Higher Education (Freedom of Speech) Bill (Eleventh sitting)
Debate between John McDonnell and John Hayes(3 years, 2 months ago)
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John McDonnell (Hayes and Harlington) (Lab)
New clause 8 is a simple request to the Minister to issue some form of guidance about the relevant route for appeals before the legislation comes into force. I think it is quite significant. We are introducing a complex system of complaints and processes, as well as the potential for civil action. It is not much to ask that we get absolute clarity, so that those who will implement the legislation or be the victims of it know how the complaints system will work. I would welcome a commitment from the Minister that we could take to the Floor of the House to reassure people.
With regard to the issue about the rush to sanction, my only comment is that we are dealing with a pretty contentious area, where an element of mediation might resolve most of the problems. Previous progressive equalities legislation that some people have initially opposed has not involved heavy sanctions. In the main, the results have been resolution and progress through a process of education, engagement, mediation and resolution. I think the rush towards sanction will undermine the ability to mediate.
Sir John Hayes (South Holland and The Deepings) (Con)
I apologise, Sir Christopher, for not being here at the outset. I always take the opportunity to declare my interests in the Register of Members’ Financial Interested. I am interested particularly in the University of Bolton.
Mediation would be an option available to the director. When the director receives a complaint or identifies a problem, I have no doubt that he will have at his disposal a range of mechanisms for dealing with it. This is not an either/or; it will depend on the severity of the problem, and sanctions will occur only where the matter is not dealt with satisfactorily. I do not think it is an either/or.
John McDonnell
It would be helpful if we got on the record from the Minister the process that the Government envisage the director undertaking. I agree with the right hon. Gentleman that it is not an either/or, but let us make that explicit on the face of the Bill. If we can get a statement from the Minister to that effect, I will be happy.
I use the example of a parking ticket, but even with a speeding fine—I admit nothing—there is the offer of going on a course to address speeding behaviour. We are not even building that into the Bill. I would welcome the Minister making a statement that she expects the director to undertake that process of engagement, mediation and warning before arriving at a sanction, which could be counterproductive to that process of engagement.
Higher Education (Freedom of Speech) Bill (Seventh sitting)
Debate between John McDonnell and John Hayes(3 years, 2 months ago)
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John McDonnell (Hayes and Harlington) (Lab)
I congratulate the Minister, although, having sat in the shadow Cabinet, I am not completely sure that she will enjoy sitting in the full Cabinet. The right hon. Member for South Holland and The Deepings said that he did not want to put words in the Minister’s mouth and then went on to put words in my mouth. I want to be absolutely clear, on every occasion, that I think the Bill is an unwarranted intervention. It is completely unnecessary and on the edge of being crackers. However, we will try to make the best of a bad job.
I understand where the right hon. Gentleman is coming from: there has to be a line of accountability. It should be public, open and transparent, and doing the reports is one way. However, my problem is that it is heavy on regulation. I thought that there was a rule in the Government: one regulation in, one regulation out. I look forward to hearing which regulation is coming out to accommodate this going in.
I have worked in local government, both elected and as a civil servant. We know what will happen to this requirement if it is on a quarterly basis. It will either be a simple checklist and that is it—almost meaningless—or it will become a burden that some institutions will fail to fulfil effectively. Therefore, I think it is best left to the annual reports undertaken by the universities and colleges, rather than quarterly reports.
Sir John Hayes
I take careful note of the point made about regulating bureaucracy. However, the risk of not doing it this way is that the new office and, in particular, the individual will become more intrusive. The mission of that office and individual will be to ensure that the Act, as it will then be, is being implemented, and no doubt that inquiries, questions, complaints and all kinds of things will be made to that office. Contrary to his suggestion, I believe that my amendment would simplify the system, in a curious kind of way. It may well leave universities in a rather better place than they would otherwise be.
John McDonnell
The problem is that it will either simplify it to the extent that it becomes meaningless—just a tick-box exercise—or it will become a voluminous burden placed on colleges, when some do not have the resources to respond in that way. I offer this suggestion in the spirit of compromise: it would be best left to the Office for Students, along with the new director, which is already charged with the overview of the operation of the legislation. It would be best for them to consult with the relevant authorities and the colleges themselves, and in due course come back with an appropriate procedure. I would not want to fetter their discretion with an amendment like this at this stage.
Sir John Hayes
I will, but shall I answer that intervention first. I do not want to build up a catalogue of interventions; I will not know which one to deal with in which order.
The hon. Member for Warwick and Leamington is right; creating some structure around that role is important. I suppose that, in part, is what the amendment does: try to create more certainty. There is a balance between the proactive and the reactive. There is the balance between what is expected of universities, and what they feed into the process, and what is fed to them from the centre. This is a complex matter, because it is new territory for universities and for Government. It will be important to create more understanding of the role, as he suggests. I give way to the right hon. Member for Hayes and Harlington.
John McDonnell
I think we are getting there. The spirit of the matter that the right hon. Gentleman is laying before us is right. However, for some of us, there is anxiety about quarterly reports and their onerous nature; they will become like Soviet tractor production records if we are not careful. That is why amendment 79, tabled by me and my hon. Friend the Member for Warwick and Leamington, refers to an annual report. In that way it becomes manageable. That is all we are suggesting; we agree with the spirit of the right hon. Gentleman’s suggestion.
Sir John Hayes
I had always assumed that the right hon. Gentleman was fonder of five-year plans than me.
John McDonnell
We need to have a discussion about the different tendencies of socialism, because actually Stalin—no, we had better not go there.
Sir John Hayes
I tell you what: I will make the right hon. Gentleman an offer. I think we should have lunch or dinner.
John McDonnell
That is my point. In legislation such as this, it is important to ensure that we identify the unintended consequences. That is what the amendments are all about. As I said, the best way of overcoming them is through maximum involvement and engagement with all those who are implicated in or affected by the Bill’s provisions.
We had a commemoration for Blair Peach only 18 months ago. I was with his widow. We had another commemoration, only a couple of months ago, because, as happens in some of our local communities, someone had stolen the plaque—but, never mind, it came back eventually. That reminded me of how, on contentious issues like this, where there is a distinction to be made between what someone says or does that is clearly illegal and what someone says or does that is just unacceptable—and dangerous in certain communities—there must be some mechanism by which judgment is made by the authorities involved. One of the best ways of informing that decision is through consultation, engagement, and, for me, a bit of democratic decision making too. That is all that the amendments do.
Sir John Hayes
The right hon. Gentleman is making a case about events. Public events, of course, include speakers, meetings, and so on. I presume that he is not extending that to the area of academic enquiry. There could not be such a debate about a research project or a piece of academic work, because, on that basis, he would be trying to democratise scientific thinking. I assume that he is speaking about one particular aspect of the Bill.
John McDonnell
That is a good point. I am trying to look pragmatically at what is happening on the ground, what would happen in practice, and the problems that could cause. This is almost certainly uniquely about specific events that will take place. They are the ones that are the most difficult, where we can see that protests can get out of hand if we do not accommodate for them.
Protests can also be provoked if we do not allow voices to be heard in some part of the process of decision making. It is a valid point to make. I am trying to look practically at how this legislation will roll out. The last thing we want is to be returning in a few years’ time with some form of event on our hands that provoked that scale of anger and protest because people did not have the right to have their say or participate in the decision making process.
Higher Education (Freedom of Speech) Bill (Fifth sitting)
Debate between John McDonnell and John Hayes(3 years, 2 months ago)
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Sir John Hayes (South Holland and The Deepings) (Con)
I am sympathetic to the hon. Gentleman’s view, and I entirely endorse the view articulated by the right hon. Member for Hayes and Harlington about how legislation is improved through scrutiny, and how these Committees can work at their best. When I was on the Front Bench doing the Minister’s job, I always adopted that approach with shadow Ministers and others. [Interruption.] I shall ignore the sedentary comment, although I will give way if it was not a sedentary comment.
John McDonnell
I simply said that the right hon. Gentleman always spoke with literary skill as well.
Sir John Hayes
I am grateful to the right hon. Gentleman. Like him, I certainly never compromised on what I believe.
On the point that was made—I invite the hon. Gentleman to acknowledge this—these things, generally speaking, are dealt with in guidance, as the Minister said, for the very reason that once the Bill becomes an Act, as we hope it will, and it beds down, we will need to refine precisely how universities interpret it, and the guidance will reflect that continuing work. I therefore think we have got a win in the Minister saying that she would expect the guidance to include that, and we should take that win and move on.
Sir John Hayes
I am coming to that. The hon. Gentleman anticipates my next contribution—which will be brief, I hasten to add. I think that the point he makes with amendment 31 is also good. He is right that where universities deliver what they do is not a simple matter, not just because of the changes in technology and the way in which they operate, but in other respects as well. There are many premises, many different kinds of operators and many people involved in the university community. That has become increasingly true over time, and again I think the hon. Gentleman makes an extremely reasonable and valid point. I have been inspired by the right hon. Member for Hayes and Harlington to embrace the spirit of collaboration and helpfulness, and I hope that the Minister will do so, too.
John McDonnell
I would not want the right hon. Gentleman to go too far, because I still think that it is a rubbish Bill. I want to address the issue of occupied premises; the online point has been made well by Members across the Committee.
The issue of the occupation of premises is important in a number of areas where the university is not sited in the constituency but uses, often temporarily, premises around the area. Without the amendment, the Bill will have a potential loophole that could be exploited. My hon. Friend the Member for Warwick and Leamington made a valid point about that.
On the online issue, if we do not build it in early, we will really miss a trick. The scale of online abuse that most of us receive is enormous—perhaps I receive more than others; I do not know—and if we do not venture into that territory and secure it, we will not be seen to be actually operating in the real world as it now is. Most of the universities that I have been dealing with recently are only now going back to any form of physical participation; virtually everything up until now has been online. They have also encouraged students to maintain some form of student life as well, such that where physical meetings cannot take place, student societies go online, using Zoom, Teams and so on. The Bill could make explicit reference to that. Failing that, I would welcome the Minister’s views on any alternative solution, but we need to be convinced that the issue is being addressed.
Higher Education (Freedom of Speech) Bill (Sixth sitting)
Debate between John McDonnell and John Hayes(3 years, 2 months ago)
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John McDonnell (Hayes and Harlington) (Lab)
I really do think that the hon. Member for Congleton has a point. The issue is how we define that point. I hope that it applies retrospectively as well, because I would not mind challenging some of my essay marks from about 50 years ago.
The point is that the only way that a large number of students can finance their PhD research is by doing separate tutoring at the university, and therefore they have an academic status. Somehow we must find a form of wording for this Bill that protects them. At the moment, it is too loose. Colleagues have tabled other amendments—actually, I have tabled amendment 45, which focuses on innovative research. I am fearful that someone who, like me, is a pain could challenge their mark for a particular essay purely and simply because they disagree with what is being taught, even if they are wrong.
One of the biggest contentious issues at the moment is climate change. There are rows going on while academics are trying to identify a whole range of the causes of climate change as well as some solutions to it, and it is incredibly contentious. Lecturers and professors do have a responsibility to point out where they think something is wrong or ludicrous, and mark it down on that basis.
Sir John Hayes
The right hon. Gentleman makes an extremely important point. It is easy to mistakenly see this through the prism of political ideas. However, it is actually not just about political ideas, but about all kinds of challenges to orthodoxy. Some of those challenges will be scientific, some will be technological and some will be about philosophical principles, which are not to do with the politics we enjoy here. The right hon. Gentleman is right: innovation is a much bigger subject than political debate.
John McDonnell
There are even elements in science itself where there are really contentious issues and we know that some scientific theories are being brought forward for political motives—we have seen that around race in the past, about genetics linked to racial groups and so on—but an academic would throw the whole essay out on that basis. There are some really contentious issues here.
The hon. Member for Congleton is right to point out the issue of non-inclusion of students, but we must find a definition that enables us to ensure that there is a level of academic expertise at which the student should be operating, which qualifies that person to have academic freedom and the right to free speech. I think that is very difficult.
To come on to the point made by my hon. Friend the Member for Brighton, Kemptown, in academia, people are now extremely litigious. They will challenge individual gradings or the award of the degree classification. What we often find now—ask any university—is that a large amount of money and time is being spent on defending the awarding of degrees due to this sense of being a consumer, of buying a product. It is as though they are challenging the quality of the degree awarded as though it were a washing machine. There is a real issue here.
Sir John Hayes
To whom should I give way first? I am terribly old fashioned, so I shall give way to the hon. Lady.
Sir John Hayes
I draw the attention of the Committee and others to my entry in the Register of Members’ Interests, which cites my professional connection to the University of Bolton, where I am a professor.
John McDonnell
I register my interest as an honorary fellow of Birkbeck College, and my wife is a tutor at University College London.
Budget Resolutions
Debate between John McDonnell and John Hayes(4 years, 8 months ago)
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John McDonnell
To give the Government their due, the Chancellor did announce a £150 million contribution to the IMF, so there is an element of financial involvement and engagement. However, it requires the co-ordination of policy to ensure that those resources are directed effectively and successfully to tackle the very issue that my right hon. Friend raised. I hope that will be a model for the future when other global issues have to be confronted. As in the past—and this has happened under various Governments and political leaders—the UK should now be playing a critical role in mobilising the international bodies we have, in particular the UN, to agree a global response to deal not just with the current wave of this pandemic, but with the possibility of subsequent waves.
Sir John Hayes (South Holland and The Deepings) (Con)
The right hon. Gentleman is right about the need for collaboration, and he is also right about needing alacrity and the response to a dynamic set of circumstances requiring leadership. Can the Commonwealth play an active role here? He talked about an international body, and it is of course a body in which we play a pivotal part, and that would very much be in tune with what he has proposed.
John McDonnell
I fully concur with the right hon. Gentleman. The various international vehicles that we could mobilise are available to us, and we just need to do it now. It needs to be done at a senior level, in a way that sends out a message of determination across the globe to people and families, but also to the markets. We need to ensure that this medical crisis does not create the long-term recession that some are predicting as a result of its global implications. I will now move on from the coronavirus.
In addition to the coronavirus, we face other emergencies, and we must not lose sight of the two other crises that we face. One is the crisis in our public services—it is a social emergency—with the levels of poverty and inequality in our society. The other is of course the existential threat of climate change. I have to say that yesterday’s Budget failed to address the social emergency. We have discussed it on the Floor of this House before, but this social emergency sees 4.5 million of our children living in poverty, with 70% of those children living in households where an adult is in work. We have—I do not know how else to describe it—a crisis of in-work poverty that perhaps we have not seen for generations in this country.
I have to say that there was nothing in the Budget to relieve the hardships inflicted on our community by universal credit, the bedroom tax and, especially for disabled people, the brutality of the work capability assessments undertaken against them. In fact, the Government’s own table accompanying the Budget shows that the bottom 10% fare the worst as a result of tax decisions made in this Budget and the last spending round, which cannot be right. It cannot be right. It states that the bulk of the benefits are flowing to higher paid households. Yesterday some people were saying that this could have been a Labour Budget, but whoever said that was not looking hard enough at who wins and who loses in it. I believe that not one family will be lifted out of in-work poverty because of yesterday’s announcements. Yesterday we again heard the Government’s aspiration to get the national living wage to two thirds of median earnings, but that is not a real living wage; it is an aspiration for four or five years’ time. Some may also have seen the small print, which says, “if economic conditions allow”.
Worryingly, there is nothing of any substance in the Budget to tackle the long-term crises in our public services. Let us take the justice system, for example. In prisons there has been
“a sharp rise in deaths, violence, self-harm”
and suicides, which can all be
“linked to cuts”.
That is not my statement; it comes from the Institute for Government. The House of Commons Justice Committee has pointed to a £1.2 billion gap in justice funding, so the small sums in this Budget, such as £175 million for prison maintenance, just will not cut it. Not one prison officer will be safer on the landings because of this Budget, yet in some of our prisons, those people put their lives at risk on a daily basis.
On domestic violence, according to Women’s Aid, 10 domestic abuse victims are turned away from women’s refuges every day because of a lack of space. This Budget needed to commit £173 million to ensure that no survivor is turned away. It has not done that, and without that funding, the measures in the Domestic Abuse Bill simply cannot be delivered. Not one women’s refuge can feel assured that it will get the funding it needs from this Budget.
The National Education Union said that class sizes are rising, subjects are being dropped, and inadequate pay is making the education staffing crisis worse, but there will be few teachers from whom the pressure will be lifted as a result of this Budget.
On housing, the sums earmarked for rough sleeping are totally inadequate, and we know that at least £1 billion is needed to reverse cuts in homelessness services. Yesterday, the Chancellor said that he would end homelessness, but we heard that from the Prime Minister who, when he was Mayor of London, said that rough sleeping would be ended in London by the 2012 Olympics. Rough sleeping doubled during the Prime Minister’s second term as Mayor.
It goes on: not one library will be reopened as a result of yesterday’s Budget. Not one youth centre will reopen; not one Sure Start centre.
Reports into Investigatory Powers
Debate between John McDonnell and John Hayes(9 years, 5 months ago)
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John McDonnell (Hayes and Harlington) (Lab)
I am chair of the cross-party National Union of Journalists parliamentary group, and for the last two years, with Government co-operation, we have gone through the highways and byways of each piece of legislation—ranging from the Police and Criminal Evidence Act 1984 to RIPA to DRIPA, then on to the Counter-Terrorism and Security Act 2015—to see how we can best protect journalists and their sources. I thank the Government for their co-operation throughout. We have had detailed consideration of the codes of practice to each piece of legislation, and with our lawyers meeting on a regular basis, and with the Society of Editors, we have tried to move the debate forward.
On the protection of journalists, I say to the hon. Member for Gloucester (Richard Graham) that an issue of confidence was raised in this House by all parties. As he may recall, that stemmed from the introduction of PACE procedures, whereby there was an understanding in Government that journalists and in particular, their sources, should be protected as an inherent part of protecting our democracy. Under PACE, there was a protection whereby, if there was an application for seeking information, a journalist would be notified. They would have their day in court and be able to represent themselves, and there would be a right of appeal. That process was generally accepted by all, except some authorities.
Many of us were shocked 18 months ago when we received reports that to avoid the use of PACE, a number of authorities—the police, the intelligence services, and even local councils—had used RIPA to avoid the due process of applying, judicial overview and the right of appeal. The scale of the use of RIPA by individual authorities was immense, and I think it shocked us all when that was exposed. Local councils were using it to spy on their own staff or even people who were making applications for local schools, and so on. There was shock on both sides of the House and a feeling that that was inappropriate use of the legislation.
We then went through discussions about DRIPA. Through the NUJ and the Society of Editors, we met the Government and applied our minds to getting some protections within the codes of practice, and eventually, under the Counter-Terrorism and Security Bill. Throughout the continuing theme was the same as in today’s debate—that there was a need to rationalise the legislation, so that not only was it effective and understandable, but that it had protections in place for those with privileged or confidential information.
Anderson has been welcomed by the NUJ and others, because it goes some way towards doing that. The NUJ’s position was straightforward: it wanted an independent judicial process. In addition, it wanted automatic and mandatory prior notification of requests for accessing information, and it wanted mechanisms to challenge an application with the right of appeal. Anderson goes some way towards doing the first, and in recommendations 67 to 69, he makes special consideration with regard to journalists. He clearly states that the designated person
“should be obliged either to refuse the request”—
when it comes to identifying a journalist’s information or confidential source, and then automatically—
“refer the matter to ISIC for a Judicial Commissioner to decide”.
The NUJ welcomes that process, but I speak briefly to make a couple of appeals on the matter. Anderson recommends that there is a code of practice or ISIC guidance that specifies:
“the rare circumstances in which it may be acceptable to seek communications data for such a purpose, and…the circumstances in which such requests should be referred to ISIC.”
I say to the Minister that it would be really helpful, if the Government are going down the route of further guidance, to start the consultation process now. Again, the NUJ would welcome access to officials to commence those discussions in advance of the publication of any such guidance.
The Minister for Security (Mr John Hayes)
Given the brevity that I will no doubt be obliged to adopt at the end of this debate, I am more that happy to meet the hon. Gentleman to discuss the specific point that he is making.
John McDonnell
I am grateful to the Minister; I thought that would be his response.
May I ask that, this time round, any draft guidance is published in advance of the primary legislation, so that we are fully conversant with the implications of the primary legislation in detail when we discuss it? We were not capable of doing that in the past because of the rush of emergency legislation, but it would be helpful.
One issue that is not addressed effectively by Anderson is prior notification. I accept that there are circumstances in which prior notification becomes difficult, some of which have been mentioned today. However, there needs to be wider discussion of this issue and it must not just be dismissed in the way that it was in the report. There also needs to be further discussion about the right of appeal in respect of any decisions by the judicial commissioners in addition to those that are set out in the Anderson report. I would welcome further consultation on those elements.
I will make one final point because I know that I must be brief and that others wish to speak. Anderson does, to give him his due, stress the importance of the protection of journalists and their sources, and quotes Liberty on the issue. We must remember that those are the journalists that we sometimes do not hold in great affection. They are the journalists who exposed the MPs expenses scandal and who expose corruption. They do so on the basis of information that is brought to them by sources that need to be protected. The word “chilling” was used earlier. We said in the debates about the movement from PACE to RIPA that any undermining of the protection of sources would have a chilling effect and they would not come forward, thereby undermining the democratic accountability of administrations at all levels.
I am grateful that David Anderson quotes Liberty and bases his proposals on its principles, which state that a
“free press and the right to free speech is dependent on respect for private correspondence”.
If we establish those principles in the legislation that is brought forward, it will lay the basis for firm legislation. That will also inform the debate that we eventually have on the Pitchford inquiry into surveillance more generally.
Infrastructure Bill [Lords]
Debate between John McDonnell and John Hayes(9 years, 10 months ago)
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John McDonnell (Hayes and Harlington) (Lab)
Will the Minister clarify the difference between staff transferring under TUPE and under his proposal in amendment 115?
Mr Hayes
I am coming to that. In shorthand, let me assure the hon. Gentleman that I do not want staff to be disadvantaged in any way, as I said. We will honour TUPE principles in this transfer of staff.
Amendment 115 makes it clear that when existing Highways Agency staff transfer to the new company, their employment terms and conditions will not change. I recognise that the changes that are planned for the Highways Agency will cause anxiety for existing staff. The amendment confirms that the existing rights and liabilities of staff will not change following transfer to the new organisation.
Mr Hayes
I will make a little progress and then let the hon. Gentleman come back.
The Bill provides that a transferring employee can terminate their contract if there is a substantial detrimental change to it if they transfer. That reflects regulation 4(9) of TUPE. Government amendment 116 supplements that by providing that where the employee claims constructive dismissal in those circumstances, no damages are payable in respect of any unpaid wages that relate to a notice period he or she has not worked. I should stress that the amendment does not prevent employees from claiming for damages for constructive dismissal, but seeks to establish a common-sense position that damages cannot be claimed for a period of required notice that has not been worked. I should highlight that the amendment ensures that the provisions in the Bill properly reflect TUPE in that regard.
Mr Hayes
The hon. Gentleman, with the courtesy he personifies, raised that with me before we came to the House today. I have committed to take another look at that through the parliamentary draftsman. There is no intention to disadvantage staff in that regard. I give that absolute assurance, but I will double-check the language, because language in such things matters. He and I are in discussion and I have committed to write to him as soon as possible, and certainly before the matter is discussed further, to clarify the use of the language to which he has drawn the House’s attention.
John McDonnell
Will the Minister clarify why he has used a formulation unused in any other legislation in the past? I have set out the various options in three amendments showing what the Government have used in past legislation to assure staff that they are transferring either under TUPE or under the Cabinet Office statement of practice, the TUPE-like agreement that the Cabinet Office agreed with the trade unions involved. Why are we not using the past formulations?
Mr Hayes
Originality and imagination are part of my style. I said style is as important as substance. The substance is in the Bill; the style is all my own. The important thing is that, having met staff representatives on 13 January, I am fully aware that there are other aspects they want me to look at. I fully recognise the concerns they raised. Some of those issues need to be considered further, and I have asked my officials to pursue those matters urgently. In the spirit that I have described, I will not allow staff to be disadvantaged by any changes. The House has my absolute assurance on that. Government amendments 115 and 116 reaffirm our commitment that existing Highways Agency staff terms and conditions should be protected, as I have described.
New clause 18 places a responsibility on the Government to report periodically to Parliament on the performance of Highways England. I have introduced this to reassure some who fear that Ministers will lose control of Highways England, and that they will have no accountability to Parliament if Highways England fails to deliver. It is absolutely right that the new body can get on and deliver the strategy that the Government devise, establish and agree, but let me be clear that should the implementation and delivery of the strategy require further involvement, direction or adjustment by Ministers, in concert with the House, the ability to make those changes must be established in the Bill. I am absolutely clear that Highways England must report to the House, and that Members on both sides of the House must have the chance to scrutinise its work. Ministers must have a role, indeed play a key role, in the delivery of the strategy.
It might be true to say that the greatest challenge we face is getting the delivery right. We have surmounted an important hurdle in developing a strategy founded on empiricism and backed with funding for the long term—more than £15 billion up to 2021—but it will happen only if we have in place the right resources, skills and partnerships, and the right range of other organisations, to make it happen. It would be inappropriate if Ministers and all hon. Members were not involved in that process. I expect directions to emanate from the Department for Transport periodically—it is not meant to be an exceptional power. I expect reports to be made to the House periodically. That, too, should not be a matter of exception. That was raised at length by the shadow Minister. The strong governance arrangements and framework we have put in place provide some of the measures he sought when he argued the case for greater accountability.
The use of directions in the licence will allow the Government to exert control over how the company exercises its statutory functions. In addition, as sole shareholder the Secretary of State can ensure that the company is properly led and governed. More detail is in the summary document published in December, but I will write again on some of those matters following today’s consideration.
Opposition Front Benchers and all Members of the House will be familiar with the new copy of the licence, which strengthens those provisions, and which was provided to hon. Members on 22 January and placed in the Library of the House. Let me say again that if there are problems with performance, I expect Ministers to make use of those directions; I expect Parliament to see the Highways monitor’s report on the impact; and I expect Ministers to ensure that Parliament is informed of how issues have been resolved.
It is obvious from the amendments that were tabled that I need to explain why we need to change the status of the Highways Agency and create an arm’s length body, and I am happy to repeat an argument I made earlier. Let me start with the point of view that some suggest—they suggest that we should do nothing more than implement a road investment strategy without changing the structure necessary to deliver it. Of course, the Highways Agency would make every effort to do so efficiently, and of course we would have some success in delivering that strategy, but we need to understand that if we are to deliver the strategy, we need to make significant changes to the existing arrangements.
The relationship between the agency and the Government has on occasions failed to reflect the wider interests of the economy and the long-term interests of taxpayers and road users. The measure is about providing a clearer, more strategic role for the Government, and providing a stronger, more certain framework, through the licence and the road investment strategy and the framework document, for the organisation mission to deliver those important infrastructural changes to our nation. By the way, those changes are not just about economic well-being; they are also about societal and communal well-being.
The industry is keen to see change both in the way funding is committed and in the way the Highways Agency is constructed. In the call for evidence for the Bill, the Civil Engineering Contractors Association said:
“Even with an apparently committed five year programme, not transforming the Highways Agency into an arms-length body could still leave it a target, should future Governments decide cuts to spending…The supply chain…has confidence that the creation of a Government-owned company would significantly reduce the likelihood of this happening.”
The CBI said that business welcomes the Government’s important decision to reform the Highways Agency to a more independent body, giving it greater funding certainty through fixed five to six-year funding cycles.
The road investment strategy provides a logical and credible commitment between two separate parties—the focus of the company is on delivering its operational objectives, and the focus of the Government is on providing a long-term funding stream. I know that some fear we will lose control of the reins of the company. That is why I have gone as far as I have in the framework document, the licence and the Bill. We will also of course have the monitor—the new body that will oversee the operation of the new arrangements. That is all in line with the conclusions of the Public Administration Committee’s recent report on the relationship between Government and arm’s length bodies, which said:
“Relationships should be high trust and low cost, but too often are low trust and high cost.”
On that basis, I resist amendments 5 to 42 which would remove the relevant clauses or reinsert the words “Highways Agency”.
Infrastructure Bill [Lords]
Debate between John McDonnell and John Hayes(9 years, 11 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
John McDonnell (Hayes and Harlington) (Lab)
I agree with every word that the right hon. Member for Hazel Grove (Sir Andrew Stunell) has just said. His speech follows on from the constructive work that he did when he was in the Department for Communities and Local Government.
Having learned that we are burning fossil fuels and bringing about climate change on such a scale that it could destroy our planet, I find it almost insane that we should be bringing forward proposals that would mean our relying on another form of fossil fuel. I totally oppose the development of fracking in this country.
I shall concentrate on part 1, which deals with the Highways Agency and the road network. Sometimes I feel like shaking people in this building. There seems to be a loss of collective memory. Part 1 is the first stage towards the privatisation of our road network and it is on the same scale as the privatisations of rail, water and energy under the previous Conservative Government. I have the same dystopian vision of what will happen: once a GoCo has been set up, it will be broken up into regional franchises and sold off, almost inevitably to foreign-owned companies, most of them state run, exactly as 80% of the rail industry has been sold off. The story of the energy and water industries has been similar. There will then be the introduction of tolls, exactly as laid out in the Government’s response to the Transport Committee, and the tolls will fund exorbitant profiteering by those companies.
The House needs to wake up and recognise that the Bill represents the privatisation of our roads. We should be honest with the electorate and warn people that that is the consequence of the Bill. Why am I saying that? It is evidenced by what has gone on throughout this Government and previously. There is a loss of collective memory of what happened when the Conservatives were last in government. Throughout the 1992 to 1997 Administration, there were proposals to build on the privatisation of rail, water and energy by also privatising roads. In 1992 the Government published “Paying for Better Motorways”, in which they said that they would establish a single Government-owned company funded by road levies—that is, tolls—and possibly break it down into a number of privatised regional franchises, as has happened with rail and water. That was the Conservatives’ plan when they were last in power; now it is being implemented under a coalition Government. I hope some of the coalition partners wake up to the consequences of the Bill.
What other evidence is there? The plan is evidenced by the appointments that the Government have made to the Highways Agency. They brought in Tom Smith. Who is Tom Smith? He has just been put on the Highways Agency board. He is the chief executive officer of the M6 toll road. The Government brought in Elaine Holt. What was she? She was headhunted by the Department for Transport to lead on the east coast railway line—first in public sector management, but then to prepare it for privatisation.
All the evidence is there of the Government preparing for the privatisation of our roads. We saw it with the A14. The more recent proposals for the improvement of the A14 included tolling on that road, but there was such public uproar that even the Government had to pull back. We saw the evidence in the Government’s response to the Transport Committee. Paragraph 79 states:
“The Government will consider tolling as a means of funding new road capacity on the strategic road network. New road capacity would include entirely new roads and existing roads where they are transformed by an improvement scheme”
—that is, the investment programme announced last week. The strategy, as far as I can see, is to invest as much public money as possible to bring the roads up to a certain standard in the current period so that they can be privatised under the new agency that will then be broken up into regional franchises.
I note that clause 1 refers not to “a highways company” but to “highways companies”, to enable the Secretary of State to amend the legislation, under the Henry VIII clause later in the Bill, to enable regional franchises to be set up. I warn all the travelling public—motorists, cyclists, pedestrians and others—that our road network is about to be sold off, they will soon be fleeced by tolls and the tolls will subsidise the private profits of foreign companies. If anything provides evidence of that, it is the example of what happened to rail, energy and water when the Conservative party was last in government.
Having said all that, I wish to raise a number of issues on which I would like a response during the debate. I am concerned about the 3,500 staff, who, until now, have been commended for their hard work, commitment and professionalism. What will happen to them? TUPE is not provided for in the Bill. We have argued for it time and again, and in the past four and a half years TUPE has been put into only one Bill. All we have been given, yet again, are assurances that the staff will be covered by COSOP, the Cabinet Office statement of practice on staff transfers in the public sector—the protocol agreement similar to TUPE, but not as enforceable. I reiterate that to give the 3,500 staff greater security we should insert a TUPE commitment in the Bill.
There are arguments to be made about the financial savings and the claim that they will be £2.4 billion. I note the debate over whether VAT is to be charged. First, the Treasury denied that the VAT would be saved and therefore the cost could be, over six years, some £2.4 billion—almost the savings the Government are seeking to find. Then, in the other place, we were told that there was a guarantee that VAT would not be charged. I think that is open to legal challenge. We need greater certainty, otherwise this whole operation will be jeopardised from the beginning.
We also need more details about the monitoring exercise, as we have a monitoring body that is not a regulator, no complaints procedure, and no information about the costings or the investment in the operation of the body. One of the worst aspects of privatisations in the past has been the way that remuneration at the top has gone through the roof while wages elsewhere in the organisations have not risen. We are told that remuneration will somehow be controlled through a central review. I do not think such constraints have worked elsewhere when these agencies have been set up—quite the reverse. I would like to see a ratio put in place between the highest paid and those who are on average earnings in the organisation. In that way we may be able to control the overall levels of remuneration in the future.
I am also concerned about clause 17, the Henry VIII clause, which puts such wide-ranging powers into the hands of the Secretary of State. We have now been assured that, through clause 46, the affirmative procedure will apply in respect of any changes in the legislation to be undertaken by the Secretary of State, but I am not convinced that that procedure gives those democratic protections of accountability to this House. I urge that the super-affirmative procedure be looked at.
Mr Hayes
I am reluctant to interrupt the hon. Gentleman but I want to make it perfectly clear that the Government and this Minister—I am the roads Minister, after all—have no intention of privatising our roads; have no intention of not having clear lines of accountability to both Government and this House for the work of the new agency; will set the priorities; will set the strategy; and will hold those responsible for delivering it accountable. I do not want to spoil the party, but I am afraid that he is fantasising.
John McDonnell
The Minister has not spoiled the party because I have no confidence or trust that this Government will not privatise. Assurances have been given on the Floor of the House about privatisation before and it has gone ahead. This Bill is the first step towards privatisation and towards introducing tolling on our roads—a new form of funding the road network that will be open to profiteering by foreign companies. I warn this House that if it passes this legislation, it will put at risk our road network in the future, our taxpayers and the future environmental policies that might be able to protect us against climate change.