Public Administration and Constitutional Affairs committee

Paul Flynn Excerpts

Thursday 4th February 2016 Commons Chamber

[Mr Jenkin]

I have heard everything that my hon. Friend has said. The report speaks for itself. I hope very much that the Government will give a full and clear explanation in response to the report. I am sure that they will. I have never doubted the integrity of the two Ministers who signed the letter of direction at all. We must wait for the Government’s response. In the end, I am not responsible for the Government’s response.

[Paul Flynn (Newport West) (Lab)]

May I add the name of Harriet Sergeant to that of Miles Goslett as she, too, exposed this fraud? This was British journalism at its very best and the report shows our Select Committees at their very best in the way that it exposes the waste, extravagance and delusions of this sad episode, which robbed far better charities of vital funds to help children in distress.

Is it not vital that the conduct of the Ministers who ignored the advice and wrote the letter of direction is considered by the adviser on Ministers’ interests? Is it not crucial that we get to the nub of this terrible waste? The buck stops with the Prime Minister. We should have broken the taboo that exists—I would like the Chairman to make this suggestion. As this charity was linked in every way with the big society stunt that was being run by the Prime Minister at the time, the person who should have given evidence to us was the Prime Minister.

This matter will not be put to rest until the Prime Minister explains why he set up what was virtually a slush fund, by getting funds moved from the Department for Education, where Ministers might have stopped this, to the Cabinet Office, from where the money was going out. That was wrong, it was damaging to many of the children who were allegedly being helped by Kids Company and it was very damaging to those charities that could prove the worth of what they were doing through statements and evidence, which Kids Company never did. Should we not look forward to this never happening again and to moneys being moved out of the Cabinet Office’s control?

[Mr Jenkin]

It is in the nature of politics that some people will always be readier to pin the blame and extract some action as a result. I hope that I am conducting the Committee in a way that all its members support. I think that we get so much more from witnesses and that our reports have more authority if we do not try to pin blame on individuals, but the House will have heard what the hon. Gentleman said.

The hon. Gentleman touched on the important issue of why youth funding was moved from the Department for Education to the Cabinet Office. We really did not get an explanation of that, except for a denial that it had anything to do with wanting to be able to continue funding Kids Company, which the Department for Education had clearly become reluctant to do. One of our conclusions is that Departments should be responsible for allocating funding to outside bodies, rather than the Cabinet Office, because it is, by its nature, too close to the political centre of power in Government and a suspicion can be created, at the least, that decisions are being influenced.

We made a recommendation about the LIBOR fund, which was set up by the Chancellor of the Exchequer to support military charities. It is clearly a very worthwhile initiative, but any possibility that it could be construed as a fund under the personal control of the Chancellor of the Exchequer should be very clearly checked.