House of Commons Governance

Oliver Heald Excerpts

Thursday 22nd January 2015 Commons Chamber

[Sir Oliver Heald (North East Hertfordshire) (Con)]

The hon. Member for Wallasey (Ms Eagle) talked of the pace of change over the years. She and I used to sit on the Select Committee on Employment in the early 1990s, when Committees were not supported to the extent they are now. As has been observed by others, there has been massive change over that period. This report has presented an opportunity to look at our arrangements, many years since Members last looked at them, and to see how we can better fit them to the current day.

I pay tribute to the work of our Chairman, the right hon. Member for Blackburn (Mr Straw). The Committee sat a great deal. We sat three times a week and took evidence from many witnesses. I am grateful to him. It was a privilege to serve under him. We saw some excellent chairmanship skills, which is not surprising after his many years here and all the important posts he has held over the years.

It was a particularly good idea for the Committee to meet 60 staff members in break-out groups to hear their views on the governance of the House. That might be a good model for the House of Commons Commission to follow occasionally. The staff were genuinely excited and pleased to be asked their views.

I am proud of the work of the Committee. I pay tribute to my colleagues and the staff who helped us. It was a major undertaking and the report was delivered early. I am glad that the Commission has pledged to implement the proposals if the House supports them today.

The right hon. Member for Neath (Mr Hain), with whom I served on the Modernisation Committee when I was shadow Leader of the House, asked whether this is a major change. One only has to look at the organograms in annexes E and F to see that it is. The wonderful current arrangements are shown in annex F, which is like a piece of modern art, it is so complex. What is being proposed is a much simpler, more straightforward and more modern system.

I do not want to dwell on the reasons the Governance Committee was set up. It was clear from the evidence that we heard that it was time for Members to look at this issue. I believe that the Committee did a thorough and good job.

One focus for the Committee was to consider the role of Clerk of the House and chief executive. We heard important evidence from Members and a large number of other witnesses. Lord Browne, who at the time was the Government’s lead non-executive, was a particularly telling witness. He explained that, in designing who should be at the top of the pyramid of officers in a company, it was important to look at who had detailed knowledge of the core business. Although we are not a company—we are a very unusual body indeed—I felt that he had a point. He felt that the same principle should apply here, and I rather agreed.

We also heard from Lord Judge, the previous Lord Chief Justice, that if he was talking about privilege he would expect to talk to the person who was in charge and was expert in the matter. Many others, including the former leader of the Liberal Democrats, the right hon. and learned Member for North East Fife (Sir Menzies Campbell), also gave good evidence on that point.

One thing that became clear during our deliberations was that there are models in the public service of the senior official having somebody with commercial and operational skills working with him. That can be valuable in ensuring that what is decided actually gets done. We heard from John Manzoni, chief executive of the civil service, and Michael Whitehouse, chief operating officer for the Comptroller and Auditor General at the National Audit Office. Lord Browne told us that if there are to be two roles, it is vital to have clarity and proper job specifications, and we have set out in the report the specifications for the two roles we decided on. He said:

“Governance must start with clarity, which is difficult to achieve, and with a clear understanding of accountability, which includes decision rights. Who gets to decide what and to whom do you report when you have done it?”

The chief executive of the civil service, who reports to the Cabinet Secretary, and the chief operating officer of the NAO, who reports to the Comptroller and Auditor General, had found that it was possible to have a senior official working closely with the person in charge in a role that was described in different ways—chief executive or chief operating officer. They found that it depended crucially on having the right people in position, having clarity and the two people having an ability to co-operate. We have set out a process whereby the Clerk would be appointed first and then the director general, which is important to ensure that we have people who can work closely together.

[Mr Jenkin]

From hearing this debate, I am increasingly persuaded that part of the accountability that we need is the autonomy and clear visibility of the director general. Even now, the director general of facilities wears a badge telling us his name and title, and he feels more accountable because people stop him and talk to him as he walks around the Palace. That shows how important the visibility and demonstrable autonomy of the director general will be under the new arrangement, which is something we have all learned from this process.

[Sir Oliver Heald]

I very much agree. We use the words “overall responsibility” several times in the job specification for the director general, to show that autonomy.

I support the conclusion that the Clerk should remain the senior official of the House of Commons, with the authority that that involves, but that a director general should bring the skills we have just discussed to that important role. It is also right that the director general should have the freedom to initiate in certain areas, that he should be on the House of Commons Commission and that his role should be clearly defined.

During the course of our evidence taking, it became clear that the arrangements for the Commission and the Management Board were not working as well as they should, partly because of the structure, which I have already mentioned and which is obvious from the annexes to which I have referred, but also partly because of culture. We proposed a model that would expand the Commission and involve every important player in this place, and we clarified an enhanced role for Back-Bench Members of the Commission. As the motion states, it is important that there is party balance on the Commission, and it is also important that there are non-executive directors to strengthen it and ensure that there is proper business experience at the top level.

The effect of the changes will be that the Management Board will be abolished and replaced with an executive committee. That is more common in public companies and other parts of the public sector. It will be a streamlined body, working on a House service basis, committed to delivering the Commission’s decisions. Some suggest that the Clerk should chair that body, but we decided that, overall, it should be the place where the director general ensures that the Commission’s decisions are put into effect. The Clerk should of course be a member, but the lead role of implementation should be with the director general.

The report is more extensive than we first expected, and I believe that it provides a good way forward for the future. I hope that the Government will commit the time necessary to put the new system in place so that it takes effect immediately after the general election, and I was grateful to the Leader of the House for his points on that, which seemed encouraging.

As somebody who has practised as an employment lawyer and advised the recruitment industry in the past, I was a bit surprised by the recruitment procedure followed last summer. The procedure from 2011, which was supervised by Susan Craig of the human resources department here, was a good step forward on what had happened previously. Although it was intended that a similar procedure would be followed this time, it was not. The House must have state-of-the-art recruitment procedures in place, so I welcome the report’s provisions setting out a model for future recruitment in line with current practice. That is an improvement on the 2011 procedure and fits in with the recommendations that Sir Kevin Tebbit made as long ago as 2007.

Over recent years, there has been a process of improving the way in which the House of Commons is managed, but having heard the evidence to the Governance Committee I have no doubt that there is a lot more to do. I believe that the report provides a basis for structural changes that are needed.

An important part of our recommendations relates to the culture of the House and the need for further efforts to achieve a more coherent House service that puts even more emphasis on staff development and training. Sir Kevin Tebbit told us that was important to break down the barriers between departments and functions. I am sure that is right, and our report suggests ways to foster that. I am proud of the report and its conclusions, and I hope that the House will agree that they have merit.

--- Later in debate ---

[Mr Straw]

I thank all 14 right hon. and hon. Members who contributed to this very interesting debate. I particularly thank the members of the Committee—which I had the privilege to chair—and the Leader and Deputy Leader of the House.

Before I respond to a few of the points that have been raised, I want to underline the tribute that the Leader of the House paid to his predecessor Leon Brittan, whose passing we heard about earlier this afternoon. I was privileged to be in the House when Leon Brittan was a Member. He was, of course, a member of an opposite party. However, I remember him as a highly intelligent individual, a very good Minister and a very good constituency Member, but also as someone who showed great courtesy and kindness—not least to the new Member for Blackburn, and to many of my colleagues on the Opposition Benches. I send my personal sympathy to his widow, Diana, and to his wider family, and, if I may, I do so on behalf of the Opposition as well.

[Sir Oliver Heald]

I had only just heard the news when the right hon. Gentleman delivered it. Let me say for my part that Leon Brittan gave me a great deal of advice and support when I was first embarking on a political career. He was a very kind man, and he gave me so much support. I echo the sentiments expressed by the right hon. Gentleman.

[Mr Straw]

It is odd, but I last met him and his wife in an airport lounge when we were whiling away about three hours as we waited for a late plane. I cannot remember which airport it was, but I do remember that the conversation was very entertaining.

Let me now deal with some of the points that have been made today. My hon. Friend the Member for Walsall North (Mr Winnick) raised the issue—which was also raised by the hon. Member for New Forest East (Dr Lewis)—of whether there should be a pre-confirmation hearing, perhaps before the Public Accounts Committee, in respect of the Commission’s decision on whom to appoint as Clerk and as director general. I can see from where the analogy arises, but it will ultimately be a matter for the Commission and then the House when I am not a Member of it. I think the House should have second, third and fourth thoughts about this, because there is a profound difference between this House, via a relevant Committee, holding pre-confirmation hearings in respect of posts that are adjudicators of other institutions—the Comptroller and Auditor General and the ombudsmen, and perhaps, which I would like to see, future appointments for Her Majesty’s chief inspector of prisons and for the probation service—and this post, which is internal to the House, and where one Committee of the House will already have made a decision.

However, one way of meeting the sentiment reflected by my hon. Friend and the hon. Gentleman would be to consider the suggestion from the hon. Member for Hereford and South Herefordshire (Jesse Norman), which is that in place of having the recommendation for the Clerk to go to the Palace via No. 10, it should be done on a Loyal Address—in other words, directly. Were there to be another near train-wreck of an appointment—if I may put it delicately in that way—there would be an opportunity for the House, by the process of it having to come before the House, to have second thoughts. In most cases, of course, it would go off without any question. I have had these conversations privately with the hon. Gentlemen.

I used to have to sign loads of warrants addressed to Her Majesty for judicial and ecclesiastical appointments which then had to go off to No. 10. In the end I managed to persuade this House that we could bypass No. 10 because I think the Prime Minister of the day—I will not say which one it was—thought he had other, rather more pressing matters on his plate than signing a great pile of warrants, and I could see his point. I think the House ought to consider that.