Ministry of Justice Shared Services

Debate between Nick Smith and Simon Hughes

Tuesday 8th July 2014 Westminster Hall

[Simon Hughes]

I am going to try to make these points, because I hope I can address such concerns. If there are any remaining issues and some time available, I will be happy to take further questions.

I ought to add that I saw a bit of the “Newsnight” programme last night; it was actually a former Minister, rather than a current one, who was talking about the civil service. I hope that we would all join together in saying that we think our civil service is an ace organisation. It is one of the best public services in the world and we respect everybody in it. Certainly, as a new Minister in my Department, I want to thank the civil servants who work for us—not just in the Ministry of Justice, but in other public Departments—for the public service that they give.

I entirely understand that a change of the kind being proposed is hugely worrying for staff affected. That is obvious. I know that many valued, hard-working staff in Newport, Bootle and elsewhere will be concerned about the potential impact of the changes on their lives, and I will do what I can to give reassurance, as well as sharing the facts as accurately as I can.

We are talking about just over 1,000 people working for MOJ shared services. The figures I have been given, going up to today, are that the full-time equivalent number in Phoenix house in Newport is 725 and that at Redgrave court in Bootle, it is 103. Here, in Petty France, there are 67 full-time equivalents in the shared services department. There are 31 in the Prison Service college, although they may not in the end be affected, and there are 154 in nationwide teams, so we are talking about just over 1,000 in total.

As part of the shared services reforms, which are part of a wider civil service reform programme, the majority of those staff will transfer to one of the two independent shared service centres, which have been created to work across a wider range of Government Departments and services. Subject to contract, which has not been awarded yet, the independent shared service centre, to which the majority of Ministry of Justice shared services staff will transfer, is, as colleagues know, to be managed by Shared Services Connected Ltd, or SSCL. That is a joint venture between the Cabinet Office and, yes, Steria Ltd, which already manages services on behalf of the Department for Work and Pensions, the Department for Environment, Food and Rural Affairs and the Environment Agency. The Department for Business, Innovation and Skills is also moving its shared services across. The other company deals with much smaller parts of the civil service organisation.

The decision to move to this company was taken following a full evaluation of both the independent shared service centres and the option to remain in-house in the Ministry of Justice. The reason why SSCL was chosen as the preferred framework provider was that it provided the most competitive solution, which—this is very important for all constituents, including mine, those in Newport and those in the north-west—provided the potential to deliver significant savings to the taxpayer. The evaluation criteria included people impact, service delivery, cost and IT.

[Nick Smith (Blaenau Gwent) (Lab)]

Will the Minister give way?

[Simon Hughes]

I will in a second. The SSCL proposal was the strongest, in part due to the investment that it is already making in a new IT platform and the fact that the costs could be shared across multiple Government Departments—I will carry on, because I am conscious of time, but I will try and give way later.

I want to reassure colleagues that, as I hope they know, anybody transferred, if the contract is entered into, will be protected by the TUPE arrangements, so their employment will transfer across to any new employer. There will be no overall detriment to their terms and conditions or their pensions. The current arrangement is that the Ministry of Justice has secured at least 12 months’ job protection, starting from October 2014, when the transfer to SSCL is due to take place. If the transfer does go ahead this autumn, the jobs will be secure as well as all the transferred rights for 12 months after that. As part of the agreed protections, we expect all MOJ sites to remain open for at least the first year after transfer to SSCL.

I appreciate that staff have concerns about job security beyond that. I fully understand that, but obviously I cannot make specific commitments beyond the agreement that has been negotiated.

[Nick Smith]

On that point, will the Minister give way?

[Simon Hughes]

In a second, if the hon. Gentleman will allow me to continue. It is worth bearing in mind that the addition of the MOJ and the Home Office to the independent shared service centre will almost double its number of users. That gives it a strength, a credibility and a potential that, I would have thought, strengthens its future. Staff will still be required to provide services for those users and I can tell people in south Wales, the north-west and elsewhere that absolutely no decisions have been made to close any MOJ site.

--- Later in debate ---

[Nick Smith]

I thank the Minister for giving way. I am glad that earlier he acknowledged the importance of these sorts of jobs to the south Wales economy—particularly the Patent Office and the statistical service. Newport is wary about what is happening, as are the south Wales valleys just north of it. What steps is the Minister actively taking to stop these jobs being offshored? It is really important that he addresses that point.

[Simon Hughes]

I was going to make that point next, so I shall make it next as planned. I understand the hon. Gentleman’s interest, as an MP not far away from Newport.

There is obvious and understandable concern about any offshoring, following a transfer. First, there has been no decision to offshore any Ministry of Justice shared services work. Secondly, I tell all hon. Members—the hon. Member for Newport West and his colleagues—that should there be any such proposal, it would need the specific agreement of the Ministry of Justice. I therefore repeat the fact that the Secretary of State has made it absolutely clear that he would not support such a proposal. Given that this is the first opportunity I have had to speak on the issue, I make it clear that I would not support such a proposal either. It seems to me that we have an obligation, particularly in those services that do key jobs for the public, to have the jobs done in this country, and the Ministry of Justice has been very clear that it will retain the right to make a decision in relation to any such proposal.