Parliamentary Buildings (Restoration and Renewal) Bill

Debate between Baroness Barran and Lord Stunell

Committee: 1st sitting (Hansard - continued): House of Lords
Monday 22nd July 2019 Lords Chamber

[Baroness Barran]

I am grateful to the noble Lord, Lord Stunell, for tabling his amendment, which, as he explained, would allow a government Minister to become a member of the sponsor body. I also thank the noble Baroness the Leader of the Opposition for reinforcing the point that this is a parliamentary project and that we need to make that clear at all times.

I understand from the noble Lord’s speech at Second Reading that his key concern was about the potential lack of transparency around the Treasury’s advice on the estimates of expenditure, which in turn could lead to delays, waste and extra cost, as well as the need for Treasury buy-in to the project. The noble Lord has again articulated these points clearly tonight. He also stole the next part of my notes when he explained exactly how the process worked. However, I should add—I did not catch the noble Lord saying this, so I hope he will forgive me if I missed it—that the estimate is laid after it has been reviewed by the estimates commission and there has been consultation with the Treasury. The estimate is then laid before the other place for approval, including any comments made by the Treasury. I am advised that this is more transparent than the current estimates process for the funding of Parliament. To be clear to the House, this provides the opportunity for the Treasury to comment on the annual estimate, but it does not provide it with a veto. Furthermore, in terms of approval for the parliamentary building works, the Treasury is not given a role in respect of the outline business case. That is exclusively a matter for Parliament.

At Second Reading and again tonight, the noble Lord argued that a Treasury Minister could sit on the sponsor body, as recommended by the Joint Committee that examined the Bill. The role of the Treasury in this project is as an external party looking inwards, with the ability to review and advise upon the sponsor body’s annual estimates. The Treasury’s comments on the annual estimate will be laid before Parliament with the estimate. Therefore, the advice of the Treasury will be available when the House of Commons considers the estimate, and that provides for a clear role for the Treasury. The sponsor body and Parliament will therefore have transparent access to the Treasury’s views on the value for money and affordability of the project, which I hope addresses the noble Lord’s concerns around the transparency and the timeliness of that advice. Our view remains that, if a Treasury Minister was a member of the sponsor body, it would compromise that and could restrict the Treasury from being able objectively to assess the sponsor body’s annual estimates. In the light of these arguments, I hope that the noble Lord will consider withdrawing his amendment.

[Lord Stunell]

I thank the Minister very much for her reply and the noble Baroness, Lady Smith, for her words of comment on the amendment. She asked whether I trust the Treasury. If I replied yes to that, I would be the only person in this House who did. The Treasury rightly considers itself the guardian of the nation’s purse. In my experience, from both inside the system and looking at it from the outside, it is very rare for the Treasury to say, “Why don’t you take more money? Why don’t you speed up this project?”. I think we can all anticipate that the role of the Treasury in this is to be the gatekeeper of money. It sees that role as reducing the flow of money, particularly if Members of both Houses arguing the case for hospitals, schools, aircraft carriers and goodness knows what else, at the expense of this self-serving project for Members. You can see the national newspapers and media joining in that school.

The idea of someone turning the tap off is real. The only question is whether we have a system where we turn it off at the end of a long process, thus wasting a lot of money and time, or whether we turn it off at the beginning, so that we know we have to take 20 years, not 10 years, because we can spend only £300 million a year, not £500 million a year—as the case may be—in which case, we can design the project on a completely different timescale and get efficiencies that way.

The Minister said that the Treasury’s advice will be published. Yes, it certainly would be, but the question is whether the estimates would have been trimmed as a result of the advice given and the dialogue that goes on. The estimates commission “must have regard” to any advice that it receives from the Treasury. If the Treasury says, “You can spend only £400 million”, and the estimates commission is being invited by the sponsor body to spend £600 million, it is not statutorily in its power to put the £600 million figure on the table in front of Parliament, because it “must have regard” to any advice. The Minister may say that that is incorrect, in which case I should like to have that on record.

I will not pursue this tonight, not just because of the time but because I have no one here who agrees with me. I just say that I think that this is a problem that will come back to haunt us, and I may yet say something at the next stage of the Bill. With that, I beg leave to withdraw the amendment.