High Speed Rail (West Midlands–Crewe) Bill

Debate between Lord Berkeley and Baroness Kramer

Tuesday 8th December 2020 Lords Chamber

[Lord Berkeley (Lab) [V]]

My Lords, I am grateful for the opportunity to debate non-disclosure agreements again. I have tabled the same amendment that we debated in Committee to get a little more information from the Minister concerning some of her answers. I am grateful to her for the meetings that we have had and the answers that she has given. We have to remember that an NDA goes much wider than a particular project —HS2 or any railway.

It is worth pointing out that this amendment, proposing an independent assessor, is something which would be voluntary. She said that NDAs can be entered into voluntarily, but I understand from the way that HS2 has developed the process that if you want information, you have to sign an NDA. It is voluntary if you want the information. In Committee, the noble Baroness, Lady Randerson, pointed out that some local authorities like signing NDAs with other organisations, so that a small group or maybe even one person on the council can keep all the information to themselves and not inform their colleagues.

Another part of the Minister’s answer in Committee was that:

“If an independent assessor were appointed to scrutinise such agreements”—


NDAs—

“they would be breaching the privacy of those agreements.”

That is a circular argument. I am sure there would be a way of resolving it if both parties wanted to. My final comment is to question what she stated later:

“I am confident that the use of NDAs by HS2 is in the public interest.”—[Official Report, 12/11/20; col. GC 528.]


I agree that some certainly are in the public interest. We would not want to have every detail of every contractor whose contracts are being negotiated, or for them to be unable to have an NDA. Clearly that is confidential, but there are over 300 NDAs. HS2 Ltd is also quoted as signing an NDA with its own training body. If that cannot be kept confidential to the extent wanted, it is a bit sad.

I have taken a lot of useful evidence from a report by the former Construction Minister Nick Raynsford, who reviewed the process of NDAs. He concluded that they “undermine public trust” in major infrastructure projects and he criticised the

“widespread use of confidentiality agreements by the HS2 company”

and stated that they had a

“corrosive sense on the part of the public, that planning is no longer protecting their interests.”

This issue cannot be resolved today, and I have no intention of dividing the House. Personally, I think that having an independent assessor to review all the HS2 NDAs, and, with the presumption of transparency and public accountability, to check whether they are in the public interest, would be a useful thing. I suspect that it would cost very little and would delay things very little once it got over the initial stages. I end by asking the Minister: what do all these companies have to hide? I emphasise that I do not suggest that there should be no NDAs but that there should be some means of limiting them to those which are for good commercial reasons rather than possibly to avoid embarrassment. I beg to move.

[Baroness Kramer (LD) [V]]

My Lords, I very much support the noble Lord, Lord Berkeley, in coming back on Report to the issue of confidentiality agreements, more commonly referred to as NDAs. Thanks to more recent news articles, we now know that HS2 has required 339 bodies to sign confidentiality agreements, and that is required because otherwise they get no access to the information necessary to discuss HS2-related issues. I therefore hope that HS2 is now beginning to take on board the concerns of the public and many Members of Parliament, local authorities and civic groups, that confidentiality agreements are hindering the transparency which should underpin such an important project. I say that as a strong supporter of the project; I always have considered HS2 vital to economic growth across the UK.

Of course there are issues of commercial sensitivity which need to be covered by confidentiality agreements, and this amendment both accepts that and provides for it. However, the presumption should always be for transparency, with confidentiality on an exception basis. I have some hope that the Minister, Andrew Stephenson, recognises the problem. Gagging of any kind cuts Ministers off from the information they need. The late and slow leak of information, especially related to cost, land purchases and compensation, has harmed HS2 and generated suspicion. We need to be very open in explaining that, in any project on this scale, projecting costs and timetables is very difficult and will always change. I personally believe that the biggest problem we have with HS2 is understating its benefits, since it will serve us for generations, and most of the longer-term benefits and regeneration benefits away from the stations are not included in the official analysis.

I thank the noble Baroness, Lady Vere, for organising a Zoom meeting between interested Lords, herself, Andrew Stephenson, who is the relevant Minister, DfT staff and HS2 to discuss the issue. I and others have received a follow-up letter. The letter does not exactly allay concerns, but it makes it clear that the risk assurance committee of HS2 will now review the matter and will, I hope, recognise the damage to trust and reputation that has been and is being caused. I have to say that HS2 is not alone. Organisations public and private across the globe are having to revise their notions of appropriate confidentiality. No entity any more can rest in the comfort zone of just releasing good news.

As we made clear in Committee, this amendment does not deal with the settlement agreements usually used to manage whistleblowers. The idea I have heard that settlement agreements do not act as gags is nonsense. Why does the Minister think that Doug Thornton—the best known whistleblower on HS2, who was HS2’s director of land and property until he was dismissed when he raised concerns internally—did not sign one? He could have saved himself years of agony if he had.

HS2 has provided me and others with copies of its whistleblowing policy. On paper it looks fine, but pretty much every financial institution, private sector company, hospital, care home, prison, social services department or bank that has been caught in appalling behaviour has an exemplary tick-box whistleblowing system. The system just does not work in practice. That is why the whole issue of whistleblowing needs an overhaul. Following the Zoom call I talked about earlier, I realised that some parties do not understand why the noble Lord, Lord Berkeley, and I have spoken directly to only a few whistleblowers. It is because we are not prescribed persons. I suspect that the noble Baroness, Lady Vere, is not a prescribed person—the Minister, Andrew Stephenson MP, is a prescribed person, but it is a very narrow group. Any whistleblower speaking to me or to the noble Lord, Lord Berkeley, is not protected by PIDA, the Public Interest Disclosure Act. I stop any whistleblower from speaking to me who is not going public anyway, and I am sure that the noble Lord, Lord Berkley, does the same. It is much too risky for them.

I hope very much that when the audit and risk assurance committee of HS2 looks at confidentiality agreements, it will also do a deep dive into its internal “Speak Out” whistleblowing system, including talking to professional bodies such as the Institution of Civil Engineers and the Royal Institution of Chartered Surveyors from which members often seek advice when they run into an issue like this. I also hope that it talks to civil society groups such as WhistleblowersUK and Protect. Those of us who are concerned with these issues are now relying on the Government to make sure that the flaws in the use of both confidentiality and settlement agreements at HS2 are sorted. As the noble Lord, Lord Berkeley, said, the issue goes far wider than HS2 and far wider than rail, but we will be watching and listening because issues that are concealed never actually go away and, when they emerge, they come back to bite a project.