Finances of the House of Commons

Debate between Viscount Thurso and Geoffrey Clifton-Brown

Tuesday 11th November 2014 Commons Chamber

[John Thurso]

I concur with my right hon. Friend. It is a saving that has made life better for us, which is our objective.

Major savings have been made through reducing the amount of printing undertaken. For example, some lightly used publications are now only available online and most Committees have agreed to distribute papers electronically. The House is aiming for a “digital first” approach, and the Committee expects this to be a source of further financial savings in the coming years.

As someone who spent his professional life in the hospitality industry before entering this place, it gives me particular pleasure to report that significant progress has been made in the past few years in reducing the net cost of catering. My right hon. Friend referred earlier to paragraph 26, which relates to catering, and I fully accept that because of the hours we work and the way we need to be serviced, it is not possible to make the same profit as if we were a fully operational food and beverage operation, but that should not stop us seeking to be as effective as possible in the delivery of the service.

In 2009-10, at the end of the last Parliament, the net cost of catering and retail services was £5.7 million. In the current financial year, at an equivalent point in the electoral cycle, it is forecast to be £2.7 million. That exceeds the target set of reducing the net cost to under £3 million by 2015. I particularly compliment my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst), the Chairman of the Administration Committee, and his Committee on all the work they have done in this area. The savings have been achieved by good old-fashioned sound management of costs and by benchmarking, and it has been achieved at a time when the House has moved to being a living wage employer and has got rid of zero-hours contracts. The staff and the unions, as well as the management, should be applauded for their help in that.

I never expected to see it in my lifetime, but we are now making great progress in working together with the other place. Under a joint procurement process, procurement for the House of Lords, the House of Commons and Parliamentary Information and Communications Technology is all operated by one dedicated service that must produce savings for all three.

The report also considers the prospects for the next four years. In June, the Commission agreed that forward plans for up to 2018-19 should be based on an assumption that the budget for core activities is flat in real terms—that, taking account of Government pay policy and the target for consumer prices inflation, the expenditure envelope for the administration estimate is assumed to increase by 1% in 2015-16 and by 2% thereafter. I stress that this is a working assumption, not a target; actual budgets will be set annually, and clearly it will be for our successor Parliament to decide what it wishes to do, but this establishes a good working base from which the management can proceed.

Even on that relatively generous assumption, it is projected that further savings will be required in 2016-17, 2017-18 and 2018-19. The House service will continue to look for opportunities to make further efficiencies and ensure value for money in the delivery of services through a continuous improvement process that focuses on making services more effective by improving their quality, increasing productivity, cutting costs—or, in the best of all worlds, all three. That most often takes the form of process reviews that engage staff in a continuous review of their work and harness their own creativity to solve problems. There are numerous examples of this, but the goal is to make small savings in time and effort, while maintaining or improving services.

In setting the financial remit, the Commission agreed that some new activities could be undertaken without necessarily having to be financed from within the existing budget. The two main areas are, first, scrutiny and related functions—the Committee received a bid from Chamber and Committee Services regarding Select Committees that we were minded to advise the Commission to accept—and, secondly, the resource consequences of major building refurbishment.

The Commission is keen to deliver a resolution of the House passed in 2007 that there should be dedicated space for education visitors. Construction has now started on a new education centre in Victoria Tower gardens that will accommodate 100,000 children a year, as opposed to the 45,000 we can currently accommodate. In addition, the facility will reduce pinch points, such as the Portcullis House entrance, and release the Macmillan room for other uses. It is due to open, we hope, in 2015.

Following the Wright Committee report at the end of the last Parliament, Select Committees have been one of the success stories of the Parliament, and the Liaison Committee is keen that this success be built on. As I just mentioned, the Finance and Services Committee is recommending a modest increase of £900,000 in the resources available to Select Committees, either in the form of additional staff or by providing additional budget. The Committee is also due to consider a bid from the Library that would enable it to provide more research support.

Members will be aware that the two Houses need to decide how the backlog of work required on this building is to be tackled—a project known as the restoration and renewal programme for the Palace of Westminster. R and R will be a major infrastructure programme that will not start in earnest until after 2020—well beyond the time frame of the budgets we are considering today. An independent options appraisal has been commissioned and is due to be published shortly after the election. Current thinking is that the two Houses might be asked to take a decision on their preferred option in spring 2016.

In the meantime, other buildings we occupy, including 1 Canon Row, the Norman Shaw buildings and 1 Parliament street, require significant refurbishment. This work will not only tackle the day-to-day problems that many colleagues have encountered—leaking toilets, rodents and other problems—but optimise the accommodation we occupy outside the Palace and complete that work before R and R begins. I warn hon. Members, therefore, that in the next Parliament many colleagues and staff will need to move offices as work on the various buildings proceeds. Office moves by House staff to facilitate this process and to co-locate Committee and Library staff have already begun.

Although much of the refurbishment work is capital spending, it can result in quite large accounting changes, largely because heritage and security issues mean that the value of refurbishment is not fully reflected in an increase in the book value of the buildings and that therefore a charge needs to be made. The Commission’s remit does not require the substantial notional charges or other resource consequences of the building work, such as decant space, to be met from within the core budget.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

Given that the northern estate refurbishment project is likely to cost about £500 million and, on these capital budgets, is not likely to start in earnest until the end of next year, does my right hon. Friend think there is a danger that this big refurbishment project, the specifications for which are not yet even fully known, could run into the period when we will want to start the R and R project and that therefore the decant space, let alone the budget, might not be available?

[John Thurso]

My hon. Friend has highlighted a clear and obvious red risk to the R and R programme. The management are well aware of the risks, and discussions are already taking place about how they can be mitigated, but I know from the conversations he and I have had with Facilities staff that the critical nature of completing the northern estate prior to commencing R and R has been fully taken on board. The fact that they have taken it on board does not mean that they will make it happen, but if we have not at least understood the risks, we cannot take the mitigating action. At this stage, that is the best answer I can give.

[Geoffrey Clifton-Brown]

The full extent of the project is not yet known—for example, we do not know whether there will be a broadcasting studio in the new refurbishment—so does my right hon. Friend agree that it is now urgent that this work be undertaken so that we at least have a project on which proper quotes can be obtained? The delivery mechanism is not even known yet, and time is beginning to creep on for this very big project.

[John Thurso]

I understand that the Commission has reviewed the paper and that the initial decisions that needed to be taken to start that work have all been taken. As my hon. Friend knows, the decant space, which would have been one of the biggest blocks, has been acquired and is being fitted out and made available. My understanding is that work properly to scope the project is now under way. Clearly, in order to ensure the best value for the money spent, the work undertaken in scoping the project will reveal whether or not overall savings are available. At the moment, the budget is at its maximum because, quite properly, it has all the contingencies that could be put in. One hopes that proper scoping, including the point my hon. Friend raised, will lead to a tighter budget going forward and the work being completed on time. As he and I both know, however, public procurement is littered with projects for which aspirations were expressed that were not met. Hopefully, we have all learned lessons from that and will make sure that we deliver on time and on budget.

[John Thurso]

Obviously, the cost of the options appraisal that is currently going through is, in part, being paid for out of the current estimate and might well be paid for in part from a future estimate, but it is in the budget and properly accounted for. I believe that we are talking about a total of around £7 million. If I am wrong, I am sure I will get inspiration in due course and come back to it. I might even read my vast file and come up with the figure before the end of the debate.

It has been said that spending £7 million on working out what needs to be done is a great deal of money. All my experience of working in the private sector on the refurbishment of large buildings and all I have observed from big projects such as nuclear decommissioning is that the more professional money spent in advance in scoping a project, so that it is really understood, the more effective the actual spend. I suggest that every pound spent now on working out what the problems are is at least a pound spent going forward. If I am wrong, I will come back to the hon. Gentleman.

In closing, I would like to commend again the professionalism of the House service and all those who work for us, and the tremendous improvements that have taken place in management systems and how things have been done over the years that I have been involved in the Finance and Services Committee, the Audit Committee and other bodies. This is the last occasion during this Parliament on which we will discuss the finances of the House. In commending the motion to the House, and in addition to the tributes I have paid on behalf of the House as a whole, I would like to express my personal gratitude for the support and help that I have received from the team, many of whom are watching us today. It has been a pleasure and a privilege to see this process through. The fact that there are in attendance fewer hon. Members than those who put their names down to speak today does not indicate any disinterest in the process, but is perhaps a reflection of the fact that we now publicise the plan so well that they do not feel it necessary to be present to suggest amendments to what we have put before them.

[Geoffrey Clifton-Brown]

I am grateful to my right hon. Friend for giving way to me a last time. He will be glad that he has given way this time because I would like to commend him for the way in which he has chaired our Committee so professionally. I have been a member of it for many years, and I think that the chairing of it in this Session has been outstanding.

[John Thurso]

I am very grateful, and that will do as a peroration. I commend the motion to the House.

Finances of the House of Commons

Debate between Viscount Thurso and Geoffrey Clifton-Brown

Thursday 21st November 2013 Commons Chamber

[John Thurso]

I share my right hon. Friend’s views. I am signalling to the House that this should be considered in the same measured manner in which we have looked at other things. If we cut resources in places because we can do things more effectively, we must be able robustly to state why it is necessary to increase resources where we might wish to do so, and how that should be done.

Well ahead of the next planning round, which will be in a year or two, I am signalling that work should be done on Select Committee resources, and I encourage Select Committee Chairs to engage with the Liaison Committee and elsewhere to look at the resources properly and ensure that Parliamentarians’ key job of scrutiny of the Executive and some outside bodies, which we do through Select Committees, is undertaken.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

May I preface my question by saying what an excellent job my hon. Friend does in chairing the Finance and Services Committee? Will he confirm that one of the overriding tenets of our decisions on these cuts, which have not been easy, is that they should not affect the way in which Members of Parliament do their job? We have to look carefully at Select Committee expenses because they should not be used as a reason to restrict their effectiveness.

Capital Gains Tax (Rates)

Debate between Viscount Thurso and Geoffrey Clifton-Brown

Wednesday 23rd June 2010 Commons Chamber

[Geoffrey Clifton-Brown]

I am very grateful for that intervention. I have always been a supporter of nuclear power, and I am one of the very few Members who have been to Chernobyl and survived, so I can see what goes wrong in the nuclear sector. However, with modern technology—I say this carefully—I can see that the nuclear sector has an important role to play in the range and mix of our power generation.

The Labour Government left us with another really dire legacy, however, because if we do not introduce nuclear power generation to this country I do not see how we can keep the lights going in the next 20 years—[Interruption.] The Liberal Democrats had different views, but they have looked at the problem and signed up to a nuclear power programme, and I congratulate them on that, because it is the right thing to do. We in this House should not come up with ideological dogma; we should all look at the facts and see what is the correct thing to do, which is—[Interruption.] It is all very well the hon. Member for Penistone and Stocksbridge (Angela Smith) pointing at the Liberal Democrats, but we in the Conservative party have had to swallow things that we do not like. We have looked at the facts and seen the correct thing to do. Therefore, I support nuclear power.

[John Thurso]

My hon. Friend will know of my long-term support for nuclear power, which I expressed often in the House in previous Parliaments. However, the critical thing is to be in favour not of nuclear power, but of a proper engineering and scientific-based assessment of how to ensure the lowest carbon energy, and if that leads us to nuclear, that is the correct answer.

[Geoffrey Clifton-Brown]

As always, my hon. Friend’s wise words are correct. Nuclear power is not only an efficient way of generating energy, but a clean way. We have to use the very latest technology to deal with the nuclear waste that is produced, but I am absolutely certain that if we adopt an open mind and let our scientists get to work, we will find better and better ways of dealing with the waste that nuclear power stations produce. I welcome my hon. Friend’s support on that.

Innovation and exports are just beginning to return, and I am sure that hon. Members from all parts, if they have listened to businesses in their constituencies, will have had that experience. I have a wonderful firm in my constituency, a small FTSE company called Renishaw. It is the world-beater in measuring technology—metrology—but unfortunately it had to lay off several hundred people during the worst of the recession. I am pleased to report to the House, however, that in the past month or so it has begun to re-employ people. That is good news, because we must all work hard on measures with regard to how we employ the maximum number of people in this country. There is nothing worse than people who want to work but are unemployed—and unemployed through no fault of their own. We should concentrate on the terrible figures for 16 to 25-year-olds not in education, employment or training—the so-called NEETs—who are without jobs at the moment, because we have inherited a shocking waste of young talent.