Parliamentary Buildings (Restoration and Renewal) Bill

Christian Matheson Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 19th June 2019 Commons Chamber

[Sir Edward Leigh]

I do apologise. I am glad that I raised this matter, however, because that has reassured me that we will constantly have control over who we send on to this body. I think I can end there. I hope the Minister will reassure me that even if he cannot accept new clause 1—I accept that that is often the default position of Ministers—he will be able to argue that the Comptroller and Auditor General really can drill down into all these contracts, because that will be absolutely vital.

[Christian Matheson (City of Chester) (Lab)]

I rise to speak to the amendments standing in my name on the Order Paper, and with your permission, Mr Deputy Speaker, I would also like to talk briefly about some of the other amendments. Before I do that, I thank the Minister for the way in which he has conducted himself during this process. I accept that this has not necessarily been a party political process, but he has sought to engage with me and colleagues on my side of the House at every stage of the process. We have not always agreed, but he has always been there to consult, and I am most grateful for the way in which he has conducted himself.

I want to speak briefly to amendment 5, to which the hon. Member for East Worthing and Shoreham (Tim Loughton) spoke so admirably that it has the support of my hon. Friend the Member for Walsall South (Valerie Vaz), the shadow Leader of the House. I also want to speak to amendments 8 and 9, tabled by the right hon. Member for Derbyshire Dales (Sir Patrick McLoughlin), to which the right hon. Member for Gainsborough (Sir Edward Leigh) has just referred.

We believe that these amendments are self-explanatory and straightforward. As the hon. Member for East Worthing and Shoreham mentioned, this is a world heritage site, and the intrinsic value and history of the site must be in our minds throughout the lengthy process. We therefore believe that amendments 8 and 9 are common sense, and I will certainly be supporting them.

Moving on to new clause 1, I commend my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier)—I am unsure whether my right hon. Friend the Member for Alyn and Deeside (Mark Tami) said this while moving the amendment, but I believe that she is currently chairing the Public Accounts Committee and is therefore unable to be in the Chamber—for her work. In basic terms, the new clause aims to ensure that this multibillion-pound taxpayer-funded project gets the most effective scrutiny possible. The hope is to highlight to the public that the utmost efforts have been made to ensure that the strongest possible audit of the project’s value for money has been carried out. Given the value of the contracts involved—we have heard suggestions of a total project spend of between £5 billion and £10 billion—it is particularly important that we set up the necessary scrutiny.

The new clause would ensure that effective access arrangements were in place to allow the Comptroller and Auditor General to scrutinise the relevant information held by contractors, subcontractors and grant recipients of the bodies. To date, there has been no clear commitment that the CAG will be granted value for money access. The current uncertainty could be overcome through the provision in the Bill of a suitable right of access for the CAG, which would be helpful and not at all detrimental

New clause 1 is not prescriptive in defining what the CAG would do, because that would undermine his independence; it simply ensures that appropriate scrutiny is recognised in statute. By writing the new clause into primary legislation, companies would know that the eyes of the CAG were on them and that all their work would be available. That level of audit is vital to ensure true value for money and to keep a lid on overspending.

Amendment 7, which is in my name, relates to the provision of the education centre. Again, the Minister has shown an interest in that particular area. The amendment focuses on securing the future and developing the capacity of our fantastic education centre in the renewed Palace. The Minister made some important points in Committee about allowing a degree of flexibility within the Bill to prevent prescriptive legislation from hindering the creation of future innovative facilities. Indeed, as he stated, facilities that

“we might have considered sensible 30 years ago may not necessarily be the other facilities that we consider sensible today.”––[Official Report, Parliamentary Buildings (Restoration and Renewal) Public Bill Committee, 4 June 2019; c. 27.]

The same logic could be applied to the creation of future facilities, so the amendment is intentionally open, allowing for future ideas to develop with the renewed Palace.

However, there is no question but that the creation of an education centre must be unambiguously defined within the Bill. Let us not forget that the current education centre is a temporary building that will no doubt be removed during the restoration works. The education team does a brilliant job of engaging young people in Parliament and politics, and that success must continue on the renewed parliamentary estate. It is therefore crucial that a concrete commitment is made to guarantee the refurbishment of our vital education services. The education centre cannot be an optional extra. It plays a vital role in helping schoolchildren to develop a political understanding and in engaging the politicians and public servants of the future.

Indeed, as we have already heard, the intrinsic value of the Palace of Westminster stems from the history that has been made within its walls. The educational opportunities of experiencing the history created in this place at first hand are invaluable, so education facilities must take centre stage in the planning of the restoration works. We have been presented with a unique opportunity to enhance the education centre and to allow for wider engagement, particularly with younger audiences.

I am sure that Members throughout the House will agree that awareness of and political engagement with Parliament is a vital part of encouraging people to become politically active and politically engaged. The education centre should be part of the legacy of this programme of restoration and renewal, to encourage greater awareness and involvement in Parliament. Such engagement with parliamentary politics is more important now than ever.

The restoration and renewal process is a project of national significance, and it would be a mistake to overlook the opportunity to create an innovative new education or learning centre at the heart of Parliament. While the cost of renewal will be high, the benefits will be great. We could create a newly refurbished education centre with accessible, modern resources for those wishing to visit the building and engage with the work of both Houses.

Amendment 7 would secure the creation of an education centre while allowing flexibility within the Bill, which the Minister called for in Committee, for the creation of future unforeseen facilities. Such flexibility would keep the door open to new ideas and changing technologies leading to new demands on facilities. Again, I thank the Minister for his positive engagement in this area.

I pay tribute to my hon. Friend the Member for Hackney South and Shoreditch for her work on amendment 6 and to the hon. Member for Airdrie and Shotts (Neil Gray) for his work on amendment 4. Both amendments cover the important area of spreading work around the United Kingdom, and I moved a similar amendment in Committee.

--- Later in debate ---

[Dr David Drew (Stroud) (Lab/Co-op)]

I am pleased to have signed amendment 6, the key part of which is the annual audit of companies. My experience, from a distance, was that Wembley started as an important national stadium—admittedly for England—but the endgame was that many of the companies involved did not have any local accountability. I am afraid that the Football Association lost control of the project, so it is important that this place has an annual audit to know who is building the project, what they are doing and whether they are doing it properly.

[Christian Matheson]

As a trade union official during the construction of Wembley, I have mixed memories of the conduct of that project, but my hon. Friend makes a fair point. Amendment 6 is not onerous, and it would allow for an audit that gave us the opportunity to keep a handle on where the work was going and how much of it was being spread around—no more, no less, but at least it would give us an opportunity to see what was happening.

[Mr Mark Prisk (Hertford and Stortford) (Con)]

The point I was trying to make in Committee was simply that, yes, this is a substantial investment—many billions—but, equally, if we get this right, it is a huge investment in trades and crafts right across the country. My only problem with the audit notion is that it is post decision making. If we are to make sure that there is a reasonable sharing of the procurement process, the policy needs to be set before the contracts are issued, not afterwards.

[Christian Matheson]

The hon. Gentleman is right that this could be a bonus for the whole nation. That is covered by amendment 4, but if the Sponsor Body, the Delivery Authority and the main contractors know they will be audited and under scrutiny, I hope that will help to focus and concentrate their minds on where they give the contracts.

[Sir Edward Leigh]

This is an important point. Of course we must not tell the Comptroller and Auditor General what to do, but in recent years we have tried with the National Audit Office not just to do this post hoc, as we did in the past when, years after the event, we would look at some scandal or waste of public money. The Comptroller and Auditor General now tries to look at these contracts as they come on stream. He started to do that with the Olympics and, although we cannot tell him what to do, I hope we can encourage him to look at this as it goes through.

[Christian Matheson]

As a distinguished former Chair of the Public Accounts Committee, the right hon. Gentleman is able to give the House that guidance, for which I thank him.

[John Redwood]

The project will also reveal part of our industrial history. When the building was first constructed, it drew on crafts and skills from across the country, and some of the companies involved might still be around in one form or another and be able to bid again. It was a national endeavour, not a London endeavour.

[Christian Matheson]

I thank the right hon. Gentleman for pointing that out; he is right. Perhaps the successor companies of some of those original suppliers will be able to bid—what a lovely connection that would be.

Some of the work for this project can clearly only be done in London. Obviously we are not going to move the Palace lock, stock and barrel to another part of the country, so the work has to be done in London. But efforts must be made, where possible, to include a diverse geographical range of companies. It is an opportunity to change old habits and step outside the old London-centric focus in which projects in our capital city are so frequently dominated by large London businesses—the point made by my hon. Friend the Member for Stroud (Dr Drew).

[Chris Bryant]

I hate to correct my hon. Friend, but I am going to anyway. Quite a lot of the work will not be done here. The parts of the clock are currently not in London but elsewhere in the country, and the cast-iron roofs have all been made elsewhere in the country. There is a real opportunity to build old trades, which perhaps we have not used for a very long time, all across the country. There could be benefits for every part of the country.

[Christian Matheson]

If I am going to be corrected, I would choose always to be corrected by my hon. Friend. The point I am making is that whatever is made elsewhere in the United Kingdom will eventually have to be installed here in London, but he is absolutely right, and the amendments show that we hope to encourage such opportunities. Indeed, my right hon. Friend the Member for Alyn and Deeside pointed out in Committee that in practical terms that would require the widespread promotion and advertisement of contracts across the country. Market engagement and involvement must begin early and reach as widely as possible to include geographically diverse companies. I re-emphasise that the amendments are deliberately open and do not prescribe which companies should be considered; they would simply ensure that contracts were measured and monitored with consideration of the geographical context and the value context.

Furthermore, amendments 4 and 6 focus on the size of businesses bidding for contracts. This project provides us with the opportunity to upskill and invest in small and medium-sized enterprises as well as larger businesses. We must ensure that we support our thriving and exceptional small business sector, which regularly still feels cut out of large Government contracts. Efforts must be made to integrate small specialist companies and prevent big companies from winning contracts and subcontracting to companies that they already know and work with, rather than opening things up more widely.

Without placing those promises and that scrutiny in primary legislation, there is no guarantee that the Sponsor Body will not disregard any lack of geographical diversity. I see no harm in placing such a guarantee in the Bill. I hope that all Members recognise that it is a practical, common-sense amendment.

[Mark Tami]

rose—

[Christian Matheson]

I give way to my next-door neighbour from Alyn and Deeside.

[Mark Tami]

Before my hon. Friend moves on from procurement, the other point, particularly for smaller companies, is that the actual cost must be kept to a minimum. If it costs about £10,000 to enter the process, small companies will not risk that sum of money, because it means a lot to them, whereas it means nothing to big companies.

[Christian Matheson]

My right hon. Friend from the other side of Boundary Lane in Chester is absolutely right. We have to encourage small and medium-sized enterprises not simply by telling them that it would be good to bid for the contracts, but by making it as easy as possible for them, and by identifying and removing the barriers.

Finally, amendment 1, which stands in my name, is about corporate social responsibility and blacklisting. I remind the House of my entry in the Register of Members’ Financial Interests—I am a proud member of Unite the union and the GMB, and I have received support from both in the past. However, I remind the House that I have tabled the amendment on my own initiative and with the support of hon. Members, not at the behest of any trade union, because we believe that it is the right thing to do.

In Committee I tabled an amendment that might be considered stronger than amendment 1. That previous amendment called for the Delivery Authority to proscribe from the bidding process any firm that had been involved in blacklisting and had not subsequently signed a recognition agreement with a UK-registered trade union. The amendment was narrowly defeated. Nevertheless, I did welcome at the time the Minister’s strong condemnation of blacklisting as a practice, and the support of other hon. Members in Committee. We can condemn, or we can take action. Aside from legislating to outlaw blacklisting, this project is the most direct influence we can have on making a stand against this terrible practice, because this House, along with their lordships’ House, is the ultimate client and can set the terms.

I remind the House that blacklisting is pernicious. It destroys lives, it is dangerous, and it is still going on. Skilled and qualified tradesmen are still refused starts, or are finished up on a job after just a couple of days, without explanation. If a workers’ name appears on a blacklist, it may well be because he or she has been a trade union representative or—more likely—because they have in the past complained about poor health and safety standards. Construction is a dangerous business. Site managers are under pressure to keep costs down, but that can lead to lower standards. Too often, the men or women who have been willing to stand up for their fellow workers and challenge lax health and safety regimes are the ones who have been marked down as troublemakers, when the truth is that in many respects they do their employers a service.

I remind the House of the scale of the problem. The Consulting Association is the most recent example of an organised blacklist—that we know of. In 2009, its offices were raided by the Information Commissioner’s Office, and it was found to be running an organised blacklisting operation, with 3,300 names. In the 2008-09 financial year, subscribers spent £87,749 on name checks. That means that, at £2.20 for each check, 39,886 names were checked. I emphasise that that was in just one year.

Amendment 1 gives the House another opportunity to make a statement and take a stand against blacklisting. I have listened to colleagues, and the amendment is less prescriptive than the one considered in Committee.

[Chris Elmore (Ogmore) (Lab)]

My hon. Friend mentioned both Houses leading the way; in 2013, the Welsh Government introduced a ban on the involvement of companies that blacklist and do not recognise trade unions in the public procurement process, such as the building of new schools and hospitals. That ban is already in place and it is working well. Because of those Welsh Government contracts, lots of organisations in Wales have cleaned up their act and now work constructively with trade unions and make sure that they have the most constructive processes, particularly in respect of health and safety.

[Christian Matheson]

I am most grateful to my hon. Friend for that illustration of how action of this kind can raise standards. When we raise standards in the construction sector, we save lives. It is a dangerous sector and whenever standards are allowed to fall, workers are regularly harmed, maimed and injured.

[Neil Gray]

I commend the shadow Minister for tabling the amendment; we will of course support him in his endeavours. He talks about taking a stand; of course, the House of Commons did not take a stand on the contract for the Elizabeth Tower and suffered immense reputational damage as a result. Does he agree that now is the opportunity to take a stand and ensure that that reputational damage does not continue?

[Christian Matheson]

We did take a reputational hit on that contract, unfortunately. The hon. Gentleman says that this is the opportunity; the fact is that there will not be many more opportunities, because we are the principal client on this programme so can set the terms.

The amendment is a lot simpler than the one tabled in Committee: it simply calls for the Delivery Authority to take account of a bidding firm’s policies on corporate social responsibility, including on blacklisting. It does not mention proscribing any transgressors from bidding and it does not mention trade union recognition agreements, but it does ask that CSR is considered. As I have just said, as the ultimate client for the programme, we would be doing the right thing if we put this requirement in the Bill. In doing so, we would send the message to the construction sector, and to workers in this dangerous industry, that we take the matter seriously and take their health seriously.

[Thangam Debbonaire (Bristol West) (Lab)]

My hon. Friend is making an excellent point. Does he agree that the changes made to the wording of the amendment since Committee give more scope to the authority to have regard to a company’s policy on corporate social responsibility other than in respect of blacklisting? Have I read that correctly? If so, perhaps my hon. Friend could give the House an example of where else that might be valuable for the promotion of the highest standards in contracts.

[Christian Matheson]

My hon. Friend is absolutely right, but what we have tried not to do is to be too prescriptive in what we tell the Delivery Authority to do. The Minister had expressed concerns about being too prescriptive in the past. As long as companies can demonstrate that they have a corporate social responsibility policy—they might want to bring various different factors into that—that would be a start.