Contracting Out (Functions relating to the Royal Parks) Order 2016

Lord Ashton of Hyde Excerpts

Monday 24th October 2016 Lords Chamber

Moved by

[Lord Ashton of Hyde]

That the draft Order laid before the House on 21 July be approved.

Relevant document: 8th Report from the Secondary Legislation Scrutiny Committee

[Lord Ashton of Hyde (Con)]

My Lords, the Government are proposing to use the powers in the Deregulation and Contracting Out Act 1994 to contract out the direct management of the Royal Parks estate. The functions are currently performed by an executive agency, a directorate of the Department for Culture, Media and Sport, which reports directly to the Secretary of State. Under the proposals we are debating today, the ownership of the estate will not change and the Secretary of State will still be accountable for its management.

The Royal Parks are at the heart of London and it is difficult to imagine the city without them. They are integral to the identity and life of the capital and the country, are enjoyed by 77 million people each year and enjoy a satisfaction rating of 98%. You may ask: if the parks are performing so well, why change things? The paradox is that to ensure that the parks remain as they are—outstanding free amenity spaces for all to enjoy—the means of managing has to change if we are to ensure that these outstanding public assets are protected for the long term. The current operational, governance and management arrangements need to be revised to enable the parks to operate more effectively and plan better for the future.

When the Royal Parks Agency was established in 1993, almost all its funding came from the Exchequer. The situation has changed: taxpayer funding is now around just 30%. The rest is mostly self-generated, and we need to change the model to ensure that the Royal Parks are able to plan effectively for the future. As currently constituted, the agency is not able to build up a reserve, carry over income from one year to the next, or fully benefit from the opportunities offered by commercial income. Under the proposed arrangements, the new organisation will be able to plan for the longer term rather than on a year-by-year basis, and operate more efficiently, for the benefit of the parks and their visitors. A single charitable body will make a more compelling case for support to corporate sponsors, private donors and charitable trusts, as well as attracting new volunteers.

The existing charity, the Royal Parks Foundation, already fundraises for the parks. Merging the charity with the new organisation will bring an alignment of objectives. The foundation’s board supports this move. The foundation board and the agency’s advisory board have provided sterling support and direction over the years. The new organisation will be a government company with charitable status, whose draft charitable objects focus on protecting the intrinsic qualities of the parks, including their environmental benefits, and offering high-quality services to visitors. The objects of the new charity will be closely aligned with the statutory responsibilities of the Secretary of State.

There will be a contract between the Secretary of State and the new charity, which will set out what it must do in return for the funding provided under the contract. The contract makes it clear that the new charity must maintain its green spaces, buildings and structures to high standards. The Government will continue to monitor the charity’s performance and review the contract every five years.

I also make it absolutely clear that the Royal Parks will remain free to visit. The Government will continue to provide funding. I also reassure the House that this proposal is not about the commercialisation of the Royal Parks; rather, it is to allow the parks to use their income and assets more effectively for the benefit of the estate and park visitors. The organisation will continue to be subject to planning and licensing control by local authorities. There will not be year-round rock concerts or any net loss of green space to new developments. It is appropriate, as we approach Christmas, to mention Winter Wonderland, which occupies a small parcel of Hyde Park and is immensely popular, attracting more than 3 million people each year, many from overseas, bringing income to London and money for reinvestment in the parks. This event takes place at a time when Hyde Park was traditionally rather empty of visitors. We already have Winter Wonderland; this proposal will not mean the addition of summer, autumn and spring wonderlands. Hyde Park will not be host to a 52-week-a-year funfair.

The Government expect the new charity to continue to identify ways in which assets can be used in positive, creative and, most importantly, appropriate ways. The agency has closely engaged with representative groups and the proposal has been discussed at regular meetings over the past 12 months, to which friends’ groups, concessionaires, partner organisations, key agencies, local residents’ groups, local businesses, MPs and local councillors have been invited. The proposal was discussed at a meeting of the friends’ forum last week, and there was broad support for the new status, given its aim of bringing long-term financial stability to the parks and ongoing investment into the estate. “Meet the park team” events—the equivalent of town hall meetings—have been held in each park, widely advertised locally and through social media, thereby speaking individually to park visitors not represented on formal stakeholder groups.

There have been extensive meeting and consultation events with staff from both the agency and the foundation. There are no current plans for redundancies and there are roles available for all permanent staff within the new organisation. The Greater London Authority is represented on the project board and local authority leaders are represented on the Royal Parks advisory board, which supports the change. Most recognise that the proposal is seeking to bring long-term financial stability to the Royal Parks estate. The Secretary of State is in the process of appointing trustees to the board of the new organisation. Other appointments will be made by the Mayor of London and will include local authority leaders. The Royal Household will have ex officio representation.

The only area of land that is managed by the agency but is not in the ownership of either the monarch or the Government is Grosvenor Square Garden, which is owned by the Grosvenor Estate. This order would allow the Government to contract out the direct management of that square to a third party, such as Grosvenor, but only on the condition that it remains a free public amenity for the benefit of all. The parks will continue to be policed by the Metropolitan Police Service. Any changes to the park regulations will continue to require the approval of Parliament.

To conclude, the proposal is evolution rather than revolution and enables the parks’ operating model to reflect the realities and opportunities of today. What the public see and experience in the parks will not change dramatically but will provide a sustainable financial future for them, and this measure helps deliver that. Subject to Parliament’s agreement, it is envisaged that the new arrangements will take effect on 1 March 2017. I beg to move.

Amendment to the Motion

Moved by

--- Later in debate ---

[Lord True (Con)]

My Lords, I declare an interest to your Lordships: first, I am a member of the existing Royal Parks board; and I am also leader of Richmond local authority, which has the privilege of containing some of the most beautiful spaces in this country in the form of the Royal Parks within my borough. Having declared the first interest—as being part of the outgoing organisation—I should make it clear that I am very mindful of the Addison rules. It is not for me to rise in this House and answer the questions that have been asked about the management and future management. Under the rules of this House, those are matters for the Minister, and I am sure that he will answer those points adequately. However, perhaps I may allow myself some general reflections.

I understand that the noble Lord opposite simply does not like the order. That is probably because it has the words “contracting out” in its title. However, some of the services that we have heard about relating to the management of buildings and grounds are already provided by organisations which are contracted out, so no great principle frontier is being crossed here; it is a question of the management.

The noble Lord, Lord Clement-Jones, was very supportive in the first 90 seconds of his speech but not quite so supportive in the remaining 10 minutes. I think that that comes from an understandable suspicion. People love these parks and do not want to see their ethos change. That has always been the guiding principle of anybody who has spent any time trying to support and sustain these parks. However, changing their status was not necessarily something that the Government were pushing for or particularly enthusiastic about in the earlier stages. As I conceive it, the idea is to try to give the parks a status that will enable them to thrive in providing the facilities that they have provided for so long.

In passing—again, without trespassing into saying inappropriate things in this House—I remind noble Lords that these are Royal Parks, and that in itself is something that the House might want to bear in mind.

On the question of the preservation of ethos, the point was made about not wanting too much in the way of entertainments. Again, without going into specifics—clearly, I recognise some of the things that have been said in relation to Winter Wonderland—the point is that local authorities will remain planning authorities. So for major functions, even if this new body—I can tell your Lordships that I have not applied to be a member of it—turned out to want to have knock-down, drag-out rock concerts every day, they simply would not get away with it because the local authority would be all over them. As far as functions in Hyde Park are concerned, I can tell the House that local authorities are all over the park, so I do not think that that fear would come to fruition. I and most of the others involved certainly would not support the change if we thought that that was the way forward.

It is true that the parks have moved to raise more money by means other than government funding. I think that that has been prudent, and it has been done in a way that broadly retains the ethos of the parks. I think that this is a case of damned if you do and damned if you don’t. If you sit there and say, “We’re not going to do anything”, and, in the light of what we all know is likely to be the ongoing financial situation, you expect the good old taxpayer constantly to go on providing, you are damned for not having used the talent you have been given to try to improve things. However, if you do try to use that talent, you are damned because you are being too commercial. Before and after I was involved, the parks have tried to find a balance, and I am sure that that is what will continue to happen.

I cannot stray too far into the issue of consultation as, again, I am conscious of the Addison rules. However, I can say from my own experience that when there was a proposal to close several gates in Richmond Park, people were all over it very fast. News travels if an adverse proposal is out there. So I think that the Minister needs to answer the questions that have been legitimately asked in the committee’s report and by noble Lords here. I have not become aware of a great storm of concern, but I am sure that the Minister will listen to some of the suggestions about how things might be done better.

On balance, I think that the parks will still be in a safe place under the proposals before us. I believe that the reserve powers of the Secretary of State will still be in place and that there will be careful scrutiny of the contracting arrangements. I do not think that Parliament can supervise KPIs or every detail and point of the contract. As I understand it, there are no plans to move away from the broad strategies that have been set out. Therefore, given the very careful thought that has been put into this measure and the need to reach out to more and more people around the world who love the parks, I think that the new arrangements, if they become charitable arrangements, may enable the parks to be secured.

While fully understanding the concerns that have been put forward by a number of noble Lords—concerns that I would share if I were in their position—I believe that a good way forward will be found. Brompton Cemetery is subject to a massive programme of improvement with an HLF grant, and those kinds of things will, I am sure, continue. I hope that the noble Lord opposite will withdraw his amendment and that, subject to the Minister satisfactorily answering the questions that have been put forward in the debate, the order can be approved.

[Lord Ashton of Hyde]

My Lords, I thank all noble Lords who contributed, especially the noble Lord, Lord Stevenson. He has raised some worthwhile points in his amendment, which certainly deserve an answer, as have other noble Lords. The best thing is for me to start by addressing the points in his amendment, and then I will come on to some of the other questions that have been asked.

The first thing to say is that the Government have no desire to change the overall experience of the parks. We think that this proposal will encourage the parks to take a longer-term view and, as the noble Lord, Lord Clement-Jones, pointed out, some of the more long-term abilities of not being a government department on an annual budget will allow them to raise more money, which I will come to in a minute. There is absolutely no desire to commercialise the parks more than they are now. I will come on to some aspects of financing in that respect later.