Parliamentary Buildings (Restoration and Renewal) Bill (First sitting)

Meg Hillier Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 4th June 2019 Public Bill Committees

[The Chair]

That is a very good point. We have a number of amendments tabled by different individuals. I look to Meg Hillier. Are you content?

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

indicated assent.

[The Chair]

Why don’t we do that? Let’s be grown up about this. We will discuss all amendments to clause 2 at the same time. Christian Matheson, are you happy with that?

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[Meg Hillier]

It is a pleasure to serve under your chairmanship, Sir Gary and finally to be here debating this Bill. I pay tribute to the Joint Committee that produced its excellent report in 2016; it is just a shame that it has taken so long to get this far, but we are here now with a common purpose.

I pay tribute to my hon. Friend the Member for City of Chester for the blacklisting amendment that he has tabled; it is an excellent opportunity to enshrine in law something that will change habits. In the Committee that I have the privilege of chairing, a challenge when looking at Government contracting is often that Government are a big purchaser of services, but they have power that they do not choose to use to set parameters. This is an opportunity for a project of this size—many billions of pounds—to set the parameters and establish and push a better method of practice in a sector that has had problems in the past. Certainly, any business that wants to take part should behave in the way that my hon. Friend suggested.

My amendment stems partly from my experience as a Member representing part of the Olympic site. When the 2012 Olympics were proposed, one of the things that excited my local residents was the opportunity for them and their friends and family to get jobs on the site. Despite much pressure for that to happen, we discovered during and after the Olympics that there were a number of issues with local businesses and individuals getting work on the site. A lot of promises were made, and sometimes they were genuinely made but people found ways of getting around them. For example, a local resident could be somebody renting a room for a few weeks, who therefore became a local resident and qualified in the resident targets for those jobs, but they were not local. Local businesses did not get enough of a look in because the contracts were very large.

In preparation for the 2012 Olympics I visited New South Wales—not on the taxpayer’s pound as I was on holiday—and I met the Culture Minister for New South Wales. In preparation for the Sydney Olympics, they went through every contract that was going to be let in the Olympics and broke it down to every single item that they might need to procure—every chair was broken down into its nuts and bolts. If there were companies that produced something in not quite the way required for the Olympics, they were given the advice and opportunity to learn to produce something different to meet the needs of the Olympics. Those contracts were laid out clearly. Added to that, the Government of New South Wales made a concerted effort to work with their local businesses to make sure they were contract-ready, so they could bid for the scale of contracts that the Olympics might require.

[Mark Tami]

Does my hon. Friend agree that in the tendering for those contracts, costs must be kept down? If it costs £5,000 or £10,000, a lot of small and medium-sized enterprises will not risk that massive amount of money. That is a problem in some big projects.

[Meg Hillier]

My right hon. Friend is absolutely right, and I will come on to that.

The point of that experience is that it is not for us to prescribe how the Sponsor Body might do this, but a body managing a project of this size, with this range of work, can seek out and assist and support others to do it. My right hon. Friend the Member for Alyn and Deeside talked about having roadshows; there are Members in this House who will be the best advocates for their local businesses. I am sure that people who know that we are on this Committee and have an interest have come and told many of us about how their constituency provided elements of the existing building and could provide them again.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

Tiles.

[Meg Hillier]

I think we will hear from the ceramics sector in a moment. There are an awful lot of opportunities for our local businesses. I am sure that local authorities and business organisations in different areas will be champing at the bit to prove that their organisations can do it.

My right hon. Friend the Member for Alyn and Deeside made a valid point about contracting. The Government have moved on with things like G-Cloud to make it easier for smaller businesses to contract, but the rules can be challenging. I would not want to prescribe anything in the Bill because I think it is challenging to prescribe in law, but I hope that the Sponsor Body—I will put it on the record, and I hope it will read or hear this—makes sure that the contracts are broken down into the right size. Often, for those procuring large contracts, it is simpler to secure one big one and to let the subcontractors to the big contract take up the work. The danger with that is that they are not subcontractors.

One of the things that we need to have in place is an audit system. With the Olympics, after the event no proper audit was done of the jobs that were supposed to be created locally. The National Audit Office could have direct access to those companies, which would be a great way forward, or the Sponsor Body could commission its own audit. As we have a National Audit Office serving Parliament, however, I think it would be an excellent place to do that. The outgoing Comptroller and Auditor General and his team were keen on that. I have not had the chance to speak to the new incumbent, who started his job—very nobly—on Saturday. It is early days for him, but I am hopeful that the NAO team is still willing to take that on, as I had that reassurance from them.

Unless we measure and monitor what is happening, games can be played—people and businesses can lose out. This measure does not need to cost more if the preparatory work is done, so that such businesses can apply. Think of the skills that this place could use—stonemasons, wood carvers and a huge range of other skills and niche businesses—some of which we might not have in the UK, but if we start planning now and thinking about what we might be doing, some businesses could adapt their production processes to provide some of the things that this House needs. The prospect of a big contract might make it worth their while to take that risk. Of course it is a risk—we cannot just give those companies a contract; they will still have to bid for it—but if they are willing to do that, we should give them every opportunity.

That yearly audit is vital, and the benefits will not happen otherwise. If the Sponsor Body goes down the route of having subcontractors, we have to have a way to ensure that the big companies really subcontract to specialists, not just to subcontractors they already know and work with, but opening things up more widely. The risk is that that will not happen, but I do not want to prescribe it in law because it is challenging.

If the amendment is adopted it would require the Sponsor Body to think about big project integration. Often with big projects—most recently with Crossrail—the challenge is to integrate the smaller contracts at the time just before delivery. Some of the bits of work will have to finish at around the same time, or in sequential order, to work properly, so the Sponsor Body would be required to think that through carefully in the early days. That is why I would like to get this in the Bill, so that the body has no excuse—in law, it would know what it has to do.

[Mr Prisk]

I envisage that this will be a digital project and that building the information modelling will be at the heart of the way in which it is done. That naturally undertakes what the hon. Lady just described. Is that her expectation of how this contract will be delivered?

[Meg Hillier]

The hon. Gentleman makes an important point. That is one of the things that could happen, but as we have seen—I had the privilege of visiting Crossrail a couple of times, most recently in the past few weeks—sometimes nothing beats having eyes on the ground, seeing what is happening and checking with contractors what is happening. That is a skill of project management, which of course uses digital tools to deliver. Who knows, but let us hope that a British business delivers such tools and will be able to help the Sponsor Body and win such a project. A good project manager will still be needed on the ground to ensure that all the smaller businesses work together.

This measure does not need to cost more money; it just needs to be planned from the beginning. The process cannot be added at the end, suddenly, when someone says, “Oh, we have had a lot of noise from MPs who are concerned that their companies have not got the business.” It must be planned from the beginning. The Minister is very committed to his region, and he was a great advocate for Devon when he served nobly on the Public Accounts Committee, so I am sure that he is with us in spirit. I hope that the Government are willing to accept the amendment. I will accept a change of wording if they feel that the drafting is amiss, although I had good advice from the Clerks.

[Tom Brake]

I am in some difficulty in asking questions, given my role on the House of Commons Commission, but I have established that I am allowed to speak and to express views. As the hon. Lady knows, the northern estate programme is very large and is already under way. Contractors can email that programme to express an interest in the works. That seems to me to be a good testbed for what she is arguing for—all the work that she wants to happen to audit the restoration and renewal project.

[Meg Hillier]

The right hon. Gentleman is absolutely right. We need to start now and make it a mission of this place to set a tone for how other large projects should be run, to ensure that we support our thriving and exceptional small business sector, which, even with Government attempts to try to send more money in its direction, sometimes still feels cut out of large Government contracts, which are not broken down to a small enough scale. I hope the Minister will take that on board.

I want to comment on the education centre. The hon. Member for Hertford and Stortford suggested an elegant manuscript amendment—I am not sure what the procedure would be, Sir Gary, or whether that would be accepted—but the general principle raised by my hon. Friend the Member for City of Chester is right. We must not forget that the current education centre is a temporary building. It had planning permission only for a decade, it did not get built straightaway, and where it is now will have to be a space for heavy plant, so that building will be gone during—if not before—the restoration.

With the prospect of a new temporary Chamber or facility in the northern estate, there is every opportunity to plan in education from day one. It should not be an optional extra. I am often in and out of that building with schoolchildren from Hackney South and Shoreditch—it is very close by and easy to get here—and the building has had a major impact in helping them to develop their political understanding and skills. I will have plenty of successors from Hackney South and Shoreditch, and there will be heavy competition when I hang up my shoes and move on, because they have been inspired by coming here.

I pay tribute to the education team. In fact, I have also looked at their value for money, and pound for pound they provide extremely good value for money in what they deliver. We must ensure that education is a definite part of the future, not an optional extra. The danger is, if there is a budget problem—with proper audit we hope there will not be, and we will consider audit later—it could be dropped if we are not careful. I hope the Minister agrees that it needs to be written in more firmly. The Government did not accept points on this in the Joint Committee’s report, but I hope that, in the light of the debate, the Minister, who is a reasonable fellow, will consider a change of heart. In the end, it does not affect Government; it affects this House, this country and all the young people of the UK who come through it in future.

[Mr David Jones (Clwyd West) (Con)]

I want to speak briefly about amendment 14 in the name of the hon. Member for Hackney South and Shoreditch, with whom I served on the Joint Committee. The amendment is on all fours with the Joint Committee’s conclusions. She is right that the restoration and renewal of the Houses of Parliament will be one of the biggest and most important public works projects in the country, and it should, as the Joint Committee’s report mentions, emulate what was done for other large public works. She mentioned the Olympic park, and its aquatic centre was partly constructed by Welsh companies. Similarly, when Heathrow had two terminals either constructed or reconstructed recently, its owners went out of their way to ensure that companies throughout the country benefited from such large-scale public work. Again, I was pleased to see that at Heathrow a number of Welsh companies had the opportunity to contribute.

The restoration of this Palace will require a huge number of diverse skills, which may already be possessed right across the country. It is important that the Government remember that this is the restoration of our national Parliament building, so it is entirely appropriate that each and every part of the United Kingdom should have the opportunity to benefit.

The hon. Lady’s amendment accords entirely with the Joint Committee’s conclusions, and I very much hope the Government recognise that this is an issue for this House rather than for them. There is much support across the House for the proposition that companies right across the United Kingdom should have the opportunity to tender for the work and benefit from it, with skills and businesses created that will endure long after the restoration of the Palace of Westminster has been completed. I urge my hon. Friend the Minister to give serious consideration to the amendment.

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[Mr Prisk]

The right hon. Gentleman speaks about one of my particular frustrations with all public buildings, which is that we throw money at the capital cost, never put in money for the long-term maintenance, and wonder why the damned thing costs as much as it does—if “damned” is an acceptable word, Sir Gary.

I draw the Committee’s attention to my two concerns about the amendment. First, as worthy as the amendment undoubtedly is, as for any condition that we set, there will be some form of cost, whether in expression of time or in process. In this instance, I happen to think that we should establish that cost at the start. The hon. Member for Hackney South and Shoreditch is absolutely right to say that if one does that at the beginning and then has the discipline not to tinker and meddle thereafter, one can avoid the spiralling costs of other public projects.

Secondly, there is the nature of the audit envisaged in the amendment, which the hon. Lady addressed to a degree. Going by what she said, she does not wish to have a strict audit in the sense of trying to have a rigid quota, in which one part of the country must have a certain percentage and so on.

[Meg Hillier]

indicated assent.

--- Later in debate ---

[Kevin Foster]

We can’t move it, but I understand it has a computer server in it; it is hardly the most fitting compliment to shove a computer server in the room. Those are the sorts of areas where we can look at how we expand the wider role in education.

I cannot imagine that Members of either House would endorse a programme of works or an estimate that did not include a clear provision for educational facilities in the final building and in the decant option. In the wording of this particular clause, however, by using “desirability” for this and other facilities, it is the Government’s perspective that the Sponsor Body has a direction, but also some flexibility. The other facilities that we might have considered sensible 30 years ago may not necessarily be the other facilities that we consider sensible today. For example, 30 years ago it would have seemed sensible to put in a large number of public phone boxes, but a facility to charge a mobile phone would have been completely irrelevant to all but the wealthiest of people visiting the House. Now, we would take the view that the balance would be the other way round.

[Meg Hillier]

The Minister is making an eloquent argument against the word “need”, but we have an elegant amendment proposed by the hon. Member for Hertford and Stortford, which talks about taking out the words “the desirability of”. My concern—I think some other hon. Members input their concern too—is that if it is not on the face of the Bill, we will have already lost the education centre and there will be a risk that it might fall off the edge, at the end of the project. I think it is important to have it on the face of the Bill.

[Kevin Foster]

That is why the face of the Bill is balanced. While these are not statutory obligations—there is no statute saying or implying that we have to have it—having it down as desirable reflects that. I am looking in Sir Gary’s direction, but the amendments before me are the ones on the amendment paper and the ones we are considering. There is no manuscript amendment or any other proposed amendment at this stage, but I would not rule out looking at this issue again on Report, if a proposal is brought forward. We would be happy to work with colleagues if there is a feeling that this provision should be strengthened.

To respond to the question about relevance, it is on the face of the Bill—it reflects desirability. I accept that ultimately some of the facilities—not the educational ones—will depend on balancing many competing priorities, including the very pressing need to preserve the heritage of this building.

[Kevin Foster]

While I thank the hon. Gentleman, I am clear that this is a parliamentary project. The Government will seek to defend their interest as this Bill goes through, but it would not be our intention to bring forward Government amendments, except to deal with matters specifically relating to the Government’s role. However, we would look kindly at something a bit later. If a Back-Bench amendment were brought forward—particularly if Parliamentary Counsel were involved—we would not inherently move to object, but that is something upon which to take advice.

At this stage, the wording of the Bill as it stands gives Members what they are looking for; the desirability of ensuring that education and other facilities are provided for people visiting the Palace of Westminster, after the completion of these works, is clearly on the face of the Bill. The Sponsor Body must have regard to that and it would be on the front page of primary legislation. We are all clear about the goals we wish the Sponsor Body to achieve, despite our discussion on wording.

[Meg Hillier]

I seek some guidance from the Minister. He is the Minister presenting the Bill. The law was drafted by Government, because that is the way that Bills are drafted and the Sponsor Body cannot draft the Bill itself. Therefore, the Minister is the custodian of what this Bill will say. Yet he has just said that it is not the Government’s role to add to the use of the Bill because it is not ultimately a Government responsibility. Is he saying that he will go away and talk to the Sponsor Body about what it would like to see, and then he might consider a Government amendment, or is he saying he would only accept a Back-Bench amendment but he would seriously consider one along the lines proposed by the hon. Member for Hertford and Stortford, amending the amendment proposed by my hon. Friend the Member for City of Chester?

[Kevin Foster]

The Government have been clear in their wish to facilitate Parliament in its desire to complete restoration and renewal; that is the position we have strongly adopted. If a Member wished to engage with Government, before Report, about particular wording then obviously we would wish to make sure we had had advice from Parliamentary Counsel. We do not want to find that the Bill has an unintended consequence, or that an amendment has been made that will make the Sponsor Body’s job more difficult; I am sure the hon. Lady does not want that either. I say again that I do not think that anyone reading the face of the Bill would take it to mean that there is not a clear and strong push towards having educational and other facilities in this building. That would be on the face of primary legislation.

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[Kevin Foster]

While I thank the hon. Gentleman for his intervention, I do not agree. I have every confidence that the Sponsor Body will look for good value, and that will mean contracting with companies across the whole United Kingdom. We see this in the experience of other projects and major events. Of course, we can have confidence that the hon. Gentleman will be a strong voice in pushing the Sponsor Body, as he has been on the shadow body, to look at working across the United Kingdom. I suggest it is not appropriate to put such a requirement into the Bill at this stage.

[Meg Hillier]

I thank the Minister for giving way; he is being generous. However, I refer to what my hon. Friend the Member for Rhondda said. The clause already sets out specific criteria. Although the amendment may not be so elegantly worded, I was careful in drafting it to ensure that it would set the principle in train at this early stage, while not prescribing how the Sponsor Body would go about things. Members of the Sponsor Body are here, and others will no doubt be watching. As the Minister knows, they are only on for three years at a time, so it is important that this issue is enshrined in the Bill and not lost in the mists of time. Many of us will not be here when we actually move out of the building, by which point many of the contracts will already have been let. I urge the Minister to give us some comfort that he will at least go away and consider this. I am minded to press the amendment to a vote, on the basis that we need to set down a marker in the Bill for the principle that we should make this a UK-wide project. I need more words of comfort from the Minister before I will consider withdrawing the amendment.

[Kevin Foster]

We would be happy to take this away and look at how we can provide further reassurance to Members. The intention is that the Delivery Authority will look for work across the United Kingdom, but I am afraid that if the amendment is pressed to a Division, the Government will have to resist it at this stage, despite the fact that we all seem to have the same objective.

Things such as the yearly audit of the works will mean that the Delivery Authority remains accountable to Parliament, and parliamentary members will be on it. There will be appropriate discussion to be had about exactly how they face questions and how they can be held to account on a day-to-day basis, including by the Public Accounts Committee, which I cannot believe for one minute will not take the opportunity of regular reports and examinations of how the authority is spreading its work, contracting and making sure that this a project for the entire Union.