Public Bodies Bill [Lords]
Debate between Lord Beamish and Nick Hurd(13 years, 2 months ago)
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Mr Hurd
This is a long list of amendments, but I hope we can deal with it quickly, as I sense that the mood of the House is in favour of moving on swiftly to what might well be more contentious issues. First however, it would be wrong of me not to join the Deputy Leader of the House in thanking the members of what was a very good Committee for their work and the spirit in which they undertook it.
This group of Government amendments relates to four aspects of the Bill, and to matters which I hope the House will agree are sensible and uncontentious. New clauses 3 and 4 and amendments 25 to 29 will provide powers to enable certain bodies carrying out public functions—specifically the Environment Agency, Natural England and Royal Botanic Gardens, Kew, as well as the Joint Nature Conservation Committee, the Marine Management Organisation and internal drainage boards—to share back-office functions with other bodies. The powers also apply to other bodies carrying out Welsh environmental functions.
New clauses 1 and 2 and amendments 12 and 16 to 20 will provide powers to enable the Environment Agency to delegate non-devolved functions to Welsh environmental bodies. They also incorporate provisions currently in clause 16 relating to delegation of Welsh environmental functions. Amendments 5 and 8 to 11 will extend the definition of “eligible persons” in clause 1(3) to include co-operative and community benefit societies and charitable incorporated organisations. Finally, amendments 6, 7, 13 to 15 and 21 to 24 are minor and technical drafting amendments.
Turning first—and briefly—to the issue of shared services, there is a move across government to reduce the cost of back-office functions such as human resources, IT and payment processing. Freeing up bodies to share back-office services is an important way of rationalising and delivering economies of scale. The Department for Environment, Food and Rural Affairs has some large non-departmental public bodies, such as the Environment Agency, which could serve as centres for delivering back-office services to other bodies in its network. However, these bodies do not currently have clear legal powers to be able to provide such services. That is because providing these back-office services to others is not always incidental or related to their main or primary purpose. The aim of these amendments is to provide a clear power so that, for example, the Environment Agency could provide back-office services such as accounting services to a body such as Royal Botanic Gardens, Kew, or operate contracts for vehicles for the DEFRA network. That would be beneficial in efficiency and economic terms, and there are likely to be many more such examples as sharing of services becomes more common.
Mr Kevan Jones (North Durham) (Lab)
I understand why these amendments have been tabled, but it is not a God-given right that the organisations in question will win these contracts. Surely some of the contracts will be sufficiently large to have to be put out under the Official Journal of the European Union—or OJEU—notices.
Mr Jones
The hon. Gentleman did not answer my question. The fact of the matter is that these measures will give the powers he describes, but they do not necessarily mean that the organisations in question will be able to circumvent European competition law in respect of contracts they put out to tender.
Mr Hurd
The hon. Gentleman is right to say that everything will be subject to appropriate procurement regulations, but the purpose of these amendments is to make it easier for such bodies to share services.
These amendments will therefore enable the Environment Agency, Natural England, the Joint Nature Conservation Committee, the Marine Management Organisation and internal drainage boards, which are bodies performing public functions, to provide back-office functions to other bodies carrying out public functions. The Bill already provides a similar power for Welsh environmental bodies, so this step will provide parity for these English bodies.
The amendments also carry forward arrangements in clause 16 whereby forestry commissioners may share services with Welsh environmental bodies carrying out functions in Wales. This power does not extend to the Forestry Commission making arrangements with non-Welsh bodies. As this is an enabling power, it will be used only where a body listed wished to use it, and where it would be financially beneficial to share back-office services. Also, it could not be exercised without the consent of the relevant Ministers. This power is in many respects similar to the provision in the Flood and Water Management Act 2010 enabling internal drainage boards to agree that one should provide back-office services to another. In debate, this was warmly welcomed by all parties. As in the case of these amendments, the express purpose was to make the delivery of administrative functions more effective and cheaper. I hope that right hon. and hon. Members will agree that, with public funding under severe constraints, it is sensible to ensure that bodies are able to share services, thus leading to increased efficiency and potential savings in the delivery of back-office functions.
Public Bodies Bill [Lords]
Debate between Lord Beamish and Nick Hurd(13 years, 6 months ago)
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The Parliamentary Secretary, Cabinet Office (Mr Nick Hurd)
This has been a short debate on a Bill that my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) rightly described as being very significant. It is significant in its potential impact on a large number of organisations, many of which perform significant functions and employ a large number of people. My fellow Hillingdon MP, the hon. Member for Hayes and Harlington (John McDonnell), was quite right to remind the House of the impact of the changes on human beings. Let me reassure him that I am extremely happy to meet him and the PCS group to clarify any confusion that might exist in relation to TUPE. I give that undertaking in good faith.
The debate was interesting in that it launched the Labour party’s campaign to “Back the Apple”—this from the party that introduced the cider tax! The irony has been lost on them. More seriously, it is clear that there are still profound concerns about some of the proposals on the table and that there is more need than ever for Ministers’ continued engagement regarding the Bill during its progress through Committee, should it get its Second Reading, and through the consultation processes that will have to flow in anticipation of the orders that will in turn flow from the Bill. Many arguments will be made, won and lost in that process. That is quite clear from the debate.
In the time available I will try to address some of the specific concerns that have been raised, but it is important to register that no one in the debate has, as far as I could tell, argued for the status quo. The case for reform appears to have been won, although, having listened to Opposition Front Benchers I am not entirely convinced. The truth is that when they were in power they were a lot better at moving quangos around than at abolishing them. Frankly, at the end of the Opposition spokesman’s remarks, I was no clearer about what on earth they would do if they were in power. There continues to be a complete fog about that. It is all very well talking about the case for reform, but sometimes one has to get up and do something.
The case for reform was made extremely powerfully by my hon. Friends the Members for South West Norfolk (Elizabeth Truss), for Esher and Walton (Mr Raab) and for Watford (Richard Harrington). The case was made particularly eloquently by my hon. Friend the Member for City of Chester (Stephen Mosley), who talked about the need to shine a light of accountability and transparency, with which I entirely agreed. My observation from my constituency is that people are deeply frustrated by how complex and expensive government has become. They would like it to be simplified and for it to be easier to find out who is in charge. They would like us to bear down with much greater discipline on waste and cost inflation, not least on salary inflation. That point was well made by my hon. Friend the hon. Member for South West Norfolk.
Given the cluttered and confused landscape that is quangoland, it would have been quite irresponsible for a new Government not to have embarked on a review of public bodies. We believe very strongly that by substantially reducing the number of bodies, returning functions to central Government where appropriate, and establishing a legislative framework for the outcomes of future reviews, the Bill takes a major step towards a simpler, more accountable approach to Government. The Bill will support the delivery of administrative savings from public bodies, as part of the Government’s commitment to delivering the effective, value-for-money systems that taxpayers rightly expect. Those principles should enjoy widespread support across the House, and I am very disappointed by the position of the Opposition in that respect.
There was consensus across the House that the Bill had been improved by the deliberations in the other place; I am happy to confirm that that is our view, too. There were questions, not least from my hon. Friends the Members for Harwich and North Essex, for City of Chester, and for Esher and Walton, about the triennial review, which is an important part of the new process that we are setting up. I assure them all that further detail will be forthcoming on how that review will work.
There was very little controversy, as far as I could tell, about the structure of the Bill, now that it has passed through the other place. Where there were concerns, they tended to focus explicitly on the ideas for particular bodies. I should like to focus on those that are clearly more controversial. I start with the office of chief coroner. We heard powerful speeches from the right hon. Members for Coventry North East (Mr Ainsworth), and for Wythenshawe and Sale East (Paul Goggins), and from the hon. Members for Hartlepool (Mr Wright), and for North Durham (Mr Jones). I pay particular tribute to the speeches of the right hon. Members for Coventry North East, and for Wythenshawe and Sale East, because they had the benefit of drawing on direct ministerial experience, some of which was clearly very powerful and difficult.
Mr Hurd
The hon. Gentleman was not bad, either. There are clearly arguments to be made, and won or lost. The Government clearly have to listen very hard, but the point that I would make to Members who have understandable concerns about the proposal is that there is no argument about the need for reform. As the hon. Member for Hartlepool said, we all recognise that a much better service is required for families. There is a problem around variation in quality; he made that point well. Nor is there any argument about the need for the functions of the chief coroner; the proposal is that they be transferred, not abolished. The question is: can we have reform without the person—or without the person right now, because the Government are retaining some flexibility on that point? The concern is about whether the reforms can be delivered without incurring what, on the face of it, are significant set-up and running costs—costs that were effectively ratified by the previous Government, because they commissioned the impact assessment.
Mr Jones
The Minister for the Cabinet Office and Paymaster General told us when he opened the debate that the reason behind the decision on the chief coroner’s office was money. Is the Parliamentary Secretary comfortable going against one of the main recommendations made by Dame Janet Smith in the Shipman report—that the coroner’s office be independent of Government?
Mr Hurd
Cost is a significant factor in the circumstances that we face, and we should not underestimate its importance as a consideration for the Ministry of Justice. It is committed to reform; the question is: how can those reforms be delivered in the most cost-effective way? It is clear, as I said, that the arguments will have to be made through the processes that lie before us.