The Parliamentary Secretary, Cabinet Office (Lord Bridges of Headley) (Con)
My Lords, if the House will give me leave, I wish to clarify the Government’s position on the first policy—check-off—that the House will consider this afternoon. I have been a Member of your Lordships’ House for a little under a year. One of the many lessons I have learned is that when Ministers stand at this Dispatch Box and face cannons to the right of them, cannons to the left of them, cannons in front of them—and maybe even behind them—it is usually best to pause and to ask the reason why. Uncomfortable though this may be, it is nothing like as uncomfortable as charging on.
I have met, as has my noble friend, a number of your Lordships to discuss the clause on check-off, and I think it only fair to say that many of your Lordships do not support the Government’s contention that the measure we are debating will modernise the relationship between a trade union member and his or her trade union. I fear that my trying to convince your Lordships of our case this afternoon may simply add grist to the mill of those who see this measure as a means of undermining the trade unions themselves. That is certainly not—and never has been—the Government’s intention. Trade unions play a crucial role in companies, organisations and communities across the country. Furthermore, arguments have been made with considerable vim and vigour that by ending check-off and moving to direct debit those on low pay—especially those who have payday loans—might have to cease being trade union members, or have to pay extra bank charges. Again, that is not our intention, and never has been.
To show that the Government mean this and to avoid further acrimony on this issue, the Government will support the principles behind the amendment from the noble Lord, Lord Balfe. Amendment 21 would allow check-off to remain where there is an agreement with the employer to provide check-off. It sets out how the administration of this will be paid for and allows that employees can pay by another means should they wish. This amendment ticks three boxes: cost, which will be borne by the unions, not taxpayers; consistency across all sectors; and control, as individuals would be able to choose how to pay their union. However, the Government have one misgiving. We genuinely understand the noble Lord’s wish to ensure that only the specific costs required to administer check-off are charged to the trade union. I want to ensure that we would not expect to see undue costs applied at financial detriment to the trade union.
However, the Government do not feel it appropriate for this role to be undertaken by the Certification Officer—we will debate that role in due course—and we have therefore accepted the principle of allowing check-off to continue where the union meets the costs. I therefore ask my noble friend Lord Balfe not to press his amendment and to allow the Government to bring back an amendment at Third Reading for consideration by this House.
I would like briefly to touch upon one other aspect of Clause 14—its scope. We have produced a clear list of bodies, taking as our starting point the Freedom of Information Act, and we will share this list as part of draft regulations prior to the Third Reading of the Bill in this House.
As to organisations which may be in scope in the future, legitimate concerns have been raised about this clause, and Clause 12 relating to facility time, applying to organisations only partly funded by public funds. To address this, I shall not move Amendment 21A but will bring back an amendment at Third Reading that would allow only those bodies mainly—I emphasise “mainly”—funded by public funds to be added to the provisions of this Bill, and that would be via the affirmative process. This will apply to both Clause 12 and Clause 14.
Finally, the noble Baroness, Lady Hayter, raised an important concern regarding the impact of the clause’s scope on charities, and the Government share her concern. Where organisations are what the general public would consider to be charities—such as Oxfam or others doing valuable charitable work funded by the public purse—it is not our intention to include them within the scope of the Bill. I am working closely with officials and with the noble Baroness to find a way in which such charities can be assured that they will not be included.
Before I sit down, I thank the noble Lord, Lord Mendelsohn, and the noble Baroness, Lady Hayter, as well as my noble friend Lord Balfe, for their good-spirited engagement on this issue, and I hope that we have found a resting place on which we can agree.
Lord Bridges of Headley
My Lords, I apologise to those who have had to edit their speeches so quickly and spent time over the weekend to no avail. In response to the points on charities made by the noble Baroness, I completely agree, and we will seek to address this point. As regards the point made by the noble Lord, Lord Dykes, about further consultation and what the noble Baroness, Lady Wheeler, said about facility time, she is right. We have made further progress on the reserve power to cap facility time.
Obviously, we are not discussing Clause 12 today, but I will update noble Lords on where we are. Our commitment is to engage the cap only on the basis of evidence from the transparency measure. Our proposal is that the power will not be exercised at all before there are at least two years of data from the bodies subject to the reporting requirement. Following this, should a particular employer’s facility time be significantly above the levels of those of comparable organisations, the Minister will send and publish a letter to the employer drawing attention to the concerns. The employer will have the opportunity to set out the reasons for the level of facility time. The employer will always have a year to make progress in relation to their facility time levels. Nothing would be done until a third set of reporting data was published. If there is insufficient progress, the Minister will then be at liberty to exercise the reserve power and make regulations to cap facility time for that employer or those employers. Our intention is to set out the key elements of the arrangements for triggering a cap in Clause 13 when we introduce it.
As regards the point made by the noble Lord, Lord Tyler, on delegated powers, I absolutely hear what the noble Lord is saying. The substance of regulations will be available before Third Reading. I very much hope, therefore, that the skeletons will be well and truly buried. On that point, I would like to thank your Lordships for the comments that were made this afternoon.
Lord Balfe
This has been a very pleasant little debate. The noble Lord, Lord Kerslake, reminded me that I did not declare my interests, which are to be found in the register. I thank all the people who have contributed to the debate, in particular my noble friend Lord Cormack. When I was first appointed by the Prime Minister as the Conservative Party envoy to the trade union movement, I was met with much suspicion within the party. My noble friend was one of the first people to welcome me and point out the work that he has done over many years with unions, including with USDAW and on Sunday trading and other things. I appreciate the support that I have had from him and from many other noble Lords.
I also appreciate the support and briefings that I have had from UNISON, Prospect and the TUC. Several million low-paid workers depend on check-off. UNISON has more than 7,000 agreements in the public sector and a further two-and-a-bit thousand in the private sector. This is not a very small thing but a major part of low-paid workers’ security. I am pleased that we have secured this. I thank the Minister—he is not only a noble Lord but a noble Minister today—for this and I am happy to withdraw the amendment.