Finances of the House of Commons

Lord Lansley Excerpts

Thursday 21st November 2013 Commons Chamber

[The Leader of the House of Commons (Mr Andrew Lansley)]

I fear that we shall not complete the debate by 2.15—[Hon. Members: “Oh, go on!”] Tempting though that is. These are House matters, and it has been important to hear from Members about them; that is probably more important than hearing from me. I very much welcome the debate, and I am grateful to my hon. Friend the Member for Caithness, Sutherland and Easter Ross (John Thurso) for introducing it and for the work that he and his Committee have done. I should like to bracket him together with my right hon. Friend the Member for Saffron Walden (Sir Alan Haselhurst), the Chair of the Administration Committee, and to thank them both for enabling the House to have such confidence in their work and for managing the difficult decisions that will continually have to be made if we are to meet our savings targets.

I join Members across the House who have rightly expressed support for the way in which the House continues to manage the provision of services. Much continues to be achieved in delivering high-quality services to Members, to enable them to provide support for their constituents and to provide the representation here that is integral to our democratic process. We can do all that only because of the tremendous service and support that we receive from the staff of the House. Integral to the way in which the savings targets have been delivered has been the way in which the House staff have participated and offered their ideas on how the plans in the various Departments could be brought together.

Just over three years ago, the House of Commons Commission committed itself to reducing the administration estimate by at least 17% by 2014-15. I am pleased to see that we are on track to meet that target. This is related to the reduction in administration costs across government as a whole, including an average reduction in departmental budgets of 19% over four years, and a reduction in the overall administration costs in many Departments of one third in real terms. Of course, this is not only about administration costs; it is also about delivering efficiencies that can be reinvested to enable services to be qualitatively improved wherever possible.

The hon. Member for Wallasey (Ms Eagle) made a point about working together with the House of Lords on administration. I must point out that we do that already. Good examples of where that can be, and should be, done are security, procurement and back-office functions. We have to be careful, however, not to treat the separate governance of the two Houses as an “anomaly”, as I think she called it. My hon. Friend the Member for Harwich and North Essex (Mr Jenkin) has made some good points in this regard. It is not an anomaly; it is a constitutional fact, and it is not going to change in the immediate future, so far as I can see. I know from my conversations with the Leader of the House of Lords that the Lords want to work together with us, but we must respect their position and the need for the two Houses to make decisions for themselves. My hon. Friend rightly drew the analogy of two local authorities working together to share support services and back-office functions. We can and should do this, but there might well be governance issues and areas in which separate decisions will continue to be made.

I want to say a few words about restoration and renewal, but I also want to flag up that, given the nature of the decisions that will have to be made, and the integral character of the programme for the two Houses, we will clearly have to think about putting in place joint governance structures for the programme, which will extend across the two Houses.

[Thomas Docherty]

On the point about joint services, will the right hon. Gentleman clarify whether, on catering and retail, we should maintain the status quo or accept the position of the Administration Committee and bring them together?

[Mr Lansley]

I will leave it to the Committees to decide whether they want to bring forward proposals. Although I am perfectly willing to commit to talking to the Leader of the House of Lords, it is in neither of our gifts to put the two Houses together for such a purpose, but I know that there is a willingness in both Houses to look at where administration and support can be managed together.

[Andrew Miller]

May I bring to the Leader of the House’s attention how well the Parliamentary Office of Science and Technology works on a bicameral basis? We brought it into the House in the early 1990s, and it has worked extremely well. It has become very strong in the recent past.

[Mr Lansley]

Yes, I am aware of that, and of the example that the shadow Leader of the House gave of PICT. None the less, when we look at PICT, we must understand that there are certain areas of activity in which having two masters makes the business of trying to manage a service much more difficult. Effectively, we need to distinguish between the two sets of governors, as it were, and see whether they have entirely complementary objectives. It might be true for many areas of human resources, administration and back-office functions, but, in some other respects, the two Houses might not necessarily have the same objectives and, because of the nature of the governance, they must be given the opportunity to manage those separately.

The hon. Member for Ellesmere Port and Neston (Andrew Miller) raised the issue of pay, as did my hon. Friend the Member for The Cotswolds (Geoffrey Clifton-Brown). Pay is clearly a significant part of the overall management of cost. I know that there have been intensive discussions between management and trade unions, but too many issues remain unresolved for a deal to be done. The Management Board’s offer was a fair one, but it remains open to discussions with the trade unions. I hope that it is understood—I have had my own conversations with the staff about this—that there is no possibility of either the House or the staff winning from a court case. The net result of continuing with the court action will be a negative one overall, and it is in the interests of both sides to continue to try to reach a deal—if one can be reached.

I look forward to the Commission receiving the Finance and Services Committee’s report on what have been described as zero-hour contracts. I entirely take the point made by my hon. Friend the Member for Caithness, Sutherland and Easter Ross. Strictly speaking, such contracts mean no minimum guaranteed hours and an obligation to undertake work at the request of the employee. There are no corresponding obligations from the employer in relation to the employee. That is not what we have, or what we are looking to have. We want a relationship with our staff that recognises that they and we have a legitimate reason for having flexibility and call-off contracts, but that should be on the basis of offering minimum hours if staff are looking for that and if it is consistent with the needs of the House. I am talking about areas such as visitor services and catering. We must always ensure that we meet our obligations in relation to annual leave, sick pay, training and, importantly, access to internal vacancies as and when they arise.

The House is asked to note the medium-term financial plan. I am tempted to take the position of the shadow Leader of the House and say nothing more about restoration and renewal. However, I will just say that it is a major issue. It is not simply that the expenditure is beyond the medium-term financial plan. We need to assure ourselves that the expenditure that we are undertaking on capital is not nugatory and will contribute beneficially to the overall programme. However, that does not require us to rush at defining what that overall and major programme looks like. Options should be properly explored and costed.

The involvement of the Major Projects Authority and Infrastructure UK in the review process is entirely sensible. Members in this House and in the other House will have potentially strong views on whether it is necessary to leave this place for a period. There could be a decant for a short time, or a long time, or no decant at all. No one would choose to decant; it is not something that any of us seek. None the less, we must understand that the risks and constraints on us if we do not do so may also be considerable. The independent assessment needs to give us a clear understanding of the options in terms of the practicalities, cost and potential value for money. The decision will not emerge from the options appraisal; it is a decision that we will have to make. We need to weigh the costs and complexities against how we manage our business and how the House continues to meet its obligations. Indeed, the relationship between Parliament and Government in trying to manage the business of government is a significant one, so we will only make a decision on the basis of that assessment and of Members being consulted. A decision will be made at the proper time. My hon. Friend the Member for Caithness, Sutherland and Easter Ross was right to say that the decision is likely to be made not in this Parliament, but early in the next one.

We have had sensible discussions on the education centre. As a member of the House of Commons Commission, I can say that we have rightly identified how we can proceed in a way that represents the best available option. In principle, it is absolutely the right thing to do. We want as many young people as possible to have a direct experience of Parliament, which they will carry with them through their lives. We are aiming for 100,000 young people, but it is a shame that we cannot aim for 600,000. On that basis, we could say to every young person in this country that at some point during their school lives, they would have an opportunity to visit Parliament. To be as ambitious as we are is the very least that we should set out to do.

The House will have noticed in the medium-term financial plan that there is a reference to further pressures, including the Government’s agenda on public engagement, which we are keen to push forward. I will not elaborate, but I am talking about things such as the public reading stages of Bills. I am keen to work with colleagues from across the House on the further development of our petition system, including the Government e-petition system, which will make it easier for the public to engage with us. It will be readily accessible and will help the public to understand that they are petitioning Parliament and Government on their issues—not one or the other. There will be an enhanced expectation about and experience of the response, and a hope that the matter will be taken up and debated in Parliament.

On behalf of the Commission, I want to emphasise how useful this debate has been in helping us to consider the report of the Finance and Services Committee and to frame a response to it. Support for the motion today would represent an endorsement of a plan for the sustainable delivery of high-quality services to the House, while making the necessary and proportionate contribution to savings in administration expenditure in public services. I ask the House to support the motion.