(11 years ago)
Lords ChamberOne of the issues that we wish to address is the fact that the certification officer has a passive mode so that anybody who wishes to make a complaint can do so, but only if he is a union member.
As I was saying, the Government are keen not to inhibit the operation of small unions, so those with 10,000 or fewer members will be required to submit an annual self-certification that their membership list is up to date.
The Bill will also enable the certification officer proactively to investigate possible discrepancies in the register. He will be able to require documents to be submitted and to appoint an inspector. If a union is non-compliant with the duties in Section 24, the certification officer may make a declaration and a civil enforcement order. Unions will always be given an opportunity to make representations before a declaration or order is made.
I look forward to these measures benefiting from the scrutiny of noble Lords. The Government are committed to implementation which is both effective and proportionate, and we will support the transition by producing guidance. I am aware of concern regarding the impact of the proposals, and I hope to reassure noble Lords now. First, I reiterate that the Government are not challenging the vital role that unions play representing their members’ interests and contributing to public debate.
Secondly, I reassure noble Lords that these proposals do not breach human rights to privacy or freedom of association. If a union is non-compliant with duties under Section 24, it is important that every opportunity is given for that to be remedied. The investigation powers will be proportionate: the certification officer can require information only where he deems there is good reason to do so. Existing safeguards in the Data Protection Act and the Human Rights Act will apply as they do elsewhere. The Bill also includes additional protections to prevent the unauthorised disclosure of member data. These provisions will not allow employers unauthorised access to such information.
I believe that these proposals are reasonable. By proactively providing an annual assurance, unions will give even greater credibility to the important voice that they have in public debate. I also hope that unions themselves will recognise the benefit: many unions have up-to-date registers but there is anecdotal evidence of doubt that that is always the case. The annual assurance process will bring greater credibility in future about the result of ballots; for example, in electing a new general secretary.
This Bill will shine the light of transparency on those represented by consultant lobbyists as they meet key decision-makers in government. This Bill brings further clarity on the influence third parties have on the outcome of elections. This Bill will provide assurance that trade unions have accurate membership records, given that their influence extends far beyond their members. This Government believe that transparency generates accountability.
I thank the noble Viscount for giving way. I am just seeking clarification. I do not need the answer today, but perhaps the Minister can look into this. I recall there were some cases where lobby journalists who held credentials as journalists doubled up as lobbyists and perhaps serviced some all-party groups. That is a very bad practice and something that should not continue. Can the Minister tell the House whether this practice would be allowed under this legislation?
I thank the noble Lord for that very specific question. I think that it makes sense for me to come back with a full answer.
To conclude, the Government believe that transparency generates accountability and that accountability allows the public to hold public bodies to account. This Government want to be open, transparent and clear on who influences the political system. I commend the Bill to the House, and I beg to move.
In answer to my noble friend’s first question about the appetite of shareholders, the indications are that there is clear interest in purchasing shares in Royal Mail. I would not want to go further, because it is not my role to speak on behalf of investors, but my noble friend makes a very good point. The most important thing for Royal Mail is to have flexible access to capital to allow it to innovate and capture market opportunities, such as the strong growth in the parcel market driven by online shopping, as I mentioned earlier. That is what an IPO will deliver for Royal Mail. It should not have to come cap in hand to Government and compete with schools and hospitals when it needs to innovate or commit to future investment.
The second question concerns the IPO route as opposed to other methods. It is true to say that, having got to this point over a good number of years, the IPO route was clearly the preferred route. I am certain that other options were looked at. My noble friend’s question was, if the IPO route were to fail, would other methods be used? I do not wish to be drawn on that or to speculate, only to say that it is our firm belief that the IPO route is the right route and that is the route that we will be following.
The final question concerned employees. I am delighted to hear that my noble friend is very much in favour of giving 10% of shares free to employees. I will not be drawn on the actual valuation, because a prospectus will be produced in due course, which will set out the terms of the IPO. The valuation will, of course, depend on investor demand and market conditions at the time. What my noble friend has read in the papers, as he will probably know, is pure speculation.
My Lords, I think that the Minister will agree that many of those who retired from the Royal Mail worked very hard to get it into the very good shape that it is in just now. Has any consideration been given to allowing those who are in receipt of a Royal Mail pension—in other words, former sorting staff and postmen and postwomen—to buy shares? My thoughts go to the fact that in my previous constituency—although it is known as Glasgow North East, it was known as Springburn at one time—we have a lovely sorting office, which I pass every week when I come to the House of Lords. It is known as the St Rollox sorting facility. Several hundred people work there. They have changed their hours, adjusted to the new situation and worked very hard. I would be deeply saddened if any organisation took over and vacated the site at St Rollox and went somewhere else, which would mean that the loyal men and women—some of whom I am related to—who perhaps get up at four or five in the morning and walk to their work in the Springburn area, would lose their jobs. Some of the newer delivery companies, such as TNT and FedEx, tend to go into great industrial estates, but the only way to get to these facilities is by private transport and not public transport. Has any consideration been given to securing jobs in the communities in which they already exist?
I thank the noble Lord for those two points. His first question was whether it might be considered that shares be given to those who have worked for a long time for Royal Mail and that their hard work might be rewarded. It is fair to say that the employee share scheme is designed to secure the future success of Royal Mail and the universal service and we therefore consider it appropriate to include only the current workforce, who deliver the universal service and can influence and benefit from the future success of the company. Share awards will be made only to those employees who have been in employment for the relevant qualifying period, which happens to be a number of months. I listened carefully to the noble Lord’s second point; I know Springburn, so it is familiar to me. I am sorry to hear that there has clearly been some disruption to individual lives regarding the transfer of the sorting office. My only response to that is that it is very much up to the Royal Mail management to—
Maybe I have given the wrong impression. Everyone is fine in St Rollox. My worry is that, if some of these new companies come in, they might close the facility and move the machinery somewhere else.
It is useful to have the clarification from the noble Lord. In that case, my point is still the same. It is very much up to the Royal Mail management to look very sensitively at those personnel issues. I have no doubt that they will do that if there is a particular move in that way. Change, as we know, is always difficult and it affects individuals. The noble Lord makes a very good point.