian Green
As I say, we have started a consultation period, but, regrettably, as so often happens, for some reason somebody chose to announce this before all the consultations had properly taken place. The hon. Member for Newport West had asked for a meeting with me and I had agreed to meet him in the intervening period. As he knows, however, the BBC and various other journalists got hold of the date for the start of the consultation process. These things happen, and it is very unfortunate—