Enterprise and Regulatory Reform Bill

Baroness Hussein-Ece Excerpts

Monday 4th March 2013 Lords Chamber

[Baroness Lister of Burtersett]

My Lords, I apologise for not being able to be present when this amendment was debated in Committee. However, I have read the debate and the balance of opinion clearly lay with the noble Baroness, Lady Campbell of Surbiton—not surprisingly, given the powerful speech she made and the one which she has also made today. It is a privilege to support an amendment moved by such a respected champion of equality and human rights, who I would like to call my noble friend. In doing so, I wish to address just two points that emerged during the debate in Committee.

First, the Minister argued that the general duty contained in Section 3 “creates unrealistic expectations”. She went on to acknowledge the importance of the statement contained in the general duty and suggested that it could,

“be replicated in the commission’s own strategic plan”—[Official Report, 9/1/13; col. GC 61.]

or mission statement. Surely, however, that is to undermine her own argument because if the problem is one of unrealistic expectations, they would still be created if replicated in a strategic plan or mission statement.

The other main argument put forward in the debate was that repeal of the general duty would not make any difference anyway, as it is of symbolic rather than practical importance. This is the official stance taken by the commission itself. I have two responses to that: first, as a number of noble Lords noted in Committee, this justification was challenged by Professor Sir Bob Hepple of Cambridge University. He argued that Section 3 has an important legal function and that without it equality law would be “rudderless” and would lack the “important unifying principle” that Section 3 provides, and which the Joint Committee on Human Rights welcomed in its report on the Equality Bill. However, even if the significance of the general duty were more symbolic than practical, symbols matter in politics and we should not underestimate the symbolism of removing the section. The deluge of e-mails that I have received in recent days defending Section 3 is a testament to the power of that symbolism.

At a time when politics has become increasingly managerial and uninspiring, I find it rather wonderful that the Equality Act contains an aspirational, visionary statement of intent. Moreover, the European Commission study on national equality bodies advised:

“In order to fully realise their potential in promoting equal treatment for all, equality bodies should develop a vision of their role within the administrative culture and society”.

It is a sad day if the vision enshrined in the legislation is now struck out. As the British Institute for Human Rights argues, it sends a worrying message that the Equality and Human Rights Commission,

“is to be a compliance factory with no real ambition or purpose”.

I fear that the suggested alternative put forward by the commission in its briefing, namely that it should be,

“a national expert on equality and human rights”,

and the strategic regulator for equality offers neither ambition nor visionary purpose but is, as the British Institute argues, purely descriptive, as the noble Baroness has already said. It offers mundane prose where Section 3 offered the poetry of high ideals.

I hope that the Minister will have thought again in the light of the support for this amendment in Committee and the public concern now being expressed. If not, should the noble Baroness, Lady Campbell, decide to test the opinion of the House, I hope that noble Lords will support her. The amendment will cost nothing, but it will provide reassurance that the work of the Equality and Human Rights Commission will continue to be framed by a vision of society in which each of us without exception is treated equally and with dignity and respect—the core principles of human rights.

[Baroness Hussein-Ece]

My Lords, I associate myself with what has been said by the noble Baronesses, Lady Campbell and Lady Lister. I do not want to repeat what I said at Second Reading—we had a very full debate then—but I was disappointed that we continue to hear that removing the general duty was a bit of tidying up and that it would have no effect whatever on the work or legal responsibilities of the commission. The question that has been put a number of times, including by myself, was then why do it? Why do something if it will have no impact at all? I am afraid that the reply has not given me much confidence.

I strongly believe that the Government have a choice between a strong independent body that is committed to promoting and safeguarding our values, which I believe are British values, independent of the Government of the day—whichever colour—or we go for the option of a watered-down, less independent, weaker institution, which in time would be rendered merely an enforcement agency or regulator without the vision and underpinning that is so important. I cannot think of another organisation, independent or statutory, that does not have some sort of mission statement or a duty to promote or do something. This is the only organisation of its kind in this country. Are we suggesting that the Equality and Human Rights Commission does not need such a mission or values, which were very much fought over and arose as a result of cross-party agreement when the Equality Act 2006 was debated and enshrined?

I said at Second Reading, and it is worth saying again, that the then Opposition gender and equality spokesperson Eleanor Laing, MP, spoke of how important it is that the general duty is ambitious and wide ranging. With the change of government and apparently as part of an unwritten agreement, this seems to have changed for whatever reason, and I am disappointed.

There is an opportunity here for the Government to say what sort of organisation we want. We have a choice, but I also think that maybe we need to take a step back. Perhaps this is not the right place to debate what sort of mission statement or general duty an organisation as important as this, with such a multifaceted function, should have at this stage. We evidently need more time to consider this. It cannot be resolved via this Bill on the Floor of the House.

Will the Government take this away and consider the type of organisation they want and what they want it to do? As I said, in line with other organisations, if not in this country then in the world, it should have some form of agreed mission statement incorporating its aims, responsibilities and duties to the taxpayers and citizens of this country. The Government should do this in consultation with the Equality and Human Rights Commission, and bring it back to the House. Will the Minister respond to that?

--- Later in debate ---

[Baroness Thornton]

My Lords, Amendment 76 concerns equality impact assessments and would reinstate statutory requirements to undertake them as part of the public sector equality duty. An equality impact assessment involves assessing the likely or actual effects of policies or services on people in respect of disability, gender and racial equality. While equality impact assessments are not legally required, they have been widely adopted as an effective and efficient means for public authorities to undertake proper consideration of equal opportunities. They are described by the authorities that use them as,

“a positive force for the delivery of real equality”.

Moreover, case law suggests that these assessments provide robust evidence documenting how decisions were reached. Indeed, case law has confirmed that to have due regard to equality, a public authority needs to gather sufficient information about the impact on equality, give such information proper consideration at a formative stage of decision-making and consider whether any negative impact can be eliminated, mitigated or justified. Authorities are also advised to have some kind of audit trail to show that the actions they took comply with the duty. Therefore, while it is true that the courts have never held that there is a requirement to complete a written equality impact assessment or that having an equality impact assessment itself is sufficient to show compliance with a duty—especially if it has been completed with a purely tick-box or form-filling mentality—the main components of a good-quality, substantive equality impact assessment process are what the courts have held to be necessary in order to have due regard to equality.

It does not help to ensure public authorities’ compliance with their duty to have the Prime Minister and other government Ministers simply dismissing equality impact assessments as wasteful, bureaucratic and unnecessary exercises. Rather than calling time on equality impact assessments, as the Prime Minister did at the CBI conference in November 2012, we believe that these vital assessments should be enshrined in legislation. We therefore call for an additional amendment to be made to the Enterprise and Regulatory Reform Bill that would require public authorities to assess, consult, publish and monitor the likely impact of proposed policies.

This becomes even more important when, days after the announcement of a review of the public sector equality duty by the Secretary of State, Maria Miller, the Prime Minister announced that public sector organisations will no longer be required to undertake equality impact assessments as a means of fulfilling their obligations outlined in the public sector equality duty. Instead, these important assessments have been dismissed as unnecessary.

Repeated government announcements about equality law being burdensome red tape, the declaration of the Prime Minister at the CBI conference, and the dismissal of equality monitoring by the Communities Secretary Eric Pickles as unnecessary, intrusive and a waste of taxpayers’ money, fuel our concerns about the removal of these assessments. Indeed, I was reflecting that it would be nice if this Government actually made some positive announcements about equality impact assessments and how they are necessary to judge the impact of how public money is spent and used. Just saying, as the Prime Minister did, that,

“We have smart people in Whitehall who consider equalities issues while they’re making the policy. We don’t need all this extra tick-box stuff … so I can tell you today, we are calling time on equality impact assessments”,

seems to me to be a somewhat facile assessment of what is a useful public sector tool.

It is notable that the review of the public sector equality duty comes after the Government were criticised by the EHRC for failing to abide by the requirements within it. Furthermore, despite its membership including four Conservatives, not one Labour politician has been appointed to the steering committee that is reviewing this. Will the Minister tell us when the steering group looking at the public sector equality duty is due to report? My understanding is that it has been further delayed and that it will not now report until the summer. How is the steering group conducting its inquiry and who is it inviting to talk to it about the public sector equality duty?

Will the Minister also comment on a recent blog for Liberal Democrat Voice by the BIS and Equality Minister Jo Swinson? She seemed to imply that the duty has actually held policymakers back from properly considering equality. She said:

“As Liberal Democrats, we do not think equalities should be about ticking boxes and regulatory hoops—it’s too important to be relegated to an administrative duty. Advancing LGBT, gender, disability and race equality will only be achieved by putting equalities at the heart of every department”.

She is right about that, but you also need to see the effects of the policies you are pursuing.

The Minister needs to address two issues. First, if you do not have an equality impact assessment, how will you assess the effect of the work of public authorities? Secondly, if the body that is reviewing the public sector equality duty reports back that it does not think it is necessary, what will the Government do with that information? Are we going to find ourselves at the end of the summer in a situation in which the Government completely stop looking at the impact of any of their policies, spending commitments and decisions on factors such as age or gender, or on any of the different groups, such as LGBT people, covered by equality legislation? I am at a loss to know what direction the Government think they are taking with this so-called regulatory reform. I beg to move.

[Baroness Hussein-Ece]

My Lords, I, too, support this amendment, to which I have added my name, as it seems to me there is an awful lot of misinformation regarding the benefits of having an equality impact assessment as part of the public sector equality duty. The noble Baroness has just mentioned tick-box exercises and bureaucracy, and described how this provision can be seen as a burden. However, it is an important tool and has been successfully used to assess the impact of public services and of government policy on vulnerable people. For many decades this was not the case. I cite my experience of working in a health authority before the public sector equality duty came into force, when it was very much up to the relevant health authority to assess whether different sections of the community or different groups received the same level of service, whether they could access that service and, indeed, whether the service was even appropriate. The public sector equality duty has gone some way to ensuring that vulnerable people, who are not always able to articulate the fact that they are not accessing a service or not benefiting from public services, are catered for and is an important way of ensuring that services are tailored to the local community. As I say, it has achieved some success.

I am not going to defend in your Lordships’ House every aspect of the way that this provision has been implemented. Of course, there is always room for improvement and greater accountability, and the amendment tries to address that. However, we must ensure that equality and the right of access to services is open to all, regardless of who they are or their background. Concerns have been raised about the way in which the steering group that has been mentioned has been established to review this issue. There does not seem to be a lot of transparency in the way that the review will conducted. There is also a lot of concern about the independence of the group given that everybody on it seems to be from a political party. I know that there is somebody from the Liberal Democrats on it but I have had no contact with that person. I would like to know how the group will take evidence and evaluate whether equality impact assessments should be changed or, indeed, removed. I, too, would like more information about this steering group which has been charged with this very important task.

As I say, the duty encourages proactive action to close equality gaps in health provision for different ethnic and other groups, and to ensure that services meet the needs of those who use them. It provides an important evidence base to support provision that is effective and efficient and ensures that services provide value for money, so it has served an important purpose. I hope that the Minister will accommodate some sections of this amendment and will look at equality impact assessments as a way of assisting the provision of services as opposed to being detrimental to them. I declare an interest as a commissioner of the Equality and Human Rights Commission when it instigated a review of the Treasury’s compliance with the duty as regards the 2010 spending review. The public sector equality duty can make a huge difference if applied purposefully, and was seen by people in the Treasury and, indeed, by people in government as a helpful thing to do. Aspects of that spending review, such as its impact on women and minority groups, might not have been considered, so the duty was seen as a positive and helpful measure. I hope that the Minister will say how she thinks we may continue on a positive note by rolling this out.

--- Later in debate ---

[Baroness Prosser]

Before speaking to this amendment, I should like to clarify for your Lordships any question of a possible conflict of interest. I was until 3 December last year the deputy chair of the Equality and Human Rights Commission. At that point, I had served two three-year terms and my appointment terminated. I therefore no longer have a direct interest in the commission but I do of course retain a general interest in both the commission and its work.

Turning to the matter at hand, perhaps I may express to noble Lords my overall view of the value of this part of the debate on Clause 57 and why this group of amendments is so important to the future of the commission and to equalities in our country more generally. The ability of citizens to feel and believe that they have an equal chance in life and, importantly, to feel and believe that their Government think they should have an equal chance is key and central to the development of a harmonious and comfortable society. At this particular time, with its harsh economic circumstances and shortage of employment opportunities, it is common for those who are struggling to lay the blame for their plight on those less familiar to them.

Situations such as these require Governments to be strong and forthright in making clear their support for tolerance and fairness, and to speak loudly of the value of legislation and government machinery which helps people to enjoy equal rights and to access recourse to justice when those rights are violated. Comments from government which continually link equalities legislation with red tape, bureaucracy and burdens undermine the confidence of citizens and allow for the growth of intolerance and unfair behaviour. The purpose of this group of amendments is to enable the Government to be seen to recognise that the Equality and Human Rights Commission is a valuable, serious and important tool in delivering and regulating equality legislation in this country. It would put the commission on the same footing, for example, as the National Audit Office, the Electoral Commission and the Parliamentary and Health Service Ombudsman.

Strengthening the commission’s accountability to Parliament has been endorsed by the United Nations International Co-ordinating Committee chair. In a letter to the then Minister for Equalities, Theresa May, the ICC chair, Dr Mousa Borayzat, suggests that the Government should use the opportunity of this Bill to strengthen the provisions of the Equality Act 2006 in areas related to the commission’s independence.

Parliamentary scrutiny of the appointment of the commission chair has already taken place. The noble Baroness, Lady O’Neill, appointed in November of last year, appeared before the Joint Committee on Human Rights. That extra interest and study of the recommended candidate not only adds to the status of the appointment but involves and includes Parliament in the process. Greater knowledge and greater transparency ensue. Amendment 77 calls for this process to be extended to the appointment of commissioners—again, increasing knowledge and transparency—and I look forward to the Minister’s response on that point.

Amendments 78 and 79 seek to rectify the current unsatisfactory position whereby the commission’s annual report and accounts and the strategic plan are presented to whichever Secretary of State happens to have the current responsibility for equalities generally. Since its inception, the commission has reported to four different Secretaries of State, each of whom has had equalities added to their already busy portfolio of responsibilities. Changes to the responsibilities of those Secretaries of State have meant that the commission has been shuffled around Whitehall depending on where the Secretary of State came from. It is a very unsatisfactory state of affairs. Given that the rights and responsibilities contained within the equalities agenda touch every single adult in the land, is it not more sensible and more appropriate for Parliament to oversee and question these important reports and plans?

Finally, I turn to Amendment 80, which calls for the commission’s budget to be approved by Parliament. Two dangers arise from leaving the situation as it is. First, the current practice is for a budget allocation to be drawn up and allocated to the Government Equalities Office. This money then gets separated out with a share going to the EHRC. This hardly helps to instil any sense that the commission can maintain a healthy independence from government. Secondly, and most seriously, the EHRC is internationally recognised as the national human rights institution for England and Wales. Crucially, financial health and independence are central to our being able to maintain that international recognition.

In 2012, the UN General Assembly adopted the Belgrade principles. These relate to the relationship between NHRIs and national parliaments, and they include several mechanisms for closer relations between parliaments and national human rights institutions. For example, parliaments should develop a legal framework for the NHRI which secures its independence and its direct accountability to parliament. The principles also suggest that parliaments should invite members of NHRIs to debate their strategic plan and/or their annual programme of activities in relation to their annual budget. These amendments would enable government to state clearly that arrangements in this country most certainly comply with the Belgrade principles.

None of these amendments should concern the Government’s desire to go easy on regulation or so-called red tape. They are all designed to help the Government to promote their commitment to the equality and human rights agenda and to send a message to the citizens of Britain that government believes in openness and transparency and the delivery of equal opportunities for all. I beg to move.

[Baroness Hussein-Ece]

My Lords, I shall not keep the House too long as the noble Baroness, Lady Prosser, has given such a comprehensive introduction to this group of amendments, to which I have added my name. There are just a few points that I should like to add.

The steps outlined in the amendments are, as I see it, enabling. They enable the commission to fulfil its mandate more effectively and to achieve more balance between independence, accountability and transparency. They build on recent developments such as the first pre-appointment hearing of the commission’s chair, as was mentioned.

I declare an interest as a commissioner of the Equality and Human Rights Commission until last December. I am all too well aware that the commission is very keen to advance its relationship with Parliament and to have the ability to work across government departments. As has been said, the current arrangement has acted as a hindrance and has not oiled the wheels, so to speak, to enable the commission to work more effectively with other government departments—something that it should be doing. It has the responsibility to work with all departments across government, given its wide-ranging remit. The current arrangement of going through the Government Equalities Office has limited this to an extent. I see the commission’s responsibility for assessing how the Government comply with, for example, domestic and international equality rights obligations as a positive development and a strengthening of its relationship with Parliament.

At Second Reading, I said that setting the budget is so important that it needs to be done in a more timely, transparent and effective way. I was at the budget-setting process last year. I remember being at a board meeting in February when the commissioners still had no idea what their budget would be from 1 April. That is not satisfactory or acceptable, and it needs to be addressed. Taking these amendments on board would go some way to addressing this and making sure that the commission becomes more transparent and accountable and is allowed to function. We talk about a red tape challenge, but it goes both ways. There has been a lot of red tape attached to this commission from its inception. It has almost been bound and gagged at birth and has not been allowed to function properly. This is a way of releasing it to an extent, while keeping some important checks and balances in place.

[Baroness Thornton]

My Lords, I agree completely with the noble Baroness, Lady Hussein-Ece. I have written down “micromanagement by the Government Equalities Office is a bit of a red tape challenge that the Government could probably do well to look at”, so our thoughts were heading in the same direction. I see this group of amendments as continuing the positive discussion that we had in Grand Committee, where the Minister started to explain where the Government were going and what the direction of travel was. I see this group of amendments as part of that process and discussion, and I congratulate my noble friend Lady Prosser on her introduction.

What we are essentially addressing here is how the EHRC can deliver its statutory responsibility to assess how the Government comply with their domestic and international equality and human rights obligations, how it can best do that and how it can be independent in doing so. It seems to us that parliamentary accountability would provide the commission with that appropriate independence from Government to fulfil its role impartially. I hope that the Minister will accept something that I said in Grand Committee: this is not a means of stopping the Government setting the overall policy direction on equality matters. Everybody accepts that that is the Government’s job. However, it means that our Commission for Equality and Human Rights, apart from anything else, has the necessary independence to from time to time be critical of the Government and hold them properly to account.