Oral Answers to Questions
Jonathan Edwards Excerpts(10 years, 10 months ago)
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The Deputy Prime Minister
There are of course ongoing discussions. I was in Northern Ireland myself just a few weeks ago. As my hon. Friend may know, one of the main topics of discussion has been the proposal for the devolution of corporation tax to Northern Ireland because of Northern Ireland’s rather atypical economic position given its significant land border with the Republic of Ireland. We are giving very serious consideration to this. We will not make a final decision until after the referendum on Scottish independence next year.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Last night we were legislating on some of the recommendations of the Parliamentary Commission on Banking Standards, 13 days after it published its final report. It is eight months since Silk finished the first phase of his report. Why are the UK Government treating the people of Wales with such contempt, when all the polls indicate strong support for official powers for Wales?
The Deputy Prime Minister
Of course I acknowledge the fact that the success of the Silk commission is that it has mobilised such cross-party consensus and support in Wales. That is why, far from treating the recommendations with contempt, we are treating them with a great deal of seriousness. I accept that that is taking a little longer than the hon. Gentleman might want, but when we announce our response to the 33 recommendations I hope he will be pleasantly surprised at our forthcoming and forward-leaning approach.
Oral Answers to Questions
Jonathan Edwards Excerpts(10 years, 10 months ago)
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Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
1. What discussions he has had with National Grid on future electricity transmission projects in Wales.
The Parliamentary Under-Secretary of State for Wales (Stephen Crabb)
The Wales Office takes a close interest in National Grid’s electricity transmission projects in Wales, and I will meet National Grid later this month to discuss them in further detail.
Jonathan Edwards
Western Power Distribution is consulting on routes for electricity poles linking TAN 8 area G in north Carmarthenshire to the national grid in the south of the county. Local people feel strongly that any electric cables should be underground to preserve the beauty of the Tywi valley, and are concerned that the consultation period is far too short. Will the Minister impress upon the Department of Energy and Climate Change and National Grid that such transmission projects in open Welsh countryside should be underground, and at the very least that the WPD consultation should be extended into the autumn?
Stephen Crabb
These transmission projects are best dealt with case by case. The problem with a default position of saying they should always be underground is that it adds huge cost and complexity, making projects unaffordable. We want to keep the lights on in Wales, so we need infrastructure that is affordable, but I will certainly look into the specific point the hon. Gentleman raises about the consultation period with Western Power.
G8
Jonathan Edwards Excerpts(10 years, 10 months ago)
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The Prime Minister
I am grateful to my hon. Friend for his question. Clearly, the register of beneficial ownership will help with this issue, because companies will have to declare who owns them. That will be one way that tax authorities in developing countries, for example, will be able to ensure that bribes are not paid and so on. That is part of the point of the register.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The Prime Minister said that the tax evasion provisions in the G8 agreement would raise £1 billion per annum for the Exchequer. What about the other £29 billion that is lost each year illegally, according to Her Majesty’s Revenue and Customs?
The Prime Minister
If we look at all the things the Government have done, the Swiss deal raised billions of pounds and I have mentioned the Crown dependencies and overseas territories. The more countries that sign up to these multilateral exchanges and the automatic exchange of information, the more money we will be able to recover.
SMEs (Public Sector Procurement)
Jonathan Edwards Excerpts(10 years, 11 months ago)
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Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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Mr Iain McKenzie (Inverclyde) (Lab)
It is indeed a pleasure, Mr Hollobone, to serve under your chairmanship today.
I start by congratulating my hon. Friend the Member for Ogmore (Huw Irranca-Davies) on securing this very important debate. He spoke on this subject with passion, enthusiasm and knowledge. I could not agree more with what he said, to the point that I fear I may just repeat his speech with a Scottish accent. Without doubt, the importance of small and medium-sized enterprises across the UK cannot be overstated. SMEs are the backbone of the British economy and we need to ensure that both central Government and local government do everything they can to help them through the procurement tendering process to secure contracts.
SMEs employ more than 14 million people and have a combined turnover of £1,500 billion, which accounts for some 47% of private sector employment and about 34% of turnover. Importantly for a local economy, 83p of every £1 spent with a local business will go back into that local economy.
Those are just some of the statistics about SMEs. They are vital to the economic well-being of Britain and vital to employment opportunities. They are the driving force of our economy and they deserve their fair share of public sector procurement. Small businesses are struggling to survive in these challenging economic times, so it is essential that they have every opportunity to win Government contracts or to become part of the supply chain to local and national Government.
Public procurement spend is significant even in these challenging times. Public sector bodies, including central Government, the armed forces and the NHS, spend around £220 billion a year on goods and services—everything from stationery and office furniture to medical equipment and catering services. Despite that, however, public procurement is an underused tool when it comes to keeping trade local. Nearly three quarters of SMEs rarely or never bid for government work, and more than three quarters of SMEs believe that there are barriers to awareness of government opportunities. Many say that lengthy and complex pre-qualification questionnaires disadvantage smaller businesses. The playing field has been stacked against SMEs trying to win public sector contracts. To many SMEs, public procurement seems to have been deliberately designed so that they do not succeed.
More than half of SMEs feel that the process of tendering for Government contracts requires more time and resources than their business can allow for. Some 50% of SMEs find it significantly more difficult to deliver to Government agencies than to the private sector, mainly because of the additional formalities required by public sector clients. SMEs say over and over again that the bureaucracy needs to be simplified to help them bid for public sector contracts and especially low-value contracts.
The majority of SMEs are relatively unaware of where to look for opportunities, and they believe it is too time-consuming to try to find out about them. In addition, they do not bid, because they feel they are unable to compete with larger suppliers. One in five SMEs believes it is unsuccessful in a bid because it is unable to offer better value for money than other suppliers.
One member of the Federation of Small Businesses said:
“Local authorities are the bureaucratic mind at work, busily inventing disproportionately complicated procedures.”
Does that not sound familiar?
Could the Minister look at the following points—she will be glad to hear that the list is not overly lengthy—to improve SMEs’ prospects of securing Government contracts? First, could access to public contracts and pre-qualification questionnaires not be simplified? Secondly, could there not be education seminars on how to tender for contracts, especially through e-procurement? Thirdly, there could be much better access to information about public sector procurement opportunities for SMEs. More needs to be done to improve channels of information, so that small businesses know what contracts are up for tender.
Government buyers need to develop business associations with local SMEs and to set up standard contracts of terms and conditions before inviting companies to tender for released contracts. That will, of course, entail a separation of duties, in that those who source would not be those who evaluate tenders and place contracts. There also needs to be a focus on building an integrated supply chain, in which there are no weak links, and on applying green procurement to keep that supply chain as short and as local as possible.
Where possible, e-procurement should be used to enable SMEs quickly and economically to bid for contracts. The Government also need to target and improve contract monitoring for performance if business associations are to continue and to be justified. In addition, the Government must prove best value by having multiple bids that are evaluated against clear contract weighting.
What of the spend of local authorities? The procurement spend of many councils is significant, averaging £185 million for each local authority. Nationally, that is billions of pounds per year. On the basis of the rather limited figures available, however, less than 50% of that spend goes to SMEs. A significant proportion of councils do not record the size or location of the businesses they spend with, and that should be rectified.
Cost savings are overwhelmingly the biggest driver of procurement policy, outweighing other factors, such as the quality of goods and services, and economic development. That is understandable, given the constraints on local government, but it is, none the less, regrettable, because cost should not always be the most significant factor in awarding a contract, and savings can also be made through quality.
If you will allow me, Mr Hollobone, I will describe what has been taking shape in Scotland over the past couple of years. There has been a total redesigning of the procurement process, which has embraced private, cutting-edge procurement practices to bring about the maximum savings. I hope that will banish the days of off-the-shelf, catalogue procurement.
Some years ago, Scotland Excel was developed, bringing together the combined spend of the 32 local authorities in Scotland. More to the point, it updated and standardised procurement practices, which was necessary if local government was to deal with these challenging times and bring about the savings required in their spend. Many SMEs have been successful in gaining contracts through this collaborative buying consortium. Many other areas of the UK employ buying consortiums; they have had many successes, and they have many good practices they could and should share across the country.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
I apologise to the hon. Member for Ogmore (Huw Irranca-Davies) for being rather late for the debate. The hon. Member for Inverclyde (Mr McKenzie) is making an important point. About 75% of procurement in Scotland is sourced in Scotland, but only about 50% of procurement in Wales is sourced in Wales. What are the major lessons Wales could learn from Scotland?
Mr McKenzie
They are working jointly, and the McClelland report has been shared by both Administrations. As I said, it shone a light on procurement practices in local and national Government and updated them, bringing in many good, cutting-edge practices. It is recognised that if we devolve procurement to a local level, the supply chain can be improved and can be kept as short as possible. I should also mention the green procurement card, which is used across Europe to justify a local spend.
Can SMEs do anything to improve their situation? Yes, they can. They can prepare before bidding for contracts. They should know their strengths and highlight them in any bid. They can become aware of appropriate opportunities and select the right ones. They can engage with their clients, discussing their requirements if they are unsure about them.
SMEs can also use their clients’ chosen method to deal with those clients. If that is online, they should learn how to load to the bid portal and about what limitations the portal has in terms of the size of the tender document and the time it takes to load. SMEs should not miss a bid by running over the deadline because their data was slow to upload.
SMEs should also fully meet their clients’ needs and know what matters most in their hierarchy of weighting. Finally, they should combine expertise with innovation, and explain themselves clearly if any new practices or processes are involved on their side of the supply chain.
We should always remember that awarding to local SMEs has many rewards: it builds local businesses, with many becoming subcontractors to the initial contract winner; it creates local employment opportunities and secures employment locally; and moneys spent locally tend to circulate locally, supporting other businesses and jobs. To conclude, SMEs are important, and they will always be important to our economy.
The Parliamentary Secretary, Cabinet Office (Miss Chloe Smith)
I am grateful to the hon. Member for Ogmore (Huw Irranca-Davies) for initiating this debate on such an important subject and for setting us off so passionately. As has been echoing around the Chamber this afternoon, we share a passion for the same thing: seeing excellent procurement that serves the customer—in this case, the taxpayer—and promotes growth. I am confident that every Member here supports those aims and that my remarks will outline the action merited by that.
From the outset, the Government have fully recognised the vital role that SMEs play in helping us achieve the best possible value for money—in some cases for reasons of cost and in others for reasons of innovation, a theme that has also rightly reverberated around the Chamber—when we buy goods and services for the citizen, such as school, hospital or prison meals, wallpaper or any other goods or services.
In the minutes remaining, I will take the hon. Gentleman’s invitation to shatter some myths. Let us do that together this afternoon, because he is absolutely right in laying down his support for the theme and in his desire to see increased awareness of what is available for SMEs, of the ways in which they can grab it and of the ways in which we can hold procurers to account.
I will start by addressing the goal that, by the end of this Parliament, 25% of direct and indirect Government procurement by value should go to SMEs. Although I want to move on to some content that I know will be of great help to every Member when talking to their constituents, I first need to make an overtly political point. I am sad to say that we had to take the bold step of setting a 25% aspiration because before that, under the previous Government, no effort was made to measure such things. The lecture I have just received from the Opposition Front-Bench spokesman is more than a little rich in that context. Even a member of the previous Government has had the dignity to look ahead and say what we need to do better for SMEs, and I am afraid that I do not think the Opposition Front-Bench spokesman is hitting the same heights.
After a lot of hard work in 2010, we found out that SME procurement in 2009-10 amounted to 6.5% of all procurement, or £3.1 billion—a shamefully low figure given that 95% or more of private sector businesses in the UK are microfirms, or companies with fewer than 10 employees. We recognised that something had to be done to remove the barriers facing many companies when bidding for Government contracts, and we have gone a long way towards removing those barriers. I will work through a couple of points that will help Members to express that to their constituents, which is one important thing we can do to send the message outwards.
Over the past three years, we have increased accessibility and transparency, identified and addressed poor procurement practice and provided practical assistance to help SMEs. I will start with accessibility and transparency. We have made contracts smaller and broken them up under various headings. Some of the finest examples of that can be found in information and communications technology, where historically Governments have been subject to procurement disasters. We have instead deliberately gone out to approach SMEs for Government ICT needs and have had some good successes. We have also set up Contracts Finder to increase accessibility; it is a one-stop shop to enable suppliers to find procurement and subcontracting opportunities. They can also find tender documents and contracts online, all free of charge. I urge anyone listening to or reading this debate to look at that.
People will also find online and accessible pipelines of what the Government are looking to procure under a range of topics. All those kinds of thing help would-be suppliers to know what we are looking for. As I said in my opening remarks, we believe in procurement for growth, and we believe strongly that pipelines can help in that endeavour by explaining to industry what this very large customer, the Government, are looking for over time.
In the dynamic marketplace, companies can register without cost to provide quick quotes for low-value Government contracts below £100,000. That enables them to bid and compete at minimal cost alongside larger suppliers. I recognise the points made this afternoon about the cost of bidding. We are doing something about that. On the other side of the deal, what does that give customers—Departments and the taxpayers whom they represent? It gives us cost-effective access to pre-registered Government suppliers and allows bids to be issued and responded to electronically, which again makes the procurement process quicker and more effective.
On the theme of transparency, I also note that we have established a Crown representative for SMEs, which I know will be of great interest to the hon. Member for Islwyn (Chris Evans), who wanted to know where SMEs could turn for help. There is a Crown representative in Government especially for the purpose of giving SMEs a voice at the table. That is vital, and we have done it. We have also set up an SME panel to provide a regular forum for SMEs to raise the issues that concern them most and hold our feet to the fire. I assure the hon. Gentleman that the SMEs on that panel do so. I have been there, and I have enjoyed meeting the panel very much.
Moving on to tackling poor procurement practice, we have heard a couple of good examples in this debate, particularly from my hon. Friend the Member for High Peak (Andrew Bingham), who spoke about a wallpaper supplier in his constituency. I will start with that example. It is a great shame that he and his constituents felt the need for anonymity in that example. I understand entirely, but we would all like to live in a world where they did not receive bad service and did not feel the need to hide it for fear of reprisals.
We have introduced a mystery shopper service that will be familiar to anyone who has seen such a thing in supermarkets or reputable businesses throughout the private sector. It allows poor procurement service to be identified and acted on. If a supplier encounters poor procurement practice, such as the overly bureaucratic pre-qualification questionnaire in my hon. Friend’s example, or unreasonable selection criteria, as in other examples, they can refer it anonymously to the mystery shopper service, so that we can investigate it on their behalf.
I encourage and urge all constituency Members to push that information out to SMEs or anybody bidding in their constituency for Government work. It is the only way that one by one, piece by piece, we can tackle that kind of bad practice. It allows us to identify the broader themes that we can perhaps tackle more systematically, but it also allows us to put right individual cases where something has gone wrong.
Jonathan Edwards
Based on what the Minister is saying, does she consider the move towards centralising legal aid contracts an example of bad procurement?
Miss Smith
I suspect that I do not have time to do that topic justice and that you would not wish me to go there, Mr Hollobone. However, if the hon. Gentleman thinks that it is bad practice, he or anybody else ought to enter it into the mystery shopper and see what comes out the other end. We regularly publish the outcomes of mystery shopper investigations on the gov.uk website, and I am sure that the hon. Gentleman will find it easy to use.
By 31 May this year, we had received 425 mystery shopper cases. Of those that we have closed, a great majority have had a positive outcome. Once again, I encourage all Members to ensure that their constituents are aware of it.
Oral Answers to Questions
Jonathan Edwards Excerpts(10 years, 12 months ago)
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Mr Jones
The hon. Gentleman should also commend Welsh businesses, which are increasing the number of their employees, but certainly I am happy to commend initiatives by the Welsh Government. His point highlights the importance of the UK and Welsh Governments working closely together. That is something that we are prepared to do, and I expect to see reciprocation from the Welsh Government.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The UK Government-sponsored Silk commission recommended empowering the Welsh Government and Welsh local authorities with fiscal responsibility to incentivise economic development. Why were these recommendations not included in the Finance Bill or the Queen’s Speech in a Government of Wales Bill?
Commercial Lobbyists (Registration and Code of Conduct) Bill
Jonathan Edwards Excerpts(11 years, 3 months ago)
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Thomas Docherty
I am surprised that Ministers are reluctant to have a code of conduct, and I hope the Minister responding to this debate will set out why they are reluctant. The hon. Gentleman is right that it would be helpful to have a code of conduct. If it helps provide reassurance, perhaps I should give a guarantee that I would bring forward a draft code of conduct prior to any Committee stage of this Bill.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
I congratulate the hon. Gentleman on introducing this Bill. Does any other country have the kind of lobbying code of conduct that he wants to see implemented here?
Thomas Docherty
Is the hon. Gentleman asking about codes on a statutory, rather than a voluntary, footing?
Thomas Docherty
There is already a voluntary code for the Association of Professional Political Consultants and for the UK Public Affairs Council, and I understand that a number of countries around the world have codes of conduct. Perhaps it will be helpful if I write to the hon. Gentleman after this short debate, sending him a full list. He raises the valid point that this is not a ground-breaking revolutionary idea.
Oral Answers to Questions
Jonathan Edwards Excerpts(11 years, 3 months ago)
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Mr Jones
The Wales Office and the MOD are keenly aware of the importance of the defence industry to the economy of this country, and the hon. Lady is right to say that it makes a significant fiscal contribution. That is why I was extremely pleased to visit EDGE UK last year and see it making such a huge contribution to the economy in that part of Wales.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The MOD has disclosed that on safety grounds it has ruled out Devonport as a suitable relocation site for Trident following Scottish independence. Is the Secretary of State as surprised as I am that the First Minister is making a case for Milford Haven, when the MOD has not undertaken any safety assessment of the casualty rate in south-west Wales following a strategic attack or a Trident-related accident?
European Council
Jonathan Edwards Excerpts(11 years, 4 months ago)
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The Prime Minister
I am very happy to do that. My hon. Friend is right that we have allies in Europe. I note that in this morning’s German newspapers, the leader of the Social Democrats—Labour’s sister party—has accused me of having a Faustian pact with the German Chancellor, so there we have it. We have a very clear agenda: we have been pushing the single market, pushing for the patent court, pushing for the free trade deals, pushing for deregulation, and on every single one of those measures we have made some big progress this year in Europe.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
The Office for National Statistics reported last week that the GVA—gross value added—output in the communities I represent in west Wales and the valleys is only 65% of the UK average. A cut in European structural funding would therefore be disastrous for the communities I represent. Will the Prime Minister assure my constituents that the British Government will make up the shortfall in funding for them, based on the British Government’s negotiating position on the EU budget?
The Prime Minister
I will certainly look carefully at what the hon. Gentleman said before we return to the European budget issues in February. Frankly, however, if we want a good deal for Britain in terms of the level of payments we make, we have to accept the fact that in an enlarged European Union—and we support enlargement—we are going to see a greater percentage of those structural funds go to the relatively poorer countries of eastern and southern Europe. I think we have to understand that when we take part in the negotiations.
Oral Answers to Questions
Jonathan Edwards Excerpts(11 years, 5 months ago)
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Mr Jones
The First Minister’s position is a matter for him, but Paul Silk makes it clear that the commission recommended the devolution of income tax-varying powers within different bands, subject to agreement between the Welsh and the British Governments on issues such as funding. That matter must continue to be looked at.
Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
Does the Secretary of State agree that those who argue that Wales does not have the tax base to partially devolve income tax are fiscally illiterate?
Electoral Registration and Administration Bill
Jonathan Edwards Excerpts(11 years, 10 months ago)
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Jonathan Edwards (Carmarthen East and Dinefwr) (PC)
I shall speak briefly on this group of amendments, which we broadly support, on the role of the Electoral Commission. The Electoral Commission is, of course, strongly in favour of individual electoral registration as a means of fighting electoral fraud, and I commend it for taking that position. However, the commission’s role needs to be used as a safeguard to ensure that IER will work as intended—this should be prior to its introduction —and for continued monitoring afterwards.
Amendment 30 particularly interests me because of the proposal for registration objectives in the Bill. As hon. Members will know from my contributions to the Opposition day debate on this subject and on Second Reading, my primary concern is for the inclusion of as many eligible registrations as possible on the electoral roll. I am sure that that aim is shared by all hon. Members. The Electoral Commission’s most recent estimate was that about 6 million eligible adults were missing and that registers were between 85% and 87% complete. Therefore, these changes, which we can expect will further diminish the completeness of the electoral register, and which as we saw when IER was introduced in Northern Ireland, may well be counter-productive in terms of including people on the electoral register.
I would like to see a duty on the Electoral Commission and on individual electoral registration officers for their principal aim to be that registers are as complete as possible and that there is a presumption in favour of inclusion on the roll, rather than deletion. As we have discussed previously, there is the opportunity for electoral fraud, but the number of convictions for that offence has been small. That is not to say that there is not a problem, but I believe it is more important that we get people on to the electoral register and entitled to vote. That is especially the case now, given the equalisation of constituency electoral rolls being introduced for Westminster elections and the new proposals from the Secretary of State for Wales for boundary reforms for elections to the National Assembly for Wales. No change is not an option now in terms of the National Assembly for Wales; even if we retain the 40:20 split, there will be new, equal-sized constituencies for the 40 seats.
Parts 1 and 2 of the Bill should clearly not be brought into force until IER has been trialled, and until the Electoral Commission is convinced that any adverse impacts will be as limited as they can be and that the completeness of the register will not be affected.
The Parliamentary Secretary, Cabinet Office (Mr Mark Harper)
I should say at the beginning that I was slightly surprised that the hon. Member for Caerphilly (Mr David) said that the Opposition were in favour of individual registration, as I could have sworn that on Second Reading they not only tabled a reasoned amendment, but voted against the Second Reading of the Bill. That was strange; it is difficult to see how they are in support of it. If they had only voted for the reasoned amendment, I could have accepted it as a principle, but it seems to me that they are opposed to our fundamental position.
I wish to make one or two points that I hope are helpful to the Committee. The hon. Gentleman drew attention to the lengthy period of pre-legislative scrutiny we have had. Not only did we have that, but, as I think he has acknowledged, we made a number of significant changes to our approach as a result. All I say to the Committee is that I hope the progress of the Bill reflects that considerable pre-legislative scrutiny. It is probably also worth saying that, as the Committee may have noticed, we deliberately decided not to use knives in the programme motion for the first two days of debate in order to enable it to focus on points that hon. Members thought were important. I hope that the flexibility that that gives the Committee is used properly and that we make reasonable progress that focuses on where the Committee thinks the important issues are.
I pay tribute to my hon. Friends the Members for The Cotswolds (Geoffrey Clifton-Brown) and for Epping Forest (Mrs Laing) for the amendments that they have led on. They have participated very well in the experiment that the Procedure Committee has asked us to undertake. This Bill is an example of it, because all hon. Members tabling amendments were asked to include explanatory statements to enable hon. Members to understand better the nature of the amendments. I am pleased that they have done so, as it is very helpful to the House. It is just a shame that the official Opposition appear to have ignored the fact that we are conducting that experiment and have not taken that opportunity. I am sure that the Procedure Committee will draw the appropriate conclusion.
Mr David
That is an excellent point. The presumption among many people—indeed, dare I say it, among most people—is that once a person is on the electoral register, they are there not for one or two elections but permanently. Most people in this country will not have a clue about this profound change in the nature of the electoral registration system. We need only to consider the lack of press interest and coverage on the subject for months to see that. Given that the Bill was one of the key pieces of legislation in the Queen’s Speech, there has been virtually no press coverage of it, and it is from the press that most people get their information. There is indeed a potential problem here.
We will discuss financing in greater detail later, but when the responsibility is placed very much on the shoulders of local authorities and electoral registration officers, and the resources that are likely to be allocated will not be ring-fenced and will be pretty small anyhow, the concern is that local authorities will not have the capacity to make the superhuman effort needed to chase up those people who they manage to detect have not re-registered under the new system, even though they are entitled to be on the register. There is a host of interconnected problems before us and I thank Members for their interventions. In their different ways, they have highlighted the complexities and the potential problems that lie ahead. The way forward for postal vote carry-overs was clearly set out by the all-party Select Committee, and I very much hope the Government will have second thoughts.
Jonathan Edwards
I shall speak briefly to amendment 20, which would increase the length of time that those on the current electoral register remained on the revised register after the introduction of individual electoral registration. The current proposal from the UK Government is that existing registrations will be removed at the end of the second new canvass if people have not provided the required data for individual electoral registration. The effect will be that concerns about a cliff-edge drop in the completeness of the registers, as we saw when they dropped by 11% in Northern Ireland, will be postponed until after the 2015 Westminster general election. This means that the first elections to be held without the roll-on from the pre-IER electoral roll will be the National Assembly for Wales elections in May 2016.
Although I recognise that one election must, at some point, be the first election to be held wholly under IER, I am concerned that the elections to the National Assembly for Wales will be the guinea pig, particularly because if the proposals in the Green Paper on electoral arrangements for the National Assembly for Wales are implemented, the electoral roll arrangements will be used as the basis for determining constituencies. I shall give my opinion on that very interesting Green Paper on another occasion.
The change-over from the current system to IER is fraught with difficulties, and the length of time for the change-over should be as long as necessary to ensure that there are no adverse effects, and certainly should not be rushed. As I say, I am particularly concerned about the possible effects on the National Assembly elections in 2016, and I hope the Government will take this opportunity to push back the final date for the removal of all pre-IER registrations to ensure that the handover is as smooth as possible, without the cliff-edge drop in registration that we fear.
Lyn Brown
The hon. Gentleman is clearly as concerned about his area and the effect on voter registration as I am about mine. Does he think that his local authority will have the resources to deal effectively with the problems that will arise and to keep on the electoral register as many people as possible who are entitled to vote?
Jonathan Edwards
That is an interesting point. On the way down on the train this morning, I was reading a report on the experience in Northern Ireland. It said that it was difficult to envisage the changes being pushed through uniformly in a short period. A longer period of introduction would therefore be better for all concerned.
Nic Dakin
I am pleased to serve under your chairmanship, Ms Clark.
I shall speak briefly, mainly to underline the importance of getting the change right. Given that there is cross-party consensus on the introduction of individual voter registration, it ought to be possible to carry it out in a way that minimises and manages risk, avoiding the negative consequences that we can foresee. The debate has made it clear that one of the foreseeable consequences of getting it wrong is that fewer people will be on the register, although they are still eligible. The change must be managed to take account of people who are not sufficiently on the ball to get their registration in place.
I do not see what the rush is. It is better to implement the change carefully and with consideration and get it right than rush it and find the numbers on the register falling off a cliff edge, as my hon. Friend the Member for Carmarthen East and Dinefwr (Jonathan Edwards) said. If we get it wrong, the number of people participating in very significant future elections will drop substantially. Any significant drop would be a travesty of our democracy. We therefore need to work together to prevent such a drop.
Jonathan Edwards
I understand the hon. Gentleman’s point about stopping duplicate entrants on the electoral register. Has he given any thought to the impact of the amendment on the process of creating new constituencies with the same number of electors, in particular in constituencies such as Ceredigion, where there is a large student population?
Dan Rogerson
The amendment may well make a difference to the size of the electorate in places such as Ceredigion. It would also make a difference in Cornwall, which is being told that it must have five and a half seats, instead of the five that it used to have or the six that it currently enjoys. There will be a seat across the border between Cornwall and north-west Devon. The large number of second homes in north-west Devon and north Cornwall may have a bearing on the size of that constituency, so the hon. Gentleman makes a very good point.
As I said, this is a probing amendment, so I will draw my remarks to a close. I hope that the Government act on this issue, if not in this primary legislation, then in secondary legislation or the guidance for local authorities when they are designing the forms that people will fill in, to make people aware of its importance. Although it is more acute in areas such as mine than in other parts of the country, only through a joined-up approach can we get the information that is needed to resolve the situation. If the Government cannot respond positively today, I hope that they will indicate that they will look at it in the future.
Angela Smith
Before I move to the amendments, I want to reiterate the point made by my hon. Friend the Member for Caerphilly (Mr David), when he said that the Opposition support the principle of individual registration—it is important to keep repeating that—but that we think it can be improved. To some extent, then, our amendments seek to test the Minister’s thinking on information sharing.
Schedule 2 deals with information sharing and checking, and provides a clearing-house approach, so to speak, to verifying applications to join the register and to ascertaining the correct information for those who have not applied or those who are registered but not entitled to be so. The schedule provides for an important role, allowing the Secretary of State to establish the boundaries of the process for collecting, processing and disposing of data once used for the purposes for which it was released.
The schedule also makes it clear that criminal penalties will be levied for disclosing information in breach of regulations yet to be laid. Paragraph 93 of the explanatory notes makes it clear that the Secretary of State may require the Electoral Commission, the Information Commissioner and any other person he or she thinks appropriate to play a part in establishing the provision, and
“may also require the Commission to prepare a report on how data sharing arrangements have worked by a specified date.”
Furthermore, if a report is provided, it must be published by the Secretary of State concerned.
We consider that the right arrangement. We have laws relating to data sharing, which obviously is a sensitive issue, and those laws are rightly the law of the land. Nevertheless, we have some important questions. The Minister has committed in the legislation to funding the above provision. Will he commit to funding the provision properly, so that the work can be done efficiently and promptly? Will he share his thoughts about establishing the mechanism? Who will staff the new provision? Will it be another quango? Will it be another public body? If so, to whom would it be accountable? Who will oversee its work? And, importantly, will service-level standards be laid down in regulations? The last thing we want is for the right to register to be delayed unnecessarily because of backlogs or because data provided by applicants has not been verified by this new public body—if that is what it is.
Amendment 5, on data sharing, is slightly different: it is not about data sharing between one public body and another but about data sharing within a local authority. We want the Bill to oblige electoral registration officers, within local authorities, to use the data already available to him or her to verify as many applications as possible. We mostly know what those data are. The council tax database is one of the quickest and most effective means of verifying, in particular, the addresses of applicants. We also have council tenant lists and school rolls. All these databases, owned by every local authority in the land, can be used to help identify applicants.
There is no need, then, for the clearing-house mechanism in schedule 2 in relation to the data already held by a local authority. There is a clear distinction to make. A clearing-house mechanism is required, for example, when comparing Department for Work and Pensions data with the data supplied by applicants, but that is not the case within local authorities. That is an efficient use of public money. Many good electoral registration officers already follow this practice and make use of council tax databases to identify those who fail to register, but we need to strengthen that practice by obliging them to do it as a matter of routine.
Amendments 9 to 11 relate to clause 4 but have been grouped under schedule 2. We will come to clause 4 later in proceedings, but suffice it to say that the amendments relate to data sharing. A relatively superficial level of data could be shared by organisations such as universities, sheltered housing providers and private landlords.
Jonathan Edwards
Is there not a problem for sheltered accommodation, which has such a quick resident turnaround that the hon. Lady’s suggestion might prove difficult to implement?