House of Commons Governance

Bernard Jenkin Excerpts

Thursday 22nd January 2015 Commons Chamber

[Mr Straw]

With luck, this report will not be particularly uncomfortable to anybody, but it will involve major change—above all, for traditionalists, if there are such, in this House.

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

As a traditionalist, perhaps, neither do I want to see business as usual.

The right hon. Gentleman’s findings are a great opportunity for a big change in the culture—by which we mean the attitudes and behaviour—of people throughout the organisation so that, in cases such as that of the gym, there is somebody who is clearly accountable for such decisions and wants to take responsibility for making them. The lack of trust that the current structure has generated needs to change, and I think he has come up with the right solution. Some structures can be set up in such a way as to generate mistrust, but he has chosen a structure—not entirely one of my choosing, I accept—that will create the opportunity to generate real trust and accountability throughout the organisation.

[Mr Straw]

I am very grateful to the hon. Gentleman, not least because, as I acknowledged in my opening remarks, he co-sponsored the resolution that led to the establishment of the Committee. Those who have had to put up with it can smile about what has been going on in the bowels of the old Canon Row police station, but I very much hope that the Commission might examine, as a case study, what went wrong there. In my judgment—this is not to criticise the good faith of the officials involved—we have a decision-making structure at an official level where somebody gets something agreed, then they have another thought, and there is no proper structure above that for saying, “Should we be doing this? Why didn’t you think of that in advance?” It is ironic that the people making these decisions in Parliament are less accountable—certainly to Members and, I think, to senior officials—than they would be in an ordinary corporate organisation. That has to change because, apart from anything else, it is wasting a lot of money.

[Mr Jenkin]

The other tension that exists in the current organisation is that, with the best will in the world, the Management Board is trying to think strategically in the long term and there has not always been synergy between its strategic long-term thoughts and the Commission’s strategic long-term thoughts. Merging the two organisations will generate that synergy.

[Mr Straw]

I hope that is the case. Putting the non-executive members on to the Commission, with all their outside experience, should ensure that the input into a longer-term strategy is where it should be, which is ultimately with the Commission.

I want to conclude—

--- Later in debate ---

[Mr Hague]

That is a very fair point. When the Commission meets next week, subject to the motion being approved by the House today, it will be able to consider such things and, indeed, to bear in mind the urgency stressed by the right hon. Gentleman and other Members.

We have already invited the two existing external members of the Management Board to attend Commission meetings as a first step. Indeed, they attended the Commission’s meeting on Monday, so that recommendation has already been provisionally implemented, as announced by the Commission in a written statement to the House yesterday. My right hon. Friend the Member for Caithness, Sutherland and Easter Ross (John Thurso), who speaks for the Commission, may wish to elaborate on that. It was the first in a series of periodic updates on process that the Commission has undertaken to make, which in itself was in direct response to one of the Committee’s recommendations.

I have already indicated to the House on an earlier occasion that the Government are working hard to find a way to make the minor legislative changes that are needed to alter the membership of the Commission in the way recommended by the Committee, and to do so quickly. I will make further announcements about that as soon as I can. We will also provide the necessary time requested by the right hon. Member for Blackburn for the House to consider before the Dissolution of Parliament the minor changes to Standing Orders that implementation will require.

[Mr Jenkin]

Given the delays that tend to affect legislation, is there any impediment to the Management Board and the existing Commission working together as one body on a pro tem basis until legislation formalises the arrangement, even though any formal Commission decisions would have to be taken by the Commission as currently constituted?

[Mr Hague]

No, I do not believe there is any legislative impediment to that. Indeed, I have already mentioned how the two non-executive members of the Management Board have started attending the meetings of the Commission. That work is already going on, but legislation will be essential in order to alter the membership of the Commission. Given that we all envisage that the Commission in the new Parliament will be appointed and elected in a different way from before, there is a very good case for that legislation to be dealt with speedily. I will return to the House on that matter in the not-too-distant future.

Finally, we can acknowledge that the House faced a significant problem and disagreement on these matters, and that the Committee, chaired so ably by the right hon. Member for Blackburn, has not only found the right solution but set out a governance structure for the House that I believe will provide Members and the public alike with the levels of confidence, capability and accountability that are so vital to the long-term health of the House of Commons.

--- Later in debate ---

[Ms Eagle]

I strongly agree with the hon. Gentleman. I hope that anyone who wishes to apply for the post will read the Committee’s report, as well as all the fascinating evidence people gave in such a short time, so that they are well aware of the nature of the job and the authority that we intend should go with it.

[Mr Jenkin]

I agree with everything that has been said, but what is so vital in the arrangement is that there should be complete trust and understanding between the Clerk of the House and the director general. The sequencing of the appointments, which my right hon. Friend the Leader of the House mentioned, is therefore very important. The Clerk must feel that he or she has had a say over the director general’s job description and how the job is advertised, otherwise the arrangement will not work. We will be setting it up to fail if anybody feels that premature decisions have been foisted on them. That must be borne in mind.

--- Later in debate ---

[Sir Oliver Heald (North East Hertfordshire) (Con)]

The hon. Member for Wallasey (Ms Eagle) talked of the pace of change over the years. She and I used to sit on the Select Committee on Employment in the early 1990s, when Committees were not supported to the extent they are now. As has been observed by others, there has been massive change over that period. This report has presented an opportunity to look at our arrangements, many years since Members last looked at them, and to see how we can better fit them to the current day.

I pay tribute to the work of our Chairman, the right hon. Member for Blackburn (Mr Straw). The Committee sat a great deal. We sat three times a week and took evidence from many witnesses. I am grateful to him. It was a privilege to serve under him. We saw some excellent chairmanship skills, which is not surprising after his many years here and all the important posts he has held over the years.

It was a particularly good idea for the Committee to meet 60 staff members in break-out groups to hear their views on the governance of the House. That might be a good model for the House of Commons Commission to follow occasionally. The staff were genuinely excited and pleased to be asked their views.

I am proud of the work of the Committee. I pay tribute to my colleagues and the staff who helped us. It was a major undertaking and the report was delivered early. I am glad that the Commission has pledged to implement the proposals if the House supports them today.

The right hon. Member for Neath (Mr Hain), with whom I served on the Modernisation Committee when I was shadow Leader of the House, asked whether this is a major change. One only has to look at the organograms in annexes E and F to see that it is. The wonderful current arrangements are shown in annex F, which is like a piece of modern art, it is so complex. What is being proposed is a much simpler, more straightforward and more modern system.

I do not want to dwell on the reasons the Governance Committee was set up. It was clear from the evidence that we heard that it was time for Members to look at this issue. I believe that the Committee did a thorough and good job.

One focus for the Committee was to consider the role of Clerk of the House and chief executive. We heard important evidence from Members and a large number of other witnesses. Lord Browne, who at the time was the Government’s lead non-executive, was a particularly telling witness. He explained that, in designing who should be at the top of the pyramid of officers in a company, it was important to look at who had detailed knowledge of the core business. Although we are not a company—we are a very unusual body indeed—I felt that he had a point. He felt that the same principle should apply here, and I rather agreed.

We also heard from Lord Judge, the previous Lord Chief Justice, that if he was talking about privilege he would expect to talk to the person who was in charge and was expert in the matter. Many others, including the former leader of the Liberal Democrats, the right hon. and learned Member for North East Fife (Sir Menzies Campbell), also gave good evidence on that point.

One thing that became clear during our deliberations was that there are models in the public service of the senior official having somebody with commercial and operational skills working with him. That can be valuable in ensuring that what is decided actually gets done. We heard from John Manzoni, chief executive of the civil service, and Michael Whitehouse, chief operating officer for the Comptroller and Auditor General at the National Audit Office. Lord Browne told us that if there are to be two roles, it is vital to have clarity and proper job specifications, and we have set out in the report the specifications for the two roles we decided on. He said:

“Governance must start with clarity, which is difficult to achieve, and with a clear understanding of accountability, which includes decision rights. Who gets to decide what and to whom do you report when you have done it?”

The chief executive of the civil service, who reports to the Cabinet Secretary, and the chief operating officer of the NAO, who reports to the Comptroller and Auditor General, had found that it was possible to have a senior official working closely with the person in charge in a role that was described in different ways—chief executive or chief operating officer. They found that it depended crucially on having the right people in position, having clarity and the two people having an ability to co-operate. We have set out a process whereby the Clerk would be appointed first and then the director general, which is important to ensure that we have people who can work closely together.

[Mr Jenkin]

From hearing this debate, I am increasingly persuaded that part of the accountability that we need is the autonomy and clear visibility of the director general. Even now, the director general of facilities wears a badge telling us his name and title, and he feels more accountable because people stop him and talk to him as he walks around the Palace. That shows how important the visibility and demonstrable autonomy of the director general will be under the new arrangement, which is something we have all learned from this process.

[Sir Oliver Heald]

I very much agree. We use the words “overall responsibility” several times in the job specification for the director general, to show that autonomy.

I support the conclusion that the Clerk should remain the senior official of the House of Commons, with the authority that that involves, but that a director general should bring the skills we have just discussed to that important role. It is also right that the director general should have the freedom to initiate in certain areas, that he should be on the House of Commons Commission and that his role should be clearly defined.

During the course of our evidence taking, it became clear that the arrangements for the Commission and the Management Board were not working as well as they should, partly because of the structure, which I have already mentioned and which is obvious from the annexes to which I have referred, but also partly because of culture. We proposed a model that would expand the Commission and involve every important player in this place, and we clarified an enhanced role for Back-Bench Members of the Commission. As the motion states, it is important that there is party balance on the Commission, and it is also important that there are non-executive directors to strengthen it and ensure that there is proper business experience at the top level.

The effect of the changes will be that the Management Board will be abolished and replaced with an executive committee. That is more common in public companies and other parts of the public sector. It will be a streamlined body, working on a House service basis, committed to delivering the Commission’s decisions. Some suggest that the Clerk should chair that body, but we decided that, overall, it should be the place where the director general ensures that the Commission’s decisions are put into effect. The Clerk should of course be a member, but the lead role of implementation should be with the director general.

The report is more extensive than we first expected, and I believe that it provides a good way forward for the future. I hope that the Government will commit the time necessary to put the new system in place so that it takes effect immediately after the general election, and I was grateful to the Leader of the House for his points on that, which seemed encouraging.

As somebody who has practised as an employment lawyer and advised the recruitment industry in the past, I was a bit surprised by the recruitment procedure followed last summer. The procedure from 2011, which was supervised by Susan Craig of the human resources department here, was a good step forward on what had happened previously. Although it was intended that a similar procedure would be followed this time, it was not. The House must have state-of-the-art recruitment procedures in place, so I welcome the report’s provisions setting out a model for future recruitment in line with current practice. That is an improvement on the 2011 procedure and fits in with the recommendations that Sir Kevin Tebbit made as long ago as 2007.

Over recent years, there has been a process of improving the way in which the House of Commons is managed, but having heard the evidence to the Governance Committee I have no doubt that there is a lot more to do. I believe that the report provides a basis for structural changes that are needed.

An important part of our recommendations relates to the culture of the House and the need for further efforts to achieve a more coherent House service that puts even more emphasis on staff development and training. Sir Kevin Tebbit told us that was important to break down the barriers between departments and functions. I am sure that is right, and our report suggests ways to foster that. I am proud of the report and its conclusions, and I hope that the House will agree that they have merit.