Superannuation Bill

Lord Maclennan of Rogart Excerpts

Tuesday 26th October 2010 Lords Chamber

[Lord Maclennan of Rogart]

My Lords, it could never be easy to introduce a statutory scheme reducing the compensation entitlements of those leaving the Civil Service prematurely. That was manifested by the experiences of the outgoing Labour Government when their proposals for reform of the scheme under the 1972 Act were taken to the High Court and quashed. That is the immediate background against which we have to judge this Bill and recognise the difficulties that face any Government.

It is also important to reflect that the dramatic headlines about the loss of people employed in the Civil Service have concentrated the minds of those who might not otherwise be so concerned about the terms of the Bill. The previous legislation has lasted for a long time, since 1972. It was not challenged before because there was a gradual expansion rather than contraction of the numbers working in the public sector. That expansion was substantially accelerated in the lifetime of the previous Government; the contraction now envisaged will not reduce the Civil Service to the level at which it stood in 1997 when the last Labour Government took office. It is my understanding that we shall end up with 400,000 more jobs in the public sector than in 1997, notwithstanding the cuts envisaged.

It is unquestionably highly desirable in making the changes to the terms available to civil servants on premature termination of their employment that the scheme is broadly acceptable to all categories in the service and, in particular, that its provisions ensure proper protection for the lower paid. I believe that the coalition Government have recognised that that is an important condition and have moved to ameliorate the terms on offer in earlier proposals. I have listened with interest to the speeches of the noble Baroness, Lady Drake, and my noble friend Lady Noakes about the precise terms of this legislation and particularly their concerns with Clauses 2 and 3, which would be widely shared. It is not reasonable not to accept and acknowledge the substantial movement towards acceptance of a better deal than was originally proposed in the months since the Bill was published.

When changes were mooted to the current scheme by the Labour Government, five of the six unions involved in the negotiations were prepared to recommend to their members acceptance of what was proposed. That appears to be the position in respect of the proposals of the present Government. It is to be hoped that the sixth union, the PCS, will acknowledge that substantial improvements have been made in what was originally proposed. It has not as yet given any indication that I have discovered of what particular complaints it has, or what proposals it would make to amend the proposed scheme, which has been acceptable to their colleagues. It would be helpful to the Government and the legislature to have a clearer idea of what its goals are.

As for the provisions of Clause 1, it seems entirely right that no single body of employees in a union should be able to hold the country to ransom. It is entirely right that there should be requirements to ensure proper, meaningful consultation about proposed changes. I very much hope that that will appear in the Bill, and I was glad to hear my noble friend Lord Wallace give that assurance. On the other hand, pay in the private sector—and indeed in the rest of the public sector, including in the National Health Service—appears to have risen more rapidly in the past 10 years than in the Civil Service. That trend may not continue. In considering comparability between sectors, we should recognise the differential pay levels of the different sectors and the difficulties that will be faced by civil servants, made redundant, who have accepted lower levels of reward than their opposite numbers in the private sector.

It may be unusual to be considering a Bill whose terms could be amended by such sunset provisions as have been provided, but this underlines both the urgency of the situation and, I believe, the willingness of the coalition Government to negotiate. I very much hope that it will be possible to introduce the arrangements that encourage flexible voluntary redundancy arrangements in the months that lie ahead.

Redeployment within the service may not always be possible, but in the present circumstances systematic consideration should be given to it, including postponement of final service of notice, to allow public servants the best opportunity of re-employment. In April 2008, the then Government introduced protocols of the kind that I understand have been operated ever since to ensure what was called the Efficiency and Relocation Support Programme, when there were surplus staff situations. I would be grateful if the Minister would indicate that it is in no way the Government’s intention to resile from those protocols, which would help to ameliorate the difficulties faced by, admittedly, a larger number of people than were affected in spring 2008.

It is immensely important that these changes come about with the least hardship. People who are employed in parts of the country far from the capital city will not find it easy to be redeployed within the public sector, and many of them will find it exceedingly difficult, in areas of existing high unemployment, to find alternative employment in those areas. They may have to move, and for some that would constitute enormous difficulties. I hope that the maximum flexibility will be exercised in terminating employment and issuing redundancy notices.

I recognise that there has been valuable movement in the direction of easing that situation by increasing pay in lieu of notice to three months; and other changes in the proposed new scheme, such as the readier access to pension arrangements at pensionable age, are welcome and could help considerably in those respects. We await with interest the tabling of the amendments that the Government propose to see whether they themselves will contribute to the easing of the difficulties that are faced, particularly by the PCS. I profoundly hope that that will be done.