Shared Services Connected Ltd

Mary Glindon Excerpts

Wednesday 9th April 2014 Westminster Hall

[Paul Blomfield]

I can indeed, and I will come to that issue. Closer to Newport than Sheffield, I met some staff from Cardiff last week. Like the staff in Sheffield, these are loyal civil servants who have contributed years of public service and, frankly, they feel betrayed by the decision and by the way that the decisions are being executed.

As well as job losses in Sheffield and Cardiff, 122 staff will go in SSCL offices in Blackpool, Newcastle, Peterborough and York. The DEFRA site in Alnwick has a temporary reprieve, but only until June 2015. The Government have not conducted economic impact assessments of the closure of these offices, although the loss of jobs will have a significant impact on local communities and economies. Indeed, in June 2013, Lynn Phillips, head of service improvement for DEFRA, wrote to the then Minister, the hon. Member for Somerton and Frome (Mr Heath), highlighting the plan’s

“incompatibility with UK growth objectives”

because of the

“loss of jobs in regional locations”.

Will the Minister assure us and say that the Government will conduct an economic impact assessment and, if so, when that is likely to happen?

[Mrs Mary Glindon (North Tyneside) (Lab)]

Specifically, on the DEFRA issue, does not my hon. Friend think that the fact that the Secretary of State raised concerns and asked for a standstill period shows how serious this offshoring is and that it will lead to dire consequences?

[Paul Blomfield]

My hon. Friend is right. I am coming to that point. Clearly, this issue has led to concerns being raised, even at Cabinet level. Yet, extraordinarily, the offshoring is being rushed through.

The speed at which SSCL intends to cut the 500 jobs is unprecedented. It aims to have all redundancies dealt with by the end of October. This does not allow enough time for staff to be re-employed or reinstated back into the civil service and means that compulsory redundancies are likely. Indeed, staff in Sheffield and in Cardiff, whom I met last week, told me that the redeployment opportunities have been limited, because there is no joined-up approach across Government. I find it extraordinary that most other Departments are not offering vacancies to those loyal civil servants who are losing their jobs. Do the Government think that this is the right way to treat any staff, particularly those who have given decades of public service? It sets a bad standard for employers throughout the country. I should like the Minister to reassure us on this issue. Will the Government commit to providing redeployment opportunities across all Departments? That would provide a lifeline for at least some staff. The limited opportunities that have been made available to date are inaccessible to many of those in Sheffield, and those at other sites, too.

SSCL is not acting in accordance with the special commitments given to staff before transfer, which stated that transformation would take place over two years and that everything would be done to avoid compulsory redundancies. The Government have a 25% stake in SSCL. At the very least, should they not use that position to challenge the speed of job cuts, to allow a thorough, ongoing programme of redeployment of staff? I should like the Minister to respond to that question.

There is also the issue of the data being handled. These sites handle the personal data of tens of thousands of civil servants. They also deal with commercially sensitive information relating to Government contracts and tendering. Despite the sensitivity of the data, when the Cabinet Office advertised for bidders to become majority partners in SSCL in April 2013, the selected bidders all had a significant element of offshoring functions as part of their bid.

Concerns about offshoring are not restricted to Opposition Members or their staff; they have, as my hon. Friend the Member for North Tyneside (Mrs Glindon) pointed out, been expressed at Cabinet level. The Secretary of State for Environment, Food and Rural Affairs wrote to the Minister for the Cabinet Office last July, expressing concerns about DEFRA joining ISSC2 and a “possible staff exodus”. The Secretary of State asked specifically for a standstill period on “estates and off-shoring” and expressed concerns about data security. The head of service improvement for DEFRA wrote in her letter to the hon. Member for Somerton and Frome that the DEFRA executive committee considered

“significant (or any) element of off-shoring”

to be unacceptable and that there was a

“significantly increased risk to service continuity from loss of current expertise”

on transfer. She also raised concerns about

“employee and detailed financial data transmitted, stored and processed outside the UK”.

Why are the Government sanctioning the offshoring of sensitive personal data and commercially sensitive information, on which objections have been raised at the highest level of the civil service and by members of the Cabinet?

--- Later in debate ---

[Mr Hurd]

That is a fair point, which the Chancellor has addressed directly by saying, “Yes, there is some very good news on job creation, but we still face a stubborn underlying challenge on the imbalance in the economy.” That is a fact, reality and challenge that the Government are addressing.

It would nice if we heard some voices from the Opposition Benches that recognised that these problems have been entrenched for a long time and were substantially not addressed by the previous Administration. I am trying to make the point that the broader context is one where the country is beginning to generate jobs again after some difficult years. Part of the reason why we have been able to create jobs is that at the core of the long-term economic plan is a plan to pay down the deficit. It would be nice to have a reality check on the Opposition Benches: that is the environment in which this Government have to work and in which the next Government will have to work, whatever their political colour.

[Mrs Glindon]

Will the Minister not acknowledge that sustaining jobs is as important as creating jobs in a successful economy? Offshoring these jobs is not about sustaining work in this country. If there is to be job creation, offshoring jobs negates some of that.

[Mr Hurd]

I will come to the specific point about offshoring, because it was at the core of the speech made by the hon. Member for Sheffield Central.