House of Commons Financial Plan and Draft Estimates

Mark Tami Excerpts

Tuesday 11th December 2018 Westminster Hall

[Chris Bryant]

The second exception that we make—again, I think that it is difficult to disagree with—relates to security. The physical aspects of security in this building and of Members in their constituencies are obviously important, but as we have seen in the last two years, the cyber-security of the parliamentary estimate is also a vital element of enabling the democratic process to proceed. It is not just Russia but China and, potentially, a whole series of other countries that, as state actors, might be seeking to undermine the cyber-security of this place, and it would be all too easy for other people engaged in espionage to attack it. Of course, there have also been the very sad deaths of Jo Cox and PC Keith Palmer.

I am therefore fully aware that it is important to have an exception from the remit for security, but we need to be very clear that we are getting good value for money and that we are not wasting taxpayers’ money, even when we are dealing with security matters. I have some concerns about the contract with Chubb and the way it has been administered; I think that the Committee will want to look at that in the near future.

One of the largest areas of exception from the remit is, of course, the major strategic programmes that we have in the Palace of Westminster. There are three such programmes. The first is restoration and renewal. Everyone is aware of that—we had a big debate on it. Unfortunately, the delays in delivering it have made it very difficult for us to be clear about exactly when we will be incurring the expenditure. Indeed, the delays in decision making in the House have made it more difficult for the Officers of the House to be able to deliver clear financial decision making.

The second programme is the northern estate programme. That is definitely progressing. We have been involved in looking at some of the suggestions of what there may be, including in relation to the alternative Chamber that will be built, largely on the same basis as the current Commons Chamber but with better disabled access; provision of offices for Members who are being decanted out of this building; and ensuring that the whole of the northern estate within the curtilage is efficiently and effectively used. I passionately support that programme, because I think that at the end of it we will have a legacy for future generations that will improve access for the public to the whole of the parliamentary estate and to the archives.

That is the third programme—the archives accommodation programme. I do not know whether any Members have been into the archives of late, but it is virtually impossible to get there; it is certainly very difficult for any members of the public to get there. The photograph room has never worked since it was first installed, and all the rolled Acts of Parliament, going back to the 14th century, could be far better stored than they are now. They are higgledy-piggledy; they are in time order, but should be far more carefully stored. However, that cannot really happen until such time as we have new provision.

We have also made an exemption—this is new for us—for any decisions made by the House in relation to reports that are being done. The most important example is the Dame Laura Cox report, which has already led to significant public interest, as people want to ensure that Parliament is a safe place for everybody to work and that there is no bullying or harassment. There are costs involved in delivering that review and we are keen to support that, and we will doubtless be keen to support whatever Gemma White QC comes up with, when her review is completed.

In addition, we have allocated £2.4 million for the Sponsor Board, which is up and running in shadow form. I see that one of its members—my right hon. Friend the Member for Alyn and Deeside (Mark Tami)— is here in his less shadowy form; certainly his tie is less shadowy than it might be, as usual. The shadow Sponsor Board is up and running, and we are hopeful that it will be able to engage in its work as fast as possible. As I understand it, it is keen to speed up decisions, rather than delay. At the moment, we are talking about not leaving the Palace in the decant until 2026, but there are people who would like that to be brought forward to 2025 if it is physically possible.

[Mark Tami (Alyn and Deeside) (Lab)]

I apologise for missing the opening few minutes. I just want to emphasise the important point about driving things forward. This is not a vanity project: we are doing this work because the building is not safe as it is at the moment.

--- Later in debate ---

[Chris Bryant]

That is absolutely right. When—if—Brexit happens, it will be all the more important, in relation to other European countries, that Members of this House and the House of Lords will be seen as diplomats or ambassadors on behalf of Parliament. We need to garner the information, ideas and contacts that come through that in the national interest. I worry that we do not do that very well at the moment.

The capital elements of the administration estimate are quite significant. We are talking about £236.8 million. Some of the figures in the report that we have published are slightly different from the figures that we are talking about now, because this is an iterative process. In a sense, the reason for having this debate was to be able to inform those decisions as they go forward to the commission. The two largest elements of this relate to the major ongoing building projects. Of that, £117.4 million relates to the Strategic Estates projects. I think everybody on the Committee would say that we worry about the Strategic Estates. It is not just that the Elizabeth Tower started off at one price and ended up at a completely different price—incidentally, it ended up being a rather different project. With the stone courtyard project, the money we were allocating for all five courtyards has been taken up on one. I am sure that both the Labour party and Conservative party would have moaned about this, but we also decided to close the cloister—one of the most beautiful parts of the Palace—and move all the staff out more than 18 months ago, yet work has still not started on it, even though it desperately needs work.

[Mark Tami]

We were told at the time that those people had to leave because that work was essential and could not wait under any circumstances—it was quite an exercise to find somewhere else for those people—only to see it left empty, apart from some building materials that have been left there.

[Chris Bryant]

That is distressing and worrying. Apart from anything else, it is worrying because it is one of the most beautiful parts of the palace, which is hardly used or visited by the public. I hope that when restoration and renewal is complete we will not have destroyed the beautiful work that was done by Henry VII and Henry VIII. That would be a terrible sadness. The delay is down to capacity in the team and physical capacity on the site. It is not down to somebody being negligent in their job, or anything like that, but it is simply down to capacity. If we are unable to get that work done, there is a danger that we will lose one of the most important architectural aspects of the building.

It is not all bad. The cast-iron roofs project has been extraordinarily successful. It is on time and on budget. It is a massively impressive project. It has basically kept two companies in the north of England afloat over the last few years. The encaustic tiles project has been very successful as well. It is great to see the floors now being sorted out. It is also quite interesting to see people in the shop buying the old encaustic tiles that have been lifted up, thereby bringing a little bit of income back into the Palace as well. They are quite good Christmas presents, Mr Howarth. If you feel like buying one, you can buy me one.

[Chris Bryant]

All of us on the Committee have a fundamental worry that sometimes, because we have to meet Government pay scales and agreed limits, we end up paying for a lot of consultancy advice. That ends up creating more expense, but because it is sort of off the books, or is not accounted in the same way, somehow it meets some kind of Government requirement. I think this is a false economy. We are desperate to do whatever we can to ensure that we do not continue wasting taxpayers’ money in that way.

I should add that we are spending £88.8 million in the capital element of the administration estimate on the northern estate programme. It has been difficult to know when this money will be spent. That is one reason why it has been difficult to get the finances precisely right this year, because we did not know when we would be starting the work. If political decision-making causes delays, it adds to the cost. If the Minister has any role in making sure that key decisions come at the right time, and that we are not putting off votes, for instance—if she can chivvy the Leader of the House, or whoever makes such decisions—it would be enormously helpful to the finances of Parliament.

The Members estimate relates to Short money, which is available to make sure that Opposition parties can do their job properly. I am glad we won the battle a few years ago to make sure that is adequate. It also pays for the Deputy Speakers’ salaries and for the Exchequer elements of contributions to the pensions fund. It stands at £17.7 million, which is a little bit up from £17.1 million previously.

I will finish with a few general points. We on the Committee feel that we do not manage many of these processes well yet, so there is work to do. One issue about the Elizabeth tower, which I have already referred to, was that not enough investigative work was done before we started to let the contract. We then found out that the cables were not in the place that all the maps said they were, which incurred significant extra cost. We were also probably too optimistic about what it was going to cost. We now have a much better estimate of our optimism bias, although I have a slight worry that if we are too pessimistic, that will simply be an excuse for spending more money than we needed to in the first place. It is a difficult balancing act.

Another issue was that, in the end, the contract for the Elizabeth tower was let when there was no Parliament. Everybody ran around asking, “Who made the decision?”, but the truth is that it was taken somewhere between the Commission, which still existed because it is a statutory body, the Treasury, the Leader of the House and the accounting officer, who is the Clerk of the House. We need to have much greater continuity when we have general elections. To not have a Finance Committee for the best part of six months is a mistake. There is a strong argument for putting the Finance Committee on a statutory footing, as the Commission is, so it can still exist even when there is no Parliament, because financial decisions still have to be made.

[Mark Tami]

My hon. Friend is absolutely right; I have served on the Finance Committee and the Administration Committee. We sometimes concentrate on small items that cost very little, and scrutinise them to the nth degree, yet no one is quite sure who actually signed off a massive project.

[Chris Bryant]

Yes; I never want to have the debate on whether we should put 3p or 5p on the price of a cup of tea ever again.

[Chris Bryant]

I am led by the Committee. It is a serious point that we sometimes obsess about small amounts of money, but, for example, it looks as if the fire safety budget will have gone from £90 million to £160 million, and it is perfectly legitimate to ask who made that decision and at what point a decision was made by a Committee of the House or by the accounting officer. If we cannot match responsibility and accountability, there is a real danger that financial mistakes will be made and significant amounts of money will go in the wrong direction.

I have already made the point, but I want to labour it, that we are too bound by Government pay scales. That has made it difficult to pay the right price to get the job done in one of the most complicated and difficult buildings and in the context of the most complicated and difficult political decision-making processes. Many staff who work here are admirable—they dedicate themselves to their task as much as any Member of Parliament and work many hours beyond what they are required to do—but, all too often, we end up bringing in experts on consultancy rates and paying more than we need to simply because we are trying to meet the Treasury’s rules. That is a mistake.

I worry that the building swamps the work financially. We are talking about spending dramatic amounts of money on the building, but what is really important here is the scrutiny work that we do, the public coming to understand how we do our democratic business and the engagement with the public. There are major projects that should be slanted much more towards the public.

A classic instance is that, of late, people have regularly queued for an hour or two hours—often standing in the pouring rain—to get into the building to watch democracy in action. We simply have to do better on such projects. I have heard lots of different explanations. Sometimes I am told that it is because one of the security arches is not working, or that people are working to rule because they are fed up with decisions that have been made elsewhere in the Palace—who knows? All I know is that the public feel they are getting a pretty rum deal. They are often late for meetings that they are coming to in Parliament. This should be an open place, not one that is almost impossible to get into.

[Mark Tami]

I certainly agree. After many years of using the Palace, some organisations are questioning whether they will carry on, because of the inability to get people in. After restoration and renewal, we are talking about doubling the number of people who come here, but there is no point having ambitious targets if we cannot get people in safely and more quickly.

[Chris Bryant]

As always, my right hon. Friend makes my point better than me, so I am grateful.

Finally, the structure is not quite right. It has been some time since the Commission was put on a statutory basis after the Straw review. The Leader of the House is keen to look at having the Commission elected, which I support; I would have the whole Commission fully elected to do a job. It would then function more like a traditional Select Committee and more like a team. That would be a good way to go forward, rather than the process we have now, in which all the members of the Commission are appointed by their respective party leaders, and then there are two external members, who are often the most informed and independently-minded on all the financial aspects but, bizarrely, are not allowed to vote. That system needs to change.

I have already said “finally”, but I will say it again: finally, if anything I have said has given the impression that I am not respectful of the Clerks or the people who work for the Committee, that would be a complete mistake. Myfanwy Barrett is a wonderful woman who has done a sterling job for many years. It is an enormous sadness to us that she is leaving—but who knows, maybe we will be buying in her consultancy advice later at a much greater price.

[Mark Tami]

Fiona Channon, who I have dealt with for many years about offices, is also leaving and going to the House of Lords, which will be a great loss to the Commons.

[Chris Bryant]

I do not want to turn the debate into the Oscars, but I also thank Philip Collins, who has done a magnificent job for us, and Rob Cope, who is our Committee Clerk.

We have done things differently in the last few months. We are keen to make sure that the Commission regularly hears our voice before it makes decisions about key financial matters. In the end, we are spending taxpayers’ money and we should do it better.