Phone Hacking

Alun Cairns Excerpts
Wednesday 13th July 2011

(13 years, 4 months ago)

Commons Chamber
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Lord Cameron of Chipping Norton Portrait The Prime Minister
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Many people on the Press Complaints Commission have tried to make it work. I would argue that it has made improvements in recent years from when it was originally established, but when we look at what has happened and the trail of reports, problems and the rest of it, the conclusion we must come to is that the PCC did not do enough to pick that up. Reform is therefore needed. That is one of the starting points for the inquiry.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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Does the Prime Minister regret the Opposition’s inaction over such serious and grave issues over a number of years? If they are now to succeed and maintain public support, they need to be above party politics, and political opportunism should be shunned and ignored.

Lord Cameron of Chipping Norton Portrait The Prime Minister
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My hon. Friend is right. We need an all-party approach, as far as possible. Sometimes all-party approaches can become a bit of a conspiracy, so we have to make sure that that is not the case. A basic level of agreement exists about the inquiry, the terms of reference, and the need to change the regulatory system. If we can push forward in that way, there will not be too much regulatory arbitrage, so to speak, which is a danger in such a situation. I propose to keep in close touch with the leader of the Labour party about this.

Public Bodies Bill [Lords]

Alun Cairns Excerpts
Tuesday 12th July 2011

(13 years, 4 months ago)

Commons Chamber
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Lord Maude of Horsham Portrait Mr Maude
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The guidance has been tightened up considerably. Taxpayers find it quite offensive that a body that is not democratically accountable should use taxpayers’ money, in some cases, to hire lobbyists to lobby Government to give it more taxpayers’ money. We have taken urgent steps to ensure that that does not recur.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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Will my right hon. Friend give way?

Lord Maude of Horsham Portrait Mr Maude
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I will give way once more; then I really will need to make progress.

Alun Cairns Portrait Alun Cairns
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I am very grateful. I could not agree more with my right hon. Friend about lobbyists, but does he also accept the danger that many public bodies will start to employ internal lobbyists directly rather than commissioning and contracting them? That would also be a waste of money.

Lord Maude of Horsham Portrait Mr Maude
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My hon. Friend’s point simply amplifies the case for the presumption that we are instituting in the Bill that there needs to be a really compelling case for a state function being carried out in a way that is not accountable. That is the purpose of the Bill.

--- Later in debate ---
Susan Elan Jones Portrait Susan Elan Jones
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They probably took as much account of those factors as they appear to have taken of everything else involving S4C.

Alun Cairns Portrait Alun Cairns
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May I return the hon. Lady to her point about funding? She claimed that S4C had suffered a 94% cut, but if we are to have a sensible debate about this important issue, should we not recognise the reality, which is that it will be subject to cuts of 6% per annum for the next four years? That is much better than what is happening to many other public sector departments, and should be sufficient for it to deliver its objectives. Does the hon. Lady regret the fact that over the last 13 years there has not been adequate scrutiny—

Lindsay Hoyle Portrait Mr Deputy Speaker (Mr Lindsay Hoyle)
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Order. I believe that the hon. Gentleman hopes to catch my eye later. He cannot make his speech now.

--- Later in debate ---
Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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Thank you for giving me the opportunity to contribute to this debate, Mr Deputy Speaker. Although, as been said, the Bill is a piece of enabling legislation, it goes to the heart of the Government and their objectives. It will enable Ministers to make the necessary changes to reform public services and bring organisations to democratic accountability, and it paves the way to bring significant savings.

It is ironic that the Bill is being opposed by the Labour party. In his memoirs, Tony Blair made several references to having regretted the delays in reforming public services during the early years of his government. There are several quotes that I could mention, but it is worth highlighting his thoughts about his previous comments that it was not complex institutional structures but outcomes that mattered. He said:

“Unfortunately, as I began to realise when experience started to shape our thinking, it was bunkum….How a service is configured affects outcomes.”

It is also worth noting that much of his frustration related to the time and delay involved in making reforms. This Bill would have met Mr Blair’s calls in hindsight.

John McDonnell Portrait John McDonnell (Hayes and Harlington) (Lab)
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We’re all Blairites now, are we?

Alun Cairns Portrait Alun Cairns
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I will give way to the hon. Gentleman if he wishes.

It is unlikely that Mr Blair and I would agree on the nature of reforms, but this legislation paves the way for Ministers to make necessary changes with appropriate scrutiny—without the delay that Mr Blair talked about—by giving them the mechanisms to do so. I am sure that hon. Members will have a soft spot for one or two of the bodies listed in the schedules, despite wanting to see the reform of such public bodies. We might even be drawn into trying to defend those institutions. Such an approach would be fair if schedule 7 of the original Bill remained and if the amendments made in the other place had not been accepted by Ministers. To give the Government credit, they have sought to listen to concerns and have accepted the threat that schedule 7 posed to lack of scrutiny. However, there must always be a balance between the Government having their way and the opportunity for appropriate scrutiny. The original schedule 7 did not necessarily achieve the equilibrium that we are looking for; I am pleased that it has been removed.

It is hard to believe that the quango state had grown to 901 bodies under the previous Administration. In their desire to manage controversies, a new agency would often be established to show that something was being done. Some might even argue that the agencies were useful bodies to which to retire former colleagues. The case for winding up or reorganising their numbers and purposes is overwhelming.

Lord Beamish Portrait Mr Kevan Jones
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I agree with the hon. Gentleman, but the worst culprit for packing quangos was the previous Conservative Government. If he cares to do his homework, he will find that one quango we invented, with which I have had a few run-ins, is the independent Appointments Commission. It took out of politicians’ hands altogether the appointment of people to quango boards.

Alun Cairns Portrait Alun Cairns
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I am grateful to the hon. Gentleman for his intervention, but it was the previous Conservative Government who cleaned up the appointments process to ensure that there was transparency in selection. I point to the Independent Parliamentary Standards Authority as one of the worst examples of a Government merely reacting to public concerns without thinking through the consequences in a proper, deliberate way; it has given rise to many complaints from this House, and there is also the issue of the additional costs of that agency.

Lord Beamish Portrait Mr Jones
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If the hon. Gentleman will cite examples, I wish he would do his homework. IPSA was supported by Members in all parts of the House; the strongest advocate for it was the current Prime Minister.

Alun Cairns Portrait Alun Cairns
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I am grateful for the hon. Gentleman’s intervention, and I accept the point about all-party support, but the point is the knee-jerk reaction of the Prime Minister of the day, who took the decision without providing for appropriate scrutiny. The proposal was rushed through the House without the then Opposition having an opportunity to make their case. I need to make progress, because of the time. I want to come on to some of the points made earlier.

A word of caution: merely merging individual bodies with a Government Department is not necessarily the right thing to do. There must be reform and enhancement. I am grateful to my right hon. Friend the Minister for the Cabinet Office and Paymaster General for talking about the need for reform when he opened the debate. I speak from experience of the so-called bonfire of the quangos in Wales some years ago. For purely political reasons, the Welsh Assembly Government abolished the Welsh Development Agency and the Wales Tourist Board, among many other organisations. That was welcomed by Labour, Plaid Cymru and Liberal Democrat politicians at the time. The claim was that there would be better democratic accountability, but the reality was very different. Simply merging the organisations without reform meant that agency staff became civil servants, and the expertise gained over many years was stifled by the bureaucracy of the civil service. Those events started almost seven years ago to this day, and those very people who were the strongest cheerleaders for the winding up of those bodies are now calling for their re-establishment.

I am certainly not opposed to the lists in the schedules, or to the need for Ministers to reform and reorganise. I strongly agree with the objectives of the legislation, but caution against winding up for winding up’s sake. I would also underline the need to make reform part of the process. There must be a wider reforming agenda to improve services.

In the final couple of minutes available to me, I want to talk about S4C. The hon. Member for Clwyd South (Susan Elan Jones) made a pretty disingenuous contribution. To talk about a 96% cut to funding certainly is not accurate. S4C will receive a 6% funding cut per annum over the next four years. That is very different from the sort of figures that she talked about. Furthermore, all the demands made by supporters of S4C have been met by the Secretary of State for Culture, Olympics, Media and Sport. I shall go through the primary ones in turn. The first was about the importance of long-term funding. I was delighted that in the written ministerial statement published on Monday, the Government said:

“The Government are committed to ensuring that S4C will be funded at a level sufficient to ensure that it can fulfil its statutory remit and we intend to put this expectation on the statute book so that it is a legal requirement.”—[Official Report, 11 July 2011; Vol. 531, c. 2-3 WS.]

Certainly, that issue has been resolved.

Secondly, the need for independence, both operational and editorial, has been accepted by the Secretary of State for Wales. Thirdly, on the issue of the arrangements with the BBC, of course the provisions have to be in the Bill to secure the very independence that we have been talking about, and the long-term funding arrangements for which everyone has called. Those who are critical on the subject of S4C, and the strongest champions of the channel, are not equally critical when it comes to Radio Cymru, for which the BBC is also responsible, so there is significant inconsistency in the argument that is made.

Finally, it is ironic that the retail prices index link was part of the fault. Many S4C Authority members have shown arrogance over the past year; they felt that they had the right to do things irrespective of the attitude of viewers, whose numbers have been falling for the past five years or more. It is time to act, and I am delighted that the Government are doing so.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
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I want to concentrate on the very worrying impact that the Bill will have on S4C, an institution of paramount importance to my country. I regret to say that I have a slightly different opinion from the hon. Member for Vale of Glamorgan (Alun Cairns). There is no doubt that the UK Government have dealt with the issue in a haphazard manner. They clearly failed to understand the importance of S4C to Wales. Twenty-four bodies from Welsh civil society have written to the UK Government, asking them to change their plans; thousands of people have protested on the streets; and hon. Members from Wales have had countless pieces of correspondence from concerned constituents.

The position of my party is that S4C should not be included in the Bill at all, and that the arrangements should be dealt with in a future broadcasting Bill, following an independent review. That was the position of all four political parties in the National Assembly for Wales, including the Conservatives and Liberal Democrats. Even at this late stage, that would be our preferred outcome. However, we are where we are, and I will endeavour to attempt to improve the Bill before us, as will my hon. Friend the Member for Arfon (Hywel Williams) in Committee.

Ministers will be aware that the Select Committee on Welsh Affairs undertook a detailed investigation into S4C. It is right and proper that I pay tribute to the Chair of the Committee, the hon. Member for Monmouth (David T. C. Davies), who managed to produce a report on which there is substantial consensus across all four parties on the Committee. We await the Department’s reply, but I would like to concentrate on the issues that are of critical importance. S4C will face substantial cuts to its budget over the spending review period. If my sums are correct, the Department has managed to reduce its liability by more than 90%.

Alun Cairns Portrait Alun Cairns
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Will the hon. Gentleman give way?

Jonathan Edwards Portrait Jonathan Edwards
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I will answer the hon. Gentleman’s question before he asks it: S4C’s funding will fall from around £100 million this year to £83 million by 2014-15; £76 million of that will come from the BBC, and £7 million from the Department.

Alun Cairns Portrait Alun Cairns
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I am grateful to the hon. Gentleman for giving way, but does he not accept that the outcome leaves S4C in a pretty strong position, financially? It will receive a 6% cut over each of the next four years, which is a much lesser cut than those to most spending Departments across Government. Furthermore, independent television producers have welcomed the outcome, saying that the cuts are certainly achievable, within the sums in question.

Jonathan Edwards Portrait Jonathan Edwards
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I am grateful for that intervention, and the hon. Gentleman leads me on to my next point, which is about one of the key recommendations of the Welsh Affairs Committee report. I would like the Government, as part of the Bill—and the future funding formula for S4C, which was announced yesterday—to state clearly that cuts will be comparable to those for other public service broadcasters. That would appease many in Wales.

The Select Committee report also called on the UK Government to safeguard the funding for the channel beyond 2014-15. We argued that without long-term certainty of funding, the channel would not be able to plan its future commissioning strategy. We called for a long-term funding formula enacted in primary legislation. I therefore welcome the written statement yesterday as a positive step forward. The devil will be in the detail, but my colleagues and I look forward to working constructively to build on yesterday’s announcement, which in our view would have to be based on some sort of calculation inflation.

As a party we have major concerns that S4C will mostly be dependent on funding via the licence fee. Our preference would be for a direct funding stream. If the Department is intent on funding S4C via the BBC, the licence fee should be top-sliced. As my right hon. friend Lord Wigley said during the passage of the Bill in the other place:

“He who pays the piper calls the tune.”—[Official Report, House of Lords, 28 March 2011; Vol. 726, c. 1005.]

If S4C does not have total control over its own budget, its financial independence will be shot to pieces.

Ministers might be aware that the Broadcasting Entertainment Cinematograph and Theatre Union, the National Union of Journalists, the Writers Guild of Great Britain, Equity, the Musicians Union, and Cymdeithas yr laith Gymraeg have all jointly called for the resources available to S4C to be increased by raising a levy on private broadcasters, drawing on best practice in other countries.

Oral Answers to Questions

Alun Cairns Excerpts
Wednesday 18th May 2011

(13 years, 6 months ago)

Commons Chamber
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Lord Swire Portrait Mr Swire
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The hon. Gentleman will be aware that justice is a devolved matter. I believe that my right hon. Friend acted extremely swiftly and that he was right to do what he did. The legal process will take its usual course.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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7. What recent assessment he has made of the state of the Northern Ireland economy.

Owen Paterson Portrait The Secretary of State for Northern Ireland (Mr Owen Paterson)
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Like many in Northern Ireland, I believe that we need to rebalance the Northern Ireland economy and boost private sector growth and investment. The Government will work closely with the Northern Ireland Executive to help make Northern Ireland a beacon for foreign investment and growth.

Alun Cairns Portrait Alun Cairns
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Enterprise zones in England are an exciting opportunity to grow the private sector, and I hope they will be delivered in my constituency by the Welsh Assembly Government. Will the Secretary of State update the House on what progress is being made in Northern Ireland to deliver such an innovative opportunity?

Owen Paterson Portrait Mr Paterson
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I am grateful to my hon. Friend for the question. I have been travelling to Northern Ireland for nearly four years and wanting to turn the whole of Northern Ireland into an enterprise zone, making it an attractive place for investment and building on all the advantages that it now has. On my hon. Friend’s specific question, enterprise zones as described in the Budget are now in devolved hands and I hope the devolved Ministers grasp the opportunity with both hands. [Interruption.]

United Nations Security Council Resolution 1973

Alun Cairns Excerpts
Monday 21st March 2011

(13 years, 8 months ago)

Commons Chamber
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Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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Like all Members, I am worried and concerned about activities in and surrounding Libya. I am worried about the disregard for basic human rights shown by the Libyan army and the Gaddafi regime, and concerned about the potential longer-term commitment that we may have embarked upon.

I pay tribute to the Prime Minister, the Secretary of State for Defence and the Foreign Secretary for their work and actions in securing and ensuring that the foundation on which the conflict has been drawn is very different from that on Iraq. It seems only a short time ago that many people were judging and criticising the so-called “loose talk” about the need for a no-fly zone. Some opponents even mocked the calls for one. Such judgments only show the risk of seeking to make short-term political points out of very difficult international situations, and I hope that Members of all parties will have learned a lesson from that.

Last Thursday night, the passing of UN Security Council Resolution 1973 changed the terms of the debate. The success in delivering the resolution is remarkable, particularly bearing in mind the statements and comments made by some allies beforehand. The support of the Arab League was critical, and the change of heart of the United States was essential in delivering the consequences of the resolution.

None the less, we need to recognise the concerns and doubts expressed by those who abstained, and the initial comments made by the Arab League subsequent to military action, which have since been clarified, because they indicate how things could develop. The resolution has secured the legality of the actions that have been taken, but their legitimacy and longer-term consequences depend on maintaining the broadest possible coalition.

The delay by the United States in clarifying its position was damaging, but diplomacy won it over. In spite of the abstentions of some nations, dialogues with those countries—Germany and India, and even Russia and China—need to be maintained. It is unlikely that they will ever U-turn on their positions, but as the Gaddafi regime resorts to the most inhumane tactics we can only hope to win their tolerance in private.

The reporting in the UK and elsewhere of the action that has been taken has taken many different tacks. There have been some spectacular pictures showing how effective military actions have been in removing anti-aircraft capabilities and military hardware from the Gaddafi regime, and showing the positive impact that our forces have had. None the less, we should never be seduced by such stunning and incredible images. Our defence technology is impressive and astonishing, but judgments about using it must be taken in the context of the wider difficulties that it can bring in the longer term.

Not only must we maintain the legal case, but the moral, political and public cases should always be at the forefront of our mind. Colonel Gaddafi is a master of propaganda and of using it to motivate some of his civilians. Many Arab nations will be sympathetic to his calls. Outgunning Colonel Gaddafi by moral, political and public means in the Arab nations is as important as outgunning him by military means. The UN resolution means that we do not need to defend the political or legal case for our military action, as was required in the Iraq conflict, but we do need to maintain our case and win over doubters in the Arab nations. Many of those nations have significant military resources, and it is essential that they should be used to help us achieve the UN objectives.

Finally, I wish to reflect on 9 April 2003, the day when many of us were fooled by our own propaganda. It was the day when the statue of Saddam Hussein was torn down by the US forces and hundreds of Iraqis were seen hitting the structure with the soles of their shoes in celebration. They were described as “elated”. That and similar images and reports led me, and I am sure many others, to believe that almost all the Iraqi people were relieved at our military intervention. History teaches us that such things are not always true.

The Government’s actions to date have been exemplary, as has been noted widely by Members of all parties. It is up to all of us to ensure that they remain so, with the broadest possible coalition of support and the acknowledgment of the doubters.

Libya and the Middle East

Alun Cairns Excerpts
Monday 28th February 2011

(13 years, 8 months ago)

Commons Chamber
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Lord Cameron of Chipping Norton Portrait The Prime Minister
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My hon. Friend makes a good point, although we should not be pessimistic about the effect of greater democratisation in the middle east and the Arab world on the prospects for Arab-Israeli peace. Some of the more autocratic regimes use the Arab-Israel conflict as a way of keeping their own populations happy without having democracy. So, yes, the road between here and there may be quite bumpy and difficult, but in the end, deals between democracies will be stronger.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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My constituent, Richard Foscolo, was stranded in the desert in Ghani in an oilfield. He returned home last Friday. Initial contact with the Foreign and Commonwealth Office was naturally difficult, partly because of the circumstances on the ground, but the family feel particularly let down by his employers, OPS International, which did not make all the information available to the embassy or to the FCO, so that co-ordination could be brought about effectively. What action will the Prime Minister take to ensure that information is shared as efficiently as possible?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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My hon. Friend makes a good point, and there are lessons to learn about how information is shared. It is a difficult and ever-changing picture. Let us just look at the numbers of people who we think are in Libya and who want to come out. Even in the age of the internet, the mobile phone, computer databases and the rest of it, getting a real grip of those numbers, as I believe we now have—we will go on publishing more granular information about that—is difficult, but companies working with the Government is clearly an essential part of that process.

EU Council and North Africa

Alun Cairns Excerpts
Monday 7th February 2011

(13 years, 9 months ago)

Commons Chamber
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Lord Cameron of Chipping Norton Portrait The Prime Minister
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I do not accept what the hon. Gentleman says. At a European level, this is going to be helpful for the onshore and offshore wind industry and other renewable industries in this country. Also, here in the UK we have provided specific grants to ports to update their infrastructure so that large manufacturers can come here and manufacture wind turbines and provide offshore wind. I have spoken personally to companies that are coming to do that in parts of the UK. We will go on supporting the growth of this very important renewables sector.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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The Prime Minister has highlighted some significant inconsistencies between what the previous Administration stated publicly and what was released by Sir Gus O’Donnell earlier today. Obviously, the focus should be on the victims of this horrendous crime, but what assessment has the Prime Minister made of the effects on the relationship with some parts of the US Administration?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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The relationship is extremely good, and I think it will go on being good. I discussed this issue with Hillary Clinton when we met at the weekend. I think that the Administration have been grateful for the very strong and clear view that the Government have taken about the events surrounding the release of al-Megrahi and the fact that it was wrong. This point also goes back to what was said earlier. Of course, we want to have good relations not just with America but with Libya and with other countries, but we have to have some pretty clear lines in our minds about what is going to be part of that relationship and what is not. Frankly, I think it is perfectly possible to have good relations if we are clear about those things.

Oral Answers to Questions

Alun Cairns Excerpts
Wednesday 24th November 2010

(13 years, 12 months ago)

Commons Chamber
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James Morris Portrait James Morris (Halesowen and Rowley Regis) (Con)
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2. What progress he has made on the establishment of public sector mutuals.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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9. What progress he has made on establishing public sector mutuals.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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I announced last week that every Department will put in place “rights to provide” for public sector workers to take over the running of their services. The first wave of 12 pathfinder projects was launched in August this year. Leading organisations in the sector, including Local Partnerships, the Employee Ownership Association and Co-operatives UK, have come together to launch an information and support service for public sector workers interested in mutualisation. I hope that Members on both sides of the House will encourage and support these worker co-operatives.

Lord Maude of Horsham Portrait Mr Maude
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I do not think that we should be prescriptive about how large or small, or how local or broad, these co-operatives could be. The pathfinders range enormously in size: I think that the smallest has only three potential employees or members, while the largest has 1,100, and it is possible to imagine them being even larger. I hope that groups of public sector workers from right across the sector will consider whether this could be a good route forward for them to take, and we will make it as easy as possible for them to take it.

Alun Cairns Portrait Alun Cairns
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What action is the Minister taking to protect the interests of innovative public sector workers who come up with exciting ideas for public sector mutuals, but whose senior management do not support them because it might not be in their personal interest to do so?

Lord Maude of Horsham Portrait Mr Maude
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It is possible that such a situation could come about, which is why we have encouraged the organisations that I mentioned to set up the information and support service for groups of public sector workers. We will also establish a challenge group, into which this service can feed thoughts and suggestions. If there are concerns that middle and senior managers are obstructing the right of public sector workers to form these co-operatives, I hope that people will feed them directly to us, through the challenge group, so that we can take the appropriate steps.

Strategic Defence and Security Review

Alun Cairns Excerpts
Tuesday 19th October 2010

(14 years, 1 month ago)

Commons Chamber
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Lord Cameron of Chipping Norton Portrait The Prime Minister
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The answer to the second half of the hon. Gentleman’s question is yes. On the carriers, it will not delay their manufacture and production. What it means is that as the first is produced, the most logical step would be to fit the “cat and trap” to that carrier, which will therefore come fully into service when the carrier version of the joint strike fighter arrives at the same time. We will have solved one of the inherited problems of bringing the two things together. Clearly, an alternative would be to fit the “cat and trap” to the second carrier, but the most logical way ahead is the one that I have set out.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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My constituents and I—and, it seems, many other Members in the Chamber—are naturally disappointed that the Metrix proposal for St Athan will not go ahead. Will the Prime Minister confirm that St Athan remains central to defence training and will he make available some of his officials to provide a detailed breakdown of why Metrix was not suitable?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I am very happy to do that. I know how strongly people feel about this in south Wales and I know how important this decision is, so I am happy to make officials and Ministers available to meet my hon. Friend to explain the thinking. As I have said, this is not the end of the road for St Athan. There are many opportunities to concentrate training at that excellent resource and so, I think, he can continue to fight hard for his constituents.

Superannuation Bill

Alun Cairns Excerpts
Tuesday 7th September 2010

(14 years, 2 months ago)

Commons Chamber
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Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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Like every Member of this House, I have received significant communications and representations from individuals and from the unions on this matter. Many of us will have significant numbers of public sector employees in our constituencies. I would say that Wales as a whole has a disproportionate dependence on public sector employees—quite obviously, including employees of the civil service—and the Vale of Glamorgan is no different.

It is quite sad for all those individuals and for the House that we are in this position today. The financial state of the nation has led us to this position. The unrealistic position taken by the unions has driven the Minister to introduce such a Bill, sadly without complete settlement with the unions. I was encouraged by some of the statements that he made about the negotiations and I shall come back to them a little later.

It is difficult to believe some of the payments that are made under the current system. In 2007-08, the Department of Health, in 76 individual cases, paid severance compensation of more than £7.8 million—an average of more than £102,000 per employee. I wonder how many of those who were made redundant or who took voluntary redundancy were then re-employed by the Department of Health as consultants, which would obviously have increased the costs to the public purse. In the Department for Environment, Food and Rural Affairs, there are two examples: in one, compensation in excess of £500,000 was paid and, in the other, compensation in excess of £1 million was paid. That position clearly cannot continue and is wholly unreasonable not only to those in the civil service who are paid at lower levels but to the taxpayer who must ultimately foot the bill.

When I discussed those levels of payments with some of the constituents who got in touch with me expressing concern about their own interests, they showed equal disdain towards the levels of compensation that are paid, and they would recognise the absolute need for reform. Such levels of severance paid at the higher level simply cannot continue. It is a burden on the taxpayer and, as has been highlighted, is prohibitive to the reform of the public sector when the taxpayer really needs every efficiency measure to be driven through. Not only is it prohibitive in terms of the level of payments and the high cost of making many of these individuals redundant, but it is prohibitive and damning for people at the lower levels who will have to be made redundant when those at the higher levels cannot be laid off because it would be unaffordable, even when many of their roles have become redundant as a result of the evolution of the Department or because of new technology. The Bill goes further than the previous proposals, but as the financial situation of the country is much worse than was previously stated, the bill must be affordable, and that imperative has obviously influenced my right hon. Friend the Minister in introducing the Bill in such a form.

I do have concerns about the effect on civil servants at lower levels of the pay bands, and we need to recognise their interests. I was encouraged by my right hon. Friend, who highlighted his concerns and the need for negotiations. I would look to the trade unions, particularly the PCS Union, to see that statement in a positive light and negotiate, in the interests of those at the lower levels, a settlement that is in the interests of the whole of the civil service and, obviously, of the taxpayer.

In research and when chatting to constituents, it was highlighted to me that at the Department for Work and Pensions, someone who is at the maximum of the lowest pay band—band B—earns between £15,000 and £18,000. To put that in perspective, a fraud officer—an individual who we expect and hope would save some money for the taxpayer over the coming years—is a band C. That demonstrates how much responsibility can reside at the lower levels of some civil service pay bands. Currently, if made compulsorily redundant, such an officer would receive three times their salary if they were older than 42 and had more than 20 years’ service. Before the court judgment, the intention was to provide such officers with the equivalent of two years’ service, and now it is to provide one year’s salary in compensation.

I am encouraged by my right hon. Friend’s statements to the effect that he is interested in negotiating at this level. I recognise the difficulties in sharing some of those concerns with the House, because it is obviously not the place to negotiate with Ministers, but I ask him, in the summing-up, to go as far as he can in sharing the objectives that he would like to achieve in the interests of people at the lower levels of the salary and responsibility grades.

I would advise the right hon. Member for Dulwich and West Norwood (Tessa Jowell), who was asked a question about the average for private sector redundancy pay, that it is in the region of £9,000, which we should recognise is less than is being offered, and in the affordability debate we need to recognise the generosity of that.

Interestingly, the 2009 civil service statistics show that 36% of civil servants earn less than £20,000 and 58% less than £25,000. Clearly, there is a need for some sort of protection at the lower levels. The Government have taken positive steps—when they formulated their policy on the pay freeze, they protected those at the bottom end of the scale, and I think that principle should carry through to this Bill and to the negotiations that my right hon. Friend is undertaking.

Mark Durkan Portrait Mark Durkan
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The hon. Member will recall that, when the Minister was asked to say at what level he thought people were low paid, he said he could not say. It would not be for him to say—it would be almost impertinent to suggest that outside the negotiations—but the hon. Member has rightly recalled that the coalition Government had no problem deciding that £21,000 was the threshold at which people should be protected from the pay freeze.

Alun Cairns Portrait Alun Cairns
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I have no doubt that that would be part of the negotiations, but I wholly accept the point that my right hon. Friend has made that one does not start negotiations at the point where one expects to finish, bearing in mind the actions that the PCS Union and some of the other unions involved have taken to date. However, the point about the £21,000 threshold that the hon. Gentleman highlighted demonstrates the compassion and support shown by the Government, and I have absolutely no doubt that that compassion and support can and will be shown towards civil servants in the negotiations that are led by my right hon. Friend.

Jonathan Edwards Portrait Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
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Considering that there are ongoing negotiations, does not the hon. Gentleman agree that the Government are using the Bill effectively as a battering stick to coerce the unions during those negotiations?

Alun Cairns Portrait Alun Cairns
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I am grateful to the hon. Gentleman for the question, but I think the Government have been left in an extremely difficult situation—a sad situation, as I highlighted—from the outset. We have such a large deficit. A decision is needed on this question, particularly given the reforms and cuts that are likely to follow the comprehensive spending review, so I look positively at the action that my right hon. Friend is taking to resolve that position to bring certainty to those people whom I have rightly sought to champion.

Oral Answers to Questions

Alun Cairns Excerpts
Wednesday 23rd June 2010

(14 years, 5 months ago)

Commons Chamber
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Cheryl Gillan Portrait Mrs Gillan
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I am not sure how I will make that linkage to Armed Forces day, but I would say that for those who are low paid in the public sector I was delighted to see that the Chancellor had chosen not to freeze their pay for two years and to give them an increase of £250 in each year, which I am sure the hon. Gentleman would welcome. I also welcome that our Prime Minister went to Afghanistan and announced the doubling of the pay for our brave soldiers when they are serving on our behalf overseas.

Alun Cairns Portrait Alun Cairns (Vale of Glamorgan) (Con)
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Does my right hon. Friend agree that one of the best tributes we could pay to the armed forces would be to offer them the best training—world-class training—and that the proposed defence technical college for St Athan could well offer that training? What discussions has she had with the Secretary of State for Defence about this project, and about the delays caused by the last Administration?

Cheryl Gillan Portrait Mrs Gillan
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May I welcome my hon. Friend to his rightful place in the House, representing the Vale of Glamorgan? He knows what a strong supporter I am of the case for the training college at St Athan, and all I can say is that this is yet another example of how the Labour party did not stand up for Welsh interests. Labour did not get on with this project when it had the opportunity to do so when it was in government. May I also remind my hon. Friend that planning permission for this project was granted by a Conservative-led local authority back in 2009?