Public Bodies Bill [HL]

Lord Taylor of Holbeach Excerpts

Monday 7th March 2011 Lords Chamber

[Lord MacKenzie of Culkein]

My Lords, I also pay tribute to my noble friend Lord Berkeley for raising this matter again. As the noble Lord, Lord Greenway, said, my noble friend is tenacious. However, I am sorry to say that I disagree with the points that he has made. We debated this matter extensively on 21 January and I want to reiterate a couple of points from that debate. The WS Atkins report went into considerable detail on the general lighthouse authorities. The British and Irish Governments have dealt pretty comprehensively with the so-called Irish question and the new strategic board has been set up which will drive further reductions in costs. At the end of the day, the shipping companies pay these costs.

Last Saturday I picked up a lovely little book about the Bell Rock lighthouse, comprising a series of articles written by an assistant lightkeeper in about 1904. The foreword to the book describes how the lighthouse authorities in the UK work. One of the interesting points was that, despite repeated reductions in costs around the turn of that century, the shipping companies were demanding that they should not pay light dues and that the lighthouse authorities be funded out of imperial taxation. Nothing has changed in 110 years.

I do not know many, if any, organisations that could have cut their costs and increased efficiency in the way that the lighthouse authorities have. There have been massive cuts in personnel, huge advances in technology, and that is the way forward. If technology moves forward and becomes affordable, I have no doubt that there will be further reductions in light dues. For the present, however, I see no useful purpose in pressing these amendments. I am pleased to note that the noble Lord, Lord Berkeley, has said that they are probing amendments.

[Lord Taylor of Holbeach]

My Lords, this has been a useful debate—I am sure that the noble Lord, Lord Berkeley, believes that to be the case—and I thank all noble Lords for their contributions. This is a probing amendment and I accept that in my response. I understand the noble Lord’s purpose, because he has proposed for some time that the general lighthouse authorities that serve the coast of the United Kingdom and Ireland should be merged into one body. Indeed, mention was made by the noble Lord, Lord Davies of Oldham, of the Bill that the noble Lord, Lord Berkeley, has presented to the House. I also thank the noble Lord, Lord MacKenzie of Culkein, for his contribution that shows that a lot of progress is being made in this area. It is an opportunity for the use of technology that the authorities have taken advantage of. I also thank the noble Lord, Lord Greenway, for his involvement with those bodies, particularly Trinity House. I hope that my noble friend Lord Newton of Braintree will accept that these are probing amendments. I respond in that spirit.

I should explain to noble Lords that the Commissioners of Irish Lights has functions in relation to Northern Ireland and to the Republic of Ireland. Moreover, it is a body established in Dublin under Irish law. In case people fantasise about people earning enormous salaries, no staff member earns €1 million in the employment of that body. It is not for the UK Parliament to purport to abolish or otherwise this body or its functions in relation to the Republic of Ireland.

A recent independent study by the consultants Atkins, to which reference has been made—it was a comprehensive review—addressed the provision of marine aids to navigation and concluded that the present arrangements, whilst complex, achieve the basic objective of ensuring the safety of the mariner and provide high-quality, comprehensive and integrated maritime aids to navigation all around the British Isles. Notably, Atkins recommended some changes to the governance of the general lighthouse authorities through the creation of a joint strategic board. Since last year, with the Shipping Minister’s endorsement, the joint strategic board has worked closely with the Department for Transport and the three general lighthouse authorities to identify further efficiency measures to drive down running costs.

The general lighthouse authorities are no strangers to minimising their costs, as the noble Lord, Lord MacKenzie, said, by adopting new technology, estate rationalisation, joint operational initiatives and the generation of income from their commercial activities. These organisations have ensured that the level of light dues that pay for their work is 40 per cent lower in real terms than in 1993. Indeed, Atkins concluded that the general lighthouse authorities have a strong track record in identifying and realising efficiencies and cost reductions within their operation and support functions. These directly benefit ship owners through reduced burdens on the general lighthouse fund and the real-terms level of light dues.

I know that the noble Lord, Lord Berkeley, has pursued this issue with terrier-like commitment, but I hope that I have been able to provide some clarity on the recent progress that we have made in this area of policy.

I am afraid that I am not in a position to answer the question on the Freedom of Information Act and its application to the various authorities, but I shall try to do so and will write to the noble Lord with that information. With that in mind, and in view of the general lighthouse authorities’ excellent reputation for delivery, I hope that the noble Lord will feel able to withdraw his amendment.

[Lord Berkeley]

I am very grateful to the noble Lord. Before I withdraw the amendment, perhaps I may invite him to comment on Amendments 139A and 165A. In the light of the statement that the noble Lord made on the previous occasion that we debated this matter, it is not clear to me whether Trinity House and the Northern Lighthouse Board are meant to remain in Schedule 7 or whether they will be among those that are to be removed. My amendments would remove these two authorities from Schedule 7 to avoid them being changed; the Government have included them in Schedule 7 but they may want that schedule to be removed. My original question was: if the Government want them in Schedule 7, what are they going to do with them when they are in that schedule? Therefore, in theory, the noble Lord should accept my Amendments 139A and 165A on the basis that there will be no change for these two organisations.

[Lord Taylor of Holbeach]

I thank the noble Lord for his ingenuity in this respect. He should know that I have added my name to those opposing the question that Schedule 7 stand part of the Bill. Therefore, Schedule 7 will not apply to the Bill, and the noble Lord can rest at east that there will be no way in which these bodies will be included in that schedule.

[Lord Berkeley]

I thank the noble Lord for that explanation, which gives me great comfort. I beg leave to withdraw the amendment.

--- Later in debate ---

[Lord Newton of Braintree]

My Lords, I hope that I might, without abusing the rules of Committee stage, make a brief further intervention as I had not anticipated the thrust of the remarks of the noble Baroness, Lady Hayter, on her Amendment 107, for which I apologise. It may be helpful to the Minister if I give him notice of this. As I understood it, the noble Baroness was complaining that the provision in Clause 8 about efficiency, effectiveness, economy and accountability was not sufficient. I hope that my Amendment 106A focuses on that point at least as clearly by saying that one should also take into account,

“fairness, openness, transparency and justice”.

I would like to see some values incorporated into what the Government have to take account of in these matters. Even if my noble friend cannot give me an assurance on that today, I hope that he will reflect on it.

When I made a somewhat similar point to the previous Government, the then Minister, the noble Baroness, Lady Ashton of Upholland, immediately took the point and brought forward an amendment to introduce values in a similar context into the Tribunals, Courts and Enforcement Act 2007. Therefore, I hope that that precedent will carry some weight, whether today or in the future.

[Lord Taylor of Holbeach]

I thank the noble Lord, Lord Whitty, for initiating this debate with his amendments as it is agreeable to return to the way in which the Bill operates, having discussed individual bodies at length. The noble Lord gave very good value, as he always does. I thank all noble Lords who have participated. The noble Baroness, Lady Hayter, drew the attention of the noble Lord, Lord Borrie, and, indeed, that of my noble friend Lord Newton of Braintree, to Clause 8. We are still looking at Clause 8 as the Delegated Powers and Regulatory Reform Committee asked us to do so. The noble Lord, Lord Rosser, has a slightly jaundiced view of the way in which the Government have established dialogue on the Bill. We are genuinely seeking to introduce a necessary vehicle to deal with the reform of public bodies. I think that there is general agreement on that across the Committee. The previous Government had such a policy and we seek to pursue it in our turn.

The group of amendments in the name of the noble Lord, Lord Whitty, would require that, before laying an order under Clauses 2 to 6, a Minister must lay before Parliament a report setting out the reasoning for any change in the status of a body or bodies he or she proposes to make, with the said report being subject to debate and approval by resolution in each House. Amendment 119 would introduce an additional requirement for a report where an order affects a body or office within a particular set of categories. I hope the noble Lord will agree with that summary of what he is seeking to do.

The Government agree that Parliament should have access to appropriate information regarding any proposals to use powers under the Bill. The government amendments that we have introduced in Committee reflect this. In the first instance we have sought, along with Peers from across the House, to introduce a new requirement for Ministers to consult in relation to proposed changes under the Bill. Secondly, government amendments have been tabled which would require any draft instrument laid before Parliament to include an explanatory document which includes details setting out the reasoning behind the order.

These requirements give Parliament ample opportunity to scrutinise the reasoning behind the laying of an order. Amendment 113 in the name of the noble Lord, Lord Whitty, would effectively require an additional affirmative resolution process for a report concerning a proposed order before the order itself could be made. This amendment risks Parliament being asked to debate a report on a proposed order prior to the consultation on the said order having been concluded. Additionally, it would create a new burden on Parliament itself and on departments as they seek to deliver on the reform package to which the coalition Government are committed.

Amendment 119 would require a Minister making an order affecting a group defined as an economic regulator or a consumer body to place a report before Parliament setting out the reasons for the proposals in the context of that group of bodies as a whole. The Government, of course, recognise that changes to public bodies should not be considered in isolation. I assure the noble Lord that this was not the case for those reforms set out by my right honourable friend the Minister for the Cabinet Office on 14 October. In this instance all reforms were agreed at Cabinet level and involved extensive dialogue between departments. I particularly appreciate the spirit of the noble Lord’s amendment in relation to relatively discrete groups of bodies such as the so-called economic regulators, where a shift in regulatory practice for one could potentially impact on regulatory stability across the sector, and where it is therefore right that Government act in a proportionate, joined-up manner.

As I said at Second Reading—I am happy to reiterate it—the Government intend the economic and regulatory functions of bodies such as Ofcom and Ofgem to be excluded from the powers of the Bill for precisely this reason. I do not believe that it is necessary to place such a requirement in the Bill, because the Government expect Ministers to consider such issues as a matter of course and because our Amendment 118, which requires Ministers to produce an explanatory document with a draft statutory instrument setting out the reasons for an order, will provide another opportunity to inform Parliament of such matters. For example, where a change is proposed to a consumer body or any other body, the Government will be required by Amendment 118 to give reasons for the order that relate to considerations including efficiency, accountability and effective delivery of public functions.

I take note of this debate, in which there have been valuable contributions—not least the ideas on Clause 8 proposed by my noble friend and the noble Baroness, Lady Hayter—and I hope that, given my assurances with regard to our commitment to sharing information with the House, the noble Lord will feel able to withdraw the amendment.

[Lord Maclennan of Rogart]

Before my noble friend sits down, will he briefly animadvert on the nature of the explanatory document that he has it in mind to produce? Explanatory Memoranda about Bills often state that they are there only to explain the content, not to provide evidence that has led to formation of the policy. Furthermore, such memoranda frequently state that they are explaining only those matters that are obscure or not clear in the Bill. What is required to be helpful to the deliberative process is an undertaking that these memoranda will contain evidence explaining the policy.

[Lord Taylor of Holbeach]

A requirement under our amendments will be that the explanatory documents are properly reasoned and describe not just what a statutory instrument proposes but the reasoning behind the change. They will also include an impact assessment. The idea is that these should be full documents. I understand what my noble friend is saying and I am grateful for his intervention, because Explanatory Memoranda to Bills frequently explain only what a particular clause might seek to do, not its implications. The requirement is that the explanatory documents should explain the reasoning behind a Minister’s approach to laying a statutory instrument.

[Lord Whitty]

My Lords, I am grateful for the Minister’s reply. Indeed, at one point he used the word “agreeable”, which perhaps raised my expectations too much. This short debate has demonstrated a need for the Government to provide a clearer explanation of what they are doing in this area. I saw the noble Lord’s Amendment 118 and, like the noble Lord, Lord Maclennan, I thought that that related to Explanatory Memoranda of the type that normally relate to content, rather than strategy and context. If the noble Lord, Lord Taylor, is saying that the content of the explanatory document will go somewhat wider, I accept that that goes some way towards what I am arguing for.

In relation to the procedural points made by my noble friends Lord Borrie and Lady Hayter, when these amendments were drafted there was another amendment—we have now considered it—in addition to her Amendment 107, which would have strengthened Clause 8 and made more sense of it. I had hoped that that could have been sorted out later, if the Government had stated that in principle they were accepting these amendments. However, Clause 8 as it stands asks the Minister to take these matters into consideration but does not require him to explain them to Parliament in any form. I am concerned that Parliament should, at some stage in the process, hold a substantive debate on the total strategy that lies behind the reason for abolishing or changing the nature of a particular body.

That remains an outstanding issue. When we reach Amendment 118, I hope that the Minister can expand further on how he sees this issue. However, the essential point is that Parliament by this Bill is giving up the right to revert to primary legislative procedure in relation to an organisation that was originally set up after full debate on primary legislation. We need a clear explanation if we are going to cut corners in that way. I still hope that we get there in the secondary, if not in the primary, legislation. If the Minister, before we consider Amendment 118 or at Report, can put a few bones on that, I should be extremely grateful. In the mean time, I beg leave to withdraw the amendment.

Public Bodies Bill [HL]

Lord Taylor of Holbeach Excerpts

Tuesday 11th January 2011 Lords Chamber

[Lord Hunt of Kings Heath]

My Lords, I am grateful to my noble friend Lady Thornton for raising three very substantive matters with this amendment: first, what is to happen to the FSA; secondly, the process by which the Government have undertaken this review; and, thirdly—coming back to the debate on the first group of amendments—the architecture of the Bill.

I was the Department of Health Minister who, with the noble Baroness, Lady Hayman, as the Defra Minister, took through the legislation that created the Food Standards Agency. The noble Lord, Lord Newton, and I are singing off the same hymn sheet here. I remind the noble Lord that the reason for this was that there was a great deal of public distrust, it would be fair to say, arising out of the BSE issue along with some concern about the advice that the relevant government departments had been giving to the public. Therefore, the decision was taken to create an independent agency sponsored not by Defra but by the Department of Health.

Overall, that agency has worked very well indeed. I pay particular tribute to the noble Lord, Lord Krebs, and to Mr Geoffrey Podger, the first chair and chief executive of the FSA—and, indeed, to their successors—for doing what I think has been an outstanding job. It has certainly advanced the credibility of the advice that that body gives to the public and, importantly, has also enhanced the credibility of the British food industry. I therefore have some reservations about the changes that are now being proposed to the FSA. I understand that there will be a transfer of some of its responsibilities to the Department of Health. I must declare my interests in relation to the health service and to public health as they are recorded in the Register. The FSA has a tremendous reputation and, in the Government’s place, I would hesitate before making substantive changes.

However, the second point raised by my noble friend relates to the rationale for the Government’s approach both to those bodies that are contained in the Bill and those that are not. It is still not clear to many noble Lords what the rationale is. This is a good opportunity for the Minister, who, as noble Lords have already remarked, has been very helpful to the House, to explain some more about the rationale for the bodies contained in the Bill and those that are not, even where those that are not are actually to have substantive changes made to them.

The noble Lord, Lord Taylor, will be a little tired of having Select Committee reports quoted back to him because it would be fair to say that all of the Select Committees that have so far looked at the Bill and at the review undertaken by the Government have been not exactly complimentary. The noble Lord, Lord Taylor, has to answer the central charge of the Public Administration Select Committee, chaired by Mr Bernard Jenkin, which said:

“This review was poorly managed … no meaningful consultation, the tests the review used were not clearly defined and the Cabinet Office failed to establish a proper procedure for departments to follow”.

Apart from rejecting the Select Committee’s report out of hand, the Government have been rather silent in responding so far. We are entitled to some comment on the review process itself.

My noble friend Lady Thornton referred to the Bill as being the “Hokey Cokey Bill”. I think it is more Gilbertian myself. The noble Lord, Lord Taylor has a little list. In fact it is a very big list that is gradually becoming smaller. I note that the Jonathan Miller production of “The Mikado” is back at the Coliseum yet again. The noble Lord might take care and reflect by going to see it.

It brings us back to the architecture of the Bill. In an earlier debate the noble Lord, Lord Lester, raised the question of Amendment 175, which is consequential on the paving Amendment 1 that the House passed. That is a very important amendment because it sets very clearly the restrictions on ministerial powers to be used in the Act. If, as a result of the discussions that I know that his officials are having with noble Lord, Lord Lester, tomorrow and other discussions, the Government were able to accept the principle of Amendment 175, while making it clear that they do not intend to reverse this in the other place, then we would make more progress.

There are other substantive issues in relation to the architecture. I have already mentioned the use of the supra-affirmative procedure and the deletion of Schedule 7. Some reassurance that public consultation will take place when it is proposed to deal with any of the bodies in this order would go some considerable way to reassuring noble Lords. In the absence of the House understanding what changes the Government are prepared to make to the architecture, we go inevitably through these bodies one by one and, in a sense, in a vacuum—a point made earlier by the noble and learned Lord, Lord Mackay of Clashfern. We are due a Committee day next week when, no doubt, we will hear when further Committee days are to take place. I hope that in a fairly short time the Government will be able to make a little clearer their sense of where they are on the Bill and whether they are prepared to make the kind of changes to its construct that would reassure noble Lords considerably.

[Lord Taylor of Holbeach]

My Lords, I thank the noble Baroness, Lady Thornton, for tabling this amendment. I know that she has done so with good intentions but we have enough on our plate without adding an extra dish to the menu. I thank the noble Lord, Lord Hunt of Kings Heath, for his recommendation to see “The Mikado”. I saw it when it was previously on at the Coliseum. In fact, I have tickets. Should time allow, I hope to see it in revival.

As your Lordships are aware, the Public Bodies Bill exists to take forward the review of public bodies undertaken across the Government in 2010 to enable changes to be made. I acknowledge the report of the Select Committee produced by another place and no doubt we will be replying to that report in due course. However tempting it might be, I do not want to use this debate as an opportunity for expanding on arguments that the Government will bring forward in their discussions with that committee. We are negotiating with the opposition Front Bench and the Select Committees of your Lordships’ House to try to improve the Bill. It is interesting that, as the noble Baroness said, there is a determination across the House to ensure that we have a public bodies sector that is fit for purpose.

Perhaps I may address the changes that have occurred within the Food Standards Agency in the context of the recent history of the department. The previous Government announced in their public health White Paper, published shortly before the election, that they would bring dietary health and nutrition away from the FSA into the Department of Health. That is the background against which, under the new Government on 20 July 2010, the Department of Health announced its decision to retain the Food Standards Agency as an independent regulator, while transferring some of its functions to the Department of Health and Defra. I shall shortly put those into the context of the size of the organisation. These changes are non-statutory in nature and do not therefore require the use of the Public Bodies Bill, or any another legislative vehicle, to bring them into effect.

The proposed changes to the role of the FSA are designed to contribute to the Government’s objectives to improve efficiency and are paramount to the key priority of improving the health of the nation by creating a public health service. To achieve this coherence, some policy-based functions are to be brought in-house to give a more co-ordinated approach on health and food issues. These changes affect approximately 5 per cent of the 2,000 staff employed by the Food Standards Agency. About 25 labelling policy posts will move to Defra and 85 nutrition policy posts will move to the Department of Health. These proposed changes reflect the Department of Health’s desire to bring together all the policy levers to enable it to deliver a coherent public health strategy. This will allow the FSA to focus on its key core remit of food safety underpinned by scientific expertise. It has been mentioned that the noble Lord, Lord Krebs, in establishing the Food Standards Agency, provided a foundation of science which has greatly benefited that organisation. The proposed changes will enable government food policy to be communicated and delivered in a coherent and consistent manner. The Department of Health, Defra and the FSA—we must not forget that the Food Standards Agency is classified as a government department—will work together to ensure that this structure protects consumer interests, reinforces efforts to improve the public’s health and supports a competitive food industry.

I acknowledge that the last thing the noble Baroness seeks is the extinction of the Food Standards Agency. On the basis of the assurances I have given, I hope that she will feel able to withdraw the amendment.

[Baroness Thornton]

I thank the Minister for that Answer. I assure him that we are in agreement about not adding the FSA to the Bill. I will read his remarks and consider how we might usefully take forward the process of injecting coherence into this modernisation. However, I shall not do so now. Therefore, I beg leave to withdraw the amendment.