Coalition Government: Constitution Committee Report

Baroness Grender Excerpts

Tuesday 13th May 2014 Lords Chamber

[Lord Strathclyde (Con)]

My Lords, I am delighted to be speaking immediately after the noble Baroness, Lady Jay. Perhaps I may be the first publicly to pay tribute to her time as chairman of such a distinguished committee as the House of Lords Constitution Committee. She has served with distinction, but she has also served at a most fascinating and interesting time. The noble Baroness reminded us that she has served for four years, which is a long time. In those four years we have seen constitutional innovation, to which the report alludes several times over.

As the noble Baroness explained, I gave evidence to the committee and read its report. One of the reasons I wanted to speak in this debate was to say how good I thought its conclusions were. It is extremely clear and well-written, and therefore effective. I am sorry to hear that the Government were unable to give a written response but I have great faith that my noble friend Lord Wallace of Saltaire will be able to say that he, too, on behalf of the Government, thinks this a very positive report. There is much to take away, not just by politicians but by senior members of the Civil Service, particularly the Cabinet Office, if this thing—this coalition—ever happens again.

It was useful for the noble Baroness to remind us, as is written in the first paragraph of the report, what my noble friend Lord Norton of Louth said about this being the first coalition to come about because of the arithmetic calculation after a general election. That demonstrates just how rare a coalition is in the United Kingdom. We have no reason to believe that it will necessarily happen again in the near future. It probably will not happen again, but I dare say that we ought, like the boy scouts, to be ever ready and ever prepared for it to happen again.

In May 2010 I was one of those who were initially sceptical about the desirability of having a coalition. I felt that my right honourable friend David Cameron probably could have carried on a minority Government, but that was not the prevailing view. It was said that people generally liked the idea of politicians sorting out their differences in private before coming to Parliament with an agreed set of proposals. Whether that is true in practice remains to be seen, but it is true that people like that idea. What else is true is that this coalition has been remarkably successful, particularly in barring the noises off, and has had huge success in reform of some of the most important parts of the public sector—education, welfare and health. What Government, within 12 months of a general election, would not be delighted to hear that the United Kingdom now has the fastest-growing economy in the G7; that there are more people in work today in Britain than ever before; that unemployment is falling; that the twin scourges of inflation and interest rates, which most of us have lived with for most of our lives, are at rock bottom; and that month by month, year by year, the deficit is being cut and we can see, over the horizon, a time when it will be eradicated? That is a success for the coalition.

I have no idea whether there will be another coalition Government. If there is, the only point with which I took minor issue was on the formation of a Government. It is important for the nation to have a Prime Minister and to know who that Prime Minister is as quickly as possible. We should not create a system that allows for a Prime Minister to linger on in 10 Downing Street for too long. If there is no pressure to come to an agreement on who the new Prime Minister should be, it could drag on for a very long time indeed. I cannot imagine that it was a pleasant experience for Mr Brown as Prime Minister to be twiddling his thumbs among the packing cases, waiting for the Liberal Democrats and the Conservative Party to reach some sort of agreement. There is all the difference between the parties agreeing that there should be a coalition and that therefore there should be a Prime Minister, which should be announced as soon as possible, and for the Palace to do the all-important ceremony with which it needs to be involved, and the final troth being made on a coalition agreement and, most importantly, on what the terms of the first Queen’s Speech should be. I agree with the idea that there should be a longer time-lag between the general election and the Queen’s Speech. A period of 12 days was mentioned, which is perfectly sensible.

I want to make four observations on the report with regard to the House of Lords. The first relates to paragraph 145 and the Salisbury convention. The report admirably says and the noble Baroness repeated it:

“We recognise that a practice has evolved that the House of Lords does not normally block government bills, whether they are in a manifesto or not. There is no reason why this practice should not apply when there is a coalition government”.

I quite agree. In fact, that is my understanding of what the Salisbury convention has become and how it has developed over many years. There is a faint absurdity in this unelected Chamber denying ourselves the right to debate a Bill which has already been passed by the elected Chamber and we should not do it. One can imagine the truly appalling circumstances in which the House of Lords needs to reserve that right, but as a matter of course that should be part of the Salisbury convention. That is why I very much regret that in this Parliament it was the Official Opposition who supported the wrecking amendments on the Health and Social Care Bill. That was an extremely foolish and dangerous thing to do and should not have been done. When the Labour Party eventually gets back into government it should beware that an irresponsible group in the House of Lords does not hang that around its neck.

The second issue that I want to draw attention to is that of collective responsibility and the boundaries issue, which is eminently well described in paragraph 71. The paragraph refers to the evidence that I gave. I said that it was a “dirty trick”. The noble and learned Lord, Lord Falconer of Thoroton, said that it was,

“a flagrant breach of an agreement”,

although he happily conceded that he was delighted that the Liberal Democrats had done so.

Either way—and I stand by what I said—what I dislike intensely in paragraph 71 is how David Laws MP prays in aid the collapse of the House of Lords Bill in the House of Commons. I just want to say that this is a desperate rewriting of history. The House of Lord Bill was passed in the Commons on a huge majority at Second Reading. Nearly 80% of MPs voted in favour of it. What happened thereafter was a failure of the Government and of the Minister who was responsible for it, the Deputy Prime Minister, to reach an agreement, particularly with the Opposition, on the programme motion. That was not the fault of a few dozen Conservative Members of Parliament. As we all know in this House, this issue was always going to be controversial and could never have been passed by one party acting on its own. It could have been passed only by agreement. If the Deputy Prime Minister had spent more time early on in the Parliament working with the shadow Cabinet and the Labour Party, he might have got that agreement.

I cannot help thinking that the issue of House of Lords reform became a convenient argument, and that is all, and that even if House of Lords reform had gone through, the Liberal Democrats would have found a different excuse for reneging on the deal that they had struck in the coalition agreement.

[Baroness Grender (LD)]

May I clarify something with the noble Lord? Is it not the case that the Prime Minister took the decision to withdraw from pushing ahead with the vote on the programme motion?

[Lord Strathclyde]

I am sure that is the case, but only on the basis that he knew it was going to be lost. He knew that the Minister responsible for the Bill could not guarantee that they had support from Her Majesty’s loyal Opposition. That is why it collapsed.

--- Later in debate ---

[Baroness Grender]

My Lords, I join other noble Lords in congratulating the committee on this report and the noble Baroness on leading this debate. It is a privilege to be speaking in a debate led by her.

There have been many predictions about the survival of this coalition Government. One of my personal favourites is from Peter Oborne, writing in March 2012, who said it would be finished by 2013. Last time a debate was held here, there were predictions that this place had a natural government majority and would become a rubber-stamping Chamber. I think if you spoke to any of the Whips today, they would strongly dispute that. Even at the start of this coalition, the civil servants game-planning the talks, as we have since learnt from the noble Lord, Lord O’Donnell, found that they could not reach agreement in their mock talks when they were preparing for the real ones—a prediction of failure before they even began.

For my own part, I was one of those rare creatures, a Liberal Democrat special adviser based in Downing Street, so I had a ring-side seat. You could even describe it as experiencing some white-knuckle rides that could be defined only as constitutional rollercoaster moments: the somewhat unexpected use of the veto by the PM at the EU summit in December 2011; the failure to reform the House of Lords in 2012; and the subsequent delay on boundary reforms that summer. All are examples of moments that shook the coalition. I must admit that, once or twice, I wondered how long it would take to clear my desk as the speculation mounted that the coalition would buckle under the strain.

However, in the end, because of the coalition, there have always been processes in place which ensured that the business of delivering government policies and plans prevails over disagreements between two political parties that are so different. It is the combination of both formality and transparency which has made this coalition work: from the Cabinet Secretary’s role to the daily meetings; from the return to cabinet government and the proper use of Cabinet sub-committees to the existence of the quad to resolve issues and plan major initiatives; and the back-stop of the coalition committee, which has met only twice. Of course, there have been disagreements, and on some issues they have been profound but, most of the time, the schedules and a business-like attitude have prevailed. I take this opportunity to pay tribute to the noble Lord, Lord O’Donnell, for setting up some of the processes which have served the coalition so well.

I recall one of the first meetings I attended was such a robust exchange that I was quite surprised by it. However, I soon learnt that conversations at the heart of government should be robust, just as they should be in any senior management operation of any organisation. Certainly, the stories in the press over the past few days suggest that “robust” has been taken to a whole new level, but I would speculate that by the time we get to the next general election many of the disagreements—genuine policy disagreements—will have been more transparent as a result of coalition. I hope that ways are found to ensure this level of transparency about all future Governments and not just coalitions. For instance, anyone can now go on the Government’s website and see the coalition agreement and what progress has been made in each area in that agreement. That is not something that was provided under previous Administrations.

There is, of course, an ongoing narrative that this form of government is a disgrace and that rows dominate. However, we must not lose sight of the fact that majority governments can and do row, factionalise and fall out, and this is not a symptom of coalition. It is about people and getting things done. After all, coalition has been a regular post-war feature in both Germany and Italy, but with varying results. I personally will never forget the astonishment I experienced when a Liberal Democrat MP described to me how a Labour Cabinet Minister had invited him in and given him a list of questions to use to probe another member of the Labour Cabinet. A mere glimpse inside the unpleasant world created by Damian McBride would show rows that dragged everyone down in a majority Government, including decent civil servants caught in the crossfire. Falling out is a fact of life in government. Keeping it to policy and away from personality and having processes that are used to ensure that should always be the goal. If anything, the processes and formality that have been necessary to serve two parties in government can only be an improvement.

I would like to touch on the role of the Cabinet Secretary and Permanent Secretaries, because I believe that they are more and more crucial to resolving these issues. Under this coalition, the Cabinet Secretaries have provided a necessary and important link between the Prime Minister, the Deputy Prime Minister, Number 10 and the Cabinet Office. However, as the Institute for Government points out in its latest report about the final year of coalition, some in Whitehall prefer the ambiguity. It goes on to say:

“Many in Westminster and Whitehall still behave as if the Coalition does not exist, or as if its existence requires only informal and temporary adjustments”.

I am sure that other noble Lords have heard stories from their friends in the Civil Service of arriving at a meeting to discover that no Liberal Democrats are at the table, and wondering what on earth to do about it. This is where I believe that the role of the Permanent Secretary in each department is vital. Permanent Secretaries should have sufficient objectivity and seniority to ensure that their departments are run with an understanding of two political parties in power. Their role as an honest broker is something the IFG has recommended. I would love to see some follow-up on this.

Like the Cabinet Secretary, Permanent Secretaries have a duty to deliver government policy and to help to plan and prepare for the next Government. The committee’s conclusions on the need for confidential briefings in the run-up to an election provide a sensible guide, and I really welcome that. I also welcome the useful examples from both the Scottish Parliament and the Welsh Assembly, shared impressively with us by the noble Lord, Lord McConnell. The success that he and my noble and learned friend Lord Wallace of Tankerness achieved at “conscious uncoupling” is an example to us all. The bromance is still there: we can see it in their eyes.

I would like to touch on one more specific area of constitutional change examined by the committee—that of the fixed-term Parliament. While it has been delivered by this coalition Government and it has provided a level of stability which was essential for economic recovery, I urge noble Lords to see this as a change which will enhance Government, whether it be majority, minority or coalition. Indeed, only this week the CBI expressed its concerns about political instability and the likely effect on business. A five-year fixed term provides all Governments with an opportunity to look before leaping. I cannot agree more with the noble Lord, Lord O’Donnell, that there is sometimes an obsession with driving through new pieces of legislation. I recall the opportunity that came up—if you can call it that—when Lords reform fell and there was time on the parliamentary agenda. That was an opportunity to use it in a much more creative and imaginative way than introducing more legislation.

As the recent Crewe and King book, The Blunders of our Governments, demonstrates, time and time again the speed and pace of policy change, without testing in advance, results in failure. I suggest that the well worn phrase, “hit the ground running” for a new government should drive fear into the heart of every elector. I remember watching Lord Callaghan—the father of the noble Baroness, Lady Jay—on a results programme at the start of the Government in 1997. When asked what they should do, he replied, “They should probably sit down and have a cup of tea”. At the time I thought—I assume so did the Blair Government—that he was completely wrong. I am now beginning to understand what he meant. A fixed term of five years no longer means you need to front-load every policy change into the first Parliament. A fixed-term Parliament provides the thinking and testing time to trial things and test out and research policy before it is introduced. It does not need that race at the beginning that we are all so used to culturally because we are used to having a scenario without fixed-term Parliaments.

Over the next year, there will be a need for greater clarity, particularly for civil servants. Again, the Institute for Government provides useful advice about the need to reach agreement at the top about the rules and that those rules should be published. I conclude with a useful lesson in fighting elections and working together: the example of the Eastleigh by-election. The battle was fierce, but at the same time the parties worked together in government with economic recovery as a core purpose. That is not only possible in a theoretical sense; this coalition, on all sides, has shown it can be delivered in a practical sense.