Public Bodies Bill [HL]

(Limited Text - Ministerial Extracts only)

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Tuesday 11th January 2011

(13 years, 3 months ago)

Lords Chamber
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I salute the improvements that have been made in the Bill and I hope that improvement may continue. In the mean time, I think that it would be impossible to carry out an effective review of the quangos except by an over-riding Bill of this kind. Primary legislation for each of these quangos would occupy the whole of the parliamentary session without room for anything else. Most of us agree that there are other things that require doing as well as dealing with quangos.
Lord McNally Portrait The Minister of State, Ministry of Justice (Lord McNally)
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My Lords, the noble Lord, Lord Ramsbotham, said that this Bill was a hospital pass. If anyone wants a definition of a hospital pass, it would be to have to reply to a debate on the criminal justice system when the contributions have come from the noble Lords, Lord Hunt, Lord Ramsbotham, Lord Lester of Herne Hill and Lord Newton of Braintree, the noble and learned Lord, Lord Woolf, and, just for good measure, the noble and learned Lord, Lord Mackay of Clashfern. It makes you feel plumb inadequate. However, I shall do my best to take the responsibility of the Ministry of Justice for the proposals that these amendments seek to change.

In some ways, to sound a philosophical note on this, I have never seen it as being a weakening of our system when a ministry takes responsibility and says that it will be responsible to Parliament and to the scrutiny of Parliament for what it carries out in its remit. In some ways, in recent years, with proper and due respect to the work of independent inspectorates, we have sometimes got over-reliant on, and have tended to reach for, the independent inspectorate for responsibilities which should be the responsibility to Parliament of the department and Ministers in that department.

In answer to the question asked by the noble Lord, Lord Hunt, we believe that the Criminal Procedure Rule Committee has made an important contribution and have no intention of abolishing it. We have now removed it from Schedule 7. As the noble and learned Lord, Lord Mackay, said, the problem in Committee is that if you make changes you are accused of U-turns and if you do not you are accused of inflexibility. Those are the burdens that we carry.

I shall try to address the issues raised by the group of amendments, which would remove the courts boards, the Crown Court Rule Committee, Her Majesty’s Inspectorate of Court Administration, the Public Guardian Board and the Magistrates' Courts Rule Committee from Schedule 1. We oppose these amendments because it would mean the retention of five arm’s-length bodies whose functions will no longer be required, either because their role has significantly diminished over recent years and is now being performed by other bodies or because alternative ways of performing these functions have been identified.

I am surprised that the noble Lord, Lord Bach—who is not here today—has tabled these amendments in relation to the courts boards and Her Majesty’s Inspectorate of Court Administration, given that he was the Minister in the Ministry of Justice when the decision to abolish them was originally taken by the last Administration.

For the convenience of the House, I intend to respond to the five amendments in this one speech, because part of the rationale asked for is overlapping. I hope that it is compelling in the reason for the abolition of these boards. The first reason is, in following their review of all arm’s-length bodies, the coalition Government have agreed with the judgment of the previous Administration that the function of certain of these bodies is no longer required. Like the last Administration, we believe that the courts boards and Her Majesty’s Inspectorate of Court Administration should be abolished and that this Bill represents the best mechanism to effect these reforms. The second reason is that the function of some of these bodies has greatly diminished over recent years and is now largely performed by other bodies. The Crown Court Rule Committee and the Magistrates' Courts Rule Committee fall into this category. It was exactly to identify these sorts of near-defunct bodies that the coalition Government’s review of the arm’s-length bodies was conducted. Again, the Bill provides an excellent and timely opportunity to remove such bodies from the statute book. I am pleased to note that the Lord Chief Justice agrees with the Government’s proposals in relation to these two bodies.

The third reason is that although the Government recognise the need to perform particular functions, we believe there are more efficient ways of doing so. The oversight function performed by the Public Guardian Board falls into this category, and I will explain in a moment how the Government propose to develop new governance arrangements to oversee the work of the Public Guardian.

Beyond these three broad reasons, I will outline our reasoning for each of the five bodies covered by the amendments. In the case of the 19 remaining courts boards, this decision was first taken by the previous Administration, and announced in March 2010. Courts boards were established partly because there was a fear that the voice of magistrates would be lost within a unified courts system. These fears have dissipated and there are now other structures in place such as the Justice Issues Group and area judicial forums to ensure that magistrates’ views are heard. There are also strong local relationships with magistrates’ bench chairs. The Magistrates’ Association was not consulted before inclusion, but of course will be available for the consultation which will precede implementation of any of these proposals.

Courts boards only ever performed an advisory function, and the function was significantly diminished over the last five years. As I mentioned, as a result of amalgamations, the number of courts boards has reduced from 42 to 19.

In terms of those functions, I should emphasise that courts boards do not themselves manage or administer the courts, but rather give advice and make recommendations to enable Her Majesty’s Courts Service to improve the service it provides. The Courts Service sought the views of the judiciary. It is the view of the Courts Service and members of the judiciary that courts boards are no longer necessary to assist in the administration of the courts in this way. Not abolishing the courts boards will cost the Ministry of Justice approximately £450,000 a year.

The senior presiding judge himself recognises the difficult decisions needed to be made in the light of the financial pressures which Her Majesty’s Courts Service faces. Although clearly it is a matter for Parliament, the senior presiding judge does not take the view that courts boards constitute an essential part of the business of the courts. He agrees that the savings which will result from that abolition, although relatively minor, could be used to support front-line services.

In terms of maintaining an oversight on the local delivery of court services, it is true that the role of the courts boards is to use their judgment to ensure that the perspective of the local community and of those who use the courts is taken into account. But there are other ways to ensure that the needs of the community are met, such as customer surveys, open days and more effective use of court user meetings. Her Majesty’s Courts Service is committed to building and maintaining links with local communities, and local areas will be encouraged to explore other options to ensure that links between the courts and local communities is not lost, specifically within the wider context of the current proposals to modernise and improve the use of courts.

The previous Administration originally took the decision to abolish the courts boards, and the coalition Government have agreed that their function is no longer required and have introduced this Bill to effect this reform.

The noble Lord, Lord Ramsbotham, referred to Her Majesty’s Inspectorate of Court Administration, and I will discuss the rationale behind the Government’s decision to abolish that. The context within which the inspectorate operates has changed significantly since its inception in 2005. The inspectorate’s predecessor, Her Majesty’s Magistrates’ Court Service Inspectorate, was set up before the magistrates’ courts were part of a national Courts Service. It was right that an independent body existed to inspect court administration. However, Her Majesty’s Courts Service has since been established as a single body, responsible for the administration of all courts, with its own robust management information systems and internal audit processes. The Courts Service is subject to external scrutiny by the National Audit Office and, by extension, the Public Accounts Committee. I draw the Committee’s attention to the 2009 National Audit Office report on the administration of the Crown Court as an example of this external scrutiny. For these reasons, Her Majesty’s Courts Service will no longer be subject to independent inspection.

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Lord Lester of Herne Hill: Before the Minister sits down, perhaps I may first confirm that there will be discussions tomorrow. We very much hope that the pith and substance of Amendment 175 will be retained, subject to drafting improvements. One hopes that that will lead to a result that we can all agree upon. The one matter that my noble friend the Minister has not dealt with—because it is not his responsibility—is the question that I raised at the beginning about the Joint Committee on Human Rights. Can my noble friend the Minister please nudge my noble friend the other Minister for some kind of assurance for the committee so that we can do our job properly by getting the human rights memorandum this week so that we can deal with it when we meet next Tuesday?
Lord McNally Portrait Lord McNally
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Like the seventh cavalry coming over the hill, my noble friend Lord Taylor nudged me to say that the Government will answer any questions that the JCHR has and will deal with that in correspondence with the committee. The Government consider that the provisions of the Bill are compatible with convention rights but I am sure that the promised exchange of correspondence will clarify that matter.

Lord Lester of Herne Hill Portrait Lord Lester of Herne Hill
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I am sorry but that answer is not compatible with the general approach of this Government and previous Governments to that committee. The undertaking that has been given in the past is that the Minister’s compatibility statement in every Bill is followed by a proper Explanatory Memorandum to enable the committee to do its job properly. Therefore, it is for the Government first to come forward with their account of why the Bill is considered to be compatible and the committee then comments on that, rather than the other way round. I very much hope that that can be reconsidered because otherwise the committee will have to complain about the fact that it has not had the usual memorandum from the Cabinet Office and therefore cannot do its job properly. That simply wastes public money and time.

Lord McNally Portrait Lord McNally
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My Lords, one of the advantages of having Hansard and of having my noble friend Lord Taylor sitting next to me is that he will have heard that exchange, will read it carefully in the morning and respond to it appropriately.

Lord Newton of Braintree Portrait Lord Newton of Braintree
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My Lords, as the troublemaker, or one of them, it would be churlish of me not to acknowledge that I thought that was a pretty reasonable reply overall. If it were my amendment, I would be minded to withdraw it while reflecting on some of the points that have been made, particularly about inspectorates.

Lord McNally Portrait Lord McNally
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That now puts me 3:2 up as regards interventions by the noble Lord, Lord Newton—by that I mean that he has supported me three times and has caused trouble twice—so I think I shall quit while I am ahead.

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DPTAC is not a costly body. Payments for members were introduced only in the past year. The overheads of the committee are relatively modest. They include the salary costs of around four DfT officials, payments to members and out-of-pocket expenses, and some admin costs, such as stationery. The committee staff are located in the DfT. There are no other property overheads. This is not the kind of quango that commands a multimillion pound budget. The financial savings that will be made by abolishing it will not be significant if one contrasts that with the negative impact on the mobility and transport needs of disabled people that the abolition of the committee will have. I hope very much that the Government will think again about its abolition.
Lord Freud Portrait The Parliamentary Under-Secretary of State, Department for Work and Pensions (Lord Freud)
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My Lords, this group of amendments would remove the Disability Living Allowance Advisory Board and the Disabled Persons Transport Advisory Committee from the list of bodies to which the Public Bodies Bill applies. I can see no circumstances in which this would be desirable. Both these bodies were set up for very good reasons but they no longer reflect the world in which they operate.

Let me first turn to the Disability Living Allowance Advisory Board. The board was established in 1991 to provide advice to the Secretary of State on matters relating to disability living allowance and attendance allowance. I am delighted to thank members of the board for the advice that they have provided over the years, which has contributed to policy debate in the department. However, as other noble Lords have pointed out, it should be noted that the board has not been asked to provide advice since November 2008 by the present or the previous Administrations.

Medical experts in the department are already providing the department, including disability living allowance decision-makers and departmental medical officers, with medical advice and medical input into policy decisions. When required, the department can obtain expert medical advice in specialist medical fields using “task and finish” groups. Members of Equality 2025, a public body, are well placed to provide personal insight into the effects of policy initiatives.

One of the things that has changed since 1991 is the creation of the Office for Disability Issues. The fact is that it has managed to organise a much wider range of channels from disabled people’s organisations and groups which completely changes the environment in which this advisory body, among others, operates. It is in that context that we should look at this step.

I turn now to a specific point raised by the noble Lord, Lord McKenzie, about the reform of the DLA and the involvement of experts in that reform. We have a group of independent specialists in health, social care and disability, as well as disabled people. The group includes individuals from a range of professions such as occupational therapy, psychiatry, physiotherapy, social work, general practice, community psychiatric nursing, and representatives from RADAR and Equality 2025. We are pulling in from widespread channels a huge variety of relevant expertise.

A question was raised by the noble Lords, Lord McKenzie and Lord Knight, about the length of the consultation period. We did consult widely with disability organisations, letting them know our thinking well in advance of the publication of the consultation, and we will continue to work with and involve them in the overall process going forward.

Let me finish my remarks on this particular board. This is a classic example of a body that was set up for a very good reason, but which has now outlived its useful life. Things have moved on since 1991 and the Public Bodies Bill will allow the Government to reflect those changes by abolishing this body.

Lord Knight of Weymouth Portrait Lord Knight of Weymouth
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I am grateful to the noble Lord. Can he tell us how much he is saving by getting rid of it?

Lord Freud Portrait Lord Freud
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This is not a change being made with any view to making savings because I think that this board does not cost anything at all. I believe the services of the board members are given on a pro bono basis, for which we have been very grateful. Neither of these are money-saving measures since in money terms these bodies are rather inexpensive sources of advice, but the point is whether they are a relevant and necessary function in a changed environment.

Let me turn to the Disabled Persons Transport Advisory Committee. The Government’s approach to disability and transport has moved forward significantly since 1985 when the committee was established and the important issues of disability equality are now a core element of departmental policy and delivery. At a practical level, although there is still more to be done about the kind of improvements that still need to be made—no one would disagree with the points made by the noble Baroness, Lady Turner, and the noble Lord, Lord Low—nevertheless it is the case that access to all modes of transport has been transformed over the past two and a half decades. Rather than seeking access for disabled people as a specialist topic, transport operators across the sector are now expected to incorporate their needs into the mainstream of transport planning and delivery. All public bodies have a statutory duty under the Equality Act 2010 to take equalities issues into account in their decision-making. Against this background, and while recognising the valuable work that the committee has done for the department in areas such as accessibility and mobility policy, there is scope to reform the way in which disability advice is delivered to increase flexibility and accountability to the taxpayer.

The question was raised by a number of noble Lords about what or whether anything replaces the DPTAC advice. We intend to commence a consultation in the near future on successor arrangements to DPTAC in order to ensure that we continue to get the advice that we need, thus improving accountability and flexibility and, therefore, value for the taxpayer. It is worth noting that the policy divisions within the Department for Transport increasingly seek advice from specific modal groups. For example, in aviation the department tends to use sources of information closer to the aviation sector—airlines, airports, the CAA, and so forth. The question of timing was raised by the noble Lord, Lord Knight, particularly in relation to the Olympics. DPTAC continues to exist until such time as it is abolished by order and this is unlikely to occur before 2012. Therefore, the Olympic work will carry on as routine.

The noble Baroness, Lady Turner, raised the point about whether local authorities would continue to perform their duties in this respect. No local authority should ignore the needs of disabled travellers. Local authorities are subject to clear equalities duties and, as such, should be actively promoting equality for disabled people. All transport operators within local authority areas are subject to provisions under the Equality Act 2010.

Let me pick up one or two other points. First, moving back to DLA and the mobility component, local authority contracts with care homes oblige those care homes to make sure that their clients or inhabitants have access to doctors, dentists and other local services and to help residents pursue their independence. That is part of the confusion of obligations that we are trying to disentangle and will do so under the DLA reform that we are undertaking.

Secondly, to pick up the point made by the noble Lord, Lord Low, on the replacement of DLA with PIP, or personal independence payment, about 14,000 people on DLA have never had their claims looked at since getting the benefit in the period from 1992 to the present day and around 20 per cent of people on DLA have not had any contact with DWP in 10 years. The reduction in the forecast working age expenditure, which we are looking at in the DLA reform, effectively brings expenditure in 2014-15 back down to what it was in 2009-10. We are talking about a cut in a projection, not an absolute cut.

I close with our reason to abolish DPTAC. The Secretary of State for Transport and his department will continue to ensure that transport policies promote equality. We will also, as I said, be taking forward a consultative process on successor arrangements to the committee in the coming months. As part of that process, the Department for Transport will of course publish the full impact assessment. Given that, I ask the noble Lord, Lord McKenzie, not to press the amendment.

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Lord Freud Portrait Lord Freud
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I ought to respond to that, especially to the creator of the board. The core point is that these advisory bodies are rather narrowly focused and we are now looking at a much wider set of obligations and a much wider capacity. We have the Office for Disability Issues, which was never thought of in the 1990s. That provides a whole range of channels into the community that did not exist. We are talking about moving from a narrowly focused piece of advice to a much wider set of interchanges with the disabled community. My noble friend was right. This has not been done for monetary reasons, but to reflect the world that we live in and to get advice on the broadest possible scale in the right way when we need it.

Lord McKenzie of Luton Portrait Lord McKenzie of Luton
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My Lords, I am grateful to all noble Lords who spoke in this short but well informed debate. I am doubly grateful to the noble Lord, Lord Newton. I said when I introduced these amendments that I did not propose to press them today and I do not, but he has given me special food for thought when we come to Report. Like the noble Lord, Lord Newton, I was not totally convinced by the Minister's response although as ever he did a sterling job trying to hold the government line.

To summarise the contributions of all noble Lords other than the Minister, I say that they recognised the importance of hearing the voices of disabled people in these situations and not just a lone voice—a point made by the noble Lord, Lord Low. We need to hear about the full range of issues that disabled people face. We heard about the importance of an independent voice, as the noble Lord, Lord Newton, said—not just speaking when you are spoken to and asked a question. There needs to be an independent means for people to input. I agree with that point about not just responding when you are asked a question.

Each noble Lord who spoke did so from a particular standpoint. My noble friend Lady Turner spoke of her own challenges with mobility in recent times. She raised the issue of local authorities and the Minister reminded us of the equality duties imposed on local authorities. We have to recognise that the financial constraints currently imposed on local authorities are draconian—the worst they have faced for decades. That provides them with challenges.

I was not aware that the noble Lord, Lord Newton, was the creator of the DLA and DPTAC that we are discussing today. To date, before his Government’s measures, they have stood the test of time. We are not opposed to a recasting of DLA. I mentioned in my presentation the sort of issues we look to come out of the review. My noble friend Lord Knight of Weymouth raised some important issues. On the timing, I am delighted that DPTAC will at least outlast the 2012 Olympic Games. That is to be welcomed.

The other general theme on which all noble Lords focused was that of knowing, if you are going to get rid of something, what is going in its place. We had one veil lifted this afternoon in relation to the advisory board and the engagement on the recasting of DLA, although the noble Lord, Lord Low, rightly pointed out some of the problems with the consultation. If the input the Government are now getting is, as they argue, so important, valuable and different that it displaces the advisory board and DPTAC, how have they ended up with this huge challenge around the mobility component of DLA and the need to revisit and revise the numbers? There is an inconsistency in the Minister’s argument.

Prompted by the question on cost of my noble friend Lord Knight, the noble Lord, Lord Newton, said that if something costs nothing then we do not need to spend money on putting something in its place. We can get advice for free so why change it? I acknowledge the role of the ODI and the new engagement that it has brought to the whole issue of dealing with disabled people and their challenges. However, that in itself is not a reason for doing away with these bodies, particularly DPTAC. I was not aware of the issue raised by the noble Lord, Lord Low, about the Department for Transport having just one person along to their bus advisory board. How can that one person possibly represent the full range of issues faced by disabled people needing to access public transport and buses in particular?

There are some issues there that the Government need to be clearer on if we are not to take forward at least one of these amendments on Report. For the time being, I beg leave to withdraw Amendment 33 but we need to look at the record of this debate and think seriously about what we will do on Report.