Parliamentary Buildings (Restoration and Renewal) Bill

Baroness Evans of Bowes Park Excerpts

2nd reading (Hansard): House of Lords
Monday 8th July 2019 Lords Chamber

Moved by

[Baroness Evans of Bowes Park]

That the Bill be now read a second time.

[The Lord Privy Seal (Baroness Evans of Bowes Park) (Con)]

My Lords, I shall wait while noble Lords depart.

I am delighted to open the Second Reading debate on the Parliamentary Buildings (Restoration and Renewal) Bill. The Bill has been a long time coming and builds on the work of many in this House and the other place. I pay tribute to my predecessor, my noble friend Lady Stowell of Beeston, to the noble Baroness, Lady Smith of Basildon, and to the noble and learned Lord, Lord Wallace of Tankerness, the noble Lord, Lord Laming, my noble friend Lord Deighton and the noble Lord, Lord Carter of Coles, for the work they did on the Joint Committee on the Palace of Westminster, which was vital in paving the way for the Bill. I also thank my noble friends Lady Byford and Lord Brabazon of Tara, the noble Lords, Lord Blunkett and Lord Stunell, and the noble Baronesses, Lady Warwick of Undercliffe and Lady Prashar, for their work on the joint pre-legislative Select Committee that looked at the Bill. All their recommendations were carefully considered and led to a number of changes.

The Bill gives effect to the resolutions passed in Parliament last year putting in place a governance structure that will ensure that the long-term programme of R&R work can be undertaken. It establishes the statutory bodies that will be responsible for addressing the risks and dangers that currently affect this building, as well as its restoration and renewal.

Noble Lords will be well aware of the horrific fire that swept through Notre Dame only a few months ago, which served as a stark reminder of the risks to this historic and iconic building. Here, we have a team of 24 staff employed to carry out fire patrols around the clock, and we have put in place complex fire mitigation measures. Other issues that have affected the Palace in recent months include falling masonry, water leaks, floods, sewage leaks, lighting and power outages, and toilet closures. Whatever individual position Members may take on particular elements of this programme, I think your Lordships would all agree that significant maintenance work cannot be delayed any longer. We must ensure that the Palace of Westminster is restored and protected, so that it may continue to serve as the home of the UK Parliament for generations to come.

In 2012, both commissions considered the option of relocating Parliament outside the Palace of Westminster in a new purpose-built building, they but decided against such a proposal. The Joint Committee on the Palace of Westminster also considered temporarily relocating Parliament outside London during the works, but concluded that it carried an unacceptable burden of cost and inconvenience.

[Lord Foulkes of Cumnock (Lab Co-op)]

Will the Lord Privy Seal confirm that no costings were carried out or estimates taken of the proposal to build a new Parliament elsewhere?

[Baroness Evans of Bowes Park]

Obviously, a number of reports have looked into this issue, which have considered a range of issues. Today, we are putting into legislative effect the Motions that were passed by this House and the other place, which affirmed that the guarantee that both Houses would return to their historic Chambers as soon as possible should be incorporated in primary legislation. That is what we are doing as part of the Bill.

This is an important, technical Bill which facilitates the next crucial stage of the R&R programme. It consists of 15 clauses and 4 schedules. It establishes the parliamentary works sponsor body, which will have overall responsibility for the restoration and renewal of the Palace of Westminster and will act as the client on behalf of both Houses. It also provides for the formation of a delivery authority as a company limited by guarantee. The delivery authority will formulate proposals in relation to the restoration works and ensure their operational delivery. The sponsor body already exists in shadow form, and I thank those Peers who sit on its board: my noble friend Lord Deighton, the noble Lords, Lord Carter of Coles and Lord Geidt, and the noble Baroness, Lady Scott of Needham Market.

Drawing on best practice from the successful delivery of the London 2012 Olympics, the bodies will be independent and able to operate effectively in the commercial sphere, bringing the expertise and capability needed for a project of this scale.

[Lord Adonis (Lab)]

What are the latest cost estimates for the restoration and renewal work?

[Baroness Evans of Bowes Park]

The purpose of the Bill is to set up the bodies that will do the detailed costings of the work. I will come to the outline business case, of which obviously that will be a crucial part, towards the end of my remarks.

The Bill also provides for the relationship between Parliament and the sponsor body, including consultation with Members. This is a hugely significant and costly project, so both the Government and Parliament must ensure that it represents and delivers value for money for the taxpayer.

The Bill establishes a Parliamentary Works Estimates Commission, made up of two Members of this House and two from the other place, which will lay the sponsor body’s estimates of expenditure before the House of Commons and play a role in reviewing the sponsor body’s expenditure. It is through these annual estimates that the programme will be funded and approved by MPs. Further financial controls will be put in place, including a requirement that the estimates commission consults the Treasury on the annual estimates for the funding of the R&R programme and has regard to any subsequent advice.

The sponsor body is made up of parliamentarians representing both Houses and includes experts in running similar large-scale projects such as the Olympic Games, and, in terms of heritage, includes the former chief executive of Historic England. The delivery authority will be made up of architects, engineers and individuals with programme management, commercial and contracting experience. They will formulate the designs, costs and timings of the works, with proposals brought forward to Parliament for approval in 2021. We are confident that the arrangements being put in place will deliver the necessary restoration works and at the same time provide reassurance that taxpayers’ money will be protected.

The passage of the Bill in the other place was swift, with Second Reading passing without division and Committee completed in a single day. The Bill also passed Third Reading without a Division.

On Report, four amendments were made to the Bill. Two amendments were supported by the Government. The first required the sponsor body, in exercising its functions, to have regard to the need to ensure that educational and other facilities are provided for people visiting the Palace of Westminster. The second provides for the automatic transfer of external members of the shadow sponsor body to the statutory body. This will bring continuity to the sponsor body, while providing an opportunity for it to evaluate its needs for its membership.

Two amendments, resisted by the Government due to deficient drafting and our view that they were not required in primary legislation, passed on Division at Report. One requires the delivery authority to have regard to companies’ policies on corporate social responsibility when allocating contracts. We accept the principle of this amendment, but it will require some minor and technical changes to make it workable.

The second places a duty on the sponsor body and the delivery authority to ensure that the economic benefits of the parliamentary building works are delivered across the UK. The Government resisted this amendment as it contravenes public procurement law: specifically, that location is not something that you can have regard to when allocating contracts. Again, we accept the principle behind the amendment, but it will be necessary to revise its wording to ensure that it does not cut across procurement law obligations.

Finally, a couple of matters were raised on Report which the Government agreed to consider further in this House. First, Members in the other place considered whether the sponsor body should have regard to the need to conserve and sustain the architectural and historical significance of the Palace of Westminster, including the outstanding universal value of the world heritage site. The Government are absolutely committed that the work undertaken will ensure that the architectural, archaeological and historical significance of the Palace of Westminster is preserved for future generations, but we have been of the view that the best way to achieve this is through existing planning processes.

We have also been mindful of including the UNESCO heritage status of the Palace of Westminster in the Bill, given that it also covers Westminster Abbey and St. Margaret’s Church. We must be careful that, as the Joint Committee that undertook pre-legislative scrutiny said, explicit provision which aims to protect the heritage of the Palace does not,

“override opportunities to renew and enhance its purpose”.

The Government will therefore bring forward an amendment that strikes a balance between the preservation and protection of the Palace’s heritage, while delivering the renovations and accessibility modifications that we all want to improve the functionality of the Palace.

Secondly, there was considerable interest in the other place for the sponsor body to publish an annual audit of companies awarded contracts to establish their size and geographical location. The Government are keen for the benefits of the parliamentary building works to be shared across the UK, particularly among SMEs. Under the provisions of the Bill, the sponsor body already has to prepare and publish a report at least once a year on the parliamentary building works and the progress that has been made towards their completion. We will bring an amendment to place a further requirement on the reporting of contracts on the sponsor body. Throughout the passage of the Bill, the Government have sought to work collaboratively with parliamentarians to ensure both that the right arrangements are in place to deliver the restoration and renewal of the Palace and that these reflect the will of Parliament. I look forward to continuing in that spirit with noble Lords.

Before I conclude, I will turn briefly to the issue of this House’s temporary decant during the restoration and renewal of the Palace, which I know is of great interest to noble Lords. As I stated earlier, the Motion passed by this House in early 2018 was clear that, as part of R&R, we would temporarily leave the Palace so that the works could be done more quickly and in a cost-effective way. As noble Lords will know, the Bill is concerned not with the details of your Lordships’ accommodation during the period of refurbishment of the Palace but with the governance arrangements required for the successful delivery of the R&R programme. The sponsor body established on a statutory footing by the Bill will be responsible for delivering the decant accommodation for the House of Lords, in line with your Lordships’ requirements. It will be for the sponsor body, as part of the outline business case that it expects to present to Parliament in 2021, to set out the detailed, costed arrangements.

I assure noble Lords that the shadow sponsor body is keen to hear from Members about the proposed decant accommodation, and this engagement has already begun in earnest. Last year’s survey was followed by individual interviews with more than 150 Members of your Lordships’ House, and a similar number from the other place, to gain more detailed views on Members’ ideas, priorities and concerns around decant; that has continued with smaller, focused discussions on particular design themes. The results of this engagement are currently being reviewed and will feed into further work as part of the programme. In addition, the chair of the shadow sponsor body has written to APPG and committee chairs in both Houses to seek their feedback on the sort of facilities that they may require in the future. Plans for the decant of the House of Lords are in their early stages and there will be ample further opportunity for Members to feed into the process—I encourage all noble Lords to do so. I understand that the R&R programme team will carry out further engagement with noble Lords in the autumn.

The Bill is critical to the next stages of development of this important parliamentary project.

[Lord Forsyth of Drumlean (Con)]

I am grateful for the ongoing consultation with Members about the decant process. Can my noble friend explain how that process will be accountable to this House?

[Baroness Evans of Bowes Park]

As I said, there will be consultation during the process but, ultimately, the sponsor body needs to bring an outline business case—the final proposal with costings, details and decant options—back to both Houses. Both Houses will vote on it, and that will be the final decision. Today, we are doing important work to enable the detailed work that noble Lords are obviously incredibly interested in, but it will return to Parliament for a final vote.

To repeat myself slightly, once the sponsor body and delivery authority have been established in statute, they will design an outline business case that the sponsor body must bring back to Parliament for approval and which will set out the scope, timing, delivery method and cost of the works. Only once the outline business case has been approved will the sponsor body and delivery authority be able to commence the substantial works on the Palace.

I very much hope that noble Lords will support the Bill’s timely passage so that we can begin to undertake the vital and increasingly pressing work to ensure that the Palace of Westminster is fit to serve as the home—

[Lord Kerr of Kinlochard (CB)]

This may be a question to which everybody else in the House knows the answer. Can the Minister tell us why neither the delivery authority nor the sponsor body will have a duty to have regard to heritage and preserving the fabric of the building?

[Baroness Evans of Bowes Park]

I hope I made clear earlier that we have agreed that we will bring forward an amendment in this House that will look at putting heritage in the Bill. As I also mentioned, we need to balance that with making sure that any renewal and restoration of the building takes into account modernisation and things that other noble Lords are keen on—for instance, improving disability access and ensuring that it is open and available to the public who want to come. We will bring forward an amendment in this House during the passage of the Bill to achieve, I hope, that balance. On that note, I beg to move.