Public Bodies Bill [Lords]
Debate between Lord Maude of Horsham and Lord Beamish(13 years, 4 months ago)
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Mr Maude
We rather agree with what my right hon. Friend says. There is concern that a whole new apparatus and bureaucracy should not be set up, with all the associated costs, which the previous Government’s plans would have entailed. However, we understand the concern that not proceeding with the establishment of a chief coroner would look insensitive, and would perhaps be insensitive in the circumstances. I will say a word later about the detail of our plans in respect of that office.
Mr Kevan Jones (North Durham) (Lab)
What has changed from when the Minister was in opposition, when he voted for the chief coroner and his party’s Front-Benchers spoke in favour of it in Committee? The Minister spoke about cost and there is an issue about cost. Why has he not yet published what savings will be made by not having a chief coroner? If, as he recognises, certain functions have to be carried out in the Ministry of Justice, at what cost will those functions be carried out?
Mr Maude
It will cost very much less. The set-up costs for the office of the chief coroner, as planned under the Coroners and Justice Act 2009, would have been £10.9 million and there would have been running costs of £6.6 million a year. I will tell the hon. Gentleman exactly what has changed. A Government have come to office and inherited the biggest budget deficit in the developed world. We had to take urgent steps to control and eradicate the deficit. As a result of that, he will be glad to know, despite having a budget deficit roughly the same size as that of Greece, we now enjoy interest rates roughly the same as Germany’s.
Mr Jones
The Conservative central office spin is wearing a bit thin. Will the Minister break down the costs? The other place was disputing the one-off set-up cost. Included in the so-called £6 million a year is nearly £1 million for contingency, which is 20% of the supposed running costs. Would it not help to justify his arguments if a detailed breakdown was printed, which the Ministry of Justice has signally failed to do and he has not done today?
Mr Maude
I will, of course, ensure that my right hon. and learned Friend the Lord Chancellor hears what the hon. Gentleman has said. There will be plenty of opportunities, such as at Question Time once a month, for the hon. Gentleman to ask those questions of Ministers at the Ministry of Justice.
Mr Maude
My hon. Friend will forgive me, but I really do need to make progress. A great many Members wish to contribute to the debate.
Our first test of a body was the existential test—does its function need to be carried out at all? If, as in most cases, the body’s functions were deemed necessary, we then sought to establish whether the functions should be carried out independently. We had three tests. If a body carries out a highly technical activity, if it is required to be politically impartial or if it needs to be able to act independently to establish or measure facts, it is right for it to remain outside direct ministerial or other democratic accountability. That is clearly the case with bodies such as the new Office for Budget Responsibility, Ofgem and many others.
Any body that does not meet any of those tests will either be brought back into a Department, where it can be held accountable to the House through a Minister, or devolved to local authorities. In both cases there will be democratic accountability. Or in some cases, a body’s functions could be carried out outside the state altogether in the private or voluntary sector. We went through an extensive process to determine the outcome of the review.
The first task was simply to establish how many quangos there were and what they did. It may sound absurd, but it was and remains incredibly difficult to get firm information on that. Many do not publish accounts, there is no central list and there are many different types of quango with different statuses. The official list of non-departmental public bodies contains 679 bodies, excluding those in Northern Ireland, but that does not include non-ministerial departments, Government-owned public corporations or trading funds. Our review covered 901 bodies, and we believe, but cannot be certain, that that is the true extent of the landscape. I stress that departmental executive agencies were not within the review’s scope. They are directly controlled by Ministers, who are accountable to Parliament for what they do.
At the end of that review, I announced our proposals to the House on 14 October last year. They were that 481 of the bodies should be substantially reformed, including 192 abolished entirely and a further 118 merged. Since that announcement we have concluded consideration of a number of other bodies, and I can tell the House that the current total is that 495 bodies will be reformed, including 200 abolished and 120 others merged into 59 successor bodies. We have moved quickly to implement that programme, and I am pleased to tell the House that 45 bodies had been abolished by the end of April this year. Overall, we expect to make administrative savings—I stress that they are administrative—of £2.6 billion from public bodies over the spending review period. That money will be better spent on protecting public sector jobs and on front-line services.
Mr Maude
If the hon. Gentleman will forgive me, I am going to make progress. I have given way a great deal, and I do not want this speech to go on too long. I am sure that is a sentiment that the House will support.
I note that the previous Government’s intention, set out in 2009, was to abolish 120 bodies, saving the conveniently round sum of £500 million. Yet in the six months following that announcement, they did not even manage to abolish half of them—a clear demonstration that, as ever, they had a better knack for the headline than for the hard work of implementing what had been promised.
Where public bodies have been retained, they will be subject to a process of rigorous triennial review, to ensure that they remain fit for purpose, that the need is there, and that the justification for them remaining independent is still valid. Far too often, bodies have been created and left well beyond the time when they are needed, partly because there has been no means to reform or disband them—any such change would have required primary legislation, time for which is, as we know, at a premium in the House.
The Government’s response to the Select Committee on Public Administration report outlined the principles of that review process, and I look forward to giving further details to the House in due course. The review process for individual bodies will be led by the responsible Minister in each case, and co-ordinated and supported by the Cabinet Office.
The House will be aware that the Bill was brought from another place, where it has received substantial scrutiny, resulting in a number of important amendments. I thank noble Lords for their constructive engagement in this process, which has helped the Government to produce an even more coherent and well-structured Bill—it was fairly coherent and well-structured to begin with. I hope that it will command the support of this House and the confidence of the public. I pay particular tribute to my noble Friend Lord Taylor of Holbeach for his skilful stewardship of the Bill in the other place.
The Bill is centred on a series of order-making powers that enable Ministers to make changes to public bodies through secondary legislation, subject to the approval of Parliament. That mechanism creates a coherent and efficient procedure for reform, while properly giving Parliament the ability to scrutinise both the principle and the detail of the proposals.
Public Bodies Reform
Debate between Lord Maude of Horsham and Lord Beamish(14 years, 1 month ago)
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Mr Maude
We have not taken a decision on the future of the Union Modernisation Fund itself, but my hon. Friend raises genuine concerns about the way in which the supervisory body operated. In the previous Parliament, I asked a number of questions about the publication of its minutes, but somewhat to my surprise I discovered that no such minutes were kept. That is the epitome of unaccountability and lack of transparency, which is exactly what I am seeking to address.
Mr Kevan Jones (North Durham) (Lab)
The decision to strangle at birth the chief coroners office will be viewed with dismay by many organisations, including the Royal British Legion, which campaigned for it to improve the coroners service. Can he explain why the Opposition supported the proposal during consideration of the Coroners and Justice Act 2009, but now they are in government they wish to abolish the office?