Parliamentary Buildings (Restoration and Renewal) Bill

Mark Tami Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Wednesday 19th June 2019 Commons Chamber

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

I beg to move, That the clause be read a Second time.

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

With this it will be convenient to discuss the following:

Amendment 1, in clause 2, page 2, line 16, at end insert—

“(f) to require the Delivery Authority when allocating contracts for construction and related work to have regard for the company’s policies on corporate social responsibility, including those relating to the blacklisting of employees or potential employees from employment.”

Amendment 6, page 2, line 21, at end insert—

“(h) to undertake, and publish, an annual audit of the companies that have been awarded contracts for the Parliamentary building works, with a view to establishing their size and geographical location.”

Amendment 7, page 2, line 44, leave out “desirability of ensuring” and insert “need to ensure”.

This amendment requires the Parliamentary Works Sponsor Body, in exercising its functions, to have regard to the need to ensure that educational and other facilities are provided for people visiting the Palace of Westminster (rather than requiring it to have regard to the desirability of ensuring that such facilities are provided).

Amendment 4, page 2, line 46, at end insert—

“(h) the need to ensure that economic benefits of the Parliamentary building works are delivered across the nations and regions of the United Kingdom, in terms of contracts for works and in any other way the Sponsor Board considers appropriate.”

Amendment 5, page 2, line 46, at end insert—

“(h) the need to conserve and sustain the outstanding architectural, archaeological and historical significance of the Palace of Westminster, including the outstanding universal value of the World Heritage Site.”

Amendment 8, in schedule 1, page 10, line 20, at end insert—

“( ) See also paragraph 7A, which makes provision about the appointment of the first external members.”

This amendment signposts the new paragraph 7A inserted by amendment 9 (which deals with the appointment of the first external members of the Parliamentary Works Sponsor Body).

Amendment 9, page 12, line 2, at end insert—

“Appointment of initial external members

7A (1) The person who, immediately before the commencement day, was the chair of the shadow Sponsor Body is to be treated as having been appointed on that day as the chair of the Sponsor Body in accordance with paragraph 2.

(2) Appointment by virtue of sub-paragraph (1) is to be treated as being for a term of 3 years.

(3) A person who, immediately before the commencement day—

(a) was a member of the shadow Sponsor Body (other than the chair), and

(b) was not a member of either House of Parliament,

is to be treated as having been appointed on that day as a member of the Sponsor Body in accordance with paragraph 3 (external members).

(4) Appointment by virtue of sub-paragraph (3) is to be treated as being for a term ending with the last day of the period of 3 years beginning with the day on which the shadow Sponsor Body was established.

(5) An appointment by virtue of sub-paragraph (1) or (3) ceases to have effect at the end of the period of 1 month beginning with the commencement day unless, before the end of that period, the appointment is confirmed by a resolution of each House of Parliament.

(6) Paragraphs 2, 3 and 6 do not apply in relation to a member who is appointed by virtue of sub-paragraph (1) or (3).

(7) In this paragraph—

“the commencement day” means the day on which section 2(1) comes into force;

“the shadow Sponsor Body” means the body, established in July 2018 in connection with the restoration of the Palace of Westminster, which is known as the shadow Sponsor Body.”

This amendment provides for those who were external members of the shadow Sponsor Body immediately before clause 2 comes into force to be appointed as the first external members of the Parliamentary Works Sponsor Body.

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[Mark Tami]

I rise to speak to new clause 1 and amendment 6 on my behalf and that of my hon. Friend the Member for Hackney South and Shoreditch (Meg Hillier), and to amendments 8 and 9 on my behalf and that of the right hon. Member for Derbyshire Dales (Sir Patrick McLoughlin).

New clause 1 seeks to give statutory powers to the Comptroller and Auditor General to examine the preparedness of the Sponsor Body and the Delivery Authority to undertake the parliamentary building works required. Importantly, that power would come now, rather than looking at the project in the years to come. The new clause would not mandate the Comptroller and Auditor General to do it, but it would give him the power and the opportunity to do so if he considered it appropriate. For public confidence, it is vital that this project delivers and is seen to deliver value for money for the taxpayer. There is clearly uncertainty about what exactly we will find when we start the work on the building. As we have already seen with the Elizabeth Tower, we can actually find some quite large increases in costs.

It is not currently easy for the CAG and the National Audit Office to access a company’s records of contracts. They can look at a contract between the Government and a body in the private sector, but the NAO does not have access rights to such companies’ accounts. While that is not detailed in the new clause, I hope the Government will look at it. Greater access and transparency is vital in this respect. In saying that, we do not want to put extra burdens on small and medium-sized enterprises and other companies looking to tender for work. In fact, as I will explain, we have to do everything to ensure that they actually tender, but I ask the Minister to look at this issue, because it will be important in the future.

Amendment 6 is very straightforward. It calls for an annual audit of all the contracts awarded under the programme so that we can see both the size of the companies and, importantly, where they are and where the money is spent around the country. This project, by its very nature, is based in London, but it should not just be a London-centric project. This is a national Parliament, and the work needs to be spread across the whole of the UK. I know that other amendments also look at that.

[John Redwood (Wokingham) (Con)]

I entirely agree that where work has to be done, it should be spread around the country. Is the right hon. Gentleman envisaging that the audit should take into account the policy issues? For example, will it look at whether it is good value to move MPs out of this building, or whether there is some easier way of doing this without something so fundamental?

[Mark Tami]

As someone who has been involved in this from day one, I would say that we have looked at this very carefully, and the decision to decant from here was not taken lightly. A lot of work went into that, and I think we have made the right choice.

The two amendments in my name and that of the right hon. Member for Derbyshire Dales provide that the external members of the shadow Sponsor Body, including the chair, will be automatically transferred to the statutory Sponsor Body on the creation of that statutory body. As a member of the shadow board, I can say that I greatly value the work and experience that the external members of the shadow board have brought to bear, and I think it is important that that carries on. The amendments cover the members who only last year went through a fair and open competition, based on merit, to be appointed to the shadow Sponsor Body. Given that the shadow Sponsor Body has only recently commenced its work, it is important to retain these members, for now, for the continuity of the restoration and renewal programme. I am grateful to the Minister for agreeing in Committee to work with the right hon. Gentleman and me on these amendments, which I hope the Government will accept.

These amendments will transfer all the external members of the shadow Sponsor Body to the statutory Sponsor Body. The chair will be appointed for a term of three years from the date the Sponsor Body is established in statute. The terms of the other external members of the Sponsor Body will be three years from the date the shadow Sponsor Body was established in July 2018. Once these terms have expired, the chair of the Sponsor Body will be responsible for setting the members’ fixed terms, which cannot exceed three years. The Bill provides that, in doing so, the chair must have regard to the desirability of ensuring that appointments do not all expire at the same time. These amendments are a practical way forward, and I hope the House will accept them.

[John Redwood]

I am very happy that there should be proper audit and review, and I think the right spirit was struck by the right hon. Member for Alyn and Deeside (Mark Tami) in speaking about his proposal. However, I would like to raise the bigger policy issue. The underlying Bill he is seeking to amend says that the Delivery Authority is

“to formulate proposals relating to the design, cost and timing”

of the works, so it is not a done deal. I am very pleased it is not a done deal, because I think a lot of work needs to be done before committing to the plans that this House has not had a great deal of time to consider in this forum. It has been considered elsewhere, but perhaps other MPs have views that ought to be taken into account before we decamp from this important part of the Palace and embark on such fundamental works. When the audit looks into these matters, I hope it will take into account the wider issues of value for money and convenience, and the functions of this building.

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[John Redwood]

I do not think it does at all, because I have also pointed out that there are a lot of roofing works going on. The hon. Gentleman is using the parts of the building that are being reroofed without being interrupted in his work. Again, I pay tribute to those who are carrying out the works without the need for fundamental change.

If we want value for money, we need to ensure that before any full plans are adopted, the Delivery Authority has done a proper job of analysing the options.

I also make a more fundamental point about our democracy. I know that there are many Members here who do not want to restore a proper independent democracy in Britain and are doing their best to ignore the wishes of the British people, as expressed in the referendum. It would be doubly ironic if they not only had their way on that, but said that we cannot use the historic Palace in the way that was intended for a long period. That would be a symbol that the public’s wish—

[Mark Tami]

rose—

[Mr Deputy Speaker (Sir Lindsay Hoyle)]

Order. We need to keep to the Bill and the amendments. I know that a man of great stature like the right hon. Gentleman would not wish to lead the House where it is not supposed to go. I think that he was giving way to Mark Tami.

[Mark Tami]

To reinforce your point, Mr Deputy Speaker, I was about to say that we have had these arguments for ever and a day. We could have them again, but this debate is about the governance.

[Mr Deputy Speaker]

Hence I am sure Sir John will now go back to where he wanted to be.

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[Sir Edward Leigh (Gainsborough) (Con)]

I do not disagree with anything that my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) has just said. If his amendment were incorporated in the Bill, I would have no worries about it. However, I am not sure that he should have as many worries as he has articulated. I served on the pre-legislative scrutiny Committee. Those who are involved in this project or have taken an interest in it may disagree on many things, but one thing on which they are absolutely agreed is that we must preserve, 100%, the historical and architectural integrity of this building. Indeed, my approach to the renewal and restoration of Parliament is based on that premise. I hope that when we return to this place after the work has been done, we will notice hardly any difference. No doubt there will be better disabled access and no doubt computer systems and lighting systems will all work much better, but in the architectural significance to which my hon. Friend refers, we should notice no difference.

[Mark Tami]

Does the right hon. Gentleman agree that our ignoring the need for this work and putting it off for 70 or 100 years has led to the loss of important stonework and so forth? It has been allowed to go to rack and ruin.

[Sir Edward Leigh]

That is a valid point and I think we all agree with it.

My hon. Friend the Member for East Worthing and Shoreham is wrong on one point, however. It is possible at the moment to get a wheelchair into the Crypt chapel and into that cupboard he was talking about through the Cloisters. Incidentally, the Cloisters have lain empty for a long time. They were used just as offices, but they are an extraordinarily interesting part of this building. That area is not on the line of route; the public are totally unaware of it. It is a medieval remnant; it should be open to the public, and should be used as public open space. We could have done that years ago; instead, the Cloisters have been empty since—I think—Conservative or Labour researchers moved out.

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[Sir Edward Leigh]

Yes; my right hon. Friend has made a worthwhile intervention, and perhaps I have been too unfair on contractors. My experience of public sector contracts over the years is not so much the importance of those in the private sector who work for us, as that it is our fault for treating these projects like a Christmas tree. We have our own prejudices and policies, we constantly change personnel, and we add things on to the Christmas tree. The private sector—either correctly or incorrectly, depending on the way we feel—then takes the opportunity to charge us more and more. We have to grip this now.

I am slightly worried about amendment 9, and perhaps the Minister, and my right hon. Friend the Member for Derbyshire Dales (Sir Patrick McLoughlin) who tabled the amendment, can reassure me that there is nothing in it that takes away the democratic right of us in this Chamber to elect the members of the Sponsor Body and to dismiss them if necessary.

[Mark Tami]

The intention is to avoid a cliff edge, because we could lose their experience at a crucial time. That is why it was felt that we really need those people to carry on and then have a system where they are subject to elections and are replaced. We did not want to have a cliff edge at the start of the project.

[Sir Edward Leigh]

I take some reassurance from that. I was trying to understand the amendment. I have no problem with my right hon. Friend the Member for Derbyshire Dales, who is doing a good job, but I do not want us to give away our democratic right to elect the people we think should be on the body.

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[Christian Matheson]

If I am going to be corrected, I would choose always to be corrected by my hon. Friend. The point I am making is that whatever is made elsewhere in the United Kingdom will eventually have to be installed here in London, but he is absolutely right, and the amendments show that we hope to encourage such opportunities. Indeed, my right hon. Friend the Member for Alyn and Deeside pointed out in Committee that in practical terms that would require the widespread promotion and advertisement of contracts across the country. Market engagement and involvement must begin early and reach as widely as possible to include geographically diverse companies. I re-emphasise that the amendments are deliberately open and do not prescribe which companies should be considered; they would simply ensure that contracts were measured and monitored with consideration of the geographical context and the value context.

Furthermore, amendments 4 and 6 focus on the size of businesses bidding for contracts. This project provides us with the opportunity to upskill and invest in small and medium-sized enterprises as well as larger businesses. We must ensure that we support our thriving and exceptional small business sector, which regularly still feels cut out of large Government contracts. Efforts must be made to integrate small specialist companies and prevent big companies from winning contracts and subcontracting to companies that they already know and work with, rather than opening things up more widely.

Without placing those promises and that scrutiny in primary legislation, there is no guarantee that the Sponsor Body will not disregard any lack of geographical diversity. I see no harm in placing such a guarantee in the Bill. I hope that all Members recognise that it is a practical, common-sense amendment.

[Mark Tami]

rose—

[Christian Matheson]

I give way to my next-door neighbour from Alyn and Deeside.

[Mark Tami]

Before my hon. Friend moves on from procurement, the other point, particularly for smaller companies, is that the actual cost must be kept to a minimum. If it costs about £10,000 to enter the process, small companies will not risk that sum of money, because it means a lot to them, whereas it means nothing to big companies.

[Christian Matheson]

My right hon. Friend from the other side of Boundary Lane in Chester is absolutely right. We have to encourage small and medium-sized enterprises not simply by telling them that it would be good to bid for the contracts, but by making it as easy as possible for them, and by identifying and removing the barriers.

Finally, amendment 1, which stands in my name, is about corporate social responsibility and blacklisting. I remind the House of my entry in the Register of Members’ Financial Interests—I am a proud member of Unite the union and the GMB, and I have received support from both in the past. However, I remind the House that I have tabled the amendment on my own initiative and with the support of hon. Members, not at the behest of any trade union, because we believe that it is the right thing to do.

In Committee I tabled an amendment that might be considered stronger than amendment 1. That previous amendment called for the Delivery Authority to proscribe from the bidding process any firm that had been involved in blacklisting and had not subsequently signed a recognition agreement with a UK-registered trade union. The amendment was narrowly defeated. Nevertheless, I did welcome at the time the Minister’s strong condemnation of blacklisting as a practice, and the support of other hon. Members in Committee. We can condemn, or we can take action. Aside from legislating to outlaw blacklisting, this project is the most direct influence we can have on making a stand against this terrible practice, because this House, along with their lordships’ House, is the ultimate client and can set the terms.

I remind the House that blacklisting is pernicious. It destroys lives, it is dangerous, and it is still going on. Skilled and qualified tradesmen are still refused starts, or are finished up on a job after just a couple of days, without explanation. If a workers’ name appears on a blacklist, it may well be because he or she has been a trade union representative or—more likely—because they have in the past complained about poor health and safety standards. Construction is a dangerous business. Site managers are under pressure to keep costs down, but that can lead to lower standards. Too often, the men or women who have been willing to stand up for their fellow workers and challenge lax health and safety regimes are the ones who have been marked down as troublemakers, when the truth is that in many respects they do their employers a service.

I remind the House of the scale of the problem. The Consulting Association is the most recent example of an organised blacklist—that we know of. In 2009, its offices were raided by the Information Commissioner’s Office, and it was found to be running an organised blacklisting operation, with 3,300 names. In the 2008-09 financial year, subscribers spent £87,749 on name checks. That means that, at £2.20 for each check, 39,886 names were checked. I emphasise that that was in just one year.

Amendment 1 gives the House another opportunity to make a statement and take a stand against blacklisting. I have listened to colleagues, and the amendment is less prescriptive than the one considered in Committee.

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[Kevin Foster]

I will now move on—I am conscious of the time I have been going on for—to amendment 6, which is on the similar theme of having a report. Again, I appreciate the intention behind this amendment, which is the wish to spread this work across the United Kingdom. I have been clear that this is about spreading it not just to the nations, but to the regions. We all wish to see it go to places such as the south-west of England—the hon. Member for Bristol South (Karin Smyth), a fellow south-west MP, is in her place—and to make sure that this work is shared.

What we do not think is right is to put this in the part of the Bill that the amendment suggests. Given the intention for reporting, this could be put in the part of schedule 1 that already lists, for example, the annual statement of accounts and the report on the building works that must be presented and laid. It would make sense to work on such an option and present in the other place something that sums up these areas, without putting it where it would look unusual and making sure that we do not violate the procurement rules.

[Mark Tami]

I am pleased to hear that the Minister will look at this proposal in the other place. All amendment 6 asks for is an annual report to see how we are doing at spreading the work around. Hopefully, we will do very well, but I think we need a report to see whether the work is being spread around or is still stuck in the south-east.

[Kevin Foster]

I thank the right hon. Gentleman for the intention of his intervention. We have listened to Members’ submissions, but we feel it would be better to introduce an amendment to schedule 1 in the other place, because it would sit more appropriately with the other reports that will be made.

I have outlined the Government’s position on the amendments. I welcome the broad level of consensus that has been achieved and look forward to the Bill making further progress.

[Mark Tami]

On the basis of what the Minister has said, I will withdraw new clause 1. However, we will keep the matter under review, because the project involves very large sums of money, as a number of Members have made clear.

I welcome what the Minister said about amendment 6. We will certainly return to it in the other place. I am delighted that amendments 7, 8 and 9 will be supported by the Government.

I beg to ask leave to withdraw the clause.

Clause, by leave, withdrawn.

Clause 2

The Parliamentary Works Sponsor Body

Amendment proposed: 1, page 2, line 16, at end insert—

“(f) to require the Delivery Authority when allocating contracts for construction and related work to have regard for the company’s policies on corporate social responsibility, including those relating to the blacklisting of employees or potential employees from employment.”—(Christian Matheson.)

Question put, That the amendment be made.

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[Valerie Vaz]

Yes, I would love that. We have a great manufacturing tradition and there are many skills.

[Mark Tami]

Many of the skills that we will need are currently very limited, whether those of stonemasons or people who can work on the thousands of windows in this place. We need to train those people, because those skills are not readily available. We will be importing those skills if we do not train people.

[Valerie Vaz]

My right hon. Friend makes an important point. For me, having apprentices is a key consideration. It is also a good opportunity to make the workforce more diverse. I do not know whether the Leader of the House is aware of this, but there is a specific company that employs only women builders, decorators, plumbers and electricians. I think that looking at that would be a good way of showing that we are diverse. I would have liked to see the heritage aspect included in the Bill, but the Minister has suggested that there will be discussions, particularly in the other place, where there is a lot of expertise on heritage—he might regret that slightly. I am glad that the amendments have been won. Perhaps the Government will consider making them slightly stronger. I know that my hon. Friend the Member for City of Chester will be very happy to work with the Government on any future wording.

Finally, we have a duty to protect this amazing building. I know that lots of hon. Members have worked hard, whether in Bill Committees or through contributions they have made in discussions with House authorities, including the Minister. It affects all of us. We might not be here when the building is finally restored to its glory and is in its best condition, but we do this for future generations. Her Majesty’s Opposition are absolutely delighted to support the Bill as amended.