Grand Committee
(10 years, 10 months ago)
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City of Bradford Metropolitan District
(10 years, 10 months ago)
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Baroness Eaton
To ask Her Majesty’s Government what assessment they have made of the opportunities and constraints for the wellbeing of the City of Bradford Metropolitan District.
Baroness Eaton (Con)
My Lords, Bradford is a unique and fascinating place, and the fact that so many of your Lordships have chosen to speak today is an indication that I am not the only Member of this House with a passionate interest in this metropolitan district. I thank all noble Lords for their support in speaking today.
The view of Bradford from those who do not know it first hand is coloured by a range of clichés and negative media stereotypes, many of which are anachronistic and often caricatured. However, of course the true picture of Bradford is more complex, more nuanced and certainly more positive than these stereotypes would have you believe.
The district is the fourth largest metropolitan district in England after Birmingham, Leeds and Sheffield. It is home to half a million people, a place characterised by diversity, huge contrasts in geography, wealth and built environment, communities of many cultures and ethnicities, and a place which typifies the complex range of socioeconomic, environmental and political problems and opportunities, which is the stuff of contemporary public policy.
What surprises many visitors and is perhaps unique among metropolitan districts is that two-thirds of the district is rural. The city of Bradford’s urban and cosmopolitan qualities contrast with, and complement those of, a number of vibrant towns and a host of Pennine villages. Furthermore, this diverse human settlement is set within a spectacular Yorkshire landscape of upland moors, wooded valleys and productive farmland. This multifaceted environment provides the public bodies within the district with distinct and complex planning and delivery challenges when attempting to balance the conflicting needs and interests of the economy, the environment and communities.
It is 12 years since the inner-city riots with which we are often still associated. In that time, our local economy has waxed and waned in line with national economic cycles, although underlying and positive structural changes have begun to take root. It is also noteworthy that during this period community relations have been mostly good and have improved, despite a dynamic picture of inward migration. The presence of many other, smaller communities and the growth of mixed ethnicity is resulting in one of the most diverse and cosmopolitan communities outside London.
Bradford is probably one of the few places where relations between different faith communities are such that the Council of Mosques has provided financial support to the Jewish community to enable it to complete major repairs to the synagogue. The development of good community relations is supported and enhanced by groups such as the charity Near Neighbours—I declare my interest as chairman—which works at grass-roots level, encouraging people from different ethnic groups to share in community activity.
Bradford’s population is now 524,600, and its growth is forecast to continue, reaching 640,000 by 2033. However, along with this dynamic population change, the district has significant economic inequalities. Eleven per cent of the population is in the most affluent decile and 40% is in the least affluent decile of the United Kingdom.
Bradford is a big economy, creating £8.3 billion of added value to the UK, forming the eighth largest economy in England and amounting to a fifth of West Yorkshire’s businesses and output. It has strengths across a range of sectors. The council and its business partners have agreed to promote it as “The Producer City”, providing a distinctive economic identity for Bradford based on real strengths in key industries and businesses across the district’s economy.
Bradford has a low-wage, low-skills economy, and over the next 10 years the working-age population of the district is projected to rise by 2,000 people per year. This population growth is driving a real need for jobs growth. To maintain current employment rates of 64.9%, an additional 10,000 people will have to find employment by 2021. Improving education and skills levels is essential to future prosperity.
The council is working with a range of business partners on the Get Bradford Working programme, investing in apprenticeships, skills development and the creation of industrial centres of excellence, all of which are paying dividends. We are seeing major companies now repaying this growing confidence by investing in major developments.
The Government are currently consulting on a West Yorkshire combined authority, which Bradford wishes to see progress. Work has now begun on the long-awaited £260 million Westfield shopping centre, and with the formation of the new private sector-led Producer City board there is increasing momentum for a significant upturn in the economy. Government support for Bradford’s economic ambition, and the work of the new Producer City board with the Leeds city region LEP, will be crucial. I therefore urge the Minister to extend Bradford’s city centre growth zone from December 2014 to March 2017. I also urge her to commit to a meeting with the Producer City board this year to explore what further support the Government might be able to offer Bradford’s economy, in particular the development of its engineering capacity.
Given the significant population growth in the Bradford district and the clear potential for significant economic growth, it is both surprising and disappointing that the key rail route through Bradford has not been included in the Government’s provisional plans for electrification between 2014 and 2019. Electrifying this route, which links Bradford with Leeds and Manchester and also provides a major commuter link with the towns along the Calder valley, would have a range of benefits for the wider region as well as for Bradford. These would include unlocking economic potential, reducing congestion on the M62 motorway and decongesting other major routes, and would also make a major contribution to carbon reduction. This line connects 2.5 million residents to Leeds, Bradford and Manchester, three of the UK’s largest cities.
Education standards in Bradford have historically been low, and this has held the district back economically. However, over the past decade and recently in particular, improvements in attainment have accelerated. The excellent partnership approach which includes community and faith schools, academies and free schools working together and challenging each other, has been praised and recognised by Sir Michael Wilshaw, head of Ofsted.
A considerable number of Roma families move to and settle in the Bradford district. Over 6,800 Slovakians and Czech Roma have established themselves in the district since 2000. Many of the migrants come to the district with low levels of educational attainment and little experience in the formal employment sector, along with huge health issues and large families. They therefore require extensive support to integrate. Levels of turbulence in these communities, due to instability of employment, have an impact on schools and other services. A national Roma integration strategy would enable the Government to influence the policy towards Roma in their countries of origin, as well as their integration in places such as Bradford. I urge the Minister to consider working with Bradford to develop an effective Roma integration strategy.
I hope the Minister will appreciate from the contributions she will hear today that there is a commitment from people and organisations in Bradford to use every opportunity to address the challenges facing them in a positive way. The requests I have made of Her Majesty’s Government would provide a very welcome helping hand.
Lord Patel of Bradford (Lab)
My Lords, I begin by congratulating the noble Baroness, Lady Eaton, on providing the opportunity for us to focus our attention on the city of Bradford. It is very fitting that she has tabled this debate given her tireless years of service to Bradford, as a local councillor and then as leader of that council for a number of years. I also look forward to the maiden speech of the noble Baroness, Lady Williams of Trafford.
Bradford is a great place. I came to live in the city at the age of one when my parents migrated to the UK from east Africa, so I have grown up in Bradford, I went to school there, and I have worked for most of my professional life there. Most importantly, I have life-long friends in Bradford and am proud to call it home. The city has had its ups and downs. To be brutally honest, the past few decades have not been kind to this once hugely prosperous city. It should be remembered that we were once the wool capital of the world: no more. The decline in that industry, however, is only part of the story.
As the noble Baroness, Lady Eaton, said, we have also suffered from negative media stereotypes. The burning of Salman Rushdie’s book in the late 1980s still haunts us. Racial tensions, which resulted in two major disturbances, led Bradford to being described as a city of segregated ethnic communities living “parallel lives”. No, these and other such stories have not helped us. However, we have worked hard to rise above this negativity, not only as a major and growing centre for manufacturing, with over 25,000 employees in that sector, but as a tourist destination. Besides the fact that we are blessed with beautiful and rugged rural areas, we became the first UNESCO City of Film with attractions such as the National Media Museum, Bradford City Park, the Alhambra Theatre and Cartwright Hall. Without doubt, Bradford also deserves the title of curry capital of the UK. Most recently, all our diverse communities came together, in a show of solidarity and cohesion, to give the English Defence League its marching orders when it had planned another of its disruptive marches in our city. That shows how far we have come.
However, we can only do so much. The economic climate over the past few decades has hit us hard, especially these past three or four years, by bringing us some of the most severe cuts to local authority spending and severely impacting our growth and redevelopment. High unemployment continues to be a persistent issue, especially for the growing population of young people who have also suffered from what were low, but are now thankfully improving, levels of educational attainment. We continue to have some of the most deprived areas in the country, with high rates of child poverty and infant mortality, and not surprisingly the gap between rich and poor is even greater. All these issues, coupled with the rise in fuel poverty and the number of food banks and stubbornly high levels of poor physical and mental health, pose many challenges for the city’s already stretched public services.
This is where the social capital of local people has been, and continues to be, key in tackling many of these issues. Many local people are already active in addressing these challenges. In fact, more than 20% of Bradford’s residents are engaged in volunteering, community groups or civic roles. Much of this crucial work is channelled through committed and hard-working voluntary sector services. I am proud to be patron of a number of these: for example, the Bradford Court Chaplaincy Service, the first multi-faith volunteer court service in the country; the Bridge project, which works with those misusing substances; Sharing Voices, a multi-ethnic mental health and well-being service; the Equity Partnership, which works with LGBT communities across the Yorkshire region; and Bradford Cyrenians, which for 40 years has been delivering services to homeless people. But they and others like them are struggling to keep delivering these invaluable services.
We all know that it is the small local agency, often supported by volunteers, which gives back to the local economy by creating jobs and providing local solutions to help those who are the most vulnerable find support while maintaining their independence. The local authority in Bradford has, to its credit, been innovative and creative with its support for these independent sector providers, but innovation and creativity can only go so far when you have had your budget cut ruthlessly and disproportionately. In view of the Government’s desire to promote localism and the concept of the big society, what further support are the Minister and the Government able to give to the city of Bradford to keep our crucial voluntary sector services delivering, developing and going?
Lord Shutt of Greetland (LD)
My Lords, I, too, thank the noble Baroness, Lady Eaton, for her passion and her balanced contribution in initiating this debate on Bradford. I, too, welcome the noble Baroness, Lady Williams, and look forward to her first contribution in this House.
I was brought up in a place called Farsley in the borough of Pudsey, three miles from Bradford and five from Leeds. I have kept my eye on Leeds and Bradford over the years, even though I now live half way between Halifax and Huddersfield. I have watched the exit door of Bradford, and I give three examples.
There have been firms of solicitors in Bradford—of national repute—which have said “Oh, we are going to open up in Leeds”—not open a branch in Leeds but shut the door in Bradford and take the whole place to Leeds. That has not been helpful to Bradford. When I was a lad there were five building societies based in what is now the Metropolitan Borough of Bradford. One remained, the Bradford Permanent, which merged with the Huddersfield and is now called the Yorkshire Building Society, the second largest in Britain. It put up a new headquarters a couple of miles the Huddersfield side of Bradford. Only last year, it announced expansion plans which involved putting 800 people in the city of Leeds. Is this the first move out? It is not good for Bradford. My third point concerns the threat of the National Media Museum leaving Bradford; many noble Lords may recall a short debate about that in this place. I have highlighted three developments that have not been good for Bradford, and that is in addition to the issue of manufacturing, which others are going to speak about.
This debate is about opportunities and constraints. One opportunity which is coming is HS2. Would you believe that it terminates in Leeds? One leg goes to Manchester and the north-west, one leg to Leeds. Compare and contrast: the Manchester terminus is to be parallel to Manchester Piccadilly station, and there is a spur which will enable trains to get to Manchester Airport, Liverpool, Runcorn, Warrington, Preston, et cetera. On the Yorkshire side we are to have a hammerhead terminal in Leeds that will not connect with Leeds City station. It will mean legging it somewhere between a quarter-mile and a half-mile from the London train. I do not believe that this is good for Bradford, and neither is it good for the rest of West Yorkshire, whether it is Halifax, Huddersfield, Keighley, Skipton, Harrogate or Wakefield. There is a danger, if it goes ahead, that the railway system will be ossified, so that there can never be through routes. This is important: it would mean an incredible constraint on connectivity in West Yorkshire, and it is something that government can do something about.
The Archbishop of York
My Lords, I, too, give thanks for the speech given by the noble Baroness, Lady Eaton.
At the last census, 84% of people in Bradford considered their level of well-being to be good or very good. That is 3% ahead of the national average, which is not surprising—Bradford is in “God’s own county” of Yorkshire. The statistics show the resilience of the people of Bradford. Bradford does not need pity, it needs positive commitment. Bradford is often spoken about from a distance, or as an illustration of certain national problems. The church, however, has a different perspective, an insider perspective. In 2005 the churches in Bradford set up an organisation called Bradford Churches for Dialogue and Diversity, to help bring together the different communities to learn from and share with each other. The government-funded Near Neighbours programme has provided small grants to many local projects. One of these brought together Muslims, Christians and Jews in a Muslim majority neighbourhood to share meals. This led to the Muslim community helping a local synagogue raise funds to repair a leaking roof. This is about restoring not just the fabric of a building but the fabric of a neighbourhood, of civil society.
Bradford is the most youthful city in the country: 37.4% are under 25, compared with a national average of 32.1%. But what are the prospects for these young people? At Bradford Church of England Academy, where I was a month ago, young people are doing my Young Leaders programme, unlocking their potential within their local communities. It is fantastic to see the energy going into a church club for older people. All kinds of projects are being done by young people. A lunch club has been created.
These young people have so much to offer, but in parts of the city, Church Urban Fund research indicates that child poverty rates are as high as 42%. What will happen to those children, for example, if the Government abolish, as they plan to do, the ring-fenced funding given to local councils for crisis payments and community care grants? The link between poor health, poor housing and poverty is of particular concern, with just over a quarter of the district’s children classed as living in poverty. There are 287 families across the district currently affected by the housing benefit cap. The average reduction to housing benefit for those families is £49.29, and needs to be made up from other benefits to avoid rent arrears. What sense does that make?
On the matter of benefits, why is it that in Bradford, 1,130 local disabled people have fallen foul of jobcentre sanctions and been left without any income for periods of between four and 13 weeks. That is astonishing to me.
Bradford’s population is forecast to grow at 8.5% over the next 10 years, and around 2,200 additional new homes will need to be built each year to meet the projected growth in households—a major challenge. It is estimated that up to 25% of all new homes will need to be affordable homes. With the right investment, this will mean much-needed new jobs.
Bradford is proudly resistant to those who would seek to sow community discord, but high levels of unemployment are clearly a danger. Long-term projections indicate the importance of immediate action and investment. Just to maintain Bradford’s current employment rate of 65.6%, an additional 10,000 people will need to find employment by 2021. This is possible—with work on the Westfield centre beginning, there are new opportunities—but the city will still need 31,000 new jobs to bring it up to the national average. Jobs in Bradford tend to be low paid. It will be important for those in work to be paid a living wage.
I am very much looking forward to hearing the noble Baroness, Lady Williams of Trafford, give her maiden speech. Her experience as director of the north-west rail development company qualifies her well to encourage investment in a northern city. We in the Church of England are creating a new Diocese of West Yorkshire and the Dales. This will create neighbourhoods that are wonderful.
Noble Lords, Government, business, civil society, churches and all religious communities: I put it to you that this is a key moment for Bradford. I hope that today’s debate will lead to more understanding and more investment in this vibrant city. Long live Bradford!
Baroness Williams of Trafford (Con)
My Lords, it is a pleasure to follow the noble Lords, Lord Patel and Lord Shutt, and the most reverend Primate the Archbishop of York in contributing to this debate initiated by my noble friend Lady Eaton. She and I were leaders of metropolitan authorities—as some have mentioned, I was the leader in Trafford, in Greater Manchester, for many years. I never thought for a moment that I would be following my noble friend into your Lordships’ House, but it is a pleasure to do so. I also mention in their absence my sponsors, my noble friends Lord Howard of Lympne and Lady Morris of Bolton, whose support and assistance over the years have been so much appreciated. I was so pleased that they agreed to be my sponsors when I was introduced to your Lordships’ House.
My journey has taken me, as an Irish immigrant, first to the north-east of England and then to the north-west, where I have lived my whole life—apart from a short diversion to Huddersfield, which, given that we are discussing Bradford, is not too far away. The north-west is the second largest economy outside the south-east, but in productivity terms it lags behind by some £30 billion. My point today is not to decry the success of London and the south-east, but to explore how northern metropolitan authorities and areas can contribute to the prosperity of this country now that economic growth is well under way.
We have led the way in the north-west in innovation, enterprise and industry. I mention at this point the great Alan Turing, whom we must thank, first for our freedom, through the work that he did with the German-encrypted Enigma machine, which helped to give us our successes in the Second World War; and secondly, for developing the Manchester Mark 1 computer, which of course has led the way in the advances in technology that we enjoy today. I would also like to mention graphene, which is a recent discovery by two Nobel Prize-winning scientists in Manchester. It was very pleasing that the Chancellor saw fit to fund, in part, the National Graphene Institute in Manchester. Given the noble Lord who is following me, I might also add our achievements in sport. We believe very strongly that the success of the Commonwealth Games in Manchester in 2001 in no small part paved the way for our successes in our bid to host the Olympic Games here in London.
Historically, we have a vibrant manufacturing sector. If any of your Lordships are partial to the humble baked bean, they will have been canned in Wigan—the beans rather than your Lordships. If any of your Lordships are partial to Guinness, it will have been canned in Runcorn. If any of your Lordships ever travel on the London Underground, the escalator chains will have been manufactured in Wythenshawe and the drive shafts in Rochdale. There is a great deal of industry and manufacturing coming out of the north-west.
The Government have addressed some of the structural issues already mentioned, in terms of people accessing jobs and growth, and particularly in terms of connectivity and infrastructure. We have also seen the start of some great supply-side reforms—the reductions in corporation tax, the lending for business, the reductions in fuel duty and also taking a number of people out of income tax altogether—I think a quarter of a million in the north-west. These have greatly helped in starting that journey back to growth. There are also challenges. My noble friend Lord Freud mentioned yesterday that the north is actually outpacing other areas in terms of employment growth, but we are still very reliant on the public sector in the north-west and in other parts of northern metropolitan areas for economic growth.
I notice that my time has already run out. It just remains for me to say that the north-west is a very competitive area in which to locate business, and it is a great place to live. Finally, I thank Members from all sides of your Lordships’ House who have been so friendly and welcoming to me, and of course all the staff who have been very patient with me, as I frequently get lost in your Lordships’ House. Thank you.
Lord Faulkner of Worcester (Lab)
My Lords, it is always a privilege and a pleasure to follow a maiden speech, particularly one of such quality and eloquence as that which we have just heard from the noble Baroness, Lady Williams of Trafford. She comes to the House with a distinguished record in local government as a former leader of Trafford Council, having represented Altrincham on that authority from 2002 to 2011.
The noble Baroness is, as we have just heard, a powerful advocate for the north-west, and supports major infrastructure projects in the region, including the Atlantic Gateway—a long-term plan for development between Manchester and Liverpool along the Manchester ship canal—the north-west rail hub and, I am delighted to say, High Speed 2. Her previous career includes two years as vice-chairman of the Association of Greater Manchester Authorities, membership of the Greater Manchester Police Authority, and chair of the Heritage Lottery Fund in the north-west.
Before getting involved in local government, the noble Baroness worked as a nutritionist for a charity that provided specialist support and therapy to sufferers of multiple sclerosis. In the 2010 election, Susan Williams came within just 92 votes of winning the Bolton West parliamentary constituency. I am sure that I speak for all your Lordships when I say that the House of Commons’ loss was undoubtedly our gain, and we look forward to many more speeches from her in future.
Crossing the Pennines, I warmly congratulate the noble Baroness, Lady Eaton, on securing this debate on Bradford and for attracting such an impressive array of speakers. Few of us will be able to do justice to this great city in four minutes. Had I more time, I too would have spoken about the need for trans-Pennine railway electrification, and I probably would have said a word about the splendid Keighley & Worth Valley Railway, the original home in “The Railway Children”.
My contribution today is as a trustee of the Science Museum, which is the parent of Bradford’s National Media Museum, as mentioned by the noble Lord, Lord Shutt. The museum attracts almost 500,000 visitors a year and is the second most-visited attraction in Yorkshire. It contains some of the finest and most compelling visual material to be found anywhere in the world, such as the oldest known surviving negative, John Logie Baird’s original television apparatus and the camera that made the earliest moving pictures in Britain. The museum is the reason why Bradford received City of Film status from UNESCO. According to Bradford Council, it has an economic impact of £24 million a year, and it does particularly well in attracting 42,000 visits in education groups, including 20% from black and minority ethnic backgrounds and 44% from the lower socioeconomic groups.
Despite all this, in the summer of 2013 there was real doubt about the future of the museum. This started in April when, following cuts in grant in aid to all the national museums, the Science Museum Group was asked by the DCMS to model further cuts of 5%, 10% and 15% for the 2015-16 spending review. The director of the Science Museum made it clear that if the cuts were at either of the two higher levels, one of the museums in the north of England—Bradford, the National Railway Museum in York or the Manchester Museum of Science and Industry—would have to close. Most media comment centred on Bradford as the most likely candidate.
The reaction was immense. There was a public rally at the museum on 8 June and a public meeting at Bradford’s city hall on 11 June, chaired by the leader of the council. At the media museum’s 30th birthday celebrations over the following weekend, 1,000 visitors expressed their support, many with birthday cards. There was an Adjournment debate in the Commons and a Select Committee inquiry. On 26 June came the welcome news that the cut would not be 10% or 15% but 5%. It was therefore possible for the director to say that the museum would stay open.
While it is still going to be very tough, the Science Museum Group has renewed its commitment to Bradford. Provided that more support is forthcoming from bodies such as the city council, the University of Bradford, Bradford College, local schools and the BBC, whose historic collection was gifted to the museum in 2013, the museum should have a brighter future. It is also looking for a commercial film operator to help sustain the cultural programme, such as film festivals.
There is no doubt that the threat of closure was a real wake-up call, not just for the Government, who realised—perhaps a bit late in the day—how vital our national museums are to the life and well-being of the nation, but also to all the local interests in and around Bradford. I hope that they now realise that the future of the National Media Museum depends to a very considerable extent on them and on what they can do to support it.
Baroness Scott of Needham Market (LD)
My Lords, the Committee may be wondering why a woman from deepest Suffolk is speaking in a debate on Bradford. The answer lies in the genes: my father was a Bradford man and, thanks to the wonderful work of the West Yorkshire Archive Service, I know that generations of my ancestors, going back over 300 years, came from the area around Bradford, Leeds, Halifax and Huddersfield. These towns were part of the backbone of the industrial revolution, and in the case of my ancestors it was the textile industry that occupied them. In my ancestry are wool combers, sorters, cloth dressers, weavers, dyers, spinners, carders, warp dressers and weft men, and this continued right up to the death of my uncle in the early 1970s. During the 1940s and 1950s, these jobs were done increasingly by immigrants from the Indian subcontinent who were prepared to tolerate the low wages and poor conditions in the industry. By the 1970s and 1980, instead of the people coming to the jobs, the jobs went to the people—most of the textile and garment industry moved to the Far East, where labour was cheap.
I mention that because there is growing evidence that we should be rethinking all this. The textile industry can now be almost totally automated; fewer people are required, and those who are required are highly skilled. Every process, from design to manufacture and packaging, can be computerised and automated. Digital connections mean that small start-up businesses can almost instantly be connected to markets, research and suppliers from right across the globe.
The competitive advantage of cheap labour does not necessarily exist anymore. If noble Lords are not convinced, I can point to Apple and General Electric, both of which are bringing their manufacturing capability back to the United States. Reshoring, the opposite of offshoring, is a growing reality, and I can point noble Lords to the recent work by our colleague, the noble Lord, Lord Giddens. In the textile industry, Jaeger has restarted UK production, having ceased in 2000. The fact is that wages in Asia have risen while they have stagnated in Europe and the US. The head of a company manufacturing household textiles in both the UK and China recently commented that it is his UK plant that is more productive, due to the highly skilled workforce and the fluctuations in currencies.
Transport costs are going up all the time, which makes reshoring increasingly viable. Producing closer to the markets also has the advantage of shortening order times, giving a flexibility that many big retailers particularly welcome. Customers and businesses are becoming more aware of sustainability arguments and the ethical considerations, which were so graphically highlighted by the terrible loss of life in the garment factory in Bangladesh. The UK is currently still uncompetitive in cheap mass-produced markets but has a big advantage in quality.
In Seoul, John Lewis is now one of the most popular stores in the city. Its quilts and bedding are being made in Lancashire, and the managing director points to the design, quality and overall value that are leading to their success. The “Made in Britain” label is definitely seen as a plus, and retailers such as Marks & Spencer are committed to promoting it. The textile trade body is promoting UK manufacture under its Let’s Make it Here initiative, which links companies at all stages of the supply chain.
Vince Cable has talked about the growth of reshoring. The textile industry is ripe for this, and I would appreciate assurances from the Minister that its importance is being taken seriously. The Government have a role in promotional activities, helping start-ups and ensuring that capital, and the right skills, are available. Bradford still has a small but thriving textile sector, but it could do so much more. How magnificent it would be if Bradford, with all its industrial heritage, could once again become a thriving centre for textile manufacturing.
Baroness Warwick of Undercliffe (Lab)
My Lords, I am delighted to be able to contribute to this afternoon’s debate. I share with the noble Baroness, Lady Eaton, a Bradford upbringing, and I am grateful for her informative and balanced outline of the challenges facing the district today. I congratulate the noble Baroness, Lady Williams of Trafford, on a fascinating and uplifting maiden speech.
As others have said, in recent decades Bradford has been badly hit by economic deprivation and social unrest. However, I feel strongly that there is cause for optimism today when we talk about Bradford. That optimism is there when I talk to people in the town and, perhaps surprisingly, it is often there in the local press. Among the car crashes and court cases covered by the Bradford Telegraph & Argus, space is also given to regeneration and community projects, to construction starting this month on the long-delayed Westfield shopping centre and to the encouraging early outcomes from the Get Bradford Working initiative. Even the national media sometimes take note. I was struck by a story that I read before Christmas, which has also been mentioned by the noble Baroness and the most reverend Primate the Archbishop of York, about the town’s last remaining synagogue, a grade II listed building that a year ago was leaking badly and in danger of being sold off, which would have forced the small congregation to travel the 10 miles to Leeds to worship. Yet, one year on, the Bradford reform synagogue’s future is looking more secure because of the intervention of Bradford’s Muslim community. Some of its most influential members helped the synagogue’s chairman to mount a successful lottery bid, and that money will now help renovate the building. Thanks to the relationships formed through their fundraising effort, the communities now do other things together. Once renovated, the synagogue plans to open for school visits throughout the week.
I, too, believe passionately that education has a key role to play in helping to address the challenges of integration faced by the district’s different communities. I want to focus my remaining time on the tremendous educational opportunities in Bradford, not least the role the university is playing in raising aspirations locally. The university’s three-year partnership with University Academy Keighley has seen a significant increase in the percentage of students gaining five A* to C grade qualifications, including in English and maths.
Last year, Bradford University opened a £1.6 million centre to raise attainment in the key science, technology, engineering and maths subjects for schoolchildren, not only in the district but beyond—one of the few STEM-specific facilities in the country. In December it launched a Centre of Excellence for Environmental Technologies in collaboration with Bradford Council and Buttershaw Business & Enterprise College, as part of the Get Bradford Working programme. It is supported by many local businesses, including Yorkshire Water. They all want to build a highly skilled young workforce which will attract more companies and investment into the area.
The university is one of the largest employers in the area. It plays a lead role in the Yorkshire Innovation Fund, in which local universities help small to medium-sized enterprises to develop new and improved products and services through R&D and innovation. One example is the university’s groundbreaking Centre for Pharmaceutical Engineering Science, which is helping to improve the competitiveness of South Yorkshire SMEs through the use of green processing technologies.
I also want to mention Bradford College, the fourth-largest college in the country and the largest provider of HE outside the university sector in England, which plays its part in transforming lives, communities and the economy. The college’s new multimillion pound campus, being built in the heart of Bradford, is due to be completed this autumn and will add to the regeneration of the city.
I take heart from the assiduous work of the university in raising aspirations and attainment and aiding the prosperity of Bradford, and from the story of the synagogue and the mosque communities supporting each other. In 2014, Bradford is showing that it is a place where people of different faiths and backgrounds can come together, to learn, to work and to do business, for the benefit of all the people of the district.
Lord McKenzie of Luton (Lab)
My Lords, I congratulate the noble Baroness, Lady Eaton, on securing this rather novel debate about the well-being of the City of Bradford Metropolitan District. We also congratulate the noble Baroness, Lady Williams, on a fine maiden speech.
From the briefings we have received and the contributions made today, we can be optimistic about the city’s well-being in the future. Under the strong leadership of Labour’s Councillor David Green, Bradford has a council that is working towards the vision of a place that is prosperous, creative, diverse and inclusive, and it is delivering this by working with partners and citizens. As we have heard today, there have been and remain major challenges to the city. The challenges are made more difficult by the draconian and disproportionate cut in funding it has endured.
Surely one of the tasks of government, whatever the overall level of the local government finance settlement, is that its distribution should be fair. Why, in the two years ending in March 2013, should funding have fallen by over twice as much in Bradford as the average fall for the 10 least-deprived authorities? The council has responded to this by operating in new ways, commissioning services locally from a range of providers, including local businesses and community and voluntary organisations. The Joseph Rowntree Foundation report on the Bradford Social Future Awards scheme is a helpful reminder that relatively small amounts of funding can make a real difference to engaging local people with entrepreneurial solutions to local social problems.
This debate highlights Bradford’s ambition for regeneration and the new Producer City strategy, building on its manufacturing strength. But the facts—Bradford having the fifth-highest concentration of manufacturing employment in the UK; its emphasis on advanced engineering and manufacturing; it being the location of major global companies—amply justify the noble Baroness, Lady Eaton, seeking exploration with the Government of how this capacity might be enhanced. She also made the case for the city centre growth zone to be extended.
We have heard that economic growth would be improved, congestion reduced and carbon reduction facilitated if the Calder valley line were to be included in the provisional electrification plans being considered for the period 2019-24. It is asserted that the line currently connects 2.5 million residents, 75,000 businesses, 120 multinationals and three of the largest cities in the UK—Leeds, Manchester and Bradford. Given the age of some of the rolling stock on this line and the scale of the catchment area, why is it not being considered for electrification as part of this programme?
We know that the council and the community have had to face difficult issues, especially around safeguarding children, but it seems to be doing this by confronting the problems and seeking to learn from past failures. Transforming educational outcomes is a key imperative for the council to support the local economy and to ensure a future for the young population of the city. We have heard that not all engage with the educational opportunities available and the particular problems arising from the growing Slovakian Roma community to which the noble Baroness referred.
We should be proud as a country to be a safe haven for those who suffer persecution in their homeland. Living in Luton, I know the joys of diversity and the challenges of integration which it can bring: challenges for local services, school places and housing; challenges of poverty; and exploitation in employment. The call for help from government to work with Bradford to develop an integrated strategy deserves a positive response. We should also acknowledge the role of interfaith work in helping to tackle such challenges.
We should wish Bradford well and all those engaged in seeking to improve the well-being of its communities.
The Parliamentary Under-Secretary of State, Department for Communities and Local Government (Baroness Stowell of Beeston) (Con)
My Lords, I should declare from the start that I am from Beeston, Notts, and not from Beeston just outside Leeds, just in case anybody is listening to me and wondering why I do not know more about what is clearly a fantastic part of our country.
I join others in congratulating my noble friend Lady Eaton on securing this debate and on the clear and eloquent way in which she introduced it. She gave us a very full picture of Bradford. I was talking to somebody the other day about Bradford and asked them how they would describe it to me. They said that it was a beautiful place with beautiful people. I think that that came through from what my noble friend said, as did her pride in the city.
I welcome my noble friend Lady Williams of Trafford and congratulate her on her excellent maiden speech. I look forward to hearing more from her—very soon, I hope—in the main Chamber, where more noble Lords will receive the benefit of her wide knowledge and great expertise on a range of matters.
We have heard today from several noble Lords who have expert views on the opportunities and challenges in Bradford, expert views grounded in their local knowledge and experience. For me, this exemplifies an important principle of this Government’s policy, which is that local areas should be able to decide for themselves what goes on in their communities and how they want their area to grow and develop. That is a far more effective way to help local areas thrive than for central government to dictate how they should go about things. We have given local areas the powers and the freedoms to take control of their future, from having greater control over planning decisions to retaining some business rates.
We in central government must create the right economic conditions for places to thrive. While we still have a way to go, we are on the right track, as the recent growth forecasts and this week’s inflation figures show. Beyond the national economy, we must also provide a range of opportunities that will work for different parts of the UK to address their specific needs and help them realise their full potential; for example, by rebalancing the economy away from dependence on the public sector and instead attracting private sector investment to start up businesses and create jobs. That is particularly important in the north, and it is relevant to today’s debate about Bradford.
I was pleased to hear my noble friend Lady Eaton talk about the strong signs of growth in Bradford. It is worth noting that growth in Bradford has outstripped regional and national averages since 2008. As has already been acknowledged, the first way in which we are helping in this area is through the regional growth fund. Projects in Bradford have secured almost £22 million, including about £17 million for the council-led city centre growth initiative.
The noble Baroness, Lady Warwick of Undercliffe, referred to the Westfield shopping centre. I know that it has been delayed and this has led to much frustration being felt in the city until now, but once it is off the ground it will be a very iconic new development in Bradford. My noble friend raised some concerns about potential delays. This is a very complex project, and I understand that officials in my department are working with Bradford council to address some of the issues in order to ensure a speedy resolution.
My noble friend also asked if I would meet with the Bradford Producer City board to discuss this and other matters. I would certainly encourage the board to work closely with the lead city region LEP on their strategic economic plan, and I gather from the comments I hear from my noble friend that that is happening. I would certainly be happy to meet them in addition, and we will take that forward and make sure that it progresses.
Beyond the regional growth fund, Bradford was also one of the first places to benefit from the city deals as part of the Leeds agreement. These 10-year deals mean that areas have much greater certainty and confidence to meet the longer-term challenges they face. In this region, the city deal will tackle some of the systemic issues which have held Bradford back in the past. This again demonstrates the importance of giving local people who understand those challenges the ability to deal with them. It was the local leaders who emphasised transport and skills and education as the main priorities for investment.
My noble friend Lord Shutt raised HS2, which clearly we believe will bring tremendous opportunities to the area. It is a massive investment in transport. The new combined authority to which other noble Lords have referred will be the best way to make the most of these opportunities, ensuring that all local communities are connected to the line. He raised the specific issue of the hammerhead terminal. I will raise this on his behalf with my noble friend Lady Kramer and come back to him with a specific answer, because I am not equipped to do so today.
My noble friend Lord Shutt also raised the issue of electrification on the Calder valley line, as did other noble Lords. It is worth pointing out that this Government have done more on electrification than previous Governments. We have funded Network Rail to the tune of about £130 million to improve speed and capacity on that particular line and on the Hope valley line, and the further details of the schemes are currently being worked out. My noble friend is right that the Calder valley line was not named among the eight specific lines for electrification, but the task force is free to consider the case for any route in the north. More details will be announced shortly, and I urge local leaders in Bradford to ensure that they are talking to the right people at Network Rail and the Department for Transport about this.
Beyond those transport matters, the city deal provided a £1 billion fund to improve public transport, outside of heavy rail and the highways network. Beyond that there is a further £1 billion for capital funds via the local enterprise partnership and the local growth deal. All of these are to ensure that Bradford gains from the advantages of HS2, and that in that part of that country—as, indeed, in other parts—there is the connectivity which is so important for people to access work and other opportunities.
I go back to the city deal and the decisions of local leaders as to their priorities. The other area was education and skills, which are of course vital not just to give every child the best chance in life to succeed but because without a skilled and trained workforce, Bradford will lag behind other cities. My noble friend Lady Scott of Needham Market stressed that point when she talked about reshoring and the return of industry to the Bradford area, which is very welcome.
The cornerstone of the city deal is a commitment that every young person in the Leeds city region has access to a job, training, apprenticeship, volunteering or work experience. It is important for me to emphasise that in response to the comments of the most reverend Primate the Archbishop of York. The aim is to create 20,000 new opportunities, which will tackle the problem of young people not in education, employment or training. The Department for Education is also working closely with Bradford local authority, schools and the dioceses to improve school performance. There are now 25 academies open, with another nine in development, helping to drive improvement in some schools with the lowest performance. I was also pleased to hear what the noble Baroness, Lady Warwick, said, about the work happening with the University of Bradford. Much is going on in that area. We must ensure that Bradford has a highly skilled workforce and that the young people in Bradford receive the right level of education, which is so important to their future.
I also want to pay tribute to the strength of local communities in Bradford. The noble Lord, Lord Patel, among other noble Lords, spoke powerfully about that. Cities are far more than just their economies, and Bradford is not just culturally and socially rich but has a proud tradition of diverse communities working together across a range of issues. We have had some powerful examples highlighted by my noble friend Lady Eaton, the most reverend Primate and others. That is incredibly heartening.
In the context of communities, my noble friend Lady Eaton raised the issue of integration of Roma immigrants in Bradford and suggested the need for a national Roma integration strategy. The Government believe that the issue is better served through our broader strategies to promote social inclusion and improve education, but I would certainly be happy to discuss the matter further with my noble friend.
The noble Lord, Lord McKenzie, referred to the local government finance settlement. Our approach to local government finance means change in the way that central government works with local authorities, freeing them from dependence on central grants and requiring them to meet centrally imposed targets, but of course the Government still protect those councils which are more dependent on government grant. It is worth noting that Bradford still has a spending power of £2,350 per head, which is greater than the national average, reflecting some of the greater demands on services in that area.
I pay tribute to the local authority in Bradford for the effort that it is making to improve the delivery of its services and to save money, although I certainly urge it to go further, as I do with all local authorities. I point to one specific different approach to local government financing, which I think answers one of the points made by the most reverend Primate about the desperate need of some families. That is the troubled families programme. That is one way in which we are changing the way in which we finance and approach difficult and entrenched issues, and we are making a huge amount of progress in that field.
The noble Baroness, Lady Warwick, said that there is lots to take heart from today, and I agree. There is also lots to be optimistic about. My noble friend Lady Scott of Needham Market gave us one example when she talked about reshoring. This is a city that is proud of its identity. I was really pleased to hear the noble Lord, Lord Faulkner, talk about the National Media Museum. As someone who has worked a lot in the media industry, I am ashamed to admit that I have never visited the museum, but I will, now that I know just how amazing it is. I only hope that the people who run the National Media Museum will help the people of Bradford to tell a greater and more powerful story about that wonderful city.
Animal Welfare: Methods of Slaughter
(10 years, 10 months ago)
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Baroness Northover (LD)
My Lords, there are many speakers in the next debate. When the clock says “2”, the speaker has had two minutes.
Lord Trees
To ask Her Majesty’s Government what assessment they have made of the ethical, legal and religious factors that influence the way in which some animals are slaughtered in the United Kingdom.
Lord Trees (CB)
My Lords, in my 45 years as a veterinary surgeon I have witnessed the abattoir slaughter of many animals with and without stunning, but when I first witnessed slaughter without stunning it was profoundly disturbing. The animal staggered from its killing crate, blood gushing from the neck wound, and it did not collapse into unconsciousness for some considerable time. It is that experience and others since that have caused me to bring this debate.
It might be useful initially to cover the legal framework surrounding the slaughter of animals—and I am going to concentrate on cattle and sheep. The legal framework is straightforward. In abattoirs, the death of animals is due to exsanguination following severance of the major blood vessels in the neck. It is illegal in the UK and throughout the EU to do that without first rendering animals insensible by stunning—except that that requirement for pre-stunning is exempted for those of Muslim and Jewish faiths to produce either respectively halal meat or kosher meat by shechita. I intend to talk about stunning and non-stunning in the rest of my speech.
Noble Lords have heard my reactions. Let me quote the reactions of a female, Jewish vet, who recently sent me an e-mail. She said:
“Without a doubt, during my almost twenty years as a vet, I have never witnessed anything as horrific as Shechita slaughter. That horror lives fresh in my mind today and having been raised and now living in a Kosher home I do not and never have eaten a piece of Kosher meat since the day I witnessed this barbaric practice. Indeed I have seen much suffering and many severe injuries in the animals I have treated over the years, but nothing comes close to the unnecessary and brutal suffering that these animals experience at the very end of their lives”.
Note that that is from a qualified, official veterinary surgeon who has done a lot of meat hygiene work and has witnessed the slaughter of many animals involving both stunning and non-stunning.
Let me emphasise that I recognise that both the great faiths in question have serious concerns for animal welfare. I also make it quite clear that I defend and respect the freedom of expression of all groups, religious or non-religious, within reasonable limits acceptable to our society. Nevertheless, it is my contention that unnecessary suffering is being caused to a very substantial number of animals by slaughter without stunning. I want to address this under three headings: inconsistency, injury and insult.
In terms of inconsistency, we rightly pride ourselves here in Britain on our animal welfare regulations and our humaneness. Recently, it has been made an offence to dock a puppy dog’s tail. That is something that involved a snip with a pair of scissors which, on a week-old pup, evoked at most a slight yelp. We have made that illegal—and I am happy with that law—yet we allow adult animals to have their throats cut without rendering them unconscious first. Is that a consistent approach to humaneness?
I turn to biological tissue injury. The Farm Animal Welfare Council, in its report of 2003, considered the whole issue of slaughter without stunning in great detail. Considering the injury to the neck involved in throat-cutting, the council noted that this involved the incision of skin, muscle, trachea, oesophagus, both jugular veins, both carotid arteries, major nerve trunks and several other nerves. It concluded that,
“such a massive injury would result in very significant pain and distress in the period before insensibility supervenes”.
The FAWC report went on to refer to evidence of the time taken to lose brain responsiveness in different species following the neck cut. It noted that in sheep it was five to 10 seconds; in adult cattle, with excellent technique, it was a minimum of 22 to 40 seconds; and in calves it was 10 to 120 seconds. Twenty seconds is a long time if you are suffering pain. The FAWC report—and remember that this is the Government’s independent advisory committee—recommended in its 2003 report that,
“the Government should repeal the current exemption”
from pre-stunning.
I turn to insult. By this I mean tissue damage and particularly the induction of pain—I mean a biological insult. Determining the perception of pain can be very difficult, I acknowledge, but some recent research has been done on calves in New Zealand which I would argue provides strong evidence that pain is perceived by a neck cut and that stunning abrogates that. In this work, electrophysiological measurements were taken of brain signals, for which there was supportive evidence of their being associated with pain. A neck cut without pre-stunning caused pain signals lasting for up to two minutes. Such signals did not occur when stunning was used before the neck cut. Finally, if the neck cut was made and then animals were stunned, the pain signals occurring after the cut were immediately abolished. Every attempt was made in this work to mimic slaughter without stunning but true shechita could not be performed because, ironically, the animals had to be gently anaesthetised to conform to experimental animal laws and thus could not pass for human consumption, as shechita demands. So I would argue that it is likely that severe pain is caused by slaughter without stunning, albeit for a relatively short period, but perhaps for as much as two minutes in cattle.
How many animals are involved in slaughter without stunning? The latest available survey by the Food Standards Agency, in 2011, indicates that approximately 70,000 cattle are slaughtered in the UK each year without stunning, mainly by shechita, and that about 1.5 million sheep are despatched without stunning, mainly for halal consumption. I should point out that the majority of sheep that are killed for halal purposes in the UK are pre-stunned, but that still leaves the significant minority of 1.5 million that I have referred to. Thus I contend that, given the nature of the biological insult and the numbers involved, slaughter without stunning is a major, if not the major animal welfare issue in the United Kingdom today. A further important fact is that much of the meat from non-stunned slaughter goes into the food chain for mainstream consumers. I suggest that consumers can justifiably expect to be informed if the normal legally required form of humane slaughter has not been used.
All the independent welfare bodies advocate stunning before slaughter—FAWC, the British Veterinary Association, the Federation of Veterinarians of Europe, the RSPCA and the Humane Slaughter Association—and furthermore, the food-quality assurance schemes such as red tractor and the Soil Association do not permit non-stun slaughter. In Europe, Sweden, Norway, Switzerland and Iceland have disallowed non-stun slaughter, and New Zealand does not permit the non-stun abattoir slaughter of mammals. Significantly, New Zealand exports large amounts of sheep meat that has been reversibly stunned and certified as halal to Muslim communities in Asia and the Middle East.
The EU is currently conducting a study on providing consumers with the relevant information on the stunning of animals by labelling of meat products. In the UK, the beef and lamb trade organisation EBLEX is working on the issue of clear labelling with halal producers. Will the Government support measures to label meat appropriately to enable consumers to make informed choices?
I make it clear that I am not asking in this debate for non-stun slaughter to be banned. I am not a believer in bans; I would rather that society collectively arrived at decisions about what is acceptable and what is not. However, I sincerely ask the Muslim and Jewish communities and their leaders to reflect and consider whether ancient practices, for which there were good reasons many hundreds of years ago, are necessary today. There are non-lethal, non-invasive methods of stunning, and even if there is disagreement on the extent or duration of pain perception, is it not time to adopt stunning to preclude the possibility of unnecessary suffering—as some Muslim food authorities have allowed?
Baroness Fookes (Con)
My Lords, I declare my animal welfare interest as set out in the register, and I thank the noble Lord for introducing this very important subject, which worried me considerably when I was a young MP in the other place. Certainly, given the opportunity at that time, I would have said, “Ban the slaughter of all animals that are not pre-stunned—no exceptions”. One gets a little more tolerant as years go by, but I still think that a great many measures could be taken that could help in the situation as so vividly described by the noble Lord.
I will put several propositions to the Minister. First, I hope that he—if his department does not do so already—will enter into constructive, friendly dialogues with the Muslim and Jewish communities to see if there is not some consensus or way of going forward as outlined by the noble Lord, Lord Trees. I realise that this may be a particular problem for the Jewish authorities. I must say at this point how much I commend the Muslim community for having so many of its animals slaughtered with pre-stunning. That is a great development and I am happy to pay public tribute to that community.
However, given that we may not get complete consensus, will my noble friend look at the possibility of stunning immediately after the cut is made, which would obviate some of the suffering? Finally, I take particular exception that a lot of meat that is not used for the religious communities comes on to the market without being labelled. If we are to have some rights, that is a right I should like for myself. I do not wish to eat meat that has not been pre-stunned, and I have the right to have the meat very clearly labelled.
Lord Rooker (Lab)
My Lords, I declare an interest. I am a meat-eater, and I am personally offended if expected to eat meat from non-stunned food production animals. As such, I have no problem whatever with religious slaughter, but I do not wish to eat non-stunned meat, and therefore it should be labelled. It should be labelled where born, raised, slaughtered and the method of slaughter. That is perfectly acceptable information to be put on a label for consumers.
One of the problems with this issue is that there is no central authority for halal meat. The rules vary around the world, so it cannot be policed. All New Zealand lamb entering the UK is classified as halal. It is all pre-stunned before slaughter. There is not a problem. Over my years as a Minister in MAFF and Defra, and as the FSA chair, I visited dozens of abattoirs. The FSA is only responsible for the enforcement of animal welfare regulations as a contractor to Defra, as the Minister will make clear. It is not a food safety issue.
I want to elaborate a bit on the figures given by the noble Lord, Lord Trees, with a one-week survey from September 2011 which was in an open board paper of May 2012. Some 43,000 cattle were slaughtered, 1,700 halal, 84% of which were pre-stunned; 307,000 sheep and goats were slaughtered, 154,000 halal, 81% pre-stunned; and 16 million chickens were slaughtered, 4.7 million halal, 88% pre-stunned. I have not got time to give the Jewish figures. So the non-stunned totals for halal and Jewish that one week were 3% of the cattle, 10% of the sheep and 4% of the poultry. They are very small numbers of non-stunned animals. The trouble is that too much of the extra goes into the general food chain and customers are not aware. The simple answer to this is labelling. Consumers have the right to know the method of slaughter, and that should be a given, in my view.
Baroness Parminter (LD)
My Lords, I wholeheartedly support the case made by the noble Lord, Lord Trees, and the evidence that he outlined that slaughter by throat-cutting without pre-stunning is absolutely unacceptable in animal welfare terms. However, like other speakers, time is short, and therefore the important issue for me today is to put on record that, yes, we must respect the rights of religious communities, but equally we must respect the rights of consumers for them to be able to make informed choices about the food they eat.
At present, a concerned consumer can go and buy red tractor meat or freedom food meat, or go into Waitrose, where all meat is pre-stunned, or if they are in Southall they can go into the McDonald’s and buy a halal burger which is pre-stunned. However, there are millions of animals slaughtered in the UK without pre-stunning, as the noble Lord, Lord Rooker, has outlined. With the Muslim and the Jewish community only comprising about 4% to 5% of the population, that means a vast percentage of people in this country are unwittingly buying food which has been slaughtered without pre-stunning.
It is an incredibly timely debate today. It is surprising that we have not debated it more frequently in this House, but it is timely because at this very moment the regulations are being discussed in the European Parliament. Those certainly should help consumers make informed choices about the food they buy, and they could do even more, if they included mandatory labelling of the slaughter methods, by exception—that is, only the meat that is slaughtered without pre-stunning requires labelling.
I therefore add my voice to that of the noble Lord, Lord Trees, in asking the Minister what discussions the Government have had with the European Commission on the study it is commissioning at the present time, due out in April, into the effectiveness and applicability of labelling meat products on the methods of slaughter. If those draft proposals were to emerge as a result of that study, would my Government support, as I do, the EU-wide mandatory labelling of non-pre-stunned meat?
Baroness Masham of Ilton (CB)
My Lords, I declare an interest as I breed sheep. I have to admit that I try to shut out the fact that some of them have to go to market for slaughter. I feel this is something that the general public do not think much about, as long as they have their burgers, steaks and chicken tikka masala. I take part in this short debate on behalf of the animals. I ask that religious leaders—who have traditions—look at the welfare of the animals that give them food. I ask them whether the practice of killing the animals is the best that can be done to relieve the suffering. Animals must sense a horror of going to a slaughterhouse, as has been shown when some animals make violent attempts to escape.
I have been involved with the legislation concerning female mutilation—circumcision. This is a barbaric practice of mutilation of young girls without anaesthetic, all because of some people’s traditions and customs. Animals which are hung upside down and have their throats cut without stunning or anaesthetic must also be terrified. Do the proprietors of these customs realise the cruelty they are inflicting?
The Jewish method of slaughter, shechita, requires animals not to be stunned before slaughter. Recent data collected by the EU Dialrel project show that 100% of the animals and birds slaughtered by the UK abattoirs service for the production of kosher meat were slaughtered without prior stunning. At four establishments, 1,314, or 3%, of cattle and calves were slaughtered by the Jewish shechita method, with 10% of these stunned immediately after bleeding. Does that mean they are still alive after bleeding? These figures were published by the Food Standards Agency in 2012. The National Animal Welfare Advisory Committee of New Zealand recommended a dispensation for kosher slaughter in 2001, but the new code does not allow any exemptions. Among the countries which have banned shechita are Iceland, Norway and Sweden. I hope the Jewish community will see the light—that the animals which give us so much need respect when they have to die.
Lord Sheikh (Con)
My Lords, I speak as a Muslim who consumes halal meat regularly.
Islam forbids the mistreatment of animals; the welfare of animals is enshrined in Muslim beliefs. The Prophet Mohammed—peace be upon him—has said:
“A good deed done to an animal is like a good deed done to a human being, while an act of cruelty to an animal is as bad as cruelty to a human being”.
Islam permits the slaughter of animals for food, but dictates that such slaughter must be exercised humanely. There has never been any conclusive scientific evidence to suggest that religious slaughter is less humane than conventional mechanical methods. The controversy revolves primarily around the issue of stunning. Exemption from stunning is allowed for halal and kosher slaughter. In halal slaughter the animal ceases to feel pain due to the immediate brain starvation of blood and oxygen. For the first few seconds after the incision is made, the animal does not feel any pain. This is followed by a few seconds of deep unconsciousness as large quantities of blood are drained from the body. Thereafter, readings indicate no pain at all.
It is important to consider that prohibiting halal meat would have profound social and economic implications. There are now 2.7 million Muslims in the United Kingdom, 4.8% of the population. Halal meat accounts for between 10% and 15% of UK meat sales; some of this meat is, however, pre-stunned. People from all religions and backgrounds now choose halal as an alternatively produced meat.
I want to see a rigorous code of conduct and an efficient system of self-regulation. This would reassure non-Muslims that such animals are being respected and standards are being adhered to. I would also like a full and transparent system of labelling for all meats, so that the consumer can make an informed decision about the meat they buy. Labelling should not be confined to religiously slaughtered meat. Finally, Islamic leaders have asked the Jewish community for guidance on this, and I hope they can work together.
Lord Winston (Lab)
My Lords, what other religion argues that its animals should not work on the Sabbath? And we do not “seethe the kid in his mother’s milk” because that seems cruel somehow. I would argue that the notion of animal protection is stronger in Judaism than in any other world religion.
I want to speak purely as a scientist. We have heard a number of assertions here which are not scientific. With all due respect to the noble Lord, Lord Trees, death is not caused by exsanguination; it is due to interruption of the blood supply to the brain, which is immediate and has been measured. The problem with EEG measurements—electrode recording—is that they have been shown to be unsound. Indeed, the only way that you could detect pain would be by positron emission scanning of the brain, which clearly does not show any activity at all within two seconds once the blood supply has been cut. I would also argue that shechita is a much more humane method than stunning. Contrary to what some have said, it is a better method of killing animals because there is less suffering. Animals have to be calm and they are not manhandled roughly.
The noble Lord, Lord Trees, is not the only one who has been to an abattoir. They are not pleasant places. It is never pleasant to see any kind of animal killed under any circumstances, but the truth is that under the Home Office Act we would not be allowed to slaughter laboratory animals with stunning because it would not be regarded as a proper way of culling an animal in a laboratory. It would have to be done by a method which is much closer to cutting the blood supply to the brain.
I emphasise that what has been said about pain is another assumption. Of course animals may move after the brain is severed but the brain itself does not perceive pain if it is damaged and, in fact, none of the organs below the skin has pain fibres. You have some pain fibres in your trachea but they are very small. The evidence that animals suffer severe pain after one cut with an extremely sharp knife is extremely arguable. The truth is that, once you are unconscious, nobody knows what the perception of death or pain is.
Lord Palmer of Childs Hill (LD)
My Lords, I do not disagree with the labelling of meat. Jews do it already for the kosher food trade. There are a number of legal but unpleasant methods of mechanical stunning and, if meat is to be labelled, it should all be labelled alongside that produced from humane religious slaughter. These methods include shooting, mostly of hunting and game birds; a captive bolt gun to the skull for cows and sheep; chickens shackled by their ankles and dipped in a water bath that has an electric current running through it; herding pigs into a room and gassing them; and trapping and clubbing, which are mostly used in hunting.
It is important to be honest about the incidents of mis-stunning that are recorded. The European Food Safety Authority’s report, Welfare Aspects of Animal Stunning and Killing Methods, found that the failure rate for penetrating captive bolt stunning in the non-kosher slaughter of cattle may be as high as 6.6%—the noble Lord, Lord Winston, says it is 8%—and that, for non-penetrating captive bolt stunning and electric stunning, it can rise to as high as 31%. The percentages of mis-stuns far exceed the total quantity of animals slaughtered for the Jewish community. Every year, millions of animals across Europe are mis-stunned and left in great distress. I say: label all this meat, and that would deal with the problem raised by the noble Lord, Lord Rooker.
Two million cattle, 8 million pigs and 9 million sheep and lambs are slaughtered every year. Of those, the Jewish community slaughters only 90,000 red-meat animals. If you round that to the nearest percentage point, it is 0%. Similarly, every year 750 million birds are slaughtered, of which the Jewish community slaughters maybe half a million—a fraction of a fraction of 1%.
A new European Commission report published on 19 December 2013 on the various stunning methods for poultry concludes that, although there are serious animal welfare concerns about the water-bath stunning of poultry, more humane methods are not “economically viable”.
Baroness Flather (CB)
My Lords, first I must confess that I am no expert, but I wanted to come to this debate partly to say what I feel but also to hear what all the experts were going to say. This has been a very distressing and confusing debate. On the one hand the noble Lord, Lord Trees, has told us that stunning is essential, and on the other we have had the noble Lord, Lord Winston, tell us that it really is not. I do not know what to believe.
I have been here in my adopted country off and on for most of my life, since 1947, and all the time we have been gradually moving towards looking after everyone, whether they are animals, women or people needing equality. All those issues have been moving forward, and it has been a fight to get to various points that are important. That underpins the values of this society.
I do not think that the British people are much worried by other people’s faith. They do not seem to be much worried by their own; why would they take much notice of other people’s? I am not in the least concerned about other people’s faiths, but practice is another issue. I hope that any practice that is not in keeping with the ethical values of British society is carefully considered.
We have heard some differing views today. I hope that this will all be put together and looked at carefully. The labelling issue is extremely important because at least we will know what we are buying. I have been buying halal meat because I have found it to be very good; I say that openly. Now I will be worried because I do not know whether it has been done with pain to the animal or with no pain.
I am concerned about many things, and I think that all of us in this country need to watch for changes that take us in directions that we never wanted to go in, especially—the minutes do not seem to be passing.
Baroness Flather
So how long have I been speaking? Too long! How wonderful. I want to say one last thing, which is not on the animal issue: when I read about the Islamic Society at Leicester University being allowed to separate girls and boys at a meeting, it breaks my heart. We have worked terribly hard for equality and for animal welfare. Please let us keep those things in mind and not allow this country to go in that direction.
Baroness Hodgson of Abinger (Con)
I declare an interest in that I was a member of the Farm Animal Welfare Council, although not at the time of the report that the noble Lord, Lord Trees, referred to. I thank the noble Lord for raising this important subject, which we all recognise arouses the strongest feelings. Mahatma Gandhi is reported to have said, “The measure of a civilisation is how it treats its weakest members”. Without wishing to be accused of sounding too anthropomorphic, it is in that context that I view this discussion.
The demise of local slaughterhouses in the UK means that animals now often have to travel a long way for slaughter. By the time that an animal in the UK reaches its final destination, it is often tired, stressed, confused by the unfamiliarity and frightened by the smell, so the loss of consciousness should be instantaneous. Bill Riley, a past president of the British Veterinary Association, has expressed the view that slaughter without stunning causes suffering, a view echoed by the Farm Animal Welfare Council. I am told that Islamic rules for halal meat can be satisfied with pre-stunned animals, with 80% of UK halal meat now produced this way, so perhaps we could persuade them to make this mandatory, as has been done in Denmark and New Zealand. I understand that kosher meat does not permit pre-stunning, so the question is how to stop the animal suffering. If an animal is not cut correctly, it can take several minutes to die.
While some people choose to eat kosher or halal meat, as Masood Khawaja, the president of the Halal Food Authority, has recognised, others have a right to choose not to eat it, and I therefore echo the comments of others about having it labelled.
I have the greatest respect for those of different faiths and beliefs but I feel that I must speak up for the voiceless. Please let us prioritise kindness towards animals, consider how this affects them and do everything possible to minimise their fear and suffering.
Baroness Deech (CB)
I wish to dwell on the selectivity in the Question as regards “some” animals. Ethical, religious and legal factors should be universally applied and not selective. This is a country in which fishing is a national pastime. Fish die from being left to suffocate and being gutted, which takes quite a while. We shoot foxes and trap them. We cull badgers by shooting and perhaps gassing them. We shoot stags and pheasants. We decapitate rabbits. Millions of lobsters have their claws bound and are thrown into boiling water where they thrash for a long time. Chickens and turkeys are swept through an electrically charged water bath and then are immersed in scalding water but it frequently goes wrong. It has been found that 26% of turkeys and one-third of chickens probably enter the scalding water while still alive and sensible.
Stunning cattle is vaunted as superior to Jewish slaughter, but it frequently goes wrong. The Jewish method ensures immediate cerebral perfusion and is irreversible. No electric prods are used and one animal is not killed in the presence of another. I am not religious in my attitude to food but I greatly respect the attitude of those who are orthodox and their religious slaughtermen, who regard the killing of animals as an act that should be not only humane but infused with respect and reverence, remembering at all times the gravity of what they do and never becoming slapdash or hardened. This attitude should be more widespread, so that we do not see newspaper reports of deliberate mistreatment of animals in abattoirs for fun.
The European Food Safety Authority found that about 12 million cows suffer from failed stunning. That greatly exceeds the entire annual quantity of cattle slaughtered for the Jewish religious community, which is a few thousand. There should be more focus on what goes wrong in stunning and the cruelty inflicted on other animals, and less pointing the finger at the Jewish few thousand if we are to be fair and ethical in our worries.
Lord Gold (Con)
Let me first declare an interest. I am an observant Jew who eats only kosher meat, meat that has been killed by religious slaughter. I am not as observant as the next speaker, but I have an interest in allowing me and my co-religionists to practise our religion. I am sure that Rabbi Sacks—the noble Lord, Lord Sacks—will say a little about kosher meat in that respect. As other speakers have said, and as the noble Baroness, Lady Deech, has just made clear, the number of animals slaughtered for kosher meat without stunning is very small indeed.
The focus of this debate has not been on the effects of stunning and how it goes wrong. In researching for today’s debate, I have been horrified at some of the things that go wrong. The Vegetarians International Voice for Animals, which is opposed to religious slaughter, states:
“Tens of millions of animals are being ineffectively stunned and are regaining consciousness while they bleed to death”.
That is a horrific number.
On looking at the legal position, European Council regulations recognise that the stunning methods listed in their own literature are not the only methods. Those intimately involved in this work believe and argue that Jewish religious slaughter, properly undertaken and as described by the noble Lord, Lord Winston, also constitutes acceptable stunning because it instantly cuts off the blood supply to the brain. That comes within the definition of stunning provided in the regulations. The definition is,
“any intentionally induced process which causes loss of consciousness and sensibility without pain, including any process resulting in instantaneous death”.
I understand that, properly undertaken, that is exactly what Jewish religious slaughter seeks to achieve.
The welfare of the animal pre-slaughter is paramount in the Jewish religion. Any animal or bird which is even slightly harmed before slaughter is not considered suitable for kosher consumption. Special care is taken to ensure that the animal is calm before slaughter. The use of electric prods and the like is absolutely prohibited. It is also the case that the European regulations expressly respect the freedom of religion and the right to manifest religion or belief in worship, teaching, practice and observance, as enshrined in Article 10 of the Charter of Fundamental Rights of the European Union which states:
“Everyone has the right to freedom of thought, conscience and religion. This right includes freedom to change religion or belief and freedom”—
Baroness Northover
I remind the noble Lord that we are in a timed debate and he is already 50% over, if my maths is right.
Lord Sacks (CB)
My Lords, I welcome this short debate and thank the noble Lord, Lord Trees, for initiating it, because it provides an opportunity to clarify certain matters about the killing of animals which I believe are still not understood.
I declare an interest, having been for 22 years until recently the chair of the Rabbinical Commission for the Licensing of Shochetim, the body responsible for the supervision of every act of animal killing done in this country under Jewish law. This body exists because for us animal welfare is a matter of high religious principle, which we take with the utmost seriousness. This is why we insist on long years of training, spiritual as well as practical, before anyone can be qualified to kill animals. In Britain, every shochet is licensed, every licence needs annual renewal, and their work is regularly supervised and reviewed.
Shechita itself, the act of animal killing, is designed to minimise animal pain. The animal must be killed by a single cut with an instrument of surgical sharpness, and in the absence of anything that might impede its smooth and swift motion. The cut achieves three things: it stuns, kills and exsanguinates in a single act. We believe that this is the most humane, or a most humane method of animal slaughter. Quite apart from the fact that other methods are not permitted by Jewish law, we have doubts about their effectiveness. Pre-stunning by captive bolt, as your Lordships have heard, often fails at the first attempt. According to the European Food Safety Authority’s report in 2004, the failure of penetrating and non-penetrating captive bolts affects around 10 million animals, causing the animal grave distress.
In Britain, some 3 million cows annually are affected by these failures, compared to the 20,000 cows killed annually by shechita. The pain caused to animals by the use of pre-stunning methods vastly outweighs that caused by shechita, even were it the case that shechita did cause extra moments of pain. However, we are not convinced that such is the case. The failure rates of pre-stunning, and the inconclusive and highly challenged nature of some of the experimental studies done in this field, should give us pause. Therefore, if a case is made for labelling meat to indicate how the animal was killed, this must apply to all methods of slaughter, not just to some. I hope therefore that the Jewish community will continue to work with the Government to ensure that shechita continues to the highest standards of concern for the welfare of animals, which should rightly be the concern of us all.
Lord Grantchester (Lab)
I thank the noble Lord, Lord Trees, for introducing this debate today and declare my interest as a dairy farmer. Science does not find it easy to adjudicate on welfare claims, especially as the need for individual handling on a flock or herd animal seems to contravene a general legal and cultural requirement to reduce avoidable stress and pain at slaughter.
The EU regulation came into force in January 2013, allowing slaughter without stunning in accordance with religious practices to continue. However, individual member states may impose stricter rules. A consultation on new domestic regulations to implement this regulation ended in October 2012. Can the Minister tell us what point his Department’s dialogue with stakeholders has reached? What discussions are currently ongoing with the Commission? Are the Government waiting for a resolution to be achieved in Europe first, before coming forward with proposals here in the UK? The industry is pushing forward with proposals while Defra appears reticent. Could the Minister undertake at least to publish the results of the department’s consultation, now closed over 12 months ago?
Compromises have been reached in other jurisdictions which are being echoed here by industry, such as additional veterinary presence at non-stun slaughter and post-cut stunning. Has the department had discussions on these matters with interested parties and religious and cultural leaders, and what stage have any discussions reached? New Zealand has managed to achieve agreement among the communities through their leaders. Is this the favoured way forward for the Government?
EBLEX and the Food Standards Agency have come forward with some very interesting statistics indicating that non-stun slaughter of sheep and goats has increased by some 70% over the past 10 years, even though the number of animals not stunned prior to slaughter is low: 3% of cattle, 10% of sheep and goats, and 4% of poultry. Yet the communities consuming the excepted meat are much smaller than these figures would suggest.
Much of the meat from animals slaughtered by religious methods is not sold as such because it comes from the wrong cut of meat. This raises serious questions for labelling, and labelling must inform the consumer in a non-pejorative way. I recognise the complexities surrounding labelling but what is the Government’s approach to this? Other countries seem to have been able to settle this issue. Can the Minister say when his Government will come forward with their proposals?
The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord De Mauley) (Con)
My Lords, I thank the noble Lord, Lord Trees, for securing a debate on this very important issue, and I thank all noble Lords for concisely making some really important and informative points on all sides of the argument.
This is a subject in which I am intensely interested. Indeed, I should start by saying that we are completely committed to improving standards of animal welfare, including welfare at slaughter. I should highlight that my response on behalf of the Government applies only to England. The devolved authorities are responsible for their own animal welfare policy.
In 2012, in England, 764 million poultry, 8.4 million sheep, 8.1 million pigs and 1.4 million cattle were slaughtered. Given the sheer numbers involved, it is right that we take the welfare of animals at slaughter very seriously. The public rightly expect the Government to ensure that appropriate welfare measures are in place. In late 2012, we consulted on the best way to implement the new EU Regulation 1099/2009 on the protection of animals at the time of killing.
After careful consideration of responses, we decided to retain all existing national rules protecting the welfare of animals at killing, including those on religious slaughter, where they provided greater protection than the EU regulation. We will bring forward new secondary legislation soon to consolidate these national rules with the new requirements under the EU regulation. In coming to that decision, the Government assessed the key factors—legal, ethical and religious—raised in this debate. In answer to the question from the noble Lord, Lord Grantchester, I anticipate laying the regulations in April.
As regards the legal factors, Council Regulation 1099/2009 provides for the protection of animals at the time of slaughter and came into effect on 1 January last year. It aims to ensure that animals are spared any avoidable pain, distress or suffering at the time of slaughter and it therefore requires that animals are stunned before they are killed. The only exception, as this debate has widely covered, is where animals are slaughtered according to religious rites.
The EU regulation also requires religious slaughter to take place only in an approved slaughterhouse and it allows member states to introduce additional national rules for religious slaughter. It is on this basis that we will retain our existing national rules on religious slaughter in the new domestic regulations and provide more extensive welfare protection to animals slaughtered in accordance with religious rites than that provided by the EU regulation.
Our existing national rules provide greater protection than those contained in the EU regulation in relation to, for example, cattle restraints, the method of killing and the handling of animals. We will keep our rule on “standstill time”, which means that animals must not be moved after the neck is cut until they are unconscious, and in any event not before a minimum period depending on the species.
It is worth saying that our stricter national rules take into account human rights legislation, including Article 9 of the European Convention on Human Rights, the right to freedom of religion and the freedom to manifest one’s religion or beliefs, and Article 14, prohibiting discrimination on grounds of race or religion.
The consumption of meat is a matter of personal choice. Those who choose to eat meat expect animals to be treated humanely when they are slaughtered. This is reflected in both EU and domestic legislation, which require that animals are spared any avoidable pain, distress or suffering both when they are handled and at the time of slaughter. As the noble Lord, Lord Trees, said, the Farm Animal Welfare Council’s 2003 report on the welfare of farmed animals at slaughter proposed that non-stun slaughter should be banned on the basis that it caused unnecessary suffering. That view needs to be balanced against the rights of the Jewish and Muslim communities to eat meat prepared in accordance with their religious beliefs. To insist on pre-stun slaughter would also effectively deny Jews and Muslims access to meat slaughtered in this country.
While the Government would prefer to see all animals stunned before slaughter, we respect the rights of Jewish and Muslim communities to eat meat prepared in accordance with their religious beliefs. It is worth noting that the term “religious slaughter” does not automatically mean that the animals are slaughtered without being stunned. As noble Lords have mentioned, some halal meat comes from animals that are stunned before slaughter. My noble friend Lady Fookes asked: why not require post-cut stunning? As we have seen, this is a very complex subject, but I understand that animals subject to post-cut stunning would no longer be acceptable to some religious communities.
The noble Baroness, Lady Deech, the noble Lord, Lord Palmer, and my noble friend Lord Gold referred to mis-stuns of cattle in conventional slaughtering. All animals that are mis-stunned must be immediately re-stunned, and operators are required by law to check that stuns are effective. That process is checked by independent vets.
The noble Lords, Lord Trees, Lord Rooker and Lord Grantchester, and my noble friends Lady Fookes, Lady Parminter, Lord Sheikh and Lord Palmer all spoke about labelling. The Government are aware of concern about non-stunned meat being sold on to the general meat market. We agree with noble Lords who have made the point that consumers should have the information to make an informed choice. It has to be said that there are some practical difficulties in identifying the method of slaughter for all meat from the point of source to the point of consumption, so the European Commission, which is well aware of our view, has commissioned a study on the labelling of meat from non-stunned animals. We await the results of that study, which are due shortly. We will look carefully at what options are available for providing information to consumers in the light of the study, and I am sure that noble Lords will want to revert to this subject when we have those results.
We remain committed to improving the welfare of animals at slaughter and, as my noble friend Lady Fookes proposed, to a continuing dialogue with all those concerned, particularly on the issues raised in this debate.
Business: International Competitiveness
(10 years, 10 months ago)
Grand CommitteeRead Full debate Read Hansard Text
Baroness Neville-Rolfe
To ask Her Majesty’s Government what direct measures they are taking to promote enterprise and the international competitiveness of British business.
Baroness Neville-Rolfe (Con)
My Lords, I ask this Question today to call attention to and encourage the measures that the Government are taking to promote our international competitiveness. This is a huge subject, and I will not talk much about the excellent work done by our ambassadors, UKTI, and by our Prime Minister to improve exports to China, Russia and so on, as I know that other noble Lords will do that. I will focus on three key drivers of enterprise and competitiveness: tax and regulation—we need fewer, better and clearer regulations and a mindset that encourages enterprise; infrastructure; and education. These are critical to a skilled workforce.
Economic advances stem from ideas developed by individuals and by private companies. When government has sought to take a direct hand in business, the results have often been disappointing. But government can and must provide a sound macroeconomic framework, sensible policies on tax and regulation, sound legal, competitive and educational structures and a good transport system. If policies in these areas are unwise, business finds it much harder to succeed. Enterprise and industry is also the source of the wealth on which ultimately everything else depends. That basic fact is sometimes overlooked. Schools, health, defence and welfare are important, but the resources available are dependent on the wealth that the business sector creates.
I come to this subject as someone who has spent many years working for a British company, Tesco, which has been one of the major commercial successes of the past 20 years. As a civil servant I led the deregulation initiative under my noble friend Lord Heseltine. I hope that my continuing business interests, which are recorded in the register, will keep me up to date in this House.
I begin with tax and regulation. As regards macroeconomics, the Chancellor has adopted the right strategy in rebalancing Britain away from reliance on debt and deficit. The deficit is declining rapidly as a proportion of GDP and we now have 30 million people in work. More important, from my perspective, is that for every one job lost in the public sector, four new jobs have been created in the private sector since 2010.
To match other countries in competitiveness, we must keep business headquarters in Britain. In my experience, philanthropy, R&D and a focus on a country’s interests all go with the headquarters, so it is excellent news that WPP, the advertising giant, has returned from Dublin to London. I welcome the new regime for taxing companies’ overseas operations and the Patent Box. They will help us to keep here companies such as GSK and ARM, which exports the chips for the iPhone to China. Best of all is the policy to reduce corporation tax; to help us to compete I would like to see it even lower.
We also need a regime that helps the 4.9 million small businesses in the UK. What the Government are already doing is not very well known: £2,000 off national insurance; an allowance to boost jobs from this April; no national insurance charge at all from next April for under-21s who earn less than £813 a week; a £25,000 increase in the investment allowance for plant and machinery until 2015; £150 million in start-up loans—a long list. For the high street, which is close to my own heart, 360,000 small businesses pay no rates at all because of the doubling of business rate relief.
I am the president of EuroCommerce, the EU-wide association of 6 million retailers and wholesalers. For us, the most important driver of enterprise is the EU single market. We also work hard to open up world trade, and I was delighted at the progress made at Bali, which included changes to border processes worth billions of pounds in saved time. I offer many thanks to my noble friend Lord Green, who did so much to make this happen.
I turn to the vexed subject of red tape. I know from my time in government, in Brussels and, indeed, my weeks in this House that everyone believes passionately in their own proposed regulations. However, the cumulative effect, especially on small business, can be disastrous and enforcement a further burden. Often, our regulators are judge, jury, scribe and enforcer, and so frightened of the media that they take a heavy-handed approach.
We have a programme of deregulation, but to make a real impact on small business, we have to change the mindset in the public sector from bureaucracy to customer focus and the elimination of wasteful error. We have to do less and champion simplicity—fewer, clearer laws, forms and penalties and better process using simple IT, including apps. Tesco taught me a lot about cost control. A process that saved one second at the checkout saved the company £2 million. We learnt lessons from complaints as well.
My second theme is infrastructure and the investment we need in our proverbial roofs. Some great things are being done. Crossrail is fantastic—although you never hear about it, possibly because it has admirable cross-party support. It is a £15 billion project and is estimated to bring benefits of £42 billion. The building of 55,000 new homes will come forward. Thousands of jobs have been created, some with small contractors as far away as County Down. It is a model project, to my mind, with the cost shared equally between government, Transport for London and business.
We need to mend the roof north of Birmingham as well. We need imaginative plans for our northern cities with transport links that do not just come to London, such as the Northern Hub and the Ordsall Chord, Manchester’s own Crossrail, which links Victoria to Piccadilly.
It is a digital age, and as the UK leads Europe in digital business and consumer internet access, we need proper broadband and mobile coverage everywhere. I commend the 2012 report of our Communications Select Committee on this very subject. In Shanghai, my phone works well. At home in Wiltshire, I had to go to the local cafe to do business last summer because of broadband problems. The Government are investing £500 million with matching funding from local authorities and BT. These are huge sums, so why cannot we require a basic level of connectivity everywhere by 2015? What about an official map, perhaps held by the Land Registry, to show street by street what progress is being made?
Finally, I turn to education. International competitiveness depends on education, and it is a scandal that in the latest OECD tables, our best place was at number 21. The Secretary of State is doing many good things, with free schools a fine innovation—we just need more of them. So are the new academies, such as the London Academy of Excellence at Newham, which sends more children to Oxbridge than some famous private schools. I hope that the Minister will update us on examples of business involvement in education that can really inspire others, such as our studio schools and university technical colleges.
However, as a businesswoman, I am very concerned about the way that Britain is being left behind. We need to improve education across the board and stop it being a postcode lottery. That is the best route to social mobility and reversing those worrying PISA scores. I would allow more grammar schools to expand.
In any event, I think that streaming should be the norm in our schools, as it also helps innovative teaching to be used in the slower streams. By recognising that children have different skills and strengths, more streaming could also give a boost to vocational training. Let us learn from Germany, where trades are learnt from sitting alongside experienced master craftsmen and engineers, and where employers have a big role in course design. The scale of apprenticeships under this Government and across the economy is a story that we should celebrate but work to improve yet further. Rolls-Royce had 318 apprentices in 2012, and this year, Tesco had 4,127.
I have one final point, and it is a warning. Looking back at the run of general elections, one sees parties vying to promise short-term measures that crack down on business and do disproportionate damage. There have been recent unfortunate examples. We must avoid this temptation: the effect will be to hurt our international competitiveness, our reputation and our country. We must promote enterprise and the competitiveness of British business. I look forward to further suggestions from noble Lords and to the Minister’s response.
Lord Bhattacharyya (Lab)
I thank the noble Baroness, Lady Neville-Rolfe, for securing this important debate, and I declare my interest as chairman of Warwick Manufacturing Group at the University of Warwick.
Much of the Government’s role in making business competitive is essentially passive: keep corporation taxes down, do not over-regulate and do not impose unreasonable bureaucracy. I have no quarrel with this: competitive taxation and sensible regulation are essential in a modern economy. In Britain we have outstanding finance and services companies that rely on these principles. However, this is a minimum, not a maximum, strategy for being competitive. To go further, we must actively support the creation of a strong product base in a wide range of sectors. We cannot rely just on banking or on our aerospace industry, because the global market is changing. The Prime Minister found this to be so in China. Economies such as China and India know their consumers are very attractive to global businesses. Understandably, they want to keep more of the value of their growing markets in their economies.
What does that mean for Britain? In population terms, we are a relatively small country. For our businesses to grow they must succeed in export markets as well as at home. The first step to achieving this is a competitive exchange rate. For many years, British exports were strangled by high sterling, and we must not let that happen again. The Bank of England has a major role to play by not rapidly increasing interest rates. Stable exchange rates clear the way for government to help create an innovation framework that helps businesses develop their product base. This is the key to sustainable growth. For proof, look at the export data by region. In most of Britain, exports were flat in 2013, but in the West Midlands exports were up a staggering 14%. Why? It cannot be the exchange rate, or tax rates, or regulation. No, the reason is that one company, Jaguar Land Rover, is enjoying huge success, now accounting for almost a quarter of all British exports to China. This is no accident. When the global market was in crisis, JLR spent billions of pounds on researching innovative new products. It spends £100 million a year in my place on R&D. Now it is reaping the rewards. Naturally, the companies which export so successfully will need to build factories in their biggest markets. Crucially, however, the benefits of this expansion will also be felt at home.
How can we spread this success more widely? First, we must help more businesses invest in Britain for the long term. We are beginning to do this with the UK Business Bank. However, compared to our competitors our help is insignificant: less than 1% of the assets of the German KfW. It is no wonder that German investment in both R&D and fixed capital is far higher than ours. The Business Bank must be greatly expanded. Secondly, we must encourage industry sectors to work together to identify the scientific challenges that will shape global markets, and fund the R&D that will solve them. The UK Automotive Council shows how this can work, developing research road maps and co-ordinating investment in areas such as battery technology. This is especially vital in building our supply chain, so that the success of a single company also supports broader growth.
Next, we must increase investment in workforce training and skills. The best people to identify the skills needed in the economy are businesses and workers themselves, not government. I welcome the approach of Vince Cable in encouraging apprenticeships and employer-led skills training. We have a university technical college because the noble Lord, Lord Baker, asked me to set it up. Within a year, we had 200 students joining us, long before it had even started. However, this must not be a free lunch for businesses. The quid pro quo must be greater business funding for skills training. A return to the training levy system would be supported in many sectors, as it would remove free riders.
Finally, if you want to attract investment, do not get in the way of businesses hiring talented people. The current visa policy is, if not causing a problem, creating a sentiment that Britain does not welcome talent. If we want to be competitive, we must encourage the best and brightest to come to Britain. British business has invested in the automotive sector to create innovative products, skilled people and efficient processes. That sector was in the dumps five years ago but, as a result of that investment, it is succeeding in the global market. Our challenge is to increase the number of industries where this is happening and to spread growth down the supply chain. This will take time and it is a task for many Governments, not just the current one, but the prize is surely worth the effort.
Lord Green of Hurstpierpoint (Con)
My Lords, I join in thanking my noble friend Lady Neville-Rolfe for tabling this important debate. International competitiveness is a function of many things, as we would all recognise: there is tax, regulation, infrastructure, education and the skill base. The two previous speakers have covered those. I want to focus on why it is so important for UK business to enhance its international competitiveness and on some of the implications of success in the international arena for policy and action by both government and business.
First, on why it is so important, I draw attention to the balance of payments. The current account deficit in 2012 was nearly 4% of GDP. That is a substantial deterioration on 2011, although that is partly—but only partly—the result of a fall in profitability on outward investment, which may be an aberration. The broader truth is that we have had a weak balance of payments position for the working careers of us all in this Room, and that trade has recovered only rather modestly since the 25% or so devaluation of sterling which happened five or six years ago. That is perhaps the slowest recovery ever, or at any rate since the war. The first decade of this millennium was the worst in terms of balance of payments and recent numbers show that we are, to say the very least, not yet out of the woods.
Why does this matter? Time was when a market fundamentalism had it that it did not really matter what the balance of payments did because the market was self-regulating and self-stabilising, and whatever current trade position we had, the market would take care of it and make the appropriate adjustments seamlessly. We now know that that is not true. Indeed, there is some reason to fear that future devaluations of sterling will be less effective than they have historically been because there is a rising share of imports in exports. About 70% of the value of some of our major exported manufacturing products is now in fact in imported components, which of course blunts the effect of any sterling devaluation.
Even more fundamentally, a weak and weakening trade position is a drag on growth. We all know that we need to rebalance the economy to shift it away from the old growth model, which depended too much on the domestic consumer taking on debt to drive growth. We know that we need to find other sources of growth and that means stronger investment performance—another story—but also, importantly, a stronger trade performance, because that way lies sustainable growth.
That is the macroeconomic perspective. The microeconomic perspective is that international involvement is clearly good for companies. There is compelling evidence from both government surveys and academic and private sector surveys that companies which get into the export markets become materially more productive and efficient than those which do not, and that those effects are very quick. Unfortunately, the evidence is that fewer British companies are engaged internationally than is the case with our natural competitors. For the sake of discussion, I will treat those as being Germany, France, Italy and such countries. A challenge for both the Government and the business community is to encourage and support more companies to get into the international arena: first, because we need it from the balance of payments perspective; and, secondly, because it is good for their productivity and we thereby strengthen the backbone of the whole economy.
What do we need to do to encourage and support this? There is the role of the Government themselves of course, and we have already talked about the importance of the tax and regulatory framework. I want to dwell briefly on the role of trade promotion. I might be regarded as parti pris in so saying, but I think that the role of UKTI and UKEF is important. The key themes of work in progress in both cases are obvious to us all—more private sector experience in their leadership, more ability to operate flexibly and to market their services to British companies up and down the land, and adequate budgetary resourcing. Can the Minister assure us that the work that has been put in hand over the last two to three years will be continued? This is, I might add, a marathon and not a sprint. We need to continue it, not merely through the next spending review, but probably for the next 10 to 20 years, if we are to put this right.
My final point is that this is a national challenge. Even if the Government get everything right, and we score the Government 10 out of 10 on all criteria, there is a job for business in this, and in particular, an important role for overseas business groups and chambers. In recent months, we have begun to work with the chambers overseas to upgrade their activities. My impression, from my previous role, is that there is a growing recognition among them of the importance of this, and a growing readiness to step up to the plate. Again, I invite the Minister to confirm that the work that has been put in hand will continue, because as I say, this is a marathon and we have to keep this up, probably for a generation.
Lord Stoneham of Droxford (LD)
My Lords, we know that the prime purpose and focus of the coalition has been to rebalance the nation’s finances, but frankly there is no point to austerity if we cannot now achieve growth.
In April 1990, I took on a new responsibility running a newspaper business—a very cyclical business. The English economy was just tipping into the property recession at that time. Within six months, the profits of that company halved. In the subsequent six months, 50% of the rest disappeared. It is an experience seared in my mind. It took more than five years before we rebuilt that business. Once your market goes, you concentrate on cost-cutting to remain viable. You push back on marketing and investment. It takes time for consumers and suppliers to regain their confidence. Then it takes time for the business to have the confidence to invest and retrain and recruit staff to take advantage of the pick-up, and build on its competitive advantages.
One of the problems at the moment is that although we have rising confidence, with increasing orders for business, the preconditions for sustained upturn are not yet in place. We know that consumption is fragile, and what we do not want is another boom-bust based on credit. We need the sustainable growth which builds on our competitive advantages in business, to compete better as a trading nation. The noble Lord, Lord Green, mentioned the vulnerability of our current trading account in international trade. This is where the Government have to concentrate on improving the underlying business environment, through their industrial strategy. They have to adopt a strategic approach to championing key sectors in the UK, where their competitive advantage gives them possibilities of advances and future opportunities for growth in international markets. It represents a once-in-a-generation opportunity to use the pressures of the recession, and business desperate to recover, to achieve the changes we need.
I am very optimistic. We have seen in the past year the success of the Olympics—the construction firms and the supply chain companies which are benefiting from the reputations gained in that very successful enterprise. It is a remarkable case study that our motor industry has been transformed in the last 20 years, building—announced only this week—1.5 million cars last year, and set for 2 million by 2017. In the next two months, our creative industries, through our film makers—the British producer of “12 Years a Slave” and the technical specialists on “Gravity”—are almost certainly going to be honoured as world beaters. There are 1.7 million jobs in that sector, which is 5.2% of our economy—also announced this week. It is beyond belief, and I cannot quite understand it, that this is not one of the key sectors in the Government’s industrial strategy. I question sometimes those slightly misplaced criticisms of media studies courses in our universities—but I pass on.
I mention also the company in which my son works, easyJet. Founded in 1995 by a Cypriot businessman, it is now the biggest airline in the UK. It has more than doubled its revenues during the recession. We certainly have the experience and the managerial talent to take us forward.
I commend the CBI’s publication, Raising the Bar, which illustrates in its business environment scorecard what we need to do to raise our game and to be more successful. It measures how we are doing against our principal competitors of Germany, France, the US and Japan. We are ahead now on corporate tax competitiveness. We have a strong competitive advantage in our science renewal facilities, but we have major catching up to do in education and skills, R&D expenditure as a percentage of GDP, overall infrastructure quality and especially ease of access to loans. On regulation, we do not score well, but nor do France, Germany, the USA and Japan.
What do we need to do? We need to build on what we are best at. Clearly, partnerships need developing between government, business and university research establishments—the new £1 billion advance propulsion centre to develop new propulsion technologies in the motor industry is one example of this. Of course, we need to reform regulation, particularly in Europe, but we do not need to undermine business confidence by sacrificing all the benefits of the open markets of Europe.
We need to focus on technical training and might well have to accept some sacrifice in our university education. We are leaders in some of the elite sectors of education, but we are underachievers in the less successful parts of education, where we need to increase the resources and the commitment given to technical education. Finally, we need to examine our supply chains. Only 36% of UK vehicles are sourced from domestic business, and there are opportunities for our suppliers to fill those gaps.
The momentum of the industrial strategy needs to be maintained. A political consensus is required to support it through the next Parliament and to ensure long-term investment. I hope that the industrial strategy council will hold government and business to account to ensure that real economic growth shows the benefits for the wider nation.
Lord Lyell (Con)
My Lords, I thank my noble friend for giving us a chance today to hear some outstanding speeches. I am afraid that I am well down the list, so, as far as industry is concerned, I am very much the tail-end Charlie. However, I take enormous pride in the fact that, 52 years ago, I started my commercial career as a apprentice chartered accountant in Rolls-Royce in Glasgow. Then, in 1962, there was—and indeed there still is—a strong shipbuilding industry on the Clyde in Glasgow. One of the first jobs that I did as an apprentice accountant was to go to a colossal steel company in Motherwell and to a seal fabrication company. Alas, that was 52 years ago. Things have, sadly, moved on from that particular aspect.
However, in the great city of Glasgow, what have we got? We still have the brains and the industry, including Rolls-Royce. Another firm very much involved in high technology, which the noble Lord spoke about, is Barr & Stroud. It is in defence and makes superb aiming and technical equipment. There is also the Weir Group. Wherever there may be problems with energy pipelines, you will find the Weir Group. Where is it based? It is in Glasgow. It is involved not just in the defensive aspect; it is aggressive in developing ideas throughout the world. These are all enormous, worldwide successes in different sectors, but I take some pride as a humble accountant in the fact that, defensively, they are all carefully watched by the accountants. I believe that we have good accountants in Scotland, but they keep their feet firmly on the ground of what you can afford. That is definitely crucial. I look at accounts and finance as being a first-class defence in that particular area.
In the early 1970s, I found myself spending more and more time in your Lordships’ House. In January 1977, I found that I was No. 2 apprentice on the Opposition Benches.
In January 1977, we discussed something called patents. I said, “Oh yes, that is very interesting”, but I then discovered that you had to be a lawyer or a scientist to have any clue about it. I am neither. However, thanks to wonderful advice from your Lordships’ House and from the pharmaceutical industry, I gained undying admiration for that industry in the United Kingdom, which I believe is a world leader. It is a subject of enormous pride and a colossal success in the UK. Looking at the competition all over the world, one or two of these enormous pharmaceutical enterprises in the United Kingdom have perhaps contracted but they have appeared in other areas. That is very much the lesson that my noble friend gave: where there has been a reduction in employment in some areas—for example, the public sector—there has been an improvement in other jobs, whatever the ratio may be, and we see that in the pharmaceutical industry.
The Minister who will be replying knows that I, too, am from north of the border. I am enormously proud of what we have in Dundee, with world-famous oncology ideas coming forward at the university. Indeed, the noble Lord, Lord Patel, is a world leader in that subject.
I understand that two aspects are relevant to the industry. One is something called the Patent Box, which I think my noble friend referred to. That involves finance and is most important, and I am sure that my noble friend Lord Younger will be able to reply on that. On the second aspect, I have a question. The Minister does not need to reply to me today but can he please ensure that the pharmaceutical industry is kept up to speed with patents and that it seizes the ideas and inventions that come forward within this country?
I thank my noble friend for the opportunity to take part in a star-studded debate. I am the junior batsman but I hope that I have made it.
Lord Paul (Non-Afl)
My Lords, I, too, thank the noble Baroness, Lady Neville-Rolfe, for initiating this very timely debate. I declare an interest as the chairman of the Caparo group, an industrial manufacturing company.
We are seeing a recovery in the economy—in particular, in UK manufacturing. This is very heartening, and confidence is important in achieving any recovery. However, I am concerned that growth will continue to struggle without the necessary environment of efficient regulation and support that only government can provide.
As someone who is involved with manufacturing industry, I am keenly aware of the fragility of this current upturn. In the automotive sector, for example, we have seen recent international success for the UK plants of Jaguar Land Rover and Nissan, yet for most other car plants, market conditions remain challenging. The fourth, fifth and sixth biggest car manufacturers are producing 30% fewer cars than before the financial crisis, and although we are now buying as many cars as we did before the recession, only one in every seven cars sold in Britain is made here. Even for those that can sell their products in this sector, skilled engineers are hard to find, and working capital to fund growth remains difficult to secure.
Behind the big car-producing household names lies a supply chain of component manufacturers and service providers upon which the car makers rely and which provide the majority of jobs and income on which our manufacturing regions depend. Most of these businesses have been unable or unwilling to risk investing in new productive capacity in the past few years. They are now feeling more confident to invest, but how are they going to find the capital and skilled labour to allow them to do this?
Despite the Government’s efforts, the commercial banking sector in the UK has continued to shrink its loan books, and what is available remains difficult to access. I welcome the initiative of the Government in setting up the British Business Bank, and wish the recently appointed chairman every success in investing the £1.25 billion that the Government have set aside, but this may be too little, too late. Germany’s KfW, on which I believe the British Business Bank is based, invested more than €17 billion in Germany’s Mittelstand companies in the first nine months of 2013 alone. If we are to compete in international markets, the Government and financial sector need to work together now to provide easily accessible funding solutions to support investment in our economy. Tax incentives for lease finance providers, coupled with enhanced investment allowances for manufacturers, could and should be considered.
We must also support our manufacturers in the training, development and availability of skilled labour at all levels, from shop-floor technicians through qualified engineers to senior managers. This must be a true partnership between government, academia and manufacturers. We need to ensure that a significant part of our higher education system is providing relevant skill training that serves the needs of commerce, and that involves local communities.
The Government must make key decisions for the country’s longer term future, such as proper plans for future power generation, airport capacity, transport infrastructure development and cutting procedural red tape, which stops us getting things done.
As yet, we do not know the outcome of the EU vote, nor are we likely to until at least 2017. Of course, at home we have the Scottish devolution vote. Any investor in UK commerce, whether domestic or from overseas, wants certainty on what it is committing to, and those unresolved issues hinder and frustrate even those who have the money and the labour. I urge the Government to start making decisions now, before it is too late.
The time may have come when the Government might think about the experience of our colleague, the noble Lord, Lord Green, and put him in charge of British industry’s development.
Lord Borwick (Con)
My Lords, I am grateful for the opportunity provided by my noble friend Lady Neville-Rolfe to make a few points about the international competitiveness of British business. The noble Baroness has had a tremendously successful career running an enormous British business employing thousands of people to satisfy millions of customers.
My experience is rather more mixed and modest, but I have started several engineering businesses, and at one time I could say that I was the first person to start an automotive production line in Coventry since the war, to make a new electric delivery vehicle to sell to companies such as Tesco. The noble Lord, Lord Paul, once drove it with me. Unfortunately, we were pioneering too early and in a dreadful recession, and I had to shut that business down. The business was indeed helped by BIS, but that was not what broke it. The reason why we started such a pioneering business in the Midlands was the depth of skills there and the enthusiasm of local businesses to help a small manufacturing start-up.
I am not sure that my experience is general, but I believe that making things is fun. I have had the privilege of running the company making the London taxi and I got a kick out of seeing taxi drivers doing business in my product, making themselves money. The noble Lord, Lord Bhattacharyya, may remember helping us, as he has helped so many Midlands-based manufacturing businesses. Indeed, he trained most of the engineers in most of the businesses in the Midlands.
When I saw the new electric van in Tesco livery, it was a thrill. It was not government encouragement or help that made us want to start the business. I believe that the most important thing that the Government can do to help British business is to reduce tax. The way in which entrepreneurs want help is by cutting the costs of doing business, the regulations on health and safety and the regulations on human resources that sap the little energy left in the mind of an entrepreneur after he has concentrated on satisfying his customers. Reducing tax is exactly what this Government are doing, and it is exactly the right thing to do. They may be doing so of necessity, because in this age of international trade it really is impossible to identify exactly where a profit is made and therefore where tax should be levied. Is it made by exploiting the patent or capitalising on the brand? It is quite reasonable to have a dozen different opinions on the implications of the same facts.
The best solution is to lower the tax rate to the point where it is not economic for the taxpayer to argue. I am not sure that 21% is low enough, but it is certainly a start and every little helps. We often underestimate just how beneficial tax cuts can be. There were encouraging signs of progress on this at the Autumn Statement 2013, with some preliminary work done on the dynamic modelling of corporation tax cuts. They were much more beneficial than static calculations had suggested. The Treasury and HMRC should be commended for finally undertaking this task. The model should now be published in full so that improvements can be made.
When I was a struggling entrepreneur, my wish was for smaller government, not better or more frequent free advice. My wish was for simpler tax laws, and now that I have the enormous fun of joining your Lordships’ House I am sure that tax legislation would be improved immensely if it were subject to the wisdom that is endemic here. The advantage to British business of your Lordships’ scrutiny of tax laws would be immense. If someone could actually read them before they were legislated, that would be an enormous advantage. The noble Baroness has called for debate on the direct measures that the Government are taking to promote entrepreneurship. The best single measures are to reduce Government expenditure and to reduce and simplify taxes.
Lord Young of Norwood Green (Lab)
My Lords, I, too, congratulate the noble Baroness on introducing this debate on a vitally important topic. It has been fascinating to see and hear the different perspectives. I did not take issue with many of the points raised by the noble Baroness. She mentioned the Patent Box, and we ought to claim a bit of the credit for that for the previous Government, whose idea it was.
However, I stumbled a bit when she confessed her desire to increase the number of grammar schools. As an ex-grammar school student myself, I must admit that the quality of my education was good, but I do not think that in the 21st century that is really the answer to our problems. We are far more likely to succeed with the model of university technical colleges which the noble Lord, Lord Baker, has been proselytising, if we are serious about inspiring the next generation of young people to get involved in craft and engineering. That seems to me to be a much more important way forward than trying to reintroduce grammar schools.
The noble Baroness also made the point about job creation, and one public sector job lost and four new jobs in the private sector. Of course we welcome the expansion of jobs in the private sector, but with some of them there is a price to be paid. A significant number are not full-time jobs but part-time jobs, and they do not actually fulfil the requirements of many people who need a full-time job. I do not quarrel with the expansion of jobs in the private sector, but we ought to get it into perspective.
Similarly, there is the question of the importance of education and apprenticeships. Of course, I applaud the work of the Government in building on our rejuvenation of what was in fact a dying apprenticeship scheme. My only problem with the current approach is that there is sometimes a desire to quote numbers. However, many of them, as we found out from examination, are adult apprenticeships which are really reskilling rather than being real apprenticeships. For me, with 1 million young people unemployed, the real focus ought to be on the age ranges of 16 to 24 and 16 to 18.
As has been said, a number of companies are doing well in recruiting apprentices—names such as Jaguar, Range Rover and Rolls-Royce. Yes, they are success stories, but far more worrying is the fact that still at best 8% of British companies have apprentices—that is the real nub of the problem, if we are serious about improving our skills—and still only one-third of FTSE 100 companies have apprentices. We have a long way to go in promoting that. There are still too many companies that believe that training is some other company’s problem, not theirs.
A couple of things have not been mentioned in this debate that interest me. One is the quality of management. We still have some way to go. I forget the exact figures from the Chartered Institute of Personnel and Development, but it was something like one in five managers having any training. So if we are serious about addressing the quality of the products and productivity itself, then surely that is one of the things that the Government need to focus on: improving the quality of managing.
I cannot help reflecting on another issue that no doubt impacts on Britain’s ability to export, and that is the cost of energy. We are all struggling with how we are going to deal with fracking and shale gas but I do not believe that we can ignore it. Look at what has happened in the States: the impact of low energy costs is not insignificant. I do not want to spoil the debate by focusing on the negative but a number of contributors today have indicated that we are not doing as well as we should be. The noble Lord, Lord Green, said, in relation to the nature of the recovery, that it was fragile. There is still a worry that the level of debts and the housing bubble are not really what we seek to do. If we are talking about sustainable growth then surely it does not matter which party you are a member of, but the latest figures are still worrying.
I look forward to hearing from the Minister whether he thinks that—I conclude on this—the biggest constraint that businesses have with regard to expanding and exporting is the thorny question of credit finance. A number of noble Lords have pointed out that the current efforts by the Government have not remedied this problem, but the latest proposal for a small-owned business bank itself may not be sufficient. I think it was the noble Lord, Lord Paul, who drew our attention to the German model. Whichever model we create, we must ensure that it delivers on what British businesses, especially small businesses, require, and that is reasonable rates of credit and finance.
The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)
My Lords, I thank all those who have contributed today, and particularly congratulate my noble friend Lady Neville-Rolfe on initiating this important debate. Indeed, I understand that it was her first debate in this House.
In my remarks I will outline the measures that we are taking to meet our aspiration that the UK is seen as the best country in the world in which to do business. There is of course much to say on both enterprise and competitiveness, so I will focus only on some key areas; that is, improving access to finance, equipping people with the right skills, increasing our exports and simplifying both taxation and regulation—all subjects that have been alluded to today.
First, the Government’s growth and business plan for UK plc is set out in our industrial strategy. As part of this, we are implementing 11 sector strategies in partnership with business. My noble friend Lord Stoneham highlighted the importance of focusing on specific sectors. I am co-chairman of one of the sector councils—the Professional and Business Services Council. This is the UK’s largest economic sector, accounting for 12% of UK employment and 11% of gross value added.
We have been working on some exciting projects. The Government have invested, in partnership with industry, approximately £2 billion in the Aerospace Technology Institute and, as my noble friend Lord Stoneham mentioned, £1 billion in the automotive Advanced Propulsion Centre. The first projects for both will be launched later this year. We have also earmarked £600 million for eight technologies where the UK has the potential to be a world leader; we have announced a new £100 million employer ownership fund to co-finance investment in skills in key sectors and new technologies; and we are going to reform public sector procurement to make it more accessible to SMEs.
The Government are also taking steps to strengthen manufacturing by encouraging innovation, business investment, technology commercialisation, skills and exports. For example, the Advanced Manufacturing Supply Chain Initiative has made £245 million available to support manufacturing supply chains in England.
The Government are also committed to ensuring that businesses can access the finance that they need for investment and growth. The new British Business Bank brings together the management of existing government loan guarantee and investment schemes into a single, commercially minded institution. I am pleased to have broad support for this from the noble Lord, Lord Paul.
Business bank schemes are supporting £600 million-worth of lending and investment on an annualised basis. This includes the successful Start Up Loans programme, which has already provided £60 million of funding, helping more than 11,500 entrepreneurs to set up their own businesses. The business bank will use its funding to unlock up to £10 billion-worth of additional business lending and investment. It will achieve this by developing innovative programmes for smaller businesses and investing alongside the private sector.
Your Lordships will be aware that apprenticeship numbers continue to rise as we make it easier for employers to take on an apprentice. The noble Lord, Lord Bhattacharyya, and my noble friend Lady Neville-Rolfe, highlighted the importance of skills and education, as did the noble Lord, Lord Young of Norwood Green. We are equipping people with the skills that employers want—for example, 2.5 million adult learners achieved a government-funded further education qualification, representing an increase of 9% in 2012-13.
I now turn to exports. First, I pay tribute to my noble friend Lord Green, a tireless advocate for UK businesses. He recently vice-chaired the World Trade Organisation summit in Bali. The outcome of the summit is the first global trade deal in 20 years. It will add £100 billion to the global economy and will provide £1 billion of benefit to UK businesses annually.
As Trade Minister, my noble friend also encouraged UKTI to focus support on those sectors most important to the UK—for example, helping AugustaWestland to win a £1 billion helicopter contract with the Norwegian air force and safeguarding 3,000 jobs in Yeovil. It is also working with British chambers to deliver a one-stop shop of support services to UK companies in overseas markets.
As Minister for Intellectual Property, I should like to plug, rather unashamedly, the business support provided by our network of international IP attachés. They have directly helped almost 300 businesses since November 2012 and advised 2,600 in their outreach and business education work. My noble friend Lord Green raised the very important point about the continuation of the work that he started at UKTI. I reassure him that that very good work will continue and will be built on to achieve the challenging targets that he himself set and which are still the bedrock of what UKTI must achieve. For example, I understand that UKTI is on target to assist 50,000 businesses by the end of 2014-15, and it is making a major contribution towards achieving the target of £1 trillion of exports by 2020 and getting 100,000 more businesses exporting by the same date.
We have set out to reduce tax and provide a stable tax environment to encourage investment. We will be reducing corporation tax to 20% by 2015, which will be the joint lowest in the G20. We have introduced the Patent Box to encourage innovative businesses to invest in R&D in the UK, and to boost the research base we have made R&D tax relief more generous.
The Patent Box, which my noble friend Lord Lyell mentioned, provides a 10% rate of corporation tax with the full benefits being phased in over five years, starting last April. It has already been widely welcomed by businesses and by representative bodies, including the CBI, and is expected to benefit up to 5,000 companies including SMEs. R&D tax relief helped to support over £11.9 billion of R&D expenditure in around 12,000 companies in 2011-12, and we have built on the success of this scheme.
We have reformed our controlled foreign company rules to give British businesses more certainty in their international operations. We are now starting to see the results of our tax changes, with businesses coming to the UK, including WPP and AON, and companies which plan to invest more in research and manufacturing facilities in this country, such as GSK and AstraZeneca. I do agree with my noble friend Lord Lyell that pharmaceuticals are indeed a key sector in the UK, and, by the way, it was good to have a plug from him for the city of Dundee. He also raised the point about the importance of patents and education, and I can reassure my noble friend that as Minister for Intellectual Property, the communication of the importance of protecting IP is very high on my agenda. Last year, for example, the Intellectual Property Office contacted 25,000 businesses. The Patent Box helped secure an investment of £500 million by GSK, which will create 1,000 new jobs in Cumbria.
My noble friend Lord Borwick raised the issue of tax, and I agree with him that the wish for simpler tax laws is very high on our list. I am sure that tax legislation would be improved if it were subject to the wisdom which is endemic here in this Chamber. The Government’s aim is for a tax system that is simple to understand and easy to comply with, and we have taken action to modernise and simplify the tax system. The Government established the Office of Tax Simplification in July 2010 to provide independent advice on simplifying the tax system, and have acted on a range of its recommendations—for example, a new cash basis for calculating tax in April 2013 for up to 3 million of the smaller self-employed businesses, and investing £200 million to expand HMRC’s digital services over the next three years, making it easier and cheaper for all 4.8 million small and medium-sized businesses to deal with HMRC.
However, we must make life simpler for businesses. We continue to work hard to reduce bureaucracy. I am happy to report that our efforts on deregulation have already saved businesses over £1 billion per year. We are exempting micro-businesses and start-ups from new regulations. This has recently been extended to businesses with up to 50 employees through the new small and micro-business assessment. We have committed to scrap or improve at least 3,000 regulations through the Red Tape Challenge. This includes stopping unnecessary health and safety inspections for low-risk businesses and introducing fees for employment tribunals to help deter spurious and vexatious claims. I know, as she has said, that my noble friend Lady Neville-Rolfe takes a keen interest in deregulation and I particularly wanted to thank her for her valuable contribution to the better regulation strategy group chaired by the noble Lord, Lord Currie.
We all know how vital small and medium-sized enterprises are to the economy. That is why we published a document, on 7 December, Small Business: GREAT Ambition, which sets out our commitment to help them. It focuses on a number of areas where government can help, including financing business growth, hiring people, developing new ideas and products, expanding into new markets, and getting the right support at the right time. What this means, more generally, is letting businesses get on with doing business.
My noble friend Lady Neville-Rolfe emphasised the importance of where business headquarters are located. I am happy to report that Ernst & Young reported in December that 60 multinationals were looking to move to the UK in the following 18 months. KPMG’s recent tax competiveness survey confirmed for the second year running that companies believe Britain has a more attractive business tax system than key competitor countries.
My noble friend Lord Stoneham raised the issue of the creative industries and asked why they were not one of the key sectors, which is a fair point to raise. The Government take the interests of the creative industries extremely seriously. We have the Creative Industries Council, which is chaired by my right honourable friends in the other place, Vince Cable and Maria Miller. I attended one of its meetings last year and can testify to the great work that the Government and industry are achieving by working together in this particular sector.
We are listening to businesses and we are doing everything we can to make sure that they develop, prosper and flourish. The initiatives I have spoken about today are of course only a selection of what we are doing to help, and I believe it is working. Evidence shows that businesses are more confident. Since April 2013, the proportion of businesses that believe their output performance is higher than 12 months ago has been increasing each month. We know there is still much to do, and the noble Lord, Lord Young, mentioned a fragile recovery. I believe it is better than that, but there is much more to do. We will continue to work hard, first, to make sure that the UK is seen as the best place in the world to do business; secondly, to make sure that the quality of British goods are acknowledged as exceptional around the globe and that enterprising companies have the necessary opportunities for growth; and finally, to continue to push our way to the very top of the World Economic Forum and the World Bank’s ranking for ease of doing business.
Education: Foreign Language Teaching
(10 years, 10 months ago)
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Baroness Northover (LD)
My Lords, I remind noble Lords that we are about to begin a time-limited debate. As far as I can see, there is no slippage time. Therefore, for those making Back-Bench speeches, when the clock reaches “5” they have had their five minutes.
Baroness Coussins
To ask Her Majesty’s Government what steps they are taking to ensure the success of mandatory foreign language teaching at Key Stage 2 from September 2014.
Baroness Coussins (CB)
My Lords, I declare my interest as chair of the All-Party Group on Modern Languages, which has been pressing for some years now for foreign languages to be part of the required curriculum in primary schools. I am therefore delighted that this will finally be the case from September this year, and I congratulate the Government most warmly on this reform. It has been a long time coming, having been on the cards for September 2011 but abandoned as part of a cross-party agreement before the most recent general election. I have never gone along with the idea, promoted from 2004 onwards, that compulsory languages at key stage 2 was a sensible strategic alternative to keeping languages in the national curriculum for all until the end of key stage 4. I believe that we should have both.
The focus today is on key stage 2, and the timing is very good. With some concentrated focus and leadership from the Government, starting now, we can ensure that we will not be back here in four or five years’ time being told by the language naysayers that pupils still do not like languages, there are not enough teachers and in any case English is enough. This is not the occasion to rehearse the arguments about why languages are important; we really must take that for granted in today’s debate. Suffice it to say that in the 21st century, knowing English is vital but knowing only English is a serious drawback. Primary school is the place to start making sure that pupils in the UK are on the front foot.
I apologise in advance to the Minister for the many detailed questions I shall be asking. If he does not have time to answer them all today, I hope that he will write to me and place a copy in the Library.
We will not be starting in September with a blank sheet of paper. Some 97% of primary schools already offer some language teaching and there is some excellent practice in several parts of the country. However, the latest data from the Language Trends survey indicate a wide variation in practice. Many schools treat their provision as a very lightweight introduction to a new language and concentrate solely on oral skills. Around one-third of schools say that they neither monitor nor assess pupils’ progress. Schools are not confident about the more rigorous aspects of language teaching.
There are five issues that need urgent attention from the Government if the new policy is to be a success overall, not just in small patches. I will address each of them in turn. They are guidance, support and training; teacher supply; measuring progress and continuity; capitalising on home languages; and the role of Ofsted.
First, the survey reveals a high level of dependence on outside support. However, there are real problems with schools’ access to that support and training. Official guidance barely exists. The new documentation for schools has only three pages outlining the purpose of study, attainment targets and subject content in modern languages. That compares with 88 pages for English. Surely that sends a message to schools about the level of importance attached to studying a foreign language.
The DfE says that schools should seek advice and support in preparation for key stage 2 languages, but does not actually provide any support or indeed guidance on how to find it. What is being done, and what more can be done, to ensure that schools have access to the support and training that they need? In particular, will the Government facilitate training for the new programme of study? Without further guidance on the intended outcomes of key stage 2 languages, it is also very difficult to know how much time to give to the subject in the timetable. England provides one of the lowest amounts of teaching time to modern languages in both primary and secondary schools of all the OECD countries. The current typical offer is one 30-minute lesson a week, and while that might be valuable in itself it is unlikely to lead to any measurable level of competence by the end of key stage 2.
The second big issue is teacher supply. How will the Government ensure that enough primary school teachers are trained to teach a language, bearing in mind that this becomes compulsory in only a few months’ time? What opportunities will there be for teachers to spend time in a country where the language they are teaching is spoken? Given the shortage of suitably trained teachers, what advice will the Government be giving to schools on the use of unqualified speakers of a given language who, perhaps with the appropriate training, might assist schools with their language provision?
The Minister might be interested in the case study of the Al-Noor primary school, an independent Muslim school in east London hoping to become voluntary aided. The pupils, none of whom are native Arabic speakers, start to learn Arabic in reception class and by year 6 have reached a level judged to be equivalent to GCSE. The teacher is not a native Arabic speaker either, although he is an experienced teacher and teacher trainer. However, he does not have QTS because the assessment-only route to QTS is not available, as I understand it, in languages. Is there any modification of the QTS process that the Government could make to improve the supply of qualified language teachers?
The third issue is measuring progress and achieving continuity. There is currently no guidance on the level to be achieved at the end of key stage 2 or how it is to be measured. Other countries use the Common European Framework of Reference, or a version thereof, which is adapted to measure the progress of young children. Without a national system of measurement, there is a danger that schools will adopt a minimalist approach that will not provide a secure or consistent enough basis for secondary schools to build on in the same way as they do for maths, English and science. Without this, year 7 pupils will all too often find themselves starting from scratch again in languages, which leads to boredom, demoralisation and a reluctance to continue languages after key stage 3. Will the Government therefore introduce a formal assessment measure? Will they set a defined level of achievement for pupils to reach at the end of key stage 2?
The Language Trends survey revealed that 60% of primary schools have no contacts on languages with their local secondary schools. The issue of continuity is often just dismissed as too complex to deal with, yet the national curriculum requires that key stage 3 should build on key stage 2. The need for a proper system to record pupil progress and pass this information on to secondary schools is key to the success of language teaching at key stage 2 and, indeed, throughout statutory schooling.
Crucially, will the Government ensure that a national recording mechanism is introduced to facilitate information transfer and also to provide data that would enable local, national and international comparisons to be made? The London Borough of Hackney and other school partnerships offer one example of an approach to achieving continuity, by having all schools, both primary and secondary, agree on which language is taught at key stage 2. Will the Government provide a strong steer to encourage schools to work together in this way?
The fourth issue that I flagged up is the value of home languages. One in six primary school pupils does not have English as their first language. We should recognise this linguistic capital as a significant asset. The Government’s decision to remove the list of seven languages allows primary schools the freedom to develop home languages as well as to introduce a new one. The challenge is how to recognise and accredit home languages now that the Asset system has been withdrawn. What will the department can do to make the Government more aware of the potential importance of the rich range of languages spoken in the UK for economic growth, national security and international diplomacy? Without the Asset scheme, how do the Government intend to support and develop higher levels of literacy in home and community languages?
Lastly, I want to say a few words about the importance of Ofsted inspections, which will play a critical role in measuring the successful implementation of this policy, as well as encouraging primary schools to take the reform seriously. To what extent will the inspection of language provision be part of Ofsted inspections from September 2014, and will the Minister assure noble Lords that full account of the new policy on key stage 2 languages will be taken in inspection visits and that it will form a part of all inspection reports?
I am excited about this new policy, but I ask the Government to pay urgent attention to the various gaps in the system that I have described, in order to prevent the policy from backfiring in practice.
Lord Lyell (Con)
My Lords, no subject in your Lordships’ House could have a better champion than the noble Baroness, Lady Coussins. I am one of her—if I can call it so—pupils. I am delighted that the noble Lord, Lord Aberdare, is here, because 60 years ago, at the school we both attended, I was decreed to be incapable of taking on board anything to do with science or mathematics and was placed in the languages stream. I have never forgotten what I learnt there. I listened to the marvellous and very encouraging comments made by the noble Baroness, Lady Coussins, about rigour in language tuition. The noble Lord, Lord Aberdare, and I will remember the rigour with which we had to learn languages in those far-off days.
I am particularly grateful to the noble Baroness, Lady Coussins, for all the expert advice that she has produced today, together with her commitment, drive and enthusiasm in beating the drum for something which appears not to be of enormous importance for school curricula, especially at an early stage: primary school, or when moving on to secondary school. I am afraid I am a bit lost with what the noble Baroness referred to as stages—is it stage 4? In any case, the first stage is the most important one.
The noble Baroness referred to mandatory tuition, and I had a question mark there. I believe that it can be, and ought to be, all the more important, since in another part of your Lordships’ House we have just had an enthralling debate on the world wide web with the noble Baroness, Lady Lane-Fox. That demonstrates the worldwide means of communication, and I suspect that a good bit of the world wide web is not in English, although English is probably the majority language of communication. If the Minister has time, I hope that he can say—or write to me or let me know somehow—whether there is a chance of using the world wide web and expanding its fantastic capacity for teaching and furthering worldwide communication.
On a personal basis—if the noble Baroness will forgive me this—when I was at the University of Oxford, I often had an essay crisis in the middle of the night. BBC Radio 2 went off air at midnight, but one did not worry—there were stations that could be listened to for 24 hours out of 24. On long wave, one had French radio. I was able to take all four French channels, and I am delighted that they have improved my communication. I then came to learn about the BBC World Service and all the languages and services that it provided.
Part of my activities in your Lordships’ House dealt with a thing called the North Atlantic Assembly, consisting of NATO parliamentarians. I was drafted on to a committee that dealt with communications and putting over some aspects of Western policy, especially in what we used to call the Soviet Union. The population of the Soviet Union in the late 1980s was 240 million people, of whom 130 million did not speak Russian. The BBC World Service was able to put out communication and wonderful ideas about our way of life in the eight or 10 different languages that were spoken in the Soviet Union. The noble Baroness’s drive for languages can open the world to young people.
I am sure that we will hear from the Minister about professional teachers and their methods, but I wonder whether he can give me some indication of the new psychology of youngsters, since it is 50 or 60 years since the noble Lord, Lord Aberdare, and I were drilled with rigour in languages. Modern languages can be fun for youngsters for both sport and chat but, my goodness, in future when I am long gone, I am sure that their professions, business, trade and finance will be improved, and it is vital that modern languages are part of their life. I am immensely grateful to the noble Baroness for this debate and, once again, I hope that she will forgive me for the usual Lyell hobbyhorse.
Baroness Morris of Yardley (Lab)
My Lords, I join the noble Lord, Lord Lyell, in congratulating the noble Baroness, Lady Coussins, on the stalwart and steadfast leadership that she has shown on this issue. A difference of opinion remains between her and me on the decision over key stage 4 modern foreign languages but, having been guiding the ship of the Department for Education when that decision was taken, I have naturally taken an ongoing interest in this, which is I why wanted to make a contribution to the debate today. I think that the noble Baroness’s introduction covered all the issues that could possibly be covered in this debate, so I apologise in advance for repeating some of them; I am just going to pick out two or three that matter particularly to me.
I very much welcome the Government’s decision on this; it is a good thing now to make modern foreign languages mandatory in primary schools. I welcome that and wish them well, and I hope that we can work together to bring about success. That was a decision that I faced over a decade ago, and I decided not to go ahead with it. However, coupled with the decision not to have mandatory foreign languages at key stage 4 was the decision to move the subject in time to primary schools and make it compulsory at key stages 1 and 2—never to leave it floating as being compulsory only at key stage 3, which I regret. I do not think it was the wrong decision not to make it compulsory way back in 2002—I am not sure that we had the resourcing within the nation and the education system to do so—but there are certainly lessons to be learnt about what has gone on in the decade since. It is those that I want to spend two or three minutes talking about now, and I have two or three questions to finish off with.
What went wrong? What would we do differently if we had to start again? First, giving the school system 10 years to enact something was far too long. School leavers or class teachers who were there at that point would not be there 10 years later, so there was no lever to give a sense of urgency to make primary schools get on with it. Secondly, although ring-fenced money was given to modern foreign languages teaching at the start of the process, it was put into the general school budget around 2006—not under my leadership but under later leadership, That was a mistake. It took the lever away again from encouraging primary schools to teach modern foreign languages. Thirdly, we never solved the problem of there being sufficiently highly qualified teachers in the primary sector. However, there were some things that went well, which is why 97% of the schools at least have a modern foreign language specialist.
It is worth the Government bearing these points in mind as they go forward with this task. First, we made great use of the specialist language schools, which are not there now. Those provided a core of partnership that is badly needed if primary schools are to make a go of it. They cannot do it alone; they need partnerships to join and leadership somewhere in the education system, because it might not be there in their own school. Secondly, we had co-ordination by the local education authority, which is no longer a player in the game. I am not sure where the co-ordination will now come from. Thirdly, we had designated advanced skills teachers who played a leadership role. There are some things that I would do differently but some things did have an effect, as we can see a decade later.
My questions for the Minister on this occasion are these. First, I found it quite difficult to find out the number of primary ITT-model foreign-language places for next year. Does he have those figures? I attempted to look them up but could not find them. Secondly, is partnership not absolutely key? There should be partnership with key stage 3 in the secondary schools to which those schools’ children are likely to go, partnership with other language speakers in the wider community and partnership with expertise wherever it might exist, whether in local colleges and universities or in neighbouring primary and specialist schools. The Government have not gone for a system of organisation where they force partnership on schools. I am worried about how schools will voluntarily make these partnerships, and make them effectively. That came out of points 5A and 5B in the consultation process which the Government have just taken forward. That was the most raised issue and I am not sure what the Government’s response to it is.
My last point is on pedagogy. We all want it to happen but making it happen will depend on the quality of teaching in each and every one of our primary schools and for each and every one of their pupils. What is the Minister doing to improve pedagogy and teacher quality in modern foreign languages? However, I wish the Government well with this. It is long overdue and I regret the gap that has happened, but it gives us a glorious chance to get it right in the years to come.
Baroness Garden of Frognal (LD)
My Lords, I, too, thank the noble Baroness, Lady Coussins, for initiating this debate and join in the tributes to her tireless work on behalf of languages. For those of us with a keen interest in modern languages, it has been encouraging to see the increased enthusiasm generated by public and private sector organisations, as well as such respected bodies as the British Academy and the Chartered Institute of Linguists, which have helped to inform and persuade the Government of the importance to this country of speaking languages other than English.
We live in an international world where technology has revolutionised the speed and range of communication. It brings together the multilingual nations of the world and the UK will be the poorer economically, culturally and socially if we cannot participate in languages other than our own. We saw a serious decline in the study of languages, which accelerated when the previous Government decided to remove the requirement for a language beyond the age of 14. The EBacc has helped to reverse the trend at key stage 4 with a healthy increase in GCSE entries in 2013, which we hope will be sustained. However, the decline at school led to a decline in university language study and, consequently, in those opting to become language teachers. Secondary schools are experiencing a shortage of skilled and enthusiastic linguists, and primary schools will have to compete if they are to fulfil their remit to interest children in languages at a young age.
It is noteworthy that an impressive 91% of the responses to the Government’s consultation agreed with the introduction of languages at key stage 2. It is widely recognised that the earlier a child learns a second language, the easier it is for them to absorb that language as a natural development at a time of life when so much else is being newly learnt. Breaking the barrier of one foreign language makes other languages more accessible. If there is such agreement over why this should be done, we need to look at how it could be done successfully, and the noble Baroness, Lady Coussins, outlined some of the issues there. It would not be appropriate to expect primary teachers to acquire language skills overnight that were not previously required. They are hard-working and hard-pressed enough in giving young children the best start to their education, so creative measures are called for to bring the fun and excitement of languages into primary schools.
When the previous Government were encouraging primary languages, imaginative materials were developed under the key stage 2 framework for languages. Children were encouraged to explore the new language collaboratively through games, songs and rhymes, and to show what they had learnt through simple conversations, role-plays and short performances. At school in France when I was eight we had to learn something by heart every evening, be it a fable de La Fontaine, some grammar rules or little known aspects of French history. Reciting these back was one of the few bits of fun in an otherwise humourless school, and many of those have actually stayed with me today—some more useful than others, I have to say. Learning songs and rhymes helps to develop children’s working memory, which is another essential tool in language learning. What account have the Government taken of these materials, which were tried and tested only a few years ago?
Another suggestion is to mirror the British Academy’s language assistants programme, which provides classroom placements in 14 countries overseas for English speakers with at least two years of higher education. Are there similar programmes to attract language assistants from overseas into our schools here? Student native speakers would bring currency and youth into lessons and marry their fluency with the teaching skills of the class teacher. Are the Government able to provide schools with advice on such exchanges?
Another connected source of support can come from embassies. A few years ago the German, French and Spanish ambassadors clubbed together to offer their backing to the then Government to revitalise interest and proficiency in their languages. This time round, when the range of languages was being debated, representatives from the Japanese embassy were anxious to ensure that Japanese should not be ruled out as one of the permissible primary languages. Along with that representation came offers to support the teaching of Japanese. They and other nationals succeeded in increasing the range of languages. What discussions have been held with London embassies to enlist their collaboration in promoting their native languages within the curriculum?
Primary schoolchildren are no strangers to technology. I hope the Government are also supporting the development of imaginative programmes geared to younger children to help them to master languages through computer-based games and activities. Our aim should be to inspire the next generation to see languages as the route to better global communication, more rewarding careers and a better quality of life.
Baroness Warnock (CB)
My Lords, I congratulate my noble friend on securing this debate. I associate myself very strongly with her reference to the common European framework of languages.
The excellent idea—initiated, I think, by Lord Dearing—of the language ladder seems to have disappeared through the floorboards. It is essential to have a way of assessing the progress of children at key stage 2, and this framework would provide that because it is adaptable to the earlier stages. More than that, it is also something that teachers themselves should be very much encouraged to make use of to upgrade their own language skills, or even to start at the beginning and treat learning a language like learning a musical instrument, where you have the associated board and examinations at various stages; it does not matter what age you are—you can take grade 1 when you are eight or 80. Such a framework is essential before we embark on the very welcome return of languages to key stage 2.
I have three questions for the Minister, all of which I think have been asked before in one form or another. First, are the Government planning for the department to set up some sort of crash courses for serving teachers in order to add a specific qualification in the teaching of languages to their existing qualifications?
Secondly, and even more importantly, are the Government minded to set up short training courses, preferably in-school, for bilingual non-teachers who could then act as peripatetic teachers in groups of schools? Of course, this entails what has already been mentioned: the need for collaboration between schools in an area. Primary and secondary schools should act as a collaborative group, and peripatetic teachers could therefore teach in both secondary and primary schools. Having a native speaker who has trained as a teacher, however briefly, would be an enormous advantage. I wonder if the Government have any ideas to set this up—immediately, really, because September is not so far away.
That leads to my third question: how are we going to break away from the domination of French as the most-taught language in primary schools? I have nothing against the French language—or rather, I have some things against it, although I am not anti-French—but the predominance of French is a purely historical matter that should be remedied in the 21st century. I hope that making use of native speakers of a variety of different languages would be extremely helpful.
This morning I asked someone who has lots to do with corresponding and communicating in foreign languages which two languages he would choose as the most useful to be taught at key stage 2. He said that his heart told him French—because he loves French—but his head told him Mandarin and Spanish. We ought to widen the range of languages taught and make use of all the skills that there are. As we know, many languages are spoken in this country at present. Mandarin is taught quite widely, but mainly in private schools at present, and we do not want it to be a skill that is confined to people who have been to private schools. I would be grateful if the Minister could answer those questions.
Baroness Sharp of Guildford (LD)
My Lords, I, too, thank my noble friend Lady Coussins, and declare an interest as the vice-chairman of the All-Party Group on Modern Languages.
The noble Baroness, Lady Morris, mentioned the decision that was taken in 2004. That was preceded by a Nuffield report on the teaching of languages, which had pointed out very clearly that in most foreign countries children were introduced to a foreign language at the age of six or seven and that on the whole this was recommended as a more effective way of teaching foreign languages. She mentioned the trade-off, that key stage 4 would be dropped, which was done very reluctantly on the part of some members of the Opposition at that time. Many of us fought hard against it and have regretted that decision ever since.
The relatively slow development within the primary sector has been described, but by 2010 well over half of primary schools offered some teaching in modern foreign languages. Today, as we have heard, the figure is 97%. The Ofsted report in January 2011, Modern Languages: Achievement and Challenge, pointed to the achievements of primary schools: approximately two-thirds of the schools visited were rated either good or outstanding in this area, especially in listening and responding, as distinct from reading and writing, in the foreign languages. That picks up the point about rigour that the noble Baroness, Lady Coussins, mentioned. What comes above all through from the report is the enthusiasm of the seven to 11 year-olds for their language studies and the diverse and imaginative approaches of teaching.
However, one feature that stood out from that Ofsted report was the importance of the competence of teachers. Some larger primary schools recruited language specialists themselves while others used part-time assistants, sometimes linking with the local secondary school and sharing their assistant. Ofsted noted that, generally speaking, schools that had access to native speakers achieved more highly than those that did not, although the imaginative use of DVDs and video facilities, linking up with partner schools and using the internet, e-mail and even Skype links substituted for this on occasion.
The NUT also emphasised the importance of teacher competence and the need to ensure sufficient time and resources for the training of teachers. Given the importance that Ofsted placed on the role of native speakers, there might be more of a role for training UK-based native speakers to help in schools—many French and German people are longstanding residents in the UK—as teaching assistants supplementing classroom teachers rather than substituting for them, but providing a very important link as a native speaker in helping with the teaching. It has always struck me that we send a great many young people overseas with as little as six weeks’ training to teach English as a foreign language. Why should we not reverse that and train some of our very competent native speakers in this country to do the same in our own schools?
The NUT also emphasised the importance of links with local secondary schools, which the noble Baroness, Lady Morris, and others have also spoken about. The new national curriculum gives schools considerable leeway to decide what language to teach and how to teach it. However, if the idea is to encourage young people to pursue modern foreign languages later in their studies, it is vital not to demotivate them at key stage 3. Nothing is more demotivating than having to go all over again, often painfully slowly, the elementary stages of language teaching when it has already been covered at your primary school.
Some of the most successful experiments in primary teaching have come from the linking up of what were the specialist secondary language colleges with the feeder primary schools. Sometimes they sent their staff out to help with the training of teachers and with developing the courses in those primary schools. How far is the Minister’s department encouraging primaries and secondaries to work together in local cluster groups, as I gather happened in Hackney—I think the noble Baroness, Lady Coussins, mentioned this—to achieve a smooth transition from one stage to another?
Lord Aberdare (CB)
My Lords, I am pleased that the motion refers to “mandatory” rather than “modern” foreign language teaching, since I shall talk mainly about Latin and Ancient Greek. I, too, echo the tributes that have been paid to my noble friend Lady Coussins for her leadership in this area.
First, I congratulate the Government on making foreign language learning compulsory at key stage 2, with Latin and Ancient Greek included among the languages available. As we have heard, from an early age children have an enormous capacity for learning languages. My own granddaughter, aged just five, who lives in Moscow, is the most fluent Russian speaker—in fact the only one—of all four members of her family, having spent some two years in a Russian school; and her English-language skills have certainly not suffered.
Classical languages, especially Latin, are particularly helpful in learning about how languages work. I can think of no better way of getting to grips with grammar—as the noble Lord, Lord Lyell, and I experienced—and Latin is directly relevant to the study of a whole group of modern European languages, so many of whose words and idioms derive from it. Beyond that, Latin and Greek can open a window into a much wider realm of literature, history, drama, law, philosophy, science and culture. They can combine well with other languages at primary level, each feeding off and reinforcing the others.
There are excellent materials available for teaching Latin at this level. The Minimus course, developed by Barbara Bell of the Primary Latin Project, has sold more than 130,000 copies and is widely and successfully used in schools teaching Latin to seven to 10 year-olds. It features a Roman family living near Hadrian’s Wall, including their slaves, a cat and a mouse, Minimus. The resources available include books, games, songs, a musical, comic strips, animations, finger puppets and more. Minimus is even on Twitter, although I imagine he should squeak rather than tweet.
I am encouraged by the fact that there seems to be growing enthusiasm among schools—including state schools—to offer classical language teaching, which has for too long been seen as the preserve mainly of independent schools. This has been very much down to the efforts of private organisations such as Friends of Classics, Classics for All, the Primary Latin Project, the Iris Project, the Mayor of London’s Love Latin scheme, Classics in Communities and others. These offer encouragement, support and resources, including financial, to schools wanting to try teaching Latin or Greek.
One project, started with a grant from Classics for All, has sought to introduce and embed Latin into a cluster of schools in North Walsham in Norfolk. This has employed four teachers, working with other suitable adults, to deliver the Minimus course at the primary schools. A further, important part of the project seeks to enable students from the primaries to continue with Latin up to GCSE level at the secondary school. The project has now spread to two other clusters.
There is much good work going on, but projects like these face some challenges, which I hope the Minister may seek to address. First, children studying Latin, let alone Greek, at primary level have only a one in four chance of being able to continue at secondary level. Again, excellent resources are available, notably from the Cambridge School Classics Project. Both Latin and Greek can count towards the EBacc qualification at key stage 4 but there is something of a black hole at key stage 3. Secondary schools cannot offer Latin as a language within the key stage 3 national curriculum, only as an option outside it.
Secondly, not enough new teachers are being trained to deliver Latin and other classical subjects, and there is little or no government support for training such teachers. Much teacher training has to be carried out by volunteers. The Norfolk project has had to make use of retired teachers, teaching assistants, governors, parents and others with suitable basic skills, as well as existing staff, including teachers of modern foreign languages. I hope the Minister is willing to look into ways of working with the classics community to tackle these issues. Perhaps he, or an appropriate ministerial colleague, might consider meeting some of the leading promoters of Latin teaching in primary schools to understand the challenges they face and to explore ways of meeting them, in order to ensure that the welcome inclusion of classical languages in the mandatory language teaching programme achieves the success it deserves.
Baroness Jones of Whitchurch (Lab)
My Lords, I am also extremely grateful to the noble Baroness, Lady Coussins, for tabling this debate today and add my thanks for her continuing commitment to making foreign language teaching in schools a success. As she said, this is a very timely debate, which allows us to be updated on the progress being made in implementing the key stage 2 proposals. As I think has been said, the noble Baroness has, quite rightly, identified the main challenges which still lie ahead.
First, I should state from the outset that we support the principle that foreign language teaching should be compulsory at key stage 2. Our record of producing young people and adults fluent in other languages over the years has been rather woeful. England continues to be ranked the worst country in Europe for the level of acquisition of foreign languages among teenagers. We have a long way to go, but we need to get the detail right. It may be that a 10-year run-in was too long, as my noble friend Lady Morris suggested, but conversely it seems that we are working to a rather tight timetable here for the implementation of the policy by September 2014. The Government have tried to make a virtue out of having a hands-off approach to schools, but on this occasion I hope the Minister would acknowledge that help is needed on this issue given the scale of the challenge ahead. I hope he is able to reassure us that steps are being taken by the department to roll the policy out successfully rather than leaving schools to do it all alone.
Secondly, as has been said, there continues to be a concern about the lack of staff expertise. Arguably, teaching a foreign language badly is worse than not teaching it at all at this level. For example, nearly a quarter of primary schools have no member of staff with a language qualification higher than GCSE. For many, that qualification was taken many years ago or, indeed, could be in a different language to the one they are now being asked to teach. Therefore there are challenges with the skills of the teaching pool. Arguably, that challenge—the language skills of existing teachers—is not something that will easily be met by September 2014. I hope the Minister can clarify how quality teaching will be assured and whether a national audit of the skills is being carried out. Do we have a sense of the scale of the problem, and how is the department addressing that issue?
Thirdly, there is the rather thorny issue of the choice of languages to be taught. When we debated the language order in Grand Committee which set the scene for these changes last year, I made it clear that we opposed the narrow range of languages which the Government intended to prescribe, and was therefore pleased when that element of the proposal was dropped. At the time I was unhappy on the basis that having a restricted list of languages would prevent us from benefiting from schools being able to adopt the languages predominant in their local community and to take advantage of that. For example, I was for many years a school governor in a part of Kennington which became known as Little Portugal because of the cluster of Portuguese shops and restaurants and, eventually, the large number of the families that came to live there. It made sense for that school to have Portuguese as its adopted second language. Indeed, the Portuguese embassy used to visit the school regularly and help with the language teaching there. In retrospect, that was a good model upon which we should build.
However, it is clear that to have a successful foreign language strategy we must have high levels of collaboration between primary and secondary school language teachers, particularly if we accept that a variety of languages will be taught at key stage 2. This has been said by a number of noble Lords this afternoon. That, again, is a challenge for the Government, and once again those strong interschool links require not only extra encouragement but extra resources. I would be interested to hear from the Minister what he is doing to encourage that collaboration.
Finally, there is the issue of the content of the primary language learning. The best language teaching I have witnessed makes the language come alive, encouraging children to communicate, perhaps imperfectly in the first instance, and to play games. The noble Baroness, Lady Garden, quite rightly stressed this, and gave some exciting examples about the importance of enjoyment at that level. I argue that grammar ought to come later. I am concerned at the messages from the department that seem to concentrate too much on learning grammar and not enough on that initial speaking and communicating.
I hope that we can agree that we are all aiming for the same outcome here, which is to raise the game of foreign language teaching at primary and secondary level, and to develop more young people who are able to communicate effectively on the global stage. I look forward to hearing what the noble Lord has to say about the plans to make sure that we are on track to achieve that.
The Parliamentary Under-Secretary of State for Schools (Lord Nash) (Con)
I thank the noble Baroness, Lady Coussins, for securing this important debate and for her insightful speech. I know how passionate she is on the subject, as she was today, and I thank all noble Lords for their valuable contributions. The noble Baroness is quite right to say that I will not be able to answer all her questions, but I will have a jolly good try. My noble friend Lord Lyell referred to an essay crisis. I have to say that I have been in this job for a year, and I have had more essay crises in the last year than I had in three years at Oxford. I have that distinct feeling right now.
This Government are determined to put languages back at the heart of our education system, and to make sure that every young person in the country enjoys a rich and rewarding language education. The earlier children become comfortable and confident speaking another language, the more quickly they become fluent and the more likely they are to do well as they move into secondary education and continue with languages at GCSE and, we hope, beyond. That is why, from next September, children will start to learn languages much earlier in their school career, from the age of seven.
As the 2012 Language Trends survey indicated, 97% of primary schools already teach at least one modern foreign language, and 83% are confident that they will be able to meet the statutory requirement from September 2014. I understand that the 2013 survey results will be available in the spring, and I hope that they will show further progress in this regard. Schools are not alone; there are many classroom resources freely available to support the delivery of high-quality languages teaching in several languages, as well as many highly qualified teachers and languages experts who are willing to support primary schools with the introduction of the new curriculum. This is where the support should come from, not from additional guidance or prescription from central government.
We want primary schools to concentrate substantially on teaching a single language from the age of seven right through to 11. This will give pupils four years of study in which to develop their listening, speaking, reading and writing skills to a high level. It will give them time and space to reach a decent level of fluency early on, giving them confidence that they are good at languages and encouraging them to continue with the subject for longer. It will also increase their confidence and capability, if and when they start to learn a new language at secondary level. We are not prescribing details of assessment outside English and maths. Schools should decide these for themselves, although they will need to demonstrate them to Ofsted, and I will come to that in a minute.
The noble Baroness, Lady Coussins, raised the issue of the amount of time spent on teaching languages at primary level. The Languages Trends survey showed that slightly over half of primary schools offered between 30 and 45 minutes a week, with around a quarter offering an hour. That is a good basis on which to build, although decisions about timetabling are, of course, for schools. We also strongly encourage primary and secondary schools in a local area to work together to offer the same languages, helping pupils to move smoothly between schools. Obviously this can help pupils greatly, and I shall say a bit more about that in a moment.
I turn to training and resources. Schools are already starting to prepare for the change of course, and there is a lot of support out there for them. Last year, the National College for Teaching and Leadership facilitated an expert group, now working independently, chaired by a leading primary head teacher. The group has been meeting to develop signposting of high-quality teaching resources to support initial teacher trainers as schools prepare for the introduction of key stage 2 languages. They are providing links to resources, courses, qualifications and people that the primary sector can use to support the introduction at key stage 2 from 2014, to be hosted on the website of the Association for Language Learning. We are considering the group’s recommendations carefully as we prepare for the implementation of the new national curriculum from September this year.
Organisations such as the Association for Language Learning and the Network for Languages are offering training to support the new languages curriculum. Another source of support comes from embassies and cultural institutions from many countries. My noble friend Lady Garden asked about the involvement of embassies. We have been enlisting their collaboration in promoting their native languages within the curriculum. The cultural section of the French Embassy, the Goethe Institut, the Spanish Consejeria and the Japan Foundation are already offering schools specialist support to help them teach these languages effectively. The Institute of Education’s Confucius Institute is working in partnership with HSBC to expand the teaching of Mandarin Chinese in primary schools. This is the kind of innovation and collaboration that we want to encourage in schools, and I hope that those resources will become more widely used by teachers in future.
Our approach to continuing professional development for teachers focuses on empowering schools to take the lead in the training and development of teachers and creating more opportunities for peer-to-peer training. The national network of teaching school alliances that we are creating will further build the capacity of schools to follow this approach, including in languages. Many schools are already doing this successfully. For example, Penrice Community College in Cornwall is working with primary school teachers in the Peninsula Teaching School Partnership to improve their confidence in using the spoken language in the classroom through French improvement sessions incorporating phonics. St Cuthbert’s Roman Catholic Primary School in Durham, part of the Together to Succeed teaching school alliance, has used different teaching models with different groups of pupils to identify how best to teach reading and writing in French. Such arrangements are not something that we can dictate from Whitehall and Westminster; they need to be sorted out at a local level. In our view, decisions relating to teachers’ professional development rightly rest with schools, individual teachers and head teachers, as they are in the best position to make judgments about relative spending priorities and requirements.
My noble friend Lady Garden asked about language assistants. The DfE provides just over £500,000 a year to the British Council to fund the language assistants scheme. As she mentioned, this covers places for UK undergraduates and recent graduates to teach English in schools and universities overseas, but also supports placements for foreign undergraduates and graduates in UK schools teaching their native language. Approximately 660,000 pupils in English schools are taught by about 1,400 foreign language assistants each year. The noble Baroness also asked about imaginative materials that were developed under the key stage 2 framework. We are aware of these materials. They are very popular, and there is nothing to stop schools using them.
Ofsted inspections, which the noble Baroness, Lady Coussins, referred to, are not subject-specific but ensure that the school curriculum is broad and balanced and that it meets the needs of all pupils. When foreign languages become compulsory from September, Ofsted inspections will consider them within this overall context, and guidance will be amended to reflect this.
On assessment, the chief inspector made a speech yesterday in which he dwelt at some length on the point that in future, Ofsted will be looking to schools to demonstrate that they have in place effective assessment methodology in relation to pupils’ progress annually. This is a very significant step in enhancing the accountability of schools, and we look forward to them using this in relation to languages.
The noble Lady, Baroness Warnock, raised the issue of the range of languages taught at primary level and the predominance of French. She will be pleased to hear that under this Government, Spanish has increased 41% at GCSE and we have substantial moves in place to expand Mandarin teaching. The Institute of Education’s Confucius Institute is leading the way. The British Council is also working with Hanban to increase the demand for Mandarin teaching in schools and to address supply—for example, by increasing the provision of Chinese language assistants.
I turn to home languages, in response to the point made by the noble Baroness, Lady Coussins. Teaching home languages can be included, although we would not want this to be at the expense of providing those pupils with an opening to languages and cultures other than their own. The noble Baroness, Lady Sharp, asked about classroom assistants. She had the fantastic idea of bringing in native speakers to support language teaching and learning in the classroom. In our view, it is important to be able to draw on a wide range of people to do this, even if they do not have qualified teacher status.
The noble Lord, Lord Aberdare, raised the issue of classics, which I know is very dear to his heart. I reassure him that from 2014-15 we have more than doubled the level of bursary that teacher trainees in classical languages will receive to match the amount that trainees in modern foreign languages get—up to £20,000 for a trainee with a first-class degree. As he mentioned, Classics for All is receiving £250,000 from the London Schools Excellence Fund. He also asked about a meeting to discuss the creation of more language teachers and training. I will suggest this to my honourable friend Liz Truss, who has responsibility for that area, to see whether she would like to meet.
A number of noble Lords spoke about pupils learning languages earlier, the importance of co-operation between primary and secondary schools, and working together in partnership. There is a bigger issue here. We have a big focus on GCSE results but, as we all know, in all subjects, not just languages, the grounding that pupils get in primary school is so important to enable them to go on to get those GCSEs. We are very keen on teaching school alliances, which I have mentioned—primaries and secondaries working in collaboration, and primaries working together. We are seeing a number of primary schools, which are often at a sub-critical mass, coming together and working in groups of academies—we have incentives to encourage them to do this—or secondary academies working with their feeder primaries. We believe that this development will be very productive.
I am extremely grateful to all noble Lords, including the noble Baroness, Lady Morris, for her comments about what we are doing, and the noble Baroness, Lady Jones, for her support. In conclusion, by starting languages earlier, concentrating on fluency and confidence, raising standards at secondary level and encouraging greater take-up at GCSE and beyond—as our EBacc policy is already achieving—we aim to end England’s disastrous language drought, and to prepare the next generation to go out into the world with confidence and to reach their full potential.
Mesothelioma: Research Funding
(10 years, 10 months ago)
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Baroness Jolly (LD)
My Lords, this is a time-limited debate and time is going to be very tight. We have one speaker who has asked to speak in the gap, for a short amount of time, so it is really critical that noble Lords keep their comments to the time given in the list. Thank you.
Lord Alton of Liverpool
To ask Her Majesty’s Government what progress has been made in the funding of research into mesothelioma.
Lord Alton of Liverpool (CB)
My Lords, today’s letter in the Daily Telegraph, signed by 13 Members of both Houses drawn from all parties, once again underlines the case for doing far more to find the causes of, and cures for, mesothelioma—a devastating disease which annually claims around 2,200 lives and which is likely to kill more than 50,000 more British people unless new treatments are found.
Let me begin by thanking my fellow signatories and all those taking part in today’s debate. This cause was one about which my good friend, the right honourable Paul Goggins, Labour Member of Parliament for Manchester Wythenshawe, felt deeply. He spoke extensively in Committee on the Mesothelioma Bill. He, and the Conservative Member of Parliament, Tracey Crouch, tabled amendments on Report, based on the amendments narrowly defeated in your Lordships’ House, which would have created a small levy to fund mesothelioma research. Just before the Christmas Recess, he and I once again beat a path to see Ministers to raise the plight of victims of mesothelioma. It was one of the last things that Paul did. After a massive stroke, which robbed him of life, and which robbed Parliament of a good and principled man, Paul was buried earlier today. Our thoughts are with his family. This debate, and the continuing fight for justice for victims of mesothelioma, and the need for sustained and adequately funded research, is the best tribute which we can offer him.
During our meeting at the Ministry of Justice with the noble Lord, Lord McNally, we asked about the review required by Section 48 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 into the effects on mesothelioma claims of its Sections 44 and 46. This brings us full circle, to the House of Lords debate, in which the House rejected the LASPO CFA reforms as sufficient to justify imposing legal costs on mesothelioma sufferers. When I tested the opinion of your Lordships’ House, noble Lords rejected the Government’s proposal that CFA reforms lifting damages for pain and suffering by 10% would compensate for the deduction of 25% of those same damages in success fees.
On 4 December, the Government issued a statement abandoning the consultation reforms in the face of overwhelming opposition from the claimant community, but stated that Sections 44 and 46 would be brought into force for mesothelioma sufferers, stating:
“The Government does not believe that the case has been made for mesothelioma cases to continue to be treated differently”.—[Official Report, 4/12/13; col WS 28.]
I refer the Minister to the recent Legal Ombudsman’s report on no-win no-fee agreements, stating that there is evidence of some lawyers failing to make clear the financial risks of conditional fee agreements and trying to pass on the risk to customers. That is precisely the situation your Lordships feared, and would not tolerate dying mesothelioma sufferers facing. That is why, on two occasions, we defeated those proposals and agreement was reached to have a review. However, as Mr Goggins and I made clear to the noble Lord, Lord McNally, there has been no review worthy of the name. The Government have simply restated their original argument.
The crucial point is that any scheme should deliver no less favourable compensation than is presently provided. Victims deserve nothing less. I hope that the Minister will comment on this. During our ministerial meeting, we linked this question to that of research because if cures and causes were identified, such issues would be otiose. In any event, investment in mesothelioma is in its own right desperately needed. The UK has the highest rate of the disease in the world. The annual number of mesothelioma deaths in the UK has nearly quadrupled in the last 30 years.
As I argued during the proceedings on the Mesothelioma Bill, it cannot be in anybody’s interests, not least that of the insurance companies, to pay out vast sums of money in compensation and to generate the full panoply of schemes, reviews, fees, CFAs and litigation, if causes and cures for mesothelioma could be identified. That is why, under the auspices of the British Lung Foundation, to which I pay great tribute, and with the assistance of the Department of Health, a handful of enlightened insurance companies—AXA, Aviva, RSA and Zurich—have been generously funding some of the research. However, as we know, that money has come to an end. A statutory scheme with a small levy on all companies would be both fairer and, perhaps more importantly, a sustained source of funds for research.
With this very small level of funding, the results have been impressive. New researchers from other areas of therapy have started to take an interest in mesothelioma, bringing with them new expertise and insights. Europe’s first mesothelioma tissue bank, which I think we will hear more about from the noble Lord, Lord Avebury, has been created to collect and store biological tissue from mesothelioma patients for use in research, and work is being funded to identify the genetic architecture of the disease. The evidence demonstrates beyond doubt that investment in mesothelioma is worth while. However, all the original funding has now been allocated and we look forward to hearing from the Minister what new funding will be forthcoming to continue this work.
A sustainable, reliable voluntary agreement involving all or most of the 150 firms with an active interest in the employers’ liability insurance market would be difficult and impractical. It is for that reason that the Government will ultimately have to intervene in order to make this funding compulsory and fair, so that it is spread across the entire industry. I was particularly concerned to hear a defensive Minister, Mike Penning, say during debate in the House of Commons in his role as Minister of State at the Department for Work and Pensions,
“I cannot break the deal”—[Official Report, Commons, 7/1/14; col. 204.] ,
implying that the deal to get the Mesothelioma Bill through both Houses prevented a statutory levy being secured. Happily, as they say, that is now history and I hope that Ministers will look again at this question. The Conservative Member of Parliament, Dr Sarah Wollaston, who supports the proposal for a statutory levy, has told me that she would particularly like to see scientific research which supports the development of better technologies for preventing exposure and the emerging technology for real-time detection of asbestos fibres, which could significantly reduce the risk of avoidable future cases.
These small sums would make a huge difference to the future of mesothelioma research in the UK and could potentially lead to cures, which would save tens of thousands of lives. It is estimated that 150 insurance firms are active in the market and that a small contribution from each could raise a vital £1.5 million each year for research.
I now want to say something about the alleged lack of quality of research applications. On several occasions, the Government have suggested that the lack of research is due to the poor quality of research proposals and not the funding available. Happily, this misconception has now been thoroughly debated in the other place and Ministers have conceded that that is not the case. During the debates in the Commons, Paul Goggins referred to the work of Stephen Holgate, MRC Clinical Professor of Immunopharmacology at Southampton University and chair of the British Lung Foundation’s scientific committee. Stephen Holgate says:
“It is simply not true to state the quality of mesothelioma research applications is not up to standard”.
From what he called the “very meagre starting point” of existing funding, he says that the work already undertaken,
“has been of an exceptionally high standard”.
Therefore, the practical and moral case for the industry having a duty to fund mesothelioma research, and the Government’s responsibility to ensure that it does, is abundantly clear. However, it is also clear that, even if some funding were to be made available through the voluntary route, it alone would not address the core issue at stake here, which is sustainability. Therefore, while welcome, sponsorship of specific projects in isolation will not be an appropriate way forward. It is incumbent on us to find one that is.
With the opportunity having passed for putting sustainable future funding for research in the Bill, I hope that the Minister will today give a concrete guarantee for a long-term, sustainable research programme. Such a scheme could be achieved either though securing long-term investment from the insurance industry via a voluntary scheme or by introducing, as I hope we ultimately will, a statutory measure making contributions from that industry to fund mesothelioma research compulsory. However, we also need a commitment today that the Government will make this happen, a date by which the Government will ensure that a scheme is in place and an assurance that such a scheme will be of the value of at least £1 million every year.
Mr John Edwards, consultant thoracic surgeon at Sheffield’s Department of Cardiothoracic Surgery, sums up the arguments in the following way: first, that government, industry and insurers do not want to fund the immense costs of treatment, benefits and litigation for mesothelioma; secondly, that patients and their families would much rather have their lives back than any benefits or compensation; thirdly, that researchers have plenty of ideas but not enough funding; and, fourthly, that current treatments may have benefits in palliation of symptoms and a modest increase in life expectancy but do not cure the disease. In other words, there would be huge benefits to the health of the nation if the insurance industry were to invest likewise in research.
Mr Alan McKenna, an academic who teaches law at the University of Kent, has seen several members of his family contract asbestos-related diseases. Last week, he launched an e-petition to the Government calling for more research into mesothelioma. In the House, a Private Member’s Bill will shortly be introduced.
I read last week of a journalist who was in her 50s and who, like her nine year-old daughter who had died a year earlier of mesothelioma, had succumbed to the same fatal disease. We are all aware, too, that there have been fatalities among family members of several senior colleagues in both Houses; just before today’s debate, the noble Lord, Lord West, told me that 10 of his contemporaries at Dartmouth have died of mesothelioma. These may be added to the thousands of men and women who contracted this killer disease simply by going to their place of work.
Lord Borwick (Con)
My Lords, I declare my interest as a trustee of the British Lung Foundation. Lung diseases are predominantly diseases of the poor because they are often associated with tobacco. Because of this association, there is a strange guilt attached to lung disease, and so the level of research generally into lung diseases is very low.
Asbestos exposure is a subject that is correlated with workmen who dealt with asbestos in the construction or shipbuilding industry at a time when it was regarded as a safe, reliable fire protection. We now know that it is a killer. Like Jimmy Savile, that which was presented by the BBC as safe and cuddly turns out in reality to be a monster. It is very difficult to raise money for lung research because of this guilt complex and, as a result, the BLF has a turnover of about £6 million per annum, which is tiny in comparison with that of the British Heart Foundation. I am afraid that the British Government seem to have been affected by this as much as others. It is only recently that the Government have been working hard to help with fundraising for research into this, and of course they have been doing so against a background of a dreadful recession. It is hard to raise funding at this time.
If we look at breast cancer, a disease that 40 years ago was seen as being just as fatal as mesothelioma is now, the prospects have been transformed by good research and by attracting the best researchers into working on that subject, and the same could be done for lung disease. Normally I believe that the private sector will always be better than the Government at achieving almost anything, and I should pay tribute to the four insurance companies which funded the first three years of the research push. They are Axa, Aviva, Royal Sun Alliance and Zurich—heroes all. However, the insurance industry is beset by the problem of free riders—those who gain the benefit without picking up any of the cost. Notably this has happened in the car insurance industry, and even with modern number plate recognition the cost of uninsured drivers in accidents is an enormous burden on the price of motor insurance. Is that not structurally similar to the cost of insurance companies not contributing to the research fund for mesothelioma?
A general problem for lung disease is the guilt implied by the reaction of so many people. Even if people choose to smoke or do not have the ability to give up an addiction, no such criticism should possibly be made of mesothelioma patients. The sad thing is that Governments in the past have generally not treated the subject of lung disease with the importance or priority that other diseases have achieved. I do not want to criticise past Governments, but I will say that the general level of research into lung disease is much less than into other diseases. Of course, I applaud the work that the Minister has been doing in trying to negotiate more funds. The Government certainly believe that they are enlightened—even the whole source of enlightenment—so can I suggest that lung disease is a cracking good place to prove it?
Lord Wills (Lab)
My Lords, I congratulate the noble Lord, Lord Alton, on securing this debate and on his persistence in pursuing this issue. I associate myself with his remarks about Paul Goggins, who was such a good—in every sense of that word—colleague in the other place and indeed in government.
In supporting what the noble Lord, Lord Alton, has said, I want to make two simple points in the short time allocated. In doing so, I recognise the commitment of the Minister and his ministerial colleague, the noble Lord, Lord Freud, to making progress on this issue. Indeed, I congratulate the Government on the significant progress made more generally in the Mesothelioma Bill; it is a significant advance on where we were just a few years ago.
My first point is that the need to place funding for research on an adequate and sustainable basis should be incontestable, as we have heard over and again in your Lordships’ House and in the other place, and we have heard it again here today. This is a dreadful disease that inflicts terrible suffering on thousands of people and into which research is significantly underfunded in comparison with other cancers.
My second point is that the Government need to act more vigorously to ensure that funding for research is put on an adequate and sustainable basis. There is no good reason for them not to do so. If the problem remains the quality of research proposed, as the noble Earl has suggested in the past—and, as he is well aware, that is disputed, as we have heard again today—then the Government need to do whatever is necessary to raise the quality of those proposals. I suggest that the single most important action they could take is to increase the sums of money available for research. It is hard to see how that would not work.
If Ministers are tempted into further inaction by arguments about the problems of hypothecation, they should not be: those arguments are misplaced. As we heard from the noble Lord, Lord Kerr, in the debate last year, that pass was sold when funding was first accepted in universities and other research institutions from non-governmental sources. I am not aware that accepting such funding has resulted in any dilution of the quality of research.
If the problem is shortage of funds—although the noble Earl has insisted in the past that it is not—then that, too, needs to be addressed. As the noble Lord, Lord Alton, has pointed out, the Minister in the other place has said that to ask the insurance industry to pony up more funding would disrupt the exhaustively negotiated agreement which was the basis of the Mesothelioma Bill. Is that really the case? Quite apart from the continuing moral responsibility of the insurance industry as a whole—leaving aside the notable exceptions that we have already heard about—the sum of money to significantly improve the research effort on a sustainable basis is a tiny fraction of the overall amounts involved and an even tinier fraction of the sums that insurers should have paid to sufferers over the years but have evaded doing so. For example, £3 million a year would double the amount currently donated by the private and voluntary sectors. Do the Government seriously think that a levy producing £3 million a year would so distress the insurance industry, which pays out £187 million a day to its customers—more than £68 billion a year—that the industry would walk out of the agreement or think that its fundamentals were disrupted in any way?
I ask the Minister to look ahead 10 years and ask himself how it will look to historians if the Government do not find a way around all the objections, no doubt spelled out in his brief today, to making real and quick progress on this matter so that they can agree the reasonable requests that have been made in the other place, and indeed here, by all who have spoken on this issue in the past year or so. How will it look if the Government fail to engineer the relatively small sums of money needed and so condemn thousands to avoidable pain and suffering? I am afraid that the longer the Government delay in finding a solution, the harsher will be the judgment of history.
Lord Avebury (LD)
My Lords, the noble Lord, Lord Alton, has reminded us of the assertion by the noble Earl, Lord Howe, that progress on mesothelioma research was being held up not by the lack of available funding but by the absence of high-quality research applications. That has been refuted by a number of experts, notably Professor John Edwards, one of the foremost experts on this disease, who says that he and his colleagues have,
“identified that we could spend about £10 million instantly”.
Will the Government now acknowledge that there would be high-quality applications if researchers knew that a definite source of funding was available?
In 2012, £1.2 million was spent on mesothelioma research by the National Cancer Research Institute’s partners, so the loss of the net £880,000 available from the insurers represents a fall in total expenditure of no less than 43%. The British Lung Foundation says that the new community of researchers that it supported had,
“the potential to make real breakthroughs … of the kind we’ve seen in other types of cancer in recent years”,
but this is now under threat as the money has run out. As the noble Lord, Lord Alton, said, if a cure were found for this horrible disease, the enormous future costs of treatment, benefits and litigation arising from mesothelioma would be saved, benefiting not only the patients and their families but also the NHS, the DWP and the insurers. For this, we need ongoing work such as the research by the Sanger Institute, with two American groups, to identify the role that genes play in this disease. This could be the first stage in finding a cure, through chimeric antigen receptor cell engineering, a process in which T-cells are taken from the patient and genetically modified so that they link on to receptor proteins on the cancer cells and destroy them. This has already been used successfully to treat patients with acute lymphocytic leukaemia at the Children’s Hospital of Philadelphia, which says that this is,
“another important milestone in demonstrating the potential of this treatment for patients who truly have no other therapeutic options”.
So there is a glimmer of hope for mesothelioma sufferers here, if only the research funding were available.
We understand that a new agreement would be needed for the industry to extend the funding that some companies have provided over the past three years, or better still to increase it in line with the fall of the value of money. If the Government then provided matched funding, as the Minister in another place indicated was being discussed between the DWP, the DH and the ABI, we could be looking at £2.4 million a year between 2014 and 2017. The Minister said the ABI had “gone to the industry” and would come back to him and the noble Earl, Lord Howe, with its answer and that that process continues. However, the ABI tells me that Ministers said plainly that they were not prepared to look at co-funding between the Government and the industry.
If joint funding could be agreed in principle, there would be an overwhelming case for all employers’ liability insurers to come forward with half the money. The total over the coming three years would match the amount spent in a single year on cancers with similar death rates, such as myeloma and melanoma.
As it is, we leave this debate without any solid assurance on the future of the research spend on a disease which is extremely painful and always fatal. We, too, have not been able to respond to the urgent need for research to deal with the consequences of previous Governments’ failure to act on the known risks of asbestos use, but this Government have not heard the last of the matter.
Lord Kakkar (CB)
My Lords, I join in congratulating the noble Lord, Lord Alton of Liverpool, on having secured this important debate, and in so doing declare my own interest as professor of surgery at University College London. Responding to discussion on Report on 17 July last year, the noble Earl, Lord Howe, made a number of important points with regard to the opportunity to build capacity in the research base available to address the important problem of mesothelioma. I would like to explore first with him what progress has been made in the four specific areas that he kindly mentioned during that debate.
The first was the opportunity for the National Institute for Health Research to seek the assistance of the James Lind Alliance to determine priorities with regard to mesothelioma research, bringing together not only the research community but patients and other stakeholders. Secondly, there was a commitment that the National Institute for Health Research would be in a position to issue a highlight notice to the research community identifying that the institute—in consultation, I assume, with the Office for Strategic Co-ordination of Health Research—had identified mesothelioma as a key national priority research topic, thereby activating not only research groups with a specific ongoing interest in mesothelioma but those with peripheral interests that could be brought to bear to address the question of mesothelioma research. I wonder whether that notice has been issued and, if not, when it is planned that it would be.
Thirdly, there was the offer that the National Institute for Health Research would make its research design service available to the research community, specifically to start identifying designs of clinical studies that could be undertaken to help to advance our understanding of mesothelioma research. Lastly, there was a commitment to bring together interested parties in research funding, particularly Cancer Research UK and the Medical Research Council, to have a conference of experts and those parties interested in mesothelioma research to determine how a national co-operative effort could be taken forward. I wonder whether any of those undertakings have indeed happened or in what timeframe it is planned that they might be discharged.
It is clear that the situation in which mesothelioma research finds itself is nothing new. At many times, and for many other diseases, there has been recognition that a new strategic research focus needs to be developed at national level. I would argue that with the National Institute for Health Research now well established and in place in the NHS in England, we are uniquely positioned to take forward a strategic approach, not only to building research capacity but in ensuring collaboration across those groups devoted at the moment to mesothelioma research and other groups who have technologies and interests—we have heard peripheral examples of the management of acute myeloid leukaemia—so that they are brought together with some strategic focus and direction. I wonder whether the Minister is able to provide your Lordships with an understanding of what point those discussions have reached.
In addition, we now have across the NHS in England well established academic health science networks, 15 of which cover the entire country. I declare my interest as chairman elect of University College London Partners. I wonder whether opportunities might be brought to bear for promoting research and collaboration between academic institutions, the NHS and industry, which are at the core of the purpose of the academic health science networks. Those 15 networks would then be asked to see how they might contribute, through their participant organisations, in a national research effort to promote further understanding and a more accelerated research programme on mesothelioma.
The Lord Bishop of Newcastle
My Lords, I, too, am very grateful to the noble Lord, Lord Alton, for initiating this short debate. I speak to support him and to encourage the Government to enable the establishment of a mesothelioma research funding scheme as urgently as possible. Research into this form of cancer is very much the Cinderella of cancer research in the UK, and there is an urgent need for us to do more and to do better.
I knew very little about mesothelioma until I became aware of its effects, not least through the early death in 2009 of the former Bishop of Peterborough, who some Members may recall. The knowledge that the cause of this cancer has been working away unknown and undetected in one’s body for 20 years or more suggests to me that much more research into detection and treatment is absolutely vital.
It is reckoned that this year over 2,000 people will die of the disease in the United Kingdom. We have the highest rate of the disease in the world, and a similar rate to those dying of myeloma and melanoma. However, the problem is that the funding for mesothelioma research lags far, far behind; it is only about one-tenth, from the figures that I have seen. If it is true that every single week an average of 20 tradespeople in the UK die from diseases such as this which are linked to exposure to asbestos during their working lives, then that is a tragedy.
I know that the Minister is sympathetic to the needs of all those who suffer from this terrible disease, and that he is sympathetic to the need for more research. If I may, I urge him to be really proactive in his work with his colleagues, academics, the NHS and the insurance industry to establish a sustainable research funding scheme. It is self-evident to me that more and sustainable funding will attract greater quality research to an area that has been neglected and underresourced for so long.
Lord Giddens (Lab)
My Lords, let me add to the chorus of praise for the noble Lord, Lord Alton, not only for initiating this debate but for all his extraordinary work around this issue. In the debate on the Bill in the Commons, it was said quite frequently that research into mesothelioma has a Cinderella status in terms of research funding. It is worth asking why that is so. It may reflect some generic issues, but I think that there are some specific ones.
The best way to consider this is not to be too parochial about it but to look around the world. When one does this, as I did in my admittedly amateur way, one finds exactly the same pattern in the European countries, in the United States, in Canada and in Australia. That suggests that we are dealing with a deeply structural problem, which has some specific features connected to this disease. Thus, for example, in the United States, according to the figures that I have, the National Cancer Institute until recently invested only 0.01% of its annual budget in research into mesothelioma. That suggests that there might be a powerful cluster of reasons that is producing this marginality in research terms. There are four of them, which I will briefly describe.
First, because of industry resistance—we all know the long history of that—most attention has been focused on reparation and legal wrangles. In so far as the disease is known at all to the wider public, it is mainly due to that history rather than to its own characteristics. Secondly, by its very nature it affects mainly working people, who do not have the political clout of the more affluent. Thirdly, in industrial societies, although not on a global level, it can be seen as an illness that will fade away naturally because asbestos is no longer used in industry and most of it has been disposed of, so it could be said to have a kind of natural life cycle. Fourthly, because of those things, the alleviation of suffering is often seen as important rather than the creation of research in a direct and systematic way into the disease that produces that suffering.
If noble Lords will forgive me for being academic and didactic about this, there are three policy implications of what I have described, which I would like the Minister to ponder and perhaps respond to. First, if we are to get more money spent on research—and there will be a need for public backing for that—the Government should consider spending more on a public awareness campaign about mesothelioma to ensure that it is understood as a structural disease in its own right and that it is disentangled from the legal histories that have so dominated its past. That has happened with lung cancer and smoking; the same thing should happen with mesothelioma.
Secondly, I feel strongly that the objective research should not be just to control symptoms but to search for a cure, as the noble Lord, Lord Avebury, mentioned. I checked some of the treatments in the United States and the debates about them; as I say, I am an amateur in respect of those treatments, but they seem pretty promising. Some new treatments have been admitted to the FDA’s fast-track programme in the US, including gene therapy, which was mentioned, immunotherapy and so on. We should look for a cure for this illness.
Thirdly, the most powerful reason for supporting research is not just that many thousands of people are still affected by mesothelioma and will die from it. As we know, thousands of people will do so, but there are even more powerful reasons than that to support research. A prime reason is that we need research into pathologies of environmental origin. We should remember that only 40 years ago or so asbestos was thought of as the miracle substance. We live in a world in which we ingest, breathe in and are in contact with thousands of substances that have never existed before. It takes about 40 years for mesothelioma to come out; a variety of other consequential diseases might be stored up there. There is therefore a great public interest in this, which stretches well beyond mesothelioma itself. I would appreciate a response from the Minister to those three questions.
Lord Wigley (PC)
My Lords, I am grateful to my noble friend Lord Alton for securing this debate. I pay tribute to him for his perseverance with this most distressing of subjects. We seem to be fighting a battle of attrition, one step backwards regularly following what we had thought to be two steps forward.
The importance of not letting up in our fight for mesothelioma sufferers came home to me last month, when the Christmas card from my closest school friend, Peter Wolfe, told me that he had been diagnosed with the condition, despite never having worked in any industry that could have triggered the disease.
We have been reminded of the estimated 50,000 people who may die over the next 30 years unless adequate treatments are found, and I suspect that this could be an underestimate. In Wales, cases of mesothelioma have risen sharply over the past 20 years. Whereas 23 cases were reported in 1990, by 2008 that number had jumped to 90, and according to Cancer Research UK, the latest estimate is about 109 new cases annually. That is partly because of Wales’s industrial legacy.
However, there are dangers for younger generations too. Some 85% of schools in Wales contain asbestos, compared to some 75% of schools across the UK. Almost 400,000 children and young people in Wales are exposed to the risks of this deadly material. The Cwmcarn High School is a case in point: it was forced to close in October 2012 after a survey found that pupils and staff were at risk from airborne particles of amosite asbestos. Responsibility for the management of asbestos in schools rests with the Welsh Government, but that of research rests primarily in the hands of the UK Government. As has been said, investment in such research is woefully inadequate. According to the National Cancer Research Institute, £400,000 was invested in mesothelioma research by its partners in 2011, compared with £5 million for myeloma and £5.5million on melanoma—two cancers with similar fatality rates.
The agreement in place over the past three years with the four leading insurance companies, generating £1 million a year for research, cannot be funded in the longer term. We tried but failed to get provision for a statutory levy during the passage of the Mesothelioma Bill. That could have raised £1.5 million a year for research.
As has also been mentioned, a similar amendment was tabled in the Commons by the late Paul Goggins, aimed at ensuring that research funding in this area would be permanent and effective. As he said in Committee:
“The problem, as the industry itself says, is not that some companies are not prepared to fund this; it is that not all of them are prepared to do so … we must have a formula and a system that means that everybody contributes according to their market share”.—[Official Report, Commons, Mesothelioma Bill Committee, 10/12/13; col. 15.]
As a result of his remarks, the Minister, Mike Penning MP, agreed to talk to the ABI about setting up such a broader agreement. I understand that a meeting has taken place, although nothing concrete has yet come out of it. Perhaps the Minister could clarify that in due course.
I associate myself with the tributes paid to Paul Goggins. It was poignant that Tracey Crouch MP had to move the amendments tabled in his name on Report shortly before he died. That amendment was defeated by 266 votes to 226. Responding to that debate, the Minister claimed that the additional research levy would nullify the deal reached by the Government, because the industry claims that a voluntary agreement with all 150 firms would be unmanageable. Is the industry to be granted a veto in this most vital area of research? The Government really must find a solution. If they cannot establish such a voluntary scheme, they must find other means of providing statutory funding. The more time that we waste in deferring this decision, the greater the number who will die.
It is not only people in the UK who are at risk. I conclude with Paul Goggins’s words in Committee in the Commons:
“We have the dreadful problem of mesothelioma in this country, and people will die from that dreadful disease, but we know that, because of the export and use of asbestos in the developing world—the so-called BRIC countries—the issues that we face now are issues that other countries will face in future. If we can advance the science and understanding of mesothelioma now, that might do great good not only in this country, but throughout the world”.—[Official Report, Commons, Mesothelioma Bill Committee, 10/12/13; cols. 9-10.]
I hope that the Government will listen.
Baroness Finlay of Llandaff (CB)
My Lords, 60% of patients diagnosed with mesothelioma are dead within a year. In Wales alone, care costs about £2 million per annum.
I want to focus on three essential areas of mesothelioma research that need funding. First, the long latency period between asbestos exposure and tumour development can be up to 50 years, so what triggers the disease? Secondly, is there a genetic element? Evidence suggests that some families are particularly at risk but the specific predisposing gene has yet to be identified, suggesting epigenetic factors. Thirdly, is there a tumour marker such as CD90, as recent research has suggested, for early mesothelioma diagnosis?
The Welsh Assembly’s Asbestos (Recovery of Medical Costs) Bill in November 2013 proposed to secure funding for NHS Wales to treat asbestos-related diseases and recognised the importance of research. Moreover, the British Lung Foundation, using funds from four leading insurance firms, has sponsored research at Cardiff University to develop a new laboratory model. Earlier diagnosis by markers may provide a treatment window. The Government can lever actions through the issues identified by the noble Lord, Lord Kakkar, and others. This debate is a tribute to Paul Goggins, elegantly led by the noble Lord, Lord Alton of Liverpool.
Baroness Wheeler (Lab)
My Lords, I also commend the noble Lord, Lord Alton, for securing this debate and for ensuring that we keep the focus on the Government’s pledge on a package of measures to stimulate and build high-quality research into mesothelioma. There is optimism that progress is slowly being made but we are a long way from getting the secure and guaranteed funding on the scale we all want to see and which we recognise is vitally needed to offer hope to mesothelioma sufferers and to find a cure.
Noble Lords, and supporters of the Bill across all parties in the other place during last week’s Third Reading, have stressed our moral obligation on this issue in this country and internationally, as my noble friend Lord Giddens has underlined today. I also pay tribute to the vital contribution and role of Paul Goggins. I did not know him personally but certainly was fully aware of his work and reputation in my party, and of the respect in which he was held across Parliament. Now that the Bill has passed, I also pay tribute to the work of the British Lung Foundation and the campaigners, trade unions, MPs and Peers who have been lobbying for many years for justice for victims of this terrible disease. The BLF carer support project, in conjunction with Carers UK, is also developing vital support networks for carers and their families. It deserves special mention and recognition.
The Government have agreed that the scheme regulations will provide for a review of the operation and effectiveness of the scheme in four years’ time, which we welcome. On research funding, we must ensure that considerable progress has been made by then. The noble Lord, Lord Kakkar, again has ably underlined the need for a strategic, defined national initiative on mesothelioma research. I look forward to hearing from the Minister what actions are being taken on this. How will the current initiatives his department and the DWP are rightly pursuing be developed and built into a coherent strategy which will lead to real progress being made?
There is no doubt that the mesothelioma research programmes funded by the BLF itself, as well as jointly with the four insurance companies, and by other charities, have played an important role in kick-starting research and academic interest and laying the foundations for future developments. The meso-bank which is collecting tissue and blood samples from sufferers will provide the opportunity for fundamental and translational research. There are important projects too on palliative care and pain relief. I notice on the BLF website that it has recently awarded a further tranche of grants which will help to improve understanding of how the disease develops and progresses, and how our genes contribute to the disease.
We strongly supported the amendment in the name of the noble Lord, Lord Alton, for the 1% levy on the insurance companies, which would have provided secured and guaranteed research funding, and could have led to major advances and breakthroughs. It was sad to see this amendment again defeated in the Commons last week. As our shadow Minister, Kate Green, said, the levy,
“is very modest in the context of the overall scheme … a very modest sum for a multibillion pound insurance industry to afford, but a sum that could make an exponential difference to the scale of research that is possible into the disease”.—[Official Report, Commons, 7/1/14; col. 201.]
As we have heard, the DWP Minister of State, Mike Penning, cited the quality of research issue—on which there are clearly differing views among medical and research experts—but also rejected the amendment on the basis that it would “break the deal” with the insurance industry on the whole compensation scheme. It will be interesting to get further insight from the Minister today on why the insurance industry saw this issue in this way. I, too, look forward to the update on the ABI discussions that was promised by the Minister.
We know that the terrible reach of mesothelioma extends across all occupations and is not just an industrial disease. Indeed, it is anticipated that in the coming years more people will be diagnosed from all occupational backgrounds who have come into contact with asbestos or who contracted it via secondary exposure, such as wives who washed their partners’ overalls.
I was particularly concerned to learn of the huge problem of asbestos in schools, to which the noble Lord, Lord Wigley, referred. The risk or impact is not just on teachers but on children and ancillary and office workers. More than 70% of schools still contain significant amounts of asbestos. I am sure the Minister will agree that this frightening situation underlines the importance of making real and substantial progress on mesothelioma research, not just into treatment and cure but also into how the workplace can be protected.
Like other noble Lords, I look forward to hearing from the Minister what progress is being made on the joint DWP and Department of Health initiatives, and on the Government’s plans and timescales for developing the full-scale strategy for mesothelioma research that is so desperately needed.
The Parliamentary Under-Secretary of State, Department of Health (Earl Howe) (Con)
My Lords, I thank the noble Lord, Lord Alton, for having tabled this debate. Mesothelioma is, as we have heard, a terrible and devastating condition. There is no cure and uncertainties remain about the best available approaches to diagnosis, treatment and care. It is therefore completely right and appropriate that mesothelioma research has been discussed a number of times, both here in your Lordships’ House and in the House of Commons.
Funding is, of course, needed for further research to be carried out. The four largest insurance companies have previously made a donation of £3 million between them, and this is supporting valuable research into the disease. A higher level of funding has come from government—through the Medical Research Council and the National Institute for Health Research. Together, these funders spent more than £2.2 million in 2012-13.
The MRC is supporting ongoing research relating to mesothelioma at the MRC Toxicology Unit and is also funding two current fellowships. The NIHR is funding two projects in mesothelioma through its Research for Patient Benefit programme, and its clinical research network is recruiting patients to a total of eight studies, including industry trials. The NIHR funds 14 experimental cancer medicine centres across England with joint funding from Cancer Research UK, and these centres have four studies focused on mesothelioma.
However, as I have said previously, the issue holding back progress into research into mesothelioma is not—as a number of noble Lords have intimated—a lack of funding but the lack of sufficient research applications. I want to clarify and stress that the work currently being funded is of high quality, and that is consequent upon high-quality applications.
Money is available to fund more research, but measures are needed to stimulate an increase in the level of research activity. That is why the Government have committed to doing four things and I am delighted to have this opportunity to report on progress to the noble Lord, Lord Kakkar, in particular, and other noble Lords who have spoken with considerable insight in today’s debate.
First, we promised to set up a partnership to bring together patients, carers and clinicians to identify what the research priorities are. This is now well under way and a formal launch event took place successfully last month. It is supported and guided by the James Lind Alliance, which is a non-profit initiative overseen by the NIHR Evaluation, Trials and Studies Coordinating Centre. The partnership has a steering group of 16 people, comprising six patient/carer representatives and 10 clinical representatives.
The next stage is a survey asking patients, families and healthcare professionals for their unanswered questions about mesothelioma treatment. The partnership will then prioritise the questions that these groups agree are the most important and the end result will be a top-10 list of mesothelioma questions for researchers to answer. The partnership plans to have the list ready by the end of this year, when it will be disseminated, and work will begin with the NIHR to turn the priorities into fundable research questions.
Secondly, the NIHR will highlight to the research community that it wants to encourage research applications in mesothelioma. The launch of this highlight notice will take place in advance of the identification of research questions by the priority-setting partnership to prepare researchers.
Thirdly, the NIHR Research Design Service will be able to help prospective applicants develop competitive research proposals. This service is well established and has 10 regional bases across England. It supports researchers to develop and design high-quality proposals for submission to the NIHR itself and to other national, peer-reviewed funding competitions for applied health or social care research. The service provides expert advice to researchers on all aspects of preparing grant applications in these fields, including advice on research methodology, clinical trials, patient involvement, and ethics and governance.
Finally, we have made a commitment to convene a meeting of leading researchers to discuss and develop new proposals for studies. Initiatives like this are one reason why it is so valuable to have the National Cancer Research Institute, the NCRI, which enables the major funders of cancer research to work in strategic partnership. I can report that NCRI officials held a meeting with clinical research leads yesterday, 15 January, to develop plans for bringing researchers together, and a representative from the British Lung Foundation also participated. The outcome was encouraging: the NCRI will be organising a mesothelioma workshop in the early summer with the aim of encouraging competitive grant applications in the field of mesothelioma. This will cover the full spectrum of basic, translational and clinical research.
Several noble Lords have—not unnaturally—spoken of a need for an ongoing role for the insurance industry in funding mesothelioma research. While the Government have money available to fund high-quality mesothelioma research proposals, we are also encouraging insurers to provide further funding. My honourable friend the Minister for Disabled People, Mike Penning, has met the Association of British Insurers, and following that meeting I have written to the association’s director general, Otto Thoresen. I am pleased to say that he has confirmed in a reply today that a further £250,000 will be paid directly to the British Lung Foundation. He has also confirmed the industry’s commitment to explore with the Government the range of future funding options. We would welcome another opportunity to meet insurers to discuss this.
Lord Borwick
I thank the Minister for that news. I also have a copy of the letter. The £250,000 is very useful, but it is less than one single claim from a sufferer of this disease. This has to be a short-term solution. If the voluntary agreement mentioned by the noble Earl does not happen for some reason, will the noble Earl push for legislation to make it happen compulsorily?
Earl Howe
My Lords, I note my noble friend’s question. My best answer to him at this stage is “one step at a time”. However, I can assure him that we will use our best endeavours to see a successful outcome from our discussions with the insurance industry. It is perhaps premature for me to go further at this stage.
Lord Alton of Liverpool
My Lords, I am grateful to the Minister, and I promise not to interrupt again, but can he provide further clarity about this £250,000? Is it drawn only from the four companies that have been referred to? How many of the 150 companies are contributing to it? What does it represent in terms of what is currently available from the industry?
Earl Howe
My Lords, as this is a time-limited debate, perhaps the noble Lord would accept my undertaking to write to him with those details. I am not sure, in fact, that I have them, because the letter, although extremely welcome, is quite brief in the detail it gives on the source of the funding.
Lord Wills
I am very grateful to the noble Earl for giving way. I shall be brief. Will he write within the next three months to everyone who has spoken today reporting on the progress of the conversations with the ABI about the range of options he has just referred to?
Earl Howe
I would be happy to do that.
Both the Government and the industry recognise the potential for insurers individually to sponsor specific research infrastructure or projects in mesothelioma, which would provide an excellent way for the industry to remain engaged following the earlier donation. I am pleased to report that the Department of Health is convening a high-level meeting with the association and the British Lung Foundation to explore practical ways to take that forward.
The noble Lord, Lord Alton, spoke powerfully about the need for sustainable funding in this area. I re-emphasise the point that I made a minute ago: research funding is available for good-quality research and what we lack are research applications. What we need, in our view, is to get innovative research ideas that will make a real difference, and that is what the NCRI meeting will hopefully do. The research ideas put forward by the noble Baroness, Lady Finlay, in her intervention are of course very pertinent. She speaks with great authority in this area. They are all questions that the NCRI discussions can address. That meeting will be an opportunity to take a strategic approach, and it requires getting the right people together. The NCRI event will involve researchers from within the mesothelioma community, and from a wider field, and research funders.
It is worth noting that spend on lung cancer research by the NCRI member organisations, including the main public funders of cancer research, has more than quadrupled over the past decade. It has increased from £3.5 million in 2002 to £14.8 million in 2012. That is because of the quality of research proposals that have come forward and the interest shown by the research community.
In conclusion, the Government are strongly committed to ensuring progress is made in research into how best to diagnose and treat this dreadful disease, and care for those affected. A number of very powerful points have been made in this debate. I will pick up those that I have not been able to cover and will write to noble Lords. I have outlined the steps that we are taking, and I hope that noble Lords are assured that these measures will deliver what they, and indeed we in the Government, are seeking.
House of Lords
(10 years, 10 months ago)
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Stephen Ward
(10 years, 10 months ago)
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Lord Ahmad of Wimbledon (Con)
My Lords, the Government cannot identify a full transcript of the Stephen Ward trial within their records. Full transcripts are not automatically created unless ordered by the judge or requested by the parties involved in the trial. The National Archives and the Crown Prosecution Service hold partial records of witness evidence given in the trial but a full transcript of proceedings may never have been created. The partial records contain sensitive information about people who are still alive. Disclosing such records would invite renewed and potentially unfair speculation about their activities. Accordingly, these records will not be released at this time.
Lord Dubs (Lab)
My Lords, that is a very disappointing Answer and seems to me part of the cover up that has gone on since 1964. Does the Minister agree that the conviction of Stephen Ward is probably one of the most significant miscarriages of justice in modern British history and, while the establishment got its scalp, justice was not done? Can we at least have released the papers that are available because it is very likely that they would exonerate Stephen Ward and put right this enormous miscarriage of justice.
Lord Ahmad of Wimbledon
My Lords, as I am sure the noble Lord is aware, on 2 December 2013 the human rights barrister Geoffrey Robertson QC submitted a review of this case to the Criminal Cases Review Commission, which is, of course, an independent public body set up in March 1997 by the Criminal Appeal Act. Its purpose is to review wrongful convictions. It is currently reviewing the case and it would be inappropriate for me to comment further.
Lord Thomas of Gresford (LD)
My Lords, the trial was fully reported in lascivious detail by the Times at the time in July and August 1963 with full-page and verbatim accounts of the cross-examination and the summing up. Accordingly, I see no reason why such papers as relate to the trial should not be released. Geoffrey Robertson said that Lord Parker, the then Lord Chief Justice—not the trial judge—had suppressed a transcript of the trial. Is that right? If so, under what power did he do so?
Lord Ahmad of Wimbledon
My Lords, I was not around in 1964 to read the Times but I shall certainly look it up in the archives. Turning to the specific question, the issue remains that full transcripts are not automatically created and certainly, as I said in my earlier Answer, that is the case here. Six files are held by the National Archives relating to the Stephen Ward trial; five of these are open to the public, so there is partial availability. One file is closed. The closed file does not contain a full transcript of the hearing. However, it contains partial records of some elements of the hearing, including evidence given by individuals from the box. These records contain sensitive information about living individuals and also unsubstantiated allegations and it would be inappropriate to release those records at this time.
Lord Hughes of Woodside (Lab)
My Lords, I wonder if the Minister can help us. Can he tell us what the sensitive information is?
Lord Ahmad of Wimbledon
Unfortunately, I cannot. As I said, it is not available publicly. People may speculate but I think that I have been clear.
Baroness Gardner of Parkes (Con)
My Lords, is the Minister aware that we have original copies of the Times here, going back to the 18th century? I looked them up for the founding of Sydney University, and they are all available. Perhaps the Minister can suggest that the noble Lord, Lord Dubs, looks at those copies of the Times to which my noble friend has just referred?
Lord Ahmad of Wimbledon
I am sure that the noble Lord has heard that advice. I am also advised that my noble friend Lord Lloyd-Webber has a musical, as noble Lords will know, which has also been recommended as being well worth going to see.
Lord Morgan (Lab)
My Lords, is not the real problem in this case the policy of concealment that is repeatedly conducted by successive British Governments and key civil servants? Is not an American sociologist right in saying that the reason for this country being so badly governed is the curse of secrecy?
Lord Ahmad of Wimbledon
My Lords, the Americans are our friends and we listen attentively to their advice. However, I believe that we make the best decisions here in the light of our own justice system. As I have already said, the information which is being withheld is being so withheld to protect those who are still living. It is entirely appropriate that we protect their sensitivities.
Lord McNally (LD)
My Lords, will the Minister assure the House that sensitive files kept by the National Archives are not destroyed without Parliament being informed and having a full discussion about whether it is relevant to do so?
Lord Ahmad of Wimbledon
My noble friend of course speaks with great expertise as a former Minister responsible for this area. He is absolutely correct in what he has just said.
Lord Richard (Lab)
My Lords, I understand what the noble Lord is saying about files in the public archives, but for the life of me I do not understand why, if evidence was given at the trial, that evidence should not be made public. It was made public in the sense that, at one stage, it was given in public and people could hear it in public. What on earth is the justification now for not producing it?
Lord Ahmad of Wimbledon
While the noble Lord makes the point that this evidence has been heard in an open court, it does not necessarily follow that all relevant transcripts are released. As I have already indicated, and will now repeat, there are certain sensitivities around what was revealed. Indeed, as the noble Lord will know, many people who gave witness testaments at the following Denning inquiry did so on the assurance that their records would be protected.
Lord Lexden (Con)
My Lords, could special arrangements be made for our colleague the noble Lord, Lord Hennessy of Nympsfield, to have special access to the one file which remains closed?
Lord Ahmad of Wimbledon
I have great respect for the noble Lord, Lord Hennessy. If certain records are held for another 100 years or so, may God grant him a long life.
Lord Harris of Haringey (Lab)
I do not think that the Minister has really answered my noble friend Lord Richard’s question. We are talking about evidence that was given in public, and the Government—the archives—now hold material relating to that, possibly transcripts of it. For some reason, a decision has been taken that, because of sensitivity, these cannot now be rereleased to the public. What are the criteria for deciding why something which is already in the public domain should be suppressed in the future?
Lord Ahmad of Wimbledon
My Lords, the Government have considered the published guidance. Indeed, the Information Commissioner’s Office has also given guidance that the disclosure of any personal data still will breach the data protection principles, even after that has been disclosed in an open court. Having considered this guidance and the relevant information, the Government have decided—I have made that quite clear—not to release the partial records of witness evidence at this time.
Credit Unions
(10 years, 10 months ago)
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Lord Kennedy of Southwark
To ask Her Majesty’s Government what action they are taking to allow civil servants to join and save with a credit union using payroll deduction.
Lord Wallace of Saltaire (LD)
My Lords, the Government support the work of the credit union sector and are investing up to £38 million in participating credit unions, to expand their service while reducing their delivery costs, by April 2015. The Government will not require departments to offer a facility for payroll deductions for their Civil Service workforce where these do not already exist. It will be for each department to consider the costs and benefits of offering such a facility.
Lord Kennedy of Southwark (Lab)
My Lords, your Lordships’ House and the other place have given the Government a good example by setting up this facility a few weeks ago. Would the Minister meet with representatives of the credit union movement and me to explore how this could be rolled out across government? Also, what words does he have to encourage the private sector to offer such services to its staff as well?
Lord Wallace of Saltaire
My Lords, I have just read that the noble Lord, Lord Freud, and Mr Iain Duncan Smith have joined the London Mutual Credit Union. It is open to all Members and the staff of both Houses to join that union. Part of the problem, as the noble Lord well knows, is that most credit unions are locally based and for other departments—such as the Home Office or DWP, with employees scattered all the way across the country—the cost of joining employees into a very large number of credit unions is rather complicated.
Lord Deben (Con)
My Lords, I wonder whether the Minister would accept that this Government are very much in favour of nudging. How much nudging is going on to get departments to take up this very big issue? The credit union movement is well worth supporting; it is supported on every side. I do not believe that it is helpful just to say that departments can make up their own minds. I hope that we can have some nudging.
Lord Wallace of Saltaire
My Lords, there is a lot of nudging going on but, as the noble Lord will know, there are employee-based contributions to credit unions and employer-provided contributions to credit unions. The Government are aware that it is not without cost to run an employer-based set of contributions, particularly, again, if you are trying to roll it out across the entire country, in which there are some 340 locally based credit unions.
Lord McFall of Alcluith (Lab)
My Lords, it seems that there is a need for more diversity in financial services. Would it not be a good example if the House were to send out a message that we are leading the way on this? The common bond is government employees, so that should be easy. In terms of pursuing this enthusiastically, could the Minister ensure that a cost-benefit analysis is undertaken and that it is placed in the Library, so that Members can see it and can have a part in ensuring that we push for a credit union and be an example to the rest of the country?
Lord Wallace of Saltaire
My Lords, I will take that back and see what we can do about a cost-benefit analysis. I should mention that, apart from the Houses of Parliament, the other department of government that already has an employer-based credit union arrangement in place is the National Offender Management Service. Members will consider whether they think that is a good parallel to our work or not.
Lord Cormack (Con)
My Lords, while I am entirely in favour of the “nudging” to which my noble friend Lord Deben referred, what we really want is explicit, enthusiastic public encouragement by government Ministers of this very important movement.
Lord Wallace of Saltaire
My Lords, that is exactly the purpose of the credit union expansion plan.
Baroness Royall of Blaisdon (Lab)
My Lords, I am very proud to be associated with the scheme that extends also to members of the National Offender Management Service, as I think all Members of this House will be and should be. My noble friend made an important suggestion, namely that arrangements should be made for him, the Minister and somebody from the credit union to have access to somebody in each department to see how this could be pursued further. I would be grateful if the Minister could respond to that point.
Lord Wallace of Saltaire
I will take that back. My briefing says that this issue is not without cost in terms of payroll arrangements, but we will consider it and see what can be done.
Lord Tyler (LD)
My Lords, following the comments of my noble friend Lord Deben, can we at least expect a bit of joined-up government in terms of nudging different departments? If the difficulty is not one of principle but simply one of practicality, surely if one department can encourage this, others can too.
Lord Wallace of Saltaire
My Lords, I think that we are about to trespass on the next debate. The Cabinet Office nudges other departments; whether it can direct them is a question on which the noble Lord, Lord Hennessy, will no doubt touch in a few minutes.
Lord Elystan-Morgan (CB)
The Minister will be well aware of the popularity of credit unions in Australia, New Zealand, Canada and particularly the Republic of Ireland, where I think the figure of support is of the order of 50%. Am I right in thinking that the equivalent figure for the United Kingdom is somewhere between 1% and 1.5%?
Lord Wallace of Saltaire
My Lords, I have 2% in my brief, but that is still a very small figure. Given the reduction in bank services in a number of areas in this country, this is an issue that we should all encourage. Noble Lords, including the noble Lord, Lord Kennedy, will remember the most reverend Primate the Archbishop of Canterbury talking about the Church of England becoming more extensively involved in the credit union movement.
Lord Clarke of Hampstead (Lab)
My Lords, the noble Lord, Lord Cormack, asked for enthusiasm from the Government in this regard. Perhaps they could start by the Minister saying to his noble friend who represents the Department for Education, “Let’s have a go at getting schools interested in credit unions”, as the St Albans credit union has done. That body has had great success in getting youngsters into the habit of saving.
Lord Wallace of Saltaire
My Lords, that is another very useful suggestion, which I shall also take back.
Schools: Independent Schools
(10 years, 10 months ago)
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Lord Lexden
To ask Her Majesty’s Government what assessment they have made of the level of public support for an open access scheme to independent schools.
The Parliamentary Under-Secretary of State for Schools (Lord Nash) (Con)
My Lords, we have made no assessment of public support for the open access scheme. We want all pupils, regardless of the type of school they attend or their background, to receive a high-quality education. We are delighted that the independent sector is so willing to engage with the state sector, as it does on a number of fronts such as independent state school partnerships and bursaryships, but we want to spend taxpayers’ money in the state school sector. With that money, through our education reforms, we are transforming the state school system to ensure that every pupil has the opportunity they deserve.
Lord Lexden (Con)
I thank my noble friend and, in doing so, declare my interest as president of the Independent Schools Association and of the Council for Independent Education. Does my noble friend not agree that wider access to independent schools could make a powerful contribution to the greater social mobility that we all want? Has he noted that within the independent sector itself, where more than a third of families now pay reduced fees, among heads and teachers there is considerable enthusiasm for more open access, which need involve no increase in public spending? In 1940, Churchill said that the advantages of the public schools should be extended on a far broader basis. Is it not time that we got on with it?
Lord Nash
My Lords, I know that my noble friend is passionate about social mobility through education and I look forward to the Independent State Schools Partnerships conference next Monday, at which we are both speaking—a conference designed to promote partnerships between independent and state schools. As he said, the independent sector has a long history of increasing social mobility through bursaryships, scholarships and collaboration. In 2013, it provided more than £300 million worth of assistance, benefiting 40,000 children, and we absolutely applaud this. However, our priority is to invest our resources in making sure that all state schools provide an excellent education for their pupils, which in the end will be the greatest means of achieving much higher levels of social mobility, which I know all noble Lords wish to see. Our reforms are particularly focused on poorer children through, for instance, our pupil premium and Ofsted’s focus on the progress that pupil premium pupils make.
Baroness Jones of Whitchurch (Lab)
My Lords, does the Minister agree with Sir Michael Wilshaw that private schools should be doing much more to collaborate with, and support, the state school sector, rather than, as he described it, being guilty of just giving the “crumbs off their tables”?
Baroness Humphreys (LD)
My Lords, I am pleased to hear the Minister agree that we are all anxious to improve the social mobility of pupils. Indeed, the open access scheme purports to do that, but it is a heavily means-tested scheme, which relies on taking the very brightest pupils and the funding that comes with them into the private sector. Does the Minister not agree that this could be a scheme that is tantamount to providing public funding for the independent sector?
Lord Nash
If one had such a scheme, I think there might be ways of avoiding that. I agree entirely that we should be increasing social mobility for all pupils. Although the independent sector does a fantastic job, according to the Sutton Trust, which promotes the open access scheme, its 7% of pupils get 50% of the top jobs. Pupils from grammar schools, which educate 5% of the population, get more than 20% of the top jobs. We are focused on ensuring that the 90% of children who go to other schools, who currently get only somewhere between 25% and 30% of those jobs, get a much higher share of that take in the future.
Lord Howarth of Newport (Lab)
Does the noble Lord agree that, if the parents of the 7% of the nation’s children who attend independent schools were to apply their zeal for educational excellence to the maintained sector, we would see a vast improvement in social cohesion and educational performance?
Lord Forsyth of Drumlean (Con)
Will my noble friend explain why, if the Government are in favour of the money following the pupil and in favour of extending choice, they are not in favour of getting the best value for money and of ensuring that people get the best possible education by making resources available to those who cannot afford to go to independent schools so that they can do so?
Lord Nash
There are plenty of schemes, such as the Buttle UK springboard, which encourage pupils to go to independent schools. Even if we got a third of independent school places occupied by poorer pupils, we would still be dealing with only 2% of the population. We believe that our money is better spent trying to improve the educational chances of the majority of children.
Lord Campbell-Savours (Lab)
My Lords, where do the figures that the noble Lord referred to come from? On what basis was the valuation made, and what was it of?
Lord Dykes (LD)
Does my noble friend agree that, if children from poorer families go to rather grand private schools, they can sometimes have a rather rough time when they first arrive and so on? What measures can the Government encourage those schools to take to make it socially easier for them to integrate?
Lord Nash
I was a trustee of Eastside Young Leaders Academy, which focuses on improving the life chances of black boys in the East End. It has already sent 21 pupils to private schools under full bursaryships. One of our concerns was integration and we spent a lot of time working on that. I know that schools that take pupils from diverse backgrounds work very hard to make sure that the transition works.
Lord Cormack (Con)
My Lords, did not the previous Conservative Government introduce the assisted places scheme and would it not be a very positive thing to reintroduce something similar?
Lord Nash
The assisted places scheme provided valuable support for pupils, who benefited from a place at an independent school, which their parents might not otherwise have been able to afford. The scheme was abolished by the Labour Party in 1998 so that that money could be spent in the state sector. We agree with that sentiment. Our policy is that resources should be targeted at improving state funding for all pupils rather than supporting a minority.
Lord Grocott (Lab)
It is worth reminding ourselves that the abolition of the assisted places scheme so that its money could be used in providing free nursery school education was one of five pledges in the 1997 manifesto of the Labour Party—a small number of pledges—and that partly as a result of those pledges, the Labour Party won the general election with a majority of nearly 200.
Central African Republic
(10 years, 10 months ago)
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Baroness Berridge
To ask Her Majesty’s Government what is their response to the failure of the transition government and the growing crisis in the Central African Republic.
The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi) (Con)
My Lords, our immediate priorities are to stop the appalling violence in the Central African Republic, to protect civilians and to ensure humanitarian access. The UK worked to secure UN Resolution 2127 in December. We are now working closely with France and our international partners to support the African Union force and the UN mission. In addition, we have allocated £15 million for humanitarian assistance and provided three airlifts for the French military.
Baroness Berridge (Con)
I thank my noble friend for her comprehensive Answer. Just this week, the Office of the High Commissioner for Human Rights team confirmed that certain ex-Seleka perpetrators of human rights abuses are Chadian nationals, even wearing the armbands of the Chadian FOMAC peacekeepers, and credible testimonies were found of collusion between Chadian FOMAC peacekeeping and ex-Seleka forces. The people of the Central African Republic therefore have good reason to view Chadian international peacekeepers as a threat. Can the Minister confirm that it is Her Majesty’s Government’s position that any peacekeeping force, whether under a UN, AU or MISCA mandate, should not contain troops from Chad?
Baroness Warsi
The current African Union MISCA force has contributions from Burundi, Cameroon, the Republic of the Congo, Guinea and Chad. I take on board the concerns that my noble friend has raised, and we of course keep under review the lead in these matters. However, it has been felt that at this stage the African Union lead is a right way forward.
Baroness Kinnock of Holyhead (Lab)
My Lords, does the Minister agree that a key driver of the conflict in the Central African Republic is, and has been, the wealth of mineral resources to be found there, including diamonds, gold, uranium, copper and petroleum products? Will the Minister tell us whether discussions are taking place about how to ensure that there is adequate oversight of the management of the extraction and trade of minerals so that the people can at last enjoy the right to benefit from that lucrative industry?
Baroness Warsi
The noble Baroness is right; that has been an underlying factor to much of the violence that we have seen in the country. I am not aware of what specific conversations have taken place in relation to oversight of the industry to which she referred. I will check and certainly write to her.
Lord Chidgey (LD)
My Lords, Gérard Araud, the French Ambassador to the UN, has confirmed that French and AU forces are confronting a near-impossible situation in the CAR. The BBC in Bangui this morning reported that John Ging of the UN is calling for,
“a huge international effort to tackle this situation”.
Does my noble friend therefore accept that the deployment by the United States of two C-17 aircraft to fly in 800 Rwandan troops over the next month will still be woefully inadequate? Will the Government make good the C-17 logistical shortfall to accelerate the delivery and scale of the peacekeeping force and to reduce the rising risk of genocide, which we all fear?
Baroness Warsi
My noble friend is right; there is an absolutely appalling situation on the ground. The violence has been seen by many of us on our TV screens as the news reports have been coming out. We currently have about 3,500 troops deployed there as part of the African Union force and I understand that a total of about 6,000 will be deployed—there are about 1,600 French troops deployed. We have responded to requests from the French for three airlifts, which took place in December. We will of course respond to any further requests for support. My noble friend may be aware that there is a European Foreign Affairs Council meeting on Monday, and further options may well be discussed there.
Lord Alton of Liverpool (CB)
My Lords, can the Minister reflect on the role that outside insurgents are playing in the Central African Republic? Can she tell us what the Security Council is doing to ensure that the western borders of the republic are secured, so that organisations such as Boko Haram are not able to influence events inside the CAR, where jihadists are already present?
Baroness Warsi
The information that I have from my brief—although I stand to be corrected by the noble Lord, who is greatly experienced in the area—is that the situation has at this stage been contained within the borders of the Central African Republic. There are some concerns about external elements and a potential religious element to this developing, and we are of course keeping an eye on that.
The Archbishop of York
My Lords, does the Minister agree that the scale of the crisis is very large? I am grateful for what the Government are doing in response to this particular crisis, but will they use their offices in the European Union to make sure that all nations take part in dealing with this rather appalling situation? I am not confident that the African Union actually has the capacity to deal with the situation, much as it is on the ground. I hope the Minister can give us some comfort by confirming that the Government are talking to our European allies to ensure that whatever is needed is provided. Otherwise, we will end up with genocide and pictures on our television screens that will make all our stomachs churn day by day.
Baroness Warsi
I take on board what the most reverend Primate has said. Going back to the European Union and the Foreign Affairs Council meeting on Monday, an options paper has been circulated which is currently under discussion. A number of options have been presented in that paper. At this stage, however, we are going back to the United Nations Security Council Resolution 2127 from December, which agreed that it was appropriate for the African Union to lead on this and for the French troops to carry on with their deployment.
Lord McConnell of Glenscorrodale (Lab)
My Lords, whatever action is taken right now to deal with this horrific emergency, there will be a need for action afterwards, following any stabilisation, both to build the capacity of the state in the Central African Republic and to try to promote reconciliation between the Christian and Muslim communities, which at the moment are tearing each other apart. Can the Conflict Pool or the Building Stability Overseas Strategy of the UK Government make a contribution to either that process of state building or that process of reconciliation, which will be so important on the ground in the aftermath of the current crisis?
Baroness Warsi
I completely agree with the noble Lord; it may well be one of the things we will be considering. The situation that we are facing at the moment means that we have to deal with the immediate violence. The whole point of having the transitional appointments of the president and prime minister, both of whom resigned only last week, was to enable a process to take place in which there would be elections within 18 months of April last year. Unfortunately, the violence has not stopped under the transitional government. There are expected to be further elections for a further transitional government within the next 14 days and then further elections will take place with a process behind them for political discussions. It may well be that at that stage, it will be right for the UK to be involved in the stabilisation work.
Business of the House
(10 years, 10 months ago)
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Lord Hill of Oareford
That the debates on the motions in the names of Lord Hennessy of Nympsfield and Baroness Lane-Fox of Soho set down for today shall each be limited to 2½ hours.
Business of the House
(10 years, 10 months ago)
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Lord Hill of Oareford
That the Question for Short Debate in the name of Baroness Ford set down for Wednesday 22 January shall be limited to one hour.
House Committee
(10 years, 10 months ago)
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The Chairman of Committees
That the 1st Report from the Select Committee (Sanctions for Breaches of the Code of Conduct) (HL Paper 91) be agreed to.
The Chairman of Committees (Lord Sewel)
My Lords, from time to time, the House believes it is right and proper to impose sanctions on Peers who have been found to be in breach of the Code of Conduct. That is always a difficult and unpleasant business. There are currently only two sanctions available to the House. Peers found in breach of the Code of Conduct can be required to apologise. The other sanction available to the House is that of suspension. The House does not have the power to expel and, without primary legislation, it cannot give itself that power.
The impact of suspension is severely constrained by the fact that a suspension expires at the end of the Parliament in which it is imposed. This can give rise to major unfairnesses. Behaviour which the House feels warrants a lengthy suspension may be subject to a relatively short period of a few weeks if it is imposed towards the end of a Parliament. The situation could well arise where behaviour that was a serious breach of the Code of Conduct resulted in an effective suspension for a shorter time than a much less serious breach of the Code of Conduct, merely due to the stage in the Parliament when the sanction was imposed.
The House Committee was of the view that such an outcome would be unfair. The House Committee was also of the view that it would be helpful to have some alternative sanctions which fall short of full suspension but are greater than an apology. The remedy proposed by the House Committee is the introduction of two new sanctions. The first sanction would prevent Peers from claiming any financial support by way of expenses or allowances from the House. The second sanction would prevent Peers from using the facilities of the House. Neither of these sanctions would prevent the Peer from taking part in the proceedings of the House in the Chamber or its committees. These sanctions could be used in addition to suspension from the House or as an alternative to suspension. Unlike suspension, the sanctions could be applied for a period extending beyond the end of a Parliament. They would be applied for a fixed period and therefore are not equivalent to expulsion. They would not be retrospective. The Clerk of the Parliament’s advice is that these sanctions are compatible with both the Letters Patent and the Writ of Summons.
As to the process, it would be for the Sub-Committee on Lords’ Conduct and the Committee for Privileges and Conduct to recommend the appropriate sanctions, and it would be for the House as a whole to agree them. The two committees consider all cases on an individual basis and are able to take into account the individual circumstances of Peers in recommending proportional sanctions. I beg to move.
Lord Scott of Foscote (CB)
My Lords, I rise not to criticise in any way the intent behind the proposed new sanctions, but to question a little the scope of the sanction referred to under paragraph 1(b):
“denial of access for a specified period to the facilities in the House”.
Paragraph 2 sets out what might on one footing be examples of the facilities access to which is to be denied and on the other footing might be thought to be intended to be definitive of the facilities that are to be denied. A number of the facilities of the House are not mentioned in paragraph 2—the most obvious of which is use of the lavatories of the House. There are other facilities, such as hanging up one’s hat and coat downstairs and things like that.
If paragraph 2 is intended to be definitive, those facilities would still be available. If all facilities are to be denied, those facilities would not be available. If paragraph 2 is intended to be definitive, what is the scope of the proposal that dining and banqueting facilities be denied? Does dining include luncheon or tea? Does it include any use of the House Dining Room? These may seem nit-picking criticisms, but it is important if new sanctions are to be introduced that their scope should be clear and understood and not capable of ambiguity.
Lord Richard (Lab)
I have to confess to the House that I do not like this proposal. It is basically expulsion, but not named as such. What is the person who is the object of these sanctions supposed to do? It is said that he is entitled to remain a Member of the House and is entitled to come here, but will be denied all the facilities which are deemed necessary in the case of every other Member of the House to do that actual job. If we are going to go down the road of saying that we should expel Members from this House, we should do that openly and not, with respect, by a back-door sidle. We are talking in effect of expelling people from this House but are not prepared to name it as that.
Lord Elton (Con)
I would add a gloss to what the noble Lord has just said. As I understand it, we do not have the power to suspend the effect of a Writ of Summons to the House. That would open a whole bag of snakes.
The Chairman of Committees
My Lords, paragraph 2 of the report is, in fact, a definitive list. The dining facilities and banqueting facilities are, in effect, all the facilities that are under the control of the Refreshment Committee. It is not a series of examples; it is a definitive list.
It is not expulsion because it is for a defined period of time, a limited period of time, so the Member can resume full activity and have full access to the financial support and facilities of the House. We do not have the power to expel. That would require us to receive it through primary legislation and the advice from the Clerk of the Parliaments is that these sanctions are totally compatible with the Writ of Summons and the Letters Patent.
The Future of the Civil Service
(10 years, 10 months ago)
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Lord Hennessy of Nympsfield
That this House takes note of the future of the Civil Service.
Lord Hennessy of Nympsfield (CB)
My Lords, this may strike you as a genuinely perverse opening remark, but I truly regret the need for this morning’s debate. Why is this? It is because I wish we lived in a well managed state, praised for the quality and delivery of its public services, admired for its ability to complete grand projects on time and within budget, overseen by a Whitehall where—the odd emotional spasm apart—the crucial relationships between Ministers and officials were always and everywhere in good repair. I fear that these tests are not universally met.
However, there is no need to succumb to excessive pessimism nor to unleash a relentless cataract of anxiety or criticism. There is still a lustrous quality to our great tradition of non-politically partisan public service, transferable from one Government to the next along with its perpetual duty of speaking truth unto power; of telling Ministers what they need to know rather than what they wish to hear. As a country, we also possess a considerable, usable past in the history of our conduct of central government. Public service has always attracted capable and well motivated people and it still does. However, each generation has a duty to revisit the traditional verities afresh; to test old models and established practices against new needs and, quite rightly, ever more stretching delivery requirements, while facing up to examples where performance has not risen to the level of events.
It is a very long time—48 years—since a Government commissioned a wide-lens review of the Civil Service when Harold Wilson and his Chancellor, Jim Callaghan, set up the Fulton inquiry in 1966. The Fulton story is not an entirely happy one but it is not for reprising this morning, save to note a serious flaw in its remit when Mr Wilson steered the committee away from the crucial, central question of relationships between Ministers and civil servants. It is this terrain upon which I would like to descend first in today’s debate.
These relationships, which make up what I would call the governing marriage between temporary Ministers and permanent officials, depend upon confident Secretaries of State and confident civil servants in candid symbiosis, raising the quality of each others’ game. The relationship rests on a three-way deal. The deal is the product of two key enquiries—the Gladstone-commissioned Northcote-Trevelyan report of 1854 and the Lloyd George-commissioned Haldane report of 1918—plus a good deal of practical, everyday experience of working our constitution by Whitehall generations past. Deal one is non-political civil servants speaking truth unto power in private. Deal two is reciprocal: in return for such candour, Secretaries of State carry the can in public, even if things have gone wrong in places over which Ministers did not have direct control. Deal three is a valuable, high level of continuity within the state thanks to the career Civil Service transferring between Administrations without a clean sweep of top posts, as happens in the United States.
The triple deal has been under stress for a good while now due to a number of largely post-Fulton developments. The first has been the arrival of special advisers in some quantity. Although a valuable and vitalising factor in many ways, this has complicated the old-style governing marriage and, in some unfortunate instances, has injected poison into it. The second is the truly welcome development of departments shadowing House of Commons Select Committees since 1979, which has brought senior civil servants into a public and parliamentary limelight experienced previously only by accounting officers appearing before the Public Accounts Committee. This has altered for ever the old calculus of official accountability to Parliament.
As an outside observer, I am struck by the scratchiness in some, but by no means all, current Whitehall departments between the partners to the governing marriage to the point where there are suggestions that elements of the old deals are but Victorian relics that clutter up the path to more effective and efficient government. It is genuinely ironic that, with the ink scarcely dry on the sections of the Constitutional Reform and Governance Act 2010 enshrining at last the 1854 Northcote-Trevelyan tenets, one should hear whispers in Whitehall that if less dramatic reform measures fail, the 2010 Act should be amended to allow Secretaries of State to have the predominant say in who will be their Permanent Secretaries, a process known in the shorthand as ministerial choice.
Place the question of ministerial choice alongside the new development of extended ministerial offices—EMOs—a fusion of Whitehall private offices with a variant of the French Cabinet system announced last summer in the Cabinet Office document, Civil Service Reform Plan: One Year On Report, and you have what some would see as a combined move towards a real, if unacknowledged, politicisation of the senior Civil Service. Is this a creeping politicisation that dare not speak its name? Certainly, it is the coming of the EMO plus the question of ministerial choice that has proved to be the weathermaker within the wider debate about the coalition’s Civil Service Reform Plan.
I was fortunate to have an on-the-record interview with the Prime Minister last October about, among other things, the new extended ministerial offices and greater ministerial choice. Mr Cameron sought to reassure on both points. I asked him first if he sensed a whiff of danger of the politicisation of the Civil Service through the extended private office. “I don’t”, he said, continuing:
“I think that one of the things that makes the civil service great and makes civil servants proud to be civil servants is that they are not political … I think one of the most exciting things for a civil servant is the transition from one government to another; it’s a great test of professional people”.
The Prime Minister went on to explain that EMOs would allow Secretaries of State to have more back-up with, and I am quoting his words,
“some experts, a bit of implementation, some special advisers. That’s quite like what the Prime Minister has. It’s quite like what some Ministers have already put in place. I think it’s growing organically. I’m helping giving it a nudge along”—
there is the word “nudge” again. Mr Cameron also sought to reassure on ministerial choice in Permanent Secretary appointments. He believed that the process,
“has been constrained, I think, rather excessively in recent years so that there is one name and the Prime Minister either has to say ‘yes’ or ‘no’ … I don’t think we should have ended up in that position. I think it would have been better for one or two people to get over the line, as it were. Then the Prime Minister, in conversation with the Cabinet Secretary and perhaps the Secretary of State, to make the decision. I do not think that that’s politicisation. I think that’s just the ability of a government to make sure it’s got the right people in place to carry out the government’s policy”.
The Cabinet Office Minister with day-to-day responsibility for the Civil Service, Francis Maude, has given me similar reassurances that the coalition’s intention is not to politicise. Yet for all these reassurances, the Civil Service Commission, the instrument Mr Gladstone created to nurture and protect the Northcote-Trevelyan reforms, plainly remains concerned. The chairman of the commission, the former Home Office Permanent Secretary, Sir David Normington, has been engaged in what one might call a rolling conversation on these matters with Francis Maude.
So, where are we now? Mr Maude paused the question of more ministerial choice last year. The pause is due to end soon. On Monday, the Civil Service Commission launched a public consultation on its recruitment principles. The commission noted that the Government proposed in its 2012 Civil Service Reform Plan that Secretaries of State should be able to choose from a list of appointable candidates as assessed by an independent panel. In last year’s document, Civil Service Reform Plan: One Year On Report, the Government added a new proposal that it should be the Prime Minister, rather than the individual Secretary of State, who possessed the final choice.
In Monday’s consultation document, the Civil Service Commission declares:
“In our view—and that of our predecessor Commissions—merit is best assessed by a process which has independent oversight, is objective and evidence-based. The risk in the Government’s proposal is that it could lead to a Secretary of State substituting his or her personal view of merit for the outcome of an independent, objective assessment process. We doubt whether that is compatible with the legal requirement and it risks candidates being seen to be appointed on the basis of personal or political patronage”.
Those are strong words from the Civil Service Commission. It is striving to clarify and refine the appointments process while retaining the essential Northcote-Trevelyan principles. To this end, it is consulting on two future possibilities. The first would be to go with the new guidance on recruitment principles that the commission published a year ago in response to the Government’s Civil Service Reform Plan. This included, and these are the commission’s words,
“for the first time a provision enabling a panel to seek a Secretary of State’s view on candidates of equal merit after final interviews and before it reached a final decision on the recommended candidate”.
The second possibility canvassed in the commission’s consultative document is, and I am quoting,
“Where a panel assesses two or more candidates to be of equivalent merit … it may put those candidates to the Prime Minister for decision. He should then make the final decision, which must still be made on merit, in consultation with the Secretary of State and Head of the Civil Service”.
I have lingered on this terrain because it spans a first order question. I accept that the Prime Minister and Mr Maude do not intend to turn Whitehall into Washington, but I share the anxieties of the Civil Service Commission. To abandon the Northcote-Trevelyan principles would be a national own goal of considerable proportions.
The real test will come not when the first EMOs are set up this year, nor perhaps even when the next batch of Permanent Secretary appointments are made, though Parliament and its Select Committees will need to keep a careful eye on both. On the creation of EMOs, Civil Service Commission approval will be needed for outside recruits brought in for their specialist knowledge at Whitehall director level or above—a welcome safeguard. The true test will bite when a new Government of a different political colour takes office.
If greater ministerial choice of Permanent Secretaries has happened and several EMOs are in place—especially if they have morphed into central directorates, essentially departments within departments—might not the new Secretaries of State feel that they are inheriting a senior Civil Service that has, to quite a high degree, been politicised? True, these new Ministers will be able to create their own EMOs afresh, but is there not a risk of a future Government saying no doubt, with regret, we must replace the senior career officials too with bespoke civil servants of our own choice? Should that happen, the Northcote-Trevelyan principles would effectively have been abandoned and our Civil Service will have passed through a one-way valve.
It is my belief that our Civil Service does not belong to any single party or any single Government—rather, it is a national asset of central importance to Parliament and all our people. If its essential DNA is to be changed, it must be done so openly and on the basis of as high a level of consensus as possible. To achieve this, much care and forethought is required, which brings me to another question that has exercised Parliament over the past year: the need for a very substantial inquiry into the overall condition of the Civil Service as a central capability for the nation in the 21st century.
When I talk to younger officials, their eyes are not just on Northcote-Trevelyan—though they are—they are acutely sensitive to a whole range of pressing concerns that are already in play or may become so during their career lifetime. Such matters embrace the very configuration of the United Kingdom, with the possibility of independence for Scotland, of a UK intact or not, facing life in a cold economic climate outside the European Union in the 2020s—the size and scope of the state, including levels of public spending, the scale of our welfare state and the continuing affordability of our top flight defence capabilities. In my judgment, these factors powerfully reinforce the case for a broader gauge inquiry into the Civil Service.
Last week, the Government replied to the fine report Truth to Power, produced the Commons Public Administration Select Committee, led by Bernard Jenkin. I should declare that I gave evidence to PASC. To my regret, the coalition said that it does not accept the committee’s assessment that the evidence for a,
“comprehensive strategic review of the nature, role and purpose of the Civil Service is overwhelming”.
In my judgment, this reply is as misguided as it is disappointing. Last November, no fewer than 17 other Select Committee chairs, with no recorded dissenters, backed PASC’s call for a joint parliamentary commission on the Civil Service in the Liaison Committee’s report entitled Civil Service: Lacking Capacity. In our interview last October, the Prime Minister did not, however, close his mind to such a possibility when I raised it with him. He said:
“There’s nothing … to stop Parliament, if it wanted to, to set up its own Commission on Civil Service Reform, and it has now, it’s got a committee”—
he is referring to PASC—
“they’ve had an inquiry. They can go on having inquiries if they want. He”—
I think he means Bernard Jenkin—
“was asking me do I want to set up a Royal Commission. No I don’t at the moment. Maybe it would be a good idea in the future”.
I profoundly hope that the Prime Minister will reconsider. David Cameron has a shining opportunity to stimulate a modern Northcote-Trevelyan/Haldane equivalent, and something a bit more, either by encouraging a parliamentary commission or creating an inquiry on which non-parliamentarians could sit. It need not stymie, as some in the Cabinet argue, the Civil Service reforms that are under way—far from it. The Civil Service does not, and I am sure would not, sag back with relief if such an inquiry was established.
I am not a “golden ager” or a seeker after what the much missed Lord Dahrendorf once called “a better yesterday”—I think he was rather unkindly referring to the SDP. Can we see in the hand that history has dealt us—that extraordinary mixture of people and processes and that jumble of departments overseen by a centre which some say is too powerful and some say too weak—the ingredients of a highly functional, self-regenerating, top-flight system of government? We need the inquiry and we need it soon. David Cameron has the chance to do a Gladstone and a Lloyd George for the 21st century. I hope he seizes it.
Lord Forsyth of Drumlean (Con)
My Lords, I congratulate the noble Lord, Lord Hennessy, on bringing this important debate to the House. It seems these days in this place, that the more important the subject—whether it is the balkanisation of Britain, our membership of the European Union or the future of the Civil Service—the shorter the time that we are allowed to make speeches. I have only three minutes so I will content myself with saying that I agree with everything that the noble Lord said.
However, I would add one bit of emphasis, which is that I think that the mischief is not so much ministerial choice but having candidates who have come from outwith the Civil Service system. The key point here is that we must maintain not just the non-political nature of the Civil Service but its independence. It is that that I want to talk about in the context of the Civil Service Code.
I received a Written Answer this week from the noble Lord, Lord Wallace of Saltaire. In my Question, I asked whether the Government,
“intend to ask the head of the Civil Service to report on whether the preparation and publication of Scotland’s Future by Scottish civil servants complied with the Civil Service Code of Conduct”.
The Answer which I received from my noble friend was:
“Questions relating to compliance with the Code of Conduct of the Civil Service in Scotland are dealt with by the Scottish Government in the first instance”.—[Official Report, 13/1/14; col. WA 1.]
However, my complaint was about the Scottish Government. It was raised in debate, and the Minister said it was not a matter for him.
The document I referred to, Scotland’s Future, contains within it one page headed, “Gains from independence—whichever party is elected”, and another headed “Gains from independence—if we are the first government of an independent Scotland”. Included in those “gains” are: the renationalisation of the Royal Mail; the abolition of the bedroom tax; and a reduction in corporation tax. None of those things is within the responsibility of the Scottish Government. This is a manifesto in a document paid for by the taxpayer, written by civil servants and costing £800,000. In common with everybody else in Scotland, I got a leaflet through my letterbox, paid for by the taxpayer, urging me to read the document. There are billboards and advertising hoardings.
We used to have a Civil Service code of conduct which was enforced; it is not being enforced, and it is an absolute dereliction of duty on the part of the head of the Civil Service not to bring this nonsense to an end. It creates a precedent, and the Civil Service operates on precedent. I believe that upholding the Civil Service’s code of conduct is a priority if we are to maintain the integrity of our systems of government. I think that it was a great mistake to separate the roles of head of the Civil Service and the Cabinet Secretary and to diminish both offices in the process. This goes to the heart of what is going on.
When people say that those of us who are concerned about the issues that the noble Lord has raised are out of date and do not really understand how things have changed from Victorian times, Ministers should remember that the monarch acts on their advice and Ministers are advised by civil servants. If we break that link, we will have lost our way and we will slide into chaos and further reinforce the contempt and dismay that we see among the electorate in our country.
Lord McNally (LD)
My Lords, I echo the tribute paid by the noble Lord, Lord Forsyth, to the noble Lord, Lord Hennessy.
In 2010 I returned to Whitehall as the Minister of State for Justice after a gap of some 31 years, having served as a special adviser to the late Lord Callaghan in the Foreign Office and Number 10 from 1974 to 1979. I am often asked what my impressions were of working again with our Civil Service after that 30-year-plus gap.
I was impressed by the high quality of bright young people who still join our Civil Service motivated by a desire to serve the public good. What is more, in the intervening 30 years, our Civil Service has achieved a diversity in race, gender and social background that, although still a work in progress, outstrips anything seen in the upper reaches of the judiciary, for example. I found a service that, far from being resistant to change, was eager to embrace new methods of working and new technologies.
However, we are moving to a relationship where the public sector acts more and more as a commissioner of services, with the private sector as a supplier. To make that work, we need to equip our Civil Service with the skills for that task. That will mean the Civil Service embracing greater transparency, underpinned by freedom of information. It is increasingly going to need the skill sets to manage contracts with the private sector in a way that gives the taxpayer high performance and value for money. It will need a capacity to procure and manage highly complex information-technology programmes.
We will recruit and retain the civil servants for those tasks only if Ministers are willing to defend public servants from the mythologies, prejudices and dogmas of left and right. One of the great reforms of 19th-century liberalism, as was referred to, was the implementing of the Northcote-Trevelyan reforms that cemented into our governance the concept of a Civil Service that is politically neutral and selected on merit. In the search for efficiency and technical competence, we must not lose either the ethos of public service or the political neutrality and selection on merit that have served us so well in the past and are still qualities to be valued in a Civil Service for the 21st century.
Lord Butler of Brockwell (CB)
My Lords, this is a timely debate and I join others in congratulating the noble Lord, Lord Hennessy. I agree with every word that he said and with every word that the noble Lords, Lord Forsyth and Lord McNally, said, except for one point made by the noble Lord, Lord Forsyth. I do not believe that selection on merit should be entirely confined to those already within the Civil Service. We need a more open choice than that and this has been done in the past 20 years.
I agree with the noble Lord, Lord Hennessy, and the other speakers that something is wrong in the current working of our government, and in particular in the relationship between civil servants and politicians. A symptom of that, in my experience, is an unprecedented spate of recrimination against named civil servants, made worse by the fact that much of it has been through unattributable, backstairs briefings.
Another factor, not referred to by previous speakers, is the alarming turnover in the senior ranks of the Civil Service. Every department but one has had a change of Permanent Secretary since 2010: five have had three Permanent Secretaries in that time; and the Department for Transport had no fewer than four Permanent Secretaries between May 2010 and July 2012, which was when the debacle over the west coast main line took place. Paradoxically, the Government’s proposal for five-year fixed-term contracts for Permanent Secretaries would lengthen their tenure, not shorten it.
I support much of the Government’s programme for reform of the Civil Service. The service needs continually to be trained in the skills that today’s complex world requires, and where such skills are deficient they should be brought in from outside, although experience shows that that is both expensive and not always successful. As the chairman of the Public Accounts Committee in another place has said,
“we have to ensure that people with the right skills are trained up within the Civil Service”.
However, like the noble Lord, Lord Hennessy, that is not at the heart of my concern. What worries me is that the “us and them” attitude of some Ministers endangers the relationship of mutual respect and loyalty between politicians and civil servants that has served the country well for 100 years. Before we let that relationship go, we should think very hard about whether there is a better alternative. I agree with the noble Lord, Lord Hennessy, that that is not a matter for just one party or one Government.
I have come to support the recommendation of the Liaison Committee and the Public Administration Select Committee in another place for a parliamentary commission on the Civil Service. It seems extraordinary that the Government should brush aside a recommendation made unanimously by the very senior chairs of all the Select Committees that scrutinise departments.
I am sorry to suggest that the Prime Minister is ignorant of the Standing Orders of Parliament, but the fact is that we would expect a sovereign Parliament to be able to set up such a commission if it wanted to. That, I am advised, is not the case. It cannot do it without the consent of the Government. That may not be right, but it is the present situation and I hope that the Government will think again.
Lord Browne of Madingley (CB)
My Lords, I declare one relevant interest: my position as the Government’s lead independent non-executive board member, a role that provides the context for my brief remarks today.
When the Prime Minister appointed me and 60 other independent non-executive directors, he asked us to make the Government more businesslike and to help equip them with the skills needed to deliver government policy. We have made some progress. The non-executives are providing valuable independent advice and scrutiny and have helped set up the Major Projects Leadership Academy to address one of the critical weaknesses in government. With the support and input of other non-executives, the Government are taking steps to strengthen the functional leadership in the Civil Service, including the appointment of a government head of finance with the equivalent experience of a FTSE-50 finance director.
The institutional and cultural changes driven by non-executives show the great potential for productive co-operation between the public and private sectors, and have played a critical role in equipping the Civil Service for some of the challenges of the 21st century. But there is only so much that independent directors and a reform plan can do: they can make valuable and long-lasting changes within existing structures.
The Civil Service now faces a fundamentally different environment and set of challenges from those for which it perhaps was designed. At some point, incremental reform will no longer be enough. We need to look more fundamentally at how we expect the Civil Service to behave and perform in the 21st century. A comprehensive and independent review of the Civil Service’s structures, processes and lines of accountability is long overdue. So, too, is a thorough review of the roles and responsibilities of Ministers in Parliament when it comes to their relationship with the Civil Service. That review must not distract from the current reform plan. Indeed, it does not need to; it can be part of the plan. It will ensure that we do not to have to do this debate again under the next Administration.
If a review leads to a more flexible, effective and sustainable Civil Service, fit for the modern world, then it would be time well spent. I am sure that noble Lords would agree, though, that if it were just a report for the archive, it would be incredibly damaging.
Baroness Bottomley of Nettlestone (Con)
My Lords, I join those who warmly congratulate the noble Lord on initiating this debate. I am not one who believes in a major commission, except in so far as it would give the noble Lord many opportunities to present evidence which we would all greatly enjoy.
At a time of coalition Government, I do not think that uncharted territory is the time for a fundamental reform. Many of the comments around whether the central role of the Cabinet Secretary as the head of the Civil Service should be split have a lot to do with coalition Government and the fact that we live under severe financial constraint.
I declare my interests as set out in the register, but suffice it to say that, from the experience of running the health service, where we brought in commercial people to help lend their skills to what we were trying to achieve, I have become a very strong believer that there are talented people in the commercial world who have a huge amount to offer government. It is possible to find people who will undertake the work on much reduced income and be committed and add great value to what we are trying to achieve.
My concern is that, even now, the only Permanent Secretary we have who comes from an outside environment is Stephen Lovegrove at DECC, who came from Deutsche Bank to the Shareholder Executive and is now a Permanent Secretary. I do not think that this makes sense. The work that the noble Lord, Lord Browne, has been doing with non-executive advisers on departments—I refuse to call them “directors” because they are not—has shown the calibre of people who are prepared to come to assist in government. I see the noble Lord, Lord Wilson, who I remember said, “We want a permanent Civil Service; we do not want permanent civil servants”. We should question more closely whether there is a resistance in the Civil Service Commission to giving ultimate leadership appointments to individuals who have spent a lot of their life in a different field.
Only today I have published a paper about the leadership of universities. We have Bill Rammell, a former Minister; Martin Bean from Microsoft; Sir David Bell, a former Permanent Secretary; Debbie Swallow from the V&A—they are all now vice-chancellors. It is not that they should necessarily come straight into the top job. When commercial people come in, of course they need to learn and understand the subtlety and values of the Civil Service. It is my sense, however, that we should look carefully at what the resistances are.
The Civil Service was commended by my noble friend Lord McNally for diversity—maybe of gender, orientation, race and ethnicity, but not of occupational background. Every other field of endeavour in this modern, fast-changing world needs different skills, which do not necessarily grow themselves.
There are of course great differences—although I understand the ministerial frustration—but, increasingly, politicians have very little business background. They know about press notices; they do not know about delivery of projects. The implementation of anything means you have to go through winter and spring before you get to the summer of delivery. There are key fundamental principles, and my sense is that both Ministers and civil servants need to look again at this.
Finally, have we looked closely enough at the model of the Greater London Authority and some of the local government models, where service delivery and policy formation is much more closely integrated? Certainly, the much underexamined GLA has in many ways a more interesting balance of people coming through into the executive.
Lord Mendelsohn (Lab)
My Lords, I add my voice to congratulate the noble Lord, Lord Hennessy, on securing this important debate.
In 2005, I was asked to help close down a foundation and ensure that its final sums were spent properly. In agreement with all the trustees, one of the final projects we sponsored was to look at the reform of the Civil Service. We secured the work of the IPPR, and it led to the publication of Whitehall’s Black Box: Accountability and Performance in the Civil Service. During the course of this project, perhaps one of the most disappointing moments was when, during a seminar chaired excellently by the noble Lord, Lord Bichard, there was a strong consensus that progress would not be made because reform lacked political salience, attention and will.
I think there is a great deal of political will and a lot of good ideas. I was encouraged by the commitment made by Francis Maude towards reform, by Sir Bob Kerslake’s work and by the involvement of some excellent private sector leaders, such as Martin Read on IT procurement, but I add my voice to those who say that we should be accelerating the size, scope and pace of change—the excellent work of the noble Lord, Lord Browne—and I strongly support the idea of a commission that has come from the Public Administration Select Committee in the other place.
We have a very talented and able Civil Service, founded on sound principles and ethics. I have always believed that probably the worst sin of the Civil Service has been its recognition of its own quality, making it resistant to change rather than making it the pioneer of adaptability, reform and innovation. That is not to say that it has not done much that is impressive—it is, of course, always exposed to one-way criticism—but we should be willing to support and champion our Civil Service and civil servants to reorganise, change, experiment and, on occasion, fail and be open to learning the lessons of it. In looking at reform, we should be live to the balance between policy and delivery, and perhaps it is not yet in the right place. In the private sector, the focus is clearly on the latter. It does not have to be the best plan, but to succeed it has to be executed well.
The cross-fertilisation of personnel between the private and public sectors should be advanced, and this should include local authorities. One has only to look at the impressive growth and development of Manchester to see what an effective public administration can achieve. Sometimes it is about not the skills you bring in but the structures you bring them into. In this, we have accelerated some of the other changes. Management information is a very important aspect of leadership, and I will be very interested in what the Minister has to say on progress on management information and on whether there are any plans to publish any of that material.
I do not think any institution, like any company, can ever think that there is a time to stop changing or reorganising. I urge the Civil Service to use its undoubted skills and the Government to be much more open to allowing people to debate these issues, and to encourage innovation and change and ensure that effective public policy outcomes with efficiency and cost savings can be achieved. It is time we gave greater scope for everyone to achieve that to unlock the huge potential we have.
Lord Wilson of Dinton (CB)
My Lords, I, too, add my congratulations and thanks to the noble Lord, Lord Hennessy, who will be sitting submerged in praise by the end of this debate. I agree with what he said and with a lot of the points that have been made by later speakers.
If there is one thing that is certain about the future of the Civil Service, it is that it will always be needed but that different Governments will want different things from it from their predecessors. The Thatcher and Major Governments wanted different things from the Civil Service from the Wilson and Callaghan Governments. When Mr Blair came to power, he inherited a Civil Service that lacked the skills and people that it needed to tackle the large increase in public spending and the issue of delivery. The Civil Service must always retain the capacity to change—to adapt to the needs of the times—while remaining true to itself. To do that, it needs to operate within a sophisticated, complex political deal which everyone subscribes to and understands. It is no secret, as the noble Lord, Lord Hennessy, rightly outlined, that there are problems with that deal now. I regret very much to have to say it. It is partly to do with problems of capability—the management of large projects, as the PAC has very roundly illustrated—but also problems with the constitutional framework, the role of Ministers in the appointment of Permanent Secretaries, the large ministerial offices, and the accountability of civil servants and Ministers to Parliament, and the problem of the large number of Permanent Secretaries leaving over the past few years fills me with considerable dismay. It is crucial for the Civil Service, for us, for Parliament and for the public that the service should go on attracting the best people.
I am convinced that the Public Administration Select Committee’s report, which is a devastating critique, is the right way to go: we need a parliamentary commission. I congratulate the committee on what it has produced. I think it will become a classic of its kind. However, it needs to be agreed between the parties. It cannot be done by the Government of the day. The Civil Service is not a subject for unilateral experiment by people in power. It has to be done with cross-party support and analysis, and it needs to be a truthful analysis—good management and good politics do not always coincide. The framework within which the service operates and the standards by which it is judged must take that into account. It needs good Ministers as well as good civil servants. All these things need to be taken together and a current Government, whatever Government, are not in a position to reach those judgments. I support the need for a parliamentary commission but it must respect what is bedrock: the non-political nature of the service and selection on merit. Provided they are secured, there is a great deal of room for original thought. It needs to be done now and the Government are missing a real opportunity if they fail to grasp that, as they seem to do.
Lord Jay of Ewelme (CB)
My Lords, I have spent much of my working life in either the Home Civil Service or the Diplomatic Service, working both in London and abroad. The first, important thing I want to say is that the vast majority of people with whom I have worked over the past 30 or 40 years have been committed, determined, able, politically neutral and very often courageous in ways by which, when I started, I was rather surprised. I shall not forget visiting Baghdad and seeing a dozen government department representatives living and working in a container in an underground car park, being shelled by mortars. That was serving your country at its best and is something we need to recognise more often.
I mention it because, as the noble Lord, Lord Butler, has said, there is a tendency now to attack, blame and denigrate the Civil Service. That is a mistake. One of the things I have learnt in the time I have spent in the private sector since leaving the Civil Service is that if you want to change an organisation, you need the support of those you are trying to change. That needs to be recognised, perhaps more among some Ministers than is now the case.
Of course, the Civil Service needs to change and adapt to ever-demanding tasks. Many of the reforms now under way are necessary, indeed essential—procurement, delivery and focusing on the skills needed for the 21st century, which must include language skills if we are to pay our way in the world. My noble friend Lord Wilson says, “English”, as well and I agree with that, too. The counterpart of this is the need to be able to move on people who are not able, for whatever reason, to deliver what is needed.
There are some reforms now proposed with which I really have difficulty. They have been mentioned by some noble Lords already. I have serious reservations about a substantial increase in the number of special advisers, creating a sort of cabinet for each Minister. When I mentioned to a senior and highly respected French civil servant recently that the Government were thinking of going down that road, he blanched, looked horrified and said, “Do not put a layer of 25 year-old political appointees in between the professional expertise of the Civil Service and its Ministers”. Perhaps that is not what is intended and I hope that, in replying to this debate, the Minister will be able to clarify that point.
I also, like others, worry about the move towards a more political say in the appointment of Permanent Secretaries. If a Permanent Secretary is regarded as the choice of one Government or Minister, he or she will inevitably be regarded with suspicion by the next Minister or Government. The combination of a more politicised group of Permanent Secretaries with larger numbers of political advisers will inevitably erode the principle of neutrality of the Civil Service, which remains an essential and widely respected pillar of our democratic system.
These are extremely important, indeed fundamental, issues for our system of government. For that reason, like others, I very much agree with the case for a parliamentary commission which can look at the role and functions of the Civil Service in the years ahead.
Lord Jenkin of Roding (Con)
My Lords, I join other noble Lords in congratulating the noble Lord, Lord Hennessy, on his splendid speech, with every word of which I agreed. I also thank my right honourable friend Francis Maude for a useful exchange of views which he had with some of us last Monday. I was glad when he told us that he had not ruled out a commission; the idea has had huge support in the House today.
Before coming to my main argument, I will make two points. First, over the Christmas Recess, I read The Blunders of our Governments by Anthony King and Ivor Crewe. The blunders are to be laid almost wholly at the door of Ministers and not civil servants. That should be said, and it is made clear in the book. Secondly, the noble Lord, Lord Jay of Ewelme, referred to the courageous attitude of many civil servants, and I am sure that he is right. However, today, a lot of senior civil servants seem a great deal more reluctant to speak truth unto power, in the sense of warning Ministers frankly that their proposals will not only fail to achieve their objectives but may well prove harmful. I believe that that is a major duty of civil servants and they should not hesitate to exercise it for fear of the impact on their careers. That has been a fear in recent years. Unchallenged “group think” can lead to serious risk of failure.
Finally I come to my main argument, following the points of others about the appointment of Permanent Secretaries. A year ago, I described in the Times how, in 1983, I urged the Cabinet Office to appoint a successor from a different department to follow the retirement of Sir Peter Carey from the Department of Industry. Sir Brian Hayes proved a great success. I did not appoint; I merely urged the Cabinet Office. However, Sir David Normington took issue with me and wrote in the Times the following day:
“The Commission believes that the best way to recruit permanent secretaries continues to be on merit with the final decision taken by an expert panel rather than a single individual”.
Last Monday, as the noble Lord, Lord Hennessy, reminded us, the commission published a fresh consultation paper on recruitment principles. I thought from the press reports that it had moved in my direction—but no. While accepting the Government’s proposal that the Prime Minister should make the final choice, the commission is insisting that this should apply only,
“where there were two candidates of equivalent merit”.
I find this a very difficult concept. Yes, the relevant Secretary of State should be consulted, but I do not think that the restriction of the “equal merit” point is acceptable, and I hope that the Government will reject it.
Lord Ramsbotham (CB)
My Lords, I, too, thank my noble friend Lord Hennessy, not just for our having this debate but for the masterly way in which he introduced it. I admit that I am slightly fuelled by nostalgia in contributing because I had the great fortune to first serve in Whitehall in the 1970s, when the Ministry of Defence was fortunate in having some real giants of the Civil Service in its midst. I learnt very quickly the absolutely priceless value of having an independent, honest, impartial, objective civil servant. The integrity of those people was absolutely incredible.
It struck me then that of course you cannot conduct government, and you certainly cannot have continuity, consistency and stability, without that sort of bedrock. One thing was clear: there was locked up among them an institutional memory which meant that, when issues were raised, they could say not just, “It won’t work”, but, “The last time, or on previous occasions, this and that didn’t happen”. When I look around, I have to admit that, although I fully acknowledge the calibre and quality of those in the Civil Service, I regret that some of that institutional memory is being dissipated by the way in which people are being moved around.
All my foxes having been shot—I am not surprised by this—I absolutely agree with a commission; but I would like to focus on what my noble friend Lord Butler said about the importance of the relationship between Ministers and civil servants. It seems to me that there are two crucial words that are slightly old-fashioned and in danger of being lost in that relationship. One is “leadership”, and we should remember that leadership has to be given both to them and by them—by Ministers and by the Permanent Secretary. The other is “loyalty”. Loyalty is absolutely crucial, and loyalty in the Civil Service will not follow unless civil servants feel that Ministers are being loyal to them. That is hugely important.
If I have one final, lingering regret, it is that the wonderful series on television that we all enjoyed, “Yes Minister”, was not called “No Minister”; because I suspect that if more civil servants had said no to their Ministers, we would not have been plagued by some of the legislation with which we have been swamped in recent days.
Lord Birt (CB)
My Lords, I worked intensively with the Civil Service for six years when I was in government, and with officials at all levels, generally on major, long-running projects. It was for me a most happy experience. These were people of exceptional talent, of real commitment, and of absolute integrity.
In the higher reaches of the Civil Service, well-represented here today, the sense of wisdom, experience and steeliness is tangible. They and their ancestors have been to war, literally and metaphorically, and it shows. But with the scope and extent of the modern state, the Civil Service today faces challenges of unprecedented scale and complexity; and though it has adapted, I do not think it has yet fully adapted to meet those modern challenges.
The skills found in the best-run private sector corporations are insufficiently developed still in Whitehall: for example, a forensic understanding of the total environment in which public institutions are operating; or the ability to analyse closely where in a system economic value is being created or destroyed; or the capacity to deliver, as many have mentioned, large-scale projects with multiple partners. There is a lack of clarity about governance and accountability. Where does the buck stop on long-term projects which may span the terms of office of many Ministers and officials? How can Ministers deal with under-performing or insufficiently skilled officials? How can officials be protected from inexperienced Ministers who make unmeetable demands, which they do in all Governments?
I do think it is an appropriate time to review how we can build a Civil Service fit for modern times; how we can radically improve accountability and responsibility for delivery; how we can create mechanisms which protect the impartiality, the independence and the long-term stewardship of the Civil Service, yet give Ministers the confidence that they have the tools to do their jobs. I do not doubt that we have the best Civil Service in the world. Let us make it better still.
Lord Smith of Clifton (LD)
My Lords, in thanking the noble Lord, Lord Hennessy, for introducing the debate, I agree with him that we have to go back to the Fulton report, to which I submitted evidence all those years ago. However, the problem with that report was that it unleashed an often mindless pursuit of managerialism into government. The pursuit of this doctrine led to wholesale privatisation, hollowing out of Whitehall, outsourcing of a multitude of government functions, excessive reliance on management consultants, an army of regulators and the introduction of GOATs into this House, all in the belief that private sector practices were always good and public sector practices invariably bad. The axiom has been the unchallenged operating principle in the conduct of government for more than the near half century since the Fulton report, and has been fully articulated here today. It has created institutional anarchy and shown no regard whatever for constitutionalism, which is the bedrock of democracy.
Somehow this anarchic system has had to be serviced. This has been done by a burgeoning “nomenklatura”. Distinctions are now so blurred that it is not easy to tell if its members come from pressure groups, spads, management consultants, regulators, quangos, the residual Civil Service or elsewhere. They constitute a new breed of “fixer” and are a far cry from that earlier generation which spawned Oliver Franks, Arnold Goodman and their like. The new breed does not know very much about anything but it knows its way around and that, apparently, is enough.
Ministers seem to have a flickering of the problem when they call for joined-up government. However, this will remain a chimera unless the necessary prerequisite is fulfilled—that is, joined-up thinking—and there is no sign of that. Writing a definitive textbook on modern British government is a near impossibility these days that would severely tax the powers of the noble Lords, Lords Hennessy and Lord Norton. As Bernard Jenkin from PASC and the FDA have recommended, and as many noble Lords have endorsed today, there is now an urgent need for a comprehensive strategic review of the role and functioning of the non-elected part of our Executive. We need to redefine the constitution and not live with the present fudge if the increasing encroachments of corporate power in dictating the public agenda are to be resisted. Along with others, I ask the Minister in winding to say why Her Majesty’s Government have rejected the PASC’s recommendation for a review.
Lord Turnbull (CB)
My Lords, is the criticism of the Civil Service coming from Ministers, Parliament and think tanks justified? Of course, the Civil Service can, and should, raise its performance, but the big picture is that since 1997 it has contracted by 13% and expects to be 20% smaller by 2015. It is handling a rising caseload with less money so its productivity has been significantly increased and many services have been improved by digital delivery. Other countries see the UK as a source of good practice.
Contrast that with the incontinence of the political payroll, with Ministers up by 8% since 1997, despite the savings which devolution should have produced. Spad numbers are up from 38 in 1997 to 98 now, most of whom are political interns and not deep experts. Unlike politicians whose reputation has been damaged by expenses fiddling and influence peddling, the Civil Service has maintained its reputation for integrity, according to the annual MORI survey on trust.
Do civil servants obstruct Ministers, as some have claimed? That is the cry-baby response of the weak Minister. Strong Ministers get what they want. As others have pointed out, the Civil Service has failed more often in the opposite direction—that is, in agreeing with Ministers’ proposals when it should have questioned them: for example, on the poll tax, the new style rail franchises and the overambitious timetable for universal credit.
On accountability, the Institute for Government got it right when it said that,
“secretaries of state and permanent secretaries have shared accountabilities and responsibilities … Trying to separate them is an illusion”.
It also said that the relationship is,
“impossible to express in contractual terms”.
As Tam Dalyell said of the West Lothian question, the only answer is not to ask it. The argument on accountability is more with Parliament, which wants greater scope to criticise individual officials without giving them any greater right of reply. We should concentrate on those things that bring Ministers and officials closer together and not on things like contracts, extended ministerial offices or more ministerial appointments which drive them apart.
Should Ministers choose their Permanent Secretaries? The answer is definitely not. That should be exclusively for the Prime Minister, who, after consulting the Minister, appoints someone from a list of those deemed genuinely appointable. Is a parliamentary commission likely to help? Despite being a member of a successful commission on banking, I am probably in a minority in being rather doubtful about whether that would add much to performance. More importantly, should a review be carried out by Parliament? In my view, the answer is no, as Parliament is an insider in this argument with a vested interest. A review should be independent.
What are the real priorities for improvement? My answer is professional skills throughout the service, not just for those who work closely with Ministers, in four areas: project management; contract management so that the Government are not fleeced by contractors; digital delivery; and financial management. All four areas have been identified and are being addressed.
Lord Armstrong of Ilminster (CB)
My Lords, my noble friend Lord Hennessy of Nympsfield has been taking a keen interest in the Civil Service, its activities and personnel, for nearly 50 years. That interest has become steadily more benign and supportive over the years. We all mellow with age. At least we can be grateful to him for raising the subject and giving us an opportunity to debate it. With time being very short, I shall confine myself to the main point that I wish to make, although I would have liked to comment on many other matters.
Clearly, the Civil Service has to be nimble and versatile enough to keep pace with the implications of the social and technological changes and challenges that occur and will continue to occur. Its role has always been, and will continue to be, not so much to advise about what policies should be pursued—that is a matter for political and ministerial judgment and decision—as to advise on how the policies chosen by Ministers can be put optimally into effect, and then to put them into effect.
Civil servants are expected to discharge their duties with honesty, integrity, impartiality and objectivity. These have been the guiding values of the Civil Service, as my noble friend Lord Hennessy reminded us, for a century and a half. In 2010, they were given statutory expression and force. Like motherhood and apple pie, no one seriously contests them. However, we seem to feel a need constantly to parade and reassert them, and to write statutes, codes and regulations to try to ensure that they continue to be applied in every aspect of management. That seems to reflect a lack of confidence in their being properly observed.
The development of elaborate statements of principle, codes and regulations makes me uneasy. There have to be arrangements for disciplining those who transgress, but I should prefer a world in which, as a general rule, the civil servant is the guardian of his own integrity and relies on his own professional conscience and sense of values. It is better that a civil servant should say to himself, “Ought I to be doing this?”, or, “Ought I to be doing this in this way?”, than that he should say to himself, “Can I fit this within the rules and regulations”—or, worse still, “Can I stretch the rules and regulations to cover what I propose to do?”. He really should be thinking about the issues for himself.
In the end, this is a matter, as noble Lords have already said, of mutual respect and trust between Ministers and civil servants. I have had the privilege of knowing from experience that that relationship can be established and that, given goodwill on both sides, there can be a clear understanding of each other’s roles and responsibilities, and a recognition that they are there to work together in the public interest and not against each other.
The Civil Service needs to be able constantly to adapt to the challenges of changing economic, social and technological conditions. However, the future of the Civil Service would not be best served by a further proliferation of orders and regulations, or a proliferation of expert advisers in extended ministerial offices—which, I fear, would become a device to enable Ministers who are politically unsure of themselves to surround themselves with politically congenial cronies, paid for by the taxpayer, and distance themselves from departmental realities and their departmental advisers.
The prime requirement for a good future for the Civil Service and, indeed, for the good governance of this country is the maintenance of its traditional values in deed as well as in word, and the establishment of mutual respect and trust, based on good will and a clear understanding and acceptance on the part of both Ministers and civil servants of their respective roles and responsibilities.
Lord Waldegrave of North Hill (Con)
My Lords, it seems to me that there are two separate issues here. First, there is the constant process of change and modernisation that the Civil Service, like any other organisation, needs. Some of the things that the Government are proposing seem to be sensible—on project management and IT, for example. They get some of them wrong: it was a grave mistake to separate the Cabinet Secretary from the Head of the Civil Service. I know that in the past there were different ways of doing this, but by far the best is if the most powerful adviser to the Prime Minister is also the man who understands appointments and promotions within the service. The abolition of the Sunningdale college, without its replacement, yet, by anything adequate, is also a mistake.
However, these are ordinary things that go on. Government Ministers and heads of the Civil Service get some of them right and some of them wrong. I am nervous of the proposal of the noble Lord, Lord Hennessy, for a second Fulton report for the following reason. The noble Lord listed a tremendous number of things that such a commission should look at, taking account of everything, including the defence posture of the country for the next 20 years. I speak with a little nervousness in the presence of the noble and learned Lord, Lord Scott, but that report would perhaps take a great deal of time, whoever chaired the inquiry. During that time, it might realistically put a damper on the necessary process of modernisation that goes on all the time.
I put it to the noble Lord that something more urgent needs to be done. Are things being done and thought about that run into our fundamental, unwritten constitutional principles, which we are calling today, in shorthand form, Northcote-Trevelyan and Haldane? It is good shorthand and represents promotion by merit, independence from political influence, and the accountability of departments resting with Ministers. I am anxious that things are being proposed that threaten those fundamental principles.
I have a grave doubt about the EMOs—not so much about the way in which the conflict between Normington, the Civil Service Commission and the Government is going, although the commission has got itself into an odd position there, as my noble friend Lord Jenkin of Roding, said. Sir Peter Kemp went to his grave saying that I had sacked him. I had not sacked him, but I had a consultation with the noble Lord, Lord Butler, and we agreed that Sir Peter was not the man to be in charge of that particular department at that particular time. It is possible for these things to be done properly if you have the right structures. However, if we get into a situation in which there is a conflict between a commission that is becoming rule-bound and Ministers who—particularly if the commission is headed by distinguished former civil servants—see it as something of an insiders’ club, we are in difficulty.
We therefore need to look quickly, not at a parliamentary commission—here, I am with the noble Lord, Lord Turnbull—but at an independent commission in which there might be distinguished lawyers, and others, to look at whether our defences against the attacks on the two fundamental principles are real. We are running into danger, and I want a quick six-month or year-long inquiry into whether in the modern world we have enough defences for those fundamental pillars—after all, the Civil Service Commission is charged with looking not at Haldane but only at Northcote-Trevelyan. That inquiry might lead to recommendations for a new kind of Civil Service commission, which may well be necessary. We need to move more quickly; the situation is more urgent than the noble Lord, Lord Hennessy, argued—mellowed though he is.
Lord Fellowes (CB)
My Lords, I am delighted that the noble Lord, Lord Hennessy, has instigated this debate, not least because it gives me an opportunity to discharge a duty that has been long outstanding. That duty is to express my gratitude and admiration for the quantity and quality of advice and help given to me and the institution for which I worked for 22 years. I was lucky enough to have a job that required daily communication with the Civil Service and also, of course, with the Diplomatic Service at various levels. I was then, and remain, a staunch admirer of these public servants, from the mandarins at the top—by whom I am surrounded today—right through the ranks. The patience and friendliness with which advice and help were always given were matched only by its quality. To put it bluntly, I could not have done my job without it. I soon realised that the caricature of the civil servant—portrayed sometimes benevolently and at other times more harshly—was hideously inaccurate, and that I was lucky indeed to have been able to draw on such an extraordinary resource.
This debate, however, is about the future of the Civil Service, not its past—and still less about my past. Most Governments seem to arrive in office with the avowed intent of not being “in thrall to their civil servants”. After an initial stand-off, they usually work their way through this phase and arrive at a satisfactory relationship, making the most—rather than the least—of those whose job it is to help them. Just now, however, it seems that this relationship is about to undergo a period of fierce pressure, with an onrushing tide of reforms and an increasing prevalence of special advisers separately and together challenging the traditional role of the Civil Service. To my mind, it is undesirable for the engineers of change or their special advisers to become the creators of policy rather than the sources of specialist advice—the role for which their jobs were created.
My devout hope for the future of the Civil Service is that it retains its position as the hub around which the wheel of government turns, and not just an adjunct to be used or blamed at the last resort. I know it has not quite come to that yet, but I believe we should guard very carefully against it. A review along the lines outlined by the noble Lord, Lord Waldegrave, or a parliamentary commission, would be good ways of mounting this guard.
Lord Luce (CB)
My Lords, unlike my colleagues, I am wedged here between distinguished civil servants, but I speak as a former Minister of State for the Civil Service. I strongly support everything that the noble Lord, Lord Hennessy, has said. The difference between now and the 1980s, of course, is that there is a breakdown in trust between Ministers and the Civil Service, which is at a serious level. However, we ought to acknowledge at the same time that there has been a considerable change in circumstances facing Governments of the day. The circumstances are more complex: we have a coalition Government; the technology has transformed the scene; and the media demand a 24-hour service.
To my mind, there are two key points. It is essential to preserve, on the one hand, the ethos and the values of the Civil Service, as outlined by the noble Lord, Lord Hennessy. Secondly, it is important always to ensure that there is ongoing, incremental improvement in the effectiveness of the Civil Service. That is what the Government are now effectively trying to do in things such as delivery and improving the skills and the quality of advice that the service gives. At the end of the day, we must do nothing to undermine the values of the service.
Then there is the question of accountability. At the end of the day, the buck stops with the Minister, who is accountable to Parliament. It is perfectly sane and sensible in today’s rather complex age of government to expect that the roles of civil servants should be clarified and that systems of accountability should be there. At the end of the day, however, it is Ministers who carry the can: I say with some feeling that there are times when they even have to resign.
Secondly, we should not politicise or personalise the appointments of Permanent Secretaries. The job of the civil servant is to give fearless, objective advice to Ministers. They must have no fear of losing their job because they are doing their job properly. A good Minister will want to hear all the arguments before taking a decision; otherwise the Minister is in danger of taking the wrong decision. Therefore, I am totally opposed to any weakening of the present position where the Secretary of State cannot appoint the Permanent Secretary.
Lastly, I am extremely suspicious about the extended ministerial office. There must be no conflict of loyalties. There must be no cocooning of a Minister within his little bureaucracy. There must be no proliferation of political advisers. There are plenty of junior Ministers in this present Government to give political advice.
I support my colleagues who believe that there ought to be an all-party-supported independent or parliamentary inquiry that reaches its conclusions before the next general election. The country needs a strong and stable Civil Service.
Lord Norton of Louth (Con)
My Lords, I, too, am delighted that the noble Lord, Lord Hennessy, has secured this important and timely debate. In the time available, I want to make two points. First, I very much endorse the recommendation of the Public Administration Select Committee for a commission on the Civil Service. That case is well made in its report. The Government’s Civil Service Reform Plan focuses on making the Civil Service more effective both in service delivery and in offering policy advice. As I said in evidence to the Public Administration Committee, it takes a narrow and one-dimensional view of the relationship between Ministers and civil servants.
Ministers depend on good civil servants. Conversely, civil servants rely on good Ministers, and Parliament relies on Ministers and officials who understand their responsibilities to Parliament. The system relies on an understanding of these relationships, but the basis on which this rests is being eroded. It is being eroded as a consequence of the turnover in senior civil servants and the lack of turnover in the party in government. Some politicians have become senior Ministers with no prior experience of government. Turnover in the senior Civil Service takes out the administrative experience and specialisation that offsets the fact that both civil servants and Ministers are generalists.
This makes the case for a major review and one that puts the Civil Service within the context of our system of government and not simply as some discrete managerial entity. Ministers see civil servants as part of the problem without acknowledging that they too are part of the problem. For that reason, the decision on how to address the problem should not be left to government.
That brings me to my second point. The Government have rejected the proposal for a commission. That, combined with my preceding point, means that it is up to Parliament to take ownership of the process. I disagree with the noble Lord, Lord Turnbull, and my noble friend Lord Waldegrave: on practical grounds we will not get an independent commission. If the Government decline to support a Joint Committee, it is up to this House to establish an ad hoc committee on the Civil Service. In response to my noble friend Lord Waldegrave, that would time limit the actual inquiry.
We are not short of expertise, as is so clearly demonstrated by this debate. My comments today are thus not addressed to the Minister but to the House. In my view, we should grasp the opportunity.
Baroness Donaghy (Lab)
My Lords, I thank the noble Lord, Lord Hennessy, for introducing this debate and echo the concerns of others that the ingredients for improving efficiency and effectiveness in the Civil Service are not even provided at present. I was a member and former acting chair of the Committee on Standards in Public Life. We did a considerable amount of work on the role of the Civil Service and the importance of its independence. I wish that I had more time to say more about that.
Secondly, as chair of ACAS, I was responsible for promoting good employment relations. Had I been approached about whether a 30% reduction in the number of senior civil servants would improve employment relations and increase effectiveness, I would have been delighted to give my view.
It is extremely important to be aware of the distinction between good employment relations and Civil Service independence, and not confuse the two. When I arrived at ACAS—and its staff were Civil Service-related—it was clear that there was a need for a major reorganisation to recognise the changes in the world of work. This was a big project that involved the staff and was achieved with consent. It took time. If you are going to get the best out of staff, you need to inspire and motivate. Even within the term of one government, there can be between two and eight changes of Minister and junior Minister, all with different priorities. A new Minister comes in and says, “Why are we wasting taxpayers’ money on this?”. The Civil Service has to be able to show the origin of the project, usually the Minister's own predecessor, so accountability is extremely important.
Ministers with perhaps only one or two years of office before them naturally want to get things done. If they see Civil Service caution as an obstacle, they are tempted to be surrounded by their own creatures. Of course, there are Ministers with experience who have been managers. Too often, however, our leaders come from a much narrower background and have absolutely no experience of management or transparent appointment procedures. To extend political appointments will only make a bad situation worse. I only hope that there will be a code of conduct to ensure transparency of appointment and pay. If the limit for Civil Service commissioners’ approval remains as high as £84,000, it will miss the point. Some of these prime ministerial wannabes will do it for nothing and will come from a background where they can afford to. While I accept that project management in government does not have a great record, let us be clear: it can happen even when a non-civil servant is drafted in from top business. The MoD might well be a good example.
Finally, enshrining Civil Service objectivity in law was a good thing and I acknowledge the Government’s achievement in that. But it is in danger of being a totem when huge staff cuts and the growth of political cronyism are the reality.
Lord O'Donnell (CB)
My Lords, I should like to add my thanks to the noble Lord, Lord Hennessy, as the noble Lord, Lord Armstrong, said, in his long journey from the dark side. I also thank both Houses of Parliament for passing the Constitutional Reform and Governance Act, which, I have to say, civil servants advised Ministers to do about 150 years before they finally did it. Pace is something we need to think about.
If we are thinking about the pace of change, we should think about what has happened in the past three years. The Civil Service has downsized by about 75,000. It has managed an effective coalition Government, which has not been done before. It has had to deal with cuts in real pay, pensions, redundancy terms and promotion prospects. Yet throughout all of that, morale has gone up. Engagement scores for the Civil Service show an increase of two percentage points. Trust levels, as the noble Lord, Lord Turnbull, said, have gone up by six percentage points at a time when, as we know, trust in the political system is not exactly strong. I put it to the House that if the Civil Service were a private sector company, the Harvard Business Schools of this world would be doing case studies on it, and we should applaud that success.
However, let us not hark on the past but talk about the future. What are the challenges for the future? We are in a period of austerity until 2015 and beyond, or is it infinity and beyond—who knows? Can we carry on? Yes, we have skills shortages in the Civil Service in areas such as commissioning, financial management and project management. I commend the noble Lord, Lord Browne, for the work that he has been doing on some of these areas. The innovation, of which we need more in the role of non-executive directors, has been fantastic. They have been incredibly helpful in departments and in bringing home to civil servants and Ministers the business skills that we need to deliver these big projects. That is very good.
However, we also need a broader set of skills if we are to look at the reforms for the challenges of government—and I stress government—for the next few years. It is going to be all about things such as behavioural public policy and sorting out how we measure success. In health, we have quality-adjusted life years. For the whole of government, we will need well-being years. Those are things to come. We need a broader range of skills, including those of psychologists and multidisciplinary people. We need more risk-taking, as I have said. If we are to get risk-taking right, we will have to stop the emphasis on ex-post Spanish Inquisitions and do a lot more on ex-ante appraisal of projects before they come to us. Parliament should be demanding more information. We should have something like an office of taxpayer responsibility which, building on the OBR, would look at these projects and give you evidence to show what the risks are. Where is the evidence base? Too often we have what I call the Bachelors’ approach to policy. Do noble Lords remember that Bachelors’ hit “I Believe”? Ministers come in with very strong beliefs and you say, “Very good, Minister, let’s test them. Let’s have a bit of evidence. Let’s have a randomised control trial”. They say, “No, too slow”. We need all of that.
Finally, I strongly support more experts. Of the top 200, 41% were externally recruited in the first place. They should not be experts in telling the Minister who appointed them how brilliant the Minister’s ideas are. They should be genuine experts, based on meritocratic principles. If we think about the future of government, we should analyse government. You cannot just analyse the Civil Service. If you are going to have a commission, make it on government and about Ministers and Civil Service together. It would be a nonsense to do one half of the horse.
Lord Kerr of Kinlochard (CB)
My Lords, I am uneasy about extended ministerial offices. There is a risk that we get the worst of all possible worlds. In America, we see the dangers of hiatuses on a change of Government. In France, the danger is that the cabinet system means that policy-making is separated from the expertise of the department as a whole. I am uneasy about surrounding the Minister with more people whose tenure is dependent on the king’s smile. We do not need more courtiers. If the Minister wants sycophants, he gets special advisers: we have plenty of them already. As has been said, in his policy-making meetings he should want honesty. He should want people who know what they are talking about. The turnover numbers in the Civil Service are very scary now. The expertise may not be as great as it should be. I am struck by the fact that the Treasury wastage rate was 28% in 2010 and 22% in 2011: 50% over the two years of a great financial crisis. That cannot be right. It suggests that something is wrong.
On the issue of the apolitical Civil Service, I am struck by the point made by the noble Lord, Lord Forsyth. It is astonishing if the head of the Civil Service is not taking up with his counterpart in Edinburgh a clear misuse of government money and time in producing a political manifesto. I am uneasy about the exclusion of civil servants from policy-making if one goes down the EMO route. The Minister who does not want his policy subjected to the most rigorous internal dialectic should not be in office. The artificial distinction that is drawn between policy-making and delivery is a false dichotomy. There is no such thing as a good policy that cannot be well delivered. That is a bad policy. You need to have, in the room, as you decide, the people who will be responsible for delivery. Even if you have, in your head, already decided what the policy will be, it is crucial that you pretend to take account of the arguments being advanced. You listen to their talk of pitfalls and precedents and things that could go wrong, and you make them feel that they were present at the creation. It is really important to loyalty that people feel they were present at the creation.
There is something wrong. We have not yet lost the apolitical, independent, expert public service but it is in danger. I do not know what the correct form of inquiry is. I rather go with the noble Lord, Lord Waldegrave, on speed, but something should be done. Some kind of inquiry is needed to make sure we do not lose what is the envy of the French and Americans by going down their route.
Lord Marlesford (Con)
My Lords, for 50 years I have been observing, commenting on and, at one point, participating in the Civil Service; as a party functionaire, as a special adviser in Whitehall when those were rare beasts, and as a journalist. For some months, at the Economist, I shared a room with the noble Lord, Lord Hennessy—we had a lot of fun—and his arrival has been a great asset to this House.
I have observed, with dismay, a real deterioration during recent decades in the performance and capability of the Civil Service and, indeed, in the quality of some of those who occupy key posts in it. To take just one symptom, the quality and preparation of legislation has been getting worse and worse. We have observed this in our own role here. This is sometimes compounded by the determination of civil servants to stick to what they have produced, casting around for ingenious and often spurious arguments to sustain it. This can be compounded by Ministers if they are prepared to act as parrots for the Whitehall view. I would support the idea of a fundamental look at the Civil Service, but on the one condition that it does not delay the changes that can be made and are so urgently needed now.
The whole idea of Northcote-Trevelyan and the subsequent reforms was to move away from patronage to ensure tough, competitive entry so that the Civil Service recruited the brightest and the best and became a meritocratic elite. Its performance must be held to account with rigour by Parliament; this is where I welcome the growing effectiveness of Select Committees. The problem is the attempt to move away from the simple criterion of excellence in recruitment and promotion towards diversity, the aim of which is to make the Civil Service reflect more closely the profile of Britain. The flaw in this is that the role of the Civil Service is too important to be used in some form of politically correct modern patronage dressed up as social engineering.
Better is needed at the bottom and the top of the ladder. At the bottom, private offices—traditionally a crucial staging post on the route to the top—are there to help serving Ministers get things done. In 2011 I asked, in a PQ, what steps HMG were taking to ensure that the staffing of private offices reflected the full diversity of the UK. In reply, I got a whole column of Hansard, proudly announcing such absurdities as roadshows. Private offices are now falling down on the job. Permanent Secretaries have always been key at the top. As the noble Lord, Lord Butler, said, there is now far too much rotation. For example, the deputy secretary at the Home Office responsible for immigration policy, so rightly denounced as not fit for purpose, was promoted to PUS in the Ministry of Defence. His performance was a disaster and his successor lasted only a few months. Where are the giants of the past? Where are the Sir Frank Coopers and the Sir Michael Quinlans?
Britain needs and deserves the best in the Civil Service. I am in favour of an independent elite. Let us recruit it.
Lord McConnell of Glenscorrodale (Lab)
My Lords, when the noble Lord, Lord Hennessy, joined the House I anticipated some outstanding contributions. That anticipation was fully realised today with his excellent introduction to this debate.
When I started my ministerial career in 1999 as Minister for Finance in Scotland, I was responsible for Civil Service issues and relationships between the new Scottish Government and the UK Government, particularly with the secretary for the Cabinet Office. At that time, we established a number of memoranda to try and ensure a decent and efficient operation between the two levels of government—a point that I will return to.
However, let me start by saying that, of all the contributions made so far by noble Lords, I agreed most with that of the noble Lord, Lord Armstrong. It seems to me that at the heart of the current problem is a lack of ministerial responsibility and acceptance by Ministers of that responsibility in their dealings with the Civil Service and agencies under their remits. The creeping way in which that has come into government under all parties over recent years is at the heart of the current problem, which is about the independence of the Civil Service, the accountability of Ministers and their taking responsibility for mistakes and decisions.
Without a strong and independent Civil Service, and without Ministers who are willing to listen and to change when change is necessary, our system of government makes mistakes and fails. When Ministers are strong and issue clear directions, civil servants know where they stand and are perfectly capable of carrying out the instructions and policies. That was certainly my experience in government, and I think it should be at the core of where we move to in the future.
The other important point that I want to make is that, in the Government’s document on Civil Service reform published in 2012, there is almost no mention whatever of the relationship between central government and the devolved Governments in the skilling and development of the Civil Service and the spreading of knowledge within the service across the different levels of government.
The level of interchange between devolved government civil servants and central government civil servants in this country has almost ground to a halt. That is to the detriment of the devolved Governments, because the civil servants who work in the devolved Administrations no longer have experience of working in the Treasury, at UKRep—rather than the Scottish Government’s office in Brussels—or in a whole range of other central government offices where they can work with people from other departments. Civil servants working in UK government departments no longer have any knowledge of the education service in Scotland or the health service in Wales or, indeed, all those other departments that are now the sole and autonomous responsibility of the devolved Governments.
It seems to me that the issue of interchange between civil servants working in the devolved Governments and civil servants working at the centre needs to be tackled. It has been ignored through an abdication of responsibility by successive Secretaries of State for the Cabinet Office and by Ministers in the devolved Administrations over the past decade or so. It is time that that was tackled, and tackled strongly.
Lord Nickson (CB)
My Lords, I do not know whether the noble Lord, Lord Hennessy, who has been praised almost universally by speakers in this debate, is keeping a tick list, but I should think that the score is around 25 to one. The only difference is on the urgency for a commission.
My mind is taken back to the first time that I was exposed to what might be the collective noun for Permanent Secretaries—I do not know whether it is a perfection or a permanence—at the spring conference in Sunningdale in 1987. The noble Lord, Lord Armstrong, will remember it because he presided over it just before he handed over to the noble Lord, Lord Butler, and it was just before the election. Every Permanent Secretary there had written his briefs for the right-hand drawer and the left-hand drawer and was in an enormously relaxed mood. We had a debate about the future Government and the role of the Civil Service, and there was a wonderful feeling of confidence and so on.
I suppose I had around 20 years of working with civil servants at senior levels or, in some cases, in quangos having civil servants working for me. I developed enormous respect and admiration for the skills, intellect and dedication of those civil servants. When I was asked to become the chairman of what is now the Senior Salaries Review Body, Lord Plowden, who was my predecessor, said to me, “My boy,”—because I was so much younger than him—“you must realise that this is the ultimate poison pill”. I was slightly comforted because earlier I had taken on another job in the private sector, but I went to a friend to ask his advice. He said, “If you take that job on, you must be even stupider or very much braver than I know you to be”. Anyway, I survived and I am very lucky to be standing here today.
I agree entirely with what so many speakers have said. What we have had in the Civil Service is what I would call the “four I’s”—independence, integrity, impartiality and I have forgotten the last one but it is in much the same vein. I also agree with what was said by the noble Lords, Lord Jenkin of Roding and Lord Luce, that in the service provided by Permanent Secretaries and senior civil servants there has to be courage and a certain robustness in order to be prepared to challenge Ministers on their chosen policies along with an ability to convert those policies into legislation and systems that work. So I am entirely in favour of what the noble Lord, Lord Hennessy, has said. The values were referred to by the noble Lord, Lord Wilson of Dinton, as the bedrock. I would describe them as the gold standard of values: a public service ethic and the wish to do good for the country, along with a desire for fairness. These values have, I think, been eroded.
I will finish by referring to one more point. Sir Hayden Phillips wrote an article about the Civil Service for the Times in which he used the term “shared enterprise” in the partnership between Ministers and their Permanent Secretaries. I think that that has been eroded. All I know is that in the private sector, unless there is confidence between the non-executive chairman and the chief executive and there is a working relationship, the right answers will not be produced. That is what is lacking, and I support the fact that there needs to be a major look at the Civil Service.
Baroness Prashar (CB)
My Lords, I, too, thank the noble Lord, Lord Hennessy, for securing this debate, and I agree with most of what he said. As the custodians of Civil Service values, the Civil Service Commissioners operate where operational issues and propriety issues interact. My experience as the First Civil Service Commissioner from 2000 to 2005 convinced me that any reform of the Civil Service must be tested against the principles, values and conventions which have guided the Civil Service for several decades.
Radical reform of the Civil Service started in the 1980s, but it has been piecemeal and predominantly managerial. In the 1980s and 1990s, fears arose that those piecemeal reforms might undermine or erode the values of the Civil Service and weaken the conventions which act as checks and balances within our unwritten constitution. Publication of the Civil Service Code in 1995 and putting the Civil Service Commission on to a statutory footing in 2010 were testaments to that fear.
The current proposals with regard to the relationship between Ministers and top civil servants, ministerial involvement in senior appointments and extended ministerial offices have aroused similar fears. That is because, in my view, these proposals underplay the significant functions carried out by the Civil Service within our constitutional arrangements—functions such as helping to ensure that the Government of the day act with propriety, supporting Ministers in the management of decision-making and providing objective advice; that is, speaking truth unto power.
In recent years we have seen many of the consequences that have resulted from defective decision-making, partly due to a lack of capability in the Civil Service, which of course needs to be addressed, but also due in part to the weak application of these principles. In December 2013 Sir Alan Beith, the chairman of the Liaison Committee in the other place, said:
“In our report, we identified examples where we felt that things had gone wrong because Ministers were told what they wanted to hear”.—[Official Report, Commons, 12/12/13; col. 372.]
But this issue is not new. In 2003, the former Prime Minister the right honourable John Major said that many Ministers behaved as if officials should be committed extensions of the Government’s electoral platform and that they openly blamed civil servants for errors that in the past had been accepted as the responsibility of Ministers.
It is also worrying that the IPPR report, Accountability and Responsiveness in the Civil Service, which was commissioned by the right honourable Francis Maude MP, sees “tension” between “responsiveness” and “independence”, and does not appreciate the distinction between independence and impartiality.
I believe that the time is right for a comprehensive and strategic review of the nature, role and purpose of the Civil Service, as recommended by the Public Administration Select Committee. Any commission that is set up should look not just at the Civil Service but at the role of Ministers as well. As the noble Lord, Lord Hennessy, said, the Civil Service is a national asset and is not owned by the Government of the day but held in trust for the next Administration. I urge the Government to change their mind and set up an independent commission for the sake of the future of the Civil Service and for the health of our democracy.
Lord Cormack (Con)
My Lords, I echo the last words of the noble Baroness, Lady Prashar, who has just addressed us. I do not know whether the noble Lord, Lord Kerr, feels that he has been present at the creation, but he has certainly been present at a very splendid debate, marred only by the time constraints under which we all have to speak. I warmly congratulate the noble Lord, Lord Hennessy, on the splendid and spirited way in which he introduced the debate. All those who have spoken with vast experience of the higher reaches of the Civil Service demonstrate the value of this House, because they are all wonderful examples of good parliamentarians, even if they are not politicians.
The one thing that troubles me about the Civil Service is its increased politicisation. I believe that that is due, mainly, to the enormous growth in the number of so-called special advisers. When I first became a Member of Parliament in 1970, I had the good fortune to be asked in the July of that year to become a Parliamentary Private Secretary in the Department of Health and Social Security. It was one department covering all those areas, with only four Ministers: a Secretary of State, a Minister of State in this House and two Under-Secretaries. I saw at first hand how the effective working—and it was an effective working—of a splendid department, under Sir Keith Joseph, depended so much on the trust that existed between the civil servants and the Ministers. Trust is the essential hallmark of a good Civil Service and a good Civil Service is the bulwark of a true, free democracy.
We talk a lot in this place about free speech, a free Parliament, and we are right to do so. However, at the base of it all, if we are to have a properly functioning democracy, we need those who are imbued by an ideal of public service, who are themselves following a vocation to public service and who are bringing their integrity and their ability to making sure that our country works properly. What has happened over recent years was illustrated for me in 1995, when I called on a colleague who was a Secretary of State to discuss some matters. I was met by a young man who was excessively polite and extremely welcoming. The Secretary of State came in and said “Have you been talking to …” and mentioned his name. I said yes and asked him, “What exactly is his job?”. “Oh, he’s my special adviser”. I said “Oh yes, how old is he?”. “He is 23”. I said “What on earth can he specially advise you on?”. “Oh, he does the party stuff”.
The party stuff may be important, but it should never get in the way of the proper stuff. Over the past 30 years, there has been such an increase in the number of special advisers that it really has got in the way of the proper stuff. I have seen a breakdown of trust and confidence between Ministers and those who serve them because of that.
The time constraint means that I cannot go on longer, I wish I could. But I end as I began by echoing the need for either a parliamentary or a royal commission to look at the role and position of the Civil Service in a modern democracy.
Lord Levene of Portsoken (CB)
My Lords, I, too, am most grateful to the noble Lord, Lord Hennessy, for his initiative in arranging this debate and I am happy to add to his already mammoth score. There have been quite a number of claims recently—sometimes from Ministers—that civil servants in government departments have not properly pursued the policy that their Ministers have laid down and are being insufficiently supportive of their department’s work. I do not share that view at all.
As some noble Lords may recall, I was, at the time, one of the very few people to have been catapulted into the Civil Service from outside to become a Permanent Secretary. I am sure that the noble Lord, Lord Armstrong, and the noble Lord, Lord Butler, will remember the occasion. However, whatever the circumstances may have been concerning that particular appointment, it gave me the huge privilege—I still regard it as a huge privilege—of joining the Civil Service at the top and seeing and learning for myself how the system operated. When I joined the MoD 30 years ago, I had experienced its workings only from the outside and shared the prejudices of many people in relation to civil servants that, fundamentally, they did not work very hard and were inadequately aware of the world outside of their somewhat cloistered existence.
It did not take me very long to realise how wrong I was. When I appeared in the office for the first time, I said to the staff in my private office, “Look, I want everybody in here at 8.30 in the morning”. Their response was, “Of course, then what shall we do in the first hour?”. I recall that not long after the start of the Blair government, one or two Ministers were complaining that their staff did not brief them adequately on the actions that they should take going forward and simply presented to them a number of options without a recommendation. If I recall correctly, it was the noble Lord, Lord Cunningham, who, on leaving office himself, commented sagely that that was indeed the proper role for civil servants—to present options to their Ministers and then it was for Ministers, at the end of the day, to take the decision. He was, of course, absolutely right.
Having experienced my own realisation of what the role should be, I developed a great respect for civil servants and I made the following remark to the noble Lord, Lord Hennessy, when he was writing his seminal book entitled Whitehall back in 1987:
“We have people within the MoD, within the Civil Service, for whom I would have given my right arm in industry”.
Our Civil Service is, happily, not politicised. It is made up of people who are well trained for their job, recognise their role in the process and work hard for relatively modest reward to serve their country to the best of their ability. I hope, therefore, that in debating the topic put forward by the noble Lord, Lord Hennessy, for this debate—the future of the Civil Service—we can build on the excellent ethos that has been built up over so many years. I am certainly of the view that we tamper with it at our peril.
Lord Sutherland of Houndwood (CB)
My Lords, we had a splendid opening to this debate and that has been carried through, I congratulate my noble friend Lord Hennessy on that. A number of years ago when I was serving what I suppose was, in a university context, an apprenticeship for this kind of thing, I was the junior member of a senate and had to sit on an appointment panel for a very senior administrative post—university registrar, I think. We were wise and we brought in someone from the Civil Service to help—which is the reverse of the process that we have been complaining about today—as it was an administrative post. He started his questions by looking the first candidate in the eye and saying, “You are evil, but you are necessary”.
I have pondered that ever since and, on the whole, have come down on the “necessary” side, especially in the present company. That was a lesson, and I have to say that any civil servant who was feeling a little bruised in the run-up to this debate might take a turn sitting in front of a senate of academics. I say to them, what you are experiencing now is nothing in comparison.
Lest I run out of time, there are two comments that I will make straightaway. One is that wherever I travel in the world where there is still evidence of the influence of the British Civil Service system, it is a benign influence. Where it is wholly absent, you can tell. By whatever measure you use, this is a benign influence. Secondly—and I should say that I do not think that it is all the fault of the politicians, because we do run the risk of moving in that direction and saying that they are to blame and this perfect Rolls-Royce model is trundling on—I want to focus my remarks for my remaining minute or so on something that has not been discussed in this debate: namely, the place of quangos. They sit roughly between the Civil Service operating as it does and the special advisers brought in to do the jobs that they seem to do.
This came to light in my experience when I was chairing a commission looking at the national tests debacle for schools in 2008, when thousands of schoolchildren did not receive their results on time. The essence of it, eventually, was that there was a quango running this. The internal processes of that quango had failed and the procurement process, though it ticked all the boxes, was not adequate. I have spoken about this before in the House. Also, the lines of communication between the Civil Service, the Department for Education and the quango were messy.
The plan was to deal with the problem of devolving power to a quango by putting observers on the quango and all its subcommittees. It did not work. The observers did not have defined instructions or roles. They did not know, for example, whether they were reporting everything that happened to the Permanent Secretary or not. The members of the quango thought, “Well, we have observers from the DfE sitting here; surely what we are doing is all right”. There was, of course, a real problem and a collapse: a process that spent potentially £150 million of government money collapsed. I ask that, if there is a move towards having a much wider debate, the role of quangos—their powers and their responsibility and accountability to the department—should be sorted out very clearly, especially for those bright young people who go in as observers and do not quite know what they are doing.
Baroness Hayter of Kentish Town (Lab)
My Lords, I, too, thank the—mellow—noble Lord, Lord Hennessy, my PhD supervisor, for introducing such an erudite debate. I am somewhat intimidated by having to follow more than a dozen former Ministers, former Cabinet and Permanent Secretaries and Peers with experience inside Number 10, as well as two professors, one former First Civil Service Commissioner and the Government’s lead non-executive. We also have the benefit of the Truth to Power report, the Civil Service Reform Plan and its one-year update, reports from the Institute for Government, the IPPR, the Liaison Committee, the Public Accounts Committee and our own Constitution Committee, and the annual reports of the noble Lord, Lord Browne; not forgetting the FDA’s own Delivering for the Nation. All these indicate a mood for change.
Despite being neither a former Minister nor a former Permanent Secretary, I want to reflect a third approach, that of consumers of government—especially given that, as Truth to Power says,
“citizens as consumers have hugely increased their demands and expectations of what Government should be able to deliver”.
Indeed, it is for the final user or taxpayer—who funds government—that this relationship between politicians and the service must be world class. People are unhappy when “few ministers or officials” are,
“held accountable when things go wrong”—
“things” which affect their universal credit or other bits of their lives—or when they see their taxes frittered away on expensive mistakes, which does happen. I, too, spent Christmas reading The Blunders of our Governments, which documents not just ministerial errors and the astonishing waste of public money but the often faulty relationship between policy and delivery, as well as the need for less churn, more niche expertise and changes in accountability.
The noble Lord, Lord Hennessy, has done us a major service. First, he quoted the words of the Prime Minister, who, despite being head of the whole service, has said little on this—worse, his odd criticism, such as saying that the service is the enemy of enterprise, has hardly helped relations. Secondly, the noble Lord has, in his inimitable style, recalled “the lustrous quality” of our,
“non-politically partisan public service, transferable from one Government to the next, along with its perpetual duty of speaking truth unto power”.
Indeed, the role of politicians should not be overlooked, as the noble Lord, Lord Norton, and other noble Lords emphasised today. The service does not work in a vacuum but as part of what the noble Lord, Lord Hennessy, calls, “the governing marriage” between temporary Ministers and permanent officials. Sadly, most of the bundle of reports concentrates only on the Civil Service, omitting what Ministers might do differently to make it more effective—whether in the complexity of laws or procedures, the lack of devolution or our constant demand for new skills to fulfil new tasks.
As has been acknowledged, our Civil Service is admired around the world. It is politically impartial, with core values of integrity, propriety and objectivity, and it has the ability to transfer its expertise and loyalty from one Government to the next. However, that does not mean that there is no need for change. In a fast-changing world, with new technologies and new forms of service delivery, the Civil Service itself wants to change, to meet the increasing demands of government and the higher expectations of the public. That means addressing skills gaps in procurement, accountability and performance management, the integration of corporate functions and better delivery of major projects. We need the best people to be recruited, trained and retained to deliver quality service and—yes—to be reflective of the population that they serve.
However, the Government’s progress report on the Civil Service capabilities plan gave it a red rating for lack of implementation, while the Jenkin committee—Jenkin junior—wrote of,
“increasing dysfunctionality in aspects of the Civil Service key skills”.
The Public Accounts Committee noted that commercial and contracting skills remain weak. There is a lack of leadership expertise, with only four of the 15 Permanent Secretaries of delivery departments having significant operational delivery or commercial experience. Processes for overseeing major projects lack teeth and are seemingly unable to stop ill conceived or poorly managed projects, while the MPA lacks power.
Some of the Government’s policies have merit, such as greater scrutiny of major projects, reduced turnover of senior responsible officers and integration of corporate functions. However, as the Minister for the Cabinet Office has admitted, the implementation of many of these reforms has been poor and slow to start. Meanwhile, the PAC claims:
“The existing accountability arrangements for permanent secretaries are inadequate”,
and that senior civil servants are not held accountable for poor performance, while good performance is not properly recognised.
There are challenges. Constancy of change is a feature of any large organisation, but the skills and attitudes of civil servants need to reflect the ongoing change challenge. There is a need to provide proper support for Ministers, including in their political role, from a high-functioning, responsive and sufficiently political office, while avoiding what the noble Lord, Lord Hennessy, calls the “politicisation” of the senior Civil Service when aligned with greater political input into the choosing of Permanent Secretaries, and the noble Lord’s fear of turning Whitehall into Washington. These issues are too serious to be undermined by overt denigration of the service—by what Truth to Power describes as,
“the vehemence of Ministers’ criticism of the Civil Service”,
or by scapegoating a few officials rather than addressing shortcomings in systems and culture. Morale is key to a high-functioning service, and we damage that at our peril.
The plea for a parliamentary commission from the noble Lord, Lord Hennessy, the chairs of 17 committees and the majority of noble Lords who have spoken today should be taken seriously. We remain open-minded, as we are still examining Civil Service reform as part of our policy review, while the timing of any such commission presents its own challenge. There are changes that need implementing in 2015 and we must be sure that any such commission would not distract from, or undermine, reform efforts either in this Parliament or the next. We have heard great words of wisdom today and we look forward to a similar response from the Minister.
Lord Wallace of Saltaire (LD)
My Lords, that is a pretty firm pass. It is very good to be back after a period away, although this is the first time I will have tried to stand for 20 minutes non-stop. I do not regret the need for this debate and I was rather puzzled that the noble Lord, Lord Hennessy, said that in his opening remarks. It seems to me that it is exactly the job of this House to debate the principles of government to see where we think government may be going wrong. We are, in effect, the institutional memory—though some of us can remember rather more than others. In dealing with a number of papers over the past 10 days, I have been very struck by how the institutional memory does not go back much beyond about 1990; however, mine does, so I was able to say, “No, the problem did not begin then”. That is precisely the sort of thing that we should be doing here.
I should declare a few interests. I am a member of the Civil Service reform board. My wife was a civil servant for seven years, at a time when the Civil Service was pretty unfriendly to women with children. My daughter is a civil servant, at a time when the Civil Service is very friendly to women with children—I am happy to say that that is part of the transformation over the past 30 years.
As a young academic, in 1977 I published a study of Whitehall’s management of Britain’s international relations and then got caught up in a government review, the Berrill report, of much the same thing. I vividly remember being carpeted in the Paris embassy by Sir Nicholas Henderson, who thought that I was a dangerous radical suggesting all sorts of things that would undermine Her Majesty’s Diplomatic Service—and, indeed, the Diplomatic Service saw off the Berrill report pretty firmly. That was a mistake. It is part of the problem that we have with the absence of language skills across the Civil Service at present that we did not think, as the Berrill commission and others like me were saying, that we needed to spread those skills across the Department of Trade and Industry and other departments. The internationalisation of government is one of the revolutions that we have been running through since then.
Over the past 30 or 40 years, Whitehall and the British Government as a whole have had to cope with a whole series of changes. I have mentioned internationalisation, but we have also seen the gradual centralisation of the delivery of public services—first across the country and then with the partial reversal of that in the establishment of the devolved Governments—which has left England as the most centralised country in the advanced industrialised world. I hope that what the coalition Government is now doing with city deals is beginning to reverse that. That will have implications for the central Civil Service.
The expansion of public services, particularly the provision of welfare and health, is running up against the limits of the capacity of government to finance the services being provided. That is one of the underlying problems that any Government of any party will face in the coming years.
Over the past 20 years, there has also been the growth of outsourcing and contract management. The move away from lifetime employment has been a matter not just for the Civil Service but for our entire economy and society. It has been recognised that the accumulation of skills from shifts in post in your career helps you on your way to reaching positions of responsibility at the top—particularly, the need to acquire management skills, which the Civil Service has been much concerned about.
Of course, there is also now the digital revolution. The Government have been behind the private sector in moving from paper to digital exchange, but I am happy to say that through the Cabinet Office—Francis Maude and others—they are doing their utmost to catch up. One of the most effective pieces of insourcing in which this Government have been engaged is the creation of the Government Digital Service. This is made up of a number of bright outsiders who hate wearing ties when they come to work but who are very good at pushing forward the revolution that we need in this respect.
There has also been the revolution of the coalition Government, to which the Civil Service has had to adapt. In my experience, a number of civil servants have adapted extremely well to the tactful ways in which Ministers of two different parties have to be treated. There has been a need for adaptation while, as a number of people have argued, sticking to the core principles of Northcote-Trevelyan.
On the concept of civil servants following the national interest, we no longer talk about them as being “servants of the Crown” but the noble Lord, Lord McNally, talked about the ethos of public service and a sense of altruism as being important parts of what they believe in. That ethos has been undermined to some extent, particularly on the economic right, by the growth of public-choice economics and by the philosophies of Ayn Rand which have come across the Atlantic, but I think that all of us here would hold to the idea that service to the state and the concept of public service are important parts of what holds government, the Civil Service and society together.
The noble Lord, Lord Marlesford, referred to the transformation of the Civil Service in terms of diversity and gender. It is encouraging how many bright young women there are coming up in the Civil Service. I think that eight of the 36 Permanent Secretary posts are now held by women—that is not enough; it was rather more two years ago and we hope that it will again be rather more in a few years’ time. There is real diversity across the sector. When I travel to other countries, it seems to me that at every embassy that I visit the economic counsellor is of south Asian extraction. Lots of bright people, men and women, are coming through the Civil Service. That is one of the achievements in particular of the Blair Government and, within the Foreign Office, of Robin Cook. We recognise that that has helped to take us forward.
On the issue of a parliamentary commission, the Government are not persuaded of the need for a vast commission. The noble Lord, Lord Hennessy, is too young to remember some of the royal commissions of the past. When he was probably still at school, I was a junior adviser to the Crowther-Hunt Royal Commission on the Constitution. If he has the nine volumes on his shelves, he will find in volume VII a paper that I wrote. The commission took several years and almost no one now remembers it. We are hesitant about getting back to the circumstance in which, as they used to say, such commissions “take minutes and years”.
The Prime Minister did say to the Liaison Committee that he is not entirely closed to the idea of further inquiries. As the noble Lord, Lord Norton, suggested, it would be more helpful if we took one chunk at a time rather than tried to take the whole thing. For example, there is the question of the relationship among Ministers, civil servants and Parliament. The noble Lord, Lord Turnbull, talked about the role of junior Ministers and how many we may need, which is a rather fundamental issue for the future of the relationship between Executive and legislature. The noble Lord, Lord Waldegrave, suggested that we look at the future of the Civil Service Commission.
Through committees and in debates, there are a range of things that this House and the other House should be encouraged to do. That is a different exercise from saying that we need to start again and re-examine the principles of Northcote-Trevelyan, of Haldane or indeed of Fulton.
Lord Butler of Brockwell
Will the Minister confirm that Parliament can look at these things, in toto or seriatim, only with the consent of the Government? Can we expect that the Government will be more encouraging than they have been so far?
Lord Wallace of Saltaire
My Lords, I am not entirely sure what the position on this is, but I suspect that there is a formal position and an informal one. Parliamentary committees inquire into a great many aspects of government, and that is welcome and will no doubt continue. I think that where a good case for a parliamentary inquiry is made, the Government will not obstruct it.
Lord McNally
I think that the noble Lord, Lord Norton of Louth, may have been on to something. This House can set up its own committee if the Government were so stubborn as to try to stop any other route. This House can do it and may have to.
Lord Wallace of Saltaire
My Lords, the Government are not opposed to intelligent inquiry by Parliament. One of the many things that has changed over the past 40 years is the relationship between Parliament and civil servants. Parliamentary inquiries by my honourable friend Bernard Jenkin’s committee, Margaret Hodge’s committee and others are a regular part of life in a way that they were not 40 years ago. That is a desirable development. We are now having to think about how we rewrite the Osmotherly rules to fit in with this new development.
I have heard a diversity of views in this debate about how far civil servants and senior officials should be directly answerable to Parliament for the major projects that they have been leading. That is another area that is worth examining. After all, we are light years away from the Crichel Down affair, when a Minister resigned over a failure in his department about which he knew little. We would not want go back to that. This is another area where the relationship among Ministers, senior officials and Parliament has evolved, and it will no doubt need to evolve further.
Lord Forsyth of Drumlean
I think I heard my noble friend say that the Government were not opposed to a parliamentary inquiry into the Civil Service. Does that mean that, should Parliament decide to set up an inquiry, it would have the support of the Government?
Lord Wallace of Saltaire
My Lords, I said that the Government are not opposed to parliamentary inquiries. The Prime Minister is not currently persuaded of the case for a massive commission of inquiry of the sort that my honourable friend Bernard Jenkin’s committee recommended. No doubt there will be further discussion on that and on the sorts of topics that it would be reasonable to address.
I turn to the politicisation of the Civil Service, which a number of noble Lords have touched on and expressed concern about. In my experience over the past three and a half years, I have found special advisers, both those within the Deputy Prime Minister’s Office and those working for Conservative Secretaries of State, to be extremely helpful in easing the relations between the coalition partners and in assisting private offices in the division of work between what is entirely administrative and what becomes political. Perhaps it would be appropriate for a parliamentary committee to look at the expansion of special advisers but I certainly would give evidence in favour of their usefulness in the scene. Whether or not the expanded ministerial office will be that different from what one saw in Gordon Brown’s private office, for example, where the spads were very much part of the office, I am not entirely sure. Again, we should recognise that practice has already evolved and will evolve further.
There has also been concern about the question of choice in Permanent Secretary appointments. We have been round this many times before. I am old enough to remember as a student the great spat between Richard Crossman and his Permanent Secretary. Since then, a number of Secretaries of State—Jack Straw and others—have insisted that they have in effect chosen their Permanent Secretaries. This is an area in which it seems that the recent suggestion that the Prime Minister should have the ultimate say on the appointment of a Permanent Secretary is an acceptable move in this evolving set of relations.
The move to fixed-tenure Permanent Secretary appointments also seems a worthwhile step forward. We are conscious that there has been a fairly rapid turnover in the past two years, although I point out that the average tenure of Permanent Secretaries currently in place and those who have retired since 2010 is about four years. This is not too violent a change.
How do we strengthen Civil Service accountability? That takes us to the Osmotherly rules and the question of how far Parliament and parliamentary committees should be examining officials directly. We have already gone a long way down that road, as we well know. That requires some further study and investigation because of course one wants to protect officials from too aggressive parliamentary scrutiny. That question therefore relates to Parliament as much as Ministers.
The Civil Service reform plan has been very much concerned with the capabilities, skills and training of the senior Civil Service and with contract management and improving commercial skills. I said to one of my former students the other day that I was not entirely sure about the recommendation that there should be substantial additional payments for some senior officials. I had my ear chewed off by a bright young civil servant who said that we need to buy in commercial and management skills from time to time and if we have to pay more for them it is worth doing. That, after all, is part of what we are now trying to do.
We are carrying through the digital revolution. I have just written a rather sharp note to the Department for Transport about some of the design problems in the DVLA online form for over-70s renewing their driving licence, and had an extremely good reply from the Secretary of State. We are improving, as noble Lords know. The gov.uk website received an award last year.
The role of the head of the Civil Service has also been touched on. Over the years, we have moved from a combined head of the Civil Service and Cabinet Secretary to occasional splits between the two. From my time on the Civil Service Board, it seems to me that the current division works well. Others in later periods may differ again, but that is the preference of the current Government.
Having now worked in five different departments in the past four years, I am concerned about the gap between the departments and the centre. The obscurantism of one or two departments—unnamed—is worrying. The difference in quality of civil servants at the middle level in a number of departments is worrying. Therefore, I am strongly in favour of providing more shared services from the centre as we hope to shrink the central administration and push more delivery down to the local level.
This has been a worthwhile debate. I come back to where I started: the noble Lord, Lord Hennessy, should not regret having to call for a debate such as this. It is very much the job of the House of Lords to hold debates about the structure of government and the nature of the state. That should be part of our prime purpose. There is an awful lot of institutional memory inside this Chamber. Sometimes perhaps we think that there was a golden age or that we would like the world to be the way it was 20 to 30 years ago, without fully recognising the challenges we have now. Nevertheless, we have a great deal to contribute.
I thank all those who have contributed, one or two of whom I can remember interviewing when I was a junior academic—
Lord Forsyth of Drumlean
Before the noble Lord concludes, will he deal with the serious point I made in my speech, which the noble Lord, Lord Kerr, also raised, about the upholding of the Civil Service Code and the failure of that to be done in Scotland, and the responsibility that lies with the head of the Civil Service in England because of the precedents it will create to deal with this?
Lord Wallace of Saltaire
My Lords, I would prefer to write to the noble Lord on that extremely sensitive issue. I think he will understand why. Such matters under the Civil Service Code are for the Scottish Government in the first instance and will be dealt with by the relevant Permanent Secretary. But I will go back and write to him. I know where he is coming from and the point he is trying to make.
We have had a worthwhile debate. It is very good to have a range of different contributions from people who have seen the evolution of British government—
Lord Elton (Con)
My Lords, I am sorry to interrupt, but will the noble Lord add the usual assurance that he will provide a copy of that letter to the Library?
Lord Wallace of Saltaire
I will certainly provide a copy of the letter to the Library.
I look forward to the next debate in this House on the Civil Service and perhaps to the ad hoc committee that the noble Lord, Lord Norton of Louth, might succeed in persuading the authorities to have. This is a subject that we need to continue to discuss, although not necessarily through establishing very large and long-lasting joint parliamentary commissions.
Lord Hennessy of Nympsfield
My Lords, we have had a terrific debate. I am aware of the clock and I shall be brief.
First, I thank the noble Lord, Lord Wallace of Saltaire, for the care and thought of his reply. But I must express some disappointment about his views—reflecting the Prime Minister’s views, as he says—on the big inquiry, although I note what he says about little inquiries. No doubt we shall come back to that.
I thank, too, my stellar PhD student, the noble Baroness, Lady Hayter—terrific PhD student, like no other—for her and the Labour Party’s open-mindedness on the big inquiry. Above all, I thank all noble Lords who have contributed to the debate for their multiple wisdoms, the cornucopian wealth of their cumulated experience and their stimulating reflections. I think it is a record that we have had five former Cabinet Secretaries speaking—I do not think we have had five breathing at the same time before.
A final thought: the Hansard of today’s debate could serve as a very fine submission, a very good briefing paper for the inquiry, in whatever form it comes, whenever it comes. It is just a matter of time. Today’s Hansard will be up there, shimmering, ready. I beg to move.
25th Anniversary of the World Wide Web
(10 years, 10 months ago)
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Baroness Lane-Fox of Soho
That this House takes note of this year’s 25th anniversary of the World Wide Web and its effects on society in the United Kingdom.
Baroness Lane-Fox of Soho (CB)
My Lords, I start by thanking noble Lords for signing up to my debate. I must confess that, as I saw the list of names increase, I was slightly alarmed that perhaps people thought I was going to give some kind of technology master class in the Chamber. However, I think that noble Lords’ enthusiasm, and the breadth of experience that we will hear from this afternoon, is testament to the extraordinary impact this relatively new invention has already had on all our lives.
I first began grappling with the opportunity of the web in 1997 when Brent Hoberman and I co-founded lastminute.com. We were on an evangelical mission. We had to convince suppliers, customers and investors that the internet was here to stay, that the web was not going to blow up and that it was safe to buy things online. Imagine the landscape then: no Facebook, no Google, no Twitter, and certainly no smartphones. What a short time—and how much everything has changed.
The UK has a long history of technology breakthroughs. Sir Tim Berners-Lee’s invention follows on the footsteps of Ada Lovelace’s first computer program, which she wrote for Charles Babbage’s analytical engine in 1842. Obviously, the Bletchley codebreakers deserve a mention for their role in helping us win the Second World War.
I now find the web’s usage numbers not even surprisingly huge any longer: 2.4 billion people worldwide use the web; 1.2 billion are shoppers online. To put this in context, the rate of adoption is warp speed. It took 38 years for the radio to reach 50 million users, it took 13 years for television, it took four years for the web and it took 10 months for Facebook.
The fastest growing demographic using social media is the over-55s. Africa has the fastest growing number of web users, with Nigeria having the largest number; 47% of them are accessing the web via their smartphones. More than 55,000 projects have been started on the crowdfunding platform Kickstarter, most of which would never have got started without it. In the UK alone, £4.6 billion has been earned by people sharing their products and services using what is called the gift economy through sites such as Airbnb or Zopa.
The web has transformed the way we work, the way we interact and the way we play. Some of health’s greatest challenges are being rethought. Millions of so-called citizen scientists are plotting cancer gene patterns via online games. Early intervention in dementia is becoming more common after the success of an online test for patients. Education is being opened up on a global scale through the use of massive open online courses, from Khan Academy’s tutorials to Coursera’s degrees.
All industries are being disrupted. Farmers in Ghana are saving time and money by using their smartphones to trade their products before the long walk to market begins. Underprivileged women in South Africa are breaking out of the cycle of poverty after training that enables them to help US customers with their technology problems.
Even the animal videos posted online—much mocked by some—are now enabling scientists to gather meaningful data about animal relationships that would never have been accessible before. Noble Lords may have seen the BBC’s brilliant documentary “Animal Odd Couples” based on this.
Beyond the hyperbole, this 25th birthday—and as part of that, I hope, this debate—is a good moment to reflect on all these different aspects to the web. The UK’s relative position on the technology stage is a complex one. There are many areas where we lead the world. Products and services delivered online now account for at least 10% of UK GDP. We have the highest proportion in G20 countries. The British are the most advanced online shoppers on the planet. Estimates are that in 2014 e-commerce will be 20% of total UK retail. The UK internet sector is bigger than the health, education or construction sectors. Britain has created some world-leading businesses—Asos, Moshi Monsters and, dare I say it, lastminute.com.
London is becoming a significant tech hub, but it is not alone. Edinburgh, Bristol and Brighton are all seeing record numbers of digital start-ups. Our location and our language mean that we are a vital part of every dominant global web business. London is the only English-speaking city in Facebook’s top 10 and we have the highest number of Twitter users on the planet.
The Government are also making some big strides in how they embrace the web. Through the Government Digital Service, which I am proud to have played a small part in creating, the Government are leading the way for open data, open standards and digital government. The government digital platform, gov.uk, even won a design of the year award from the Design Museum—surely a world first.
This year, coding will be part of the school curriculum and all children aged five and above will be taught computer science. The UK now has the most visionary policy in the G8 for educating children. Yet we face some big challenges. There are 11 million adults who lack the ability to do four basic things online—communicate, transact, search and share information—and to do these things safely. Of these, 50% are over 65 but 50% are of working age in a country where 90% of new jobs require basic online skills and many vacancies are advertised only online. In addition, only 30% of small businesses are able to transact online, meaning that they miss out on both huge sales and savings. Go On UK, the cross-sector charity I chair, estimates that there is £68 billion of value to the economy if we address these adult skills.
We will need to fill 1 million technology sector jobs by 2020, which is looking nearly impossible from our current workforce. More depressingly, the number of women in the UK tech sector is actually falling as an overall percentage. If current trends are not reversed, only 1% of the sector will be female by 2040. Looking around the Chamber today, I am sad to see that this does not seem an alarmist statistic.
Despite the Government’s ambition to improve our infrastructure—I welcome Maria Miller’s announcement this morning about a rural broadband fund—we lag far behind Taiwan, Korea and Japan for universal coverage and a long way behind Singapore or Korea for available average speeds.
I am constantly surprised and frustrated that the only local website in the top 10 most visited websites in this country is the BBC. So although we start as many digital businesses as anywhere in the world, we do not scale them and we do not compete with the global web businesses in the world.
Finally, and perhaps most seriously, we do not have the skills and understanding of the digital world at the top of our corporate, public and political life. This leads to a lack of high-quality decisions about our future—a future where so much will inevitably revolve around technology. Only four FTSE 100 businesses have a CTO or digital executive on their plc board and yet all these businesses face huge upheavals.
Turning to Whitehall, the picture changes again. Just think of the UK Government’s reaction to the Snowden allegations. The political discourse lags far behind that of the US, where an expert panel has looked into the NSA’s claims about the necessity of data gathering and found that only one case was solved by the bulk collection of data—just one, and that was a small incident of money-laundering. We are woefully quiet on the subject of liberty versus security. Allegations that GCHQ and the NSA worked to undermine encryption should caution anyone who trusts the web with their medical, financial or personal records. To add to the complexity, the technology landscape is not remotely stable but is changing at mind-boggling speed.
We face hard questions as we grapple with the technology we already know about, let alone that coming up in the future. What should be the regulation of personal drones? How do we regulate driverless cars? How do we protect against increasing cybercrime? What are the privacy implications of wearable technology? What is the IP of a 3D-printed object in your home? How do we teach children about online identity and anonymity? How do we protect the free flow of information around the world and avoid a balkanised web? How do we make sure that we have the understanding and experience to debate these areas effectively?
To celebrate this anniversary year, Sir Tim Berners-Lee wants to kick off as many open source-style, local discussions as possible to try to answer the question, “What kind of web do we want?”. I would construct my answer by going back to what I imagine were some of his guiding principles in 1989: inclusion, by making sure no one is left behind demographically or geographically; freedom and transparency, by making sure that consumers understand the quid pro quo with the handful of big companies whose services they mainly use without obvious charge; and openness, by making sure no Government can control access and content. This is tested every day. Just this weekend, the Turkish authorities announced a clampdown on websites and a new wave of censorship.
The web has immense power. I find something magical and remarkable on it every single day, but I agree with Sir Tim. We need to talk about the web we want. We need to pause for breath and perhaps be more conscious of the next 25 years of development. At the moment, we are sleepwalking into assuming that the platform underpinning so much of our daily life is not changing.
I should like to ask the Government two questions. First, what plans do they have to mark this extraordinary global invention that should be a brilliant inspiration for the next wave of British inventors? Secondly, do the Government agree that a fitting tribute to Tim’s vision that this is for everyone would be to review the billions government invests annually in adult skills and employment training to ensure that digital skills are embedded throughout the whole of our society?
Lord Chadlington (Con)
My Lords, first, I thank the noble Baroness for initiating this debate. As a distinguished entrepreneur who quickly saw the commercial opportunities that the internet provided, she has gained an iconic reputation for understanding its potential role in every aspect of modern life. Her words today confirm how privileged we are to have her leading this debate.
My contribution is inspired by my first-hand experience of a 94 year-old friend who is determined not to be excluded. He has combated bereavement and loneliness, kept mentally active and even, perhaps, deferred or diminished the onset of mental illness by becoming internet-proficient. In the UK today, there are 10 million people over 65, and by 2050 there will be more than 20 million. Some 11% of one-person households over state pensionable age had internet access in 2000; today it is more than 40%. However, as the noble Baroness pointed out, there are still around 6 million pensioners who have never used the internet. Seventy-five per cent of people in the UK who are over 75 consider themselves lonely. My 94 year-old friend would never consider himself lonely. For him, the internet is infinitely flexible. Online book groups, staying in touch with friends via e-mail and texts, Skype calls and downloading music and videos keep him alert and interested in the world outside. A Dutch survey confirms that people who feel lonely are significantly more likely to develop clinical dementia than those who have no such feelings.
For many older people, the internet empowers them. They are starting small businesses, going on virtual world tours, learning how to stay healthy and even learning to play a musical instrument. Recent research suggests that video games help keep brains alert and improve cognitive function and hand-eye co-ordination. The gaming industry is now looking to develop more video games specifically tailored for older people. Dr Gary Small, a professor specialising in ageing at the University of California, points out that internet surfing uses more brain activity than reading. “It seems”, says Dr Small,
“that people who are more adept with internet technology are likely to remain mentally agile”.
The internet is a global boon to those who are retired, alone, ageing, no longer as active as they were and facing the potential slowing of their mental faculties. Their ability to access the internet, particularly via their TV, a friend they really understand and love, rather than via unfamiliar tablets and phones, will encourage even more of them to use it to the full. This morning, my 94 year-old friend had the last word. He sent me a message inviting me to join him on LinkedIn. I have no doubt that, although physically frail, his astute, inquiring and agile mind is due to his genes but also in no small part due to the invention 25 years ago of the world wide web.
Lord Young of Norwood Green (Lab)
My Lords, I congratulate the noble Baroness, Lady Lane-Fox, on inspiring this debate. My decision to contribute was a bit belated—a bit lastminute.com, if she will pardon the allusion—and given three minutes my speech will need compression techniques.
The cybergenie is well and truly out of the bottle. After a very panoramic view of the range and speed of development, there is not much I can add. No doubt 25 years after Gutenberg and Caxton revolutionised communications in the 14th century, there was a similar debate. I look at the right reverend Prelates, and I am almost certain that there was, given the way that quite contentious pieces of text were circulating.
What we know is that the world wide web—the internet—presents an enormous range of benefits and challenges. It is all pervasive, as the noble Baroness told us, in every sphere of our society, whether health, education, banking, retail, science or defence. The ability for the world to be a truly global place and for people to communicate quite cheaply using Skype is another profound change in the way people communicate.
There are lots of positive benefits but perhaps some of the biggest challenges that the Government face are things such as cybersecurity. Everything now rests on the web or the internet in one way or the other. Keeping that information safe is a big challenge. Only yesterday, we saw a horrifying use of the internet in child abuse and paedophilia. Young children in the Philippines were being used to gratify the obscene needs of some people scattered around the world. We have to look at all aspects of that. There is the question of taxing the companies which make enormous profits on the internet and the world wide web in a way that does not hamper growth but makes sure that they make a real contribution to the economies that they benefit from. Equality of access is another point to which the noble Baroness drew our attention. There is still a digital divide when it comes to speed of access and, for some, a generational divide. We need to do more to encourage the older generation to participate, as the noble Lord, Lord Chadlington, said in his contribution, although I think that as each successive generation comes along, they will be more able to do that, and the younger generation to be internet savvy. I agree with the noble Baroness that the essential skills that employers need are not just literacy and numeracy but computer skills as well.
We need to remind ourselves that 50 years ago Gordon Moore came up with Moore’s law. For those who are not aware of it, it says that every two years the number of transistors on a chip will double. Without that vision and the determination of industry to provide it, the internet would probably be a lot slower. We need to remind ourselves that we have more power in our mobile phones than they had when they landed the first man on the moon.
What do we want the Government to do? The Government should encourage the older generation to participate and perhaps have an overall digital strategy to ensure that society as a whole benefits from the world wide web and the internet. I am an incurable optimist so I believe that the internet glass is half full.
Lord Clement-Jones (LD)
My Lords, I, too, congratulate the noble Baroness, Lady Lane-Fox, not only on opening this debate in such an inspiring way but on so successfully carrying out her role as the Government’s UK digital champion.
The use of the internet in the UK climbs inexorably. We celebrated the universality of the web at the Olympic opening ceremony with Sir Tim Berners-Lee tweeting, “This is for everyone”—a phrase mentioned by the noble Baroness—which was instantly spelled out in lights attached to the tablets on the seats of the 80,000 people in the audience. I absolutely share the noble Baroness’s concern to ensure that no one is excluded.
Having come to the web myself some 20 years ago, and now standing here with my iPad with all its apps, I still find the speed of developments since I first used the Netscape browser quite extraordinary. Sir Tim and the early pioneers of the web deserve huge recognition for setting the open and neutral standards that ensured the growth of the world wide web. However, the development of ethical safeguards and standards now needs to evolve at the same pace as the range of applications. The web is not some kind of foreign country where ordinary rules of conduct do not apply. We need an alignment of online and offline rights and protections. Freedom of expression is a vital principle that needs to be upheld both online and offline but it needs to be balanced with rights of privacy.
One commentator has said that Silicon Valley appears to regard privacy as a “marketable commodity”. The Government, through what we now know about their access to the Prism programme, appear to have a similar view. It is vital that we have maximum control over our own metadata. The UK’s ranking in the World Wide Web Foundation’s Web Index is reduced by concerns over the UK Government’s attitude to privacy rights. I hope that Communications Data Bill will not resurface in its previous form. Therefore, I welcome the campaign, the Web We Want, and the statement of 19 December co-ordinated by the foundation.
I also welcome the recognition by the Prime Minister and the Secretary of State for Culture, Media and Sport of the need for adequate filtering to protect young people from online abuse. However, as was discussed in this House only recently with the Online Safety Bill of the noble Baroness, Lady Howe, should we not be making filtering compulsory? Is it enough simply to leave it up to parents to make the choice about appropriate safety features?
There is concern about the content of online music videos, highlighted among others by Reg Bailey in his review into the commercialisation and sexualisation of children. The proposed amendment to the Video Recordings Act is designed to ensure that content presently exempt from classification but unsuitable and potentially harmful for younger children will in future require BBFC classification. However, it covers only hard copy video works. Should not online music videos containing sexual or explicit content be subject to the same age ratings and regulations? As my right honourable friend the Deputy Prime Minister has advocated, we also need better guidance for young people about the dangers of online pornography.
I also ask my perennial question to my noble friend the Minister. When can we expect full implementation of the Digital Economy Act 2010 or at least an alternative effective remedy to combat online copyright piracy? I look forward to the Minister’s reply.
Lord Crisp (CB)
My Lords, I, too, congratulate my noble friend on securing this debate and on setting the scene so brilliantly. In my three minutes I will speak only of health, where the world wide web already contributes enormously but where there is much more to come.
The web enables clinicians to access information where and when they need it, which is ever more important in a world where, for example, there are now more than 6,000 different disease entities. It also enables them to consult colleagues. Organisations such as the Swinfen Charitable Trust, run by the noble Lord, Lord Swinfen, and his wife, allow clinicians in even the most remote and isolated locations in the world to consult a network of clinicians in every discipline. The web also helps meet patients’ demand for information and empowerment. For example, there are 27 million views of NHS Choices a month and 1 million patient reviews of services on the site. It also allows for the remote monitoring of patients where, with the whole system demonstrator, the NHS leads the world in terms of evidence-based use of this technology at significant scale. There is even patient self-treatment. There is an excellent programme called “Beating the Blues”, which is designed to do exactly what its name implies, and I wonder whether this is the first internet-delivered treatment available on NHS prescription. If so, I am sure there will be many more.
A very important point has been made about inclusion, where again there is much to do. The sickest are probably the least able to access help electronically, but conversely the web offers much greater reach to people than otherwise. I pay tribute to the noble Baroness, Lady Lane-Fox, as the nation’s digital inclusion champion.
However, progress in health has not, perhaps, been as a fast as one might have expected because behaviour change is slow in health and redesign involves many other aspects of health systems. This is problematic but not necessarily always a bad thing. It is important that, in a subject as crucial as people’s health, evidence of impact and effectiveness is properly weighed and we should not rush in just because something seems attractive.
I conclude on a point where we need national and international co-ordination. I am privileged to be one of the Global eHealth ambassadors, in a programme chaired by Archbishop Desmond Tutu. It exists to promote telemedicine and e-health globally. It sees e-health as a means of transforming healthcare delivery to make it economically and socially much more sustainable. It campaigns for some standardisation of systems and methodologies in e-health to ensure that data can be properly shared and that every clinician can judge the reliability and effectiveness of the electronic tools they are offered. We need a global framework for this. This is very ambitious but much of the infrastructure to sustain that transformation already exists. The programme gives an example of one of those wonderful internet facts. It asserts that there are now more cell phones in Africa than toothbrushes. I am not sure that we can verify this assertion but we have known for years that toothbrushes are essential for health and we now know that cell phones and the world wide web are even more essential.
The Lord Bishop of Derby
My Lords, I, too, congratulate the noble Baroness, Lady Lane-Fox, on introducing a party into this Chamber. Perhaps the screens should have moving images and the lights should move much more quickly.
The world wide web is a wonderful development but it is full of challenges. It is a mixed bag, as we have heard from a number of noble Lords. Regarding health, I was part of the IF campaign for enough food for everybody, and the web enabled that campaign to involve all kinds of people. It was inclusive, flexible, transparent, participative and enormously successful. The web is the new political tool.
On the other hand, I have been involved in debates in the past couple of months in this Chamber—as the noble Lord, Lord Clement-Jones, hinted—about online pornography, the objectification of women and the bullying of young people. There is a dark side to the internet and we should not be surprised at that, given that this is human nature engaging with a wonderful invention with all kinds of dark possibilities.
I am reminded from my experience of being a university teacher that when students writing an essay searched the web to fill up a couple of pages, you could always tell—the information just did not fit with the main argument because they did not understand the angle it came from. The information that the web is so wonderful at making available needs interpretation. Wisdom is interpretation on a very wide scale—a big picture—and the bigger the picture, the more you can see, appreciate and interpret.
The marvel of this world wide web is that you can now hold it in the palm of your hand, and, with one finger—or two thumbs, if you are more dextrous than me—control the web and have the information come to you. That raises huge questions about how we help people interpret all the information, temptation and possibilities. My simple question is: what is the role of a Government concerned about human rights and human welfare in trying to give people a hinterland and some tools, with allies—which allies the Government would recognise is another question—so that there is a big picture to help people interpret? People talk about giving parental control. That is a technical solution, but parents and others need a kind of hinterland; a wider vision with which all this information can be processed, evaluated and deployed creatively.
Lord Holmes of Richmond (Con)
My Lords, www.chrisholmes.co.uk—if I am not in the Chamber, that is where you can find me. That is the point; we all need an online presence, or at least an online connection. If we want the best shopping deals, the cheapest flights, the best hotels, or if we want to interact with local or national government, we do so online. When I was a schoolboy, 25 years ago, I had no idea about the world wide web or its potential; I was still playing on my ZX Spectrum.
Latterly, at the Olympic and Paralympic Games, when we were making the Games’ website, we were profoundly aware of the impact that it could have. It was the most visited website of the year, reaching billions around the world to become the first truly new-media Olympic and Paralympic Games. That is the point; we need to be online, and yet millions suffer on the wrong side of the digital divide, for reasons of age and geography, for social and economic reasons, or because of disability-related factors. Disabled people who are currently offline number 3.8 million. This has to change. We need to look across the piece at the skills, kit and technology—and, crucially, at ensuring that the best broadband is rolled out right across Britain. I ask my noble friend the Minister to comment specifically on all the points around broadband.
The coming decade will be fascinating, not least in the relationship between our on and offline environments, such as the connection between bricks and clicks in retail. Click and collect was excellently delivered this Christmas by our retailers, not least John Lewis. In a wider context, to see how the internet has impacted politics, we should look to Libya and Egypt. There is all this to come, and the time moves so quickly in this internet age.
Similarly, considering where the next steps will come from, we have already heard about issues of online security. As Eric Schmidt of Google said, “Mea culpa, we didn’t think criminals would show up”. It is crucial that we make this environment safe and secure. A lot of that will tie in with the quality and credibility of the content that is online: how it is ranked, how we access it, whether we can rely on what we are reading online and how we can make sure that we are secure while we are there.
In short, we have to consider accessibility in its widest possible sense. We have to consider usability in its widest possible sense. As has already been mentioned by noble Lords, we need inclusion and inclusivity in their widest possible senses. We need to ensure that we do not construct in the internet world artificial, exclusionary barriers and steps in cyberspace.
Baroness Kidron (CB)
I, too, thank my noble friend Lady Lane-Fox for bringing a party to the House and apologise for raining a little on the parade. I declare an interest as having recently made a documentary film about teenagers and the net. I am specifically raising the issue of how data relate to young people today.
Unlike the early cry of “free, open and democratic”, we are all aware that the web has become monetised with a value that is entirely dependent on harvesting data—data created by our interacting as much as humanly possible with the commercial platforms on the web. The millions spent on the vast and incremental experimentation of combining neuroscience and technology to keep us attached to our devices is not disputed by those who do it, but it fuels a culture of compulsion, disclosure and distraction that has a particular implication for young people who are not yet fully formed.
Our young people are growing up with devices that act as their telephone, post box, camera, scrapbook, family album, newspaper and school pigeonhole. In using those devices they routinely relinquish ownership of every interaction, private and public. It is worth reminding ourselves that, in this context, the data we are talking about are actually the intimate details of young people in their period of greatest personal developmental and social change. It is as if we are taking their bedrooms and putting them up for sale on eBay. We have allowed a situation to develop in which it is legal for a multibillion dollar industry to own, wholly and in perpetuity, the intimate and personal details of children. We all know that this space is moving so fast that we do not really know what might happen to it in the future.
In every other part of life, children are children, and we take a view on their level of maturity and accompanying levels of responsibility. We protect them from every other addictive substance. On the net, it seems, we are asking that they take responsibility on their own, even as we denude them of power over, and ownership of, their own histories.
I did want to come to the party. I was an early adopter and I love the internet. It has delivered previously unimaginable opportunities that hold within them the full gamut of human creativity, but it is not without cost. We have a responsibility in this House to ensure that it is not the next generation who pay the price. In July last year, the Prime Minister, David Cameron, said that,
“when it comes to the internet in the balance between freedom and responsibility we’ve neglected our responsibility to children … So we’ve got to be more active, more aware, more responsible about what happens online. And when I say we I mean we collectively: governments, parents, internet providers and platforms, educators and charities”.
I could not agree more.
At 25, the world wide web, unlike many of its young users, has reached the age of maturity. What better celebration could we have than designing and putting in place a regulatory framework that protects young people from the routine collection of their data, to be stored and sold in perpetuity without any recourse or protection?
Lord Giddens (Lab)
My Lords, I join the queue in congratulating the noble Baroness, Lady Lane-Fox, on having initiated this debate, and say what a great addition she is to your Lordships’ House. That is my three minutes more or less gone.
I will be more extravagant than most other speakers so far and say that the internet has been the greatest transformative force in history bar none, because of the speed of its transformation; as has already been mentioned: it took 20 years. The invention of writing is perhaps the only parallel, but that took 5,000 years and was the prerogative only of elites. It is the greatest transformative force because of its scope, because it is the instrument of globalisation on a level never seen before; and because of its intensity—it enters all our lives. We see people going along the streets who cannot let go of their mobile phone. It has become an intrinsic part of who they are. There has never been anything like this before in history, so it is not surprising that it is rather difficult to come to terms with its longer-term impact.
I will make some brief comments on higher education and the advent of MOOCs. MOOCs are not a kind of medieval curse; the acronym stands for massive open online courses, which promise to be deeply transformative of universities. When I was running the LSE about 15 years ago, we all thought that the future of universities would be online. We had consortia with other universities in the United States, but that did not really work. The only experiment that worked a bit was with the University of Phoenix, which was more or less an online university.
MOOCs are transforming that situation. Now these courses are being adopted by the elite American universities: Harvard, MIT and Stanford. They promise to be both deeply shocking to traditional universities and also to add to their armoury. In this country we lag behind. The Open University is in the forefront, but the Americans—as before, perhaps—are well in the lead.
The advent of massive online courses will not see the end of the campus-based university, because such universities have other things to offer. We are not having this debate online, but in your Lordships’ Chamber. There is what sociologists call the “compulsion of proximity”—the need to be with other people—and the added value of having been to a campus-based university. However, massive online courses will probably transform universities as fundamentally as Amazon has transformed the book trade; that is the future they offer.
They also offer the opposite—the digital divide, which has been referred to by many people. Billions of people will be able to follow these courses online and interact with other people in real time, in seminar groups across the world. That will be possible for billions of people in Africa, for example. It will be like mobile phones; Africa will be able to jump a stage in the evolution of education.
I conclude by saying, “Don’t go all high-tech”, because back to the future will often be one of our political remedies. We used to think that the car was the instrument of the future, but now we are going back to bicycling and walking. That will be true of all areas. I wave my piece of paper, but that is not because I think I am just a remnant of a previous age; there will be many areas where simple, back to the future solutions will be just as important as technologically developed ones.
Lord Kirkwood of Kirkhope (LD)
My Lords, the great thing about anniversaries is that they happen every year. I suggest to the noble Baroness that she puts in her diary now the date 16 January 2015 and that we do this all again. I am making a sensible point there: we should be having annual debates about the effect of the digital revolution we face. I absolutely agree with the noble Lord, Lord Giddens, as the internet is certainly the most transformative thing that has happened in my lifetime and is something that we cannot ignore.
As chairman of the Information Committee in your Lordships’ House I was absolutely delighted—that is the only word I can use—when I heard that the noble Baroness was joining us, because I was sure that she would have an effect on the way we work. We have been engaged in parliamentary business for 700 years. We are now facing a change in circumstances that will require revolutionary methods of responding if we are not to fall far behind. The process of legislation that is the important duty of this House will become more difficult to deliver if we do not respond to the degree of challenge we now face.
I absolutely agree with the noble Baroness about the three or four values she set out as absolute necessities for the future: inclusion, transparency and openness, in that order. As somebody who is involved and interested in social security, inclusion for me is first: the last thing we need in this country is a digital divide that is exacerbated by leaving a huge proportion of our population behind. That is something to which we must attend.
In the next two minutes, I want to persuade your Lordships that we have a serious problem in the way we do business here if we are to keep up with the change that is coming. The nexus of mobile working together with cloud computing, social media and big data information that is about to happen to us, if it is not happening already, is extraordinary. If we continue to ignore it, we will be leaving the process of engagement and disengagement with Parliament in a much more difficult position over the next few years. Somebody said to me the other day that, by 2017, 75% of all government data will be in the public domain, so we cannot continue to go on the way we are going.
There is good news. Now that we have a completely wi-fied parliamentary precinct, which was a welcome decision by the administration, we will—although this will be troublesome for some Members, and I am sorry we cannot avoid that—be rolling out Windows 365 during the rest of this year. It is hoped that by the summer we will all be capable of moving and working at the same time. I exhort Members to take advantage of the possibilities now being offered.
However, in the future we need to get a plan for a digital political system of operating in Parliament. Otherwise, the public will leave us behind completely, which will not be good for Parliament or for the rest of the country.
Lord Berkeley of Knighton (CB)
My Lords, I thank my noble friend Lady Lane-Fox for bringing to bear her expertise, which I hope to test further towards the end of my three minutes.
Education is at the root of so much with which we concern ourselves in this House. What is the greatest prerequisite of education? I say that it is curiosity. When we think that, thanks to the web and the internet, I can in a second summon up a page of an original Bach manuscript, look at a detail of a Leonardo da Vinci sketch or put in a line of Shakespeare and have the context quoted back to me almost immediately, it is little wonder that students and children, young and old alike, find tuition and research on the web. We owe much to it for that.
Even your Lordships, when they cannot be here for a whole day, can keep au fait with what is going on in this House and, perhaps more fundamentally, taxpayers can see what we are up to and what Members are up to in the other place. I often wonder what Moses might have thought, had he had access to the web, and how much trouble it would have saved him, but then he probably would have been rather horrified at the way the commandments are being broken on the web as well as acceded to. Certainly, to pick up on an earlier remark, this morning’s news item from the Philippines is a good example of things that we have to be careful about and legislate against, for the web is a double-edged sword.
If I might speak now as a composer, there are problems. Frankly, I am hugely flattered when I find that people have accessed my music, legally or illegally, on the web. My publishers, record companies and instrumental players and singers are slightly less happy, because they do not get the rewards due to them. Here comes my challenge to my noble friend and to the Minister: really, there is a problem here. I love it that so many people come into my shop, if you like, but it is a worry that they can take things off the shelves without paying for them—a worry not only for the people I mentioned but for the bills that other composer colleagues have to pay. As the noble Lord, Lord Clement-Jones, said, we have not managed to deal with copyright exception measures, especially the copyright infringement provisions, which have not yet been implemented.
I know that this is a very difficult area to police, but if the noble Baroness and, in particular, the Minister, would look at this area, they would be doing good to a section of the creative industry that brings a huge amount into the economy, whether it be the Beatles, Radiohead, Coldplay, Peter Maxwell Davies or Harrison Birtwistle. You need to protect that which we are bringing into your economy.
Lord Mitchell (Lab)
My Lords, in thanking the noble Baroness, Lady Lane-Fox, for her magnificent speech, I must say that she and I belong to a very exclusive club in your Lordships’ House: we are both IT entrepreneurs, although there are a few others. I pay every tribute to all she has done. For the help she has given in the skills sector through Go ON and for the help she has given me in my role in Labour Digital, I thank her again.
In 1967 at the age of 24, I joined what was then called the data processing industry. I was a systems engineer, and the first central processor I ever worked on was an IBM 360/30. It had 64,000 bits of memory and it cost £65,000 to buy. The CPU was a huge box with dials and lights on it. It was kept in a dedicated air-conditioned environment and it must have weighed a ton. Input was via punched cards. Today, I have an iPhone 5 in my pocket, which has a million times more memory and costs one-thousandth of the price. It has no air conditioning, no punched cards and input is via touch or voice. This is Moore’s law in action, with processing speeds doubling every 18 months.
The world wide web needed not only massive leaps in computing speed but also massive leaps in communication ability. We all remember fax machines that connected at 9,600 bits per second—how fast they seemed then. My network at home has a speed of 100 megabytes per second—10,000 times as fast. We are witnesses to a revolution in digital that is every bit as dramatic as the Industrial Revolution was 200 years ago. Just as James Watt showed that steam could drive a machine and replace muscle, so Tim Berners-Lee’s invention of the world wide web has replaced the way we access data, communicate and organise our lives. As coal, oil, petrol and electricity give us energy to power our lives, so digital is now giving us mass access to swathes of information.
I would like to take a look at retail. In the UK, more than 3 million people work in this sector. If you compare the number of employees required for each £1,000 sold online against the numbers required for traditional retailing, the ratio is 1:3, so any move to online retailing is bound to cause significant reductions in employment. Last year, Jessops, HMV and Blockbuster all went bust due to their own technology myopia. There are many more to come. In the past week we have seen that, over the holidays, the quantity of retail sales completed online reached 20%—a massive increase. The retailers who are succeeding are those who embraced online many years ago. However, Morrisons was never interested in online retailing, and we have seen what is happening to that company.
I have cited retail, but I could have mentioned schools, universities, medicine or even government itself. All these sectors are changing at a very rapid pace. As other noble Lords have mentioned, the next big thing will be wearable technology. What we see before us is Joseph Schumpeter’s concept of “creative destruction” on steroids. The digital revolution is sweeping all before it. Those who embrace it will prosper, and I suspect that those who do not will mostly perish.
Viscount Colville of Culross (CB)
My Lords, I, too, would like to add my congratulations to my noble friend Lady Lane-Fox on such an inspiring introductory speech to the debate.
As some noble Lords have said, the internet, which Sir Tim Berners-Lee opened up in 1988, has become the greatest source of information and freely exchanged ideas in history. However, these early ideals are under threat as Governments struggle to try to control this source of free speech. It is not just in undemocratic countries that citizens face being cut off from free access to the world wide web; the threat to the freedom and openness of the internet extends into western democracies as well and concerns all of us in the United Kingdom.
I fear that the independence of the international organisations that run the internet is in danger. I would like to draw your Lordships’ attention to what is happening to two of these bodies. At the moment, an independent body, the Internet Engineering Task Force, decides on the protocols for the internet—that is, the nuts and bolts of how it is run. Its role is vital as it selects the technology to ensure easy and unimpeded movement of information, safeguarding security for people who bank, trade and move sensitive information across the net. Likewise, ICANN, the phonebook of the internet, is an independent, not-for-profit organisation. At the moment, its ownership and control are evolving.
However, there are determined attempts, led by Russia and some Middle East Governments, to subvert the independent control of these and other organisations which run the internet. These Governments want them to become part of the United Nations International Telecommunication Union. If they succeed, national Governments will have the final say on how to innovate technology and control access to websites on the internet. They will have the power to negotiate and prohibit the technology as it is rolled out on the internet and even to veto it. The ITU meetings are often held behind closed doors, with civic and user organisations excluded.
These Governments also want ICANN to come into the ITU, opening the possibility that Governments who do not like whole categories of websites could try to cut them off from the internet by banning them from the directory. I, for one, do not think that this offers a guarantee of free speech. Sir Tim Berners-Lee said that the running of the internet should be left to its users rather than to a UN agency representing the world’s Governments, which would only interfere further with its openness.
For some years now there have been attempts to set up independent multi-stakeholder control of these crucial internet bodies. That approach would allow internet companies and citizens to be equal partners with national Governments, so that one group does not abuse another. It would enshrine transparency and open up discussion to ensure that national Governments do not dominate the running of the internet. That issue will be central to the agenda of the internet governance conference to be held in April in Brazil, to which the UK will be sending a sizeable delegation.
I ask the Minister to require that our Government do everything possible to ensure that the bodies which run the internet are not subverted by national Governments opposed to freedom and openness.
Lord Lucas (Con)
My Lords, I confess an interest in that I earn most of my income from the web and that the social enterprise I am promoting at the moment, which is called The Good Careers Guide, depends for its potential success entirely on web technologies, so I am perforce an optimist for the web but, I hope, a rational one.
As the noble Lord, Lord Giddens, said, we are in the middle of an unprecedented upheaval, but we probably do not yet realise the size of its consequences. I am optimistic that this will lead to a far better world than we have at the moment, but we will have to work hard to make sure that it does. We in Parliament have a very important role to play in that, acting in the interests of citizens and the country to tame the forces which might otherwise overwhelm us.
The noble Baroness, Lady Lane-Fox, talked about the importance of education and of including all our citizens in the benefits of the internet. Doubtless, the noble Lord, Lord Puttnam, will also speak about that. I entirely agree with that.
I hope, too, that we will take a stand against those parts of the internet which have become, or seem to be becoming, more powerful than states. We should stand beside Sherlock Holmes in confronting our digital Charles Augustus Magnussens and the amoral, all-knowing Amazon, Google, Facebook and others. I think we should stop short of Sherlock Holmes’s solution of actually shooting them, but we should stand up to them. We should not allow them to use legal tax avoidance to destroy our own domestic companies which cannot take advantage of the routes that the international companies do.
We also have to take a strong look at ownership. I own my library, which was my parents’ library and my grandparents’ library and beyond that, but my children will have no library. All they are being offered at the moment is the opportunity to rent, and they will have nothing to give to their children. That is the other side of the point raised by the noble Lord, Lord Berkeley. Why I do not approve of piracy is because the owners of copyright are trying to deprive us of the right of ownership once we have paid for it. We need something along the lines of an information right—something to give us as citizens the right over our own information against the all-powerful organisations which have made themselves a necessary part of life and demand all our information and all power over it if we are to use their services.
Politics and politicians have a very important part to play in the future of the internet. I very much hope that the Government will face up to that.
Lord Puttnam (Lab)
My Lords, we are all indebted to the noble Baroness for the opportunity to discuss and debate this subject. I declare an interest as I am a very pale imitation of the noble Baroness and I struggle to match her achievements: I am the national digital champion of the Republic of Ireland. Through the Open University, Promethean and the Times Educational Supplement, I have been able to engage with education transformation right across the piece.
I start with some amazingly good news. Ten days ago, on 6 January, 1 million teachers shared lesson plans and ideas with each other across the web on this one day at the beginning of term. Not only did that possibility not exist at all in 2008, but that degree of co-operation would have been unimaginable during the six years that I worked with the Department of Education not that long ago. Quite extraordinary things are taking place but, as has been said, the digital world is both a creator and, potentially, a destroyer of jobs, even of lives. I do not believe that that is fully understood by government or business. In their own ways, both the noble Baroness, Lady Kidron, and the noble Lord, Lord Giddens, are right: there are extraordinary opportunities and great dangers. Jaron Lanier’s book, Who Owns the Future?, unblinkingly sets out these challenges. He, like Sir Tim Berners-Lee, seeks what he describes as a very humanistic economy enabled by the world wide web. The noble Baroness, Lady Lane-Fox, suggested that we should seek the web that we want and I agree with her.
In the couple of moments left to me, I want to make a suggestion, which I hope does not sound too Utopian because it is not intended to be so. Governments always tend to be behind the curve on this type of thing but here is a suggestion that I suspect the noble Lord, Lord Bates, in responding, will like very much indeed. Almost 20 years ago, I had the pleasure of serving under the noble Lord, Lord Chadlington, in the early days of the National Lottery, looking at ways in which that extraordinary creation of Sir John Major was able genuinely to transform opportunities for arts and other organisations in the UK. Similarly, an amazing statistic—I rely here entirely on the Email Statistics Report published in Palo Alto last year—is that 183 billion e-mails are sent every day. At the outset, had we had the wit to place a 1p levy on each e-mail—these are unaudited figures—that would generate today £730 billion worldwide. That figure is 29 times the total amount spent by the United Nations and all its agencies each year. It is more than the global aspiration for development and climate change mitigation recommended by the UN. Last year, the need of UNICEF, of which I was UK president, was £1.7 billion, of which only 46% is currently funded. This tiny 1p levy could totally change the landscape of aid and the opportunities for multinational support worldwide.
I realise that it is rather late in the day to suggest this, but there is another advantage. If there were such a levy, it might allow people to pause momentarily before hitting that quite dreadful “Reply to All” button.
Lord Birt (CB)
My Lords, I declare an interest as a director of three companies listed in the register which conduct their business on the internet. The world wide web is a veritable miracle of science and technology, captured brilliantly by the noble Baroness, Lady Lane-Fox, in her opening remarks. Information can be uncovered in seconds which once would have taken days; pictures and news can be shared instantly with friends and family; grandparents can Skype their loved ones in Australia; anyone can set up shop, or start a business, for next to nothing; and individuals are free to express their political and other passions, convictions and beliefs, as never before, unmediated. Events can be broadcast that repressive states once covered up with ease. The internet has enabled, empowered and enriched us. But it also brings worries as well as wonders, and neither nationally nor internationally have we developed an appropriate policy or institutional framework to address them.
In the UK, we have a lively start-up sector, yet we have to look abroad for many of our skills. There is a huge shortage of programmers in some web languages, especially those needed for developing mobile applications, and the UK’s educational bodies are not fleet-footed enough to meet that shortfall. We are tolerating behaviour and actions on the internet that would never be allowed in the physical domain. For a while, Facebook, with spurious justification, believed that videos of beheadings should be allowed on its service. If our banks exploited information about our private transactions in the manner of Google, there would be uproar. If the ugly, threatening, sexist abuse that is harboured routinely on Twitter took place in a pub, it would more often be prosecuted. When Lily Allen criticised online copyright theft, her website was the target of a DDoS—a distributed denial of service—attack by online anarchist warriors, no doubt using malware placed on millions of computers known to the ISPs, but not to their innocent owners, all mounted with impunity.
Online fraud takes place on a gigantic and global scale. In the UK, we neither measure its impact on our citizens, nor do we do anything material to counter it. Without threatening in any way the precious, priceless benefits that the world wide web has brought us, the task over the next 25 years is to extend to it civilised standards and the rule of law.
Lord Knight of Weymouth (Lab)
My Lords, last night, looking at the time limit for today, I tweeted in despair:
“Tomorrow I speak in @Marthalanefox’s Lords debate in 25th birthday of World Wide Web. Time limit of 3 minutes! What’s most important to say?”.
Adam replied from New York:
“That you can simply ask the ‘common folk’ what to spend your 3 minutes saying, just by tweeting the question!”.
So that was that. I will use my time to tell you what my social media followers on the world wide web wanted me to say. I must first refer the House to my entry in the register, in particular as chair of the Tinder Foundation. Thanks to successive government funding, we have helped 1.2 million people to get online since 2010 through UK online centres.
I turn back to Twitter and Facebook, starting with Tom Watson MP:
“Just say: Thanks Tim!”.
Ed Balls just said:
“@edballs”.
Then Councillor Warren Morgan said:
“The web has connected and empowered, informed and democratised, tackled isolation, built new generations of businesses, spread ideas”.
Susan had the freedom of Facebook to say more:
“Connections through the internet enable ordinary people in different countries to communicate directly with each other, to understand each other better ... It also means lots of people who would otherwise be isolated—whether geographically or because of disability or because they are carers—are able to keep their minds and spirits alive. Politically, it's wonderful. More people can be engaged in trying to influence the decisions a country makes”.
Louise and Peter had a more nuanced view:
“The web is a powerful tool that's used for good and ill. With the freedom the WWW gives comes greater personal responsibility resting on the shoulders of those in power”.
Stephen Heppell asked:
“Why isn’t Tim on a banknote yet?”.
He also wants kids to own their learning data and to have education discounts on connectivity for learners. Ruth agreed and added:
“Plus maybe something about digital exclusion—geographically (it’s still APPALLING in some parts of the country) and demographically (viz poverty). And you ought to celebrate the richness of life brought through cat videos. Probably”.
Helen agreed with Ruth and said:
“Make sure you mention how handy it is for sharing cat videos”.
Emma Mulqueeny just posted another video of her kitten, Grape.
There were also several who celebrated the freedom of the web but worried about who controls it. That was best summed up by Mark, William and Adam who said:
“This will only be persistent as a benefit if we actively seek to protect the neutrality of the network. 25 years can be about celebrating the past but absolutely also needs to be a call for vigilance in developing further an equitable future. We need to address the surveillance problem. And we need personal control over personal data. The freedom and anonymity of the web which is a vital part of its power and vitality is being eaten away by govts and big corps. If this continues a lot of what makes it important will vanish. Sorry to sound like a liberal”.
I have curated all the comments on Storify but will conclude by quoting Owen:
“The web is the single most powerful thing that mankind has ever created but, like most other things, it can be used for good or for evil purposes. What we have to master is giving freedom to the good whilst curbing the evil”.
Finally, from me, thanks Tim for your gift to everyone. You gave it for free to keep it universal. As a result, we all have to change how we do things to make the most of it, for everyone.
Baroness O’Neill of Bengarve (CB)
My Lords, I thank my noble friend Lady Lane-Fox for introducing what must be a central topic for all of us. She also asked the right question: what sort of world wide web do we want? There are also the questions of what sort of web we can have and have now.
We are probably living in the twilight of the cyber-romantics who think that zero regulation of everything online is the way we should head. We obviously are not in that situation. The effective and enriching use of the web is life-transforming but depends on the right sort of legislation and regulation in the right places. If we doubt that, we have to think, just for a moment, about all the online shopping that people do and what it has taken for people to have a reasonable degree of confidence about entering that world. Of course, there are other worlds about which they do not have that confidence.
The area of greatest worry to a lot of people is online privacy and surveillance. However, it is odd that they feel it is okay for the Amazons, Googles and others to have their private data but somehow not okay for Governments to have it. That proposition will need to be tested down the route. Commercial power is not negligible.
I should like to ask the Minister some limited questions on privacy. We are, as we know, facing a new data protection regulation, which, if it comes through the process in Brussels, will spread across the entire European Union and ostensibly aims to protect privacy more by raising the standards for consent. Will it do that or will it protect fictions of privacy by allowing fictions of consent to count as legitimating? Do Her Majesty’s Government have a view on that?
I should also like to ask the Minister a question about anonymity. This is a matter of some disagreement. Some people think that online anonymity is highly desirable. They note, of course, that it protects the spamster, the scamster and the cyberbully but feel that that issue should be settled at another level. However, knowing that we are anonymous is, to be sure, liberating but often in dangerous ways. In serious situations, we stand by our words, and free communication depends upon being able to judge what the other party says.
We have heard a good deal in this debate about the merits of transparency. I do not believe that transparency is a sufficient, ethical ideal for online communication. It is a remedy for secrecy but is not sufficient for communication, which is surely what matters, online as much as face to face—being able to judge what others are saying and what they are doing in saying it. Are they, for example, promising something or threatening something? We need to be able to judge not just speech content but speech acts. This can be frustrated in many ways, and I ask the Minister whether he thinks that there are things that we need to do to limit online anonymity in order to protect the future possibilities of online communication.
Lord Black of Brentwood (Con)
My Lords, I join others in congratulating the noble Baroness on her introduction to this historic debate. While the internet impacts on every aspect of life, two areas of society affected most are education and the media.
The changes that have taken place in education have been breathtaking, not least for adults who benefit in terms of lifelong learning. I think, for instance, of the work of the Royal College of Music, on whose council I sit, and I declare an interest accordingly. One of the hallmarks of the RCM’s wonderful teaching is the virtuoso master class. Each year 4,500 people attend them, but by making them available online, a much bigger audience can participate. Consider this: in the past three months alone, more than 60,000 people have watched one of those master classes, more than had attended all master classes in person in the previous decade. The RCM is also pioneering an online resource to teach people the basics of music theory. So far, it has delivered more than 200,000 lessons to more than 50,000 students in 50 countries. That is the great egalitarian, inclusive side of the internet—making things possible for those who, a generation ago, could never have dreamt of achieving something such as that.
The media is another area where change has been dramatic, and I declare my interest as director of the Telegraph Media Group. While some suggest that the internet is destroying the media, the truth is the opposite for innovative and enterprising companies because of the new audiences that the web provides. The Telegraph was the first paper to get a website, back in 1994, but at that time its audience was limited to those who read newspapers in the UK. Twenty-five years on, audiences are global, and when people want authoritative news analysis, it is trusted news brands to which they turn. During the London Olympics, the Telegraph website alone attracted a record 408 million page views— 220 million here in the UK and 190 million abroad.
Local newspapers, too, are seeing strong growth in online audiences. Three regional publishers, including the owners of the Scotsman, the Northern Echo and the Manchester Evening News passed 10 million monthly online readers last year, a massive figure, considering the geographical limits on their print circulation. Of course, newspapers still face huge challenges in this age of the internet: protecting copyright, as the noble Lord, Lord Berkeley of Knighton, said; monetising digital content; and adapting business models. Gaining a global audience also means attracting global competition. Such a period of transition is proving to be painful for many in publishing but it is change that is absolutely essential for survival. For those who are succeeding, the internet is taking the UK’s iconic newspaper and magazine titles and turning them into global media brands.
I conclude with this point in praise of the web: with so much content from so many publishers, the vast majority of them individuals, being provided in so many jurisdictions, any attempt to censor the web through legal or statutory regulation is ultimately doomed to failure. This point is vital to any debate about press regulation, which is dear to my heart, but which was, ironically, completely ignored during the Leveson inquiry, which was an analogue inquiry for our digital world. What the web, in all its glorious anarchy, has done is to make any form of statutory press control futile in an online age. As someone who believes passionately in freedom of expression, that is one of many good reasons to say, “Happy anniversary”.
Lord Hunt of Chesterton (Lab)
My Lords, I am grateful to be able to contribute to this welcome debate on the world wide web and the internet, a key aspect of technology and society. More debates on this area will persuade sceptical scientists and technologists to accept that Parliament is relevant. Perhaps the noble Baroness, Lady Lane-Fox, will take over Harold Wilson’s position as probably the only, or best known, prominent politician to be identified with technology and society in the past 40 years.
The Met Office, of which I was the chief executive, was one of the first agencies of government to apply the web in its operations. It may surprise noble Lords that in the 1980s the Met Office used not only the radio fax but Morse code. Many of our operators had to learn it; in fact, I learnt it as a boy from my great-aunt. That shows how far we have come. Morse code was then needed to take data from Atlantic weather ships, which, of course, do not exist any more.
In the 1990s, Tim Berners-Lee discussed with the Met Office how weather forecasts, data and research could be helped by the new developments. In fact, he then gave advice to Gordon Brown’s Government about the importance of opening up data. That has been a big change in the past 30 or 40 years. The World Meteorological Organisation’s congress in 1995 established the new approach. The UN has come in for some criticism this afternoon but it has certainly helped in some areas, including openness of data. The great thing now is that with this data, it is possible for users to be informed about alternatives, from weather forecasts to purchases. That will give people more confidence in many senses.
However, as others have commented, there are dangers. The security of the web is a dodgy business—I was swindled last year. Every time I give a credit card to someone, I fear for my life but, obviously, most other people do not. Of course, I do not fear for my life in the restaurant in the House of Lords; I am very confident there.
As the noble Baroness, Lady Lane-Fox, commented, new users of the internet are often weakest and poorest, not only in this country but around the world. So the fact that hurricanes and typhoons can be forecast more accurately and then displayed on the web provides enormous assistance and life-saving help to some communities. In Myanmar—Burma to some people—the coastal communities do not have the web, so hundreds of thousands of people died in the hurricane in 2011.
Air pollution is now predicted in many urban areas: it was used in Beijing and used in London. This can be predicted right down to street levels. If you look at the number 73 bus, it will tell you that if you have breathing difficulties, get a message from your doctor and then you get this information. But this information—I have been talking about it and everybody has been talking about it—is essentially one-way information in terms of technical information. Now, however, we have the possibility of people providing information back. There is a fascinating example from Manila, which was able to deal with floods in a way that we could perhaps learn about in the UK. People there have mobile phones and send back information in the form of a colour—yellow, red or green—as to whether the water has reached their ankles, their knees, their thighs or their shoulders. This goes to a central centre, which can see where all the water is travelling in terms of height; it then runs its computer programs hour by hour and tells people whether to get out or to stay put. This is what is called the “web 2.0”—this business of much more feedback between people—and it is part of the new revolution.
Lord Rees of Ludlow (CB)
The noble Baroness, Lady Lane-Fox, deserves our thanks for instigating this debate on what is surely the most transformative innovation of the past decades. I will focus on how the web is impacting just two things: research and education. Web archives, electronic journals, blogs and wikis have levelled the academic playing field globally and have democratised research.
The involvement of amateurs has been traditional in sciences such as botany, but the scope for citizen scientists is now much wider. In my subject of astronomy, for instance, there is so much data that the professionals cannot scrutinise them fully. It is now possible for eagle-eyed amateurs to access archives and themselves discover new planets or galaxies. Likewise, large datasets in genetics, healthcare and environmental science can be accessed anywhere. This openness can promote the progress of science, the understanding of it and trust in it. The web’s benefits to research spread beyond the sciences. For example, amateur scholars are reading and transcribing ships’ log books from the 18th and 19th centuries, unearthing fascinating social history as well as important data for climate scientists.
What about education? Here I fully agree with the noble Lord, Lord Giddens. The web may thankfully have a disruptive and benign effect on some unsatisfactory features of formal education, especially higher education. It will offer access to an ever-growing menu of outstanding courses—star lecturers and teachers will have a global reach. Traditional universities will survive only in so far as their faculties offer mentoring and personal contact with their students.
The Open University model—distance learning supplemented by a network of local tutors and mentors—surely has vastly more potential in the era of the web and smart phone than when it was founded back in the age of black and white TV. We can all freely access wonderful material on the OU’s Openlearn website, much prepared jointly with the BBC. In the United States, two organisations, edX and Coursera, disseminate MOOC courses developed by leading universities. The OU has set up a similar system called FutureLearn. I think all UK universities should seize the opportunity to widen their impact via the web. In particular, they should do this by supporting the Open University and by contributing content to FutureLearn rather than getting locked into one of the American platforms. The OU and the BBC have unrivalled reputations in their sectors. It is surely in this country’s interests that they should set the gold standard for web education and strive for a global reach.
Lord Soley (Lab)
The opening speech by the noble Baroness, Lady Lane-Fox, was an inspiring one. I hope it is widely disseminated. The first thing I would like to do is to echo her call on the Government to find a way of recognising the 25th anniversary of Sir Tim Berners-Lee’s invention. This is, after all, the country that invented the industrial revolution, the second one that changed mankind out of all shape following the agricultural revolution 10,000 years ago. Sir Tim Berners-Lee’s step is another giant step on the road for this country and we ought to recognise it as much as other countries do, where you often see public memorials to him even before he is dead, which is quite an achievement. I congratulate him again on that.
My second point is that this moves very fast. I started my blog as a Member of Parliament in the early part of this century. There were just three of us who did it. I then moved it here to the House of Lords under “Lords of the Blog” and it is still going, but I slipped off the edge a bit and I need to reinvent myself. One of the beauties of the world wide web and the internet is that you can actually reinvent yourself. As someone said earlier, you actually can stimulate your own mind in doing so, although I might need the assistance of the noble Lord’s 94 year-old friend to give me a leg up on the situation. I might have to give him a call.
We have talked a lot today about how the web and the internet will change the way everyone works. We do not talk enough about how it will change this place and the way we do politics. The noble Lord, Lord Kirkwood, touched on that point. We really have not thought that through. I give a simple example: the argument about security and privacy, which came to the fore with the revelations about the interception of messages. The Bill that we passed five or six years ago was out of date technologically before it received Royal Assent. Many of the Acts of Parliament that we enact now are also technologically out of date. We have to find a way for Parliament to modify laws as we move on. We have tended over the years to have a system where we simply added amendments or changes or a new Act every five, 10 or 15 years. The speed of change is so great, however, that on anything involving technology, we get left behind.
My last message is to the political parties. I am no longer involved in drawing up manifestos, thank heavens, but all the parties need to have a very clear statement about science and technology in their manifestos for the next election, particularly on how they are going to approach the privacy and security of the world wide web and the internet. It is profoundly important. There are very exciting possibilities here. We really can change the way we do politics and involve people in the political process much more effectively than we have done in the past. It is not easy to work out how to do this, but we need to respond to how people are thinking about things and how we can create politics out of ideas and movements rather than just carry on with political parties in the older form.
Baroness Wheatcroft (Con)
My Lords, I add my congratulations to the others who have thanked the noble Baroness, Lady Lane-Fox, for securing this debate and launching it so comprehensively. It seems impossible to believe that it was only in 1989 when Tim Berners-Lee presented his bosses at CERN with a paper that foreshadowed the web. He got it back with the comment scrolled on the top: “Vague but exciting”. How exciting it turned out to be.
The world wide web has changed lives, generally for the better. It has fuelled revolutions and shrunk the world. I speak as a trustee of the British Museum. The world wide web has made the contents of that museum available to anyone anywhere. There are 3.5 million objects now online and they are visited all the time. The web site traffic grew last year by 47% to 19.5 million visits. Yesterday, the museum celebrated its 255th birthday with a record number of visits, fuelled by a Google doodle.
However, we need to be discriminating. This is no comment on the Lords of the Blog or the noble Lord, Lord Soley, but there is quite a lot of rubbish on the web. One of my favourite cartoons was in the New Yorker and it showed two dogs looking at each other. One says to the other, “Do you blog?” The other says, “I’ve stopped. I’ve just gone back to incessant stupid barking”. There is some wonderful stuff on the web, but there is also a lot of rubbish and policing is never going to work. The net will always be ahead of those who try to police it. Perhaps that is why even some respectable news organisations seem to apply different standards to what they put online to what they put in print.
Wikipedia of course is a wonderful source, but it is not infallible. The users of the web have to learn to discriminate. They have to apply their own judgment. Nevertheless, it is an amazing force for good. It has changed lives for the better, not just by enabling people to shop the world, but to educate themselves and entertain themselves. As the noble Lord, Lord Chadlington, explained to us, it is also a wonderful way for some people, who may be housebound, to combat the loneliness that affects so many.
I have only one question for the Minister. In the internet age, why on earth are we providing free television licences for people, taxed or not taxed, when perhaps we should be offering them subsidised broadband?
Lord Stone of Blackheath (Lab)
My Lords, I should like to talk about the benefits as opposed to the risks that the linking together of people can bring to the UK in different dimensions—not just in huge organisations but in small, not just for the young but for our age, not just for big data but for human stories and not just for global but for local.
In retail, the internet works for big firms but also for small independent businesses such as that of my daughter, Susie Stone, who has a new vibrant couture business in which I declare an interest. The internet is incredibly useful for her and other SMEs. Via social media and networking sites, the global reach of the internet allows such small firms to share ideas, collaborate, promote their work and have success.
It is not just for the young. Ten years ago, customers at N Brown group, most of whom are over the age of 45, bought online 2% of sales. Now it is 58%; over £400 million. Its CEO, Angela Spindler, says that the group is developing relationships through the web making shopping for fashion easier and more enjoyable, regardless of customers’ size and age. Also, very traditional British retail names, such as Burberry and Jaeger, and some that are new but becoming traditional, such as Jigsaw and Paul Smith, can now spread their wings and fly all over the world. “Ah!”, people say. “But what about the high street? It’s being destroyed by online”. Nope. Believe me, even with the growth of these so-called dark stores, the physical marketplace will not disappear. A new Israeli start-up, Appick Shopping, will launch a new internet technology in the high street soon to make shopping more enjoyable. It is coming to London because it knows that we in the UK spread shopping technologies to the world.
The web can be a vehicle for coherence for all beings. Its dangers lie not in the technology, but in whether users act mindfully. It can work in peacemaking, not only globally but locally. In Jerusalem, PICO—People, Ideas, Community, Opportunities—has an exciting new concept in co-working shared space, creating a grassroots change in a complex neighbourhood. It sets out to include both the Arab and Jewish communities in West Jerusalem and will link with a similar set-up in East Jerusalem. The web crosses the physical walls and those of culture and language.
In world health, we use not only big data, but also patients’ personal stories. Healthtalkonline knows that patients and their loved ones need more than just medical facts when facing illness. The site provides real people’s experience shared on digital film to help others understand what it is really like to have an illness. It covers more than 80 illnesses and conditions and gets 3 million unique visits a year.
Oxford University’s research is of such a high standard that it is now working with universities and hospitals in 10 countries, from the Far East to Canada. DIPEx International is now a global charity. Recognising the growing importance of the third sector, the new social innovation commission is bringing together leading experts, entrepreneurs and parliamentarians around the intersection between social enterprise, impact investing and crowd funding to develop this field.
Finally, on health, this Government are part-privatising the health service, which creates fragmentation. We should have a system of whole person care using the world wide web to move in health from fragmentation to integration. By the way, can some techie tell me how it is that other noble Lords in three minutes speak much more slowly than I do and yet seem to say more?
Lord Purvis of Tweed (LD)
My Lords, the noble Lord may be about to be proved wrong. The noble Baroness, Lady Lane-Fox, was concerned that we would think we were going to receive a masterclass and would be disappointed, but that is indeed what we received. When she asked if I would contribute to this debate, she said it would be good if the youth wing of the House were represented. However, as the noble Lord, Lord Chadlington, showed, this is an invention for all ages and for all time to come.
If the noble Baroness and I have anything in common, it is that we were the last generation of children to go through school without any online resources. We were the last to have our childhood with no online play and no online interaction with other children. This now happens around the world. Today we are debating an empowering invention. There are some areas where we need to consider the dark side, but the rest of my contribution will be about the positives: the platform it is providing for future generations of young people who will be more creative and entrepreneurial and will invent great things that we cannot comprehend today. It will be the platform for our future leaders.
In essence, the world wide web is a means for humans to communicate, celebrate, inspire, amuse, insult and learn. My business card is printed on the last Victorian printing press in Scotland, Robert Smail’s printing works in Innerleithen. Some 150 years ago, that print works promoted passage and communication to Canada and the new world for people wishing to leave Scotland. With this e-mail and web address, people from my own family who moved to Canada can now communicate with me instantaneously through the world wide web. The motive to communicate is the same: it is the mechanism that is different.
A number of years ago, at the National Library of Scotland, I held in my hand the second book to be printed in Scotland; it was printed in 1509. Today, I have it in my pocket, along with Magna Carta, the US declaration of independence, Ann Frank’s diary and a fair few movies produced by the noble Lord, Lord Puttnam. The noble Baroness mentioned Taiwan. I was there as a guest of the Government just after Christmas. We have also heard Sherlock Holmes mentioned in today’s debate. You might think this a slightly incongruous link, but when I was there, using the Taipei-wide wi-fi system that is free to anyone, local resident or tourist, I read the South China Post, which reported that 2.8 million people had watched the new episode of “Sherlock” on their version of YouTube.
It is an exciting, empowering invention—but, as the noble Lord, Lord Kirkwood, said, it is also a challenge for this place. If we are to have genuinely open participation and an open democracy, we also need an open Parliament and an online Parliament.
Finally, I mentioned Innerleithen not just to plug my former constituency but because it is about to receive superfast, fibre to the cabinet and fibre to the property broadband of up to 300 megabits per second. The community wanted it and won a competition from BT. They put pressure on the Scottish Government. I hope that we will put pressure on the UK Government to ensure that all parts of the United Kingdom have the right infrastructure to allow us to utilise the invention to the full.
Lord St John of Bletso (CB)
My Lords, I join in thanking my noble friend Lady Lane-Fox for introducing this very topical debate and for her excellent overview of the subject. I declare an interest as a member of the advisory board of Silicon Valley Bank and as someone who has been involved for several years in building and managing data centres.
We now live in a hyperconnected world in which a number of technologies work together to provide a new paradigm for work and private life. The nature of the workplace has dramatically changed, with more and more people working from home in the so-called virtual workplace. With cloud computing, and mobile and work collaboration platforms, this has resulted in anytime, anywhere, on-demand access to information which can only grow. The web has also enabled entrepreneurs, young and old, to build global businesses that from their early stages can reach customers and partners in all parts of the globe. It has huge potential for job creation.
Although there is satisfactory broadband connectivity in most major cities in the United Kingdom, we have a long way to go to provide adequate broadband to rural communities. I share the concerns of most of your Lordships who have spoken about the need for more action to be taken to address the digital divide. I entirely agree with my noble friend Lady Lane-Fox that digital skills need to be embedded. We have moved, in a very short time, from an analogue age to a digital age to an on-demand age—and, now, to an interconnected age. Mobile and cloud are converging to create a new platform that can provide unlimited computer resources, unconstrained by traditional memory, processing and battery life.
It is extraordinary that more than 1 billion people are connecting on Facebook alone on a monthly basis. There is no doubt that media convergence has opened up myriad opportunities, but it has also posed a number of challenges that will need to be constantly monitored and addressed by Ofcom. I agree with my noble friend Lady O’Neill that there will be a need for some form of additional regulation. Although we have all heard of the benefits of the mobile internet, cloud computing and the so-called internet of things, we are increasingly subject to growing security risks, often referred to as botnet threats. There is no doubt that cybersecurity breaches threaten both individual and business data, and business continuity.
Time restricts me from addressing another major concern, the dark web or deep web, which has been used for illicit activity. A lot more focus needs to be placed on controlling the content of the deep web.
In conclusion, although challenges remain with security and privacy concerns, we are in a period of profound and exciting change.
Lord Taylor of Warwick (Non-Afl)
My Lords, I add my thanks to the noble Baroness, Lady Lane-Fox, for making this timely debate possible, and for her inspiring speech. The irony is that most of the history of the web is ahead of us. The internet is far from reaching its full potential as an agent of empowerment. The reality is that only 25% of the world’s population currently use the web, and in this year, 7 million adults in the UK have never used it. The noble Baroness emphasised the importance of inclusion, which was part of the vision of Sir Tim Berners-Lee for universal access.
However, there is a group that is excluded from access to the internet by way of government policy. I am not asking the Government to change the policy, but to modify it in relation to some within that group. Its members are part of the digital divide and they are on the wrong side. At present, UK prisoners are excluded from the internet. We imprison more people than any other nation in Europe and our prisons are full to capacity, with more than 85,000 prisoners, but the policy is not working. More than 70% of prisoners reoffend within the first year of release, and major factors concerning reconviction are a lack of education and training, and the inability to gain employment.
For low-security, category D open prisons, I suggest that where prisoners are preparing for release back into the world, the intranet or even the internet under controlled supervision should be made accessible for training, education and researching job opportunities. It should be a privilege to be earned and not a right. Some 74% of UK prison governors surveyed this year by the Prison Reform Trust believed that low-risk prisoners should have secure and controlled access to the internet as part of their release process. Norway and Australia are among the countries leading the way on internet provision in prison, where it has led to decreasing reconviction rates.
The other issue I would like to raise is that of cyberbullying. Some 28% of 11 to 16 year-olds have been targeted, threatened or humiliated by an individual or a group through the use of mobile phones or the internet. For a quarter of the victims, the bullying was ongoing for weeks or months, and there have been high-profile cases where Twitter has been used to intimidate people. I am an admirer of a small charity called the Cybersmile Foundation, which started in 2010. It offers advice to victims. Organisations like Cybersmile and charities like BeatBullying, ChildLine and Kidscape have an important role to play in this. I urge the Government to find ways of working with these charities and to offer them more support.
The growth of the web has revolutionised the UK and the rest of the world, but it has not been a bloodless revolution, because the web has brought with it some difficult challenges. But while humans manage to remain at least one step ahead of computers, I believe that its future can be approached with faith, not fear.
The Earl of Erroll (CB)
My Lords, I thank my noble friend Lady Lane-Fox for this opportunity, and in her honour I prepared for it only at the last minute. I have some interests that are declared in the register, but I also chair EyeHub, which is one of the TSB-funded IoT projects. The internet is very new, and most of us have not been using it for anything like 25 years. We are only just beginning to make a start on the internet of things, to which my noble friend also referred. That will change things, because machines will start reporting what we are doing behind our backs. There are all sorts of implications in that which we have not yet thought about.
In fact, people all over the world are only just beginning to evolve and think about how they will adjust to the implications of the global internet and the consequent cultural clashes that are happening. One of the major ones is how much Governments should be allowed to control their citizens. The whole thing is global, and Governments are losing control because people can work from anywhere. To whom do the taxes belong? We are seeing that debate now.
We will have to rethink entirely how we interface, work with and talk to people. Also, I will just slip in a comment that we still need to meet people face to face. You have to share hospitality with people to know whether you can trust them; you cannot just trust electronic tokens or people whom you have never met, unless they come highly recommended by a friend. That is going to be one of the big issues in the near future.
The other great thing about the internet is that remote communities and communities on the edge of urban conurbations can become global players. You do not have to be situated in the middle of things. However, they need to be able to access the internet properly—and access is a real problem in Britain, despite all the things that the Government are saying. I am afraid that an awful lot of stuff is flying around that is not quite true.
Vast amounts of information are out there, and the problem is that some of it is about you. Much of it is inaccurate and misleading, and it always will be. That is partly because it is easy to fool a machine and partly because it is easy to get things wrong. It is very easy for criminals to fool machines. If I want an alibi, I will lend you my telephone and iPad and get you to establish an alibi for me. We have to be careful about what we think we are actually seeing about people if we are talking about Governments and control.
The point is that it is dangerous to allow the puritans who try to tell us what to do for our own good to have too much control, because life will not be much fun. The other problem is that when they are the Government, they can make you into a non-person, and that may be done on inaccurate information. It has happened to people already, so we have to be very careful about it. I recommend that noble Lords watch a 2008 miniseries called “The Last Enemy”, which can be bought on DVD; it is very interesting.
You cannot regulate or block criminal or unethical practices out of existence—I am afraid that that is true. All we can do is try to arrest the criminals and disincentivise them, and try to disincentivise the big players by modifying their behaviour through cultural pressure. The web may sometimes help with this, but its basic resilient design means that there are always ways to get around the blocks. Like life, the internet will never be completely safe; that would be boring. We love the freedom of being able to hear the cries of the downtrodden, but we are going to have to fight to keep that freedom for ourselves. Our fathers and our grandfathers died for it.
Lord Stevenson of Balmacara (Lab)
My Lords, I thank all speakers for their contributions to this debate. They have necessarily had to be short and sparky, but they have also been very informative. I should like to thank the noble Baroness, Lady Lane-Fox, for securing this debate in the first place and for her excellent introductory speech, not only for its immediate and relevant content, but for giving us the historic context on the whole question of the web. I also thank her for her other work until recently as the UK’s digital champion.
The noble Lord, Lord Holmes of Richmond, mentioned the need for everyone to have an online presence and indeed he gave us a small glimpse of his own. It is obviously useful to have that. I immediately rushed to my iPad to see what his looked like and I was much impressed by that. I also thought that I had better check out the noble Baroness, Lady Lane-Fox, so I looked immediately at her website and discovered that she had already put her speech up on the web. It is here, you can read it now. I think it was done afterwards, because it says,
“This is a speech I made in the House of Lords”,
and not “This is a speech I am about to make”. We are in the middle of a revolution both of our thinking and of our operations.
The noble Baroness ended by asking us: what kind of web do we want? That echoes what I was doing in researching for this debate by thinking about what people thought about the web. The best description that I came across was that the world wide web is humanity connected by technology—humanity, not just people. That is something that I will come back to.
There are those who would argue, and there is some merit in this argument, that the web is just another technology, although of course it is very exciting, different and distinctive in the way that it is applied. I suppose, like any other technology, the web can be whatever we make it; we can shape it and mould it. Most importantly, we need to keep in mind that we can use it to do something that I do not think any other technology has ever done, which is to connect every single person on earth—every single person. The web gives people the ability as users and contributors to improve their lives and communities or, in other words, to create humanity.
As we have heard, there are some 2 billion people currently on the web, mostly in the West and the developed nations but, as the internet becomes more connectable and more available through mobile, that will grow to an estimated 5 billion by 2020. That means huge opportunities and challenges, but it also means huge changes in the way in which we approach and think about the world.
Is the web just another technology? It seems to me that the things that it does that other technologies have not done are important, and we need to think about how we approach and engage with that technology. It does something to time. Whereas before we always had some time to reflect on an activity, people now report on and read about events as they occur. You get instant pictures and information. What happened to reflection?
The world wide web also localises. That seems like a contradiction in terms, but the way in which the web is organised so that any community can find a way of sharing information relevant to their interests and to their members and fellow citizens is an important aspect of what it does. At the same time, it is also universal, in that you have access anywhere in the world where you can get a connection—although that is not always possible, even in Britain.
The web also has a different way of focusing things. We have millions of communities, we all have multiple identities and those identities can be reflected on the web though our languages, our hobbies and our different natures. It allows those with shared interests to exchange resources in a way that has not been possible before. That is helped, of course, by search engines. Information has always existed; it has always been in repositories and difficult to access but now it is available. It is of variable quality, as we have heard, but it certainly is there if you can find it.
The web also provides links, both in real time and in a parallel way, across things. Many noble Lords will understand that if they have young children or grandchildren. My children seem to enjoy in a relaxing moment—although they say that they are working—lying on a sofa together, the three of them, interacting through texting and e-mailing while watching television and possibly reading something on their iPads. I cannot do that, but then multitasking has never been one of my strengths.
In that way, we are engaging by voicing opinions and raising issues in a way that has not been possible before. It is inexpensive, it is free—or virtually free—it is immediate and, if well looked after, it is durable. We have engagement and a chance to get involved in things that we would not otherwise have done. We also have the chance to raise opinions and, as people have said, to make a better fist of democracy, or participatory democracy, than has perhaps been possible before.
So there are huge opportunities but, of course, as many people have said, big challenges. There are, within those challenges, very substantial ethical ones. It will be interesting to listen to the Minister respond, if he can, to some of the very difficult questions raised by the noble Baroness, Lady O’Neill, and her ethical concerns about some of the issues about the web.
The good news is that the UK seems to have embraced the new technology in a terrific way. We have made economic use of the web and we buy and sell more goods online than any other country. I am not quite so sure about the fact that we have the highest number of Twitter users on the planet. I suspect, and have always thought, that this is largely due to my noble friend Lord Knight—he certainly confirmed in his speech that he has played a major part in that growth.
There are of course other important things, such as MOOCs, which we heard about. We heard how the Open University is developing this new technology, about the sort of digital services that we know are possible through the web and about the way in which an open government system can support these things.
Against that, we also hear that only 30% of small businesses are online, that there are alarming difficulties in getting access for the older parts of our population and that skills shortages are significant. We are also very worried about rural coverage. I read one statistic in my research which suggests that fewer than 0.5% of students choose computer science at A-level. That surely needs to go up, particularly for girls, for whom the figure is a fifth of that.
What comes next? The interesting thing is that most of the history of the web is ahead of us: it is a very young technology and very far from reaching its full potential as an agent of empowerment for everyone in the world. Web access for, perhaps, 4 billion or 5 billion people is an incredible opportunity, and new technologies will enable billions of people who are currently excluded to join in.
However, there are some big questions, such as access and skills, which I have mentioned. There is also a need for a change in the whole way in which we do business from physical interaction, although that will still be important, to one-click shopping. That is, of course, related to things such as transport and logistics—the physical movement of goods. How different it is now watching downloaded films compared to going to a cinema, particularly when you think about the change from reels of film to the way they are now broadcast or available on DVD. I have a particular concern about archiving material on the web. I am not sure that we are up to speed on that and wonder whether the noble Lord might respond to that, particularly about e-mails in government.
There are also points about privacy, which were well made initially by the noble Baroness, Lady Kidron, in relation to children and also by the noble Lord, Lord Birt. We need to address some of the concerns that we have about the “dark side” of the web, as it has been called. The Prism and Snowden cases raise big questions. Perhaps most worrying for me, and an issue raised by other noble Lords, is what comes next in this area rather than what has already happened.
Other noble Lords raised questions that we also have to address, including those relating to intellectual property and whether that is up to date for the digital age. I suspect it is not. It needs much deeper and more effective work to get us ready for what is going to happen there. There is also the question about how we relate to the data that are stored about us. We need a mature conversation about that. As one noble Lord said, we are quite happy to give up considerable details about our personal data, including our credit card details, to commercial operators but we quibble about how much data government holds. That is very silly: we need to get this right and get the balance right. It may well be, as has been said, that we need champions—somebody who looks after information—but we cannot go on living in a parallel world on this.
The world wide web is a technology, but what it does and what it can achieve is really up to us, the users. Like all new technologies, the internet is often blamed for many of the problems in society. This is not the first time. One thinks of Shakespeare’s Globe and why it was situated outside the city, the penny dreadfuls in Victorian times and video nasties. These things are always blamed for society’s ills, but they are a feature of human endeavour and not of the technology itself. The Government have to come up with policies, although sometimes—including, I suggest, in this area—not doing something is almost as important as legislating. Particularly in relation to privacy and other issues, it should always be remembered that one person’s filter is another person’s censorship.
The noble Lord, Lord Kirkwood, made some good points about the things we can do in our own House. My suggestion would be voting electronically: why do we have to troop through the Lobbies every time a vote comes, as we do currently? Surely we can do something differently with that. The noble Lord, Lord Puttnam, had a good idea, modelled on the Tobin tax, of raising funds for good purposes, which is something we should think about. It is probably too late but it is a good idea. We need to go back to the essential issues about inclusion, openness and transformational thinking about how we operate commercially and personally in a digital world, and how to promote humanity connected by technology—
Lord Hunt of Chesterton
We meet each other in the Division Lobby. If we do not and we all start to press buttons, are we saying that that is progress? One of the themes of today is that we have to balance humanity with technology. That seems to be balancing technology with technology.
Lord Stevenson of Balmacara
That was too complicated for me. I am at the end of my peroration. I will see you later.
My conclusion is that the question for the Government is how to promote humanity connected by technology.
Lord Bates (Con)
On that last point from the noble Lord, Lord Stevenson, we all look across at the Whips, who, above all, enjoy the human-to-human contact in the Division Lobbies as Members come in.
For this debate, I read Twitter this morning and saw some entries by the noble Baroness, Lady Lane-Fox, expressing some apprehension about addressing your Lordships’ House. I think we can agree that it was a truly inspiring and insightful speech, and masterful in how she set out the debate’s context and some of the issues that we need to address. I join the noble Lord, Lord Giddens, and many others in saying that she is an outstanding addition to your Lordships’ House. I do not know whether my noble friend Lord Kirkwood has yet secured the noble Baroness’s membership on his Information Committee, but if not I am sure that an invitation will be on its way.
I also thank the noble Baroness, Lady Lane-Fox, for her time as the Government’s digital champion and the tremendous work that she did to narrow the digital divide, and extend and set the framework for government policy on broadening access. Many people have talked about how the world wide web has transformed the way in which we do business, and how our society and the economy operate. A number of Members talked about how it is transforming this place. The idea of regular debates, whether annual or virtual and ongoing, seems appropriate. The cross-party nature of this discussion shows that the world wide web is a bigger phenomenon than any narrow political party or country can control. That is a point to which I will return.
I pay tribute to the noble Lord, Lord Soley, for creating that entity, the Lords of the Blog. This morning I noticed that my noble friend Lord Norton of Louth had posted interesting data there about the number of hard-copy letters that were received by your Lordships’ House. In 2005, the figure was 4.7 million. In 2013, that had fallen to 2.4 million. This again reflects the changing way in which we interact with those whose interests we seek to represent.
Many Members have articulated in this debate that no technological change has advanced our world as much as the world wide web. It is hard to believe that it was only 25 years ago that Sir Tim Berners-Lee wrote the first protocols that created the web. The principles of inclusion, freedom, transparency and openness that he included, and that have been referred to by many Members, are still at the heart of the Government’s view of how the world wide web should operate.
When my noble friend Lord Clement-Jones referred to the opening ceremony for the 2012 London Olympic and Paralympic Games, I recalled the scrolling message going around the stadium, “This is for everyone”. The fact that this was viewed live by an audience of around a billion and has been viewed by many more online is an important thing, and we must keeping coming back to it. Many noble Lords spoke about the potential that this vast creation has for enabling two-way traffic, not just to push but bring in the thoughts of people. The noble Lord, Lord Rees, spoke of research that is taking place online. My noble friend Lady Wheatcroft spoke of the British Museum and its online exhibits. I think that we were all moved this week to see the 1.5 million pages of World War One diaries that were placed online—an example of how, when we go online, we are invited not just to view but to participate in archiving and contributing to material, and certainly to engage with it.
The noble Lords, Lord Mitchell and Lord Stone, were among many who referred to the UK being at the forefront of connectivity and consumers engaging with online enthusiasm, and the implications of that for the high street. The noble Lord, Lord Mitchell, made the point powerfully that many people see that as a threat to the high street but actually it is something that ought to be celebrated and, for those on the high street who embrace it, it can have a dynamic effect on their businesses.
My noble friend Lord Black referred to the impact the internet is having in a very similar context on the media, creating global brands. Of course, I was particularly pleased to hear, in addition to the Daily Telegraph online, his reference to the Northern Echo being at the forefront of this activity, which was very welcome indeed.
Seventy-two per cent of business premises have subscribed to broadband and 14% of premises now have a superfast broadband service. This last figure is higher than any of the other five major EU countries, which is something we can be pleased about. Last year, AT Kearney estimated that the internet economy ecosystem was worth £82 billion a year in the UK, which is 5.7% of GDP. This is because the web enhances speed, efficiency and productivity.
The noble Baroness, Lady Lane-Fox, referred to the development of this technology as “warp speed”, which appealed enormously to me, as a Trekkie, but this does not come without its challenges. The noble Lord, Lord Clement-Jones, among others, referred to the importance of intellectual property rights, which I will come back to.
According to the Digital Efficiency Report of 2011, the cost of an online transaction is 20 times lower than a phone one, 30 times lower than a postal one and 50 times lower than face to face, although I accept the point made by several Members that human interaction is key, a point that the noble Earl, Lord Erroll, made so powerfully. During this Parliament, the Government will save £1.2 billion by going digital and £1.8 billion year-on-year from making government services digital by default, which I know was an aspiration of the noble Baroness.
As well as the economic issues, we have also had outlined for us the philosophical, almost theological issues, most notably by the right reverend Prelate the Bishop of Derby, the noble Viscount, Lord Colville, and the noble Lord, Lord Stevenson, who spoke of the information overload—the scope of what we have. The picture of holding the world in the palm of your hand was very powerful. I was able to scroll up on my—I do not think I am allowed to say the brand—personal internet device and find that line from TS Eliot, when he bewails in “The Rock”:
“Where is the wisdom we have lost in knowledge?”.
Placing things in context, understanding wisdom, is something that we all have to be aware of, not least the Government.
Using the web may be second nature to many but for some there are still considerable challenges to going online, despite the optimistic anecdote that my noble friend Lord Chadlington told of his friend with whom he is now connected on LinkedIn. Many figures have been quoted today but recent BBC survey data show that some 11 million people—18% of the population—are not online. Given the progress and the importance of it, that is a very worrying figure. I will outline some of the things that Her Majesty’s Government are doing to try to address the issue.
One challenge is making the necessary improvements to the underlying infrastructure. That is well under way, with £1 billion of government investment by 2015 or very soon after. I am delighted that the noble Lord, Lord Purvis of Tweed, was able to report that superfast broadband had arrived in his part of the country.
By 2015, or very soon after, virtually all premises will have a good standard of broadband, with 90% of businesses being able to access superfast broadband. Broadband and superfast broadband, and indeed the world wide web, bring not only purely economic benefits but other benefits. We heard powerfully and insightfully from the noble Lord, Lord Crisp, on healthcare and how the future might take shape with people increasingly accessing their health services via the internet. I was intrigued and looked up the programme Beating the Blues, initially a little worried that this might be a partisan point, but I now recognise that it is a helpful programme. I am sure that we will avail ourselves of this many times in your Lordships’ House.
My noble friend Lord Holmes, as well as giving his own side a good plug, spoke very well about how having a presence on the internet is just part of normal human life. It is important that we increase the access of as many people as possible, which is why I am delighted to report that yesterday, my right honourable friend the Culture Secretary, Maria Miller, announced a £10 million fund for alternative technology providers with innovative ideas about how to help superfast broadband reach Britain’s most remote communities. That is something that will be very important.
The noble Lord, Lord Hunt, spoke of the importance of the internet, which may not yet be able to make the weather but can certainly forecast it, and how that not only has a curiosity interest but can, in very real terms, save lives and save property.
I turn to some of the specific points that were raised in relation to the governance of the web. The noble Viscount, Lord Colville, mentioned this, and asked what the position of Her Majesty’s Government was in relation to control of the internet. It is very clear that this Government favour a self-regulatory approach to the internet, engaging with all relevant stakeholders. We champion a process and model whereby Governments work with industry, civil society and technical communities on an equal footing to ensure the internet is managed effectively. This point was communicated by the Minister responsible for this, Ed Vaizey, at the international global forum on the internet in Bali last year.
Digital inclusion, of course, is wider than just access. Inclusion is about encouraging and supporting individuals, small businesses and charities that are not online, to develop their digital skills and build the confidence to go online independently. I realise that many charitable organisations are doing this. I also pay tribute, in this context, to Go On UK, which is the charity that the noble Baroness, Lady Lane-Fox, chairs. It does a tremendous amount. I know this from my home town of Gateshead, where there has been some great work going on, as there has in Liverpool with Race Online, where some really innovative initiatives are happening within the charitable sector to engage people and get them equipped with the skills necessary to go online.
The noble Lord, Lord Taylor of Warwick, raised an interesting point, which I do not dismiss, although of course it raises challenges. He talked about extending internet access to those in prison. That is something which I will certainly relay back. It seems to me that, at a minimum, where there are many good charities that are working with ex-offenders as they immediately come out, equipping people with internet and digital skills ought to be very much at the heart of that, helping to narrow the digital divide.
In that context, my noble friend Lady Wheatcroft raised the innovative idea of moving from subsidising TV licences to subsidising broadband. I can inform my noble friend that the Government continue to work with the internet service providers on low-cost tariffs. The digital deals sponsored by the Department for Communities and Local Government and the Department for Work and Pensions, and supported by the charity of the noble Lord, Lord Knight, the Tinder Foundation, are a prime example of how the Government are helping to provide low-cost broadband, but again we accept that much more needs to be done.
The noble Lord, Lord Soley, asked what steps Her Majesty’s Government are taking to mark the tremendous achievement of Sir Tim Berners-Lee in creating this innovation that we are celebrating and marking today. I am pleased to say, not in any small way due to the timeliness of this debate, that the Department for Culture, Media and Sport has been in contact with Sir Tim Berners-Lee’s office about discussing a fitting way to mark this remarkable anniversary. The Minister responsible, Ed Vaizey, has specifically asked for an opportunity to meet the noble Baroness, Lady Lane-Fox, to discuss ideas that she may have. I know that they are both following our debate today very closely.
Many noble Lords mentioned the value of the internet to education. The noble Lord, Lord Giddens, referred to MOOCs and online communities, and my noble friend Lord Black referred to the master classes that are available online. Education is obviously a key area that will benefit from this, but I suspect that, as the noble Lord, Lord Giddens, said, we should not anticipate too much of a change. There will be elements of back to the future about it where the interaction between student and tutor will be central.
The likes of Tech City, as well as the plethora of tech hubs around the country, have been essential in fostering the right environment to build momentum. We are reducing red tape to help entrepreneurs, a point which the noble Lord, Lord St John, raised, and ensure that we have many more UK success stories such as lastminute.com. We believe we have the right foundations in place to bring that about.
In order for that to happen—I am conscious of time—we are aware that the issue of intellectual property, which was raised by the noble Lord, Lord Berkeley, my noble friends Lord Clement-Jones and Lord Lucas, and others, is important. There are 1.68 million people employed in the creative industries and the technology sector. In 2012, it contributed £71.4 billion to the economy, a growth of 10%, so I totally take the point about people taking things off the shelves without paying for them, as my noble friend Lord Lucas described it. The Government are fully behind industry efforts to introduce a voluntary copyright alert programme which should be quicker, more flexible and cheaper than the Digital Economy Act, which the noble Lord, Lord Soley, rightly identified as probably being out of date before it came on to the statute book, presenting some of the challenges we have.
The noble Baronesses, Lady O’Neill and Lady Kidron, spoke very movingly about the challenges, particularly for young people. I draw noble Lords’ attention to the speech made by my right honourable friend the Prime Minister last year on internet child safety. It is an issue that we are taking very seriously indeed. It is important to make children aware of the risks they face. That is why, as well as placing restrictions on internet providers, we need to make sure that children and young people are educated about the dangers so that when they go into this community they do so safely. There are some specific issues that the noble Lord, Lord Stevenson, raised in this context about privacy and the archiving of e-mails by government. I will come back to the noble Lord, if I may, on that. The noble Lord, Lord Young, also spoke about issues of child internet safety. The noble Lord, Lord Birt, reminded us of that with the good phrase that the internet—the world wide web—provides us with worries and wonders. I am sure that every parent would echo that view, but the potential and the benefits vastly outweigh the disadvantages, as so many people have said. Many examples were given. The noble Lord, Lord Puttnam, mentioned a million teachers going online to share lesson plans. That is innovative and very welcome indeed.
We must get the framework right. It is right that all stakeholders—Governments, civil society, the private sector and the technical community—are involved in how best to ensure the internet operates effectively and efficiently. We believe that this current multi-stakeholder approach is the right one. It will ensure that we have the right data protection framework in place and the right intellectual property.
In conclusion, I fully support the noble Baroness’s Motion and urge the House to take note of the tremendous impact that the world wide web has had in its 25 short years. It was British ingenuity and innovation that brought it about. The web shows that Britain is great—open, innovative and creative—and we should all take inspiration from Sir Tim Berners-Lee’s invention. We should rightly be proud of this, celebrate it and build on it. There are many issues and it is traditional for Members responding from the government side to say that they will write to noble Lords and place a copy in the Library. It is probably appropriate that I e-mail noble Lords and place a copy on the web.
Baroness Lane-Fox of Soho
I thank the Minister for his answers. I am delighted that we have had the first debate on the world wide web here in the Chamber. It is perhaps one small step for mankind and one bigger leap for the House of Lords. If I was going to organise a birthday party, I think I would engineer the presence of an astronomer, a writer, a philosopher, a composer, some film directors and maybe, dare I say, even a politician or two. I would argue that it has been a very successful birthday party for the world wide web; I thank all noble Lords for their contributions and look forward to many more high-quality debates about the future of our technology landscape.
China: Air Defence Identification Zone
(10 years, 10 months ago)
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Lord Moynihan
To ask Her Majesty’s Government what assessment they have made of China’s introduction of an Air Defence Identification Zone over the East China Sea, and of heightened tensions in the wider Pacific Rim.
Lord Moynihan (Con)
My Lords, I am very glad to have the opportunity to raise this important topic. There is no doubt that China shocked both its neighbours and the international community when, last November, it announced its highly controversial decision to create an ADIZ beyond its territorial airspace in the skies above the Senkaku/Diaoyu islands in the East China Sea. Those shock-waves are still reverberating around the region and beyond, and I believe it is essential for British interests that we adopt a clear position when assessing the significance of China’s abrupt unilateral action. In particular, China promised emergency defence measures in the case of non-compliance and an intent to establish more of these zones in the future.
In this latest escalation, Beijing insists that the ADIZ was drawn with no specific country in mind, but it seems highly likely that it was intended as a rebuke to the Japanese Government for their private purchase of three of the islands in September 2012—a move that gave rise to anti-Japan protests across China and caused concern among Japan’s allies. Since then, Chinese coastguard vessels have repeatedly asserted an operational presence in the territorial seas around the islands, raising the spectre of a new Sino-Japanese conflict and sparking fears of tit-for-tat retaliatory measures spreading volatility and uncertainty across the region.
Of course, ADIZs are hardly uncommon in the region and have been used to political ends in the past, but no other country in the region extends its ADIZ to cover disputed territory that it does not control. Following the announcement, the United States expressed its “deep concern”, as did the EU. Does the Minister agree that incorporating the skies over the Senkaku/ Diaoyu islands within its alert zone is, at best, a significant misjudgment on China’s part and that, beyond the present war of words, it will increase the likelihood of further escalation, creating fertile conditions for a serious incident in the region as a result?
This particular dispute in the East China Sea has attracted much attention because of the potential for war between the region’s biggest economies. However, as this House well knows, the resource-rich South China Sea is the subject of a number of equally contentious territorial disputes between China and its neighbours, particularly the Philippines and Vietnam. Worryingly, clashes in the South and East China Seas have risen significantly over the past two years, with Japan, the Philippines and Vietnam all accusing China of a more aggressive posture over disputed territories and waters.
It would cause international outrage if China were to create an ADIZ over the whole South China Sea, but this has not stopped Beijing from choosing to provoke its neighbours, most particularly in its decision to use an image of the highly controversial “nine-dash line” in Chinese passports in 2012. A Chinese ADIZ in the north of the South China Sea would be particularly sensitive, especially if it overlapped with Vietnam’s ADIZ and included the disputed Paracel Islands.
Of course, we cannot debate this issue without reference to British interests in the region. The region’s economic vitality, its influence and its ever-increasing importance are without doubt and its dynamism fuels the global economy. Last year, ahead of a visit there, the Foreign Office Minister, Hugo Swire, in a candid and important statement, rightly called Japan,
“our closest partner in Asia”.
He said:
“Whether it is global trade or international peacekeeping our relationship with Japan is fundamental to UK foreign policy, not just in Asia but around the world”.
Our close ties and mutual interests with Japan are particularly articulated through our long record of working together to maintain Asia-Pacific regional stability, as well as in a host of other global security issues, from reconstruction in Afghanistan and counterproliferation in Iran to cyberdefence. It is equally important that we work together with China to improve international stability and security, to increase mutual prosperity and to support China’s process of modernisation and reform.
From the Sino-Japanese wars and the occupation of Manchuria, the relationships in the region are deep, complex and historically multilayered. The China-Japan relationship is at the very core of this inextricable enmeshing of old rivalries, wars, antagonism and competition. Memories of Japan’s early 20th century empire-building are still raw within the region—thus the Chinese reaction to Prime Minister Abe’s recent visit to the Yasukuni shrine. China’s past empire, too, is surely heavy and emotive historical baggage for today’s Chinese leaders to carry as they contemplate the future regional hierarchy.
Beijing has argued that its latest move is no more than legitimate defence. However, the Chinese concept of defence is notoriously broad. Officially, all Chinese security policies and uses of force since 1949 have been defensive, this being the most recent case of China defending Chinese territory. However, in recent years in particular, Beijing has seemed unwilling to recognise that, in the eyes of its neighbours, Chinese defence might appear indistinguishable from Chinese aggression.
It is, of course, the law of unintended consequences that we fear: stoking simmering tensions and raising the temperature for short-term political gain can be the touch-paper for conflagrations that quickly get out of control. This is a real flashpoint—not because any country necessarily individually wants to start a shooting war, but because accidents happen.
This is all happening at a time when the security balance of the region is changing. The present poor state of relations between Japan and China is certainly a catalyst for that change, if not a cause. In the face of sharp criticism from China, Japan is increasingly moving away from its post-war pacifist stance. Last month, Prime Minister Shinzo Abe approved a new five-year defence spending plan that calls for the acquisition of drones, jet fighters, destroyers and amphibious assault vehicles to bolster the nation’s armed forces. Prime Minister Abe described the spending plan as “proactive pacifism”, but—significantly, given Japan’s traditionally pacifist public—with a substantial measure of popular support, it continues a trend of reversing a decade of military cuts to counter China’s rapid military build-up and the relative decline of American influence. Although the US still provides the basis for Japan’s national security, under the new draft strategy, Japan will,
“build a comprehensive defensive posture that can completely defend our nation”.
That is an important declaration of intent.
Much of the new spending will go towards strengthening Japan’s ability to monitor and defend the Senkaku/Diaoyu islands among others, and will include more early-warning aircraft stationed in Okinawa and the purchase of unarmed surveillance drones. China’s efforts to pursue a more proactive diplomacy with its neighbours, in quiet rejection of Deng Xiaoping’s famous low-key approach to foreign affairs, saw Beijing hold a major conference on peripheral diplomacy last September. Ironically, it was at this conference, intended to demonstrate the leadership’s wish to promote a stable regional environment for China’s future development, that final approval was reportedly given to the long-held objective of establishing the East China Sea ADIZ and reinforcing China’s claim to disputed maritime territories.
The question remains: what can and should the UK do? With the public mood in both Japan and China being one of renewed nationalism and self-assertion, how can a period of political quiet and trust between China and Japan be engendered, prior to the resumption of high-level discussions on confidence-building measures? Will confidence-building measures be enough?
As noble Lords are well aware, two days after the Chinese ADIZ announcement, the US Administration flew B52 bombers over the disputed islands without alerting China, in what can only be described as a warning to Beijing. The key dynamic is clearly the relationship with America. For the US in particular, it will be a fine balance to urge restraint by all parties and diffuse these looming confrontations on the one hand, while robustly reaffirming its security commitment to Japan.
It remains to be seen what tangible support Britain might be able to bring to bear in future and what, if anything, we—or, indeed, Europe—could do practically in terms of hard power to shape or respond to the present situation in East Asia, should the need arise. We can and should use our very effective diplomacy and soft power to act as an influence multiplier in support of stability and to help to build a capable regional, multilateral security structure that would encompass a workable code of conduct to avoid a new round of ADIZs announced in the South China Sea. But what comes next, if confidence-building mechanisms such as hotlines, agreements on incidents at sea and mid- and high-level diplomacy do not prove sufficient?
My remarks today would not be complete without some thoughts on where this competition for influence will end. This is about the whole shift of economic and political power and influence to Asia. It seems to me that the tectonic plates of geopolitics are shifting and that the rearrangement of the post-war settlement in the wider Pacific Rim ultimately lies ahead of us. As we know, China is rapidly and profoundly changing. China’s rise inevitably challenges the current system, built by Western states and reflecting their interests and rules-based values.
The issue of the Chinese ADIZ, while pressing, is a jigsaw puzzle piece in a much bigger picture. With China’s rise, the dynamics of the region are changing, and it remains to be seen who will win and who will lose in this global shift of power and influence in the Asia-Pacific region. Will we see a change from a US-led regional security system to a Chinese-led one, and who will decide? The extent to which countries in the region continue to want an American counterweight to the rise of their mighty neighbour and the extent to which the US will continue to provide is key.
We have heard a great deal about Mr Obama’s rebalancing to Asia, to extricate the US from more than a decade of war in the greater Middle East and to pivot America’s strategic focus and resources towards Asia and the Pacific Rim, and about the highly complex relationships with China and key US allies there. For the United States, China has become, if not the key, certainly a key bilateral relationship.
In conclusion, within its region China remains a solitary rising power, facing potentially insurmountable domestic challenges and currently encircled by US military bases and allies. There is still a major risk of mutual misunderstanding, miscalculation and strategic non-comprehension between China and the United States, and it seems clear that our policy should be to help diffuse that trust deficit when we can. I look forward to hearing the Minister’s thoughts on whether she believes that is a sensible way forward and on how we in the UK can help realise it for the future peace, security and prosperity not just of the region but of the world.
Baroness Falkner of Margravine (LD)
My Lords, I congratulate my noble friend Lord Moynihan on securing this debate. I am afraid that he pipped me to the post, as I very much wanted to initiate a debate on the same subject. My noble friend said a great deal in his brief speech and I will not repeat many of the points. However, there are two or three that I want to emphasise.
In the year when we remember the centenary of the Great War it is important to reflect that it is issues that are unforeseen that have the ability to impact on our own preoccupations and interests, however far off they may seem. My noble friend has laid out the background and history of the current stand-off, but there are two or three things I want to draw out in my intervention.
While the introduction by China of an air defence identification zone in the East China Sea is not of itself remarkable—one should acknowledge that several of the neighbouring countries in the region have one—what is notable is China’s timing and the content and nature of its announcement. Japan’s own air defence identification zone was announced well ahead of implementation and as part of a transparent process with consultation. China did so without any of those criteria in place beforehand. Moreover, requiring aircraft whose destination is not Chinese territory to comply with its requirements is out of the ordinary. It is provocative in that it covers territory that is internationally recognised as being controlled by a foreign power—in this case, Japan.
One of the things we are learning about the new and rising China is that the art of diplomacy is not its forte on this matter. Let us hope that rational geostrategic calculation is. I read with interest the Foreign Secretary’s response to these heightened tensions between China and Japan over the Senkaku/Diaoyu islands in the other place only a few weeks ago. His view was that the UK saw it as a regional issue to be resolved regionally. While the UK itself may not wish to comment on the dispute publicly, it undoubtedly has a stake in what happens there. China is a United Nations permanent five member. Another of our fellow P5 members and a United Kingdom ally—the United States—has a security treaty with Japan, among other east Asian countries. A rising of tensions between China and Japan cannot affect us as mere bystanders, and I know will be a subject of great concern in government and beyond.
In assessing the provocations and counterprovocations that have taken place between China and its neighbours recently, one has to note a fundamental difference. Japan is a democracy. As such, it cannot control all the actions of its citizens in a way that China can and does. China appears to have been prompted to set up the air defence identification zone in this manner as a retaliatory step aimed at the 2012 decision by the Japanese Government to buy three Senkaku/Diaoyu islands from their private owner. Japan, faced with a situation where a right-wing nationalist, Mr Ishihara, the former mayor of Tokyo, was threatening to purchase the islands, chose to take greater control over events by buying them for the state. A reasonable interpretation one can put on this action by the state was that it was acting to prevent escalation of the situation by a nationalist, but nevertheless elected, politician.
This is not to say that the Japanese Government themselves do not provoke. The visit by the Prime Minister to the Yasukuni shrine last month, particularly, it seems, calculated to insult China and South Korea, was misjudged, as the noble Lord said. However much we may wish that the Japanese Government did not set out to be insensitive, ultimately we have to accept that it is for the people of Japan to pass judgment on their leaders’ decisions—a luxury not afforded to Chinese citizens. Thus it is somewhat easier to comprehend Japanese actions than it is Chinese.
Turning to the implications of the air defence identification zone, I have to agree with RUSI’s assessment that China’s motives there are probably to establish a quasi legal basis for boosting its sovereignty claims to the Senkaku. Changing the facts on the ground, as the Israelis famously demonstrate, or, in this case, the “lines on the map”, to underpin its long-term claims, can result in success. However, if China sought to test the US “Pacific pivot”, then the immediate deployment of B-52 bombers to fly through the ADIZ must have answered its question.
Another long-term effect of this sudden expansion of Chinese power is the change in Japan’s calculations in its own geostrategic imperatives. One cannot see it as accidental that Japan announced its first ever national security strategy just weeks after the declaration by China of its ADIZ in the East China Sea. The strategy, with its stated aim to make a more “proactive contribution to peace”, refers generally to more complex and grave national security challenges that Japan faces, but also comments specifically on China’s attempts to change the status quo through coercion. So we will have a five-year military build-up on Japan’s part. More destroyers, more submarines and more F-15s might all be seen as a positive contribution to its security and may, indeed, be welcome in Washington, facing its own budget cuts, as one American ally starts shouldering a greater part of its defence burden, but it surely should not be seen as comfortable in China. An arms race is seldom an end in itself, as history has taught us.
Some noble Lords might have seen “Newsnight” a few days ago on the vexed issue of these islands. We had the spectacle of Jeremy Paxman interviewing the Japanese ambassador for a few minutes, then walking eight whole steps across the studio floor to sit in another chair and interview the Chinese ambassador about the same issue. The questions overlapped. Why blame one another? Why not go to international arbitration over the islands? Why not solve it multilaterally? Are you trying to solve it bilaterally? The question we viewers were asking each other was: if two senior diplomats could not even sit in the same group of chairs in a television studio, how on earth can any sensible solution be found to this matter?
The United Kingdom is often criticised over its dispute in the Falkland Islands, particularly as it is a United Nations Security Council member. However, the Senkaku/Diaoyu islands dispute is not analogous. We may hold a referendum but there are no people to vote on these uninhabited bits of rock. It is, therefore, sad to see that China, while rightfully wanting us to respect its proud imperial past, its ancient culture and its breathtaking advancement now, cannot submit, as a great power, to international arbitration so that a resolution to its disputes with its neighbours might be found. One can only hope that it will be able to do so in time. Meanwhile we must all hope that restraint will be the path that both China and her neighbours will choose.
Lord Wilson of Tillyorn (CB)
My Lords, it is very useful that the noble Lord, Lord Moynihan, has drawn attention to this issue, including all the complexities that lie behind it and all the dangers that may lie ahead. In a timed debate in your Lordships’ House, it is rather strange to find oneself allocated a longish period of time in which to speak and, with permission, I hope not to use all that time. Perhaps I may use this issue to draw out some rather broader lessons. The noble Lord, Lord Moynihan, referred to all the disputes that have occurred over many years in the East China Sea and the South China Sea, particularly the latter with, for years, Chinese maps drawing a line right round the outer edges of the South China Sea, so creating disputed territory with Vietnam, with the Philippines, with Malaysia and in a very small way with Burma.
A striking point about that long period of dispute is that, despite clashes and indeed some loss of life, there have been no major conflicts. Many years ago, noble Lords may remember that there was a very acute dispute over two islands just off the coast of mainland China: Quemoy or Kinmen and Matsu. They may also remember that, for some 20 years after the crisis had passed, there was a tacit agreement between the two sides that shells, most of which contained propaganda leaflets, would be fired only on odd days of the week, and on even days of the week no shells would be fired and they could carry out their agricultural activities. The key to that was that it was a play, a Peking opera, in which everyone knew the script, and that avoided the danger.
Much more recently we have had the phenomenon of China’s growing military and naval power. I suggest that some of that is going in a helpful direction. I cite the Chinese involvement in the Gulf of Aden, which is a very interesting development in the anti-piracy campaigns off the coast of Somaliland, or China’s involvement with the United Nations peacekeeping operations, or humanitarian assistance. All of that has been very valuable. However, it is difficult to try to incorporate that into the existing world order.
It is very clear, as mentioned by both noble Lords who have spoken, that China is now a very rapidly growing economic power—indeed, far more rapidly growing economically than militarily. As the noble Lord, Lord Moynihan, said, a shifting of the tectonic plates is going on and there is nothing more dangerous in history than a shifting of the plates, when an unsatisfied power or a power that feels that is has lost out over the past hundred years reasserts itself and comes into conflict with the then existing world order. Many of the arrangements in the existing world order, of course, pre-date the time when China re-emerged onto the international stage. It was a time when China was inward looking. It may be that we need to be aware of this, and sometimes make adjustments in these international arrangements, to incorporate the present power of China and encourage it to play a major but, if possible, benevolent role in world affairs. That may require a hard effort.
I mentioned Quemoy and Matsu, and the almost “Peking opera” arrangement whereby you fired on one day but not the next. The danger is that now people will not necessarily know the script. They did then, but if they do not know it now, the dangers are very great. It is therefore important for us to build up the interrelationships we have with China in strategic and military affairs, both diplomatically and between armed forces. Of course, it is the Americans who will play the major part in that, but we, too, can play a role, and I hope we will hear from the Minister that we are playing a role in that area, which will be an important element in how future crises are handled.
For ourselves, we cannot pretend that we are major players. The United States is the major player and will go on being the major player. Equally, we cannot shut our eyes to what is happening and to the potential dangers. What we can do—again, I hope that the Minister can confirm what we are doing—is build up our connections with China. I am thinking not just of commercial connections but of the way in which young people go for education from China to here—and, equally, from here to China. Thus can long-term relationships be built. I am also thinking of the building up of things such as the Chinese legal system, which that country is working hard on and with which we can help in various ways.
In ways such as those, although we may not be one of the major players, we can sensibly help prevent relatively small disputes developing into serious and dangerous conflicts.
Lord Teverson (LD)
My Lords, I am very grateful indeed to the noble Lord, Lord Moynihan, for bringing this subject to the Floor of the House, because it has always been my estimation, given that the Iranian situation is perhaps moving towards a position of being resolved—or at least the heat is coming out of it—that this area of relations in the East and South China Seas is the most dangerous part of the globe in terms of its potential effects.
I wanted to engage in this debate also because when our Prime Minister recently visited China, the press coverage—it may not have been the fault of No. 10’s efforts—gave no mention of this dispute, even in the serious newspapers, and instead centred on trade. I would be interested to hear from the Minister what conversations took place during that visit in late December, or whenever it was, about the incident we are discussing. Clearly, this has the potential to be a major world problem. Not only are there disputes in the East and South China Seas but there is a territorial claim involving Arunachal Pradesh in north-east India. That, too, has been dealt with using what to us sophisticated diplomats in the western world seem to be unsophisticated changes in policy, or unexpected and sudden very fierce positions, that make everyone in the region nervous.
I used to be a director of the UK-Japan 21st Century Group, which involves a number of people in this House, as well as academics and industrialists. It is very sympathetic towards Japan which, as other Members have said, must be our strongest ally, and which is involved in our closest relationships in the Far East in all sorts of ways. However, I do not think that Japan has necessarily been completely correct in the way it has sometimes dealt with this. The purchase of the islands, which in some ways may have provoked this dispute, was perhaps not done in the best way that it could have been. There was surely going to be some sort of Chinese reaction. Japan has altered its own air defence identification zone a couple of times since it was established after the war. I do not suspect that it talked to China about that at the time.
More recently, of course, we had the visit by Prime Minister Abe to the war shrine, which everybody knew was going to be—again—provocative. Never mind what official Chinese government views are: clearly, the memory of the invasion of China by Japan in the 1930s and the 1940s is still very strongly in the minds of the Chinese people, with all the atrocities that happened at that time. There is still a great deal of understandable resentment of that period of history.
Added to that—not a tinder-box as yet, but a concern—is the very real United States pivot towards the Pacific, which affects Europe, the western hemisphere and our own defence requirements. It has resulted in changes in defence arrangements with Australia. China itself, through its own actions, is starting to see this as a move towards encirclement. This is clearly something it sees as a problem in relation to its own national security. Of course, we would look at that and say, “That is clearly provoked by a number of China’s own actions, and the ASEAN states are themselves going to be nervous and look for outside help, primarily from the United States and its strengthened relationship with the Pacific Rim because of these changes”.
As the noble Lord has just said, China sees itself as having had 100 years of humiliation and, as a result of that, there are all sorts of difficult diplomatic tasks. I was privileged to chair this House’s European Union Sub-Committee on External Affairs. We visited China three and a half years ago, looking at EU-China relations. There were a couple of things that really came out to me during that visit. One was meeting a retired senior military man at one of the Beijing universities. On the whole, when you go to China, you do not meet any officials who say anything that has not been agreed beforehand, and he was extremely positive in his own regard when he stated that one of China’s aims was to see the US Sixth Fleet banished from the East China Sea. That was clearly something he was putting forward to us; it was obviously not official Chinese government policy, but a view of how he saw the future. There are, therefore, a number of issues about the future that we can be very pessimistic about.
As the noble Lord, Lord Moynihan, said, I would like to hear the Minister’s views on the fairly strong statement made by Catherine Ashton—the noble Baroness, Lady Ashton of Upholland—on behalf of the EU, soon after the air defence zone was declared. Europe has in many ways a soft-power ability here; it certainly does not have a hard-power ability in respect to this region, but it does have the ability perhaps, as a non-threatening power in the world, to help China in some way through the diplomacy that is needed in this region.
Some people in Europe still see China—although I would not describe it as such—as an adolescent power in respect of being able to deal with worldwide diplomacy and as a great power; they say it still has a lot to learn. That is clearly a patronising way of putting it, but China is moving from being a defender of the developing world to being a great power again itself. It needs to make those adjustments and perhaps it needs help.
Sometimes, the situation in the Pacific is seen as equivalent to 100 years ago—1914—in Europe. Clearly, that is an exaggeration. But as the noble Lord, Lord Moynihan, and others have already said, the formula is there. The circumstances are there for many mistakes to be made and for actions to happen that are not intended. I still see this as one of the challenges for the globe and a way in which Europe can involve itself over the next few years.
Lord Triesman (Lab)
My Lords, I join others in thanking the noble Lord, Lord Moynihan. Before I say anything else, I want to say how much I appreciated the overview provided by the noble Lord, Lord Wilson of Tillyorn, which was obviously drawn from huge experience. When we talk about China and this region, it is important to get a sense of the breadth of history, and I appreciated that.
This is a helpful opportunity to debate what may be a very significant issue for regional and world stability in the area or what may be slightly less harmful than that—unhelpful posturing on the part of a number of regional players. What it certainly does do is raise the question of how these matters are being played out, as the Asian century kicks off, and the importance of the United States in trying to deal with those strategic changes.
Any review of the maps—and I have tried—shows the complexity of the overlapping air defence identification zones around Japan and in the East China Sea. China, as we have acknowledged, is in no sense the first. Half of the area of China’s new zone overlaps with the Japanese zone in the East China Sea, and that zone was introduced shortly after World War II during the United States occupation. It overlaps to a smaller extent with the South Korean and Taiwanese zones. The South Korean zone was created as long ago as 1951. All of the zones impose some requirements, although it is plain that the Chinese initiative goes far wider than the requirements that are seen in other zones.
Since 1950, there has been, as the Chinese Government are reasonable in pointing out, a joint United States and Canadian zone, but it is also true that the United States does not apply its procedures to any foreign aircraft that have no intention of entering its airspace. That is a big difference, and the noble Baroness, Lady Falkner, was quite right to remind us of that and of the absence of consultation. The United States on this basis does not accept the right of any coastal nation to apply ADIZ procedures to any foreign aircraft not intending to enter that airspace, and nor do we.
There is an overlap and there are competing zones with different procedures. That would be confusing and risky enough, but the issue is made much more confusing by the fact that some others, including Russia and China, do not recognise the Japanese zone at all. Historically, the Japanese have unilaterally on occasions increased their zone.
Given the volume of commercial airline flights and multiple routes—a factor that accompanies the growth of the economies in the region—the confusion and risk are considerably multiplied by any attempt to act on the zone procedures rather than, as I suspect may be the case, to use them as popular and populist rhetoric. Of course, the problem with populist rhetoric is precisely that it is popular. Consequently, each movement of aircraft or ships, in particular of military vehicles, ignites a popular demand for action to see off those insulting national prestige.
This is a climate in which the protagonists tend to test one another’s resolve. As soon as China announced its air defence zone in November, the United States, as we know, sent military assets through the zone. Chinese fighter jets shadowed the military aircraft and vessels shadowed vessels patrolling in the disputed waters. Japan’s leading newspaper reported that the Chinese intention is to expand their zone further until it gets more or less to the Japanese shore. There are close passes of shipping and there are fighters shadowing other fighters and bombers.
My difficulty in understanding what these regional neighbours see as the advantage in the increasingly bellicose language is that, if it is essentially rhetoric, all it does is destabilise the region without any obvious sensible purpose. Still less easy is it to understand the benefit of close brushes of a military kind, and there is no conceivable benefit in threatening to interfere with normal air traffic.
I take some marginal comfort from the fact that those threatening each other tend to be very disciplined nations with highly disciplined forces. They are probably not too liable to have accidents, but the issue must still be important enough for the international institutions to try to lower the temperature. Efforts in this direction are very important. There is too much at risk in destabilising the whole of Asia, which is otherwise stable in many respects. The region is productive and is overcoming poverty in many countries, aside from under the barbaric regime in North Korea. However, there are a number of instabilities at a top level. India and China are not in the most productive phase of their relationship and, as has been mentioned, the same is true of Japan and China.
Those are dangers where I think we could have an impact. I venture to suggest cautiously that there may be things we could do to help, even if the United Kingdom’s influence is, in a general sense, relatively small. First, all the nations in the region need to moderate their language. I was looking at some of the language of the Japanese defence Minister, Onodera, which is not conducive to the likelihood of people talking to each other in more moderate terms. They also need to start to ratchet down the nationalistic, somewhat paranoid, descriptions of what is happening, which have a big impact on populations. All parties are showing renewed nationalism and there is a very strong case for seeing whether we, who have considerable experience in this area, might be able to assist in developing a hotline which would allow those who may come into conflict in those areas—particularly at sea—to deal with it. I can say at first hand that we took up this issue, as a nation, in the upper Persian Gulf. In a sense, that is obvious and mechanical, but it is entirely practical.
Secondly, would it not be sensible if the critique of China, which is very clear and has been expressed by most nations in the region, were thought through in a little more detail? It is as if China were completely unique. The Chinese may have gone further on declared procedures, but they are entitled to ask why they are the only people with zones of this kind about which any questions are asked at all. We should ask whether that is likely to be productive. The noble Lord, Lord Moynihan is quite right to emphasise the differences this time, but there are wider histories and wider issues in which we might have a moderating effect.
Thirdly, all nations in the region must think more deeply about the offence caused by some of their leaders, particularly the genuinely distressing actions of the Japanese Prime Minister. It is distressing to see any Prime Minister visiting, honouring and sharing the history of notorious war criminals who perpetrated terrible crimes against the Chinese people. Were there to be an equivalent event in Europe, there would be an outcry. It would not be tolerated. The noble Lord, Lord Teverson, is 100% correct that it is right to raise this issue with friends in Japan, precisely because they are friends. I will put down for the record that, before he left, my noble friend Lord West told me that the Sixth Fleet has in fact vanished but only because it is now the Seventh Fleet.
Fourthly, we all know that this crisis and chronic dispute about a group of islands claimed by at least three nations needs to be dealt with. These uninhabited, uninhabitable rocks, known by different names in each of the three countries, are the prizes in this dispute. Perhaps this is because everybody understands they may anchor rights to gas, oil and fishery resources. China’s interest has plainly been awakened by the possibility of these assets coming into play.
Would the Minister consider whether the United Kingdom can offer a contribution here, even at the risk of potential rejection? The noble Lord, Lord Wilson, helpfully identified some things we could do, as did the noble Baroness, Lady Falkner, with whom I strongly agree.
A couple of our universities—this may be of particular interest to the noble Lord, Lord Wilson, because I am going to talk about Cambridge—specialise in the legal analysis of and recommendations for borders and lines of demarcation. They have a remarkable history. I first saw this work at first hand in difficult circumstances in Africa, and I acknowledge that not all of the issues that were raised have yet been concluded, but we and, for that matter, Cambridge University have no interest in sovereignty issues and we have no axes to grind in the area. There is therefore a real possibility of soft diplomacy being employed in that kind of circumstance.
I think that we could offer to get into exercises which, while of course they would not lead to commitments to the United Nations on the part of those countries in accepting the results, could result in tensions being reduced when efforts were made. The breathing space is almost always welcomed at the United Nations because it allows for the exploration of many alternatives, and studies are usually valuable and instructive for whatever the final outcomes may be. I believe that that is a useful sort of soft power. It does give rise to diffusion, and even were it to be rejected, it would be seen as a sincere and serious offer in the region.
An impartial offer will carry the message that events in the East China Sea and the regional security issues matter enough to us, half a world away, for us to take a practical interest. I hope that our Government will do so.
The Senior Minister of State, Department for Communities and Local Government & Foreign and Commonwealth Office (Baroness Warsi) (Con)
My Lords, I am grateful to my noble friend Lord Moynihan for calling this debate and to the noble Lord, Lord Triesman, and other noble Lords for their valuable contributions to it. I am grateful also for the context and detail provided by my noble friend Lady Falkner and the noble Lord, Lord Wilson. I will not try not to repeat too much of the history and background that noble Lords have already heard.
The Asia Pacific region is home to the world’s second and third largest economies—China and Japan. In 2012, together they accounted for 20% of global GDP and their economies are heavily dependent on each other, with around 20% of Japan’s imports coming from China, while Japan is China’s biggest source of foreign investment. As my noble friend Lord Moynihan rightly pointed out, there are numerous opportunities for the UK in the region. The UK is therefore committed to supporting the continued economic growth of the region and promoting the regional security and stability which underlie that. This was illustrated by my right honourable friend the Prime Minister leading the largest ever delegation to China last month, which followed a similar trade visit to Japan in 2012 and the enormously successful state visit of their Imperial Majesties the Emperor and Empress of Japan for Her Majesty the Queen’s Jubilee celebrations in the same year.
The noble Lord, Lord Wilson, asked about the current state of the bilateral relationship with China. During the Prime Minister’s recent visit to China, Premier Li described the UK’s relationship with China as,
“one that is indispensable for both of us”.
We are committed to deepening our co-operation with China in the interests of shared prosperity and security and developing our understanding of each other’s values. The UK wants China to prosper because that is good for Britain, and we have much to offer the Chinese as well. There are many things that we can and need to do together as countries of global influence and as permanent members of the UN Security Council, from negotiations with Iran to counterterrorism and climate change. However, I will certainly take back the comments and suggestions of noble Lords, along with those of my noble friend Lady Falkner and the noble Lord, Lord Triesman, on the various ways in which the relationship could be broadened through the use of more soft power. I can inform my noble friend Lord Teverson that during his visit the Prime Minister raised concerns about the issue of ADIZs and underlined our wish for a reduction in regional tensions and for improved communications between the parties. He also underlined the UK’s support for the recent EU statement.
We want China to succeed economically in an interconnected and global market. The repercussions of any nation failing would be damaging to us here in the UK. We see plenty of opportunities for co-operation. As China grows and develops, it will pursue its interests more actively. That is natural and we will encourage China’s emergence as a responsible regional and global player. It is to be expected that China will develop its military capabilities. We welcome Chinese maritime activities such as its involvement with counterpiracy in the Horn of Africa and its growing role in international peacekeeping. We encourage similar activities across the board. We are concerned about aspects of China’s military development, most notably the lack of transparency, but we believe that we can best encourage change and enhance mutual understanding through engagement.
We acknowledge that others in the region have concerns about an increasingly self-confident China which they see as using its vast economic power and other forms of leverage to gain the upper hand in territorial disputes. We have seen this recently by the regional reaction to China’s establishment in November of the air defence identification zone over the East China Sea, the subject of today’s debate. I shall comment now on that specific issue. My noble friend Lord Moynihan asked about the UK’s view on the ADIZ. While the UK does not take a position on underlying sovereignty issues, we have a clear interest in maintaining the freedom of navigation and overflight. The legitimate use of airspace is essential for security, stability and prosperity. Actions that bring, or appear to bring, these rights into question are not conducive to finding lasting solutions to the differences that exist in east Asia. The UK therefore fully supports the EU statement, which notes with concern China’s establishment of an East China Sea air defence identification zone. It heightens tension in the region and raises the risk of escalation. We have encouraged and will continue to encourage China and its neighbours to pursue through diplomatic means regional policies that ensure stability, diffuse tensions and resolve the dispute constructively without putting the freedom of navigation or commerce at risk. It is in no one’s interest that tensions escalate to a point of conflict and it is why it is for all countries in the region to take measures to avoid this conflict.
My noble friend Lord Teverson asked about the role for Europe in Asia. I fully agree that there is a role for Europe in Asia and the UK is working with other EU members to explore where the EU can make a difference, drawing on Europe’s experience and expertise on maritime issues and those relating to disaster relief. The EU hosted a seminar on maritime security with ASEAN in Jakarta last year. We recognise that other countries in the Asia-Pacific region are concerned that we may see further examples of assertive Chinese behaviour and we therefore urge all parties to work together to reduce tensions and to try to resolve these issues peacefully.
During his visit to China, the Prime Minister underlined our wish for improved communication for constructive engagement and for diffusing tension. I would urge, as I am sure noble Lords on all sides of the House would, that both China and Japan establish mechanisms to promote understanding and co-operation and to manage incidents. I take on board what we have heard today regarding how they need to move forward and go beyond a point where even ambassadors are not prepared to sit and discuss issues, as we saw on “Newsnight”.
We recognise that other countries have concerns that China might extend its ADIZ further, including into the South China Sea and Yellow Sea, resulting in heightened regional tensions. The South China Sea is of global importance, being a vital trade artery through which up to half of world trade passes. A crisis there would negatively impact on world trade and have a direct impact on UK prosperity and security interests. While we do not take a position on the underlying sovereignty disputes, we of course have a clear interest in maintaining freedom of navigation in that area. We have therefore encouraged all parties to try to resolve these matters in line with international law, including the United Nations Convention on the Law of the Sea, and have encouraged efforts to make progress on the ASEAN-China Code of Conduct. We have offered our assistance in promoting confidence-building measures and in sharing maritime experience.
We regularly discuss foreign policy issues with the US—that point was raised by a number of noble Lords—and our discussions on areas of interest in Asia Pacific have included China’s ADIZ. We welcome the US rebalancing in the Asia Pacific region, which is in line with our own renewed engagement. In meetings between Assistant Secretary Russel, the Foreign Office and No. 10 earlier this week, views were exchanged on a wide range of Asia Pacific security issues, including the current tensions in North East Asia.
The Government are working increasingly closely with the US and other allies in the region in areas where we have common aims, such as cybersecurity, the South China Sea, North Korea, Burma and encouraging China to commit to rules on transparency and good governance. Our historical ties, including through the Commonwealth, membership of the five power defence arrangements, a garrison in Brunei, our membership of the EU and our strong trade and investment links, make us a very relevant player in the region in our own right and we continue to invest time and resources into building these relations.
We will continue to pursue an all-Asian policy, engaging constructively and strengthening relations with nations across the region. We urge all parties to strive to resolve issues peacefully so that all countries can benefit from the region’s continued prosperity and growth. We will continue to work tirelessly to ensure that the UK remains a key partner for the region. I once again thank my noble friend for calling this debate and shedding light on what is an incredibly important issue.