Oral Answers to Questions

Lord Maude of Horsham Excerpts

Wednesday 6th February 2013 Commons Chamber

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

3. What recent discussions he has had with the Chancellor of the Exchequer on ensuring that companies in receipt of Government contracts do not engage in tax avoidance schemes.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

In the autumn statement, my right hon. Friend the Chancellor announced that the Cabinet Office and Her Majesty’s Revenue and Customs would examine how the procurement process can be used to deter tax avoidance and evasion. I expect an announcement to be made on this matter shortly with a view to new arrangements coming into effect from 1 April.

[Simon Hughes]

That is very welcome news, and I hope that friends of the Cabinet Office will be able to make sure that the Chancellor announces in the Budget that we will end once and for all the possibility of taxpayers’ money funding people to avoid paying their corporate taxes. That has to end at both national level and local government contract level.

[Mr Maude]

I very much agree with my right hon. Friend. Our primary concern in public procurement is value for the taxpayer, but it is entirely legitimate to be concerned about ensuring that companies that are—rightly—profiting from Government contracts should be paying the proper amount of tax.

[Kelvin Hopkins (Luton North) (Lab)]

Is not the answer simply to put out a message to all companies that if they do not pay their taxes they will not get the contract?

[Mr Maude]

I do not recall this ever being addressed by the previous Government. We have inherited very large numbers of extremely costly contracts where nobody has taken any interest in this subject at all.

[Duncan Hames (Chippenham) (LD)]

4. What plans he has to achieve greater value for money from the Government’s management of information technology.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

Days after the coalition Government came to office, we introduced strict controls on ICT spend that saved the taxpayer £316 million last year alone, a figure verified by the National Audit Office. We have opened up procurement to small and medium-sized enterprises, we are moving towards open standards and interoperability, and we are reopening some of the incredibly expensive and burdensome ICT contracts that we inherited from the previous Government, with a view to making significant further savings. There is much more that can be done, and much more that we will do.

[Duncan Hames]

I thank the Minister for that answer and welcome those actions. I also thank him for visiting Ark Continuity in my constituency, a company whose data centres make cloud computing possible. There are myriad data centres in local and national Government and in the wider public sector, and there are huge savings to be made. Will the Minister target this area in searching for ways to save the taxpayer money?

[Mr Maude]

I enjoyed my visit with my hon. Friend to Ark Continuity. It was very illuminating. There is a huge amount we can do. Data centre capacity across Government is massively underused. A huge amount of overcapacity was left in place by the outgoing Government, who had no interest in these subjects at all. We are getting to grips with it, however. We need to do more, and we will do so; there is much more money we can save.

[Jon Trickett (Hemsworth) (Lab)]

The fact is that the NAO did not verify the savings. According to the NAO, the Department overstated its claimed IT savings probably by tens of millions of pounds. The Minister has form on this: he predicted £20 billion of savings from his quango review, but the NAO showed he barely saved a tenth of that. Perhaps the Department should propose a new ministerial baccalaureate in adding up and taking away. Since the Minister cannot get his figures right, will he now at least agree to brush up on his maths?

[Mr Maude]

The hon. Gentleman is talking total nonsense. We inherited a massive Budget deficit left by a Government who were fiscally incontinent and made no effort to deliver any efficiency savings whatsoever. Through our efficiency programme, we have already delivered £12 billion of savings and there is much more that can be done. The outgoing Government left the public finances and Whitehall efficiency in a shockingly sorry state.

[Eric Ollerenshaw (Lancaster and Fleetwood) (Con)]

5. What his policy is on the cyber-security partnership.

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[Richard Graham (Gloucester) (Con)]

7. What estimate he has made of the potential savings to the Exchequer from the Government’s proposed reforms to civil service pensions. [R]

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

The Office for Budget Responsibility has estimated that this Government’s reforms of public service pensions will deliver more than £430 billion of savings over the next 50 years.

[Richard Graham]

The Minister’s answer is good news for taxpayers, who include many of the 13 million people in this country without a pension at all, but it is also important that public sector workers receive a good pension. Will my right hon. Friend confirm that the revised structure is still a defined benefit one and that it is fairer to part-time workers, who are often women, and to lower-paid workers?

[Mr Maude]

Public sector pensions, after the reforms are fully in place, will remain among the very best available. That is right and we are strongly in support of it, but the cost was out of control. It is now back under control.

[Mr Gregory Campbell (East Londonderry) (DUP)]

What discussions are the Government having with trade unions representing civil servants to ensure the smoothest possible transition?

[Mr Maude]

We have regular discussions at official and ministerial level with the civil service unions, which, for the most part, have adopted a constructive approach and want the change to be introduced as smoothly as possible. Those discussions continue.

[Kris Hopkins (Keighley) (Con)]

9. What progress he has made on his plans for the National Citizen Service.

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[Toby Perkins (Chesterfield) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

My responsibilities as Minister for the Cabinet Office are for the public sector Efficiency and Reform Group for civil service issues; industrial relations strategy and the public sector; Government transparency; civil contingencies; civil society; and cyber-security.

[Toby Perkins]

The Government expect to increase debt by £212 billion more than they originally predicted, and our youth services are being cut to the bone. Study after study has shown, however, that the National Citizen Service, worthy as it is, has reached a tiny number of children. Is it not time that the Government either reformed the NCS to ensure that it provides better value for money or changed it altogether?

[Mr Maude]

It ill behoves the hon. Gentleman to lecture this Government about debt and deficit, given the state of the public finances when his Government left office; there was reckless incontinence. The National Citizen Service, which we expect to expand, provides an incredibly valuable experience for growing numbers of young people, and I would be grateful for the hon. Gentleman’s support for it.

[Mr Speaker]

There is plenty of scope for an all-day debate, I think. I call Mr Peter Bone.

[Mr Peter Bone (Wellingborough) (Con)]

T2. To the coalition Government’s great credit, four months ago they started to tackle the scandal of civil servants being given paid time off to do trade union work. The TaxPayers Alliance has worked out that that costs £90 million a year. How many savings so far have the Government made on that £90 million?

[Mr Maude]

One of the difficulties is that under the previous Government no one even monitored how much time was spent on trade union activities and duties. There is a statutory requirement to provide paid time off for trade union duties, but that was roundly abused. We now have in place a proper system of control and monitoring, and the cost will be cut right back.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

T3. It is estimated that 71% of over-55s do not have access to the internet at home, so will the Minister explain exactly what support has been put in place to enable them to access Government services for which it is compulsory to apply online?

[Mr Maude]

The hon. Lady will know that we have in place an assisted digital strategy, so that as we roll out our digital by default approach, which will provide services on a much more convenient basis for the citizen at much lower cost to the taxpayer, there will always be available a place where people can go so that the digital transaction can be carried out with the support of someone to help the citizen. [Interruption.]

[Mr Speaker]

Order. It would be helpful if the House listened to the questions and, indeed, to Ministers’ answers.

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[Andrew Bridgen (North West Leicestershire) (Con)]

T9. What monitoring arrangements for taxpayer-funded trade union representatives did my right hon. Friend discover after the general election, and what is his policy on this matter?

[Mr Maude]

Rather surprisingly, we found no arrangements whatever in place for monitoring the cost to the taxpayer of paid time off for trade union representatives. It had been allowed to spiral completely out of control under the previous Government and we are at long last bringing it under control.

[Michael Connarty (Linlithgow and East Falkirk) (Lab)]

T5. The Cabinet Office seems to have left out its responsibility for the Office for National Statistics when it listed its responsibilities. When it is clear that the country is facing a major problem of addictive gambling, why have the Government not carried out the gambling prevalence survey provided for in the Gambling Act 2005, so we do not know how much addictive gambling there is in the country?

[Mr Maude]

As the hon. Gentleman ought to know, the Office for National Statistics is a non-ministerial Government department, which has statutory independence from Ministers.

[Mr Christopher Chope (Christchurch) (Con)]

T10. Will my right hon. Friend ensure that the Cabinet Office keeps a proper record of all the circumstances in which collective ministerial responsibility is set aside, so that we can have some transparency in relation to that process?

[Mr Maude]

I will ensure that the records are meticulously kept.

The Prime Minister was asked—