Enterprise and Regulatory Reform Bill

Baroness Hussein-Ece Excerpts

Wednesday 9th January 2013 Grand Committee

[Baroness Hussein-Ece]

My Lords, I, too, support Amendment 27 and associate myself with the noble Baroness, Lady Campbell of Surbiton, and other noble Lords who tabled it. I will try not to repeat anything that has been said. I, too, am dismayed and frankly puzzled that the Government are proposing to remove Section 3 and the general duty on the Equality and Human Rights Commission. This was discussed at some length in 2006. That was before my time in this House, but I followed the debate very closely. It was a relatively short time ago and all parties at the time agreed to these principles. I understand that the objectives were discussed extensively with business, NGOs and others in the field.

I will draw attention to one interesting quote. Eleanor Laing MP, speaking as shadow Minister for women and equalities, said:

“The important thing about clause 3 is that we all admire the aspirational nature of the general duty within it”.—[Official Report, Commons, 30/11/05; col. 36.]

If we fast forward to the present day, we see that having a wide-ranging, aspirational duty is seen as a hindrance to the Equality and Human Rights Commission in carrying out its work effectively. In briefings that I have attended it has been mentioned that the duty is too wide-ranging and that the commission is not able to focus sufficiently on a narrower remit. I apologise for not declaring an interest: I was a commissioner at the Equality and Human Rights Commission for three years until last month.

I would like to know what has changed. I still have not heard any compelling or rational argument about what has changed, and why it is proposed that the commission should no longer have a duty to promote work to eliminate prejudice and hate towards these protected groups. What has changed in our society since this relatively new Act, which is still bedding down, came into force? Are we a more equal society? Has something happened that some of us may have missed? Is racism declining? Is hate crime falling? As the noble Baroness, Lady Campbell of Surbiton, mentioned, just today we read in the newspapers that Stephen Lawrence’s brother has launched a legal battle against the Metropolitan Police, claiming to have been stopped by the force up to 25 times purely because of his skin colour. This is still a very common experience for many black and Asian people. This comes at a time when one in five young men—21%—in young offender institutions identifies himself as Muslim, compared with 13% in 2009-10. We have 60% unemployment among young black men. Race and disability hate crime is unfortunately still rising. What has changed such that we need to take away the general duty from the Equality and Human Rights Commission?

I would also like to know what is wrong with promoting good relations. Why is that now seen as a hindrance to the commission’s work? What is wrong with promoting good relations between different sections of society? No other statutory body has this remit. If it were to be taken away who would do this work? Who would show the leadership that is needed to tackle these issues? Who would understand them? Which non-government statutory body would be able to take this up? I strongly suggest that this is not the time to weaken the Equality and Human Rights Commission’s remit.

Is this the time to be sending out negative signals, which were mentioned earlier, and to be seen watering down and neutering this country’s main race, equality and human rights watchdog? I have heard it said in briefings that this will make no difference. If this is to make no difference, why are we doing it? Surely it is better to have a wider remit that is aspirational and that allows the commission the freedom to tackle some of these issues and carry out in-depth reviews, as has been done before. What is wrong in allowing this to happen? Surely the perception and the signal that not allowing it sends out is that this Government do not value race equality, or equality for disabled people and other protected groups.

On the issue of good relations, it has been repeatedly pointed out in briefings that since its inception the commission has not always functioned properly. There were problems and nobody can duck that, but it has made huge strides in the last few years. The organisation has reformed and slimmed down a lot, and in its work has been far more strategic and effective than in some other reviews that have been carried out. It is important to note that promoting good relations between members of different groups has allowed the commission to work in relation not just to race, but with groups such as Gypsies and Travellers who, sadly, do not have the protection that other groups have. It has been able to look at interfaith relations and hate crimes, as mentioned; causes of violence against women; intergenerational issues; and highly stigmatised groups, such as people with mental health problems or HIV/AIDS. These are serious issues that need to be tackled. The Equality and Human Rights Commission is best placed to understand interracial and inter-religious tensions and advise on the best way that they can be addressed. In proposing the removal of these clauses the Government are doing more damage than they realise.

[Baroness Whitaker]

My Lords, I rise to support what the noble Baroness has just said. One of the first things that I did when I joined the House of Lords was to speak in favour of admittedly a similar aspiration provision, but in my view appropriately. It might have been on an amendment from the noble Lord, Lord Lester, in legislation in 2000. The concept eventually found its way into the 2006 Act.

When Parliament agreed this provision it was on the basis of discussion with a wide range of organisations. It was widely welcomed. Why? We do not have a fair and unprejudiced society. It may be that everyone in this room is fair-minded, but fairness and good relations between groups do not exist when, for example, Gypsy, Traveller and Roma people are harassed about where they can live. The noble Baroness mentioned that young people now describe themselves as Muslim in larger numbers. Gypsy and Traveller children dare not describe themselves as Gypsies and Travellers, because of the things that have happened to them.

We have a society in which children with disabilities are bullied in school. Members of minority groups that make up our society are denied jobs because of stereotyped expectations. Old people are despised and neglected. The ordinary self-respect that people need, particularly children, is undermined. This is at the expense of social cohesion and an ordinarily decent society. I support this group. I think that it is necessary to give the EHRC a proper strategic approach to help bring about a fair society.

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[Baroness Hussein-Ece]

My Lords, I, too, have put my name to this amendment to move towards greater direct parliamentary accountability for the Equality and Human Rights Commission. As the noble Baroness, Lady Thornton, said, this could be advantageous as a tidying-up exercise. It needs to be done. Given all the criticisms that the commission has faced from individuals and others, some of which have been about its accountability to Parliament, I am slightly disappointed that the Government, in drafting these various changes, did not take the opportunity to look at making the commission better able to fulfil its mandate as Britain’s equality regulator and national human rights institution in accordance with the Paris principles, as the noble Lord, Lord Low, said.

Unfortunately, the commission has come under sustained attack. Some of that has been quite intense and some of it has been justifiable, but a lot of it has been rooted in the past and has not recognised the work that the commission has done, how much progress has been made and how much the commission has moved on from those early years when the three organisations came together.

In terms of greater accountability, I think that what is proposed would be desirable. It would ensure greater transparency and openness. It would assist the commission in its statutory responsibility to assess how the Government comply with their domestic and international equality and human rights obligations. Parliamentary accountability would provide the commission with more independence from the Government in order to fulfil this role rather more impartially. At the moment, we do not have the best of both worlds. The commission is partly accountable to the Joint Committee on Human Rights and it is partly accountable to the Minister through the Government Equalities Office. As the noble Baroness, Lady Thornton, said, that relationship has not always been positive; it cannot be deemed to have been a successful relationship.

There has been turbulence as a result of reorganisation. With each reshuffle—every couple of years, it seems—the equalities unit and, by virtue of that, the commission have been shunted about. I think that it is on its fourth or fifth government department. As was said, it was initially under the Department of Trade and Industry, then the Department for Communities and Local Government and then the Department for Work and Pensions; then it was standalone and now it is with the Department for Culture, Media and Sport. That does not provide the organisation with the stability and continuity that are needed. These constant changes have in some respects been detrimental to the commission’s work and some of the blame for that has to lie at the door of the last Government, as has been acknowledged.

There have also been problems with the sponsoring department. The commission has never had, certainly in the three years when I served there—others may bear me out on this—the independence to act as other non-departmental public bodies have been able to. For example, permanent senior appointments have always been at the behest of Ministers giving the go-ahead. I found myself in the situation when, after the Daily Mail, the Daily Telegraph and other newspapers criticised how much was being spent on consultants for temporary positions, we advertised at great expense for a permanent chief executive. That was then stopped because, for whatever reason, it was not deemed to be the right time. That meant that there was another delay. The acting chief executive continued and it was a couple of years before we had a permanent chief executive in place. The same has happened with other senior appointments when the commission was not given permission by the Government Equalities Office, through the Minister, to appoint a permanent director for various positions. It was quite unfairly pilloried in the media for wasting public money when it did not have the independence to make such appointments. If we are going to have an organisation which we want to be independent and robust, it has to have freedom in that regard.

In order to retain the commission’s “A” status as a UN accredited national human rights institution, it needs to be assured and shored up. On occasion, there have been letters threatening to remove the “A” status of the commission purely because of activities from government departments that have been outside its control. It is time to allow the commission to have the consistency, the stability and the independence that it needs but also to be robustly accountable to Parliament. Models for other regulators and national human rights institutions have already been mentioned. There are others, including Her Majesty’s Inspectorate of Constabulary, the Parliamentary and Health Service Ombudsman, and the Electoral Commission, which we could look at and which work perfectly well.

Accountability to government would allow the commission to work across government bodies. That has been a problem, particularly when the commission has wanted to look at issues which do not come under the remit of the sponsoring committee or department. There have been problems about working cross-department as well. This proposal would give it the freedom to do that and would satisfy the Cabinet Office test for independence and accountability against which all public bodies are reviewed every three years. It would also allow the commission to formalise relationships and fulfil its mandate as a regulator, which it has not been able to do. I strongly recommend that the Government look at this and I will be very interested in what the Minister says in reply as to whether the Government will look positively at this.

I know that in previous discussions—I am grateful that the Minister has made herself available for discussions and briefings—the Government have not felt that this is an issue and that it should not be touched. It is interesting that for other things legislation is needed, whereas, so far, something that would make this organisation far more accountable is not deemed to be needed, although I am hoping to hear a more positive reaction today. The appointment of the chief executive and of commissioners would be subject to parliamentary ratification. For those who have followed some of these things in the media recently, the last tranche of appointments of commissioners has not been exactly exemplary and probably would not have been tolerated at other organisations.

In terms of the commission being directly responsible, it could respond directly to parliamentary questions rather than the Government responding on the commission’s behalf, which is the problem at the moment. The commission’s budget also could be set by Parliament, rather than the arcane situation that exists. I seem to remember that as late as the end of February/the beginning of March of this year, the commission still did not know its budget for the coming financial year, which would be unheard of at any other organisation. I strongly endorse this amendment and believe that it could strengthen the independent requirement in Schedule 42 to the Equality Act 2006.

[Lord Lester of Herne Hill]

My Lords, I am sympathetic to the object of the amendment. I just want to supplement that great summary of the history given by the noble Lord, Lord Low, by adding one or two aspects.

When the previous Government introduced the 2006 Act, I was was pressing for something on exactly these lines and I was concerned about the Paris principles. Thanks to the creativity of the noble Baroness, Lady Ashton, in particular, we were able to write into that Act some guarantees of the independence of the commission which are still there and I am delighted to see will remain. We removed all the bossy, ministerial interference provisions that were originally in the 2006 Act and that would have given powers to Ministers to intervene all over the place in the commission’s work. All those were wisely removed by the previous Government. We then introduced an express provision stating that Ministers were not allowed unnecessarily to interfere with the commission—that is still in the 2006 Act. We also introduced an obligation on the Minister to make sure that enough funds were available to ensure that the commission could carry out its work effectively in accordance with its statutory duties. We also introduced a merit requirement for appointments. All those are still there.

One of the great problems, however—it has been referred to by my noble friend just now—is that the commission when it was set up became the orphan of Whitehall; that is, no major government department was willing to take responsibility for or ownership of it to give it the backing that it really needed. I can say as someone who was the unpaid independent adviser to the previous Government’s Minister of Justice and Lord Chancellor, Jack Straw, that I was unsuccessful in persuading the previous Government that the Ministry of Justice should take charge of this area, because, frankly, the civil servants at the time did not want to know. And so, a strange floating kidney was set up instead. It was not a proper department and it did not have any of the power and influence of a major government department. That led to all kinds of managerial and other failings from the beginning through lack of proper back-up within the Administration. This was not just the fault of Ministers; it was more a fault of senior civil servants, including a Permanent Secretary whom I went to, who said that they would rather not want to know, thank you very much, because it was too difficult or too hot a potato.

That is part of the background. As the noble Lord, Lord Low, has indicated, the Joint Committee on Human Rights on which I serve has several times advocated that there be proper parliamentary accountability, not only because of the Paris principles but because it is healthy in a parliamentary democracy with a body of this kind for there to be a proper relationship.

One thing to have changed since we on the JCHR made those reports is the appointment of the new chair, whom I am delighted to see in her place, the noble Baroness, Lady O’Neill. Her appointment was made only after the Joint Committee on Human Rights interviewed her and came to the conclusion that she would be admirably well qualified for the post. Another change is that the Joint Committee will now have the main responsibility for the work of the commission; it will not be split, I think, with the House of Commons committee. We are a Joint Committee of both Houses comprising six Peers and six MPs; we cannot be controlled by Government because one of us is a Cross-Bencher—we are the only parliamentary committee of which that is true—and we are not tribal or party-political in the way in which we conduct ourselves. We have real expertise going back for more than a decade.

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One question is whether that could be done without the need for some legislative requirement, but simply by a protocol being developed by agreement between the Joint Committee and the Government that the Joint Committee will effectively do that which was done in relation to the new chair of the commission. Similarly, there is no reason why the Joint Committee on Human Rights cannot have responsibility for many of the things to which my noble friend referred in her speech in support of the amendment. Where I do not agree with her is on the idea that any parliamentary committee should be setting the budget and be involved in what might be called micro-managerial decisions on how the commission should spend money. It is still correct in a parliamentary democracy that public expenditure has to be approved by a responsible Minister and accounting officer responsible to Parliament for ensuring stewardship.

[Baroness Hussein-Ece]

I want to come back on one point, if I may. In 2003 the Joint Human Rights Committee had three reports, and one of the clauses said that,

“as a guarantee of independence … Parliament should be directly involved in setting the budget of the commission”.

Can the noble Lord clarify that he said he could not see the point in that? He seems to be contradicting what the report said.

[Lord Lester of Herne Hill]

I was talking about an idea that I thought was being suggested—not that there be some kind of consultation but that Parliament itself, or a parliamentary committee, should agree and set the budget, rather than that being done by the Treasury and the responsible government department. Of course, it is possible to have consultation by a parliamentary committee on the size of a budget and how it is to be spent, but under our system of parliamentary government, it seems to me that the ultimate responsibility for deciding on the budget and ensuring proper accountability is through the accounting officer—normally a Permanent Secretary in charge of the department, who is then accountable to Her Majesty’s Treasury and to Parliament. We tried all of that when we looked at the Judicial Appointments Commission; we tried to ring-fence the budget of the Judicial Appointments Commission and of the judiciary as a whole, but failed to do so for similar reasons.

I am sympathetic to the idea of parliamentary involvement and accountability. All that I am suggesting is that the way forward is to encourage the Joint Committee on Human Rights, if it is willing to do so, with the consent of the Government, if they are willing to do so, to develop new protocols that will allow this kind of accountability to occur. I am sympathetic with the object, but I do not think that the amendment is the best way forward. Similarly with regard to annual reports, there is no reason why there should not be a report that is then scrutinised and discussed with the commission by the Joint Committee on Human Rights. It seems to me to be better to have an existing piece of expert machinery than to create a new Joint Committee of both Houses without purpose.

I say all this with no authority; I do not speak for the Joint Committee on Human Rights. It has not considered that; nor do I have any idea of whether the Government is be sympathetic. I am a member of the committee suggesting that as one way forward.

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[Baroness Hussein-Ece]

My Lords, I think that it is true to say that there have been unintended consequences in the way that equality impact assessments have been applied in some instances. The views just expressed by my noble friend are widely shared in some quarters. However, I associate myself with this amendment in an effort to reform what we understand by equality impact assessments and to bring to them a sense of balance. I also want to highlight their importance and not lose sight of why we had to have them in the first instance.

Of course, there has been change. The Prime Minister mentioned that these assessments would be done away with, and there has been discussion of changing the terminology used from “equality impact assessments” to “analysis of the effects”. We need to be clear about how terminology is used in decision-making. We should focus less on the production of a document and more on impact. That needs to be clarified. More clarification is needed on intentions because it seems that government policy is veering towards getting rid of these assessments. Are we to understand that there is no longer a wish to know in advance about the impact of policies on different groups of people? If so, that needs to be said clearly.

There are concerns that too much time is taken in conducting spurious or inaccurate equality analyses, and perhaps many people conducting analyses have not always understood them. Proposed new subsection (6A)(e) refers to,

“training staff in connection with the duties imposed by this section”.

There seems to be a bit of a gap between what is expected and what should be produced at the end of the process—what we are looking for as an end result. How can we be sure that government policies do not have the effect of treating some groups of people less favourably than others if there is no evidence of consideration of the likely impact on these different groups?

A recent review of government policy suggested that there was little evidence that the impact on people had been considered when plans and proposals had been circulated. Surely we do not wish to see a return to the situation that prevailed between the late 1970s and the 1990s, when the duty under Section 71 of the Race Relations Act was applied only to local government and not to other public services such as the police. It is important to recall for the record that it was not until the Macpherson report into the murder of Stephen Lawrence that the public sector equality duty was extended to all public authorities and private organisations contracted to deliver services. Asserting that equality is being considered is not the same as providing evidence. The way the evidence is produced may be contentious. I have no problem with it being more streamlined and sensible.

My final comment is to highlight something positive that took place in the past two years. The Equality and Human Rights Commission, using its unique powers under Section 11, conducted an impact assessment on Her Majesty’s Treasury, among other government departments, to assess the extent to which the Treasury had met its legal obligations to consider the impact of the 2010 spending review decisions on protected groups. This was a really positive piece of work and I commend it the Committee—it is on the website and your Lordships can read it in the report. The work was embraced by the Government and government departments that have not done this before. It was a first instance; it had not happened under the previous Government and was the first report on this scale. It gave a set of recommendations for how to target spending to ensure more effective use of public money and greater fairness across government overall. It was a very significant work, so we have some good practice on how it can happen. I urge that we look at ways of reforming but retaining this very important legislation.