Finances of the House of Commons

Kevin Brennan Excerpts

Thursday 21st November 2013 Commons Chamber

[Kevin Brennan (Cardiff West) (Lab)]

The hon. Gentleman rightly pays tribute to the staff of this House, and the report refers to our desire to be an “exemplary employer”. Will he confirm that no one working in this place is employed on a zero-hours contract and that staff receive at least the London living wage?

[John Thurso]

I can confirm both those points. Indeed, this was going to be my first substantive point. I suggest that I come right on to it and make my points; if the hon. Gentleman is not satisfied with them, he can intervene on me again.

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[John Thurso]

The sums are fully provided for, as the hon. Gentleman would expect. I cannot tell him off the top of my head exactly what they are, including all the elements; if I may, I will write to him. It is obviously several million pounds, but I do not know exactly how many several million, and I would not wish to give the House the wrong information.

When I was saying earlier that I once re-engineered two businesses, I thought, “I know exactly what I would say to that if I was sitting somewhere else in the House”, and the hon. Gentleman has not disappointed me. Of course we are not a business going bust, but in looking at costs, any organisation can look hard at what it is setting out to do and the way it is setting out to do it. We now use iPads and we have radically changed our hours, so how and when we do things have changed out of all recognition, in just a decade. It is therefore right that we look at these issues, and clearly there has to be change.

I turn to income generation, an issue that I anticipate the Chairman of the Administration Committee, my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst), will fill the House in on if he catches your eye, Mr Speaker. Parliament, in addition to being a working institution, is an iconic visitor attraction and world heritage site, so it is right that we develop ways of making it available to visitors. It is also right that we retrieve the costs of that. The principles, which I have set out before, are, first, that Parliament is a working institution and its work as Parliament takes primacy over all other activities. Secondly, all citizens have a right to access their MP on all aspects of the legislative process without let or hindrance or charge. Subject to those two overriding principles, however, the House has a duty to open to visitors as much as it can, and to recover the costs involved. The three relevant areas are: the development of more commercial tours; the development of retail activity; and the use of the banqueting facilities by outsiders.

[Kevin Brennan]

It is that last point that disturbs quite a few colleagues in the House. Point 26 of the financial plan talks about

“commercial hire on a limited number of occasions”

and

“on an experimental basis”.

We have managed to survive as a Parliament for several hundred years without having to hire ourselves out, in some cases to the very commercial interests that caused the austerity that has resulted in our cutting our budgets. It would be ironic, would it not, if the bankers were sipping champagne in the people’s Parliament because we needed to raise money as a result of the damage they had caused. I believe that that is a line we should not cross.

[John Thurso]

I completely respect the point that the hon. Gentleman is making, but there are huge amounts of time when we are in recess and not sitting here. Our dining rooms and banqueting rooms are very good facilities that match the best facilities offered by the livery halls and other venues. If we can operate during those times to make money that can be put towards restoration and renewal, for example, that is an absolutely legitimate thing to do.

[Kevin Brennan]

No, it is wrong in principle.

[John Thurso]

The hon. Gentleman and I will disagree about this. Last year an amendment was tabled on the subject, and it was duly defeated. I completely understand his point, and it is critical that the people who have access to this place are properly vetted, but if venues such as Buckingham Palace can open in this way, I see no reason why we cannot do so. We should also be able to recover the costs involved. Clearly we should not charge for room hire for Member-organised events while we are working here, but otherwise, I believe that this is the right thing to do. The House, with its customary caution in these matters, is doing it on the basis of a two-year trial, which is being overseen by the Administration Committee. At the end of that time, we will be able to see how it is going.

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[John Thurso]

I can confirm that there is no charge for events undertaken by Members, and there is a 25% discount on events for outsiders that are sponsored by a Member. There is no discount on events that are run purely by outsiders. That is my understanding, but I will happily confirm that to him.

[Kevin Brennan]

rose—

[Mr Jenkin]

rose—

[John Thurso]

I will give way to the hon. Member for Cardiff West (Kevin Brennan) and then I want to move on.

[Kevin Brennan]

I was endeavouring to organise an event, on behalf of an all-party group, and was told that there was a minimum charge of £750 for the Terrace marquee. Does that square with the point that the hon. Gentleman is making?

[John Thurso]

I really do not want to go further in making comments when I do not have fully accurate data in front of me. In my role as president of the Tourism Society of the United Kingdom, I am sponsoring an event next March, and it is on the same conditions as the event last March. There might be a cut-off for events that are already booked, which is why I might not have the full facts. I will, if I may, come back to the hon. Gentleman and make sure that everyone who is in the Chamber is fully aware of exactly what is happening.

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[Thomas Docherty (Dunfermline and West Fife) (Lab)]

It is a pleasure to follow the hon. Member for Caithness, Sutherland and Easter Ross (John Thurso) and to be called to speak in the same debate as the Chairman of the Administration Committee, the right hon. Member for Saffron Walden (Sir Alan Haselhurst), who is looking rather less bleary-eyed than I expected having no doubt been up all night watching the Australians collapse in the opening test.

Several years ago, there was a by-election where the Labour party did not do particularly well, and a then Labour Minister, who I will not name for obvious reasons, went on the radio to explain our poor showing and said that the reason Labour voters had stayed at home was that they were clearly very happy with what the Labour Government were doing. Looking around the Chamber at today’s attendance, I wonder whether some colleagues may wish to draw the same conclusion—that the reason there are not as many colleagues here as there might have been is that they are so delighted with the work that has been done by the Commission under your chairmanship, Mr Speaker, the Administration Committee and the Finance and Services Committee. It is surprising that many of the MPs who on previous occasions have complained vocally have not come along or tabled an amendment. I therefore assume that they are broadly content or have no better plans for how to make the necessary savings. I appreciate the incredibly difficult job that you, Mr Speaker, and your fellow Commission members have in trying to come up with those savings. I am struck by the fact that at a time when we are always preaching across the House about the need to make savings, some Government Members are asking for more money. That is very difficult to justify to our constituents. We must get better at spending the limited resources that we have.

I want to address three of the areas that have been covered so well today. First, on the catering and retail services, the Administration Committee has made it absolutely clear—I do not think I am speaking out of turn in saying that the Commission shares this view—that it is ludicrous that we have in the Palace of Westminster two sets of catering and two sets of retail outlets that are run completely separately. I know from the Clerk of the House and from you, Mr Speaker, that there is genuine good will towards the idea of seeking to merge the two services. I hope that my hon. Friend the shadow Leader of the House will set out the Labour party’s position and the Leader of the House will set out the Government’s position on whether that is a good idea. We could achieve significant savings for the taxpayer that would help us to fund other services if we were to persuade the House of Lords that while the House of Commons is making real savings, it must do more at its end of the building to bring down costs.

On the broader point about catering costs, I fully support the work that has been done by the right hon. Gentleman who ably chairs the Administration Committee in bringing forward proposals not to make money from charities but to offset the costs. A new set of charges is in place for a trial period, as of course you fully know, Mr Speaker, because it is costing the House money to provide our facilities to outside organisations.

[Kevin Brennan]

Just for clarity, let me say that in objecting to this House being hired out to certain organisations, I am not talking about charities but about corporate interests.

[Thomas Docherty]

I think we can all agree that pop bands would certainly not be classed as having a corporate identity. We are all looking forward to the world-famous parliamentary pop band MP4 entertaining us in a few weeks’ time. I am sure that you will be coming along to the Strangers Bar to see them on 10 December, Mr Speaker. I hope that that will generate some extra revenue. We all commend that excellent band for what they are doing.

My hon. Friend makes a valid point about which are the right organisations to bring in. The Administration Committee and the Commission have looked at this very carefully. We are saying that it would not be open to any organisation—there will be a vetting process—and it will be for the House itself, through the Chairman of the Administration Committee and the Committee more widely, to ensure that only appropriate organisations come here. I know that my hon. Friend is phenomenally busy doing a fantastic job in our education team, but if he wanted to come and have a chat with the Committee about the type of organisation that he would not like to see here, I am sure that we could reach a suitable accommodation with him.

[Thomas Docherty]

I am most grateful for that clarification, Mr Speaker.

If my hon. Friend or other Members on both sides of the House have genuine concerns about specific organisations they do not think are appropriate to be using our facilities, I am sure that the Administration Committee and the Commission would be happy to hear representations from them. The intention is not to turn Parliament into a Disneyland, as an hon. Member who is not here has said previously, or to rent it out to any old organisation. My hon. Friend makes a valid point, because some organisations have, in the business parlance, a reputational risk for Parliament. At the same time, we need to offset the cost of running Parliament and, as you have set out, Mr Speaker, we cannot simply keep going back to the taxpayer to ask for more money. We have to look not only to reduce our costs but to offset them wherever possible.

Concern has been expressed on both sides of the House about charities being charged, but the fact is that it costs us money to make these facilities available, and charities have a 25% discount on their hire charges because we recognise that they are not-for-profit organisations. We do not seek to prohibit or inhibit the ability of charities and other organisations to use our facilities—we very much welcome it—but we have to make sure that we are not, in effect, subsidising those charities.

[Kevin Brennan]

I am sorry to intervene again; my hon. Friend is being very generous in giving way. I think it is impossible to distinguish between different corporate interests. There will be issues of controversy with regard to all sorts of corporate interests. There might even be an issue of controversy in this House, which we will then be hiring out to those organisations. I think it would be better—I will not make this point again—if we simply stuck to charities that are registered with the Charity Commission; then we would all know where we were.

[Thomas Docherty]

I am genuinely grateful for my hon. Friend’s comment, but where I disagree with him, with the greatest respect, is that we already rent out to the private sector. If Members were to walk down the Dining Room Corridor at 8 am every morning, they would see each Dining Room being used for breakfast. A large number of those breakfast events are—

[Kevin Brennan]

Sponsored by Members.

[Thomas Docherty]

But they are paid for by businesses. If Members were to go to the Terrace Pavilion every evening, they would see receptions taking place that have been paid for by companies.

[Kevin Brennan]

Sponsored by Members.

[Thomas Docherty]

The Dining Rooms also have events that are paid for by companies. My hon. Friend keeps saying from a sedentary position that they are sponsored, but that will not change; it is just that it is the right hon. Member for Saffron Walden, in his capacity as Chairman of the Administration Committee, who will be the sponsoring Member. In the same way that individual Members currently sponsor events during sitting times—it is up to hon. Members to make those decisions—the Administration Committee seeks to do so during recess.

I honestly do not see the difference. If my hon. Friend is genuinely saying that private organisations should not be able to hold breakfast, lunch, dinner or drinks receptions, that is a legitimate position, although I do not agree with it. I think that saying that it is okay for an individual Member to do it, but that it is not okay for the right hon. Gentleman to do it, is a false divide.

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[Andrew Miller]

I could not agree with my hon. Friend more. Indeed, I did a gig for the outreach unit in his constituency, which was linked to the activities of the British Science Association. It was a hugely successful event. The young man who services the outreach unit in Durham is a first-rate example of what my hon. Friend is talking about.

I want to talk a little about what we are doing with electronic devices.

[Kevin Brennan]

Before my hon. Friend moves on to his iPad, may I return to the intervention by the distinguished Chair of the Administration Committee, in which he made the point that things will not change? When I inquired recently about the Terrace marquee, I was told that for an all-party group that does not represent any commercial interests—the all-party group on folk arts, in fact—the room hire alone would cost £750, which meant that the event could not take place. It is bad enough to have to get sponsorship for the catering, but having to pay £750 is prohibitive for a Member who chairs an all-party group.

[Andrew Miller]

That is exactly the point that I want to make. Many of the events to which I am referring are sponsored by me, but financed by learned societies, which by definition are not-for-profit organisations. They get trapped in the same way. That is why I invite the right hon. Member for Saffron Walden and his Committee to take a fresh look at the interpretation of the proposals.

As you know, Mr Speaker, my Select Committee was one of the first to take up the challenge of using electronic communications. Somebody said that if the Science and Technology Committee were not prepared to do it, either we had the wrong people on the Committee or we were asking the wrong question. It has been an interesting experiment. It has the potential to generate savings. The innovation was prompted by the need to make savings, but there are other drivers of it. It will allow multi-media, audio-visual and social media mechanisms to develop within the Committee structure and within the House more generally. Those elements need to be factored in, although some of them would be easier to achieve during a major refurbishment of the House.

I was on the old Information Committee in the days when we took the decision to move away from 405-line televisions and to use 625-line televisions with the cabling that we use now. That was the wrong decision and it was done on the cheap. We went for copper instead of the blown fibre that we should have used, because the costs were enormous and the House rejected that option.

My hon. Friend the Member for Dunfermline and West Fife (Thomas Docherty) is right that a radical decision must be taken, whether we like it or not. When we get to that point, we need to have a comprehensive, strategic plan for how the communications systems will be developed. The opportunities would be endless if one had open access to this building to put in modern systems.

The experiment with iPads has thrown up some interesting new ways of working, but it has also thrown up challenges. With the of greatest respect to the hon. Member for Caithness, Sutherland and Easter Ross (John Thurso), who made a brilliant presentation, he had under his arm a 2 inch-thick file of papers, because such detailed accountancy work cannot be done on an iPad. The software systems that are available are not up to the multitasking approach that one must adopt when dealing with complex projects. With the current technology, it is difficult to make the drafting of a Select Committee report a genuinely paperless process, which would be the ultimate conclusion of this approach, but developments in technology will assist in that. There will therefore be ongoing costs associated with the experiment. I hope that the Finance and Services Committee will ensure that those costs are supported properly.

I understand that the Committee Office is committed to saving more than £1 million through the digital-first programme, but that will not happen without investment, because it is an invest-to-save programme. We must consider the cost of iPads and the fact that they have a finite life. Given the way in which Members have to move around within this building and between here and their constituencies, I guess that the typical life of an iPad will be no more than a couple of years. Ongoing costs will therefore be associated with the project.

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[Andrew Miller]

I was going to say that I did not mean Tory MPs by that, but we are facing serious problems. Through an interest in this building, some years ago I made a film about its geology. That resulted in me getting into places where most right hon. and hon. Members never go, such as the roof of the House of Lords or down in the basement. I have been down and looked at some of the structural issues, which are potentially very concerning, and we should not ignore the possibility that the subject of decanting might come up quicker than we thought. Against that background, when considering expenditure plans we must be prepared to say that a lot of them might have to be put on hold if an interim report suggests that things are as serious as they appear.

My final point is to the Leader of the House and my hon. Friend the Member for Dunfermline and West Fife. One cost we are bearing—I do not know the exact figures, but they would be possible to calculate; I do not know whether the Finance and Services Committee has done that—concerns the terms during which we sit, particularly the September sitting. I fully understand the argument used by the late Robin Cook and subsequently the current Government about the merits of the September sitting, but is a bit of a myth. If we shifted those two weeks to either end of the summer period, what savings could be built into the restoration and repair programme during that period? I think they would be quite significant, and the House needs to look at that as another way of saving money.

[Kevin Brennan]

Part of the reason for it being a problem is because of the party conferences. Would it be sensible for the parties to get together and move their conferences to earlier in September? Then the House could return before the end of September without the need for this peculiar and expensive break.

[Andrew Miller]

That is why I addressed my remarks to the Front Benchers. There is place for a discussion about how we can avoid the silly coming-back for two weeks, which causes breaks in repair and maintenance contracts and disrupts a lot of organisation in the building. We need mature dialogue about how we can return to a more sensible approach—my hon. Friend has hit the nail on the head.

In summary, in some areas we can work towards savings based on the way we work, whether the September sitting or the use of electronic tools. All those issues require serious, mature thinking, and some up-front investment. The Visitor Centre will command support only if it is seen to be a genuine investment for a long-term facility, and I worry that the possible juxtaposition of the two projects might mean that it ends up as an investment that never gets its full use. As I said, I urge the House to use every possible resource to resolve the HR issues. Having spent 15 years in HR, I know that that is sometimes easier said than done, but getting things away from the courtrooms is by far the best solution and I urge everyone to work hard towards that goal.