Police Federation Reform (Normington Report)

Debate between David Davis and Mark Pritchard

Thursday 13th February 2014 Commons Chamber

[Mr Davis]

My hon. Friend—he is also an old friend—is entirely right. I will elaborate in some detail on some of those cases in a moment.

The federation chose a very good person to write the report. David Normington, a distinguished ex-permanent secretary at the Home Office, is a classic Whitehall mandarin. If anything, he is more tempted than most to be careful and sober in his language, and to pull his punches in his descriptions or at least to mitigate them. However, it is in the best interests of police officers across the country that we reveal very clearly, and perhaps in starker detail than Normington did, the extent to which the federation has failed.

Even in its sober language, the Normington report was, as my hon. Friend intimates, utterly damning of the federation’s performance. It made 36 recommendations, focusing on returning professionalism, democracy and efficiency to the Police Federation. To fully understand the extent of the problem, we should examine a number of areas where the need for reform is particularly apparent.

It is a matter of great concern that the Police Federation is as profligate as it appears to be. There are numerous examples of that. It spent £26 million building its Leatherhead headquarters. Frankly, that is extravagant enough to do justice to one of the London merchant banks at the height of the City excesses. The headquarters have a hotel, a bar, an indoor swimming pool and 11 grace and favour apartments. Even more outrageous is that, to pay for the extravagant cost, members’ subscription fees had to be raised by 23%. The federation’s officers, with their salaries still paid by their respective forces, receive salary enhancements of up to £25,000 from the federation. They are given those enhancements for doing what is, after all, an easier job than being on the cold streets of Britain on the night shift: sitting in their luxury headquarters, instead of performing public duties. I have been told that full-time federation officers have free use of the grace and favour flats and live on company credit cards. The purchase of large quantities of food and alcohol on those cards is apparently not uncommon.

To put a number on this, the accounts show a provision of £2 million in a tax dispute with Her Majesty’s Revenue and Customs. As I understand it, if that provision is to meet any tax liability, at a tax rate of 40%, that means that £5 million of claims have been made on perks, and perhaps unjustifiably claimed as a proper expense. That is astonishing.

In the newspapers only a couple of days ago a police widow—herself a serving police constable, if the report was right—said that federation officials treated memorial services, those most important and high-gravitas of occasions,

“like a drunken jolly, getting drunk on federation credit cards. Their drunken excess upsets families every year”,

so this is not an exception. I heard similar allegations about the behaviour of federation officials at conferences, at which bar bills of hundreds of pounds were again being charged to federation credit cards.

[Mark Pritchard (The Wrekin) (Con)]

Does my right hon. Friend agree that the money might be better spent restoring the damaged national police memorial, on the Mall, which remains broken and damaged, and that that would be a fitting tribute to the brave and dedicated police officers who form the majority?

[Mr Davis]

That is an extremely imaginative suggestion. I have my own ideas about what should happen with the money, but my hon. Friend’s idea should be taken into account.

In making these assertions, I have largely depended on whistleblowers—people who have bravely come forward, shocked at what they have seen—but police whistleblowers are particularly at risk and so are loth to enter the public domain, which makes it hard to check what they have said. As a result, I called on the federation to publish its expense accounts and live up to generally expected standards of transparency. I did this so that I could confirm or deny whether these claims were correct. As far as I am aware, the federation has not published these expense and credit card accounts, which leads me to believe that the whistleblowers are right.

It is up to the federation’s members to say whether they consider this profligacy acceptable, because mostly—but not entirely—it is their money, but they cannot make that judgment unless they know exactly what is being done in their name with their money. So that is another reason to have total transparency in these accounts. Yet another reason concerns my right hon. Friend the Member for Ashford (Damian Green), who as Minister for Policing, Criminal Justice and Victims represents the Home Office on the Front Bench today. We put taxpayers’ money into the federation—it is there properly to perform a function we want performed—so it might be the case that taxpayers’ money is being wasted at these conferences.

The federation appears to have a problem with transparency. It is telling that it failed to answer even Sir David Normington’s requests concerning the so-called No. 2 accounts used by the various branches. This money comes from selling insurance and then keeping a rake-off or commission, but so far the federation has not been willing or able to provide the information that Normington asked for. I understand that this probably accounts for £35 million of assets just sitting around the country. Again, this is money that belongs to serving police officers, not the organisation.

Contrary to the federation’s claims earlier this week, the full details of the 11 grace and favour apartments are not published in its accounts. I will not spend much time on this, but, to save colleagues time looking it up, I recommend they read note 3 of the federation’s accounts. It is the only reference to the apartments, but it does not contain what I would recognise as details telling us that these are grace and favour apartments used for the benefit of federation officers, with or without the approval of its members. It is clear that the federation does not know what transparency means, but it can only restore trust in itself if it imposes transparency on all its operations as a matter of urgency.

The federation’s use of funds raises another matter. It has formidable financial muscle. I guess its total assets come to about £70 million, the majority coming from subscription fees, but some from the No. 2 accounts. The last set of audited accounts showed the federation with a surplus, over and above all its costs and profligacy, of £3.5 million per annum.

In addition, we see in the costs that about £10 million was spent on administration, including the profligacies that I talked about. Most astonishingly, £8 million every single year was spent on legal actions. Furthermore, there are provisions against the loss of certain active legal cases—in one case, for up to £1 million. Other such provisions are for £350,000 or £450,000.

Let us understand something. The right hon. Member for Tottenham is here and will well understand that sometimes there are good reasons for the federation to act vigorously on behalf of its members. Big legal and individual interests will be in play in the Duggan case, and in such cases it is entirely proper that provisions should be made. I do not in any way criticise that element of legal defence, although I have to say that it should come about through an insurance function rather than through the discretion of a Fed rep. Never mind.

Such legal action is justifiable, but on many occasions aggressive litigation should not be carried out against those bringing complaints against the police. Chris Mullin, the distinguished predecessor of the Home Affairs Committee Chairman, has previously said that although most unions will not act on behalf of a member who is clearly in the wrong, the federation has a long track record of defending the indefensible and will gleefully launch claims against the victims of crime.

There are two recent examples of the federation’s appetite for litigation. PC Kelly Jones sued a burglary victim after she tripped on a kerb outside his garage and PC Richard Seymour sued another burglary victim after falling over a drain on his property. In both instances, it was the Police Federation that assisted in progressing the claims, despite the pleading of senior officers that such claims were detrimental to the image of the police force. This is based on press reportage, so I cannot be sure of it, but the federation has been accused of pressuring PC Kelly Jones into making her claim when she had no desire to do so. I hear from other whistleblowers that it is not uncommon for federation members to be actively encouraged to make claims that Members might find inappropriate. A particular concern—