(6 months, 2 weeks ago)
Lords ChamberI will cover that later in my response. There is a point about territoriality, which we will come on to address.
Additionally, the drafting of the guidance referenced in the speech from the noble Baroness, Lady Drake, does not change our view of the scope of this exception. I agree with my noble friend Lady Noakes’ assessment that the amendment could cause some confusion. If we were to accept it, it might raise questions about what considerations relevant to “financial value” and “practical utility” actually capture if they do not capture risk assessment.
I know that the noble Baroness will be disappointed that the Government are unable to accept her amendment, but we did not brush it aside and looked carefully at what she said at our helpful meeting. However, I hope that she is reassured by the Government’s position that the Bill’s current drafting adequately addresses her concerns, with that clarification.
Before I turn to other amendments, I will address the noble Baroness’s point about the impact of judicial review on LGPSs. I will provide a fuller response to the detail in the later group that was referred to in the debate. The Government believe that it is right that companies that have been the target of boycotts and divestment campaigns can challenge these decisions through the courts. There are safeguards in place to prevent undue or nuisance claims. None the less, the number of examples of administering authorities participating in BDS campaigns is relatively small; therefore, we do not anticipate a large burden on the courts.
Amendment 45, tabled by the noble Baroness, Lady Blackstone, would remove management decisions from the Bill’s definition of “fund investment decision”, with a view to ensuring that the ban does not apply to the stewardship activities of administering authorities of LGPSs. I confirm, as we agreed at our meeting, that stewardship activity would be an example of a management decision.
It is right that the ban applies to stewardship. Otherwise, administering authorities could, as part of the stewardship of their investments, ask companies in which they have invested to engage in boycotts and divestment campaigns. If this was allowed, campaigners would be emboldened to lobby local government pension funds to ask companies in which they invest to boycott and divest. These campaigns distract local administering authorities from their core duties and could contribute to community tensions. We believe that allowing this kind of activity would undermine the ban.
The Bill contains an exception to the ban for considerations that a decision-maker considers relevant to the financial value or practical utility of an investment. Therefore, it would not prevent public authorities asking companies in which they invest to consider matters that they consider may affect the long-term value of their investments.
I understand that the noble Baronesses, Lady Blackstone and Lady Janke, are concerned that this position conflicts with the Government’s wider policy on stewardship. We do not consider this to be the case. This is an extremely narrow Bill that will place restrictions only on the ability of the LGPSs’ administering authorities to make territorial considerations in their investment decisions that are influenced by moral or political disapproval of foreign state conduct. LGPSs’ administering authorities will still be able, through effective stewardship, to exert a positive influence on investee companies to promote strong governance, manage risk, increase accountability and drive improvements in the management of environmental, social and corporate governance issues.
Administering authorities are ultimately responsible for setting the investment strategy of their funds, having taken proper advice. This includes setting their asset allocations to achieve a diversified portfolio of investments which overall is suitable to meet liabilities, as well as setting their approach to responsible investment, in line with statutory guidance. The Bill will support administering authorities to remain focused on their core duties, protecting the long-term financial interests of beneficiaries.
Amendment 46A, tabled by the noble Lord, Lord Collins, would provide that a pension fund in scope of the ban can make territorial considerations influenced by moral or political disapproval of foreign state conduct when making decisions in line with certain investment guidelines published by the UN. The Bill will apply only to campaigns that target countries and territories specifically, and therefore will not prevent the adoption of ESG requirements that are not specific to a country, such as modern slavery requirements. For example, to address the point made by the noble Baroness, Lady Janke, the Bill will in no way prevent the LGPS administering authorities divesting from fossil fuels, as long as this policy is applied to all countries and territories consistently. Similarly, the Bill will not prevent the administering authorities divesting from companies implicated in human rights abuses, provided the policy is applied to all countries, rather than identifying particular countries or territories.
The Bill will not prevent LGPS administering authorities making a decision in line with guidelines published by the UN, as long as this does not entail the public authority having regard to a territorial consideration in a way that indicates moral or political disapproval of foreign state conduct. For example, the Bill will not prevent public authorities having a policy to comply with all UN sanctions or UN Security Council resolutions, as that is not a territorial consideration. However, the policy must be genuinely non-country specific—
Can the Minister specifically address the contribution from the noble Lord, Lord Hannay, in relation to territorial extent? I have in mind, because it was raised in other groups and discussions, companies that attempted to have factories or investments in the Occupied Territories and might then have withdrawn from those investments. I want her to focus on that. If a company decides that it will open a plant in the Occupied Territories and will not have the benefit of legal protection under international law, and it would be contrary to the advice the Government have given, and if a local government pension scheme then said, “Well, that company is putting our investment at risk and therefore we will disinvest”, would that be legal under the Bill?
I can confirm that LGPSs will be allowed to divest from, say, the settlements or Israel if the sole reason is that the investment is financially risky. It is if it is caught by the flavour of the Bill that we run into a problem—
It is important for clarification because the Government’s own advice says “It’s risky because it’s not legal and therefore won’t have that international law protection”. So it is very good if the Minister is being absolutely clear in relation to the Occupied Territories.
Perhaps I could just finish on the other points. It makes perfect sense to ensure that, when having regard to ESG requirements, these are applied consistently by LGPS administering authorities and do not single out particular countries or territories—because it is the latter that will breach the ban, as I think we all now understand.
The Bill allows for a number of exceptions, including considerations relating to labour market misconduct, modern slavery and human trafficking. Therefore, the Bill will in no way prevent the administering authorities adhering to modern slavery guidance.
Finally, I turn to the proposition from the noble Lord, Lord Davies of Brixton, that Clause 12 should not stand part of the Bill—
(6 months, 3 weeks ago)
Lords ChamberI am clear that the Occupied Territories are separate. I think that that three-quarters answers the noble Lord’s question but let me reflect further. I certainly would not want to mislead him on such an important point.
Can I also ask a question? The Minister mentioned that the Delegated Powers Committee did not comment on the Bill in a negative way. On the point about the amendment on free speech, I know that we have other clauses to deal with it, but the Constitution Committee was quite clear that Clauses 4(1)(a) and 4(1)(b) unduly limit freedom of speech by preventing public bodies from stating that they would—or even might—make a procurement or investment decision. That committee asked this House to consider whether Clause 4 should be removed from the Bill, so the Minister’s assertion is not quite true. Regarding the amendment tabled by the noble Lord, Lord Warner—the Constitution Committee shares some of his views.
Clearly, I do not think that we will be able to agree on this this evening. I replied to the excellent report by the noble Baroness, Lady Drake, and the Constitution Committee, and I will refresh my memory on that, if the noble Lord will allow.
In the meantime, in response to the noble Lord, Lord Purvis, who asked about the Government’s position on Gaza—it is that Israel remains the occupying power in Gaza, as advised by the FCDO.
Yes, but does the Minister know why it says that? It is because an occupying power has duties—particularly under international humanitarian law—which is why the Foreign Secretary is monitoring this and has repeatedly said to the House that he will continue to monitor it. Israel has duties as an occupying power.
Indeed, in situations of occupation, international humanitarian law expressly requires the occupier—I think this is the point that the noble Lord is making—to the fullest extent of the means available to it, to ensure food and medical supplies for the population of the occupation territory. We expect Israel to fulfil its obligations, and for all parties to adhere to humanitarian law. I am glad to be able to repeat that.
Nothing in the Bill changes the Government’s support for a two-state solution. We believe that open and honest discussions, rather than imposing sanctions or supporting anti-Israeli boycotts, best support our efforts to help progress towards a negotiated solution. This is the position shared by the whole Government. But I continue to believe that it is important to retain for Parliament the ability to scrutinise a decision that would be so detrimental to community cohesion, through primary legislation and subject to full parliamentary scrutiny. I therefore respectfully ask that the noble Lord withdraw his amendment.
(6 months, 3 weeks ago)
Lords ChamberMy Lords, I say to the noble Baroness, Lady Noakes, that I wish the Bill was specific and addressed the manifesto commitment of the Conservative Party. The Labour Party has made it absolutely clear that we are opposed to boycotts, disinvestment and singling out Israel. The problem with the Bill is that it is wide. It covers all kinds of issues that will place public bodies in a very difficult position. In the debate on this group of amendments, we have senior legal people all saying basically the same thing: this will end up in court. When that fear of ending up in court occurs—when people read a law and say, “This is so complicated that we don’t know what it means; it will end up with us in court”—what happens then? It is the chilling effect. There will be decisions made not in the interest of the public body but on the basis of it not being sure that it is capable of making this decision. That is the important thing.
I support my noble friend’s amendment on extending the exceptions. The Schedule lays out other obligations on public bodies, not least very positive legislation that this Government have implemented on modern slavery, on other international law issues, on labour-related misconduct and so on. They are naturally there because these public bodies have already been told that these obligations are on them. There will be a lot of confusion. I agree with my noble friend’s point about taking into account potential breaches of international law by the UK but not those by other countries in the supply chain. Most of our experience of labour issues is that those supply chains can be incredibly convoluted. You do not know the origin of certain products. We have had debates in this Chamber about the use of cotton grown in Xinjiang by slave labour and being sold in British shops. Companies have decided to find out where that goes.
My noble friend also raised the Rana Plaza disaster of 2013. I remember it well, and I am sure that the Minister does, too, because many of our retail companies were selling products made in factories that were incredibly unsafe and used child labour. That disaster will stay in my mind. The government response at the time was, “There are potential breaches of international law. We will give the ILO extra money to go and investigate Bangladesh so that it commits to its proper responsibilities”. We did that.
The Government in this legislation are saying, “There are all sorts of factors that we can’t take into account—and even if we can, there are exceptions, the Secretary of State has to be involved, and we know it’s going to end up in court.” That is the problem with this legislation. It is not straightforward dealing with BDS. I wish it were. We will come on to that in the other group.
I have been trying to work out at what point I should read out the guidance on the Occupied Territories in Palestine that the Government have issued to companies. I say to the noble Baroness, Lady Noakes, please read it. The noble Baroness is nodding; she has read it. Great. I shall read it into the record, although it may take longer than the 10 minutes I am allowed.
“The UK has a clear position on Israeli settlements: The West Bank, including East Jerusalem, Gaza and the Golan Heights have been occupied by Israel since 1967. Settlements are illegal under international law, constitute an obstacle to peace and threaten a two-state solution to the Israeli-Palestinian conflict. We will not recognise any changes to the pre-1967 borders, including with regard to Jerusalem, other than those agreed by the parties … There are therefore clear risks related to economic and financial activities in the settlements, and we do not encourage or offer support to such activity. Financial transactions, investments, purchases, procurements as well as other economic activities (including in services like tourism) in Israeli settlements or benefiting Israeli settlements, entail legal and economic risks stemming from the fact that the Israeli settlements, according to international law, are built on occupied land and are not recognised as a legitimate part of Israel’s territory. This may result in disputed titles to the land, water, mineral or other natural resources which might be the subject of purchase or investment … UK citizens and businesses should be aware of the potential reputational implications of getting involved in economic and financial activities in settlements, as well as possible abuses of the rights of individuals. Those contemplating any economic or financial involvement in settlements should seek appropriate legal advice”.
That is the Government’s advice, recently issued. As the noble Lord, Lord Deben, said, we are saying that there is one policy for the private sector and another for the public sector. That is absolutely crazy. There are so many contradictions in this legislation that it beggars belief. I hope that the Minister will think hard about the complex nature of the Bill, and perhaps give it due consideration. I shall not repeat my comments on the next group, but we have often said, “Let’s sit down together and come to a solution that meets the requirements that were set out in the manifesto”. This legislation does not; that is why it is so wrong.
My Lords, I will address the various amendments tabled in relation to international law. If the Committee is content, I will start by addressing Amendment 31, tabled by the noble Lord, Lord Hendy. It is a wide-ranging amendment, as some have said, which would allow public authorities to choose not to procure a good, service or works if their manufacture, provision or supply may have involved a breach of international law. Where a judgment has been made that a party has breached international law, it is for the Government and not a public authority to determine the appropriate response. This amendment would give public authorities too much discretion to engage in boycotts and divestment campaigns and would undermine the legislation.
I note what the noble Baroness says, but the Bill does not change UK foreign policy. That is for FCDO and the UK Government to decide. This applies only to public authorities and to investment and procurement, which I have continued to emphasise, because I think some of the discussion is needlessly wide-ranging—and, if I may, I will now make progress.
The Government, as I was saying, in relation to the Palestinian Occupied Territories, recognise the risk associated with economic and financial activities in the Israeli settlements, but we do not support boycotts of the Occupied Palestinian Territories. They are inherently divisive and may lead to inadvertent negative effects on Palestinians, as well as undermining the aim of the Bill, which is to ensure that we speak with one voice internationally. None of this changes existing government guidance.
This is a fundamental point. I have made clear the Labour Party’s position on boycotts. We are talking about investment in factories in illegal settlements in the Occupied Territories. What is the noble Baroness saying to a public body that realises that an investment it had has suddenly transferred from Jordan to a factory in the Occupied Territories? Is she saying that that public body cannot say that the investment is in breach? It causes reputational risk and could fundamentally affect the value of the investment, because it is illegal. What is the noble Baroness saying: that we are going to put it in this Bill, come what may, because that is the foreign policy? It makes no sense to me at all. The Government are talking with two voices. The FCDO is saying one thing and this Minister is saying something completely different.
I do not think there is a difference between us and the FCDO. If I may, I will move on to the other amendments, because I am trying, as I always do, to answer the questions noble Lords have asked. There are a number of different amendments in this group, and I think we should look at them in the round. I will turn to Amendments 18, 28 and 29.
I will start with Amendment 28, which is a probing amendment tabled by my noble friend Lady Noakes, which would remove paragraph 6 of the schedule. She said that was a direct approach. I thank her, more generally, for her support for this legislation and for providing this opportunity to explain why this provision was included in the Bill. Paragraph 6 of the schedule makes an exception to the ban for considerations that a decision-maker in a public authority reasonably considers to be relevant to compliance with the UK’s obligations under international law.
Amendments 29 and 18, as the noble Lord, Lord Verdirame, has explained, would remove the existing exception and replace it with a narrower exception that would only allow public authorities to consider international law in a way that is influenced by moral or political disapproval of foreign state conduct, in line with regulations made by the Secretary of State. I would like to thank him, and my noble friend Lady Noakes, and the noble and learned Lord, Lord Etherton, for raising this matter. I acknowledge the noble Lord’s and my noble friend’s valuable expertise in this area— of course, they have the support of the noble Lord, Lord Pannick, who is not in his place, my noble friends Lady Altmann and Lord Wolfson.
There are very limited examples of when this clause might be relevant to public authorities, such as when abiding by sanctions under international law. It is therefore intended as a safeguard. I appreciate the noble Lord’s concern that public authorities could make their own subjective interpretations of foreign policy that are not aligned with the foreign policy of the UK Government. This exception can only be exercised by public authorities in a way that is “reasonable”. It would be up to the enforcement authority, or the courts, to determine whether the exception was exercised reasonably.
However, I appreciate noble Lords’ various concerns on this matter, including the impact on the courts, and the Government will consider these. We will no doubt return to the international law issue on Report. I thank noble Lords for their insightful contributions—
(7 months, 2 weeks ago)
Lords ChamberMy Lords, as I set out in my response to the previous group, the Government chose to apply the ban to public authorities as defined by Section 6 of the Human Rights Act 1998. It is a great advantage that your Lordships, perhaps in contrast to the other place, scrutinise Bills in this way. I cannot accept that it is a sloppy Bill—it is a good Bill—but I think that concerns have been overstated. My noble friend Lady Noakes just explained why, very eloquently. We need clarity. Most bodies know whether or not they are covered.
There is another good reason for using the Human Rights Act definition—obviously, I am happy to look further at its implications, as I have said—which is that the Government intended to apply the Bill to a broad range of bodies when they are exercising public functions. This was to ensure a consistent approach to foreign policy across the UK’s public institutions, to stop public bodies legitimising divisive campaigns, which can undermine community cohesion, and to allow public bodies to focus on their core purpose when engaging in procurement and investment. That was the intention of the manifesto commitment that I mentioned in the previous group.
These amendments seek, rightly, to probe the scope of the Bill’s definition of public authorities, but they also probe the need for the power to make exceptions to the ban. I will try to address each in turn.
I am very glad that the right reverend Prelate the Bishop of Manchester has joined the debate. The Church of England would be in the Bill’s scope only to the extent that it exercises public functions. We have heard a little about the interpretation of that in the courts.
Before I address the specific amendments, I remind the Committee that the Bill will not create any new criminal offences. That is a very important point. I also take this opportunity to address the point raised by the noble Lord, Lord Boateng, and the noble Baroness, Lady Chapman, which was picked up by my noble friend Lord Deben, on orchestras. Orchestras are very unlikely to be regarded as public authorities. Moreover, withdrawing from an event is unlikely to be regarded as a procurement decision for the purposes of our Bill. The definition of a procurement decision does not include contracts where it is the public authority providing the service.
I can also reassure the noble Baroness who raised the issue that defence contracts are also exempt from the Bill. In addition, for contracts in scope, the Bill already contains an exception to the ban for national security considerations. In practice, if a case is reported to an enforcement authority it will look at whether the public authority had regard to any of the exemptions to the Bill—for example, the national security exemptions —during the decision-making process. Evidence of this might include if the public authority shows that it was following guidance from the UK Government, or became aware, for example, that a supplier was engaged in espionage.
Amendments 26 and 23 probe whether charitable organisations would come under the Bill’s scope. Charities would be captured by the ban only if they were performing public functions. It is the Government’s understanding that most charities will not be covered by the Bill. I hope that provides reassurance to noble Lords.
I am sorry to interrupt, but I was just checking the relevant parts of the Bill relating to enforcement. The Minister said that no new criminal actions arise from the Bill. What we do have is the ability of the Secretary of State to have enforcement powers that include monetary penalties. If people refuse to pay the monetary penalties, what would that result in?
Perhaps I might continue on the points raised in the debate and come back to that point. It is a very reasonable question but I am not going to answer it without advice. However, there are no criminal sanctions in this Bill, which there often are in the Bills we consider in this House.
There may be a small number of cases where charities are delivering public functions; they would therefore be captured in respect of those functions. However, it is important to note that it does not mean that a charity is a public authority just because it is in receipt of public funding.
The Bill will not apply to charities’ private functions. For example, for universities, decisions that are part and parcel of delivering higher education would be public functions so they would be in scope of the ban. If a charity did have public functions in scope of the ban, it would apply only to investment and procurement decisions made within the public functions. That is a point that I need to emphasise. Therefore, the ban would not restrict how such bodies decide, for example, to distribute humanitarian aid, which was the subject of the earlier debate.
I have already said that I am trying to answer the many questions noble Lords have asked. There have been a great many interventions on me and I have been very patient. I have also made some undertakings to try to clarify some of these points, including childcare, which would cover the schools that my noble friend Lord Deben mentioned.
Perhaps I could turn to Amendment 54, which requires
“the Secretary of State to provide a comprehensive list”,
of the bodies in scope
“before the provisions in Clause 1 can be brought into force”.
The Government are not able to provide a comprehensive list of bodies captured by the Human Rights Act definition. However, I have tried to be clear on the categories of bodies that includes. To repeat, these include: central government agencies and non-departmental public bodies; UK Government Ministers and devolved Ministers; local authorities; administering authorities of local government pension schemes; universities and higher education providers with public functions; publicly funded schools; and some museums and galleries in receipt of significant public funding.
As with any definition, there will be further cases at the margins where it is impossible to generalise without the full facts of a case. That, of course, is where the courts come in. Legislation often uses general definitions—for example, the Human Rights Act from which we have taken the scope or the scope of bodies covered by obligations under public procurement legislation.
Finally, I turn to Amendment 14A. This would remove from the Bill the powers granted to the Secretary of State to amend the schedule to make exceptions to the ban for certain bodies, functions and types of considerations, and to amend or remove regulations made under these powers. I understand concerns about the use of subordinate legislation—the noble Lord knows that—and we are lucky that we have such a good committee to supervise its use. However, these powers are necessary to ensure that the ban can evolve over time and operate as intended, for example in response to emerging global events.
I assure the noble Baroness, Lady Chapman, that the FCDO is fully supportive of this legislation, and all regulations made under this Bill would follow the normal procedure of cross-governmental clearance and, of course, be approved by the Foreign Secretary. In the event that in future the ban has unintended consequences for a certain public authority, it is right for the Secretary of State to have the power to exempt that body, or a function of the body, from the ban via statutory instrument—I think today’s debate shows that that is necessary—and this would be subject to affirmative resolution by both Houses.
These powers will also allow the Secretary of State to exempt certain types of considerations from the ban. For example, Ministers may decide to exempt a narrow type of consideration to ensure the ban can evolve in line with government policy. The powers future-proof the legislation to ensure the ban can continue to operate effectively and mitigate against any unforeseen circumstances.
Before I close, I should perhaps address the point made by the noble Lord, Lord Deben, on the environment. The ban applies only to decisions that target a particular country or territory. For example, environmental campaigns, including ones against fossil fuels that are not country specific, are outside the scope of this Bill. I also reassure my noble friend that the power in Clause 3 cannot be used to remove any exception to the ban in the Bill as passed by Parliament. There is a schedule the noble Lord can look at, which includes environmental misconduct, which we are coming on to discuss.
I hope, finally, to address the point raised by the noble Lord, Lord Davies of Brixton, with regard to why there is a separate clause in the Bill for local government pension schemes. The administering authorities for local government pension schemes are public authorities under Section 6 of the Human Rights Act. Capturing administering authorities of LGPS in a bespoke provision means that the Pensions Regulator can use its existing powers and procedures to enforce the BDS ban for the administering authorities of LGPS. That avoids the Pensions Regulator setting up a separate enforcement system for the Bill. I am happy to have a discussion with him; we often discuss pensions issues which are of limited interest sometimes to the whole House.
I hope that my response to this group of amendments —importantly, alongside the undertakings I gave in response to my previous group which we expanded a little to bring in telling examples—will help the Committee to understand why we have chosen the Human Rights Act definition and I ask the noble Lord to withdraw his amendment. I look forward to further discussion.
I hope I am able to intervene at this point before the noble Baroness sits down—some of these new rules that have been introduced for Committee stage I find incredibly damaging to our ability to properly scrutinise this Bill; I raised that point at the committee.
The noble Baroness said that the FCDO fully supports this legislation. She may recall that, at the previous Committee day, I specifically raised this question because I wanted to inform the Committee of the precise nature of the FCDO’s advice following United Nations resolutions regarding the Occupied Territories, which are specifically mentioned in this Bill. Perhaps she can take this opportunity to tell us how that advice could potentially impact the sort of investment and procurement decisions that organisations might make. There is advice issued by the FCDO in relation to the Occupied Territories.
We are going to be discussing the Occupied Territories in a group two or three later in this Bill and I do not have an answer to the noble Lord on this point today, except to reiterate that this Bill has been collectively agreed. I was particularly talking about the arrangements for regulations which, in turn, had been collectively agreed. I explained the system that when you have a new statutory instrument, there is a write-round which involves all relevant Ministers. In this particular case, that would certainly include the Foreign Secretary.
(8 months, 2 weeks ago)
Lords ChamberMy Lords, I thank all noble Lords for their amendments and for their contributions to the debate. I look forward to scrutinising the Bill and these proposed changes in detail during the four Committee days that we have set aside—although this one has been a little truncated. I remain open to listening to noble Lords’ views from all sides, and I hope we can use these sessions to put forward the best possible version of this legislation.
Clarity on all sides is important, and I look forward to further meetings with the noble Lord, Lord Wallace of Saltaire, as the Bill progresses. He knows I enjoy meetings with him on the Bills that we have done together. Probing amendments are also important, as the noble Lord, Lord Collins of Highbury, has just said. We were of course both involved with the Procurement Act and I look forward to discussing how the two pieces of legislation interact and how human rights considerations are respected—as they are.
I hope that, in responding to these six amendments, I can assure the House that Clause 1 as currently drafted is the most proportionate and clear way of fulfilling the manifesto commitment of banning public bodies from imposing their own boycott and divestment campaigns.
Clause 1 sets out three tests that must be met to trigger the ban. First, the ban is narrow. It applies only to procurement or investment decisions. Secondly, the public body must have considered a specific territory or country as part of making its decision. Thirdly, that consideration must reflect political or moral disapproval of the conduct of a foreign state.
I turn first, if I may, to Amendments 3, 4 and 5, tabled by the noble Lord, Lord Verdirame. I am grateful for his general support. However, together, his amendments would alter the scope of the clause. Amendments 3 and 5 would prohibit public authorities from being influenced in any way by foreign state conduct. This would widen the prohibition in Clause 1 to include considerations that relate specifically or mainly to a country or territory in a way that is influenced by approval of foreign state conduct. The current drafting prohibits only disapproval of foreign state conduct, and the inclusion of moral and political disapproval is necessary to ensure that the Bill does not capture legitimate territorial considerations that are not about boycotts and divestment campaigns and would take the Bill beyond the manifesto commitment. An example of this would include encouraging trade with important trading partners. These amendments would therefore prohibit a public authority from favouring goods or services from a particular country or territory, based on approval of that country’s conduct. It therefore captures a broader range of decisions that are not relevant to boycotts and divestment campaigns.
Amendment 4, on the other hand, would narrow the prohibition so that it applied only in the case of disapproval of a foreign state’s conduct within its own territory. It would not apply in the case of disapproval of a foreign state’s conduct outside its territory. I agree with the comments made by my noble friend Lady Noakes: this would effectively allow public authorities to boycott countries whose foreign policy they disapproved of. This could leave a significant loophole—a word I think she used—in the ban and undermine the manifesto commitment.
I will now address Clause 1(7) in response to Amendment 6 by the noble Lord, Lord Wallace of Saltaire, and the concerns raised by the noble Baroness, Lady Janke. This amendment would permit public authorities to engage in boycotts and divestment campaigns as long as they were only a result of pressure from a third party, such as a student union, rather than a result of the public authority’s own moral or political disapproval. Subsection (7) is a necessary element of the Bill, as public authorities such as universities and local authorities are frequently pressured to engage in boycotts or divestment campaigns. For example, student unions at Warwick University and Sussex University have passed motions calling for their universities to divest from Israeli companies. If a university conducted a boycott or divestment campaign because of such pressure, rather than because of its own view of a foreign state, we would want that campaign to be caught. Subsection (7) extends to any person seeking to persuade the public authority. However, for there to be a breach of the ban, an enforcement authority must be satisfied that there is enough evidence that a third party influenced the public authority.
I will address the comments of the noble Baroness, Lady Janke, on decision-making, if she would agree, on group 2 because we are going to be discussing the meaning of a decision-maker for the purposes of the Bill.
Finally, and most importantly, I turn to Amendments 1 and 2, tabled by the noble Lords, Lord Wallace of Saltaire and Lord Palmer of Childs Hill. Amendment 1 would narrow the scope of the prohibition in Clause 1 so that it prohibited public authorities from taking account of territorial considerations only where moral or political disapproval of foreign state conduct is the “primary or sole” factor in the decision. My noble friend Lord Leigh of Hurley asked a question which made this point, while my noble friend Lord Wolfson of Tredegar was concerned that it would increase uncertainty and lead to legal disputes.
Similarly, Amendment 2, tabled by the noble Lord, Lord Palmer, would narrow the prohibition to decisions “materially” influenced by moral or political disapproval of foreign state conduct. Like my noble friend Lord Wolfson, I do not agree with weakening the effect of the Bill in this way. Public authorities buying goods or services, or making investments, should not be influenced by moral or political disapproval of foreign state conduct to any degree, unless—and this is important—one of the exemptions, such as environmental or labour misconduct, applies.
I reassure the Committee that Clause 1 will not capture fleeting and inconsequential remarks made during the procurement or investment decision-making process. The Bill prohibits only considerations that a reasonable observer of the decision-making process would consider a contributing factor to a decision.
It is precisely that point I want to better understand, because many decisions are going to be complex. While the Minister mentioned the exclusion of things, there could be a combination of issues which would influence the final decision. Somebody might be able to say, “Actually, that combination has become a moral and political thing”. That is what really concerns me. The Minister is very confident that certain things will not be captured, but I do not see that. I would like her to explain in a little more detail that final point she made.
We will try to do that. I am also happy to discuss this further, because it is obviously an important point in relation to the Bill and, as we agreed at the beginning, we need to try to find a way that does not create a lot of uncertainty.
The noble Lord, Lord Wallace of Saltaire, commented on the perceived lack of evidence for the Bill, but boycotts have been attempted by several public authorities in recent years. In 2014, Leicester City Council passed a motion boycotting goods from Israeli settlements, as far as the law allows. Several other local authorities have passed boycotting or condemnatory motions, including Swansea Council, Gwynedd Council—
I am sorry to interrupt, but on that point can the Minister tell us what the FCDO’s advice and the United Nations decisions are in relation to the Occupied Territories?
I am certainly very happy to come back to that on a later group of amendments.
I will see if I can come back to it before we finish. I was trying to give the examples that the noble Lord, Lord Wallace of Saltaire, had asked for. There was West Dunbartonshire Council and Stirling Council, and in 2021 Lancaster City Council passed a motion in support of the wider BDS movement.
I come back to the first point that the Minister made. It is really important that we are clear about this, because one concern we have mentioned—I am not going to make a Second Reading speech—is the impact that this Bill has on the United Kingdom’s foreign policy. If there is a discussion about goods from and investments in the Occupied Territories, she needs to explain why she has evidenced that and how it is supported by the FCDO’s own advice and the Government’s support for United Nations resolutions on that subject.
I can certainly provide more detail of the boycotts, if that is helpful.
No, that is not what I am asking. The first example that the Minister gave was in relation to the Occupied Territories. I really think it is important that we understand why she has referenced that.
I was giving a list and I will certainly come back on that question. We have a group relating to the Occupied Territories later on, when we can go into this in more detail. If the noble Lord can give me a bit of slack, I will see if I can get fuller information and come back to that at the end.
I was trying to answer the question on evidence. If I may, I should also like to cite, from September 2023, Islington Council passing a motion in opposition to this Bill, expressing its support for BDS campaigns—which everybody has said that they are very unhappy about—and resolving to:
“Continue to ensure that our own ethical procurement strategy doesn’t include procuring goods and services produced by oppressive regimes”.
I have not covered all the BDS activity in public bodies, but I hope that this demonstrates to the noble Lord that there is a considerable evidence base.
Separately, I note the points made by the noble Lord, Lord Mann, about student unions and the provision of kosher foods in universities. We are going to discuss that point. The noble Lord has tabled some interesting amendments on it in group 3.
My Lords, I too associate myself with the comments of the noble Lord, Lord Pickles, because the noble Lord, Lord Mann, has done incredibly important work in tackling anti-Semitism and ensuring that we remove it from all of our civil life. I pay tribute to him.
I will not delay the House too long, but the important thing with these two amendments is expectations. This is the problem with the Bill. While I want to avoid going back, we have made a plea—my noble friend Lady Chapman made it at Second Reading—that we want to co-operate with the Government to implement their manifesto commitment. I am afraid that this Bill goes well beyond that and brings into question other issues.
The noble Lord, Lord Mann, is absolutely right to put these sorts of amendments down, because they address the concerns of the community. People often think when we are talking about this Bill that we are talking about consumer boycotts and consumer choice. No, we are not. It is about decisions over investment and procurement, but those decisions can involve the sorts of things that the noble Lord, Lord Mann, is talking about—and we heard an example from the noble Lord just now.
How we manage expectations is really important. I suspect that, when we go into other groups, we will hear lots of concerns about issues that go well beyond the scope of the Bill. So I hope the Minister understands why the noble Lord, Lord Mann, has put these amendments in. They are to probe, but also to say that there is a problem, there is an issue and the Bill does not solve it.
My Lords, I thank the noble Lord, Lord Mann, for drawing the House’s attention to two important issues with his Amendments 8 and 9. Like my noble friend Lord Pickles, who it is a real pleasure to welcome to our debate, my noble friend Lord Wolfson of Tredegar and the noble Lord, Lord Collins of Highbury, I am really grateful for all the work that the noble Lord, Lord Mann, has done.
My noble friend Lord Pickles and I worked together in my retail days, when he was a leading influence in local government and I worked to have kosher and halal food in many of the Tescos that were spreading across the country. So there were lots of conversations over food. A focus on community concerns is what much of the probing has been about this evening—but that is for another group.
I remain of the view that we need to apply this Bill to universities as we are doing, and I am committed to having a comprehensive debate and discussion on the impact of the Bill on universities at the appropriate moment later in Committee.
As we have heard, the two amendments in this group would add two stipulations to Clause 1. Amendment 8 intends to ensure that the prohibition applies to a decision made by a university to enter into a commercial partnership with another university or research university in a foreign state. The prohibition in the Bill already covers higher education providers in their public functions, including when their procurement and investment decisions form part of a research collaboration. Decisions relating to a commercial partnership are, however, likely to constitute a private function—for example, a decision relating to a research partnership to develop a new product funded by a pharmaceutical company. The ban applies only to public authorities’ public functions, as we have heard, and private decisions are rightly out of scope of the Bill. I note what the noble Lord, Lord Mann, says, but it would be inappropriate to apply the ban to private functions, and it would take the Bill beyond the manifesto commitment.
We have been clear in the Explanatory Notes that Clause 1 is not intended to prevent a higher education provider deciding to terminate a collaboration with a foreign university on the grounds of academic freedom, if they deem it necessary in line with their statutory duties in Part A1 of the Higher Education and Research Act 2017 or other legislation. The Bill is about ensuring that universities and higher education institutions do not have a corporate view on a particular matter of foreign policy when making their investment and procurement decisions. It is right that the Bill does not stray into decisions that could threaten academic freedom, as helpfully highlighted by the noble Lord, Lord Stevens of Birmingham, who spoke at Second Reading. I am sympathetic to the points that the noble Lord, Lord Mann, is making, and the Government do not support academic boycotts, but this Bill rightly does not interfere with academic freedom or private activity.
I turn to the points made by the noble Lord, Lord Mann, about the Jewish community’s support for this Bill. The Jewish community in the UK is widely supportive of the Bill as drafted. Russell Langer, head of policy at the Jewish Leadership Council, provided the following statement in support of the Bill’s restriction on universities’ economic activities:
“Higher education institutions continue to come under pressure to adopt BDS policies ... This legislation will be a valuable tool in assisting our higher education in rejecting this effort”.
The Bill will sit alongside other measures that the Government are taking to protect academic freedom. The Higher Education (Freedom of Speech) Act 2023 will ensure that freedom of speech is protected and promoted within higher education in England, and it will strengthen existing freedom of speech duties and directly address gaps in the existing law. Without action to counter attempts to discourage or even silence unpopular views, intellectual life on campus for staff and students may be unfairly narrowed or diminished, which is why there was a commitment in the 2019 manifesto to strengthen this.
(1 year, 4 months ago)
Grand CommitteeMy Lords, I suppose a lot of these questions stem from the 2007 Act and the establishment of the Statistics Board as a non-ministerial department that operates under the name of the UK Statistics Authority. The issue then was, and now is: what stats do we rely on? What has public confidence and what has public policy confidence? Of course, the authority is meant to do that job and draw from a number of sources, not least the bodies that are listed. Apart from the government departments, it can add other bodies to it, which raises the point that the noble Baroness, Lady Lawlor, mentioned. The official statistics from the five new bodies that have been added to the list must be accurate, credible and reliable.
The question for the Minister is: what sort of additional support will be given to the bodies concerned to ensure that they are able to meet the standards required? The Equality and Human Rights Commission is one of the bodies that is being added. I am certainly aware of how much its resources have been reduced recently; its ability to conduct a range of statutory work has been curtailed because of the lack of resources. Is it solely up to the UK Statistics Authority to do that monitoring and evaluation? It must have felt confident to recommend that the Equality and Human Rights Commission be added to the list. The question raised by the noble Baroness, Lady Lawlor, was important: how is that decision made and how do we maintain public confidence in official statistics by the mechanism established in the 2007 Act?
The 2007 Act was designed to have an independent stats authority that can challenge the use of statistics where necessary. If the bodies are receiving government grants or are in any way overreliant on the Government—particularly the five that are being added to the list—will that reduce their capability to challenge the Government where necessary? I suspect that there is always the temptation for Governments of whatever colour to use the principle that he who pays the piper calls the tune. We need to see just what mechanism is involved. Can the Minister assure us that the independence and credibility of these bodies will be properly maintained? That is the main focus of my concern. I would certainly welcome any briefing, but the 2007 Act is a useful starting point to look at the issues that my noble friend raised.
First, I thank all those who have taken part in this debate. I am delighted that it is a bit longer than the equivalent debate that my colleague, Minister Burghart, took in the Commons. He must have been very disappointed.
I thank in particular the noble Lord, Lord Davies of Brixton, for challenging us in such a delightful way. What he does not know is that I am almost as passionate about statistics as he is, so I was delighted when I discovered that statistics was in my portfolio at the Cabinet Office. I would be absolutely delighted to agree to a meeting, where we can take the conversation a little further. That will perhaps save us a little time this evening, especially if the Division Bells ring again.
I draw the Committee’s attention to the code of practice for statistics, which ensures that official statistics serve the public. I find it a very useful document that answers quite a few of the questions that have been asked this evening. It is on the GOV.UK website. Indeed, the definitions of “official” and “national statistics” are on the UK Statistics Authority website. The purpose of official statistics is made very clear in the code.
On why there are 40 bodies and how we consulted, I will explain a little about what we did in the run-up to this order. It is the product of extensive engagement between the Cabinet Office, the UK Statistics Authority, the listed bodies and responsible government departments. The scope of the engagement was to establish whether the list of bodies in the old order was up to date and what changes were required. We contacted the authority, which obviously led this work—as was explained, it is independent—and it contacted senior statisticians at all the departments involved. This involved a review of the schedule in the old order to establish changes. The authority requested input from senior statisticians regarding new bodies under its remit and the changes that might be needed. Its role as the national statistics institute gives the authority a special position in all this.
As we noted, many of the changes are proposed because of the restructuring of the bodies since 2018. It slightly took one down memory lane that some of the bodies that we all dealt with have now been replaced by others. I do not think I can match the brilliant analysis that we heard, but I look forward perhaps to having a more leisurely conversation about some of the reasoning behind the list that we put before noble Lords. On the overarching policy, I hope that noble Lords find the explanations online and in the code of practice helpful.
My noble friend Lady Lawlor asked who decides about the official statistics. All statistics produced by the bodies listed will be official. The ONS does not direct bodies as to what statistics are to be produced and, under Section 12 of the Act, producers of official statistics have the opportunity to request an assessment of their statistics against the code of practice. If the UK Statistics Authority determines compliance with the code, the statistics are designated as national statistics. That also helps with the question that the noble Lord, Lord Collins, asked about the departments’ need for help with statistics—that engagement is helpful there.
The noble Lord, Lord Wallace, talked about barriers to sharing statistics. We have discussed this before in relation to legislation, where we have sometimes taken powers in Bills before this House to make sure that there is better scope for the sharing of statistics, which is important. From having visited the authority, my impression is that it plays an important role in bringing statistics together and sharing important information and consultations on important issues. Some migration statistics recently went out for consultation, and these kinds of things are useful and important.
I very much welcome agreement on the importance of evidence-based policy-making, which is one of the reasons why we have invested in this substantial statistics authority. I do not think that the future of the census is for today, but conversations continue about the terrific material that is now emerging from the last one, which is changing our view of things. We look forward to finding the best possible ways of collecting statistics for the future, which is an important focus of the authority’s work.
The noble Lord, Lord Collins, talked about challenge. Clearly, the UK Statistics Authority contains some of the best statisticians in the world and plays a world-leading role. The noble Lord’s question was about how the organisations supplying data to the authority would challenge. I am not sure I quite understand what he was getting at but, clearly, the code and the UK Statistics Authority’s links with different departments—
If I might assist the noble Baroness, it was a general point on statistics: he who pays the piper calls the tune. I suppose all statistics produced by government departments are official statistics. The Civil Service does that job, but we have these additional bodies—quangos and other things.
The point I was making was particularly about the Equality and Human Rights Commission, which has been added. Is that because of its restructuring? I do not think so, but it could be. It does collect important stats on the groups for which it has statutory responsibility, but its resources have been substantially cut. Its ability to do the job that it was given by statute has been undermined by government funding. What mechanism is there to ensure that, when it is asked to produce statistics or statistics are drawn from it, it has the capacity and capability to do the job? I was amplifying the question from the noble Baroness, Lady Lawlor.
(1 year, 8 months ago)
Lords ChamberI could not agree more on this occasion with my noble friend, who does such a good job in the part of the country from where he came—and, of course, in supporting Lincoln Cathedral.
My Lords, the noble Baroness talks about geographical representation, but what is the Prime Minister doing to ensure that this House better represents modern Britain? It is not just about where people come from; it is also about the colour of their skin and their religion. There are different factors that should be taken into account to ensure the broad representation that the noble Baroness is talking about. What is the Prime Minister doing to ensure that this range of factors is properly represented in this House?
There are indeed different sources from which representation of this House can be drawn. That includes, of course, former politicians— I draw your Lordships’ attention to the diversity of the current Cabinet. I also ask noble Lords to look around them. I am glad to be one of many women who serve on the Front Bench in this House.
(1 year, 9 months ago)
Lords ChamberI am sure the Ministers responsible at the Department of Health and in the devolved nations will consult the Food Standards Agency. In the work I do with the Department of Health which involves food, the Food Standards Agency is an incredibly important part of the decision-making process.
The noble Baroness should not therefore have a problem in saying that they will consult it. Can we not have a commitment from the Government that they will do so? That is all.
As I said, I am sure that the Health Ministers will consult the Food Standards Agency. The food standards agencies have been set up for this purpose. If you are making changes to legislation, of course there will be consultation. I am not the Health Minister, so I cannot make a declaration of that kind, but I have already said that I will pass on to the Health Minister the discussions we are having on food safety.
(1 year, 9 months ago)
Lords ChamberI am sure that they were trying to make a helpful point. We have got to help one another to get through this. I have undertaken to look at what is being done about methodology and the approach that has been adopted in one area. A plethora of wide-ranging points has been raised, including on consultation, which we will come on to in one or two of the later amendments. We have discussed transport. With this in mind, I ask noble Lords not to press their amendments.
The Minister raised the question of aviation. It is one of the most serious points here because it is about business confidence, consumer confidence and consumer protection. The problem I have, and which she can take back to the Department for Transport, is this. We had a consultation that started at the beginning of last year on changing levels of compensation. Ideas were thrown up in that about reducing it substantially for domestic aviation. We had a summary of the responses published in July last year, and nothing from the Department for Transport about what its true intentions are. That raises serious issues about what the Government’s intentions are around the EU regulations that protect us all when booking holidays abroad next year. I hope that the Minister can go back to the Department of Transport and ask to be told what the true intentions are. People need to know. The simple fact is that this Bill and these clauses create huge uncertainty for a very vital industry of this country.
(1 year, 9 months ago)
Lords ChamberIt is important to have an ambition and a road map if you are going to move things forward. We have a Prime Minister who regards the digital and data area as very important. We have set out our digital future strategy, which includes, on the point that the noble Lord is concerned about, that 90% of senior civil servants will be upskilled in digital and data through that programme. Digital professionals will also have top-up training every year. We are moving to recruit a lot more civil servants in the digital and data area; we have 4,000 vacancies, which is too many, but we are doing everything that we can to attract more people. This includes a capability-based pay scheme and much more focus on the regions, where we believe that we can get more digital talent out of the universities, often working away from London in centres such as Cardiff and Darlington.
My Lords, to pick up that last point, the Government’s own digital tsar—the head of digital services—does not underestimate the difficulty of attracting those professional staff because of the salary issue. Does the Minister think that this road map will properly address that? Is it not about time we spent less on consultants, who we are paying millions for, and more on the wages of our digital experts in the Civil Service?
I believe that is actually the direction of travel. We are bringing in more of a capability-based pay scheme, which will allow us to track and keep these people who are in hot demand in a competitive market—as I know only too well. The Civil Service jobs are very interesting; if we could sort out a route for people to come in and work on digital data, and perhaps even go out again, and so improve our skills and work on these important projects, that would make a huge difference. The establishment of the Department for Science, Innovation and Technology—DSIT—is going to make a difference as well, in setting the tone and encouraging people to come and work on the very real data and skills challenges that we now have in the Civil Service.
(1 year, 10 months ago)
Grand CommitteeMy Lords, I too welcome the Minister’s introduction to the SI. Certainly, it is one of the least controversial ones that I have ever dealt with, so I will not labour the point too much.
I would like the Minister to comment on how well the CCA five-yearly review works. Bearing in mind that, on Radio 4, the Environment Agency’s comments on the risk of river flooding were so closely aligned to the Meteorological Office’s warnings, I wonder what difference this statutory obligation will make. Will it have added value? The two things here that have come out of the review are so logical that one wonders why this was not done before. Will the department add other elements of the review? Are there elements that will still require action?
Certainly, there can be no reason for not adding these two bodies as category 2 responders; I am sure that both are currently working to provide information and support. The Minister said that they will not perform additional duties; they are already performing the duties, so there will be no additional cost, but I would like to know how this statutory responsibility will add to the benefit of their work.
With those few comments, I support the order and wish it well.
I thank noble Lords for this short and very positive debate. It is nice to be able to celebrate delegated legislation that is supported by the noble Lord, Lord Wallace of Saltaire, particularly given that, in another world, when I was a poacher rather than a gamekeeper, we used to ask questions about these things together. I thank him very much; it has made my day.
I will respond briefly to some of the helpful points made. First, the noble Baroness, Lady Brinton, raised the very important question of how the legislation works in practice for vulnerable people such as her granddaughter, whom I am delighted to hear is now off the ventilator. A bit of good news is that there are additional recommendations in the CCA review of the legislation—the PIR—which the noble Lord, Lord Collins, referred to, which look to strengthen the requirement on the local resilience forums to consider vulnerable people, and a dedicated BEIS-led programme on power supply is part of that.
I will write to the noble Baroness with more information about that, but she is right that we should be improving things for vulnerable people across the board. I will liaise with my noble friend Lady Bloomfield, and between us we will see what we can do about the point that the noble Baroness raised about electricity and, indeed, the more general question about vulnerable people. We have a new resilience framework, and we are very keen for it to think more about the user and to have more of a whole-society approach. The noble Baroness’s point is an excellent example, if we can crack it, of what we should be doing.
The noble Lord, Lord Wallace of Saltaire, asked what other agencies we thought of adding to category 2. Obviously, it is important to ensure that structures are efficient and effective, and balance is critical in making sure that those important to local planning and preparation are included but do not overwhelm the system. Noble Lords will remember that I used to work in the supermarket industry. We always thought that our role was very important but, in fact, we were not category 2 responders, although we were involved in assisting in the event of terror attacks, flooding, and so on. The honest answer is that other organisations and agencies did not make the cut in terms of benefit versus burden, but if I have any more information, I will pass it on.
The point about phone use and the move to the internet is something I have experienced where I live when I am in London. Exactly the same thing has happened with Virgin Media: we have moved from having a home phone to it now being linked to the wi-fi. I think the noble Lord raises a good point; I do not know what is being done about it, but I will make some inquiries.
The noble Lord, Lord Collins, talked about outstanding commitments from the review. As he probably remembers from previous debates, I am very keen on post-implementation evaluation. There are two other potential legislative changes. The first places a reporting obligation on categorised responders to set out publicly how they comply with their statutory duties under the Act. However, we think that may require primary legislation, so it will not be done overnight. The second removes the legacy role of regional nominated co-ordinators in Part 2 of the Act; the regional government offices in England were closed in 2010. That also requires primary legislation, although it is probably less urgent, given its nature.
There were also some non-statutory recommendations. We have committed to placing the national resilience standards, which set out expectations of good and leading practice for local resilience forums, on a statutory footing. We have committed to updating the statutory and non-statutory UK guidance that accompanies the Act. The requirement to produce a community risk register is to be strengthened, with a requirement for responders to consider community demographics, particularly for vulnerable groups, in preparing their community risk register. The noble Baroness, Lady Brinton, will be delighted to hear this and it might be relevant to her point. The multiagency preparedness activities conducted by local resilience arrangements require enhanced accountability, which is being given further consideration as part of DLUHC’s reform programme of the local resilience forums. Noble Lords may remember from the debate on extreme risks the other day that I explained that those forums had got more support and are regarded as very important.
In addition, assurance of the preparedness activities conducted as part of local resilience arrangements needs to go further than the current voluntary assessments and peer review. There are various obligations on central government departments to improve information sharing and planning between national and local, such as through a statutory duty to co-operate and information sharing paralleling what we have with category 1 and 2; there are various options that could be looked at. That needs further consideration, but I hope noble Lords can see that that work is in hand.
The recent crisis, including the increasingly eccentric weather—it was -7C in my part of Wiltshire this weekend, which is extraordinary—means that we need to do more in these areas. I hope we have made it clear that that is exactly our plan. It is one of the reasons that the Chancellor of the Duchy of Lancaster put out a major document within the last month.
Finally, what difference will the SI make? I make it clear to the noble Lord, Lord Collins, that the intention of this intervention is to improve the civil protection framework and ultimately to increase the level of preparedness of relevant organisations to respond collectively to emergencies. The “collective” is as important as anything. As I said in my opening remarks, the new categorisations will increase responder understanding of severe weather, climate change and mining-related risks, and better inform our work to prevent, prepare, respond and recover, thereby improving resilience and reducing adverse impacts.
I believe that the Civil Contingencies Act delivers a strong framework for civil protection in the UK. These two additional responders will strengthen it. I hope that colleagues will join me in supporting the regulations, which I commend to the Committee.
(1 year, 11 months ago)
Lords ChamberMy Lords, I begin by sharing the many thanks expressed to the noble Baroness, Lady Armstrong of Hill Top, for opening the debate with such verve, and indeed to her committee and its staff. I thank all noble Lords for their interesting contributions.
The Public Services Committee, of which the noble Baroness is clearly an excellent chair, has delivered an insightful and important report that has been welcomed by us all. It is a cornucopia of insights and examples. We have had more today—Camden and Wigan councils and secondments mentioned by the noble Baroness, Lady Armstrong, the local IT training mentioned by my noble friend Lord Kamall, high employee participation in the Swedish model mentioned by the noble Lord, Lord Liddle, and so on. At a more strategic level, it has also rightly highlighted the growing demands on the public sector workforce and the need to find different ways of delivering effective public services and, of course, taking the public sector with us and serving the public well.
I agree with this challenge. I believe we can help to square the circle by making the public services more efficient. This is a mixture of big things—a past example might be making the Bank of England independent—and a plethora of small things. Some of these involve doing things better—for example, using new technology in the right way—and others involve reducing or ceasing inefficient activities and increasing flexibility, as the report highlights. Even more crucial is to attract and retain the right talent and train the workforce well. Examples of all these things can be found in the committee’s report.
Since I last served in government, we have improved the life cycle of government delivery—the way we procure, the way we manage and the way we evaluate. To pick up on the challenge from the noble Lord, Lord Collins, I think this is a major strategic contribution. We are improving the way we procure, not only through the Procurement Bill and associated transformation but with high-quality recruitment and professional training to ensure that public services are well equipped with products and services. We will bring in SMEs, social enterprise and the voluntary sector, on which my noble friend Lord Kamall has spoken with passion.
We have improved the way that major projects and workstreams are managed through the Infrastructure and Projects Authority, run jointly by my department and the Treasury, to support successful delivery. We have also improved the way we evaluate government spending decisions with the Evaluation Task Force, which provides specialist support to ensure that evidence and evaluation are used to drive continuous improvement and inform Ministers on decisions.
Specifically on the report, much progress has been made in aligning with its recommendations. The People at the Heart of Care White Paper sets out our strategy for the social care workforce and system reform. We are taking forward ambitious reforms to the social care system and progressing the proposals in the White Paper, including on training and technology—a key focus of today’s report. This includes boosting workforce capacity, supporting sector digitalisation, developing our approach for improving oversight of the adult social care system, and enhancing the collection and use of data. Another example is the introduction of the public sector apprenticeship target to boost apprenticeship starts across the public sector, which I will come on to, and ongoing investment in preventive services, as several noble Lords have mentioned.
Picking up some of the key themes of discussion, as we recover from the pandemic and face a tight fiscal position, it is more important than ever that we focus on easing pressure on public services. One way we can do this is through investing in technology, as the noble Lord, Lord Collins, said; that is highlighted in recommendation 9 of the report. It is clear that having efficient and effective technology is an integral part of delivering high-quality public services and, as the noble Lord said, it can help with planning and co-ordination. That is why we have created the Central Digital and Data Office in the Cabinet Office to help build an effective digital Government, which includes a commitment to exploit emerging technologies such as artificial intelligence, blockchain and quantum computing. By 2025, the Government are committed to having improved the skills of 90% of senior civil servants against the digital and data essentials core curriculum, which includes a specific focus on the needs of users and real-life experience—a key theme of the report.
Innovation is key in the design and delivery of public services, and it should perhaps have been mentioned a bit more. Access to data is often central to improving the lives of citizens and businesses. For example, it can be seen in the Geospatial Commission’s work on electric vehicle location data to support the rollout of electric vehicles, and in the national underground asset register, which is building a digital map of underground pipes and cables that will revolutionise the maintenance, repair, installation and operation of buried infrastructure, so district nurses will not be waiting in their cars while roads are being dug up.
We need to create leaders throughout the public sector who can navigate the challenges it faces. In recommendation 32, the committee rightly challenges the Government to promote best practice through the Leadership College for Government. The college works with a wide range of partners and leadership academies on common topics, sharing expertise, user focus and feedback. It will be a forum to encourage best practice, for which the noble Lord, Lord Collins, called. I was particularly glad to see that this will include front- line visits by the top of the office—the senior civil servants—right across the UK. The noble Baroness, Lady Armstrong, spoke about knowledge and skills networks. I would like to talk to her further, but the college can become such a network to share knowledge and skills across the public sector.
As well as focusing on those at the top, the Government are focused on creating a pipeline of new talent into the public sector and a skilled and capable Civil Service. As part of this, we launched a revised apprenticeship strategy in April 2022, which sets out our commitment to apprentices making up 5% of the UK Home Civil Service workforce.
Recommendation 23 of the report calls for the successful public sector apprenticeship target to be reinstated. The target was introduced to boost apprenticeship starts across the public sector, and its introduction has had a positive impact—it has been a “successful action”, to pick up on the noble Baroness’s words—with over 220,000 apprenticeship starts in the public sector over the initial four-year target period. Apprenticeship starts by new and existing employees now represent around 1/10th of all starts in the public sector. Of course, apprenticeships can also be a vehicle for lifelong learning, and need to be encouraged right across the board.
We are also committed to creating a skilled and highly trained public sector workforce. Despite what the noble Baroness, Lady Brinton, said, for example, the Department for Education has taken action to attract more people into teaching and enable them to succeed, with an entitlement to at least three years of structured training, support and professional development for all new teachers. I agree with the noble Lord, Lord Wallace of Saltaire, that we need to value teachers, which means building on local good practice. I was recently at Corpus Christi Catholic High School in Cardiff, and I saw the difference that a very good headmaster could make. It was clear that he was training the teachers and empowering them.
I acknowledge that STEM subjects are a challenge. I know from my noble friend Lord Younger that even the University Technical College in Portsmouth finds it very difficult to get girls to sign up to its STEM courses. We want to bring teaching into line with other prestigious professions such as law, accountancy and medicine by a better approach to training.
In addition, the Department of Health and Social Care continues to provide financial support to those wishing to qualify as social workers, through the £58.5 million social work bursary and £18.6 million education support grant. I take the point made by the noble Baroness, Lady Pitkeathley, about the difficulties for those without formal qualifications in social care. I know from my own experience with my father’s carer, whom we helped to get qualifications while she was caring for him, that we need to be imaginative and do more in that area.
Training in cyber and computing skills si also a priority. We cannot deliver improved cyber-resilience or meet the integrated review ambitions on science and technology unless we grow and upskill our workforce.
The noble Lord, Lord Hogan-Howe, made some insightful and authoritative points about training and the police force—and, indeed, about police management more generally. I am afraid that I am unable to respond to his detailed points, but we are meeting next week, because he is kind enough to serve as a non-executive director on the Cabinet Office board, and perhaps we can talk further about the points that he has made. If need be, I can come back to him in writing as well.
My noble friend Lord Shinkwin made some very powerful comments about disability in the public service, and I look forward to seeing the IoD report that he mentioned. I recognise his unique contribution and perspective on how we best support disability in public service; he is right to pick up from the report the need to focus on users across the board and say how that can make a difference. I would add that our Access to Work programme has contributed to 1.3 million more disabled people being in work than in 2017, hitting a government commitment. We want to create more opportunities for disabled people to participate and thrive, and our important work on our health and disability White Paper goes on.
Many noble Lords have talked about preventive services. To respond to the noble Baroness, Lady Pitkeathley, we need to prioritise investing in preventive services so that we can ease the burdens on public services by solving problems, as she said, before they become acute. For example, the likelihood of ex-offenders reoffending is significantly decreased if they have a home, a job and access to healthcare, including substance misuse treatment. That is why the Ministry of Justice is investing £200 million a year by 2024-25 to drive down reoffending and to offenders off drugs and into skills training, as well as into work and living in stable accommodation.
The 2021 Autumn Budget saw the Department for Levelling Up, Housing and Communities’ supporting families programme, which now has planned funding of £695 million over three years. It is an important programme because it helps disadvantaged families with problems relating to unemployment, financial insecurity, the risk of homelessness and educational inequality.
My noble friend Lord Kamall brought fascinating insights into the link between government departments, civil society organisations and public sector partnerships. He will know that many government departments hold regular engagements at official and ministerial levels with civil society organisations to consult on the implementation of policies and to find innovative ways to improve public services from the point of view of citizens and users. The work we are doing on procurement represents something of a step-change in this area. I disagree with the noble Lord, Lord Wallace of Saltaire—we often disagree on these points—in that the amendment we made on Report regarding social enterprises and SMEs sends a message which is extremely important in the transformation programme that follows the Bill.
The Government have been very ready to use the private sector and civil society to deliver, as my noble friend Lord Kamall will know from DCMS, which very much leads the way. I believe in consultation with stakeholders and have been seeking help from stakeholders and users on the development of border import controls, which is one of my current challenges.
I am sorry so many committee members have been kept away by industrial action today. It is important that we view this report within the context of industrial action across the public sector, the huge economic challenge we face and the risk of inflation running out of control. This Government are committed to working constructively, but we need the unions to be fair and reasonable in return. Despite what the noble Lord, Lord Liddle, said, the country simply cannot afford some of the demands being put forward, such as the 19% demand from the nurses, who of course we all support and value. The only way to truly mitigate the impact of these strikes on people is for the unions to go back to the negotiating table for a reasonable solution.
And employers. I know from my experience at Tesco, which the noble Lord, Lord Collins, was kind enough to reference, how important discussions with unions on ways of working and training can be. It is not only about pay; it is also about how you modernise, move forward together and use new technology, as he was saying. So I think even the old-fashioned Labour people opposite—
—old-fashioned new and old—might agree with that. However, for today, strikers need to ask themselves whether it is really fair to do what they are doing as the country is trying to have what is meant to be the first normal Christmas for some time.
The noble Lord, Lord Davies of Brixton, spoke at some length about pensions, which I know from previous exchanges he is very knowledgeable about. The Government implemented a number of pension scheme reforms in 2015. One area of reform was to make it easier to stay in work for longer and to return to work after taking pension payments by introducing late retirement factors and removing the abatement on re-employment. The Government already provide flexibility for those transferring into, out of and within the public sector—for example, through the ability of staff joining the public sector to transfer accrued pensions from private sector schemes into their public sector pension scheme, and the public sector transfer club for transfers within the public sector. On the transfer of smaller pension schemes, I will have to come back to him, but quite a lot is being done. As the noble Lord will know, I cannot bind ministerial colleagues, but he is right to say that the public service pensions are a crucial part of the total remuneration package for staff in the public services.
Finally, the noble Baroness, Lady Armstrong, asked about the Employment Bill. I believe that some of the measures on workers’ rights that she is probably concerned about, and that we pledged in the manifesto, are now being picked up in Private Members’ Bills starting in the other place, and they have passed their Second Reading. She smiles. So, some progress is being made. We agreed that flexibility can be powerful and important in public services. For example, I know that it is important in bringing older people into the workforce. I thank her for raising that point and for the opportunity to discuss progress on employment.
In closing, I again thank all noble Lords for their excellent contributions throughout this debate. We share the sentiments of the committee’s report and agree that the Government and the country face enormous challenges: an ageing population, climate change, recovering from Covid and the war in Ukraine. We can meet those challenges only if we continue to innovate, harness new technology, build and value a more skilled workforce, and always look to do things more efficiently. If we do this, I believe that we can deliver the services our people deserve. I am here to do all I can to make that happen.
(2 years ago)
Lords ChamberBain is not being paid anything at the moment, and I think that in the last year the figure was £2 million. I share the noble Lord’s view that we have to look carefully when we employ consultants to do work that can sometimes be done well within the Civil Service. At the same time, extra expertise is sometimes needed, especially on subjects as difficult as Brexit.
My Lords, I congratulate my noble friend on being persistent in raising this issue at every opportunity. Corruption at an international level needs international co-operation. While the Minister may say that there are no contracts with the federal Government of the United States, the company will certainly do contract work with states within the US. While she is not aware of any discussions with the US Government, can she reassure us that there will be such discussions so that we can tackle this cancer on the world, corruption?
I agree that the noble Lord, Lord Hain, has been a great campaigner on this issue and I thank the noble Lord, Lord Collins, for repeating that. It is very important that we fight corruption at every level, in every way we can. It erodes trust and undermines public confidence, and it does that internationally. I think we have a good record in recent years, under this Government, in raising corruption internationally. I come back to my point that individual countries have to take their own action on exclusion and debarment.
(2 years ago)
Lords ChamberI very much agree with the noble Lord, Ex-Prime Ministers still have a special position in public life and need to pay office and staff costs in support of that. Sometimes, things change. The arrangements referred to were extended to a colleague of the noble Lord, Lord Rennard, Sir Nick Clegg, who was Deputy Prime Minister from 2010 to 2015, a unique status at that time. He claimed £444,000 before he left to become a highly paid Silicon Valley executive and lobbyist.
My Lords, the Minister is right that there was a consensus on the introduction of this allowance, and no one disputes the need for it. However, she is also right that the Government should keep this under review, because after the retirements of the late Baroness Thatcher and Tony Blair, both long-serving Prime Ministers, we now have a situation where a Prime Minister has served the shortest period in history. Does that not indicate the need for a review and perhaps the introduction of a pro rata allowance?
(2 years ago)
Lords ChamberOn the point of sitting MPs, as I said yesterday, the sort of reports that have led to this debate are rumour and speculation. However, we will of course reflect on the debates we have and have had here—yesterday, today and tomorrow.
I would like the Minister to remind me when it was that Prime Minister Boris Johnson resigned. When was it? Then, we know that the speculation that has been talked about is about a resignation list, not an honours list and not nominations—we had nominations recently. That is the speculation. She keeps saying that the Prime Minister takes responsibility. Will Prime Minister Sunak admit responsibility for this list, and will he stop and make sure that he does not put His Majesty in this invidious position, because it will bring disgrace on the Government and disgrace on His Majesty?
It is a convention that has been observed by successive Governments that a resignation honours list can be put forward by a departing Prime Minister. It can take a bit of time: I think that Theresa May and John Major took a few months to put their resignation lists together. They are then forwarded to the Prime Minister of the day. The practice now is that the House of Lords Appointments Commission looks at proposals and makes recommendations, which are taken into account by the Prime Minister in the confidential advice that he offers the sovereign.
(2 years ago)
Lords ChamberThe attendance of the UK delegation—which includes the Prime Minister, the Foreign Secretary, the Environment Secretary, my noble friend Lord Goldsmith from our House, Graham Stuart MP, and, indeed, a former Prime Minister, Boris Johnson—shows the seriousness of this matter. To be fair, we have these big COPs, as we had in 2015 and as we were honoured to chair last year, and not all world leaders go to every COP every year. Of course, if action on climate change is going to work—for exactly the reasons that I have already articulated, in terms of there being no borders for greenhouse gas emissions—it is absolutely essential that China, India and other big emitters step up to the plate and deliver on what they have promised and, indeed, even more.
My Lords, the Minister mentioned Boris Johnson. What has happened to Britain’s global leadership since Glasgow? Boris Johnson said today that he is there in a purely supportive role, but he also said that Britain should not pay reparations for climate change. This was in complete contradiction to the Prime Minister’s announcement today that we should enter into discussions about this question. Can the Minister tell us what the Prime Minister needs to do to make sure that his words are credible?
I do not like the direction of that question. However, we have encouraged discussion on loss and damage. Obviously, the Labour Party has come out with a big initiative on reparations—which is not funded—and it is very important that we join in the discussion of loss and damage to try to find a joined-up way forward, with support from around the world. The whole problem about climate change, as I have said in the House so often, is that it is an international challenge as well as a domestic challenge.
(2 years, 8 months ago)
Lords ChamberMy Lords, I was sorry not to be able to speak at Second Reading. It is always a pleasure to follow the noble Lord, Lord Desai. Logic, clarity and lack of reciprocity call for Amendment 154, in the name of the noble Lord, Lord Green, to be taken seriously and for the questions he has raised to be answered. I look forward to hearing positively from my noble friend the Deputy Leader. I will not delay the House.
My Lords, I have some sympathy with the points made, but I wish this amendment could have been debated in the group of amendments we had on the entitlement to vote, because I do not really want to move away from the principle I articulated before. Not everyone wants to lose the status of their nationality. For example, my husband does not want to give up his Spanish citizenship, which he may have to do. A number of European countries have started to change but they did not allow dual nationality. A lot of people could lie about that, but he does not want to give it up. I certainly do not want to give up my nationality.
When we were in the EU, we were in the comfortable position of being, as we used to describe ourselves, EU citizens; we could locate and meet our families in our respective countries with ease. Now that has changed and we accept that, but I do not quite understand why we do not accept that there is a settled status, where someone has lived in the country for 27 years, paid tax, national insurance and everything else—they have taken the responsibility of a citizenship—but for one reason or another do not want to take formal citizenship, and why that should preclude them from having the right to vote.
It is crazy that, as I mentioned, an Australian student who comes over for their OE can immediately apply for the right to vote. I would rather the debate focused on what entitles somebody to vote. We have talked about taxation, we have talked about responsibility, and I say that clear levels of residence should establish some basic rights, so that we treat people who live here equally, and when they contribute to the success of our country we should acknowledge that.
I come back to what the noble Lord, Lord Green, said. One of the issues his amendment ought to probe and cause us to think about is: what is a British citizen? He says that British nationals (overseas) are not included. We can make commitments suddenly; for example, we made a commitment to Hong Kong citizens who are BNOs because of the breach of an international agreement. I have no doubt that in future, as we have done in the past, we will want to protect our legacy. The noble Lord, Lord Desai, spoke about the legacy of British Empire, which of course we cannot ignore, and things have changed.
I welcome the fact that the noble Lord, Lord Green, has tabled this amendment but we need to consider it in the light of all the amendments we have had on the right to vote and what the qualifications are. I do not think we should ignore residency.
I think the noble Lord is right; it is a bit of a puzzle. Of course, Lord Elgin and co were from a long time ago, before any of this legislation existed. Anyway, that is the advice that I have had—you do get these curiosities with human rights, which in general we support but sometimes create difficulties for us. Perhaps he would like to look at Hansard and see what I said, and I am sure we can discuss this further, if the noble Lord would find that helpful.
My Lords, this has been an incredibly positive debate. At the beginning, I said the purpose of my amendment was to be a probing amendment to generate a debate, and that is what we have done. It may have been a bit provocative and, as my noble friend pointed out, may have gone a little too far, but the point I was trying to emphasise is that we need to look at this issue as a whole and, understanding that we have a suite of measures already in existence, our focus needs to be strongly on enforcement and that this includes making sure that these things do not even leave the country of their origin.
Transparency is an incredibly important issue. What is this trade afraid of? The motor industry is described as a bit dodgy and is said to have wide boys in it. If I am buying a car, I need to understand who owned it—and not just the previous owner, but where it started from, because it is a matter of safety. The art industry needs to reflect on the debate that we have had today, if it is to retain what has been quite effective self-regulation.
The noble Lord, Lord Inglewood, referred to how the trade operates and said that if measures were disproportionate and we imposed X, Y and Z, we would simply displace it or it would move underground. I suspect that that goes on anyway, but we have a moral obligation and duty to ensure that we do not collude with those illegal activities. However, in the light of the Minister’s comments, I beg leave to withdraw the amendment.
Noble Lords have rightly emphasised today that we need to be transparent and open about the cultural protection fund. It is absolutely right that this House has the opportunity to understand how the fund is supporting the work of cultural heritage protection at risk of, or already damaged by, conflict.
We established the £30 million fund in response to acts of cultural destruction and damage. I am pleased to say that the fund is now live and open for applications. It is always difficult, even in normal times, to make budgetary promises but I can say that we are very committed to this area, and the noble Baroness, Lady Northover, made some important points. We also monitor and report on the fund throughout its operation to ensure that it is successfully meeting the object of protecting cultural heritage affected by damage and destruction. In line with these general objectives, the Government will publish an annual report. Alongside this, the spend will be scrutinised and published by the OECD—all the more important an institution now given the way that things are going—on a biennial basis.
If the fund has any direct relevance to today’s legislation, we will make sure that that is included in the report. For example, there is an obligation in the second protocol to take measures in peacetime to safeguard cultural property. This may include activity such as the preparation of inventories which could potentially be awarded funding.
The noble Baroness, Lady Northover, asked about the central team in London and made wider points. I will pass her points on to the British Council. She was kind enough to refer to the letter that I wrote to the noble Baroness, Lady Bonham-Carter. This covered some important points on Yemen, the cultural protection fund and its future, work with the British Council and the division of work on emergency response and long-term support. Given the lateness of the hour, I think the easiest thing I can do is to circulate copies to noble Lords so that they can see it, and make sure that a copy is in the Library of the House. I am grateful to the noble Baroness for cross-referencing that and delighted that it was found to be useful.
The noble Lord, Lord Howarth, asked about the British Council and its specialist assessors. I am sure he will be glad to know that it is currently collating a wide pool of specialist assessors who will be drawn upon to advise on specific projects. As well as this, sector experts will be drawn upon at intervals to sense check and advise on the general direction of the fund.
I see this cultural protection fund as a great opportunity. I think that it complements the Bill that we are putting forward. I hope that in the circumstances the noble Lord will feel able to withdraw this amendment.
I thank the noble Baroness for that response. I did not realise that the hour was so late, but never mind. I was particularly trying to stress the amplification of the £30 million by ensuring that there is cross-departmental co-ordination and work, not just with the British Council. There is a lot of activity in conflict-affected zones which would certainly complement the work of this fund. I appreciate what the Government have done in terms of its establishment and note the noble Baroness’s comments. In the light of that, I beg leave to withdraw the amendment.
My Lords, I thank the noble Baroness for repeating the response to the Urgent Question. As we have heard, the White Paper will be published tomorrow. However, the pre-briefing over the last few weeks has, in my opinion, been extremely unhelpful. It makes me wonder whether the strategy is to make it sound so awful that the not-so-bad outcome becomes acceptable.
The Secretary of State reassured my noble friend in the other place that the White Paper would pass the three key tests that many noble Lords in this House have set for the White Paper’s impact on the BBC: financial independence, editorial independence and maintaining programmes and services that inform, educate and entertain. I hope that the noble Baroness will reassure us that proper time will be set aside for a full debate in addition to the Statement tomorrow. But irrespective of the debate, what opportunity will Parliament have to challenge or remedy proposals if it finds that the White Paper fails to reassure noble Lords on independence?
Does the Minister think that government appointments to a new unitary board, which would have responsibility for editorial decision-making, would pass the test for the BBC’s independence? Also, organisations as big and as broad as the BBC need time to implement change and the independence to do so. Therefore, does the Minister really believe that it is in the interests of the viewing public to conduct a review every five years, which will inevitably mean the BBC focusing resources on that rather than on making popular programmes that we all enjoy? Does the Minister believe that the introduction of this five-year review will enhance or diminish the BBC’s independence?
My Lords, I also dislike pre-briefing. Of course, the last Labour Government did a lot of pre-briefing, and I think that perhaps changed the culture a little. However, I do not always believe what I read in the newspapers. We have to wait until tomorrow for the White Paper and the Statement, which we had planned. I very much look forward to answering some of the detailed questions tomorrow that the noble Lord has set out. What I will say is that proper time will be set aside for a full debate. That is important. Everybody in this House values the BBC and will want to have an input into the Government’s conclusions on all these points. Editorial independence is of course paramount, and I look forward to presenting the proposals tomorrow.
The noble Lord is quite right about the need for things to be joined up. That is why we have set up a group, curiously called the GIGS group—the government integrity group for sport—drawing from across Whitehall and from the key agencies, such as the Gambling Commission and UK Anti-Doping. We will be putting the governance code out to consultation so that the sort of issues that he has identified are properly thought through and dealt with.
My Lords, this week, we have the anti-corruption summit organised by the Prime Minister. Will the noble Baroness urge the Prime Minister to put this subject on the agenda, bearing in mind the news reports that we have read of government involvement in such corruption? Will she support the aim of funding a body that is independent of sports governing bodies?
My Lords, I can confirm that corruption in sport will be on the summit’s agenda this week. It is very important that international discussion should take place on this vital subject. UK Sport and Sport England are responsible for this whole area and draw on government money, which has to be properly accounted for. I am not convinced that the direction in which the noble Lord is going is the right one, although, as I said, we are looking at the whole area, including the question of criminal sanctions.
(8 years, 7 months ago)
Lords ChamberMy Lords, it is a pleasure to return to the Trade Union Bill, which I believe was much improved as a result of the expertise and attention to detail shown in this House. We have three groups before us today, on electronic balloting, trade union political fund opt-in and facility time, following changes made in the other place to the amendments made after votes here in the Lords.
We all agree that trade unions have an important role to play in the workplace. That includes helping to resolve workplace disputes without strikes, improving health and safety and encouraging skills development. We have already secured agreement in both Houses to the key aspects of this legislation, including ballot thresholds and mandates, reform of picketing and the Certification Officer. Following further discussions and debate in the other place, we are here today to consider the final elements of the Bill.
I turn first to electronic balloting. We have always been open to the principle but we have reservations, which I described in detail on Report, about its safety and security. I appreciate that some do not share my concerns and are satisfied that these issues can be easily resolved. That is why the noble Lord, Lord Kerslake, with widespread support across the House, proposed that an independent review be commissioned, after which e-balloting would be introduced. There have of course already been a number of reviews such as those by Electoral Reform Services, Webroots Democracy and the Speaker’s Commission on Digital Democracy. These have made encouraging comments about a move to electronic ballots but none has provided assurance on managing the risks. That is why we can see the merit in looking at the issues further and will be commissioning an independent review to do so.
The review will enable us to take a properly informed decision based on an assessment of the latest technology, made specifically in the context of electronic voting for industrial action ballots. It will take us closer to resolving the question of how both security and confidentiality can be preserved. This is important because it should enable us to get to the very heart of the matter. I am pleased that the Government have now agreed to accept your Lordships’ amendment for an independent review of e-balloting, with one important change: to replace the requirement to,
“consider the report and publish and lay before each House … a strategy for the rollout of secure electronic balloting”,
following the review, with a requirement for the Government to publish our response to the review. There is a simple and important reason for that change. We believe that the wording voted on in this House would prejudge the outcome of the review and irrevocably commit the Secretary of State to press ahead irrespective of the review’s findings. However, we have listened carefully to the strength of feeling in both Houses. We can see the merits of electronic voting being made available for industrial action ballots once the problems are addressed, and this review will enable us to make crucial progress. We already have the powers to introduce such ballots in Section 54 of the Employment Relations Act 2004.
The amendment before your Lordships today, supported by the other place, reflects the Government’s acceptance of the principle of electronic balloting while ensuring that we proceed prudently and on the basis of evidence. I beg to move.
My Lords, I thank the Minister; I appreciate that the Government have moved substantially on this issue since we last debated it. I will try to encourage her to be a little more positive, because the fact is that the Government have publicly declared in favour of a review, which is important. It is important that she reassure the House that all interested parties will be publicly consulted in that review and will have the opportunity to put their case and the evidence in an open and transparent way. I hope this will include not only balloting agencies but the trade unions themselves and the TUC, which obviously have a wealth of experience. It may even be an opportunity for the Conservative Party to explain how well it gets on with electronic balloting, which it has used in the past. I therefore hope that the Minister will be able to give that commitment that evidence will be taken across the board.
I also noted the comments by Nick Boles in the other place about the pilots running as part of the review. I hope the Minister will be able to give the independent review a freer hand that will enable it to say, “Well, yes, we have evidence, but we want to test it”. That is important, because whatever the review’s conclusions, it matters that people have confidence in it. That is why all noble Lords were committed to the idea of a trial or pilots—to ensure that the review could assess its effectiveness.
Of course, no balloting process is completely secure, as we know from our own parliamentary system. However, I am fairly confident that the balloting agencies will be able to ensure that there is a strong case. We must not forget the reasons for this. It is about ensuring democracy, and if the Government are genuinely concerned about the rate of participation in elections—or, primarily, in industrial action ballots, where the thresholds have been put in place—it is their duty to ensure that all measures are taken to maximise this. Views were expressed across the House that this independent review should take place as speedily as possible and that the Government should consider fully its conclusions. I note what the Minister says but I hope that once that review is published, the Government will give proper consideration to its conclusions.
(8 years, 7 months ago)
Lords ChamberI think the noble Lord, Lord Whitty, was seeking to make a parallel with the area of political donations, and I explained that this provision did not seem to have a parallel with the point that he was making. For that reason, I felt that we should leave the amendment as it is.
I appreciate the noble Baroness’s remarks, and I am going to repeat them, because I think the purpose of her amendment is undoubtedly to make things clearer. Certainly, defining the reporting mechanism in accordance with Section 72 of the 1992 Act is entirely appropriate. That is a good thing, and it is best practice. But this new subsection (2E) in the amendment—the “Lord Leigh amendment”—will not make things clear and will not make things transparent. It may have unintended consequences. There is no doubt but that all the expenditure of a trade union is properly accounted for. I will keep repeating that because there is a suggestion that if it is not reported to the CO or detailed in the AR21, the annual return, it is somehow not properly accounted for. It is properly accounted for, in the accounts.
As I say, when I went to the USDAW annual delegate conference in Blackpool, they went through the details and the sections of their report page by page and paragraph by paragraph, and questions were asked. The report gives a breakdown of the political expenditure. But the statute governing the nature of political expenditure is now being asked to cover non-political expenditure, as if that is somehow not accounted for somewhere else. This is a step too far and will lead to complications. With this detailed reporting, there is potentially a mismatch between the Electoral Commission’s information, which is published as the donations received by political parties, and the returns of the unions, which will talk about affiliation fees in separate years. There is the potential for some form of conflict there.
I accept that the original amendment addresses the concerns of the Select Committee, and totally accept that it is an attempt to make things clearer, but I am extremely disappointed that the Minister has included the amendment of the noble Lord, Lord Leigh, because it will just lead to further confusion. Bearing that in mind, I beg leave to withdraw my amendment.
(8 years, 9 months ago)
Lords ChamberMy Lords, I thank the noble Baroness, Lady Wheeler, for her clear, comprehensive and relatively succinct introduction to this enormous group. It is plain that the sense of the Committee is that there are concerns about Clause 14, for reasons that have been fully debated. However, we have looked carefully at the clause and the amendments, and I will try to explain our thinking in a clear and objective fashion.
It is important to note that check-off was introduced in a very different time when bank accounts were not common and workers were paid in cash. We are now in a modern era of online banking, where public sector workers’ wages are almost all paid directly into bank accounts and direct debit is the obvious alternative. The average consumer already has six direct debits. This is the direction of travel, as my noble friend Lord Leigh said. An advantage of moving to direct debit is that a union and its members will have a direct subscription relationship without any need for a public sector employer to be an intermediary.
It is, of course, about the public sector that we are talking, to respond to my noble friend Lord Forsyth. If we were designing a union membership payment method today from scratch, no one would choose to put the employer as an intermediary in the subscription relationship between a union and its members.
I suspect that if it was starting now, rather than 100 years ago, things would be different because of the direction of travel.
I think we have set out clearly in our impact assessment and elsewhere the way things are going. There is clear evidence that there has been a big move to direct debits, internet banking et cetera. I do not think anyone could dispute that. As a former employer in the private sector, I was thinking that if one was setting out on this today, one would not necessarily do it in the same way.
I shall give the Minister a simple fact. She talked about Tesco. She was part of a partnership arrangement. Can she tell me how old that arrangement is and how important payroll deduction is to it? In my memory, it is relatively recent.
I think check-off existed for a number of years at Tesco, long before I arrived. We had the partnership agreement to which the noble Lord refers in the late 1990s, and I was involved in that. Check-off is part of the arrangements. In the Bill, we are not seeking to regulate the private sector; we are talking about the public sector, and there is a cost which is set out.
I have already sought to answer this question. Deductions for things such as pensions, childcare vouchers, Cycle to Work and all the other things that have been mentioned have tax or national insurance implications so it makes sense for them to be made through payroll. The collection of union subscriptions should be the concern of trade unions rather than of tax-funded employers. That is the difference.
It is a long time ago for me but I remember that part, if not all, of the subscription for craft unions in particular was treated for tax purposes and was declarable in terms of being alleviated—professional fees as part of a trade union subscription. Where that applies in the public sector, will it no longer apply?
(8 years, 9 months ago)
Lords ChamberMy Lords, the sore throat that I have been keeping at bay all week overwhelmed me earlier so I apologise to the House. I thank the noble Baroness, Lady Donaghy, for what I think I should call solidarity because she presented me with some Fisherman’s Friends so that I can get through the rest of today. I also congratulate my noble friend Lord Courtown on his interesting contribution to the Committee’s proceedings, and all noble Lords who have spoken in this important debate.
In our manifesto, we said that we would reform the role of the Certification Officer and we are doing just that with, it is fair to say, a great deal of scrutiny in this House. The Certification Officer has responsibility to consider complaints relating to important union processes. It is vital that we have confidence that those processes are conducted properly. For example, the Certification Officer can consider complaints in relation to union leadership elections, union mergers or the accuracy of trade union membership registers—which matter a lot if there is a ballot—or to ensuring the removal from a union office of a person who has been convicted of certain financial offences.
I would argue that there is a legitimate public interest in trade unions running their affairs according to what is required of them. It is not always the case that union members will know their union’s regulatory duties. That is why a responsive and diligent regulator is necessary. I hope that is agreed.
If I may interrupt, it is a shame that the noble Lord, Lord Forsyth, is not here because it is important to remember that the reforms of the 1980s, if I am to believe him, were about ensuring that trade unions were representative of and controlled by their members. That is what those reforms were about. I am happy to place it on record that I do not want to see us ever go back on some of those laws. It is a real shame that the Minister is confusing those obligations of a free association, which are to be guaranteed, and then saying that there are other interests which need to be regulated. Can we not go back to what Margaret Thatcher said and ensure that we have free and fair trade unions, controlled by their members?
My Lords, I do not think that I have a great deal to add on that point now but I have some observations which, with the noble Lord’s agreement, I will move on to. Before doing so, I will comment on the question which the noble Baroness, Lady Donaghy, rightly asked about whether we got the impact assessment wrong. My understanding is that it was not a mistake. The point is that the public in general have an interest in good regulation—in employers, in employees, in families and in the wider public. That is perhaps what we should have said. We are scrutinising this but I am not seeking to change the impact assessment, which has obviously been looked at carefully in the usual way.
Of course the provisions in the Bill have to be proportionate and give effective regulation. As I see it, we are bringing the current powers of the Certification Officer up to date with the accepted normal situation in other sectors. I shall leave the financial services sector on one side, because I want to get through the debate this evening, but perhaps I could give some other examples. There is the Information Commissioner’s Office and the Groceries Code Adjudicator, which has been mentioned. The Charity Commission, the Electoral Commission, the Gambling Commission, Ofcom, the Food Standards Agency, the Environment Agency, Natural England, and Ofwat—it is a long list—can all consider representations from third parties and undertake investigations if appropriate.
I am not sure whether I agree with the noble Lords, Lord Mendelsohn and Lord Oates, on the subject of the costs. The Certification Officer has given views on the potential costs necessary to undertake the new regulatory function and I understand that his comments were consistent with the estimates we have set out in the Bill’s impact assessment. I think he said, rightly in my view, “I do not want to employ rafts of people only for them to be underused. I want to see what happens and increase numbers as appropriate”. My understanding is that we agree that the annual cost will be around £2 million. However, to respond to the point made by the noble Lord, Lord Oates, although I can confirm that the Certification Officer was not consulted before the Bill entered Parliament, we have engaged with him and will continue to do so as we move towards implementing the reform. As the noble Lord, Lord Stoneham, suggested, we want to continue a tradition of good compliance.
My Lords, I thank the noble Baroness, Lady Donaghy, for her commendable honesty. I will seek to provide some reassurance on this, which is essentially a technical discussion. I think that there is a reasonable explanation; let us see how it goes.
In the current legislation a union member—so it is a member—can apply to the court to ensure that a union complies with an order of the Certification Officer. That is a long-standing provision of the current legislation, which we heard about. However, to reflect the Certification Officer’s investigation powers we thought it would be helpful when drafting the legislation to remove any doubt that his own orders may also be enforced, as an order of the court, by the Certification Officer. In doing so, the drafting of the Bill reiterates the existing rights of the applicant member and other members mentioned in relevant sections of the current legislation. The words in Clause 17 that the noble Baroness seeks to amend simply refer to those existing provisions. I do not have any examples, but I will see whether we can find one. The main example is that that is existing practice, but I will look at other regulators and add it to my letter.
I am sure that noble Lords would agree that, if the Certification Officer had found that a union was not compliant with its obligations and it did not rectify the situation, it must be right that a union member should continue to be able to take action to protect their interests.
I hope that that provides some reassurance and that the noble Baroness will feel able to withdraw the amendment.
I need clarity on this. Currently, where the Certification Officer publishes a decision and an enforcement order, the member can go to a court; having been before the CO on many occasions I am aware of the process. Is the noble Baroness saying that the CO will now be able to see enforcement through the courts on his own?
My Lords, my understanding is that the orders of Certification Officers are already enforceable as an order of the court under the 1992 Act, so we are just continuing that position.
I do not know the answer this evening. I am not sure I am going to give way on this point. We are setting up a modern regulator and a modern regulator needs appropriate penalties. We can argue about the exact detail of the penalties and I am going to come on to say something of a listening kind.
The range of the penalties that we propose mirrors that available to bodies that I see some parallel with, such as the Electoral Commission, which has a maximum of £20,000 in relation to the civil penalties that it can impose; I think it does criminal penalties as well. The national minimum wage regime also provides for penalties of up to £20,000 per worker. Our general approach is that a strong civil sanctions regime is an effective way of ensuring rapid compliance. That is why we do not think that the amendment, which seeks to reduce the fine to £5,000, would be sufficient.
We want to get this right. As the noble Lord, Lord Dykes, said, we are trying to listen during Committee. Obviously, we will consider and reflect on the debate in the House before bringing forward further details, particularly of the application of these penalties and how they would work. I ask the noble Lord to withdraw the amendment.
My Lords, there have been a number of pieces of trade union legislation over the years and this is the latest iteration. It seeks to bring forward some sensible reforms which are mainly about transparency and obviously reflect manifesto commitments that were voted on last year. These amendments seek to reduce the categories of expenditure that count as political objects which should be made through a political fund. They are long-established categories in the legislation and I am not aware that they have proved problematic. The amendments would reduce the current level of accountability and transparency, and union members would no longer have a say over those areas removed by these amendments at the time of the political fund ballot.
I do not understand that point. One of the things that gets omitted in our debates about political funds is that trade unions are democratic organisations. They have rule books and they have democratic structures, right from the shop floor, all the way up. Decisions are made in an accountable way, so to suggest that there are somehow hidden processes ignores that. If the noble Baroness wants me to reiterate, unions have rule books that govern the relationship, not laws. If they were laws, we would be back in the days of the Soviet Union. They are independent, free and democratic unions that have rule books.
As it happens, we also have a Certification Officer who oversees those rule books, and if they are not complied with, members have the opportunity to challenge any decision. The noble Baroness is saying that decisions are somehow not transparent. What is not transparent in a democratic organisation like a trade union?
I am grateful to the noble Lord. I have given some examples today, and we have done so in the past where the good practice in transparency that is found in some unions is not practised elsewhere. This provision, along with others in the Bill, seeks to address that using, as the noble Lord acknowledges, the existing regulator in the form of the Certification Officer to make sure that individual members always know what they are opting in to and what political funds are being spent on, because we think that that is the right thing to do.
I think that I have responded to the amendments, and I urge—
I return to the question that the noble Lord, Lord Oates, raised. People have been quite understanding about the purpose of these amendments because they are trying to generate a debate, but there is a specific question about voter registration—not about how you vote or who you vote for, but specifically about how, in civil society, we encourage people to register to vote. We have heard that that is covered; the Minister says that it is. I plead with her to consider that organisations such as trade unions have a duty to encourage their members to participate in the political life of this country. Will she please consider that specific element?
There is nothing to prevent any trade union encouraging its members to register to vote. It is not the job of the trade union movement to put itself in a position where it becomes the voter registration officer for the rest of the country. Even without a political fund, a union can encourage its members to vote and to register.
My Lords, to sum up, our provisions will not impact on what unions decide to spend money on or the causes they choose to support. We are introducing transparency, and it seems to me absolutely right to try. A series of amendments is linked to this point, trying to take things out. However, we are trying to ensure, on the existing basis, that people know what is being spent and have the opportunity to opt out.
I thank the noble Baroness for her comments. The debate has been worth while and I am glad that we tabled the amendments. They were designed to probe, to provoke and to get a better understanding of what the Bill could possibly lead to. As the noble Lord, Lord Stoneham, said, the amendments would not be here if the Government were not proposing to change the system of opt-out to opt-in, which we, most unions, most independent observers, and even some noble Lords on the Minister’s Benches believe will impact on the total funds available for political purposes. We have a Select Committee looking at that impact and it will reach a conclusion, but the one thing I am pretty certain about is that that change will have an impact.
The purpose of the amendments was to focus on the areas of political funding that people do not normally consider. The amendments would not be here if not for the potential impact on the total funds available. This is about more than simply supporting political parties. It is about the role of trade unions in civil society. As my noble friend Lord Morris suggested, it is about challenging ideas and ideologies that are incredibly dangerous to our democracy. It is about supporting and encouraging people to participate in the political process. It is important in getting people to do the basic thing in terms of voter registration.
I appreciate the comments of the noble Lord, Lord Mawhinney. On my part, kind comments are always appreciated. I accept that proposed new subsection (1A)(c) is a difficult proposition, particularly when, in the past, we have had two parties contesting seats, so saying do not vote for one is an obvious implication to vote for somebody else. I tabled the amendment to highlight the work that unions do, not simply in encouraging people to vote but also to challenge ideologies, particularly those far-right ideologies that lead to racism and splits in our communities. The trade union movement has been critical in binding communities together. The noble Lord will know of the role that trade unions have played in the peace process in Northern Ireland in trying to bridge communities and bring them together. A lot of that obviously involved political work. We shall shortly discuss transparency on another group of amendments, so I will have an opportunity to focus on those areas.
As I say, this has been a worthwhile debate which has provoked contributions. I hope that before Report the Minister will think hard about the proposals, particularly as regards encouraging people to register to vote. This is not about being partisan but about encouraging people to register to vote. In the light of those comments, I beg leave to withdraw the amendment.
(8 years, 9 months ago)
Lords ChamberMy Lords, the duty is of course on local authorities, but the noble Lord is right: the Secretary of State has a statutory power to intervene when an authority fails to provide the required service. Complaints that a local authority may be failing are considered very carefully by my department, case by case. The closure of a library branch, or branches, is not necessarily a breach of the 1964 Act—but of course we keep this under very careful scrutiny, as he knows, and publish a report on libraries every year, which is very important.
The fact is that that statutory duty requires the Minister to intervene. In fact, Ed Vaizey said that central government can and will intervene if a council is “planning dramatic cuts”. Of course, many councils are finding themselves in incredibly difficult situations. How many councils have the Government actually intervened on, and to what effect? How many have they actually called in to see whether they are meeting the statutory responsibility? This is an issue that this Government cannot duck.
My Lords, we take our responsibilities seriously. The department is engaged with a number of libraries. I have an annexe, which I am very happy to share with the noble Lord, setting out some of the different actions we have taken in respect of particular areas, including Lancashire. Of course, we want councils to do the right thing because this is rightly a matter for local people.
(8 years, 9 months ago)
Lords ChamberAs is so often the case, the noble Lord makes a good point. Perhaps he will give me a minute. I wanted to say that we will not be discussing Clause 11 until another day, but it provides for the transparency of expenditure and information that members need to make a sound decision. I am clear that these changes are proportionate and for the benefit of individual members. They are not aimed at what unions decide to spend their money on but provide a transparent choice for individual members.
I now turn, for the benefit of the noble Lord, Lord Stoneham, to Amendments 57 and 64 on giving notice via electronic means. I recognise the arguments that have been made in favour of electronic means of communication and have acknowledged in the Bill’s impact assessment that there are extra costs for unions in communicating with their members. I can see that moving to an electronic means of communication would help reduce the burden of postage costs for both unions and members, but particularly for unions at a time when they are going to have to contact members to make an active opt-in to the political fund.
We have been talking about whether members should get information through the website. Has any analysis been done of how people join unions nowadays? Certainly, when I looked at this, at least 60%, and possibly more, of the members of the biggest unions were joining online—so the process of being aware of the current position on opting out is better effected online. Has the noble Baroness made any analysis of how people are joining and staying in unions?
The noble Lord makes an interesting point. I have said that we are in favour of looking at electronic means of communication and I will take that point into account in the further work that we are doing. I do not know what we have done so far.
The noble Baroness, Lady Smith, has proposed that the implementation of Clauses 10 and 11 should be delayed, and she looked at this in two different ways. Amendment 66 would in effect change the transitional provisions in Clause 10 for members to sign up to the new opt-in system from three months to five years. This would mean that the current arrangement whereby union members have not made an active decision to opt in, and indeed may not know what they are contributing to or even whether their contribution will remain in place, was absurd. To be clear, the three months relates to the time that an individual member has to opt in, and the general commencement of these clauses is a separate matter. There are two different things happening here: the three-month period and the commencement of the provisions. We will give this matter proper consideration. We will listen and reflect further on the points that have been made.
Amendments 123 and 124 are similarly intended to delay implementation. Whereas Amendment 66 would introduce a delay by lengthening the transition arrangements, these amendments seek to delay commencement of the provisions for five years.
On the substance, noble Lords will not be surprised to hear that I do not agree that we should delay implementation of the transparent opt-in provisions for five years, by whatever means. Having said that, I recognise that there is a lot of angst about the lack of necessary preparatory time for unions to implement the new arrangements. We do not want to make the system unworkable by rushing it, and I will reflect further on the two approaches to the issue of timing that have been put forward this evening.
In response to the point made by the noble Lord, Lord Stoneham, about the system of reducing contributions, it is up to individual members whether to contribute to a political fund.
Finally—as it is getting late—there are some amendments in relation to opt-in renewal dates on which I will write to noble Lords. They seem straightforward and I do not want to delay the Committee any longer. However, I should comment on one issue. It has been proposed that the new opt-in arrangements should apply only to new members. However, that would exclude very large numbers of trade union members from the purview of these clauses. It is important that all members have a choice about whether or not to contribute to a political fund.
I asked this question and it is the subject of one of my amendments. It would help if the Minister, perhaps before she comes back more formally, could consult unions on how people join nowadays and what the turnover is. This process could be managed through new members, possibly within a relatively short timeframe. So before the Minister reaches a final conclusion, I urge her to consult unions on this particular issue.
My Lords, my mind is not closed to logistic arrangements that would make these provisions workable; that would be ridiculous. But I did not want to leave the House with the idea that, somehow, just new employees, as it were, would come into the system. We feel that that would not quite hit the mark. However, of course I will look at the process and how it is working in reflecting on this issue before we return to it at Report.
We have had a good, long and late debate. We will reflect further in the way that I have indicated but, in the mean time, I ask the noble Baroness to withdraw this amendment.
(8 years, 9 months ago)
Lords ChamberMy Lords, I am afraid I do not agree with the noble Lord. Having the necessary information on the ballot paper is important. You cannot always rely on the press to give you all the information you need to know.
The Minister has referred to a specific case. One of the problems with the impact assessment is that it does not detail what the impact of these proposals will be, particularly in the private sector. The problem with the measures being proposed is that they seem to stem from specific actions in the public sector. But if she does take the British Airways situation, has she assessed what the unintended consequences could be of a union specifying such things in the ballot? She has failed to mention that in the private sector the vast majority of industrial action ballots result in speedy negotiations and a speedy settlement. The problem with putting this information on the ballot paper is that it becomes so specific and public before those speedy negotiations can take place.
I wonder what British Airways would think of the Minister’s proposal that Unite puts on an industrial action ballot, “We will close British Airways down over Christmas”. I wonder what British Airways would say to the Minister—because I know what it would think. Even before the result of the ballot is known and even before there is any suggestion of industrial action, most people will be cancelling their bookings, costing British Airways a substantial sum of money. Is that what she is proposing?
I think that the noble Lord makes the argument for the Bill: trying to bring in a greater degree of clarity. I have given an example, which I think is a good one. Perhaps I might proceed.
The approach proposed in Amendment 27, which puzzled the noble Lord, Lord Pannick, requires agreement with the employer and could result in too much time and effort being spent on trying to agree the wording on the voting paper, instead of trying to resolve the dispute. I think that this is common ground. Trade unions will generally want to maximise the possibility of achieving the proposed thresholds and to have clarity and certainty about who is entitled to vote, which is the subject of Amendments 29 and 30. I reassure noble Lords that the law already protects trade unions against challenge over insignificant breaches of the balloting rules.
For example, many of the provisions in the Trade Union and Labour Relations (Consolidation) Act 1992 on balloting are subject to a “reasonableness” requirement. A union cannot be held to account for trifling errors when it conducts a ballot. Sections 226A and 234A require that the lists and figures supplied in the ballot and strike notices must be,
“as accurate as is reasonably practicable in the light of the information in the possession of the union at the time when it complies”.
Section 227 confers entitlement to vote,
“to all the members … who it is reasonable at the time of the ballot for the union to believe will be induced”,
to strike.
In addition, Section 232B provides that a union still complies with the requirements on balloting, even if it has made some error in the process, if,
“the failure is accidental and on a scale which is unlikely to affect the result”.
There is also the case of RMT v Serco, which established the margin of error on which trade unions can rely, thereby adding clarity and certainty around the statutory reasonableness requirement. All of this means that the obligations are not intended to be unduly onerous for unions.
Amendments 29 and 30 in the name of the noble Lord, Lord Stoneham, go further by allowing the union to import a “reasonable belief” into what is a trade dispute, so removing the current objective test to determine whether a matter constitutes a trade dispute. This would allow the issue to be opened up to uncertainty, according to what the union believed.
Amendment 31 addresses concerns about unions complying with the requirements to ballot those who are entitled to vote. I draw noble Lords’ attention to the fact that, in future, unions will have more certainty that those who are entitled to vote receive a postal ballot paper. This is because the previous Government introduced a requirement for unions to submit membership audit certificates. This enables unions to demonstrate that they are complying with their duty to keep membership records accurate and up-to-date.
Amendment 32 is duplicative. Section 231 of the 1992 Act already states:
“As soon as is reasonably practicable after the holding of the ballot, the trade union shall take such steps as are reasonably necessary to ensure that all persons entitled to vote”,
are told the result of the ballot. Members and employers will therefore know the number of votes cast and the numbers of individuals answering yes and no. It would not be fair to leave them to work out whether the thresholds were met, especially as the union will have calculated the result in order to know whether it has secured a mandate.
On Clause 6, I agree that it is not sensible under this amendment to go into too much detail on the Certification Officer, since we shall come to that on day 4. But this clause is important because timely provision of good quality information is a key component of ensuring effective regulation and it gives confidence to those affected by disputes. The need to provide such confidence is why annual returns—
We will come back to that. In the mean time, I will deal with a different point. I have a serious concern about removing the notice and instead relying on the indicated period from the voting paper, as suggested in Amendment 34. An indication is a much vaguer concept. People must have notice of the days when industrial action will take place, or they cannot make the contingency plans that we have been discussing. These can, of course, help to reduce costs on both sides.
The noble Lord, Lord Callanan, most eloquently made the point that strikes can have a wider effect and cause a huge amount of disruption—not only for businesses but for the public. The public need an appropriate amount of time to make contingency arrangements. My concern is that the noble Baroness’s amendment does not address this. Nevertheless, the noble Baroness has made some good and interesting points, on which I would like to reflect.
Finally, to return to the question asked by the noble Lord, Lord Stoneham, on whether a specific date on the voting paper would constitute notice, our answer is no.
Could the Minister give me a specific answer about the issue of contingency plans? The impact assessment talks about agency workers. If she is going to reassure the Committee that there is no intention to bring forward amendments or provide for secondary legislation, I shall be very happy.
My Lords, I should like to look into that and revert, either under a later amendment or in writing, on the point that has been raised.
My Lords, we have discussed at length the problems that are caused by old ballot mandates. For public credibility we must move away from having an indefinite period, with or without the agreement of the employer. As an example, the NASUWT took industrial action on 17 October 2013 based on a mandate secured in November 2011, almost two years earlier. The PCS held a strike on 15 October 2014 based on a mandate from March 2013.
My noble friend Lord Deben made the important point about the three sets of people affected. He rightly emphasised the customer—the passenger, in my first example—and the public, who are affected as a result of disruption on an out-of-date mandate. That is why Clause 8 specifies that a ballot mandate must have an expiry date. This means that there will no longer be a prolonged period of uncertainty. That will benefit everyone.
In deciding how long a mandate should last, we have sought to provide a balance. On the one hand we have removed the uncertainty that can hang over employers’ heads for years. On the other hand we have provided a reasonable amount of time for constructive negotiations. The question then is what period would be appropriate to deliver that balance.
We have proposed four months. I have listened carefully and with great interest to the arguments put forward by noble Lords on all sides of the House. I have heard some good arguments for a period of longer than four months. Some are resistant to that. Nevertheless I remain concerned that a period of 12 months would tip the balance far too far in favour of unions, to the detriment of others. That would mean that employers would still have the threat of a strike hanging over them for a considerable length of time. That does not help to create a stable and certain environment for business. Nor is it good for union members. They need certainty about the period during which they may be asked to take industrial action, particularly given the consequential effect on their pay and their families.
Another important point on which my noble friend Lord Deben also touched is that people’s views about a dispute can change over time. It is only right that the union checks back with its members to see whether they still support the industrial action. This is why I have a concern about Amendments 38 and 39. They suggest that the union and employer could agree between themselves to extend the mandate, either indefinitely or for, say, three months, without reballoting members to see whether they agree. My noble and learned friend Lord Mackay commented on this. Such a rolling and continuing mandate would also affect the wider public, and we should think about that in the balance as well.
Finally, in relation to Amendment 36, I am pleased to assure the House that it is not necessary to make it clear that the four-month time period begins on the last day of voting. The date of the ballot is already defined in Section 246 of the 1992 Act as the last day of voting in the ballot.
The noble Lord, Lord Collins, asked why we should remove the 28-day initial action period. It is no longer necessary—I think that he came to this conclusion himself—because the ballot mandate will be limited to four months and this will increase the time available for dialogue so that strike action is averted where possible. We want strikes to be a matter of last resort. I hope that I have understood his point correctly.
Just for clarity, the purpose of the 28 days is to ensure—whatever the rights and wrongs—that industrial action ballots are a matter of last resort. My point was that industrial action ballots, as the noble and learned Lord noted, themselves become the leverage. They strengthen the union’s position. Unions were quite quick to learn that the bad old days did not produce results. The reforms—and I shall call them reforms—ensured that mandates were far more secure. They have more authority and are, therefore, far more effective. My problem with the proposition in this clause is that they become a regular thing. By removing the 28 days, they are no longer the precursor to industrial action, while inserting every four months leads to the situation where unions will have to get their members to vote for the mandate not just at the end of four months but clearly before that. This will prolong the uncertainty and make matters worse.
I come back to the point that this is about how we support two sides in negotiations. I am not ignoring the impact of disputes, but at the end of the day what will stop a dispute is the two sides reaching an agreement. The current situation is far better, and I fear that the proposals in this clause will potentially lead to uncertainty for a much longer period. The noble and learned Lord made the extremely good point that the strike ballot mandate can become an important element in reaching an agreement. Is it not then appropriate and sensible that the two sides, instead of being forced to come apart again and ballot, can agree mutually to extend that period so that the focus is on negotiations rather than on a strike?
I thank the noble Lord for his measured response. I agree with the point that was made about trade unions doing good things. It was good to see the noble Lord, Lord Jordan, joining the debate and reminding us of all the workers who never go on strike and to hear the noble Lord, Lord Stoddart, talking about the importance of consultation. We discussed some of the positives about unions in our very good curtain-raising debate last November, which I certainly found extremely useful for getting me into the subject.
We still need to tackle the question of out-of-date ballots, however, which can lead to industrial action long after people have made up their minds. That is a problem we are seeking to address in this legislation and in this clause. However, this has been an important debate this evening, and I would like to take some time to reflect on the points that have been made. The length of the mandate and extension by agreement seem to be the two things that have come through in the discussion.
It is important, before we come back to these issues, to note that when we make legislation, it should be evidence-based. I know that we have these four cases that are often quoted, and the impact assessment, but has the Minister’s department properly examined what goes on in the private sector? Is there a difference between the private sector and the public sector? What is the norm for industrial action ballots? I think the vast majority of industrial action ballots in the private sector result in negotiations without industrial action. If that is the case, could the department do a proper assessment? The unintended consequence of this measure could be that the process of negotiations is interrupted, to have a strike ballot to ensure that the negotiations continue. Strike ballots are not a neutral process: they are about members winding themselves up and saying, “We have a strong case and we’re going to resist it”. The constant referral to a strike ballot will, in my opinion, harden views not soften them. It will not aid negotiations.
My Lords, I have listened to what has been said and, as your Lordships know, have already wound up. We have some information on what has happened in the private sector and I am very happy to have a conversation with the noble Lord before we get to the next stage. We also have some very good examples, mainly in the public sector, as the noble Lord says, where these out-of-date strike ballots have been enormously damaging. That remains the case, but of course we can talk further. My door is always open, as I have said so many times.
I assume the Minister is asking me to withdraw my amendment, but I repeat that this is an issue we will have to come back to. As we have heard in this debate, there is a consensus across the board, from all sides, that we have to be careful here not to hinder the process of negotiation. We need to ensure that it is supported. However, in the light of the assurances about having further discussions, I beg leave to withdraw my amendment.
I note what the noble Lord says. In a sense, I think he is making the same point as the noble Lord, Lord Stoneham, made with his third question about why the code is not adequate. Examples from the Carr review and elsewhere, which I went through earlier, reveal that the code is not always followed. By putting elements of the code on a statutory footing in the Bill we will ensure consistency across all picketing activity, which will improve union accountability and public confidence.
The noble Lord, Lord Collins, mentioned human rights. I think the allegation is that the legal obligation to appoint a picket supervisor and to show credentials to the police is discriminatory. Unfortunately, as the Carr review heard last year, there is concerning evidence that pickets organised by unions can and do lead to unacceptable levels of intimidation. In the circumstances, the Government consider it important that unions take all the steps they reasonably can to co-operate with police and ensure that pickets pass off peacefully. These provisions are not disproportionate and are justified under Article 11 and the ILO conventions. Rather than delay the Committee on this issue, I should say that following the debate at Second Reading I wrote to the chairman of the EHRC on the various human rights aspects of the Bill.
Amendment 42 limits the provisions of Clause 9 only to picketing that is directly organised by the union and will create unhelpful distinctions between union-organised picketing and picketing that is encouraged by the union. It would lead to unnecessary confusion between what will be perceived as different types of picketing. The law should apply to all picketing.
On Amendment 45, the Bill sets out a number of requirements which, combined, make the provisions in Clause 9 work effectively. The key to achieving this is the appointment of the picket supervisor, who needs to be familiar with the code so that he or she can act as a source of knowledge and advice.
This returns to the point about reasonable people. How will the requirement that the person be familiar with the code be tested? What knowledge is required? As my noble friend said, the person may think seven people rather than six is reasonable. What will the person be judged on there?
That is a good question, but my understanding is that provisions relating to familiarity are not new. They have been in the code of practice on picketing since 1992. Familiarity with the code is not an onerous requirement; it is a necessity for the person who is going about their business.
I turn to interaction with the police. It is important that the police know who the picket supervisor is, how to contact him or her and where the picket is taking place. The supervisor does not have to be on the picket line all the time, provided they can return at short notice. It provides an extra safeguard where the police will be able to contact the supervisor should an issue arise on the picket line that does not require police intervention but would benefit from the picket supervisor’s advice.
The advance notice of such details, in particular the location of the picketing, should help the police to plan their resources in the event that something happens on the picket line which requires their attention. The provision to inform the police reflects the language of the code, which has not given cause for concern. The police are, of course, bound by the Data Protection Act and any complaints about the mishandling of personal data can be brought before the independent Police Complaints Commissioner and/or the Information Commissioner. I am not aware of any complaints of this nature related to picketing.
I move on to Amendments 48 and 49 and the letter of approval. As the noble Lord, Lord Collins, said, this has been the cause of significant misunderstanding and concern. We have listened and made amendments. There is now no requirement for any of the picket supervisor’s personal details to be in the letter. Following consultation, the Government tabled an amendment so that the letter seeks only to approve the picketing activity. We further fine-tuned Clause 9 to clarify that only the employer to which the trade dispute relates and at whose workplace picketing occurs will be entitled to see this letter.
I fear that removing this requirement for a letter would result in confusion on the picket line about whether the union has endorsed the picketing and appointed a picket supervisor. I am not sure whether that was the intention, but the substituted wording in Amendment 49 removes the words,
“as soon as reasonably practicable”,
and would make the provision to see the letter more onerous.
On Amendments 51 and 52, the appointed picket supervisor will be the main point of contact during picketing and will act as a source of knowledge so that picketing remains peaceful. That is in everyone’s interest.
Finally, I come to the matter brought forward in the other place by the honourable member for Haltemprice and Howden. The media portrayal of this issue of armbands has been frankly mischievous. The key part is that the picket supervisor must be identifiable. The reference to an armband already sits in the code and is, of course, an indicative example. There are other ways of being identifiable, for example, wearing a badge or having blue hair. However, it is clear that there are concerns. I will therefore reflect further on this matter before Report.
Clause 9 seeks to tackle the intimidation of non-striking workers in a fair and proportionate way. It will result in picketing that is peaceful and consistent in the way it is conducted. I therefore ask the noble Lord to withdraw the amendment.
My Lords, I propose that we adjourn and that I answer the questions that have been raised by the noble Lords, Lord Collins and Lord Stoneham, when we discuss the amendment after next.
Okay. In the light of those comments, I will withdraw the amendment, as long as I can then interrupt the Minister in the next group.
My Lords, the ability of union members to strike is an important part of our industrial relations system. As the noble Baroness, Lady Burt of Solihull, rightly reminded us, today we are also debating the clause stand part. Let me start by explaining that the objective of Clause 3 is to require strike action in important public services, if it has to take place, to secure a stronger democratic mandate. We must consider the interests of the wider public, as well as those of non-striking workers and employers, alongside the rights of union members. It is a sensible and proportionate reform and, as has been said, the thresholds we are talking about are in our manifesto. The impact of strike action is most severe when it takes place in the important public services that people and businesses rely upon every day, particularly services that are effectively monopolies, leaving people with no alternatives if strikes take place. This is particularly unfair when strike action goes ahead without strong support by a unionised workforce. This is a very different situation from my own positive experience—
The Minister used the term “monopolies”. Is that true of London bus drivers? Do they have a monopoly? There are alternatives in London. There are also alternatives between buses in London; there is not necessarily just one route. So why London bus drivers?
Yet the argument is made that ticket offices are not needed any more; they are closing them and Transport for London is going to propose that a number of stations will not be staffed. I hope that the Government will tell Transport for London that it is damaging people’s confidence in a public service and therefore it must keep the ticket offices there.
I think we all feel that the plight and the needs of the disabled and elderly are important, but I was trying to explain the logic on this occasion. The fact that people in ticket offices are helping disabled and vulnerable people is actually a big positive.
There was some discussion about why London buses but not rural buses are included. During the recent strike of 2015, TfL achieved a partial service, but this resulted in 7.5 million fewer journeys. Workers on low incomes rely disproportionately on the bus service in London; around 40% of people using buses are on concessionary fares and some 50% of bus passengers have an annual household income below £20,000. In contrast, there is limited evidence of the impact of strike action on local bus services outside London and on the sorts of users who rely on these services.
Finally, in the Border Force we are addressing the significant risks to public safety in the event of disruption to border controls. We have focused on services in respect of the entry and exit of people and goods, as these are central to the carrying out of checks and to preventing illicit commodities, such as unlicensed drugs and munitions, entering the country.
The noble Lord, Lord Collins, asked about progress on nuclear decommissioning and when our findings will be announced. The sector, as he knows, is a complex, heavy-industry sector with interdependencies between the workforces within and between sites. The Government are working to better understand these interdependencies and the implications of forthcoming business changes, and to support workforce reform plans, before bringing forward regulations to apply the threshold in this sector. Any regulations will be subject to the affirmative procedure.
My noble friend has kindly made the point that I was about to make about the noble Lord, Lord Pannick. Perhaps I should say finally that we do not want confusion and conflation of the two terms. In any event, the supervisory bodies of the ILO fulfil an informal advisory role and their decisions are not legally binding on the UK.
I turn to Amendment 18, which proposes that the Government will have only one chance to make subordinate legislation on the services to be covered by the 40% threshold, which I think is what the noble Lord, Lord Stoneham, explained. In our skeleton regulations we specified important public services, as I have said, according to the available evidence but we acknowledged that the significance of public services could change in the future. Today’s important services are not the same as those of 50 years ago and they will again be different in 50 years’ time, when the next transformational change—the successor to the internet—has arrived. Moreover, it would not be right for services to remain specified in secondary legislation if reduced service levels and staff absence become less disruptive to the public. Equally, it would not be right if the Government could not capture further public services within the limits set by the Bill, if further evidence was obtained on the impact of strike action in those areas.
My noble friend Lord Leigh does not seem to be here but, to give a curtain raiser, I was not intending to accept the amendment that we were about to discuss next. I hope that is not unparliamentary, but we did discuss this at Second Reading and that amendment, Amendment 4, expands things in a way that is not the Government’s intention.
Finally, Amendment 6 is a good example of the kind of agreement between the Opposition and the Government—in fact, all sides—which is often possible in this House. We initially included ancillary workers because staff who are not on the front line but play a supportive role could be critical to the delivery of important public services. There is a case here, but we have accepted, on reflection, that it would add unwelcome complexity for unions and others involved. We can all agree that the word “ancillary” is open to a number of different interpretations. Having agreed this amendment, the Committee can be assured that only workers who deliver an important public service would be included within the threshold. The regulations would specify, as now proposed, exactly who will be covered. Unions would not have to consider whether there were any additional ancillary workers on top of this. I commend Amendment 6 and hope that the Committee will be able to agree it.
I thank the Minister for her response. For the avoidance of doubt, I reassure the noble Lord, Lord King, that I was not, for one moment, suggesting additional categories, but the debate, and the Minister’s response, have illustrated that this legislation is incoherent and inconsistent. Our purpose in Committee today was to highlight that and we will return to these issues later on. In the mean time, I beg to withdraw Amendment 3.
I am not keen to stop the flow here, but does the noble Baroness not recognise that the CAC does have experience of workplace ballots, statutory recognition ballots? They are not a minor matter for those balloting or, for that matter, the companies subject to those ballots. Does she feel that those are somehow insecure or not valid because they are conducted in the workplace, overseen by the CAC?
That is a different matter. To respond to the question that was asked, we are in fact in contact with the CAC, but to bring in electronic balloting, as I have said, you need to be clear that the matter is extremely carefully addressed. A key area is to ensure that the electronic system correctly establishes an individual’s eligibility to vote. It has to capture the vote accurately while at the same time protecting the individual from being identified. The system needs—and I think there will be a lot of agreement on these points—to be both anonymous, to preserve individual privacy and secrecy, and accountable, to guard against malpractice and fraud.
(9 years ago)
Lords ChamberThe arts, the creative arts and all the things that the noble Lord mentions are incredibly important in the school curriculum, and there has been a lot of investment. Of course, the whole cornucopia that has been described helps with the education process, with visits to national institutions, artistic institutions and theatres. The Arts Council does a wonderful job and will continue to do so.
My Lords, the noble Baroness mentioned the Ernst & Young report on the potential for a sporting legacy. Does she think that the Government can learn anything from it in relation to the Olympics legacy? Also, in order to stop schoolchildren being put off rugby, could she stop Boris Johnson going on the pitch again?
I have no power over Boris Johnson but I believe that the Olympics and the Rugby World Cup have been brilliant in encouraging grass-roots sports, including rugby, for both boys and girls. Of course, the Paralympics have come through as an enormous British strength. This is an area to celebrate.
(9 years, 2 months ago)
Lords ChamberMy Lords, I will look into the insurance issue and come back to the noble Earl. We have worked very hard to ensure that appropriate guidelines are available for the art and antiques trade and have very good links with the Border Force and the Metropolitan Police. However, the insurance point is a good one and I thank him for it.
My Lords, I am sure many noble Lords will welcome the Minister’s commitment to the ratification of the convention for the protection of cultural property. However, the problem for many in this House is that on 14 May 2014, we heard exactly that response, so 18 months later we are still hearing the same commitment. Will she give a very clear assurance to this House that we will see the commitment acted on in this Session of Parliament?
This is a commitment the Government have made. It is for the parliamentary managers to decide exactly what is done when. All I can say is that we regard it as a priority. The Secretary of State regards it as a priority. The circumstances around the world today make it all the more important. I look forward to debating it in due course with colleagues on all sides of the House.