United Kingdom Statistics Authority

Bernard Jenkin Excerpts
Tuesday 13th December 2011

(12 years, 9 months ago)

Commons Chamber
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Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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I am grateful for the support of the official Opposition for this appointment, although I wondered whether the hon. Member for Barnsley East (Michael Dugher) was going to declare an interest during his remarks. He might have forgotten—it is a failing of us all, I suppose—but if he looks at the inside cover of the report from which he quoted, he will see that he is still a member of the Public Administration Committee. He has very honourably absented himself ever since he joined Labour’s Front-Bench team, but I hope that he will involve his party in putting forward a new nominee for the Committee, because it would be of great service to the Committee and the House. I make no personal criticism of him whatsoever.

When he appeared before my Committee last week for his pre-appointment hearing, Andrew Dilnot was invited by the hon. Member for Newport West (Paul Flynn) to reflect on a statement that he made in 2007 during the passage of the Statistics and Registration Service Act 2007. Andrew Dilnot confirmed that he still held the view that he held then: that the passage of the 2007 Act, which set up the UK Statistics Authority, was

“a turning point. It has made possible something that otherwise was not possible, which is the recovery of a sense of independence and integrity for statistics…This Act gives the control and management of statistics back to Parliament…I think that was a very, very important step.”

I shall briefly remind the House of what the 2007 Act did. It established a new authority, now known as the UK Statistics Authority, with the statutory objective

“of promoting and safeguarding the production and publication of official statistics that serve the public good.”

To many of my right hon. and hon. Friends, that might seem rather a dry subject, but the public good in this instance is defined as

“informing the public about social and economic matters”

and

“assisting in the development and evaluation of public policy.”

This is serious stuff. The authority has the statutory duty

“to promote and safeguard the quality of official statistics, good practice in relation to official statistics and the comprehensiveness of official statistics”.

In this respect, “quality” means the “impartiality, accuracy and relevance” of official statistics and their coherence with other official statistics.

Robert Halfon Portrait Robert Halfon (Harlow) (Con)
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I am grateful to my hon. Friend for giving way, and for the chance to serve under his chairmanship when approving the appointment as head of the UK Statistics Authority of this excellent candidate. He mentioned the importance of informing the public about statistics. Does he agree that one of the main priorities for Mr Dilnot will be to improve the website to make it accessible to the public, to make it easy for them to use and to allow them to give some feedback on how statistics are presented?

Bernard Jenkin Portrait Mr Jenkin
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I am most grateful to my hon. Friend for raising that point, which he raised in the pre-appointment hearing and to which Andrew Dilnot responded favourably. I think he sees the potential of improving public access to statistics and the public’s ability to understand why they appear as they do, what value they offer and, therefore, how they can influence the democratic process. This goes to the heart of so much of what we do in this place, and the way in which we try to engage our public. Technology, particularly the internet, enables us to do that in an unprecedented way. There is no reason why every citizen cannot have access to the same information that we have—the information that informs the decisions that we make in this Parliament. We should therefore involve the public much more in that. Indeed, we have an obligation to ensure that what the Government and the Opposition say is objective, truthful and properly informative, rather than otherwise; we all know what Disraeli said about damned lies and statistics. We need to ensure that the quality of the numbers and the data that the Government produce genuinely informs the debate, rather than just advancing the partisan interests of those producing them.

Jesse Norman Portrait Jesse Norman (Hereford and South Herefordshire) (Con)
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Does my hon. Friend share the view that it is a proper function of the UK Statistics Authority to be fully separate, over and above the Office for National Statistics, or does he see some scope for reducing the number of quangos in this area?

Bernard Jenkin Portrait Mr Jenkin
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We are talking about a quango that survived the cull. Given that it was so recently established by an Act of Parliament, it would have been an absolute travesty if it had fallen to the cull. The reason is that for many years those who understand the rather arcane world of statistics have been campaigning for much more independent oversight of statistics. Indeed, independence is one of the key tests that the Government applied in the Public Bodies Bill and the review of arm’s length bodies. If a body’s independence is fundamental to the function it performs, that justifies its existence. Therefore, the United Kingdom Statistics Authority was never on the list.

John Healey Portrait John Healey (Wentworth and Dearne) (Lab)
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Perhaps the hon. Gentleman would like to remind his hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman) that the Office for National Statistics and the UK Statistics Authority are not two separate bodies, but are one and the same. Indeed, the Statistics and Registration Service Act 2007 sets out the delicate balance between the regulator and producer of statistics, which is one of the big challenges that any chair of UKSA must be able to manage.

Bernard Jenkin Portrait Mr Jenkin
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I am grateful for that intervention, because one of the things that we discussed in our pre-appointment hearing was the balance between oversight and production. The ONS is basically the producer of statistics, while UKSA should provide the oversight. However, the two are not directly separated in the way that one would expect, which is why the independence of UKSA’s chair is such an important feature of the arrangement. Therefore, the authority has a particular duty to ensure the accessibility of statistics.

Since its establishment in 2008 the authority has had the duty to monitor and report publicly on areas of concern in relation to good practice and the quality and comprehensiveness of all official statistics across Government and arm’s length bodies. The authority consulted on and established a code of practice for official statistics in 2009. Indeed, it seems astonishing that there was no such code of practice until UKSA established it. UKSA set independent professional standards for statistics in government, and is assessing against those standards all government statistical products that are classified as national statistics. There are some 1,300 series of statistics produced by government. One third of those statistical products are issued by the ONS, for which the authority performs the governance function.

The other key function of the new authority has been to challenge Departments and Ministers on the quality and integrity of the statistics for which they are responsible. As hon. Members, including several Ministers past and present, will know—I see in his place the right hon. Member for Blackburn (Mr Straw), the former Home Secretary—the authority’s first chair, Sir Michael Scholar, has been ready to challenge Government practices in the preparation and release of statistics where he and the authority have considered these practices to be corrosive of trust in official statistics. I must say that UKSA should have a sense of mission about its purpose; the Public Administration Committee certainly shares this sense of mission.

Sir Michael’s interventions, made in public and invariably copied to my Committee and to the relevant departmental Select Committee, have, I can reliably attest, been regarded with a mixture of fear and outrage in Whitehall. I think the House would be worried if the pronouncements of the authority—a non-ministerial department accountable to the House through my Committee—were not feared and respected in Departments and ministerial private offices, or, indeed, by Her Majesty’s official Opposition. My right hon. Friend the Prime Minister would attest that when we were in opposition, we suffered from the whiplash of Sir Michael’s interventions.

One such early intervention, in December 2008, was to raise in public with the permanent secretary at 10 Downing street an allegation that No. 10 Downing street special advisers had

“caused the Home Office to issue a Press Release which prematurely published provisional statistics for hospital admissions for knife or sharp instrument wounding…These statistics were not due for publication for some time, and had not therefore been through the regular process of checking and quality assurance. The statisticians who produced them, together with the National Statistician, tried unsuccessfully to prevent their premature, irregular and selective release. I hope you will agree that the publication of prematurely released and unchecked statistics is corrosive of public trust in official statistics, and incompatible with the high standards which we are all seeking to establish.”

This intervention resulted in an apology from the then Home Secretary on the next sitting day and a swift investigation by the Cabinet Secretary, which led to substantial changes to guidance to officials on how statistics should be handled, particularly on selective publication from unpublished data sets. An explicit reference was also inserted into the ministerial code, requiring Ministers to abide by the code of practice for official statistics. I regard it as part of the mission of UKSA and my Committee to empower the professional statisticians in government to stand up for the integrity of statistics when under the political pressure that inevitably arises in modern politics.

More recently, Sir Michael has raised with the Chancellor the issue of pre-release access by Ministers, advisers and officials to sensitive economic statistics such as the consumer prices index and retail prices index inflation figures. Sir Michael has asked—I tend to agree with him—what reason there can be for allowing prior access to these figures to a group of up to 50 individuals some 24 hours before publication. I would add that that can be to the advantage only of the Government. For the sake of trust in the use of official statistics, Sir Michael has requested that the number of recipients of these figures be cut to an absolute minimum and the time reduced to the shortest period necessary. I would add: why not?

My Committee is very concerned by the Government’s adherence to pre-release practices. It greatly concerned our predecessor Committee under Tony Wright, and we thought that those practices would be abolished by this Administration when they took office. When the Statistics and Registration Service Bill was going through Parliament, the Minister for the Cabinet Office and Paymaster General gave explicit assurances when we were in opposition that we would abolish pre-release when we were elected. I have to say that we expect the Public Administration Committee to return to the issue in the new year.

Sir Michael Scholar has exemplified an independence of mind and a desire to be independent of Government, which we have thoroughly supported; it could be considered all the more galling as he also served as a most distinguished senior civil servant in Whitehall before he took up this appointment. When he gave evidence to us on the challenges facing his successor he was clear that the single most important feature of his office was its independence. We have been concerned that his successor should be similarly independent, with the judgment to know when to stand up to Ministers to make crucial points about the proper use of official statistics.

In March 2011 Sir Michael indicated his desire to step down, and a competition was initiated to find a successor. A panel—which I understand was chaired by the permanent secretary to the Treasury, and included the Cabinet Secretary—recommended a candidate who was presented to us for approval as the Government’s preferred candidate. I commend my right hon. Friend the Minister for the Cabinet Office on the fact that this debate is taking place, because he conceded, in answer to a question in the Committee, that it would be appropriate for the appointment to be confirmed by a resolution of the House, and for the appointment to be made only after having been so confirmed. If I am correct, that procedure did not apply to Sir Michael Scholar’s appointment and is not required by Act of Parliament.

That is a testament to the Government’s determination to ensure the independence of the appointment, although, perhaps ironically, my right hon. Friend will have rued the day that he made that undertaking. Earlier this year we held a pre-appointment hearing with Dame Janet Finch, an academic of great distinction and experience, to examine her professional competences and personal independence with regard to the appointment. It is a matter of record that the hearing was a somewhat difficult occasion. Subsequently Dame Janet wrote to the Cabinet Secretary, on her own initiative, to say that it had become clear during the course of the hearing that she and the Committee

“had differing views over how the job should be undertaken, and in particular how the independence of the Chair should be exercised.”

I commend her for applying for the post, for gamely putting herself up for the post, and for behaving in such a dignified way. She withdrew from the selection process entirely voluntarily. May I place on record the Committee’s appreciation for the dignified way in which she handled a difficult personal situation? Her conduct in the matter was exemplary, and the Committee continues to hold her in the highest esteem.

David Heyes Portrait David Heyes (Ashton-under-Lyne) (Lab)
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I have served on the Public Administration Committee both under the hon. Gentleman’s chairmanship and for many years before that, and only recently have we taken on the responsibility for pre-appointment hearings. Does he agree that this is a fine example of how a pre-appointment hearing can work to produce an excellent candidate, whom we talked about earlier, in a sensitive and intelligent manner?

Bernard Jenkin Portrait Mr Jenkin
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I am grateful for that comment. I also want to place on record my appreciation for the action subsequently taken by my right hon. Friend the Minister for the Cabinet Office, who readily agreed that the competition should be rerun and generously consulted my Committee on the arrangements for rerunning it, as it was clear that the previous arrangements had led to the situation. He decided that the nomination panel should be chosen afresh, and the new panel did not include the Cabinet Secretary or anyone else of permanent secretary rank. He agreed that a parliamentarian should serve on the panel, to assess the independence of the panel from the Executive, and we are pleased that he accepted our suggestion that the hon. Member for Luton North (Kelvin Hopkins), a member of the Public Administration Committee and academic statistician of some distinction himself, should serve on that panel, which he duly did.

Having been consulted and had our views taken into account, the Committee was confident that the fresh panel was well placed to select an independent and capable candidate. The House has before it the transcript of the pre-appointment hearing held with the Government’s preferred candidate, Andrew Dilnot, who gave a stellar performance. He is no stranger to any of us—his work with the Institute for Fiscal Studies was for many years required reading at Budget time—and I am sure that many right hon. and hon. Members on both sides of the House have been briefed by him on occasion. As he pointed out to us, he was always able to conduct his analysis of Budget documents without the benefit of pre-release access. He is an accomplished communicator of statistical issues, and communicates in a way that can make him truly engaging and relevant to the wider public. He was the first presenter of BBC Radio 4’s “More or Less” programme, which, whenever I turn it on, I find myself unable to turn off, because it is so revealing about what we need to know in public life.

In the arena of fiscal statistics, Andrew Dilnot has long demonstrated an independence of mind and confidence that have attracted criticism only from those who have found his truths inconvenient. He has made it clear that, if appointed, he will want to work constructively with the Public Administration Committee, and to improve the standing and presentation of official statistics. Certainly my colleagues and I did not hesitate to conclude that he had the professional competences and personal independence necessary to fulfil the role of chair of the United Kingdom Statistics Authority. In fact, the two—he and the job—seem to have been made for each other.

I also look forward to Mr Dilnot’s introduction of a number of innovations that will benefit the public. The authority faces considerable challenges in the years ahead. For instance, it must steer a course towards a more efficient and cost-effective way of collecting population data to replace the census in 2021. Its governing legislation gives it the dual role—mentioned earlier by the hon. Member for Barnsley East (Michael Dugher)—of producer and regulator of official statistics, which is sometimes uncomfortable to negotiate, and which Mr Dilnot will wish to clarify. It must represent the statistical profession in Government effectively at a time when budget reductions mean the loss of statistical resources and the axing of whole statistical series. It must also act as cheerleader for official statistics when public trust in them is generally accepted to be low, and remains low despite the progress that has been made in recent years.

The Public Administration Committee is very confident that Andrew Dilnot is the right candidate to address those challenges, and to build on the considerable legacy left by Sir Michael Scholar, to whom I pay tribute. I particularly wish to mention that Sir Michael stayed on willingly for the extra months during what would otherwise have been an interregnum between his retirement and the delayed appointment of his successor. I wholeheartedly support the motion.

Jack Straw Portrait Mr Jack Straw (Blackburn) (Lab)
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Let me begin by declaring an interest: I am an honorary fellow of the Royal Statistical Society. The society graciously bestowed that honour on me for my work in the 1990s in advancing the case for an independent national statistical service and proper parliamentary scrutiny of statistics.

I am delighted to observe that my right hon. Friend the Member for Wentworth and Dearne (John Healey) is present. It was he who introduced the Statistics and Registration Service Act 2007, which completed the journey from a statistical service that was half independent and half controlled by Government to a service in which the producers of the statistics, the Office for National Statistics and its agents, and the supervisor of that production, the United Kingdom Statistics Authority, became entirely independent of Government.

I also commend the Public Administration Committee for its work both in monitoring the work of the authority and in conducting the process of this appointment. It is interesting to recall, as I do, the nervousness that was abroad at one time about Select Committees having any role in public appointments, given that this appointment has effectively been made entirely by Parliament, and has been endorsed by a Select Committee with the approval—hopefully—of the House.

I know Sir Michael Scholar well and I think that he did an outstanding job as the first chairman of the UK Statistics Authority, in difficult circumstances. Nobody should underestimate the pressure that was put on him when he dared to criticise the Government of whom I was a member. He criticised the frankly preposterous behaviour of part of the Government—special advisers in No. 10 and in the Home Office—in allowing not just the pre-release of statistics, but the traducing of statistics that should have been properly released by the Office for National Statistics.

That was part of a culture that went back to previous Administrations, and we have seen one example of it during this Administration, whereby special advisers in No. 10, all jockeying among themselves to show that they are more adept than their colleagues in getting material into the newspapers and anxious for attention from the master, cajole the people they believe are their subordinates—the special advisers in the individual Departments. They say, “We can see this on the grid”—the wretched grid—“and we must know about this. We want early information. There is something else coming up. We have heard a rumour that those nasty people in the Opposition are about to do X or Y, or there is a terribly bad news story, Z, and if only we can get this good news out, all will be fine.” That is all without purpose, it never works, it always ends in tears and it carries on. The problem is that previously, unless a strong and confident Minister was looking after those statistics, it was all too easy for this abuse to run away with itself. I had only one occasion when those at No. 10 tried this on me and I told them to get lost, saying that if they wanted I would come to the House to make a statement about what they were trying to suborn my officials and special advisers, who are of the highest integrity, into doing. I was secure in my position but a very large number of Ministers, sadly, are not in that happy position.

I know what the chuntering was when Sir Michael Scholar criticised the practice of the Home Office and No. 10 in December 2008—I believe it was then. It is no coincidence that much of the attempt to bypass official release mechanisms has taken place in respect of Home Office statistics. That is not because the Home Office statisticians—or now the Ministry of Justice statisticians—are any less worthy or any less replete with integrity; it is because of the highly political nature of the information they convey. Sir Michael set out, in handling that abuse, to continue in a similar manner, and he put his foot down on a number of further occasions—two when the Labour Government were in power and once under this Government. I hope that, bit by bit, Ministers, officials and special advisers will get the message that in the 21st century it is no more appropriate to try to interfere with the generation, organisation, analysis and publication of official statistics than it is to interfere in the generation, analysis and publication of the accounts of a Department.

No Minister or senior official at any level would dream of saying, “We’ve got to alter the accounts. It is a bit inconvenient but this has come up and we seem to have lost some money.” Such alteration is a criminal offence for directors of companies. It is worth remembering that in the early part of the 19th century it was perfectly commonplace for Ministers to ensure that there was a bit of fiddling of the statistics. A lot of Ministers lined their own pockets, a few got charged with corruption but generally got away with it, and one or two were impeached. That was the culture of the times. We have moved away from that in respect of financial probity, but we now have to see a similar cultural shift in respect of statistical probity because otherwise the whole political debate and discourse in this country will be the loser.

We can have serious discussions when it comes to arguments about finance. We know what the deficit is and we can argue about what its components are, but no one suggests that it has somehow been made up. It is there. With other statistics—particularly social statistics, and particularly those on crime and immigration—there has been a ridiculous argument about whether crime has gone up or down. The same applies to unemployment and so on. We must move away from that, because it is a real turn-off for the public and it is very undermining for the quality of debate in this country.

Let me make two points, the first of which is on pre-release statistics. The hon. Member for Harwich and North Essex (Mr Jenkin) was quite right to draw attention to the fact that before the election the Minister for the Cabinet Office and Paymaster General made a lot of play of the fact that he was going to abandon pre-release notice, or move at best to one hour. We should have abandoned it when we were in government, but we did not do so. He said that he would and then, when he came into government, hey presto, he supped at the royal jelly—or something like that—or had a nod from somebody at No. 10 and suddenly decided that he was wrong.

Bernard Jenkin Portrait Mr Jenkin
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Will the right hon. Gentleman reflect on what interests prevented him from persuading his colleagues to abolish it and does he therefore have some sympathy with my right hon. Friend the Minister for the Cabinet Office and Paymaster General as regards the opposition he might be facing?

Jack Straw Portrait Mr Straw
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I have sympathy with the Minister, of course. He happens to be my pair, anyway, so I declare that interest too. I have every sympathy with him, but the forces of darkness get tiring after a while. People always think that the Government will do better if only they can get early information and slip this or that past, but that is all nonsense.

My officials and others used to regard it as slightly tedious that I was not terribly bothered about when the figures were coming out—although I was early on, when I was neurotic about when the crime figures were being released. My view was that one had to ask what the point was of knowing in advance. It just led to a suspicion that we had somehow fiddled the figures because we had had them early and all the rest of it. There was absolutely no point at all. Why not find out at exactly the same time as anybody else? It is impertinent to think that Ministers should have any right to find out in advance. Why should they? They are not Ministers of figures—the figures belong to the public and Parliament. It is also self-defeating, in my opinion.

My advice to the Minister for the Cabinet Office and Paymaster General and his colleagues is: chill and defeat the forces of darkness. I am sorry I did not complete that task, notwithstanding being joined by my right hon. Friend the Member for Wentworth and Dearne. Ministers will do themselves an enormous favour if they abandon pre-release notice.

EU Council

Bernard Jenkin Excerpts
Monday 12th December 2011

(12 years, 9 months ago)

Commons Chamber
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Lord Cameron of Chipping Norton Portrait The Prime Minister
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I am afraid that that is completely wrong. Britain has been very consistent, tabling proposal after proposal for growth. It is a British proposal to complete the single market in energy, a British proposal to complete the single market in services and a British proposal, which has just been passed, to exempt all micro-businesses—those with fewer than 10 employees—from future European regulation. Britain has the most pro-growth, pro-enterprise, pro-single market Government, and that is the way it is going to stay.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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May I congratulate my right hon. Friend on sticking to a very simple principle of fairness in the European Union: that the institutions for the 27 are there for the 27? May I also remind him and those on the Opposition Benches—and, indeed, the BBC—that he has the support not only of the Conservative party but of the British people for what he has just done?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I am grateful for what my hon. Friend says. The absolute key to this issue about the institutions is actually what the new organisation does, rather than necessarily what the institutions do. The key is to protect the single market and those things that are vital for Britain. As I keep repeating, the fact is that an organisation outside the EU treaties is not allowed to cut across those treaties or the legislation under those treaties. It would be a greater danger to allow a treaty of 17 to go ahead within the EU, with all the additional powers, bureaucracy and everything else that involves, unless, of course, you can get the safeguards I was seeking.

Oral Answers to Questions

Bernard Jenkin Excerpts
Tuesday 15th November 2011

(12 years, 10 months ago)

Commons Chamber
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Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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4. What recent representations he has received on progress towards the objectives of the coalition agreement.

Nick Clegg Portrait The Deputy Prime Minister (Mr Nick Clegg)
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The coalition agreement underpins all the work of the Government and is the subject of many ongoing representations to Ministers.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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Does my right hon. Friend agree that creating jobs in the economy is a vital objective of the coalition and that the private sector is indeed creating those jobs? Do the Government believe that the present system of tribunals to adjudicate on unfair dismissal is encouraging firms to take on new people or is it discouraging job creation in the economy?

Nick Clegg Portrait The Deputy Prime Minister
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As my hon. Friend will know, we are looking at all the measures that we think hinder growth and job creation. We have already announced a significant change in the tribunal system such that the qualifying period is extended from one year to two years. We have also announced that we will explore the establishment of what are called “protected conversations” so that employers and employees can talk, as the name implies, in a protected way about the performance of those employees, which employers have demanded for a long time. They have welcomed it because they think it will help them create more jobs.

G20

Bernard Jenkin Excerpts
Monday 7th November 2011

(12 years, 10 months ago)

Commons Chamber
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Lord Cameron of Chipping Norton Portrait The Prime Minister
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No country has ever lost money lending it to the IMF. The IMF is, in a globalised world, a vital institution for supporting countries that get into deep economic distress, and, if we were to walk away from it and just to allow trading partners—in the eurozone or outside—to collapse with no one to help them, that would mean British jobs lost and British businesses going bust. It might give you a five-second soundbite on the news in order to try to give you some political advantage, but it would be completely irresponsible.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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I agree with my right hon. Friend that Greece’s remaining in the eurozone is a matter for the Greek Government, and that there is no free hit for the break-up of the euro, but will he take time to read the Centre for Economics and Business Research paper, which points out that, for Europe as a whole and the United Kingdom in particular, our economy will be growing faster in two years’ time if the euro breaks up than it will if we try to keep the currency going?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I have seen reports of the piece of work that my hon. Friend speaks about, and perhaps I will have time this evening to read it at greater leisure. We can look at the economic experts and what they say, but there is quite a strong consensus that the consequences of a country falling out of a single currency zone, where banks and businesses are very interrelated, are very serious for all the members concerned. As I say, if it happens, we will have contingency plans in place and we will have to manage them as best we can, but no one—however sceptical they are about the euro—should think there is an easy way for a country to leave.

Oral Answers to Questions

Bernard Jenkin Excerpts
Wednesday 2nd November 2011

(12 years, 11 months ago)

Commons Chamber
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Oliver Letwin Portrait Mr Letwin
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We believe that social impact bonds have an enormous role to play. The Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd), who has responsibility for the civil society, and I recently had a round table meeting with a group of social entrepreneurs and investors who are interested in investing in social enterprise. We are encouraging that and we are taking further steps through Big Society Capital to promote the use of social impact bonds. Of course our payment-by-results systems also make use of social impact bonds.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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8. What plans he has for the future of the role of the head of the civil service.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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The roles of Cabinet Secretary and head of the civil service are very different and were indeed separate roles until 1981. Following the announcement of the retirement of Sir Gus O’Donnell, the role of head of the civil service will, once again, be separated from the Cabinet Secretary role. The two individual roles will be more focused, and people can be appointed to each on the basis of the skills match to each role. An internal competition is under way to recruit the post holder from among existing permanent secretaries.

John Bercow Portrait Mr Speaker
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We need to leave time for the question.

Bernard Jenkin Portrait Mr Jenkin
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Change is the watchword of the Prime Minister and change in government is a vital ingredient of the Government’s reform programme. How will the head of the civil service be able to lead and implement change if he does not have equal authority and equal access to the centre of government as he does now?

Lord Maude of Horsham Portrait Mr Maude
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He or she will have equal access and will exercise a decisive role in leading the reform of the civil service so that we can create a genuinely modern, progressive civil service that a modern Britain requires.

European Council

Bernard Jenkin Excerpts
Monday 24th October 2011

(12 years, 11 months ago)

Commons Chamber
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Lord Cameron of Chipping Norton Portrait The Prime Minister
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As I said yesterday, the eurozone crisis has clearly had a chilling effect, not only on eurozone economies, but on our economy, the American economy and economies elsewhere in the world. The eurozone is a huge market for the world’s goods, and clearly there has been a slow-down, partly because of the lack of confidence in the eurozone. We must also be clear that a break-up of the eurozone would have severe consequences for neighbouring countries and banks. That is why it is very important that we work with eurozone partners to try to sort this issue out.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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May I join others in commending my right hon. Friend for his leadership on Libya, for which he deserves considerable credit? May I also thank him for the constructive tone that he is adopting towards those of us who will support today’s motion? So many parties have again and again promised a referendum, and the British people clearly want a say over our future relationship with the European Union. Does he understand our anxiety that it is ironic that the House of Commons is likely to vote heavily against what the British people want?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I thank my hon. Friend for his kind remarks about Libya and my tone, which I shall try to keep constructive throughout. I completely understand people’s frustrations: they were promised a referendum on the Lisbon treaty, but they did not get it because the treaty was put in place by the previous Government, which meant that it was not then possible to hold the referendum. However, the answer to the frustration in the country over not having a referendum on the last thing is not to offer one simply on the next idea. The most important thing is to deliver what people want, which is to ensure that we get the best out of the EU and that, where there are opportunities as Europe changes, we take those opportunities. That should be the focus in this Parliament and beyond.

Oral Answers to Questions

Bernard Jenkin Excerpts
Wednesday 7th September 2011

(13 years ago)

Commons Chamber
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Oliver Letwin Portrait Mr Letwin
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My hon. Friend has actively and aggressively pursued several Government Departments about these issues and I hope that he will continue to do so. He is absolutely right that too much of this still goes on. My right hon. Friend the Minister for the Cabinet Office, who has taken the lead on the issue and deserves great credit for that, has not tried to keep the issue secret—on the contrary, he has tried to open it up.

We have introduced a “mystery shopper” scheme, which allows suppliers to challenge Government procurers when they see overly bureaucratic processes. I am delighted to be able to tell the House that during the first three months of the scheme, 23 cases of things such as huge telephone-book-sized contracts were investigated and 11 have led to immediate reductions in tedious bureaucracy. All the information about the scheme has been published on the Cabinet Office website.

Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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Has my right hon. Friend had a chance to read the Public Administration Committee report “Government and IT—‘A Recipe For Rip-Offs’ ”? It points out that we cannot rely on the large systems integrators to involve small and medium-sized enterprises. The Government themselves have to employ people from that sector so that the Government can engage with it directly. That is the only way in which we will get SMEs involved in Government procurement.

Oliver Letwin Portrait Mr Letwin
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As with every product of the Select Committee in which my hon. Friend is so notably involved, we do indeed pay enormous attention to that report. My right hon. Friend the Minister for the Cabinet Office has already taken that set of steps and is already intending to ensure that we have the expertise to do exactly as my hon. Friend recommends. It is absolutely crucial that we get to grips with every large project, and some of them are central to the Government’s policy agenda—in welfare, for example.

Libya

Bernard Jenkin Excerpts
Monday 5th September 2011

(13 years ago)

Commons Chamber
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Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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May I commend my right hon. Friend for acting in a way that vindicates his policy of Britain acting as an effective global power? May I also commend him for not rushing to a new doctrine or going back to an old one such as liberal interventionism? Does the situation not demonstrate the importance of maintaining armed forces with global reach, so that we can influence global events and project our interests?

Lord Cameron of Chipping Norton Portrait The Prime Minister
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I am very grateful to my hon. Friend for his comments. What I would say about doctrine is that if you overdo your belief in a particular doctrine, you will find that the next problem that confronts you will fall completely outside it and you will have to spend a lot of time inventing a new doctrine to deal with it. I am a practical—[Interruption.] Members say that I am a Conservative, and that is right. I am a practical, liberal Conservative—that is what I believe, and I think this was a practical, liberal, Conservative intervention. [Hon. Members: “A new doctrine.”] It is a way of thinking.

On what my hon. Friend says about armed forces being able to project our reach and power, I absolutely agree with him, and we cannot maintain that reach and power by not having a defence review and by sticking with massed battle tanks in Europe. What we need to do is modernise our armed forces and make sure that we have the reach for the challenges of the future. I repeat what I said: far from disproving the strategic defence review, I think Libya proved the case for the sort of changes that we are making.

Parliamentary Commission for Administration and Health Service Commissioner for England

Bernard Jenkin Excerpts
Monday 18th July 2011

(13 years, 2 months ago)

Commons Chamber
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Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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I do not intend to detain the House for long. However, with my colleagues’ permission, I would like to place one or two points on the record. In particular, I would like to join the tributes paid to the existing ombudsman, who has done such a fantastic job over so many years. Ann Abraham has stamped her authority on the office of the Parliamentary and Health Service Ombudsman. In particular, she fought a gallant battle over the Equitable Life issue. I am pleased that in the end it was resolved amicably between her and the Government. No one can say that she did not change the course of history on that question, as she has on so many minor issues that are equally important to the people concerned.

Ann Abraham will continue in office until the end of this year. She gallantly gave notice in good time that she wished to step down to give us time to decide not just to appoint a successor but how to appoint one. Traditionally, under legislation, the appointment is made by Her Majesty the Queen on the recommendation of the Prime Minister and with reference to a resolution of both Houses of Parliament. However, traditionally, the appointment process has been handled entirely by the Cabinet Office. Quite early in the process, the Public Administration Committee made it clear that we thought that this was no longer a process that reflected the present times and that Parliament should be much more at the forefront of this procedure. I am grateful that the Government readily conceded this point and handed the whole process over to the House of Commons.

I am extremely grateful to those who took part in the appointment process, notably the Principal Clerk of Select Committees, the permanent secretary at the Department of Health, Una O’Brien, who was the Government nominee on the panel, Professor Alice Brown, who is a former public service ombudsman in Scotland, David Prince, who was the external assessor appointed by the Appointments Commission, and myself. I am pleased to tell the House that we reached a unanimous decision in favour of Dame Julie Mellor. We had a strong field of acceptable candidates from which to choose and many of them were capable of doing the job, but Dame Julie Mellor has an outstanding record of achievement in the public and private sectors.

In particular, Dame Julie Mellor excelled as chairman of the Equal Opportunities Commission between 2005 and 2009. I can assure the House that we are fortunate to have her. That judgment was confirmed by the pre-appointment hearing conducted by the PAC on 6 July, which was chaired by a colleague on the Committee, the hon. Member for Luton North (Kelvin Hopkins). I absented myself as I had served on the panel and therefore had a conflict of interest. I wanted to ensure that the Committee had a free run in making its own judgment about the ombudsman. Again, she received unanimous approval from the PAC, and I am sure that the House will wish her well in her appointment.

Perhaps the more important issue to raise, however, is the ombudsman’s remuneration. As the hon. Member for City of Durham (Roberta Blackman-Woods) pointed out from the Opposition Front Bench, we have slipped into the habit of aligning the ombudsman’s salary with that of a High Court judge, which was appropriate, because, like a High Court judge, the ombudsman has the right to summon persons and papers to resolve the issues before her. However, in the interests of pay restraint, and with the Prime Minister’s salary in mind, the Government have set about trying to re-evaluate the correct salary for quite a large number of public appointments.

The Committee was, shall I say, distressed that the ombudsman’s salary was caught up in that general process. The difficulty that we had in arguing for the status quo was that the Parliamentary Commissioner Act 1967 makes no reference to a High Court judge; rather, it says that the salary should be fixed to that of a permanent secretary. Unfortunately, unlike in 1967, when the legislation was passed, the salary of a permanent secretary is a moveable feast these days. Their salaries extend from a little over—or even a little under—£100,000 to well over £200,000. Fixing the salary to that of a permanent secretary has now become an arbitrary process, although we did not feel it right for the Government simply to take the matter into their own hands. The Government were determined that we should advertise the post with a salary range that we describe in our report on the remuneration as “arbitrary”, and we are distressed that we were left in that position.

The current ombudsman has been clear that de-linking the ombudsman’s salary from that of a High Court judge leaves the office vulnerable to the charge that it is being downgraded by the Government. The office used to be analogous to that of the Comptroller and Auditor General, who now earns a significantly higher salary than the ombudsman. At some stage this matter will have to be addressed, but, as the hon. Member for City of Durham said, the most invidious part of the process is that the ombudsman, having been approved by the panel and agreed by the Government in principle, then had to negotiate her salary within the range offered by the Government, which was between £152,000 and £172,753. We did not feel it right that someone who will be responsible for holding the Government to account on behalf of complainants should have to negotiate her remuneration with the very Government whom she should be regulating. Having discussed the matter with one of two others in prominent public positions who had found themselves in the same situation, I can state that the Committee is entirely right to have concluded that this is an entirely unacceptable basis on which to proceed.

Charlie Elphicke Portrait Charlie Elphicke (Dover) (Con)
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It is a great pleasure to serve on my hon. Friend’s Committee. I would like to hammer home the point that the function of the ombudsman is analogous to that of a High Court judge, in that the ombudsman acts as a large-scale arbiter and provider of justice. As such, it is right and proper that the ombudsman’s salary should be on a level equivalent to that of a High Court judge. Does my hon. Friend agree that the appropriate course is for the Minister to listen to this debate, go away and reconsider the matter?

Bernard Jenkin Portrait Mr Jenkin
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I have great sympathy with my hon. Friend’s comment, but the Committee concluded that it would be wrong to upset the arrangements that the new ombudsman had negotiated with the Government. To her credit, she did not argue the toss. She simply said, “I want this job, I want to serve Parliament” and decided that, for her, the remuneration was not significant. However, it is instructive to quote what she told the Public Administration Committee during her pre-appointment hearing. On whether it was right to downgrade the job and to negotiate her own salary, she said:

“I have to say that I do not think it has been a satisfactory process, and I have found myself making the principled argument…around what the criteria should be for determining the pay, and I do not think as an individual I should have been put in that position.”

The Government, having accepted that principle, are addressing the matter, but I have spoken about this matter with such force because it raises questions about every single public appointment that the Government make, and the independence of the appointments is at stake.

I am bound to tell the Minister that, on the advice of the Public Appointments Commissioner, we shall return to the way in which public appointments are made in a future inquiry, because we think that the use of the Prime Minister’s salary as an arbitrary benchmark for salaries for positions such as these is neither a scientific nor a reasonable basis for making such appointments.

Robert Halfon Portrait Robert Halfon (Harlow) (Con)
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Like my hon. Friend the Member for Dover (Charlie Elphicke), I served on the Committee that interviewed Dame Julie Mellor, and I agree that she gave an outstanding interview. Will my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) acknowledge that she is taking a substantial pay cut to take on the job of ombudsman?

Bernard Jenkin Portrait Mr Jenkin
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My hon. Friend is absolutely right. Since Dame Julie ceased to be chair of the Equality and Human Rights Commission, she has been working in the private sector and earning substantially more than she could ever hope to earn in the public sector. For that reason, she felt that she was going to take a pay cut anyway, and the differences that were being argued about were not worth any suggestion of compromising her independence. She has argued, however, that she should never have been left in that position. This also has a lesson for other appointments—particularly, perhaps, that of the chair of the United Kingdom Statistics Authority. In that instance, with a more limited field of candidates, the Government’s preferred candidate has withdrawn her name, so we shall have to go through a reappointment process. Perhaps if the right salary and conditions had been set at the outset, rather than being arbitrarily cut by the Government, we would not now be facing that situation.

I wish to be charitable to the Government, however. I thank them for addressing this matter, and they have agreed in principle that these things should be done differently next time. They have agreed that the salaries should be decided between the Chair of the Public Administration Committee and the Prime Minister before the recruitment process starts, so that when the position is advertised there is no question of the candidate having to arbitrate his or her salary after the appointment has been made.

In closing, I invite the Minister to recognise that this is the system that is effectively being put in place for the Comptroller and Auditor General, and that the salary should be agreed between the Chair of the Public Accounts Committee and the Government. Should not this also be reflected in the legislation for the ombudsman? The “Open Public Services” White Paper, which was published last week, suggests that the Government will amend the powers of the ombudsman in respect of tendering for public services, and there might well be other changes to the office of the ombudsman in the next year or two, particularly with regard to public access to the ombudsman, which at the moment is not general but is confined to health service complaints. Does the Minister agree that it would be preferable for stability in the salary to be reflected in legislation, to protect the independence of the position in future, rather than relying on horse trading between a Select Committee and the Government, which is how we have to proceed at the moment? I invite the Minister to give us some assurances on those points this evening.

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Lord Beamish Portrait Mr Jones
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There is—and quite rightly. Because of previous Governments’ and this Government’s pegging of MPs’ pay, many people, even some quite low-level local government workers, are earning considerably more than us. In terms of the process that we are addressing however, it is important that the ombudsman is independent of, and cannot be influenced by, Government. We have a slightly different relationship with the individuals to whom the hon. Gentleman has referred.

These measures were all brought in on the basis of pay restraint. A lot has been said about trying to cut senior salaries. I have already mentioned the Auditor General’s pay, and there seems to be some inconsistency across Government about where this restraint should apply. If we are going to make exceptions, I cannot see why things were changed here, as opposed to, say, for Bernard Gray who was appointed Chief of Defence Materiel at the Ministry of Defence by this Government on a salary of £250,000 a year, plus a potential bonus of £30,000. I know that that is a very important job; it delivers equipment to our armed forces. I have no objections to Bernard, either; I know him well, and he is a very fine individual. However, if the decision was taken to break the principle of the Prime Minister’s salary being the ceiling in that case, I do not understand why the Government have intervened in that way in this other case.

The Prime Minister’s letter of 21 June reveals a lot about the attitude to pay restraint policy. I do not think he has understood the process. What we are doing here is going away from quite a well-thought-out system to one that has now brought into doubt whether not only current Ministers and Governments, but others too, could influence these areas in future.

Bernard Jenkin Portrait Mr Jenkin
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I think that the hon. Gentleman will find that when he served as a Minister, civil servants received performance-related pay and quite substantial salaries. Indeed, larger salaries were probably offered to public officials than the current Government are offering. I am therefore not quite sure what his complaint is. Does he now recognise that the Government have conceded the principle of what he is arguing in the wording of their motion, in that in future the salary will be agreed between whoever holds my office of Chair of the Select Committee on Public Administration and whoever is Prime Minister

“in advance of the recruitment process”

starting, so there will be stability in the salary at the outset of the recruitment process? I am therefore not quite sure what the hon. Gentleman is arguing with the Government about now.

Lord Beamish Portrait Mr Jones
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The hon. Gentleman has not won a great victory here, because he has no powers of determination now in respect of the existing salary, unless he is going to be able to go back and negotiate—be the shop steward—on behalf of the ombudsman each year to increase her salary. A mechanism would be better.

What is the difference between this instance and the cases of other individuals—such as the MOD example that has been given—in terms of the pay restraint policy that the Government are introducing? Another problem is where to start in terms of the salary band. As the motion says, the individual would get an increase, but that will be forgone at the moment.

Bernard Jenkin Portrait Mr Jenkin
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Is the hon. Gentleman seriously suggesting that we should have come back to the House of Commons, with the new ombudsman having negotiated and agreed her salary at the current level, demanding that the House of Commons vote for a higher salary than she has agreed? In these straitened times I think that the British public would have found that difficult to understand. Starting from now, we have come up with a much better solution to sort this out for the future without embroiling the new ombudsman in a silly controversy that would have distracted from the seriousness of her office.

Lord Beamish Portrait Mr Jones
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The hon. Gentleman cannot have it both ways. He cannot say that he is objecting to the arrangement and that he has obtained some kind of victory for the future when he has not. I am sorry to say that what was wrong was the fact that the Government intervened by imposing an arbitrary cap and then saying to the ombudsman, “Sit down and negotiate your pay.” He has obtained something for the future but it is not going to affect the starting salary or the situation now. He is asking whether it would have been wrong for his Committee to have suggested something, but it could have proposed a mechanism that would have possibly increased a larger salary. If it is okay for Bernard Gray at the MOD to be paid £250,000 a year plus bonuses, why are the Government not having consistency across the board? This is a very important job, as it involves independence from the Government and from Parliament, and it is wrong for the Government to be interfering.

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Peter Bottomley Portrait Sir Peter Bottomley (Worthing West) (Con)
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The hon. Member for North Durham (Mr Jones) has spoken in a way that has interested the House. If I say that he has managed to say in 23 minutes what he might have said in three, I hope he will take that as a compliment.

The essential point of the second motion is that the pay of the parliamentary ombudsman should be set in advance. There is a lack of clarity about whether that will be done before the appointment is advertised. Today, if the motion goes through, I shall be voting for the first time in 36 years for something that I think is seriously wrong. It is wrong to advertise a post and then negotiate with the person who is chosen and reduce the pay after the appointment has been offered. That is wrong. One can understand why the Government might have done it, but that does not make it right. Controlling spending is necessary, but to do it after an appointment has been offered is wrong.

I could say that many more times, but the fact is that this decision is one thing the House has done that is equivalent to what happened when Elizabeth Filkin was chosen to be the Parliamentary Commissioner for Standards. Her number of days was reduced, her pay was reduced, her appointment should have been renewed because in those days it was not a non-renewable appointment, and in her last week this House agreed to pay her the £30,000 she had been underpaid during her years of service. If I may make a remark about a former holder of the office of Chair, when the former Speaker said in her memoirs that she did not approve of the commissioner or of some action, I thought that was wrong as well.

Bernard Jenkin Portrait Mr Jenkin
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I feel compelled to intervene on my hon. Friend because I do not think it is accurate to say that the Government cut the salary after the post had been advertised. They notified the House of Commons that they did not wish to pay as much as the existing salary and the recruitment panel was left in the invidious position of wondering how to advertise the post. The strong advice we received was that we should advertise a fixed salary, but the Government would not allow us to do so. We advertised based on the existing salary, but that was qualified and the candidates were informed during the recruitment process that it was subject to alteration. It was not a satisfactory process, however, so the spirit of what my hon. Friend is saying is absolutely right.

Peter Bottomley Portrait Sir Peter Bottomley
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I am grateful to my hon. Friend and I congratulate him and the Government business managers on finding a motion that could get through the House. The essential point remains however—I think I am right in saying this—that the salary negotiation took place after the person had been chosen, and that is wrong. Although I was not part of the process, I understand that the candidates were strong and that almost any of those who were well-qualified to be chosen could probably have decided to take the job at no pay if it had been advertised at no pay because it is an important position of public service to the people of this country and, indirectly, to improve the government of the country. The essential point is that we should never again start negotiating with someone who has been offered a job in competition by saying, “At what level will you do it?”

My hon. Friend the Member for Harwich and North Essex (Mr Jenkin) referred to the UK Statistics Authority, whose report was published today. The report rightly says that its aims, with the Office for National Statistics, are respect—I do not think that aim has been met in this case—and working together to make a difference, which is true. Another of its aims is being proud of what has been done and always trying to do it better. In terms of trying to do things better I am not sure that, without a framework, it is correct for the Prime Minister and the Chairman of the Public Accounts Committee to decide rates of pay. We need to have a framework and then we can say, “This is what it would appear to be—it should be up or down on that.”

I ought to have started by saying that I approve of the selection of Dame Julie Mellor and that I would have approved of the selection of any of those on the shortlist because I agree with my hon. Friend the Member for Harwich and North Essex that any of those who got to the shortlist could have been appointed with honour and distinction. However, let me make a less important point. Motion 9, which is being taken with the lead motion, refers to the rate of pay which is

“subject to (a) any relevant increase for Permanent Secretaries recommended by the Senior Salaries Review Body and (b) after the end of the current pay freeze, 1 per cent. annual uprating in lieu of performance pay”,

and it goes on to things we have discussed already. I do not think those conditions are right. We ought to say that the rate of pay for someone holding that office should not change at all, as with Members of Parliament between general elections. We ought to say that, although there might be some inflation or even deflation, the rate of pay for someone holding a position that goes from appointment to a point at the end of service, or, as for us, from one general election to another, should remain the same. I do not think that 1% in lieu of performance pay dignifies the office, is necessary or makes sense, but that is not to be amended.

Bernard Jenkin Portrait Mr Jenkin
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I share my hon. Friend’s concern about this but the problem is the legislation, which allows the salary to be determined only in relation to that of a permanent secretary. That is why I invited my hon. Friend the Minister to give an assurance that we will, at the earliest opportunity I hope, update the legislation.

Peter Bottomley Portrait Sir Peter Bottomley
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I shall conclude my remarks by joining in the praise for Ann Abraham and the way she has fulfilled the job, and I look forward with anticipation to Dame Julie Mellor’s doing the same.

I do not think anyone in the House thinks it was the Minister’s idea to get us to this position, although he might have helped us out of a difficulty. I hope that he will say to ministerial colleagues that it would be better to get my hon. Friend the Member for Harwich and North Essex, as Chairman of the Public Administration Committee, and others together to create a framework so that we avoid any possibility of dropping ourselves into such a mess again. I leave aside the fact that Dame Julie Mellor is female and that the House has a record of saying to people, “We’re going to change the terms of the job and a woman will do it.” There are other times when I may be more explicit about such things, but there is an opportunity to say here, with approval for Dame Julie Mellor and disapproval for the way we got ourselves into this fix, that we expect the Government to take on their responsibility and, with others, find a way of resolving it for the future.

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Nick Hurd Portrait Mr Hurd
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That leads me on to my next remark. The Government have reviewed the way the process was conducted and have been quick to accept the Public Administration Committee’s recommendation that for future appointments to the role, the remuneration arrangements should be agreed between the Prime Minister and the Chairman of that Committee before the start of the recruitment process. This commitment is reflected clearly in the Government’s motion.

My hon. Friend has raised the possibility of using any legislation coming out of the Government’s recently published open public services White Paper to enshrine these new arrangements in statute. As he knows, the Government’s proposals in relation to the ombudsmen set out in that White Paper are at an exploratory stage, and it is too early to know what may be required in terms of legislative reform, but the crucial point is that the Government are committed to these new arrangements going forward and that commitment is clear from the terms of the motion. Subject to the outcome of that debate, should a suitable legislative opportunity arise in the future, the Government will give serious consideration to enshrining the new appointment and remuneration arrangements in statute.

Bernard Jenkin Portrait Mr Jenkin
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rose

Nick Hurd Portrait Mr Hurd
- Hansard - - - Excerpts

I am grateful to hon. Members for their contributions to the debate about this important role. I commend the motions to the House.

Public Bodies Bill [Lords]

Bernard Jenkin Excerpts
Tuesday 12th July 2011

(13 years, 2 months ago)

Commons Chamber
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Bernard Jenkin Portrait Mr Bernard Jenkin (Harwich and North Essex) (Con)
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I am most grateful for the opportunity to speak at this stage in the debate.

The Bill is significant by any standards and represents the Government’s plans to implement their reform of public bodies as a result of the review they carried out in the second half of last year. The Select Committee on Public Administration, which I chair, inquired into the review at the time and published a report last January. Somewhat to my surprise, the report was more controversial than I had anticipated, but I emphasise that it was unanimously agreed by all members of the Committee of all political parties.

We expressed concerns at the time about the way the review was conducted, and we have heard some of them in the Chamber this afternoon. We found that the tests determining whether a public body should be retained or reformed were poorly designed and not applied consistently, and that Ministers had failed to consult adequately about them. The Government have suggested that they intend to hold triennial reviews of non-departmental public bodies and I urge them to reconsider the tests to see how they can be reviewed.

The tests in the Bill are different from the tests applied in the review. I invite the Minister to explain why that is so. As the Minister for the Cabinet Office and Paymaster General pointed out earlier, there are effectively four tests in the review: the first is existential; the second is whether the body concerned carries out a highly technical activity; the third is whether it is required to be impartial; and the fourth is whether it needs to act independently to establish facts. That is a good stab at the tests required, but funnily enough those are not the tests in the Bill. Clause 8, entitled “Purpose and conditions”, gives four tests: “efficiency”; “effectiveness”, which is a very broad term and is not defined; “economy”, which we presume means value for money; and

“securing appropriate accountability to Ministers”.

Again, I do not know what “appropriate accountability” is, and these are very subjective tests to have in legislation.

Clause 8(2) suggests that any reform of a non-departmental public body should

“not remove any necessary protection”,

whatever that means, and should not

“prevent any person from continuing to exercise any right or freedom”,

which is quite specific and probably an important protection. In our report, we suggested in paragraph 23:

“There should be a single set of tests that covers: whether a function needs to be performed”—

the existential test—

“whether it is appropriate for it to be performed independently by a public body”,

which is surely the impartiality test,

“and how it can be delivered most cost-effectively (value for money).”

I hope that that recommendation might be better reflected in the Bill. Perhaps the Parliamentary Secretary, Cabinet Office, the hon. Member for Ruislip, Northwood and Pinner (Mr Hurd), could address that later.

The Committee also considered the Government’s claim that abolishing bodies and transferring their functions back to Departments would improve accountability, and I submit that the Government are applying a rather narrow test of what constitutes accountability. Of course, Ministers want to retain influence over decisions for which they are ultimately accountable, but our conclusion was that to focus exclusively on that traditional form of ministerial accountability ignores other ways in which bodies are held to account. In particular, we are all aware of how stakeholder groups and civil society play an important role in providing challenge and criticism to public bodies from day to day so long as they have a clearly identifiable focus for that challenge. I do not wish to denigrate civil servants in any way, but a civil servant in a Department is a far more anonymous entity than a named public body. The Committee proposed that converting public bodies into executive agencies could ensure that Ministers remained responsible for clearly identifiable bodies within their departmental responsibilities without losing that public focus.

We also considered a number of other topics that we felt were important to make the reforms a success, including how Departments sponsor their public bodies and how the transition should be managed. The Government’s response was somewhat critical of parts of our analysis, particularly the comments on cost savings, and I was glad to hear ministerial clarification earlier this year of how cost savings will be made. To the Government’s credit, they accepted a number of our recommendations, including the conversion of some public bodies into executive agencies.

This is a controversial Bill, because we do not have an Armed Forces Minister or a Justice Minister at the Dispatch Box to answer all these problems. It is that shortcoming in the Bill that led the other place to make substantial amendments to it. It is much improved and much more acceptable and I shall certainly support it, but we could make improvements to ensure that these controversial changes to bodies that were, after all, brought into being through primary legislation are not simply ticked off by Ministers with a stroke of the pen.

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Nick Hurd Portrait Mr Hurd
- Hansard - - - Excerpts

It is obviously the responsibility of the Government to consider all the costs, but the right hon. Gentleman is ignoring the role of the Lord Chief Justice. I come back to the point that the Government recognise, as we all do, the need for reform; the question is how those reforms can be delivered in the most cost-effective way. That is the debate that will roll through Committee and beyond. Clearly, feelings run high on the issue in this House and the other place.

Bernard Jenkin Portrait Mr Jenkin
- Hansard - -

My hon. Friend is making an emollient and helpful speech, but the real question is not how these issues will be dealt with during the passage of the Bill, but how they will be properly debated and adjudicated on by Parliament after the Bill is on the statute book. Will he give the House a general undertaking that these contentious issues concerning bodies that were established by primary legislation will be the subject of proper and reasonable consultation and debate when the orders come before Parliament, and that there will be an opportunity for Parliament to exercise the influence it would have exercised had we been confronted with primary legislation?

Nick Hurd Portrait Mr Hurd
- Hansard - - - Excerpts

My hon. Friend’s question goes to the heart of the debate about how the Bill is structured. He understands that if this enabling Bill is enacted, it will be the responsibility of Ministers to come to this place with orders, having consulted where that remains appropriate, and make their case, with appropriate safeguards in terms of scrutiny and the capacity of the House to require the enhanced affirmative procedure. There was no serious discussion of this during the debate, but, with reference to the safeguarding procedures, I think we are in a much better place than when we started and when his Committee examined the Bill.