(5 years, 4 months ago)
Lords ChamberOn the issue of social care, the noble Baroness will have heard responses from my noble friend who was pressed on the progress of the Green Paper on social care. I cannot add to what she said. As regards Brexit squeezing out legislation, we made it clear at the beginning of the session—which we knew would last slightly longer than usual—that Brexit would be a priority. However, we have so far introduced 63 government Bills, 44 of which have received Royal Assent, and, in addition to the European Union (Withdrawal) Act, 10 exit-related Bills are in Parliament or have received Royal Assent. So we have introduced 52 Bills that are not related to exit. It is not the case that Brexit has squeezed out all relevant social legislation.
My Lords, the Minister referred to the capacity of the Civil Service. The Conservatives were keen to reduce Civil Service numbers, did so in 2016 and planned to in 2017. Since then, I understand that they have had to go through some emergency recruiting to bring numbers up to what is needed to handle preparations for Brexit—and in particular a no-deal Brexit—and have not yet started on the number of extra civil servants we will need to staff all the agencies that will have to be created to replace those EU agencies that provided us with shared services. Can he give us some estimate of the additional number of civil servants who have already been recruited and the extra numbers we will need if and when we leave?
I wish I could, but I honestly do not have those figures in front of me. The Civil Service has always had the flexibility to reflect government priorities and move people around from one department to another. At the beginning of the Blair Government, when constitutional reform was a priority—with the Scottish Parliament, the Welsh Assembly and reform of your Lordships’ House—resources were pushed into that. In the 1980s, when we had nationalisation, resources went there. So the Civil Service has the capacity to respond to challenges and, in my view, has always risen to that challenge.
(5 years, 5 months ago)
Lords ChamberI am a great fan of the Youth Parliament and when I was in the other place I attended some of its sessions there. It gives young people an opportunity to taste public life and I hope that many of its members will go on to become Members of Parliament. Perhaps I may reflect on the broader issue the noble Baroness raises about whether we might give more powers to the Youth Parliament. It is a helpful and positive suggestion.
My Lords, is not part of the problem of short-term policy-making, when we should have long-term thinking, that the ministerial churn is enormous? A number of senior ministerial posts are on their third postholder since 2015 and are expecting a fourth within the next four to six weeks. The noble Lord is an absolute pillar of the example of long-term postholding in government. Does he have any recommendations to make about how we may shift from this constant change of ministerial office to a longer-term prospectus?
The noble Lord makes a valid suggestion. I was a Minister 40 years ago and since then I have been churned many times, often against my will. The noble Lord makes a serious point. It takes time to come to terms with a portfolio and then to develop one’s own priorities and initiatives. It is demoralising, just when one has discovered one’s responsibilities and what one wants to do, when one gets the call from No. 10 to say that one’s talents have been recognised but need to be deployed elsewhere. It is right that Ministers should spend at least two years in the same position. However, it may not always be possible—as next month may show.
(5 years, 5 months ago)
Lords ChamberAs I said in response to the noble Lord, Lord Kennedy, the Electoral Commission will carry out its normal review and inquiry into the European elections. It will certainly look at the issue raised by the noble Lord that some of the forms do not reach the people eligible. The Government will of course take notice of any recommendations made.
My Lords, I am sure that the Minister will recall that, at the weekend, the Chancellor of the Exchequer suggested that the Conservative leadership election makes it now practically impossible for us to leave in good order on 31 October. Mr Michael Gove, as a candidate for that leadership, has also suggested that we might take rather longer. This begins to open up the prospect that we could indeed have the 2020 local elections before we get to the point of deciding whether we finally leave. We need to make absolutely sure that the position of EU citizens resident in Britain and their right to vote is clarified before we come to the next round of elections in which they are entitled to participate. Can he ensure that the Electoral Commission has that fully in mind?
Is the noble Lord suggesting that there is a scenario where we have another round of European elections?
(5 years, 6 months ago)
Lords ChamberI notice the impassive face of my noble friend the Chief Whip, who of course has great influence on what issues we discuss. He will have heard my noble friend’s suggestion, and I know that he will want to discuss it through the usual channels.
My Lords, the Minister said that political parties “vary considerably”. Their finances also vary considerably, and one of the structural problems in British politics is that the Conservative Party is now able centrally to raise so much more finance than any of the other parties. I recognise—as a member of a party which has activists under the age of 50 and is therefore able to deliver its own leaflets without having to pay others to do so—that it needs some of this. But is it not urgent that financing that comes into the centre of the Conservative Party should be carefully examined to eliminate those large donations that come from people who are not domiciled in the United Kingdom or are not British citizens? Is it not also urgent that the rules be tightened to allow central spending to be directed to particular constituencies and thus get round the limitations on constituency campaign funding?
On the last point that the noble Lord raised, there was a court case relevant to this. The Electoral Commission is now in the process of issuing guidance which will give clarity to what scores against the local candidate’s expenditure and what should score against the party’s national expenditure. I hope the noble Lord welcomes that. I was relieved to hear that my party now finds it so much easier to raise money than any other party; this will come as welcome news to the party treasurer. So far as donations to the party are concerned, my party tries to stick rigorously to the rules—as I am sure all parties do. If an impermissible donation is presented, we are obliged to return it within 30 days.
(5 years, 6 months ago)
Lords ChamberI am grateful for the consensual approach adopted by the noble Lord. Quite recently he attended a meeting with me, the noble Baroness, Lady Kennedy, my noble friend Lord Hayward, the noble Lord, Lord Rennard, and, I believe, the noble Lord, Lord Stunell, at which we sought to see whether there was a consensus on some of the challenges facing the electoral system. Subsequently, a meeting was held with the Electoral Commission. I would be more than happy to contact the Minister for the Constitution, who was also at that meeting, to see whether it would be helpful to have another round-table discussion to identify areas of consensus and to see whether we can make progress in developing a rigid and credible electoral system.
My Lords, if we are to re-establish trust in where money for politics comes from, we need to have answers to challenges fairly quickly. It is now nearly three years since the last referendum and we still do not have any indication of where the largest donation to the Vote Leave campaign came from and whether it was legitimate or illegitimate. Should we not somehow provide extra resources immediately for the Electoral Commission and all those investigating what are potentially criminal acts to make sure that we have answers as quickly as possible, if not during the campaign then at least soon afterwards?
The noble Lord will be aware that some cases concerning the Leave.EU campaign have been referred to the police. On his question about resources for the Electoral Commission, the last time he asked me that I pointed out that there had been an underspend. Since then, the Electoral Commission has put in an increased bid for next year of, I think, 11% for resource expenditure and 18% for capital expenditure. That has been approved by the Speaker’s Committee on the Electoral Commission, because it is that committee that finances the Electoral Commission, not the Government. It has yet to be ratified by the other place but I hope that it will be. That would give the Electoral Commission the resources that it needs, to which the noble Lord referred.
(5 years, 6 months ago)
Lords ChamberI am grateful to the noble Lord for that suggestion. As he will know, the Electoral Commission is independent of government, but I see no reason why it should not respond positively to the suggestion he made.
My Lords, the Electoral Commission is independent of government but depends on government for its resources. Given the extent to which confidence in our electoral system and campaigning has been hit by various allegations, stories and uncertainties over where financial contributions have come from, is the Minister confident that the Electoral Commission has the resources to restore the necessary confidence in our electoral campaigns and elections at present?
(5 years, 8 months ago)
Lords ChamberI agree with my noble friend that we should do more to ensure that those from ethnic minority communities who have made a significant contribution to society should see their achievements get public recognition, and we should remove any obstacles in that path. In 2016, 6% of the New Year Honours went to those from black and ethnic minority communities. In the New Year Honours this year it was 12%, and we are averaging around 10%, but none the less more can be done. There are relatively few refusals of honours; the latest figure I have seen is around 2%. The reasons for refusal are not given, but I understand that it is very rare for a refusal to be on the grounds that my noble friend suggested. On her final point, that would require a new order of chivalry. The structure of the honours system is a matter for the monarch; this is well above my pay grade and, indeed, my rank.
My Lords, given that there are good grounds for renaming the Order of the British Empire now that we no longer have a British Empire, does the Minister accept that the range of acceptable titles is presumably rather large, since two of our most distinguished orders of chivalry are named after the garter and the bath?
I understand that the order cannot be renamed. The statute makes it quite clear that it must be known by that name and no other, so we would have to close it and start another. In response to the general issue that has been raised, it is noteworthy that 10 Commonwealth countries, many of them in the Caribbean, continue to nominate people for Orders of the British Empire and other ranks, so I am not sure that the reservations expressed by my noble friend are necessarily widely shared.
(5 years, 8 months ago)
Lords ChamberI recognise the particular role my noble friend has when it comes to statutory instruments, and I can give him that assurance.
My Lords, the Minister has already been asked about what has happened to the English regions. Now that we have a rather privileged relationship for the three national assemblies, is devolution to the English regions stuck? In Yorkshire we have made very detailed proposals for a One Yorkshire scheme. The Minister for the Northern Powerhouse suggested that we had to accept four city regions for Yorkshire or nothing, in spite of the fact that there is no city in one of those four proposed regions.
Devolution is England is not stuck. I spend many hours in the Moses Room dealing with statutory instruments, either setting up combined authorities, where local authorities wish to combine, or local mayors, who will shortly be elected, so we are making good progress in devolving power from Westminster to the local authorities.
(5 years, 8 months ago)
Lords ChamberTo ask Her Majesty’s Government what changes they are considering to the outsourcing of public services as a result of Interserve entering into administration.
My Lords, nothing in Interserve’s refinancing will affect the delivery of public services. No staff have lost jobs and no pensions have been affected. The company has executed a contingency plan it had prudently developed in case the shareholders rejected the proposed refinancing deal. However, we have already announced changes to how we outsource; these are captured in the Outsourcing Playbook, which outlines a range of measures designed to ensure that outsourcing projects succeed.
I am glad the Government are investing in playbooks—I am not sure what sort of play is intended. It seems to be time for an overall review. Can the Minister confirm that of the 29 strategic suppliers the Government list for outsourcing, five have now run into severe financial difficulties, and that in several cases, as with Interserve, US hedge funds shorting the shares have contributed to that, putting British public services in peril? Can he confirm also that Interserve was a general supplier of probation services, the updating of sewers, waste management, bus station refurbishment, hospital cleaning and security, motorway repairs and the like, and that the record therefore—as with probation services, of which it was the largest supplier—suggests that its expertise is relatively limited?
On the first point raised by the noble Lord, it is important to understand that what happened to Interserve was totally different from what happened to Carillion, for example. Carillion went bust. Pensioners took a hit. Creditors took a hit. People lost their jobs and there was discontinuity in services. None of that happened with Interserve. It was done with the approval of the pension trustees and the lenders, who wrote off the debt and put £100 million in. There was no discontinuity in services and nobody lost their job. That is important to understand.
The noble Lord asked whether we would have a general review. I announced that we have learned from past lessons; the document to which I just referred has 11 key policy areas in which we can come to better decisions and create a healthier outsourcing market.
The noble Lord is right that Interserve has a general portfolio—it protects the pandas in Edinburgh Zoo. The issue of probation services goes far wider than Interserve, as the noble Lord will know; the MoJ has announced a review of community rehabilitation services, with a view to improving outcomes and better integrating public sector, private sector and third sector providers.
(5 years, 9 months ago)
Lords ChamberI hope it enabled the noble Lord to reach his destination. The geophysical data available helps people in their everyday lives. Noble Lords waiting for a 159 bus can use their iPhones to see when that bus will be coming. Noble Lords who might have forgotten where they parked their car can use their mobile phones to identify it. Noble Lords who go jogging in the morning can see whether they are going faster or slower than other noble Lords on the same circuit. One has to recognise that there are real advantages from having this geophysical data. I would not be concerned if everybody knew the colour of my front door.
My Lords, during the Second World War—a period in which many members of the Conservative Party still appear to live—a suspicious foreigner taking pictures of houses would have been stopped by some doughty Britain such as Mark Francois and challenged in case he was a German. There were, and surely still are, some security questions to answer. Is it not proper for the Government to promise us a review of this? In the meantime, could the Minister tell us whether British map readers, satellite users and so on can discover as much detail about houses and critical national infrastructure in Russia and China as they now can about us?
On the first question raised by the noble Lord, I refer back to my original Answer. I said that part of this is about considering both risks and opportunities for current arrangements for access to mapping data. In this country, because of the excellence of Ordnance Survey, there are relatively few commercial marketing organisations doing this work. Most of them build on the data from Ordnance Survey and add value to it. What knowledge we have of critical installations in Russia is a matter for the MoD, rather than a humble Minister in the Cabinet Office. But in the light of the views expressed on both sides I will go back and double-check the information that I have been given.
(5 years, 10 months ago)
Lords ChamberMy Lords, we welcome Chinese inward investment into the civil nuclear projects in the UK, as the noble Lord mentions, subject to our robust legal, regulatory and national security requirements. We have the most robust and stringent requirements. My advice is that the project at Hinkley so far meets all the necessary requirements that the noble Lord referred to.
My Lords, are we working on our own in responding to the Chinese threat, or are we working with others? Would it not be sensible not only to work with our other Five Eyes colleagues but also to work with our European partners? If we have to find and develop alternative technology for some of these critical projects, clearly it might be much more sensible to work closely with other friendly governments.
Of course we should work closely with our allies, but it is just worth pointing out that some of our allies have a different legal framework. Australia, for example, has a law saying that telecom operators cannot procure equipment from a company that has extraterritorial jurisdiction. That rules out Chinese companies and many others. We do not have quite that same approach, but, of course, we learn from experience, from Australia, New Zealand, the United States and our other allies.
(5 years, 11 months ago)
Lords ChamberThe noble Lord is quite right. On 19 November, the Chancellor of the Duchy of Lancaster made a speech to the BSA outlining new arrangements. The noble Lord referred to some of them; we prefer to call them resolution plans rather than living wills. We have recently announced plans for all suppliers to draw up resolution plans in the unlikely event of a business failure, to ensure continuity of services and, where necessary, to enable another provider or the Government themselves to step in. Interserve has volunteered to lead the way as one of the first suppliers to design one of these resolution plans.
My Lords, in view of the substantial difficulties that major outsourcers are now going through, do the Government have a view on the minimum number of major outsourcing companies they need to maintain a competitive market for government outsourcing of public services?
The noble Lord raises a good point. We want to promote a healthy and diverse marketplace for public services so that not only the Government but local authorities and, indeed, the private sector can access these companies. For that to happen, we need to ensure that the existing ones have a robust financial regime. We are also trying to break down some of the very large contracts into smaller items so that smaller suppliers, who cannot bid for the major contracts, can bid for contracts that have been disaggregated. I hope this in turn will help to build up the marketplace that both he and I want.
(5 years, 11 months ago)
Lords ChamberThat suggestion by Sir Michael Hopkins was looked at by the Joint Committee and discounted for the reasons it has set out. As I said in response to my noble friend, the responsibility for Richmond House now rests with the other place because it is the legal owner. It will take on board the heritage issues which have just been mentioned. The building was, of course, substantially reconfigured in the 1980s before it became the headquarters for the Department of Health.
My Lords, do the Government have a plan for the development of Whitehall? In the past 25 years, three government blocks in and around Whitehall have been transferred to private ownership and converted into hotels. I wonder if they intend to move that further along Whitehall and take more departments out towards Marsham Street and Horseferry Road, or whether they think that the historic context of Whitehall departments grouped together is something that we ought to attach importance to at a point when the Department of Health has just had to move further away.
The decision to transfer Admiralty Arch on a 99-year lease was one taken by the coalition Government. I think it was the right thing to do because that building was no longer required by the Government. It was costing nearly £1 million a year to maintain, and it needed substantial renovation. It has now been tastefully renovated in the private sector according to the original designs by Sir Aston Webb. Moreover, the Government still retain the freehold. That was a sensible decision which was taken by the coalition Government. More broadly, the number of civil servants is reducing. There are still 78,000 civil servants in London but many thousands will be relocated outside London as part of our industrial strategy. Those who remain will require some 20 buildings instead of the 65 that we have at the moment. But the core Whitehall estate will be sensitively managed with advice from the Government Historic Estates Unit. And as the noble Lord said, some government departments are already doubling up. The Treasury, DCMS and HMRC are co-located, as are the Home Office and MHCLG.
(5 years, 12 months ago)
Lords ChamberI wholeheartedly endorse what the right reverend Prelate has said. The bishops seek to heal religious conflict and promote religious tolerance and inclusiveness. He quite rightly points out that on some of the major occasions in the country’s history—coronations, state occasions, other anniversaries and Remembrance Day—it is the Church that has a leading role. It would be sad if that link between Church and state was weakened, and it is not something the other faiths have asked for.
My Lords, I remind the Minister that William Gladstone’s Liberal Party had a programme of constitutional reform that included the disestablishment of the Church in Ireland, Wales and England, an elected second Chamber, the separation of the House of Lords’ judicial function into a Supreme Court, universal suffrage with a fair and open voting system and, for some, abolition of the monarchy. Not all of that programme of constitutional reform has yet been agreed, and I know there are many in this House who are opposed to a number of aspects of it. Meanwhile, can we not be grateful that our national Church—part of that continuing anomaly—does so much work to hold together local communities, in particular working with other faiths, including the new faiths within Britain, and to hold our national community together?
I agree with the noble Lord. Who we are as a country is defined by our Church and our state and the relationship that has been developing over 400 years between them. The Government value that relationship; we think it adds value to both sides and is welcomed by the country. We have no plans to destabilise that relationship.
(5 years, 12 months ago)
Lords ChamberVerify was started under the coalition Government—I think Nick Clegg was in charge of the Cabinet Office when it started—but there is a difference between providing a secure online identity, which Verify does, and an ID card which you have to carry with you. The key difference between Verify and an ID card system is that Verify is voluntary and the ID card was to be compulsory.
My Lords, I declare an interest, having worked in government with Nick Clegg on precisely that. I was very impressed by the Government Digital Service and frustrated by the extent to which departments across Whitehall resisted its moves to modernise government handling of data and abandon the separate legal frameworks under which departments manage and keep data. There was much discussion in the coalition Government about introducing a new Bill to update those rules to cope with rapidly moving technology. It has not yet appeared. Do the Government still have plans to do so?
The noble Lord knows much more about this than I do. It is the case that HMRC has its own service, the Government Gateway. Since it developed that service, Verify has come along. Obviously one would like to migrate from Government Gateway to Verify and encourage other departments so to do. I am not wholly convinced that we need legislation to do that—I will go back to my department in the light of what the noble Lord said—but we need to win the hearts and minds of government departments and persuade them to make more services available on Verify. That impetus is, I hope, gathering momentum.
(6 years, 2 months ago)
Lords ChamberI join the noble Lord in paying tribute to my noble friend Lady Browning, who chairs ACOBA. Until I read its annual report, I had not realised quite how much work it did—some 230 appointments in a year—or how complex some of the cases were. The noble Lord suggests that the system should be statutory. ACOBA has been non-statutory since it was established in 1975. I see two problems in making it statutory. First, it would be much more difficult to amend it and bring it up to date—it would become less flexible; at the moment it can be updated overnight. Secondly, if you make it statutory I suspect that decisions would take longer to deliver but, crucially, they would then be justiciable: they could be challenged in the courts. I think there is a real risk of crystallising a potential conflict between the rules of ACOBA and the common-law right that individuals have to earn a living in their own right.
My Lords, the Ministerial Code clearly states that,
“Former Ministers must ensure that no new appointments are announced, or taken up, before the Committee has been able to provide its advice”.
It goes on to say,
“Former Ministers must abide by the advice of the Committee which will be published by the Committee when a role is announced or taken up”.
Of course, there is a minimum three-month waiting period on resignation. Boris Johnson breached all these elements of the Ministerial Code, which explains the very strong tone of this letter. Should there not be some comeback when Ministers who have signed the Ministerial Code breach it within days of leaving office?
The noble Lord refers quite rightly to the stern rebuke from my noble friend in her letter to the Foreign Secretary:
“The Committee considers it to be unacceptable that you signed a contract with The Telegraph and your appointment was announced before you had sought and obtained advice from the Committee, as was incumbent on you on leaving office”.
The former Foreign Secretary should not have treated with such insouciance the rules, which had been brought to his attention and which he acknowledged he had read as recently as January this year. I am not an apologist for the former Foreign Secretary—that requires a portfolio of skills that I do not have. However, in his defence, the rules are designed to prevent a Minister, using the knowledge he acquires and the relationships he develops in the department, from rolling the pitch for a lucrative job subsequently in a related organisation. In the case of the former Foreign Secretary, after two years he reverted back to a career in journalism, a career for which his qualities are perhaps better suited. Therefore, while I do not in any way undermine the seriousness of his offence, what he did was not quite the revolving door that one normally sees—and the revolving door ended up with him back where he started.
(6 years, 4 months ago)
Lords ChamberMy Lords, I too welcome this statutory instrument. We now have a good and robust system of gathering national statistics and it is excellent that this degree of independence has been established and is being maintained. We all know, particularly in the debates on Brexit, that statistics are thrown about and are interpreted and misinterpreted. Given that, having an independent authority which does its best to hold those together is highly desirable. When I read first the Times and then the Daily Mail on the latest economic statistics and I am given entirely opposite interpretations of what is happening in the economy, I realise that it is impossible to reach a completely mutual understanding of the statistics, but at least this gives us a baseline that we must do our utmost to maintain.
I have to admit that when I looked at the full list, I was puzzled by it. The Explanatory Notes explain that some bodies are charities, others are regulatory bodies, while some are agencies of government departments. Some consumer bodies are included but I am aware that other such organisations are not. One research council is on the list, but not others, as is the case with some regulatory bodies. Perhaps the Minister can write to explain the rationale for inclusion on this list and why it is that some bodies appear on it while others do not. Is it because some have higher standards than others and that the standards of the latter bodies have not yet reached this level, or whether there is a different set of criteria because other government regulatory bodies such as Ofwat and Ofcom do not appear on it. That may reflect my limited understanding of the area, but having said that, of course we welcome the order as a way of reinforcing the independence and authority of our statistical system.
My Lords, I am grateful to the noble Baroness, Lady Hayter, and the noble Lord, Lord Wallace of Saltaire, for the interest they have taken in this instrument, the time they have spent scrutinising it and for their support. I apologise for my opening speech not being zippy. It would have been a real challenge to make this issue something that will appear on “Yesterday in Parliament”.
The noble Baroness, Lady Hayter, produced examples. I am sure that if I wanted to I could have gone back a little further to show that previous Administrations may have made similar mistakes. The important point that she made is that the system is working, all the correspondence is in the public domain for everyone to see and the Government are rightly held to account by an independent body.
The noble Lord, Lord Wallace, asked about the basis. Part of the answer to that lies in paragraph 7.3 of the Explanatory Memorandum:
“Bodies included in the list are those which produce, or will produce, national-level statistics which (a) inform the public about the social or economic position of the country, (b) are likely to be used to judge government performance or targets or (c) the government considers it is otherwise important that the public has particular trust in”.
I gratefully accept his suggestion that I write to him in more detail about the specific issues he raised. I commend the order to the House.
(6 years, 5 months ago)
Lords ChamberMy noble friend makes a valid point: there is a small number of noble Lords who can have some claim to democratic representation. Whether my noble friend would extend that argument to the argument that we should all be elected, I very much doubt.
My Lords, perhaps I may pursue the question asked by the noble Lord, Lord Garel-Jones, on foreign funds coming in to influence British politics. The Minister will recall that the Foreign Secretary suggested last weekend that the CBI’s receipt of EU funds discredited the remarks it was making. The CBI receives I think 1% of its funding from the European Commission. If one were to apply that test to Vote Leave, or perhaps even to the Conservative Party as far as Russian funding is concerned given the donations to it, it would raise awkward questions. Could the Government look at the requirement for even greater transparency in political donations, and donations to think tanks and charities of one sort or another, where foreign Governments and foreign sources, whether in the Gulf states or among right-wing millionaires in the United States, come in to affect British politics and society?
The noble Lord raises a serious issue. I do not know whether he has had the time to read the Electoral Commission’s report on digital campaigning, subtitled Increasing Transparency for Voters, but it makes recommendations on the specific areas he raised. There are a series of recommendations about foreign involvement in the democratic process and recommendations about transparency on where money has come from, with particular injunctions on the social media to make it clear, when they put advertisements on their sites, who has paid for them. This is an important issue and to some extent it is embraced in the report I just referred to.
(6 years, 7 months ago)
Lords ChamberI am grateful to the noble Lord, Lord Hunt, for his questions. I will try to answer all of them. On the question of a strategic approach, he will know that a new chairman, Ian Powell, was appointed last year and a new chief executive, Jon Lewis, in December. Jon Lewis has made it clear that he is in the process of putting together what he calls a “transformation programme”. Yesterday’s announcement was part of that process. The market’s response shows that it now has confidence in the new leadership team at Capita.
The noble Lord then asked why the Government are wedded to Capita. I have looked at the major central government contracts that have been awarded to Capita: 20% were awarded by the last Labour Government, just over 50% by the coalition Government and the balance by the current Government. So, it is not the case that we are more wedded than previous Administrations to the concept of using private providers and outsourcing contracts to get the best value for money. Appropriate contingency plans are in place for each contract. They depend on the nature of the contract—that is, whether others could immediately take over if there was a problem. Major contracts have terms that give contracting authorities the freedom to act in the event of supplier failure, including financial distress. I assure the noble Lord that appropriate contingency plans are in place for these contracts.
Turning to the noble Lord’s question about small providers and SMEs, the Government are anxious to break up these large contracts wherever possible to enable more SMEs to bid for them. During the Easter Recess, the Minister announced a whole raft of measures designed to boost opportunities for small businesses to gain government work. He is right to point out how important SMEs are. They provide 16 million jobs in this country and we are committed to ensuring that they are treated fairly by large suppliers. The Government have a target of HMG spend on SMEs. It was 25% but is now 33%, so I think we are at one on that issue.
On paying subcontractors promptly, Capita is currently paying 80% of invoice value to SMEs within 30 days and has plans to raise that to a higher percentage. I hope that deals with the thrust of the noble Lord’s questions.
My Lords, are the Government considering an overall review of the privatisation and outsourcing process? This is not just about Carillion and Capita. I have been reading about the problems that Serco has been going through and the recovery programme that it is now undertaking. I have been reading a little about the problems that G4S has had over the past few years in delivering some of the services it promised. There seems to be an underlying problem of large and diverse outsourcing companies, which are extremely good at drawing up contracts, managing to crowd out SMEs.
When I was a Minister, I remember being told that SMEs lose out because they are not as good at preparing contracts and spending the money in presenting them—so they end up as the subcontractors—and that we are therefore facing an oligopoly of diverse, major companies that successive Governments have allowed to grow, as the Minister said. What can be done to encourage more SMEs to become prime contractors? If I may say so, allowing more local authorities to take responsibility would help a great deal because more local suppliers would then be able to do so. The centralisation of these diverse outsourcing companies means that decisions are taken in London and small outsourcing companies in Leeds, Manchester and elsewhere end up as subcontractors. That is very bad for local enterprise. Are the Government now considering an overview of the sector and considering that competition policy needs to be rather more active here?
I have one final comment. I am very conscious that there is a problem of oligopoly in a number of sectors, with accountancy being a major example. Do we not need now to break up some of these oligopolies?
There is nothing ideological about this. Governments of all persuasions have found that outsourcing certain activities enables them to focus on the key functions of government. A recent survey by the CBI showed that overall there was a saving of roughly 11% by going through the process of outsourcing activities, engaging competitive markets and awarding the contract to the contractor best able to meet the objectives.
I entirely agree with what the noble Lord said about SMEs. I think there is a contract with HMRC which, when it came to an end, we broke down into component parts. As I said in response to the noble Lord, an additional measure that we have taken is that, when a main contractor is slow in paying the subcontractors, that main contractor will be deleted from the opportunity to bid for future contracts. That is a good example of the steps that we are taking.
Subcontractors will have greater access to buying authorities to report payment performances, and suppliers will have to advertise subcontracting opportunities on the Contracts Finder website. Without repeating what I said a moment ago, we have a target of driving up from 25% to 33% the percentage of government spend with SMEs on these major contracts.
(6 years, 9 months ago)
Lords ChamberSo far as Ministers are concerned—I answer for Ministers, not for Back-Bench Members of Parliament—the Minister concerned made a fulsome apology in another place on 2 February. He said:
“I accept that I should have corrected or dismissed the premise of my hon. Friend’s question. I have apologised to Mr Charles Grant, who is an honest and trustworthy man. As I have put on record many times, I have the highest regard for our hard-working civil servants. I am grateful for this opportunity to correct the record and I apologise to the House”.—[Official Report, Commons, 2/2/18; col. 1095.]
The noble Lord generously referred to my experience as a Minister. I think I have done 20 years on and off—probably more than anyone else in this House—but with many discontinuities, and I have never had occasion to question the impartiality or objectivity of civil servants. They have spoken truth unto power. They have quite often said things that I did not want to hear, but I would never accuse them of some of the things that have recently been levied against them. I think we should be proud of our Civil Service, and I reject the smears that have been made against it.
My Lords, the Minister will recognise that this is not just a British issue. The current attack by the President and his Administration on the FBI in the United States raises rather similar issues. Can the Minister assure us publicly that, when we say that civil servants are expected to be impartial, they are not expected to be impartial between evidence and supposition, and that when Ministers prefer faith or fantasy to evidence, civil servants have the right to point out that good governance depends on paying attention to the evidence, wherever one can find it?
The noble Lord is absolutely right. I quoted a moment ago the Civil Service Code, which includes objectivity. Objectivity is defined as,
“basing your advice and decisions on rigorous analysis of the evidence”.
It is these standards for which our Civil Service is renowned.
(7 years ago)
Lords ChamberWe want to reach consensus with the devolved Administrations on which powers go straight through and which are retained under what is called a common framework. If one looks at the communiqué that was issued at the end of the last meeting, one can see that real progress was made. I think the devolved Administrations concede that some powers will have to be subject to what is called a common framework, for the reasons that I outlined. Greater clarity on this will be obtained once we hit Clause 11 of the European Union (Withdrawal) Bill in the other place. There are a number of amendments along the lines of those referred to by the noble Lord on resolving that issue but, at the moment, we believe that the Joint Ministerial Committee is the right place to try to seek agreement quickly. It may be possible to release some of the powers immediately we leave the European Union, if good progress can be made.
My Lords, do the Government recognise that the interests of the English regions, which are different from those of London and the south-east, risk being pushed to one side in dialogue between the devolved Administrations and the central Government in London? The noble Baroness, Lady Eaton, has already touched on this. The population of Yorkshire is slightly larger than that of Scotland; the economy is as large. As a region it will be affected quite severely by the loss of EIB funding and a whole range of other things. What mechanism do the Government envisage to bring the interests of England outside the south-east into this dialogue?
(7 years, 5 months ago)
Lords ChamberI agree with the noble Baroness that we need to have another look at the exemptions that Northern Ireland has from certain parts of electoral law, in particular on declaring sources of expenditure. We have a new First Secretary of State, and I am sure he will be interested in taking this matter forward in discussions through the usual channels.
My Lords, does the Minister agree that the time may now have come to make sure that transparency of income for campaigning charities is extended? It is striking that there are a number of charities, some Muslim, that the Charity Commission has been concerned about, but right-wing bodies such as the Taxpayers’ Alliance and the Global Warming Policy Foundation do not declare their large donors. It would be useful, appropriate and an extension of democratic transparency if those rules were changed to ensure that donations were necessarily declared in their annual reports.
I am grateful to the noble Lord, who piloted the relevant legislation through this House in 2014. I mentioned a moment ago the House of Lords Select Committee on Charities report, Stronger Charities for a Stronger Society. Chapter 3 is on improving governance and accountability. The Government will look at the recommendations in that chapter, to which the noble Lord referred. In due course, we will respond to the Select Committee report. There has been a slight discontinuity because of the general election.
(7 years, 5 months ago)
Lords ChamberMy Lords, the country has already fought two general elections on out-of-date boundaries for reasons that are familiar to the noble Lord. If we followed the noble Lord’s suggestion and started again with a new register, there is a risk of a third general election on boundaries which were set in place in 2000. That would be an affront to democracy.
My Lords, fair and equal representation is clearly one of the principles. The principle of a single-member constituency also refers to the importance of place and community. Are we now abandoning that, as seems to have been done in the proposals which we are developing, and following the American system, where boundaries are drawn up entirely according to which party has the advantage in each state and without reference to local communities? Will we still try to hold on to the principle that representation should be based on towns, communities and counties?
We are implementing proposals put on the statute book by the then leader of the noble Lord’s party, who was Deputy Prime Minister. He put on the statute book the legislation implementing the reviews which are currently being delivered.