Police Reform and Social Responsibility Bill

Lord Hunt of Kings Heath Excerpts

Tuesday 24th May 2011 Lords Chamber

As far as concerns appointments, I am agnostic. I was an HMI, like the noble Lord, Lord Dear. I was involved in 17 appointments of chief constables and heads of the National Crime Squad and of the National Criminal Intelligence Service, as an independent adviser to HMIC. Each and every one of those appointments was the right one. I do not believe in blue-eyed boys or blue-eyed girls. Somewhere along the line, employment law must be followed and there must be an independent assessment. Most chief constables and chief officers will want to appoint their own top team. In my experience, I have never heard of a police authority that did not take account of what the chief officer wanted, and of what HMIC wanted. I urge caution on the Minister in relation to the business of finance. We must be absolutely clear that chief constables, chief officers and commissioners will not inherit a nightmare.

[Lord Hunt of Kings Heath]

My Lords, this has been a very interesting and important debate. My noble friend and other noble Lords raised very pertinent questions about the status of the elected police commissioner and chief constable as corporations sole, the financial consequences of the proposed arrangements, referred to by the noble Lord, Lord Shipley, and the financial relationship between the commissioner and the chief constable. I will start with that. Since it is the commissioner who will set the precept and ultimately sign off the plan, he will have considerable influence over the chief constable, because he who controls the resources tends to pull the strings. It will be rather like the relationship between Her Majesty's Treasury and the Home Office. My experience of friends in the Treasury over 10 years as a Minister was that they delighted in micromanaging the affairs of departments, which they did not think could organise a you-know-what in a brewery. It will be inevitable that the commissioner, who in the end will have total control over how much money the chief constable gets, will be able to exercise considerable operational control. We should bear that in mind when we consider the construct of the Bill.

My other concern is about the lack of good corporate governance when it comes to the concept of corporation sole and issues of expenditure, contracts and the employment of staff. As I said on our previous day in Committee, it is puzzling that the party opposite, the Conservatives, who 20 years ago were very concerned about ensuring good corporate governance both in the public and private sectors, seem to have forgotten all this when they came to construct the Bill. This has been a very good debate and noble Lords have used their experience of how the police service currently operates to tease out some of the issues.

The noble Lord, Lord Carlile, talked about the chief officer as chief executive. He thought that it was probably a good thing, provided that it was done in the right way. The problem I have with that is that, as I read the Bill, the chief constable, being corporation sole, is not just the chief executive; he or she is also the chair and the non-executive directors. It is the realisation of a Gilbertian fantasy: the Lord High Everything Else. The chief constable is not just the Lord High Everything Else; he is the Lord High Everything. Of course the noble Lord was right to ask the Minister whether there will be structures, such as good employment practice and all the other constraints and necessary safeguards, and I am sure the Minister will seek to give an affirmative response, but, in the end, it will be down to the chief constable as a corporation sole. As the noble Lord, Lord Stevens, said, in the end those who make, for instance, employment decisions will be employed by the chief constable, the corporation sole, and that must have an impact on their behaviour.

This corporate governance structure, or the absence of it, would never be contemplated by the Government if this were a private sector operation. The idea that you can have one person without some kind of board structure and without non-executives to give the check and balance would not be contemplated. Why is this kind of structure being contemplated in this part of the public sector? It is a puzzle to me. I have always paid tribute to the previous Conservative Government for the emphasis they gave to good corporate governance, the encouragement they gave to the Institute of Directors and the CBI and the work by Cadbury. The previous Conservative Government encouraged all these things. Why are they ignoring that when it comes to this Bill?

[The Minister of State, Home Office (Baroness Browning)]

My Lords, I am grateful. This has been a very constructive debate on a very important part of this legislation. In her opening remarks, the noble Baroness, Lady Henig, mentioned the corporation sole, and I shall begin by setting out where the Government are coming from on this. As Members of the Committee will know, a corporation is a body that has its own legal personality distinct from that of its members. This means that a corporation can own property, enter into contracts and take part in legal proceedings in its own capacity and that its assets, rights and liabilities are those of the corporation rather than the members. Typically, corporations have more than one member. Such corporations are called corporations aggregate. Local authorities are a typical example. However, a corporation can consist of only one person: the corporation sole. The sovereign is a corporation sole, as are various ecclesiastical figures, such as bishops, and various other public offices have been created corporations sole by legislation, such as the Treasury Solicitor, the Information Commissioner and the Children’s Commissioner, so this is not something completely new that has been contrived for the purposes of this legislation.

The amendments concerning this part of the Bill and particularly concerning the chief officer’s status as a corporation sole remove or limit the status to apply to employment matters. They also remove the chief officer’s ability to enter into other contracts and agreements, including the ability to borrow money and sell property. The Government are clear about the need to establish chief constables as corporations sole. This legal status will allow them to employ staff in their official capacity and thus have greater control over running their forces. We believe that it is a very important move for chief constables to be able to have that more direct link with the employment of the police. I accept what noble Lords have said about the status of existing police officers who are not employed as such by any one particular body. It is quite right that that has been mentioned. But this does not in any way detract from the oath that they take or from their status. They would go into a direct employment situation as far as the chief constable is concerned.

My noble friend Lord Carlile of Berriew clearly set out what I thought was exactly spot on as to why we want to do this. In terms of the increased capacity that the chief constable would have, particularly in the employment field, we want to ensure that a PCC is also enabled to focus on accountability rather than on running the force. Those two roles are quite distinct. We believe that the corporation sole allows the chief constable to fulfil that clearly defined role. The legal status that allows them to employ staff in their official capacity is very important in its vital function in the context of providing greater autonomy over the day-to-day management of the force. It is at the heart of clear operational independence, about which a lot has been said in our deliberations so far. This clearly, we believe, would contribute to it.

However, noble Lords have raised issues that are of concern and I hope that I can reassure them. As currently drafted, there are parts of this part of the Bill that we intend to change. Perhaps I may set them out. The noble Lord, Lord Stevens of Kirkwhelpington, and my noble friend Lady Harris raised the concern that chief officers will have significant powers to enter into contracts and agreements. It is our intention to consider this further. We will consider laying amendments which would prevent the chief constable from borrowing money and require him or her to obtain permission from the police and crime commissioner before entering into any contract other than a contract of employment. I hope that noble Lords will accept that we have already revisited this. They have made some important points around this aspect and at later stages of the Bill we will bring forward government amendments to try to correct this.

The amendments tabled by my noble friends Lady Hamwee and Lord Shipley and the noble Baroness, Lady Henig, would mean that, while the chief police officer would be able to appoint a chief finance officer, they would not be required to do so. Nor would they be required to appoint someone suitably qualified to hold that role. Currently, the Bill will require each chief police officer to appoint a chief finance officer of the force and require that person to be a member of a chartered financial institute. This is not about gathering chums around; it is about making sure that there is proper professional support for the role. I understand that the requirement for separate chief finance officers reporting to the chief police officer and the police and crime commissioner may on the face of it seem like duplication. Several Members of your Lordships’ House have mentioned that tonight but I stress that this is not the case. The noble Lord, Lord Dear, made the point that there is a situation here with the police authority and the chief constable.

The Bill makes key changes to the current system of financial governance for the police, flowing from the fact that it will be the chief police officers who employ the police staff currently employed by police authorities. The Bill provides for chief police officers to be corporation sole so that they can do this in their official capacity. As two distinct bodies both legally capable of holding moneys and entering into contracts, it is right and proper that chief police officers and police and crime commissioners both have suitably qualified people responsible for the propriety and efficiency of their financial affairs.

The provisions in the Bill set up two distinct bodies whose financial responsibilities will have to be formal, clear and accountable in law and to the public. I want to clarify any confusion between the role of the two. The chief finance officer to the force will be primarily involved in the propriety of operational spending and employment. The PCC’s chief financial officer will have the overall oversight of spending, including grant-making functions. I can confirm that there is no reason why there cannot be group audits of these two functions.

--- Later in debate ---

[Lord Hunt of Kings Heath]

My Lords, I may have misheard her, but I thought that the Minister hinted or said that amendments would be brought forward which would make it clear that contracts would have to be approved by the police commissioner. I can see why the Government have come back with that proposal, but to my mind, it just gives the commissioner that much more control over the chief constable. Because the commissioner is being given so much power with regard to money, whatever a protocol says about the relationship between the commissioner and the chief constable, the fact is that the person who holds the dosh usually controls what goes on. I hope the Government will give this further thought.

[Lord Harris of Haringey]

I want to question whether my noble friend has got the correct nuance of the argument. We have to be very clear about what we are trying to achieve with this Bill. My understanding is that the Government are trying to achieve stronger accountability, and that the mechanism for accountability is an elected police and crime commissioner—or we may end up with some other model. The danger is that, inadvertently, that accountability will be weakened. While my noble friend is right to say that being able to set the overall budget and strategy provides some degree of control, it does not provide the full picture. If you have a situation in which the corporation sole status of the chief officer of police is untrammelled—I was very pleased to hear what the Minister said about putting some limits around that, and I think it would be helpful to see those sooner rather than later—the danger is that chief officers of police will ignore what the body to whom they are supposed to be accountable will say are the key strategic issues that matter to their local communities. We would not want every minor arrangement in respect of an individual investigation to be referred to the accountable body, but we should have some system that ensures that those key decisions lie clearly with the body to which the chief officer of police is being held accountable.

--- Later in debate ---

Why am I not proposing the creation of a separate police and crime commissioner for London? It is because I recognise that we have a Greater London Authority and the Mayor of London. In the same way that we have a transport commissioner, we would have someone in charge of policing. Indeed, if I were rewriting the Greater London Authority Act—although that would be inappropriate in terms of the Bill or at this stage—I would have looked to creating at the same time as the elected mayor a number of directly elected posts that would have been responsible for a number of different functions, because that system of direct democracy and accountability would have worked well. People raise the horrid spectre of what would happen if the Mayor of London were of one party and the person elected as deputy mayor for policing and crime were of another party. If that were what the people of London wanted, the elected politicians concerned would have to find a way of managing that.

[Lord Hunt of Kings Heath]

I am interested in the concept suggested by my noble friend of different people being elected to a position in the same authority. What does he think about the Government’s proposal to appoint shadow mayors? Can I take him from the great city of London to the equally great city of Birmingham and the situation whereby the Secretary of State for Communities and Local Government is intending to nominate Councillor Mike Whitby, the Leader of the Conservative-Lib Dem council, to be the shadow mayor of Birmingham at the very time when it is clear that he will lose control of the council next May? We have a bizarre situation of having a shadow mayor with all the powers of the mayor, and the council being Labour-led. What does my noble friend think about that?

[Lord Harris of Haringey]

I think that that is a consequence of extending discussion in your Lordships' House past our normal finishing time of 10 pm, when we tend to range more widely on subjects.

My noble friend raises an important point. Neither I in my amendment nor the Government in their original proposal were doing anything as bizarre as seems to be suggested under the Localism Bill. Had they followed the same principle, no doubt we would have had chairs of police authorities all over the country suddenly becoming shadow commissioners of police and crime for their areas. Although many chairs of police authorities would no doubt have relished that transformation and enjoyed their brief period in that role, we are not in the Bill being offered the same arrangements that are being offered under the Localism Bill for the creation of mayors in major cities. The Localism Bill also envisages that there would then be a referendum of the local community. Some of us had hoped that we would have an interesting debate on that, but my noble friend chose to deny us that opportunity and is perhaps, by the back door, trying to give us the opportunity to have such a debate now. I shall not be lured down that path.

The purpose of my amendment is that, if the principle is clarity—that the person who holds the police to account should be directly elected and visible in that role—that individual in London should also be directly elected. In the Bill, we have a system where the Mayor of London is elected but, effectively, will automatically delegate an individual who need not be directly elected—and certainly will not be directly elected to fulfil that function—to carry out the role of the police and crime commissioner. That is wrong. It is a mistake. It runs against the entire premise of the Government's proposals, which is that there should be a directly elected individual who holds the police to account. I beg to move.

--- Later in debate ---

[Lord Soley]

I am not too worried about that but my view would be that it ought to be before the election.

[Lord Hunt of Kings Heath]

My Lords, this has been a short but interesting debate. I am very grateful to my noble friend. This series of amendments concerns police and crime plans. These are clearly very important because they set the strategic direction for how the police force is to be run. Clause 7(1) sets out the requirements for matters to be put in the plan, including,

“the elected local policing body’s police and crime objectives”.

As my noble friend Lord Soley has said, there is no mention in Clause 7(1) of anything to do with crime prevention. The points that he raised are very pertinent and we look forward to a positive response to them. My noble friend is also right to point out that there has been a very encouraging reduction in crime over the past decade or so. However, those trends are being reversed. A report to the West Midlands Police Authority last week showed the first rise in crime for many years, which is an extremely worrying trend. I agree that crime prevention needs to be an important part of the focus of any police and crime plan.

I have a series of amendments in this group, which are partly probing. I specifically ask the Minister about the rationale for Clause 5(4), the provision that says:

“A police and crime commissioner may vary a police and crime plan”.

Of course, I understand the need to have flexibility. However, my concern is that the ability of the police and crime commissioner to vary the plan at will may be used to exert undue pressure on the operational decisions of the chief constable.

--- Later in debate ---

[Lord Soley]

That was a disappointing reply. I really do think that the Government need to go away and put crime prevention in the Bill. We all want to reduce crime but simply saying that we want to do so is apple pie and motherhood. This is an important matter because, if you simply have a crime plan under an elected system, the loudest voices will decide what is done. The crime prevention plan needs to be drawn up on the basis of the crime statistics throughout the police area. If that does not happen, the loudest voices in any electoral system will make the decision and they will not address the type of crime that is most prevalent in the poorest areas.

We will, to some extent, come to the other matter that is not addressed when we reach Clause 9. We can see what is going to happen—indeed, the notes on the Bill give it away in a sense. They say, as does the Bill, that the money can be paid into a scheme to reduce crime. We know what will happen. The Home Office will currently be funding one plan, or this or that organisation will be funding it, and will then say, “It is over to the police and crime plan now”. Where will the money come from? You have to have a crime prevention plan that actually addresses those issues and allows MPs to look at it as well and say, “If the Home Office is going to stop funding this, will the crime plan fund it instead?”.

[Lord Hunt of Kings Heath]

I am grateful to my noble friend for giving way and am sorry that it is so late but is not the point that the Government are doing that to get them out of responsibility for crime issues? It is clear that crime will go up over the next few years and that the Government will wash their hands and say that it is the responsibility of elected police commissioners. That is what it is about.

[Lord Soley]

My noble friend anticipates me because I was going to finish on this. It is a relevant point. Leaving aside some of the wider issues of accountability, election and so on, my fear is that we will lose what has been gained over many years by many groups, including local authorities under different party control. We will lose that if we do not have a clear requirement for a crime prevention plan. This is when amendments from Back-Benchers are not as good as government amendments. We must address the issue of crime statistics in the area, not simply rely on the electorate to tell the chief officer what they want done. Does the Minister not see the problem that the loudest voices will determine the priority, instead of the statistics of the crime perhaps determining the policies towards reducing those crime patterns? Do I make sense?