Parliamentary Commission for Administration and Health Service Commissioner for England

Peter Bottomley Excerpts

Monday 18th July 2011 Commons Chamber

[Sir Peter Bottomley (Worthing West) (Con)]

The hon. Member for North Durham (Mr Jones) has spoken in a way that has interested the House. If I say that he has managed to say in 23 minutes what he might have said in three, I hope he will take that as a compliment.

The essential point of the second motion is that the pay of the parliamentary ombudsman should be set in advance. There is a lack of clarity about whether that will be done before the appointment is advertised. Today, if the motion goes through, I shall be voting for the first time in 36 years for something that I think is seriously wrong. It is wrong to advertise a post and then negotiate with the person who is chosen and reduce the pay after the appointment has been offered. That is wrong. One can understand why the Government might have done it, but that does not make it right. Controlling spending is necessary, but to do it after an appointment has been offered is wrong.

I could say that many more times, but the fact is that this decision is one thing the House has done that is equivalent to what happened when Elizabeth Filkin was chosen to be the Parliamentary Commissioner for Standards. Her number of days was reduced, her pay was reduced, her appointment should have been renewed because in those days it was not a non-renewable appointment, and in her last week this House agreed to pay her the £30,000 she had been underpaid during her years of service. If I may make a remark about a former holder of the office of Chair, when the former Speaker said in her memoirs that she did not approve of the commissioner or of some action, I thought that was wrong as well.

[Mr Jenkin]

I feel compelled to intervene on my hon. Friend because I do not think it is accurate to say that the Government cut the salary after the post had been advertised. They notified the House of Commons that they did not wish to pay as much as the existing salary and the recruitment panel was left in the invidious position of wondering how to advertise the post. The strong advice we received was that we should advertise a fixed salary, but the Government would not allow us to do so. We advertised based on the existing salary, but that was qualified and the candidates were informed during the recruitment process that it was subject to alteration. It was not a satisfactory process, however, so the spirit of what my hon. Friend is saying is absolutely right.

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[Sir Peter Bottomley]

I am grateful to my hon. Friend and I congratulate him and the Government business managers on finding a motion that could get through the House. The essential point remains however—I think I am right in saying this—that the salary negotiation took place after the person had been chosen, and that is wrong. Although I was not part of the process, I understand that the candidates were strong and that almost any of those who were well-qualified to be chosen could probably have decided to take the job at no pay if it had been advertised at no pay because it is an important position of public service to the people of this country and, indirectly, to improve the government of the country. The essential point is that we should never again start negotiating with someone who has been offered a job in competition by saying, “At what level will you do it?”

My hon. Friend the Member for Harwich and North Essex (Mr Jenkin) referred to the UK Statistics Authority, whose report was published today. The report rightly says that its aims, with the Office for National Statistics, are respect—I do not think that aim has been met in this case—and working together to make a difference, which is true. Another of its aims is being proud of what has been done and always trying to do it better. In terms of trying to do things better I am not sure that, without a framework, it is correct for the Prime Minister and the Chairman of the Public Accounts Committee to decide rates of pay. We need to have a framework and then we can say, “This is what it would appear to be—it should be up or down on that.”

I ought to have started by saying that I approve of the selection of Dame Julie Mellor and that I would have approved of the selection of any of those on the shortlist because I agree with my hon. Friend the Member for Harwich and North Essex that any of those who got to the shortlist could have been appointed with honour and distinction. However, let me make a less important point. Motion 9, which is being taken with the lead motion, refers to the rate of pay which is

“subject to (a) any relevant increase for Permanent Secretaries recommended by the Senior Salaries Review Body and (b) after the end of the current pay freeze, 1 per cent. annual uprating in lieu of performance pay”,

and it goes on to things we have discussed already. I do not think those conditions are right. We ought to say that the rate of pay for someone holding that office should not change at all, as with Members of Parliament between general elections. We ought to say that, although there might be some inflation or even deflation, the rate of pay for someone holding a position that goes from appointment to a point at the end of service, or, as for us, from one general election to another, should remain the same. I do not think that 1% in lieu of performance pay dignifies the office, is necessary or makes sense, but that is not to be amended.

[Mr Jenkin]

I share my hon. Friend’s concern about this but the problem is the legislation, which allows the salary to be determined only in relation to that of a permanent secretary. That is why I invited my hon. Friend the Minister to give an assurance that we will, at the earliest opportunity I hope, update the legislation.

[Sir Peter Bottomley]

I shall conclude my remarks by joining in the praise for Ann Abraham and the way she has fulfilled the job, and I look forward with anticipation to Dame Julie Mellor’s doing the same.

I do not think anyone in the House thinks it was the Minister’s idea to get us to this position, although he might have helped us out of a difficulty. I hope that he will say to ministerial colleagues that it would be better to get my hon. Friend the Member for Harwich and North Essex, as Chairman of the Public Administration Committee, and others together to create a framework so that we avoid any possibility of dropping ourselves into such a mess again. I leave aside the fact that Dame Julie Mellor is female and that the House has a record of saying to people, “We’re going to change the terms of the job and a woman will do it.” There are other times when I may be more explicit about such things, but there is an opportunity to say here, with approval for Dame Julie Mellor and disapproval for the way we got ourselves into this fix, that we expect the Government to take on their responsibility and, with others, find a way of resolving it for the future.

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[Mr Hurd]

There have been sincere tributes from both sides of the House to the work of Ann Abraham, and it is clear that she has made an outstanding contribution. Her legacy will be a valuable and lasting one, not least, as my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) said, in relation to Equitable Life.

I am delighted that there is such consensus about the qualities of Ann Abraham’s successor. Dame Julie Mellor’s record as chairman of the Equal Opportunities Commission demonstrates that she is able to perform well in a high- profile and sometimes controversial role, and is prepared to assert her independence and authority when required— all crucial traits, I am sure we agree, for a successful ombudsman.

A number of Members have made points about the remuneration arrangements for the role. The Government make no apology for subjecting highly paid public sector roles, particularly those paying more than the Prime Minister’s salary, to a strict policy of scrutiny and pay restraint, and do not believe that this undermines the status and independence of the ombudsman role. As set out in the motion, Dame Julie has agreed to accept an annual salary of £152,000, which will be subject to the current public sector pay freeze. Thereafter, the remuneration will be uprated in line with the text of the motion.

[Sir Peter Bottomley]

I do not make this as a personal remark. Could my hon. Friend consider, with his colleagues, making a written ministerial statement any time the Government next intend to negotiate the pay after a candidate has been chosen?

[Mr Hurd]

That leads me on to my next remark. The Government have reviewed the way the process was conducted and have been quick to accept the Public Administration Committee’s recommendation that for future appointments to the role, the remuneration arrangements should be agreed between the Prime Minister and the Chairman of that Committee before the start of the recruitment process. This commitment is reflected clearly in the Government’s motion.

My hon. Friend has raised the possibility of using any legislation coming out of the Government’s recently published open public services White Paper to enshrine these new arrangements in statute. As he knows, the Government’s proposals in relation to the ombudsmen set out in that White Paper are at an exploratory stage, and it is too early to know what may be required in terms of legislative reform, but the crucial point is that the Government are committed to these new arrangements going forward and that commitment is clear from the terms of the motion. Subject to the outcome of that debate, should a suitable legislative opportunity arise in the future, the Government will give serious consideration to enshrining the new appointment and remuneration arrangements in statute.

[Mr Hurd]

I am grateful to hon. Members for their contributions to the debate about this important role. I commend the motions to the House.

[Sir Peter Bottomley]

On a point of order, Mr Speaker. Would it be possible for the Chair of the Public Administration Committee to make the point that he was hoping to make?

[Mr Speaker]

No.

Question put and agreed to.

Resolved,

That an humble Address be presented to Her Majesty, praying that Her Majesty will appoint Dame Julie Mellor to the offices of Parliamentary Commissioner for Administration and Health Service Commissioner for England.

Parliamentary Commissioner for Administration and Health Service Commissioner for England (Remuneration)

Resolved,

That, in the opinion of this House, the salary paid to the Parliamentary Commissioner for Administration and Health Service Commissioner for England should be £152,000 a year, a sum within the range of salaries payable to Permanent Secretaries in the civil service as required by section 2(2) of the Parliamentary Commissioner Act 1967, as amended by the Parliamentary and other Pensions and Salaries Act 1976; and that this should be subject to (a) any relevant increase for Permanent Secretaries recommended by the Senior Salaries Review Body and (b) after the end of the current pay freeze, 1 per cent. annual uprating in lieu of performance pay; and considers that in future, and subject always to the statutory requirements, the remuneration of the Parliamentary Commissioner for Administration and Health Service Commissioner for England should be agreed by the Prime Minister and the Chair of the Public Administration Select Committee in advance of the recruitment process, and reported to the House, prior to the House being invited to agree to an humble Address on such an appointment.—(Mr Hurd.)