National Citizen Service Bill [HL]

Baroness Finn Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Tuesday 22nd November 2016 Grand Committee

Moved by

[Baroness Finn]

19: Clause 5, page 2, line 24, after second “the” insert “primary”

[Baroness Finn (Con)]

My Lords, Amendments 19 and 23 are in my name and those of my noble friends Lord Maude of Horsham and Lord O’Shaughnessy. Their purpose is to insert the word “primary” before the reporting requirements on the exercise of functions for both the business plan and the annual report. While I appreciate that this is a small word change, we argue that its insertion is critical for two reasons. First, it would prevent the new organisation drowning in excessive bureaucracy; secondly, it is consistent with the draft royal charter which refers in Article 3 to the primary functions of the NCS Trust.

One of the main reasons for the success of the NCS thus far has been its flexibility to respond rapidly and positively to feedback on the programme and to adapt quickly to change. This flexibility is essential when engaging with teenagers. To mire the trust in excessive bureaucracy will hinder, and potentially kill, its ability to adapt quickly and innovatively to new challenges. If the trust is expected to produce a business plan every year about every one of its activities, that would have the regrettable effect of stymieing the NCS’s ability to innovate and to engage with emergent trends, platforms or partnerships.

The new body should of course publish a business plan that lays out the primary functions of delivering the National Citizen Service. This will allow transparent scrutiny of the unit cost of delivery as well as its broader stakeholder engagement. Such scrutiny, which will permit proper accountability, is completely appropriate. However, to insist on more onerous reporting requirements, which would be inconsistent not only with the draft royal charter but with other public bodies, including other royal charters, would detract from the NCS’s ability to deliver a quality and engaging programme.

If the NCS is to achieve its hugely ambitious programme to grow threefold in the next three years, it is vital that it sticks to its core vision while retaining the ability to be nimble. To allow this, the reporting requirements should be kept as straightforward as possible, not weighed down by ever more onerous obligations. I beg to move.

[Baroness Barker (LD)]

My Lords, I have a number of amendments in this group, whose purport is somewhat different from that set out by the noble Baroness, Lady Finn.

When this legislation is passed, the National Citizen Service will no longer be a start-up; it will be a sizeable body with a very sizeable budget. Therefore, it is not unreasonable to expect that its reporting requirements will be different from those which it currently has as a very small community interest company. As such, and not a charity, the NCS has a lower level of financial reporting requirement than many of the organisations with which it has to do business and from which it has to commission its services.

I make no apology for the number of the amendments in this group which deal with accountability. I appreciate that we are talking about a royal charter body but the voluntary sector has had one of the worst years on record and has suffered a great deal in terms of its reputation and public support, precisely because it has not been living up to the higher standards of reporting which it should demonstrate—way above the public sector.

These amendments stem, to a large extent, from the acknowledgment of the noble Lord, Lord Maude, on Second Reading, that the NCS was deliberately set up to sit apart from the rest of the voluntary sector while being almost entirely dependent on it for the delivery of its outcomes. The NCS is, and will be in the future, a central commissioner of services from the voluntary sector, and as other resources diminish that will become increasingly important as a larger percentage of the money available for volunteering will be tied to this scheme. The greater freedom of action a body has, the higher standard of accountability it should aspire to. That is why the level of detail we require about any charity’s accounts is much higher than for anywhere in the private sector. The lack of competition to the NCS makes it wise to require a greater degree of transparency and detail in its reporting than we might have otherwise. Recent examples like Kids Company and Work Programme show that the lack of a requirement for proper accountability can be extremely damaging. It is with that in mind that we have proposed a number of amendments.

Given its purpose and set apart though it is, this organisation cannot deliver co-ordination with other voluntary organisations unless it has good relationships with them. It therefore does not seem unreasonable to ask it to set out how it will establish those, and, after a financial year, to report back. It is claimed that this organisation has an important, and, in the view of some noble Lords, unique contribution to make to the lives of young people. It is therefore important to require it to show that it sits alongside the main trends within the voluntary sector. For example, many people working in community organisations serving the Muslim community are saying to the Government— consistently and in many different ways—that the Prevent agenda is not working. It would therefore be remiss of us not to require the NCS—if it does have the role being described by its advocates—to actively work with those charities to ensure that community cohesion and diversion from extremism are part of its achievements.

Amendment 31, which requires that the NCS’s annual report includes its efficiency and effectiveness, is justifiable given that it is not up against competitive challenge. It is also not unreasonable to require diversity among its trustees. But of all these amendments, the two that matter the most are Amendments 28 and 29. It is right that Parliament should know the extent to which the trust has collaborated with and resourced the rest of the voluntary sector given that it will be one of the few sources of money for volunteering. It is also right that its report should include comparisons with alternative provisions. I have not yet been able to find a report giving the unit cost of the NCS including its overheads. Will the Minister give us that figure in his response? There is a suggestion from a number of other voluntary organisations that it is a very costly programme in comparison to them. I would very much welcome a response on that because before we commit this large resource to a body which is going to be set down in stone we should have some answers about the level of accountability that we can expect.

--- Later in debate ---

[Baroness Finn]

I am grateful to the Minister for his remark that the NCS should not be distracted from its core purpose and should continue to do what it has been doing so well. It should stick to its knitting, as it were. I also thank him for his other reassurances on reporting requirements. I am delighted that he will write to the trust board to ask about priorities for annual reporting requirements. In the light of the Minister’s remarks, I beg leave to withdraw the amendment.

Amendment 19 withdrawn.