Public Bodies Bill [HL]

Debate between Baroness Quin and Lord Cameron of Dillington

Wednesday 9th March 2011 Lords Chamber

[Lord Cameron of Dillington]

My Lords, I support this series of amendments. It is a pleasure to be speaking on this Bill in the early hours of the evening rather than in the early hours of the morning.

All three political parties have committed themselves to putting in place a groceries code adjudicator, and this seems to be a golden opportunity to do so. It would make the Government popular with farmers, consumers and at least three of the supermarkets, which have agreed the appointment of such a person or body if it was to apply across the board. Some of the free marketeers among you might question why an ombudsman figure is necessary in an open and free marketplace. You might say: surely in a free market where there is more than one buyer, the seller can go elsewhere. However, that equal balance of interest implied in the phrase “willing buyer, willing seller” simply does not exist where the buyers are so big and the sellers are so small.

More importantly, that balance of interest does not exist when the seller and supplier has to plan his cropping as much as 18 months in advance, within probably a five-year rotation, and organise the acreage, and buy the seed, the fertiliser and the spray, often with the seed variety and the treatment being specified in detail by the particular buyer. The farmer has to have his whole farm often audited and inspected by the particular buyer. Without this audited inspection he cannot sell his crop, or the buyer will not buy it. Furthermore, each buyer or supermarket has a different auditing system in place, so the farmer cannot easily change the buyer; certainly not without a long notice period. The farmer also may have to invest in specified capital and machinery. All this takes place 18 months to a year before the crop is sold and before a price is agreed.

Unfortunately there is ample room for the big boy to manipulate the sale to his advantage when the little man has nowhere else to go when the buyer’s terms or the buyer’s price turn against him. If the farming venture has involved borrowing the large sums of capital for irrigation, cold stores processing and the like, the smallholder farmer probably has nowhere else to go for the next year either.

The supermarkets may claim that an adjudicator is not necessary. In that case, there is no danger to them or to the consumer if one is put in place. In my view, it will be a great insurance policy for the farmer—and for the consumer—if one is put in place. Therefore, I urge all three parties to use this opportunity to fulfil their election promises. It is crucial for the future of UK agriculture and the fair balance that we need to achieve.

[Baroness Quin]

My Lords, I, too, welcome these amendments and am glad that they have been tabled. I welcome the comments that were made by the noble Earl, Lord Sandwich, in introducing the amendments and the helpful background that he gave us. I also welcome the comments made by my noble friend Lord Borrie and by the right reverend Prelate, who I know has taken a great interest in this issue. Like the noble Lord, Lord Cameron, I welcome the fact that on this occasion we are dealing with this important issue at a civilised hour rather than in the early hours of the morning.

I believe that the amendments are necessary to try to clear up the confusion surrounding where in government machinery the adjudicator, formerly the ombudsman, will reside. In answer to a question by the noble Earl, Lord Sandwich, on 7 February, the Minister said that he did not know where the adjudicator was going to be situated. That might have been a commendably honest reply, but now that we have had the chance to return to this subject today, I hope that we will be able to get more information about the Government’s exact intentions.

My noble friend Lord Sewel on that same day asked if the adjudicator could be part of this Bill. That is another reason why I welcome the amendments. Given all the controversial inclusions in this jumbo Bill, it would have been good to have something in it on which there is such clear, cross-party support.

When the Government announced in August last year that they were going to establish the adjudicator, the original expectation was of a draft Bill coming forward this past autumn. Given the strong cross-party support for this measure, the delay is regrettable. However, the Minister has said that the intention is to bring in a Bill this Session. In the other place, in Answer to a Written Parliamentary Question, mention was made of a draft Bill coming forward before Easter. Will there be a draft Bill first, and what will be the timing of the draft Bill and the full legislation to get the adjudicator’s role and work up and running?

The establishment of a supermarket ombudsman was favoured and initiated by the previous Government following a recommendation from the Competition Commission. From these Benches, I reiterate our strong commitment to that, as the Minister will be aware. One issue that has surfaced in recent debates in this House has been the scope of the adjudicator's remit. I notice that the adjudicator is called the groceries adjudicator, and I assume that his main function concerns food. But I was interested that in a debate that we had a week or so ago in this House on the ethical clothing industry, the Minister said that consideration could be given to widening the adjudicator’s remit. I welcome the fact that the Government are prepared to look at that, because supermarkets sell a great deal these days and have a strong position on their suppliers, whoever those suppliers happen to be. At the same time, while I welcome the Government’s openness on this matter, I would not want to see that as the cause of any further delay in the establishment of the adjudicator, because a very clear message has come from this debate that speed is extremely important and uppermost in people’s minds. Obviously, if there is a draft Bill, the scope and remit could be looked at—and perhaps the Minister could comment on that point.

The powers of the adjudicator, including naming and shaming and what further sanctions might be possible as a result, were mentioned by the right reverend Prelate. Again, any clarification from the Minister about that would be welcome.

This Bill must seem like a Christmas tree Bill to the many departments, with various items of business that they wanted to lumber on a jumbo Bill of this kind. However, while it might be a Christmas tree Bill for departments, it is a nightmare Bill for parliamentarians. I was very much taken with the phrase used by the noble and learned Lord, Lord Howe of Aberavon, who described it as a nuclear Bill. It abolishes and changes so many bodies, some big and some small, and rides roughshod over parliamentary procedures. However, this matter is one on which there is agreement between Parliament and Government and for which there is cross-party support, so I hope that the Minister will respond positively to the points that have been made.

Public Bodies Bill [HL]

Debate between Baroness Quin and Lord Cameron of Dillington

Monday 7th March 2011 Lords Chamber

[Lord Cameron of Dillington]

My Lords, I support these amendments. When I spoke at various stages of the Flood and Water Management Bill, it was mainly about the importance of the integrity of catchment management plans and of the local knowledge and understanding of water management in each and every catchment. A crucial part of that knowledge and understanding can be found in the IDBs. There are more than 130 IDBs, covering nearly 1.3 million hectares of England and Wales, and I happen to know that whenever they were looked at by MAFF—and, I dare say, by Defra, although I am unaware of any analysis or report in the past 10 years—they have been shown to be exceptional value for money, because the work they do would cost the state millions of pounds more if they were not there.

The IDBs are managed largely by volunteers with professional, historical and local knowledge and expertise that is unequalled on their patch. They are really good examples of how the big society should work and remain a major delivery partner in flood management. While they continue to protect agricultural, commercial and domestic property, they are also reinventing themselves to protect habitats, SSSIs, and environmental issues such as lichen, insects, wildflowers and barn owls, to name but a few.

I accept that their purposes and procedures, organisation and membership should always be reviewed in the light of modern practice but the value, knowledge and local expertise they represent should not be undermined or wasted—at least, not on our watch. I also accept that their membership may need broadening in the light of new financial arrangements. I understand that that is beginning to happen and that there are already broader interests in the environment and the like, which should be represented in their membership. However, I worry a little about the Environment Agency being responsible for their amalgamations and boundary changes in “non-contentious cases”. Does that mean that the IDBs involved have to agree with the proposed changes? I would worry if the Environment Agency had the power to take over any IDB responsibilities without their consent because that would be a waste of local expertise and, probably, of money. It would be unlikely to lead to any greater efficiency. Can the Minister address the definition of “non-contentious cases”?

Finally—I repeat this every time I stand up on this Bill—while this Government may have indicated their immediate intention is not necessarily to undermine or dramatically alter the functions of IDBs, I always worry about the long-term issue of leaving them in Schedules 3 and 5 in case some future Government threaten those highly important bodies. Once again, it seems that the noble Lord, Lord Taylor, is moving slightly closer to sunset clauses in the Bill. I heartily endorse that he moves even closer.

[Baroness Quin]

My Lords, a number of important questions have been raised in this short debate and I am grateful for that. Indeed, I thank the noble Lord, Lord Maclennan, for moving the amendment in the name of the noble Lord, Lord Greaves, who I very much supported in initially tabling these amendments. Like the noble Lord, Lord Cameron, I also pay tribute to the work of the internal drainage boards. The more that I have read about them, the more valuable they seem. Certainly I have received some letters about them from members of the public, seeming to value the work that they do in particular localities. I was amazed to read somewhere that these have a long history, going back to 1252. However, I understand that the more immediate legislative base of the work of the organisations actually dates from the Land Drainage Act 1930.

The noble Lord, Lord Cameron, said that he understood that no revision of the organisations had taken place in the past 10 years. I had understood that in 2004 there was some revision of the rules and procedures of the internal drainage boards. Perhaps the Minister could confirm that and tell us whether or not that revision of rules and procedures was successful or, indeed, whether there is some aspect of them that the Government feel that they want to make further changes to. Again, like the noble Lord, Lord Maclennan, I am not really clear what the Government want to do by including these bodies in the Bill.

I endorse the comments that have been made that the bodies seem to be very flexible. They operate in ways that suit the different areas, and in that sense they are something of a success story—it is a case of local management responding to local situations, which seems to be in line with the Government’s thinking on localism. I also note, though, that the Government’s own paper explaining their attitude to the Public Bodies Bill says that one of the changes they want to make is to make the bodies more responsive to local needs and more reflective of local interests. My understanding is that they already operate in such a manner and involve local communities in the way that the Government seem to want them to. Perhaps the Government can explain that aspect of their policy.

The drainage boards play an important role in reducing flood risk, a tremendously important issue at present. As the noble Lord, Lord Cameron, mentioned, they also have an important role regarding the natural environment, even on such issues as vegetation clearance works, which they seem to do in a sensitive way. Indeed, when crises occur, many of them provide a 24-hour contact number and extended office hours. They seem to be organisations that work flexibly and well in all circumstances. One of the letters that I received mentioned the fact that the Parliamentary Under-Secretary for Natural Environment and Fisheries in another place said:

“From a personal point of view I see IDBs as a good example of what the Prime Minister wants to see happen around the big society. All the IDB members give their time, their local know-how and their skill, free of charge all for the benefit of wider society”.

Again, these are strong endorsements, so we need an explanation before Report of why exactly these bodies have been put into the Bill.

I echo the concerns of the noble Lord, Lord Cameron, about the Environment Agency making decisions about these bodies in the circumstances that seem to be outlined. The agency itself is mentioned in the Bill and indeed in this group of amendments. Given the late hour and the complexity of the agency’s operations, I cannot do anything other than skirt over its role, but again it would be good if the Government divulged some of their thinking about the future role of the Environment Agency. Have they had discussions with the agency about its role or any suggested changes that the Government want to make?

Is it the Government’s aim to move forward with the consent and the agreement of the agency and its staff? That is also an important point. The agency has staff who are worried that somehow or other their status or their independent stance might be penalised if it is not felt to be totally in accordance with government priorities. They want reassurance about their role, their independence and their status in future.

I shall not say anything more at this stage but I hope that the Minister will be able to give us some information, if not entirely in the course of this debate then in writing so that we have good information on which we can base our attitude when these matters come up again on Report.

--- Later in debate ---

[Lord Cameron of Dillington]

My Lords, I wish to speak to the amendment on the Joint Nature Conservation Committee. I first declare an interest as a past member of the JNCC. I am sure that the role it performs could be done better. In my time there, there was a view—not perhaps mine, because I was not necessarily involved—that the staff seconded to the JNCC by the various constituent bodies were not always the best that could be found. I do not know whether that remains the case, but I do not dispute the possibility of potential reform within the JNCC.

However, the JNCC is an important body. Nature does not necessarily conform to man’s boundaries, whether administrative or national. Furthermore, there are bits in between the constituent parts of the United Kingdom, such as firths, seas and skies, which are in a sort of no-man’s land where the JNCC plays an important role. Nature conservation in the UK has to be managed, researched, protected and even enhanced on an international basis. This could not happen in the absence of the JNCC.

Just as the noble Lord, Lord Hunt, has done, I ask the Minister: what is the long-term intention here? I am sorry to be boring about this, but, once again, can we please have a sunset clause in case a future Government come up with a different answer to that question?

[Baroness Quin]

My Lords, I thank my noble friend Lord Hunt for moving or speaking to the amendments that highlight the situation of a number of important organisations listed in the Bill. It is useful to highlight these issues in Committee and then evaluate how to take the debate forward at Report.

Like the noble Lord, Lord Cameron, I refer first to the JNCC. It was good to hear the knowledge that he acquired as a former member of that organisation. My understanding is that the JNCC acts as an adviser to Her Majesty’s Government and the devolved Governments. I ask the Minister what discussion there has been with the devolved Governments about the structure of the committee, its work and what changes are envisaged. I stress, as did the noble Lord, Lord Cameron, that the committee does a lot of important work: it has an important European role; it carries out important work on biodiversity, which is a priority for the Government and for most Members of this House; and it disseminates a lot of information to ensure, for example, that details of EU policy decisions in this area are disseminated to conservation bodies throughout the country and to other key stakeholders. Therefore, it has a lot of important functions.

Am I right in understanding that the changes that the Government are proposing to the JNCC are rather minor? It would be useful to know that. According to the information provided by the Government, the aim is apparently to improve the cost-effectiveness of the committee and reduce the environmental costs of its operations. I do not know what assessment has been made of its environmental costs, so perhaps the Minister can give us further information about that.

My noble friend Lord Hunt also mentioned the Marine Management Organisation, and I shared his surprise that it should figure in the Bill. It is a new organisation and was set up very much with cross-party support, which was very welcome. In a recent debate that we had in Grand Committee on a statutory instrument that made a minor change to the work of the organisation, I know that the Minister gave a strong endorsement of the MMO’s work. Therefore, I reiterate the questions asked by my noble friend. Why is the organisation in the Bill, and what changes, if any, are envisaged to its operation?

In this group of amendments there is also reference to the Drinking Water Inspectorate. Again, this has an important role in providing information on research, regulations and water testing products and in providing independent reassurance that water supplies in England are safe and that drinking water is acceptable to consumers. That independent scrutiny of water company activities is very important and we want to be assured that it is not going to be in any way jeopardised. Having looked at the DWI’s website, I can see that it provides a lot of information to the public in its list of events and in its general climate of openness. Again, I hope that that will not be jeopardised in any future changes.

Finally, another vital organisation is Natural England, which also figures in these amendments. Some considerations similar to those that apply to the MMO are relevant here. Although not as new as the MMO, Natural England is a fairly recent organisation. It was set up in 2006 with, I understand, all-party support. It establishes and cares for England’s main wildlife and geological sites, nature reserves, SSSIs and so on. It is also important in designating areas of outstanding natural beauty and so forth. It is probably best known to Members of the House as the body responsible for administering the agri-environment schemes—environmental stewardship schemes and others—amounting to some £400 million a year. That is obviously a vital role which will need to continue in the future.

Can the Minister clarify in what areas the Government envisage Natural England charging fees for its activities? I understand that that has been mentioned. Perhaps the Government can also give us an indication of future funding changes relating to Natural England. Our view is that we do not want to undermine the effectiveness of what seems to us to be a very effective organisation. Again, therefore, as with the other bodies in this group of amendments, we would like some reassurances that will help us to decide how to examine these issues as we proceed towards Report.