Wednesday 27th April 2016
(7 years, 11 months ago)
Commons ChamberTrade Union Act 2016 View all Trade Union Act 2016 Debates Read Hansard Text Amendment Paper: Commons Consideration of Lords Amendments as at 27 April 2016 - (27 Apr 2016)
16:21 - The House divided: - Ayes: 312 / Noes: 260 - Question accordingly agreed to.
16:36 - The House divided: - Ayes: 307 / Noes: 268 - Question accordingly agreed to.
The Minister for Skills (Nick Boles)
I beg to move Government amendment (a) to Lords amendment 2.
Madam Deputy Speaker (Mrs Eleanor Laing)
With this we will consider the following:
Government amendment (b) to Lords amendment 2.
Lords amendment 17, and Government motion to disagree, and Government amendments (a) to (c) to words restored to the Bill.
Nick Boles
The measures in the Bill aim to modernise the relationship between trade unions and their members and strike a fairer balance between the rights of trade unions and the rights of people who rely on public services, by ensuring that strikes happen only when unions have secured a clear, positive and recent democratic mandate. Consideration in the House of Lords has made important changes to the Bill, the great majority of which the Government believe will improve the Bill. However, the first group of amendments deals with those issues on which the Government do not support the proposed changes.
The first group is about electronic balloting and facility time. We have reflected carefully, in the light of the strong views expressed in debates in this House and in the other place, and I will take each issue in turn. As I have said before, the Government have no objection in principle to electronic balloting. I have also said before, and I am happy to say it again at the Dispatch Box, that it is likely to be common in 20 years’ time. We are seeking a degree of sensible caution on this matter.
Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)
The Minister will remember our many conversations about this in Committee. He says that he is not opposed to electronic balloting in principle and he accepts that it might come in. We can see the Lords amendment before us and there are moves towards a pilot scheme. Electronic balloting is used by many organisations including the Law Society, many businesses and indeed the Conservative party for the purposes of the mayoral elections. Why not just do this now?
Nick Boles
I have greatly enjoyed debating the many detailed clauses of the Bill with the hon. Gentleman over a long period when he occupied a different post on the Opposition Front Bench, and if he will give me time, I will explain why I am not quite ready to rush to the nirvana that he describes.
We are seeking a degree of sensible caution to ensure that important votes—these are indeed statutory votes—are safe and secure, so I am not asking hon. Members today to reject the clause added to the Bill in the House of Lords on electronic balloting. However, I am asking for agreement to a small but important change to ensure that we proceed prudently on the basis of evidence as we take this important step.
Andrew Gwynne (Denton and Reddish) (Lab)
The Minister will no doubt have seen the evidence from the Electoral Reform Society that the incidence of fraud in electronic balloting is no different from the incidence of fraud in postal balloting. In the light of that evidence, what is his objection?
Nick Boles
The hon. Gentleman will have to be a little patient, because I am going to come on to talk about evidence from around the world of some of the problems that other systems have encountered when trying to embrace electronic balloting too quickly and without adequate preparation.
I appreciate from previous debates on the Bill in this House that there are differences of opinion about whether electronic balloting is sufficiently safe and secure. Lord Kerslake said that he personally was convinced that the case for it had been made, and we have heard from others in recent minutes that they too are so convinced, but Lord Kerslake was good enough to say that he appreciated that others were not. I remind the House that the Open Rights Group gave evidence to the Speaker’s Commission in which it neatly summed up the concerns over the security of online voting. It stated:
“Voting is a uniquely difficult question for computer science: the system must verify your eligibility; know whether you have already voted; and allow for audits and recounts. Yet it must always preserve your anonymity and privacy.”
That was the view of the Open Rights Group, and that is the view that we must investigate more carefully. Lord Kerslake explained that that was why his clause, added to the Bill in the other place, required that a review should be commissioned.
There have already been many reviews looking into this matter, such as those carried out by Electoral Reform Services, WebRoots Democracy and, of course, the Speaker’s Commission on Digital Democracy. They have made encouraging comments about a move to electronic ballots, but none has been able to provide assurance on managing the risks. While there is still this doubt, I can see merit in exploring the issues further. And of course the important difference is that this review will be specifically in the context of electronic ballots for industrial action. So, in accepting that there should be a review, we accept the spirit of the clause on electronic balloting. In fact, we accept virtually the entirety of the amendment made by the Lords on electronic balloting.
Andrew Gwynne
I understand the position that the Minister is setting out, but I am struggling to understand his logic. If he is saying that electronic balloting is neither secure nor anonymous, is he implying that when Conservative party members vote for a particular candidate online in an internal Tory party election, it is neither secure nor anonymous?
Nick Boles
With the greatest respect, I would point out to the hon. Gentleman that that is an internal election within an independent organisation. We are talking here about statutory elections, which are important because the public has a deep interest in their result and it is quite right that we should hold them to a higher standard than we do others.
Wes Streeting (Ilford North) (Lab)
The Minister sounds almost guilty of double standards on this issue. He says that he has accepted the majority of the Lords amendments, but he has neglected to adopt any of those components that require substantial action by the Government. What possible objection could he have to piloting an e-balloting scheme? I think he realises that he just does not have a reasonable argument against it.
Nick Boles
If Opposition Members will just give me a minute, they will be able to hear my argument. Then they can decide whether they think it is reasonable or not.
Nick Boles
No, I am now going to satisfy Opposition Members by setting out my argument, after which I will be happy to give way if they want to comment on it. There is only one element in the amendment made by the House of Lords with which we cannot agree and that is the strategy for roll-out, which prejudges the outcome of the review and irrevocably commits the Secretary of State to press ahead with a strategy for the roll-out of electronic balloting, irrespective of the review’s findings.
Mr Kevan Jones (North Durham) (Lab)
I am interested to hear what the Minister says about that. The last Labour Government piloted e-voting, and the Electoral Commission report afterwards indicated that there was no evidence of fraud or other things, but what did for it was the scandal around postal voting in certain areas. There was no evidence in the report that e-voting was any more corrupt or inefficient than any other type of voting.
Nick Boles
If the hon. Gentleman is correct and if there is no problem, the review will conclude so and will report to Parliament that there is—
Nick Boles
No, I am not going to give way again; I am going to carry on with my argument. The review will report accordingly to the House.
The power to permit electronic balloting already exists in section 54 of the Employment Relations Act 2004, but we have not yet exercised it because we have not been convinced, and neither have any previous Government, including a Labour Government that held office for 13 years, that the system would ensure privacy, opportunity and minimise the risk of fraud and malpractice. There has been much positive progress in the way that technology can help to address such issues, which is reflected in the reports I have cited.
We have been clear that we will be willing to use the power when we are convinced that the concerns have been adequately addressed. The legislation is framed in a way that requires us first to be satisfied on such matters, and for good reason. That is why, instead of a strategy for roll-out, I am today seeking agreement to a statutory requirement for the Government to publish their response to the review, which would be laid before Parliament, making it readily accessible to hon. Members, who could ask questions and raise matters in the House in the usual way.
Chris Stephens (Glasgow South West) (SNP)
Before the Trade Union Bill reached the House of Lords, the Minister wrote a letter to ministerial colleagues that was leaked to the Socialist Worker, for which the Minister may have an explanation. Will he confirm that he will use secondary legislation to put e-balloting in place should the pilot be successful?
Nick Boles
Madam Deputy Speaker, I can assure you that my relations with the Socialist Workers Party or its newspaper are probably rather less good than the hon. Gentleman’s, so it was not through my good offices that it got hold of any document—not that I accept that it did get hold of any document.
The hon. Gentleman asks a reasonable question, and I have made it clear that the Government have no objection in principle and that we expect statutory elections eventually to move towards online voting, but we will do that with trade union strike ballots when we are convinced that such voting is safe. That is why we want an independent review that will report to Parliament. I will not prejudge its outcome, because if I did, it would be slightly pointless to have the review in the first place.
Nick Boles
I am happy to give way and will do so first to the hon. Gentleman.
Mr Anderson
The Minister said before that online voting was okay for the election of the Tory candidate for Mayor of London because the Conservative party is an independent organisation. I hope that he would accept that trade unions are also independent. Did the Tory party carry out a review into how secure the system was before it set up the discussions for having electronic voting for the Tory mayoral candidate?
Nick Boles
I am sure that the hon. Gentleman heard my previous answer and he must recognise that these are statutory elections. Internal elections for candidates in any party are not statutory. They might be subject to problems, but that is a problem for the organisation, not for the public. The public have a right to expect a higher standard in the consideration of statutory elections.
Nick Boles
I will not give way to the hon. Gentleman; he has had a go. I will give way to the hon. Members for Brent Central (Dawn Butler) and for York Central (Rachael Maskell), who have not yet had a go, but all hon. Members are welcome to speak in this debate in their own right, so it would be right to make some progress.
Dawn Butler
I am grateful to the Minister for allowing me to speak. He says that it might be pointless to have a review and all the other various stages, and I agree with him. A review of the technology is pointless, because it already exists. It has already been mentioned that the Conservative party has used the technology and, as a previous programmer, I can tell the Minister that it already exists and is secure. It has been used not only in various businesses and independent organisations, such as the Conservative party, but in “The X Factor” and various other TV shows. The Minister does not need a report; he just needs to move on to the next stage.
Nick Boles
The hon. Lady is a fan of “The X Factor” and so are many of us, but she will recognise that, important though it is to the public, “The X Factor” is not a statutory election. While I am absolutely happy to acknowledge her expertise, I hope that she will acknowledge the evidence of the Open Rights Group. It is not a Tory front organisation—she can investigate it—but an independent specialist organisation that gave evidence only last year and said that there were specific issues to overcome. She will also have to explain to the review why it is that several countries have experimented with online voting and then reversed the decision because they found it to be unsafe. The review will allow us—
Rachael Maskell
Will the Minister be specific and say how electronic voting is less secure than postal voting, which has additional risks?
Nick Boles
No, I will not be specific, because we are going to set up an independent review involving people with real expertise in the matter. The hon. Lady will be welcome to give evidence to the review, which will produce a report that will be laid before Parliament. She can then interrogate the report and the Government’s response.
Mrs Flick Drummond (Portsmouth South) (Con)
On the point being made by the Opposition about the Conservative party’s online voting, I found it impossible to get on to the site and was unable to vote for my candidate in the mayoral election. Did my hon. Friend experience the same issue?
Nick Boles
I did not have that issue, but that does show that there can be issues with online voting, as there can be with postal voting. While it is not a matter of enormous public interest, because it was not a statutory election, we would be very worried if a statutory election, such as a union strike ballot, was subject to the same level of problems.
Nick Boles
Have I not given way to the hon. Gentleman already? I will give way one more time and then I will get on.
Chris Stephens
Is the Minister seriously suggesting that whoever is the Conservative party candidate for London Mayor is not a matter of interest to the public? I find his argument bizarre.
Nick Boles
I am quite happy to explain again that it is not a statutory election.
The review will allow us to consider again the case for e-balloting and ensure that we have assessed the latest technology. Taken together, the review and the Government’s response will enable the Secretary of State to make a properly informed and transparent decision about the risks of achieving safe, secure electronic balloting, and therefore whether such a system should be rolled out.
Liz McInnes (Heywood and Middleton) (Lab)
The Minister has invited us to contribute to the review. I wonder whether he will accept electronic submissions or do we have to get our quills and parchment out?
Nick Boles
The hon. Lady makes a good point—[Interruption.] My hon. Friend the Member for Salisbury (John Glen) suggests that submissions should be inscribed on vellum, and my right hon. Friend the Minister for the Cabinet Office has a particular enthusiasm for that means of communication, but I prefer the more modern kind, so I suggest that an online submission—perhaps even by WhatsApp—might be appropriate.
Turning to the reserve power to cap facility time, the Government do not agree with the Lords amendment.
Mr David Davis (Haltemprice and Howden) (Con)
As my hon. Friend knows, I am in favour of electronic voting, but the route that he is taking is the correct one. The one real fear out there, which can be put paid to right now, is that this approach is designed simply to delay the onset of online voting. Will he tell the House that, when the Minister receives the report, it will be dealt with with appropriate dispatch?
Nick Boles
I thank my right hon. Friend for his contribution on this and other important matters. He has made a significant contribution to the improvement of this Bill. On his particular question, the amendment that we propose agrees with the noble Lords that this review should be commissioned within six months and then reported to Parliament. I have made it clear that we have no objection in principle to e-balloting. If the review suggests that it is safe to embrace, we will proceed with it. I think he will have noted that the amendment specifically suggests that we should be able to introduce pilots. One issue with the existing provisions is that it might not be possible to do a pilot without going for a full application. Such pilots might well be an appropriate phase after the review has been completed.
Let me return now to facility time and the facility time cap. The Government do not agree with the Lords amendment and, in consequence, I am moving amendment 17, which brings back the reserve cap, but with safeguards that respond to the concerns that were expressed in our debates and that led to the deletion of the clause in the other place and were the subject of quite forensic inquisition in both Houses.
Together with the publication requirements, it is my view that a reserve power to cap facility time to a reasonable level delivers our manifesto commitment to
“tighten the rules around taxpayer-funded paid facility time for union representatives.”
I shall reiterate what I said when this House was previously considering the Bill. We are not seeking to ban facility time. That has never been our intention. Our strong preference is that transparency alone should be enough to change practices in the public sector, with employers voluntarily reducing their costs where they are found to be spending more on facility time than is reasonable.
Chris Stephens
The Minister is being very generous. In the aforementioned leaked memo to which I referred earlier, there was an indication that there would be concessions and discussions with the devolved Administrations in relation to facility time. Will he confirm whether consultations have taken place with the devolved Administrations, or whether it is his intention to dictate to the devolved Administrations what the facility time should be for their own workforce?
Nick Boles
I am sure that the hon. Gentleman will understand that I never comment on articles in the Socialist Worker. He will also understand that we have regular conversations with Ministers in the devolved Administrations, but all of the matters addressed in this Bill are reserved matters. It is a matter not of dictating, but of this Government fulfilling their duty to legislate on the matters for which we have exclusive responsibility.
Jo Stevens (Cardiff Central) (Lab)
Specifically on the point about devolved powers, is it not the case that in that letter the Minister received legal advice saying that there is a very weak case for enforcing those powers on the Welsh Government?
Nick Boles
The hon. Lady, who made an admirable and, for me, rather challenging contribution to our deliberations in Committee, knows that we do not comment on legal advice.
If publication, and the proper monitoring and recording that it necessitates, do not achieve the aim of bringing excessive spending on facility time back down to a reasonable level, it will be necessary to consider the imposition of a cap. A reserve power is very much a power of last resort.
Nick Boles
If the hon. Gentleman will forgive me, I wish to explain what we are now proposing, because it is a little different from what we proposed previously. I will give way to him before I conclude on the facility time cap.
A reserve power is very much a power of last resort. Although our amendment 17 brings back the reserve power, we are not simply replicating the provision that this House considered previously and that was deleted from the Bill in the other place. The amendment before the House today incorporates a number of safeguards that will trigger how and when the reserve power to cap facility time would be exercised. We have listened to the concerns of Members of this House and the other place and have sought to address those concerns in the amendment.
Nick Boles
Let me finish this bit, because I am trying to explain what is different about what we doing. I will then be very happy to give way to my hon. Friend.
Nick Boles
Of course.
It is our intention that exercise of the reserve power will not even be considered before there are at least two years of data from the bodies subject to the publication requirement. Following the publication of the second year’s data, should a particular employer’s facility time be a cause for concern, having regard to all relevant factors, 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. They will then have at least a further year from the date the Minister notifies it of concerns to make progress on its facility time levels. Nothing will be done until a third year’s data have been published. Only then will the Minister be at liberty to exercise the reserve power and make regulations to cap facility time for those employers.
Mr Anderson
A person who enjoys facility time will spend a lot of that time trying to manage huge reorganisations and redundancies, most of which are the responsibility of the Minister’s former Government. Can he explain what he means when he says things such as “excessive” and “reasonable”? Over the past four years, Gateshead council has lost 48% of its budget and 2,000 people have been made redundant. People have been engaged day and night, trying to redeploy and retrain people. How on earth is a Minister in Whitehall going to be able to pull all that together and say, “Well, that works for them, but it does not work for others.”? It is nonsense.
Nick Boles
The hon. Gentleman is right. What is reasonable can vary according to the organisation and the situation of that organisation, which is why we want to collect two years of data before we establish what seems to be a reasonable level by looking at comparable organisations. I will come on to the fact that we will also be creating the possibility of removing the cap from an organisation if it has a particular situation, such as the one that he describes, that would justify a much higher level of spending on the different kinds of facility time.
Alec Shelbrooke
What my hon. Friend is trying to make explicit is that, across the trade union movement there are shop stewards who do an excellent job, day in, day out, but there are some situations where the facility time is taken advantage of. One merely has to think of Grangemouth. Can he be clear on this? He has struck the right balance in the way that he looks at things, but at no time has he said that all shop stewards are swinging the lead or that a lot of valuable work goes on.
Nick Boles
I am very happy to confirm and applaud what my hon. Friend said. In truth, I would be as worried if an organisation was declaring no spending on facility time as if it was declaring excessive spending on facility time. Helping people with training or with health and safety issues is not just appropriate, but vital in a well-run organisation. He will recognise, as will Members across the House, that there have been agencies and Departments—we have had direct dealings of this within the civil service—that were allowing an abuse of the system. We want to restore confidence in the system by making it clear that we need transparency. If there is still excessive behaviour, we will introduce a cap.
Tommy Sheppard (Edinburgh East) (SNP)
In order to try to help the House understand why you feel that there is a need for this cap on facility time, could you tell the House what percentage of public sector employers excessively grant facility time and how many of them would this cap be beneficial in stopping?
Nick Boles
I am not at all sure, Madam Deputy Speaker, whether you feel that there is a need for a cap, but I think the hon. Gentleman was referring to me.
Madam Deputy Speaker (Mrs Eleanor Laing)
Order. Let us clear that up. The hon. Member for Edinburgh East (Tommy Sheppard) will get used to the fact that if one says “you”, that means me. If one says “the hon. Gentleman”, that means the Minister.
Nick Boles
Thank you, Madam Deputy Speaker. I thought that for your sake I should clarify that.
The hon. Gentleman asks a very reasonable question, but I hope he understands that until we have applied the transparency clause, we do not know the current level of spending across the broader public sector, so we cannot judge which organisations are spending in excess.
Nick Boles
No, I will finish. We know that when we introduced a similar provision in the civil service, we found that some organisations were acting perfectly responsibly and others were allowing an abuse of the system, hence we introduced a cap in the civil service. That has saved the taxpayer money and has not in any way undermined the proper fulfilment of responsibilities by trade union representatives. I shall now make some progress—
Stephen Doughty
The Minister is indulgent. I appreciate his generosity. Given some of the rhetoric from some of his ministerial colleagues and others about the matter, does he recognise that people might have a reasonable suspicion that even after collecting the data, the Government might seek to use these powers perniciously, going after particular groups whose practices they are not happy with, rather than using the powers in the way that he describes? Does he accept that that is a reasonable suspicion?
Nick Boles
I do not. After all, I am the Minister and I will be in charge of this until the Prime Minister decides otherwise. The hon. Gentleman has had enough time to judge whether or not I am sincere. He will also note that in the amended proposals that we are putting forward today, there have to be three years’ data before we can introduce a cap, and that where there is some concern about the level of spending we have to allow the organisation an opportunity to explain why that level of spending is appropriate. That responds in part to what the hon. Member for Blaydon (Mr Anderson) said. Partly through the good offices of hon. Members in this House and in the other place, there are now greater safeguards to ensure that there can be no abuses.
Mr Kevan Jones (North Durham) (Lab)
I am a bit confused about what the cost will be of a Minister or civil servants sitting down and sifting through mountains of data from every council and every public body covered by the provision to determine whether facility time has been abused, when from his own lips the Minister has just admitted that he does not know whether there has been any abuse. If there is not a problem, why are we bringing in this expensive system that is impossible to regulate?
Nick Boles
I do not accept that it will be expensive. Although there are no data because the transparency clauses have not yet been applied, I point the hon. Gentleman to estimates that the public sector as a whole spends on average 0.14% of its total pay bill on facility time, the civil service spends 0.07%—half of that—and the private sector spends 0.04%. I can promise him that if he multiplies the pay bill of the public sector by that percentage, he will arrive at a very large figure indeed, and a great deal more than the cost of implementing these clauses.
Nick Boles
I have been generous and I will be generous again, but I shall try to make some progress.
As I indicated, the amendment provides that the cap may be disapplied for as long as necessary and to the extent necessary for individual employers. This would enable a temporary lifting of the cap for one or more specific employers, and we propose to use it in circumstances where the employer and Ministers consider it necessary. We envisage that should a particular employer experience a need for more facility time, perhaps during a period of change or following a particular incident, Ministers can allow this so that facility time can be increased to respond to the circumstance. The reserve power that this amendment would deliver is considerably improved from the version that was deleted in the other place, and I urge the House to support it. I commend the amendments to the House.
Kevin Brennan (Cardiff West) (Lab)
I want to make it clear right at the outset that we remain opposed to this Bill. Despite some of the changes that it has undergone in another place, it remains a dreadful, mean-spirited, partisan, petty piece of legislation. Having got that off my chest, I recognise that Members in another place have made a valiant attempt to make a silk purse out of this particularly malformed sow’s ear, so that after today it may end up being a slightly less ugly sow’s ear than it was, but it will remain a malodorous porcine lug, for all their lordships’ noble efforts.
Many of the changes that peers made are welcome if we consider the crudeness of the Bill in its original form. On the first group of Lords amendments and the Government’s response to them, Lords amendment 2 was passed in the other place by 320 votes to 181, requiring the Government to commission a review of electronic voting in industrial action ballots within six months of Royal Assent. After the review, amendment 2 would require the Government to publish a strategy for rolling out electronic voting.
Government amendment (a) would revise Lords amendment 2 so that Ministers are required only to publish a response to the review, but need not take further action to actually introduce e-balloting. The Government have consistently resisted e-balloting on the grounds that they still had concerns about the safety of electronic voting, despite the fact, as many hon. Members have pointed out, that the Conservative party used electronic ballots for the selection of its London mayoral candidate, although I suppose the Conservatives may now be regretting that, given the poor performance of the candidate they selected using that method. Perhaps that explains the Government’s concern.
It is clear that the Government’s real objection to e-balloting and, indeed, to workplace balloting, which we argued for unsuccessfully in this House and in the other place, has been that they do not want high turnouts because their new threshold barriers could be more easily reached if more people were more easily able to vote.
Not only will all ballots for industrial action require a minimum 50% turnout under the Bill, but those working in the loosely defined “important public services group” will face an additional hurdle of needing a 40% yes vote from all those eligible to vote. That means that these thresholds place higher requirements on those industrial action ballots than on any other democratic process within the UK. For example, the 50% turnout threshold was not reached for the last London Mayoral election or most local government and devolved elections.
The Government have agreed that Ministers should be required to commission an independent review of the use of e-ballots for industrial action within six months of Royal Assent. They have agreed that it will be possible to run pilots as part of that review, as the Minister said, but the Government are proposing that after the review Ministers would need to publish a response, but not necessarily to take any further action. There would be no requirement to publish a strategy for rolling out electronic voting.
Kevin Brennan
I do not know whether future Prime Minister Gove will appoint the Minister to the Cabinet—we shall have to wait and see—but the right hon. Gentleman is exactly right. That is why the Government’s amendment is unnecessary and dilutes the effect of accepting the rest of this Lords amendment. However, I am seeking to put on record the fact that, should any future Minister take another path, having had a clear recommendation in the report, one could only interpret their intentions as less than honourable.
Nick Boles
On a point of order, Mr Deputy Speaker. Could you advise me whether it is in order for the House to spend quite so much time talking about my career prospects, because I do not feel that that is really helping?
Mr Deputy Speaker (Mr Lindsay Hoyle)
I am not sure whether that is good or bad for the House.
Mr Kevan Jones
First, I declare an interest as a member of the GMB. My wife also works for a trade union.
We often hear the cry from Conservative Members that the turnout in union ballots is not high enough. We have before us a mechanism that would at least assist with that, by getting more people to participate in e-balloting. I have seen some pretty poor excuses for statements, but today’s statement about why we cannot introduce e-balloting for trade union ballots must win the prize for the poorest argument.
This Government pride themselves on wanting to be an e-Government on everything from driving licences to the new universal credit, which can only be accessed online. The Minister said the Government need to be convinced that e-balloting would be secure, but in response to numerous interventions from Labour Members, he did not articulate the reasons why he thought the process was in any way insecure. I would respect his position more if he came up with reasons and said what the problems are. The idea of a review is clearly the classic civil service “kick it into the long grass” approach.
Nick Boles
I do not want to take up time because lots of Members want to speak, but may I draw the hon. Gentleman’s attention to elections conducted in the Philippines? Interestingly, a company called Smartmatic—chaired by a former Labour Minister, his colleague Lord Malloch-Brown—was put in charge of conducting online voting for the entire population of the Philippines. There was a hack, in which the identity data of 70 million people were stolen, and a report said that every registered voter’s data were open to abuse.
Mr Jones
I know this Government love things foreign, but may I tell the Minister, with great respect, that he need not go very far to find examples of where e-voting has worked and there have not been any problems? I am referring to the pilots that took place in 2004, including in my constituency and others in the north-east, after which the Electoral Commission’s report found no problems with e-voting. He will obviously want to go on a fact-finding trip to the Philippines to look at this—I am sure we would all welcome his going there—but the fact is that he just needs to look at has happened in this country.
I must say that the Minister put up the very flimsy defence to the question, “If it’s all right for the Conservative party, why is it not all right for the trade union movement?” I would have respected his position if he had come up with concrete reasons why he thought electronic—[Interruption.] Well, he cites the Philippines, but has he actually looked at the Electoral Commission’s report on e-voting in 2004? It quite clearly stated that there was no issue of fraud or any risk to security. The fact that the Government then got cold feet about what I must say was a rather hysterical campaign against postal voting is neither here nor there.
Madam Deputy Speaker (Natascha Engel)
With this it will be convenient to consider the following:
Lords amendments 3 to 6.
Lords amendments 7 and 8, Government motions to disagree, and Government amendments (k) to (p) in lieu.
Lords amendments 9 to 16 and 18 to 29.
Nick Boles
The amendments improve the Bill and take account of a number of points of concern raised by Members of both this House and the other place. This is a raft of amendments, and I hope hon. Members will understand if I focus on the highlights in the order in which they appear in the Bill.
The 40% ballot threshold relates to strike action in important public services. The broad reference to “ancillary workers” has been removed and a “reasonable belief” defence for unions has been added. Those changes provide more clarity and certainty for unions and employers.
On the timing and duration of industrial action, the ballot mandate has been extended from four to six months, and to up to nine months where the union and the employer agree to that. That responds to concerns that four months was simply too short a time to enable both sides to resolve a dispute.
On the provision to provide two weeks’ notice of industrial action to an employer, the Bill now continues to allow for the current period of only seven days’ notice, where the employer and the trade union agree to that.
On picketing, there was great concern in this House, but less so in the House of Lords, about the Bill’s reference to “armbands”. That reference was taken from the original picketing code, which has been in force for a great deal of time. We do not want picket supervisors mistakenly believing that they must wear an armband. I hope that that will be welcome, particularly to my right hon. Friend the Member for Haltemprice and Howden (Mr Davis), who is not in his seat, but who eloquently raised concerns about the issue.
The House debated at length the principle that union members should make an active choice to contribute to a trade union’s political fund. The other place established a Select Committee on Trade Union Political Funds and Political Party Funding under the chairmanship of Lord Burns, and I would like to place on record my gratitude to him and all the members of the Committee for their deliberations on this question.
The Bill has been amended to reflect the Select Committee’s recommendations on opting in. Our manifesto commitment suggested that we wanted to extend the opt-in principle for trade union members, and the revised provision meets that commitment. In future, all new trade union members will have to make an active choice to contribute to the political fund through an opt-in.
Our amendment corrects some legally defective drafting in the amendment tabled by Lord Burns and agreed to by the Lords. In particular, instead of the certification officer being given responsibility for issuing a code of practice, our amendment places a statutory obligation directly on unions to provide an annual reminder to existing members of their rights to opt out. That complements the position for new members, who will be required to be offered the right to opt in.
We have also improved requirements on unions to report details of political expenditure in their annual returns. That reflects the debates that we had about the importance of that issue in assisting union members to make informed decisions about whether to contribute to a union’s political fund. At the heart of the provision is transparency and proportionality.
The Bill has been amended to require reporting on all expenditure from a union’s political fund, including to causes and campaigns, but it also fixes what became characterised as the onerous obligation for the union to report on “every bus fare”. Instead, unions will be required to report on the total expenditure going to each political party or organisation in each of the categories.
Finally, the other place rightly agreed to increase parliamentary oversight of regulations that could seek to lower the reporting threshold once it has been raised and therefore increase the regulatory burden on trade unions.
On check-off, we had robust debates in this House, and there were equally robust debates in the other place. Those debates related to union subscriptions being deducted automatically from wages in the public sector. The Bill we welcome back to the House allows check off to continue where the costs are met by the trade unions and on the basis that union members have the option of paying subscriptions by other means. My hon. Friend the Member for Stafford (Jeremy Lefroy), who is not in his place, made an eloquent argument for an amendment on this very issue, and I indicated on Report that we would look at it closely as the Bill went through the House of Lords. I therefore hope that he is satisfied with the decision by the Government to accept this amendment. I pay tribute to him for his work, both privately and publicly, in making the case for this important change.
Our manifesto committed us to reforming the role of the certification officer. The Bill removes the requirement for the certification officer to be able to act in some areas only where a complaint has been received from a member of a trade union. Instead, the certification officer will be able to look into issues that come to his attention from third parties, or in the course of his duties. However, the provisions have been amended to increase the independence of the certification officer by ensuring that he is not subject to ministerial direction. As I have said previously, the certification officer is under no obligation to act on complaints or representations from third parties.
Nevertheless, concerns were raised that spurious or vexatious complaints could tie up the certification officer’s resources and, indeed, place an unfair burden on trade unions. The Bill has therefore been amended to require that the certification officer must have reasonable grounds to suspect a breach before appointing an inspector to conduct an investigation. I am confident that this will protect unions from vexatious complaints and over-zealous regulation. However, I am happy to assure hon. Members that we will keep this under review to see how it works out in practice. In response to human rights concerns, the judicial oversight of the certification officer has been strengthened. The Bill has been amended to allow appeals to the employment appeals tribunal on the certification officer’s decisions on the grounds of fact as well as law.
I hope that hon. Members will welcome the amendments. I believe that they improve the Bill, and I hope the House will see fit to accept them.