Public Bodies Bill [Lords]

Alun Michael Excerpts

Tuesday 25th October 2011 Commons Chamber

[Alun Michael (Cardiff South and Penarth) (Lab/Co-op)]

I have a great deal of respect for the hon. Gentleman’s expertise, and as a former rural affairs Minister, I thoroughly believe that the threat to the Agricultural Wages Board and the way in which the Government have dealt with rural issues are a disgrace. However, may I point out that he has now been going on about that for more than 40 minutes, and that it would be nice to fit one or two other major issues, such as the Youth Justice Board, into the limited time available?

[Andrew George]

I am grateful to the right hon. Gentleman for that comment. I have been too generous in taking interventions, including his, which has taken a great deal of time.

The Government are aware that people are very unhappy at the loss of the independent rural voice. I hope that my argument gets a warm reception, and that I do not need to press the House to a Division on either of the two new clauses because the Government indicate that they will give ground.

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[Andrew George]

I am conscious that we have still to debate the Youth Justice Board and S4C, so I will not detain the House unnecessarily. However, I should like to respond to the Minister’s comments on the new clauses and his comments on the Commission for Rural Communities. New clauses 8 and 9 were mutually exclusive, so they would not both have to be agreed to. I appreciate that they may not be sufficiently technically adequate to achieve my objective, but the Minister must accept the need for some independent, out-of-Government advocate, and I hope that some overarching brief to maintain the rural perspective is a debate that we can still have, as the Minister acknowledges that the issue requires affirmative resolution following this enabling legislation.

I will not respond to all the Minister’s remarks on new clause 7, which dominated the debate, but he predicted that it would not drive down wages and conditions, and I respect his judgment. That is obviously a brave prediction, but when I asked whether he could predict that it would at least protect and result in the exceptional enhancement of agricultural workers’ wages and conditions, he could not provide that reassurance. I am pleased that in the past Conservatives supported the very necessary legislation to establish the Gangmasters Licensing Authority. The Minister said that this reflected a bygone age, but the bygone age is one before gangs and gangworkers were brought in and exploited in the manner in which they have been. That issue has been addressed, but agricultural workers are still very much present. After the abolition of the Agricultural Wages Board, should that proceed, it is predicted that we still need to attract another 60,000 agricultural workers over the next 10 years, which will be a challenge indeed.

I accept that new clause 7 is technically deficient, but I still believe that the Government should reflect on the proposal to bring responsibility for the enforcement of the regulations under another body such as the Low Pay Commission. Given that we are not making the decision today to abolish the Agricultural Wages Board, we have had a good debate and there are other matters for consideration, so I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.



New Clause 11

Youth Justice Board powers and responsibilities in relation to Wales

‘A joint committee shall be established to oversee the exercise of powers and responsibilities relating to youth justice jointly between the Youth Justice Board and Ministers of the National Assembly for Wales.’.—(Alun Michael.)

Brought up, and read the First time.

[Alun Michael]

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

With this it will be convenient to discuss the following:

New clause 12—Youth Justice in Wales—

‘A joint committee shall be established to oversee the exercise of powers and responsibilities relating to youth justice jointly between the Secretary of State, or any body to which the duties of the Youth Justice Board have been transferred under an order made under section 1, and Ministers of the National Assembly for Wales.’.

Amendment 33, page 22, line 17, schedule 1, leave out

‘Youth Justice Board for England and Wales.’.

[Alun Michael]

I am very pleased to be able to defend the Youth Justice Board, which was established by the Crime and Disorder Act 1998, for which I had responsibility as deputy Home Secretary. The Act is widely respected as a practical and effective piece of legislation, which also established the youth offending teams, the local crime and disorder reduction partnerships and antisocial behaviour orders, changes that have all been effective in cutting crime and reducing reoffending.

The success of the youth offending teams is due in large part to the insight, independence, creativity, leadership and clear focus on cutting youth crime that the Youth Justice Board has provided, and which a Government Department cannot provide. The facts of that success are clear. Around 90,000 young people under 18 were brought into the youth justice system for the first time in 2000, and there were about 50,000 first-time entrants in 2010, a reduction of 45%. Reoffending by young people was reduced by 27% between 2000 and 2009, the latest year for which figures are available. The number of young people under 18 held in custody is down by more than 25%. In August 2000, 2,968 young people under 18 were in custody, and in August 2011, 2,106 were in custody. The Audit Commission has confirmed that the system works well.

In 2010, the incoming Justice Ministers, including the Under-Secretary of State for Justice, the hon. Member for Reigate (Mr Blunt), pledged to use the justice reinvestment report of the Justice Committee as their textbook for their time in office, but to do away with the Youth Justice Board signals that they have abandoned that promise. A wide range of organisations is appalled by the proposal to do away with the Youth Justice Board, but I will mention just two.

The Association of Chief Police Officers said:

“The recent disorder in London and indeed other areas of the country have shown that crime committed by young people should be carefully and seriously considered. The performance of the youth justice system under the leadership of the YJB has been considerable.”

It went on to warn that we would lose some of the successful joint initiatives that have been developed between the police and the Youth Justice Board. Finally, it makes the damning comment:

“There has been no evidence put forward to date that demonstrates the proposed transfer of the YJB’s functions to the Ministry of Justice will deliver better results.”

The fact is that it will not.

The Magistrates Association, speaking of the Youth Justice Board, said that

“the Magistrates Association from first-hand experience would say that it has a vital and continuing role to play in the justice system. Its very raison d’etre for magistrates is that it provides continuity of policy, strategy and implementation in a way that a general approach through the wider Ministry of Justice cannot deliver.”

It warns that

“the coherence that is now one of the successes of the system will be compromised and seriously damaged.”

By implication, the Government know that the Youth Justice Board has been a success, because they are not abolishing its role, but nationalising it. I did not know that Ministers were quite so left-wing or old-fashioned in their approach. I can only assume that No. 10 is demanding a tick in the box for abolishing a quango and does not care about the damage that will be done.

Over time, if the Youth Justice Board is taken into the Department for Justice, the Department will lose the expertise that has been drawn together within the board. If those who work in the board wanted to be civil servants, they would have applied to join the civil service. I hope that that attrition will be slow, but it will be inevitable. Government Departments are not good at running things, and the strength of the board is its focus on cutting youth crime, the independence and respect that it has earned and its capacity for working in partnership with others, which is why new clauses 11 and 12 are important. That point about partnership is demonstrated by the two organisations that I quoted and many others.

[Sir Alan Beith (Berwick-upon-Tweed) (LD)]

The right hon. Gentleman has a very good record both in the work that he did as a Minister and in the work that he did on the Justice Committee on this matter, but I think he would acknowledge that it would be wrong to ascribe to the board, for all its good work, the achievements that are really those of youth offending teams at local level, where partnership really matters.

[Alun Michael]

The point I made, and the point that is made by the Magistrates Association and by chief police officers, is that success at the local level depended on the coherence, independence and energy of the Youth Justice Board in supporting their work. All of them value the Youth Justice Board and all of them say that a Department cannot do it. From my experience in government I am convinced that a Department, working internally, cannot effectively replace the work of the Youth Justice Board.

New clauses 11 and 12 would protect the partnership approach between the Youth Justice Board and the Welsh Assembly. I pay particular tribute to the Minister responsible in the Welsh Assembly Government, Carl Sargeant, for his engagement in this issue and to the First Minister, Carwyn Jones, for his commitment to the cause of cutting crime, particularly youth crime. Criminal justice is not a devolved matter, but the devolution of children’s services, education and health policy means that a significant part of the delivery of local youth justice services is subject to Welsh Government oversight, and the Youth Justice Board has specific objectives in Wales to take account of this.

The Youth Justice Board has worked closely with the Welsh Government and other delivery partners in Wales to improve the youth justice system, and that partnership working must not be underestimated. It works. The inclusion of a board member for Wales on the Youth Justice Board has been critical in navigating the different arrangements that exist in Wales for youth justice. The board member has lead responsibility for Wales and enabled the Youth Justice Board to work effectively in Wales and develop key stakeholder relationships.

I pay particular tribute to my good friend Professor Howard Williamson—we worked together when I was a youth worker—for the massive contribution he made to enabling that partnership to work. I could illustrate that in detail at some length and wish I had time to do so, because there is a tremendous amount of important material that I would like to expand on, particularly how ensuring that placements in England have worked for young people who are returned to Welsh communities. Essentially, it is the partnership that has worked, and it is the partnership that would be put at risk unless Ministers accept, preferably, that the Youth Justice Board should be allowed to continue and, in particular, that there is a need for partnership arrangements to continue.

New clause 11 would put the current committee arrangements between the Youth Justice Board and the Welsh Assembly Government on a statutory basis, which implies the board’s continuation. The alternative, as set out in new clause 12, would be to create a partnership, through a joint committee, between the Ministry of Justice, or any other organisation to which the Government transferred the powers, and the Welsh Assembly Government.

When the Home Affairs Committee recently took evidence in Wales, we heard from an individual who was working in the Assembly as a result of a joint appointment by the Assembly and the Youth Justice Board. It is that joint working that has built up the confidence that is needed. The Youth Justice Board has developed a model that works, and it should be the model for other Government agencies and Departments, many of which still do not understand how to get the best out of the complementary roles they share with the Welsh Assembly.

I urge Ministers to accept the new clause and not include the Youth Justice Board within the ambit of the Bill. I urge them, in any event, to accept that the partnership arrangements between the Government, or their agency, and Wales should be put on a statutory basis and to understand and support the importance of partnership, because it has been effective in reducing youth crime and we need it to continue.

[Sir Alan Beith]

The Justice Committee has taken a close interest in this matter, as it did when the right hon. Member for Cardiff South and Penarth (Alun Michael) was a member; he contributed extensively to our work on it. We have been considering it lately but are yet to take a formal view on whether the Youth Justice Board needs to survive. However, we have explored thoroughly what needs to happen if it is abolished. The Youth Justice Board has done a lot of good work, not least in leading a reduction in the use of custody for young people. That led to the closure of a youth offenders institution in my constituency, but the places have of course been taken as a result of the prison system’s other requirements.

I want to make three points about what is essential in this field, whether the Youth Justice Board survives or not. First, the crucial element is that youth offending teams work at local level. The Youth Justice Board has given the initial leadership to develop youth offending teams, following initiatives taken by the right hon. Gentleman when he was a Minister. The ability of all relevant agencies at local level, including the police, social services, local authorities and housing authorities, to work together is crucial.

--- Later in debate ---

[Mr Blunt]

Youth justice is an extremely important issue and these points have to be put properly on the record. I am slightly surprised at the hon. Lady’s intervention, because she makes it at precisely the moment at which I am trying to deal with issues that I believe are of some importance to her, as a Welsh Member, as well as to the right hon. Member for Cardiff South and Penarth, who is sitting right behind her.

The Youth Justice Board currently has a team based in Wales, which works closely with the Welsh Assembly, and we will continue to have a Welsh-based team under our proposals to bring the functions of the Youth Justice Board into the Ministry of Justice.

The Government have listened and responded to the concerns of all interested parties. A full public consultation has just concluded, and we will carefully consider the responses before laying draft orders before Parliament. My right hon. Friend the Member for Bermondsey and Old Southwark asked about the balance of the responses to the consultation. There were, I think, 2,800 responses to the public bodies consultation, of which 68 were about the Youth Justice Board. It will not surprise him to learn that the balance of the responses was not supportive of the Government’s proposal—that is not a remotely surprising pattern when it is proposed to change something. However, before we lay the draft orders, there will be an opportunity to see the detail of them.

The youth justice system needs clear and visible leadership from me, as the responsible Minister, supported by a governance structure that retains a dedicated focus on youth justice. That is what we will provide as part of our proposals to abolish the YJB. I believe that is the best way to help us reduce offending and reoffending by young people, and I ask the right hon. Member for Cardiff South and Penarth to withdraw the new clause.

[Alun Michael]

The Minister has been seduced by office into bad decisions, but in the best interests of securing a vote on the retention of the Youth Justice Board, I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

Clause 1

Power to abolish

Amendment made: 5, page 1, line 13, at end insert—

‘() a co-operative society,

() a community benefit society,

() a charitable incorporated organisation, or’.—(Mr Blunt.)

Schedule 1

Power to abolish: bodies and offices

Amendment proposed: 32, page 21, line 11, leave out

‘Agricultural Wages Board for England and Wales’.—(Mr Gareth Thomas.)

The House proceeded to a Division.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

I ask the Serjeant at Arms to investigate the delay in the No Lobby.

--- Later in debate ---

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

I beg to move, That the Bill be now read the Third time.

It is now slightly more than a year since the introduction of the Bill, and it has undergone considerable scrutiny and review both within Parliament and outside. I believe that the Government have responded positively and openly to that scrutiny. Both in this House and in the other place, we have worked with parliamentarians across the party boundaries to make a number of important amendments. My noble Friend Lord Taylor of Holbeach rightly paid tribute to noble Lords for their efforts in improving the Bill, and those tributes can be extended to this House. This has been a constructive process.

[Alun Michael]

Will the Minister acknowledge that there is real concern about the abolition of the Youth Justice Board, which we discussed earlier this evening in a time-limited debate? The concern is that by being taken inside the Ministry of Justice, it will lose the independence and spark that have led to its supporting youth offending teams in cutting youth reoffending. Will he undertake to keep an eye on that and, if it turns out that a system within the Ministry of Justice does not deliver as the YJB has, to look again at the arrangements?

[Mr Maude]

I hear what the right hon. Gentleman says, and I know that he has been hugely involved in the matter and has a passionate commitment to the cause of youth justice being delivered appropriately. I obviously take on board what he says, and my right hon. and hon. Friends have said both in Committee and in the House that we will keep the matter under review. Under the procedures in the Bill, before an order gives effect to the arrangements for bringing the YJB inside the Ministry of Justice, as is envisaged, there will have to be a proper consultation process and parliamentary scrutiny. That applies right across the piece to any changes that are implemented under the Bill. There will have to be full consultation and a proper parliamentary process.

It is important to put on the statute book, as I hope will happen under the Bill, a procedure for changing the arrangements for public bodies. In the past it has been far too easy for public bodies to be casually, almost incontinently created, and it has never been easy for them to be reformed when needs have changed. Anyone who has been in government knows the pressure that there is on primary legislation, and the need to make changes to the governance, funding arrangements and scope of public bodies cannot easily rise to the top of the pile. The procedure that we are putting in place for public bodies to be reformed, abolished or merged or to have their governance or funding arrangements changed is therefore really important, and I am grateful for the constructive approach that has been applied to the Bill.

Commitment to reforming the quango state is common across the political divide. All three parties entered the last election with a commitment to reforming the public body landscape, so we brought forward the Bill in the hope and expectation that there would be a consensual approach to it. Although there have been disagreements about some aspects of it—it was never likely that there would be absolute unanimity about every body for which changes were proposed—the approach has broadly been constructive. There has been agreement that the approach taken in the Bill is desirable.

Thus it was that last June, I told the House that we were committed to cutting the number of public bodies in order to increase accountability and cut costs. We always made it clear that the primary objective of the Bill was the former. Cutting costs would certainly happen, and I will say a word about the savings later, but the primary objective was to ensure that there was democratic accountability, unless the three tests that we set out for a body or function continuing in a way that was not democratically accountable were met.

The review that we carried out first established whether the functions of a body needed to be carried out at all. If so, we sought to establish whether the body should exist at arm’s length from government by asking three questions: first, does it perform a strictly technical function; secondly, do its activities require clear political impartiality; and thirdly, does it need to act independently to establish or measure facts in a clear and independent way?

We discovered that there were 904 non-departmental public bodies, non-ministerial departments and public corporations. We proposed that in excess of 200 would cease to be public bodies; that 120 would be merged into 56 bodies; and that 170 would be substantially reformed. In addition, we listed 15 as “under consideration” with further announcements expected in due course.

The Bill establishes a mechanism that gives Ministers a series of powers, which it outlines, to make changes through secondary legislation. As I have said, if we had always to wait for an opportunity to make primary legislation, we would continue inevitably to add to the landscape of unaccountable, and often very costly and not always very efficient, public bodies.

--- Later in debate ---

[Mr Mark Williams (Ceredigion) (LD)]

I will be brief, but there are some important points that need to be made. First, I follow the Opposition Front-Bench spokesman in thanking the ministerial team who served on the Bill Committee. Being the mouthpiece for several other Government Departments was an onerous task, and they performed it very effectively.

The Bill has been on a long journey since its introduction in the other place. I hope there is still broad agreement on the original principles. When I was sitting in Committee, I continually reminded myself of the three yardsticks the Ministers had set: transparency, accountability and the economics of quangos. All the parties wish to reduce the number of quangos but, as many were created through primary legislation, it was necessary to adopt a streamlined approach that would allow Ministers to modify and abolish existing quangos. I think the Government now accept—grudgingly, at least—that the initial powers in the Bill as introduced in the other place were far too sweeping. That has changed, and we now have a much better Bill.

As my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) and my hon. Friend the Member for St Ives (Andrew George) said, this is still a work in progress. The Ministers in Committee reminded us constantly that this was enabling legislation. As one of my friends who was concerned with S4C alone reminded me today, that is still unfinished business. We have had some welcome news today, but there is still going to be a public consultation, there are still various regulatory hurdles that the Cabinet Office will have to overcome, there will still be an order under the Bill and an operating agreement—at least I hope we will get this—will still need to be reached with the BBC. So there are still issues to be dealt with.

I welcome the fact that this Bill provides for an enhanced devolution process and, in particular, grants Welsh Ministers the power to create their own environmental body to take on the functions of the Environment Agency Wales, the Countryside Council for Wales and the Forestry Commission Wales. I regret, however, that the principle was not extended to consumer advocacy. I know that the right hon. Member for Cardiff South and Penarth (Alun Michael) was hoping to pursue that on Report if his amendment had been accepted—it was the amendment that I moved in Committee.

[Alun Michael]

I am grateful to the hon. Gentleman for raising that point. It is important that Ministers continue the discussions that have been taking place with the Ministers in the Welsh Assembly Government to ensure that the systems put in place for Wales are appropriate and properly resourced, and that this is not allowed to wither on the vine. I endorse the point that he is making about the importance of this matter.

[Mr Williams]

I thank the right hon. Gentleman for that comment. As he is aware, the Select Committee on Welsh Affairs is undertaking an inquiry on this matter and we will not allow it to wither on the vine. The requests of the Welsh Assembly Government must be responded to.

In not pursuing the amendment that some of us sought, we are missing an opportunity to ensure that Wales can have the best possible model to deal with consumer policy. The Bill will pass tonight, but in the coming weeks and months the Government will present the results of consultations on the consumer landscape and if they do decide that Wales should have the power on these matters, sadly they will have no suitable legislative vehicle to grant that.

I welcome the announcement on S4C, although I regret more that we did not have an opportunity to talk about S4C today. We had a prolonged debate in Committee on it but, like the hon. Member for Arfon (Hywel Williams), I would have welcomed the opportunity to push our amendment on providing financial stability for S4C. I welcome today’s announcement that the BBC will not have representatives on S4C’s management board, but S4C will still be reporting to the BBC under the terms of the operating agreement, once it is finalised, and will be reliant on the BBC for its funding. That decision did not need to be taken now in this Bill; it could have been taken in the forthcoming communications Bill, and concerns remain.

We heard the welcome announcement by the Government that there is now to be a duty on the Secretary of State to provide sufficient funds, although how closely involved the Secretary of State will be remains to be seen. I am firmly of the opinion that this must not just be a rubber stamp of whatever the BBC decides. Like the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards), I feel that until the day when devolution is passed down to the Cynulliad as part of that settlement, the Secretary of State must be central to and engaged in the process.

We do now have a longer-term funding settlement. Again, it is welcome that S4C has a better long-term idea of its funding, albeit not at the level that some of us hoped for. But what we tried to achieve in Committee and hoped to achieve on Report were genuine stable funding criteria that will provide guidance and direction on what S4C requires. That is particularly important to the creative industries in Wales. I have concerns that tying S4C into the operation agreement that it will have––to which it has perhaps reluctantly agreed––means that it is difficult to see protections for its independence, particularly its operational independence.