Public Services (Social Enterprise and Social Value) Bill
Richard Fuller Excerpts(14 years, 1 month ago)
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Richard Fuller (Bedford) (Con)
It is my great pleasure to follow my hon. Friend the Member for West Worcestershire (Harriett Baldwin) in supporting my hon. Friend the Member for Warwick and Leamington (Chris White) and his Bill. I also pay tribute to the right hon. Member for Salford and Eccles (Hazel Blears), who spoke about the Bill with her characteristic upbeat breeziness. She was absolutely right to do so.
The Bill has three merits. First, it is a recognition of the coming of age of an institutional form. Secondly, it is a celebration of entrepreneurship. Thirdly, we must understand that the Bill is an enabler of very positive things that can be done to promote the support and funding of our social goods. It is therefore an absolute pleasure to support my hon. Friend the Member for Warwick and Leamington.
On the point about the history of institutions, I shall avoid too much philosophical musing. [Interruption.] Well, I shall do a little. Each of us as an individual has motivations: things that inspire us and push us to achieve our goals and objectives in life. But most of us are very reliant on institutions to enable us to achieve our goals. That may be our local Church, a programme run by a local council, a trade union that is there to defend us and motivate us in a particular way, a small business that we work for or an entrepreneurial leader whom we follow in order to create our own business. Historically, we have had to give something up in return—our motivations have to be shaped by the motivations of that institutional form. In the military, people cannot make things up as they go along; they have to follow orders to achieve their objectives. Similarly, in corporations, there are certain guidelines intended to achieve shareholder value. I am quite doctrinaire about this. I think that it is important that institutions are clear on their purpose, which is why I welcome and celebrate the growth of social enterprises as a new institutional form.
Social enterprises overcome some of the concerns about trying to make for-profit companies adhere to non-commercial principles. I remember many years ago arguing with Professor Amitai Etzioni about the role of corporate and other organisations. I have not changed my opinion on that over the years. Subsequently we saw the growth of cause-related marketing and other factors that were trying to find a more creative way for for-profit companies to pursue their social objectives other than through traditional donations and sponsorships. Although those have their place, there has always been a gap for a new form of institution to play a role—one that social enterprises have come to play most forcefully over the last 20 or so years. That has helped in that our motivations can now have a different set of stabilisers rather than the straightforward ones of the past.
The Bill is important because it recognises that role. Those of us who were here in the debate about growth last week will remember listening to the hon. Member for Brighton, Pavilion (Caroline Lucas) talking about how we can recognise different manifestations of growth and get beyond a pure statistic of GDP growth. That is another reason why these new forms are very important.
I said that this was a coming of age—kind of a 21st birthday—mainly because it was about 21 years ago that I was trying to understand what we could do after the changes wrought both in this country under a Conservative Government and in the United States under President Reagan’s Administration which had identified, certainly for Conservatives, the weakness in government, as an institution, in providing the social goods that many of us as individuals want. I am a firm believer that each of us has a view of fairness, and that we aggregate those views to come up with a collective view of what is fair, or what fairness represents for us as a society. We saw in the 1980s that people had misgivings about the weaknesses of the state and government in delivering, effectively and efficiently, those social goods and services that we wanted.
For a period, for many of us there was a lack of balance. We were not enabling the provision of a sufficient number of social goods and services, not because we did not want them, but because we did not believe in the ability of the government structure to provide them on our behalf. That institutional failure has been addressed over the intervening 20 years, and I again pay tribute to the work of the last Labour Government in identifying that weakness and looking to stimulate alternative ways of providing those goods and services.
Entrepreneurship is, to me, one of the most wonderful motivations that someone can have in life: one has a vision, a mission and an idea, and one wants to create and do something for society. That is extremely important. I am a firm believer in small businesses. I know that in my own community of Bedford and Kempston we rely on small businesses to create prosperity and jobs for the future. But entrepreneurship does not have to come from a profit motive; it can come from a social motive. The inspiration for a doctor is not making a lot of money; it is making people better. The inspiration for many entrepreneurs may not be a desire to maximise their personal wealth; it may well be that they want to have an impact in their local community. For organisations such as the Federation of Small Businesses we need to embrace that sense of different motivations that enable people to say, “Here’s my creativity. Here’s my inspiration.” I believe that the Bill will enable us to do that.
Steve Baker
I associate myself closely with my hon. Friend’s comments, but I remain confused about why we need to encode this creative search to produce value for others in national and local plans.
Richard Fuller
I will try to address my hon. Friend’s point, which I heard earlier and think is a good one, but let us be clear that this is not a doctrinaire or Stalinist interpretation—“Thou shalt do this”. Rather it would provide different measures that local authorities can take into account. There is a prevailing assumption that local authorities and others look only at least cost, but that partly works against what motivates Government Members, who want to promote entrepreneurship. It is not what we want to see. I will talk later about a couple of those things. I hope that he understands that this is not—I would not support such a thing—some fearful rolling forward of the state. It is a new and better way of providing social goods and services that will not rely on the state and is in part a rolling back of state bureaucracy.
My hon. Friend the Member for Wycombe (Steve Baker) made a point about social value and profit. It is worth recognising one of the severe, if not unintended, consequences of current procurement processes—the focus on lowest cost. We should always try to do better for less, but as the right hon. Member for Salford and Eccles and others mentioned, that is not necessarily the same thing as the pursuit of lowest cost. As we know from our constituencies, local services matter to local people. It is quite hard always to motivate people on the issue of lowering their council tax, but we can motivate them if we decide to close a local service.
There is a boundary here. If we are honest and true to our constituents, we should wish for something more than price-only considerations in the procurement of our local services. That matters, because if we pursue, as we have done, a low-cost approach, the surplus in local communities will get exported, and we will see the growth of national organisations that will take that surplus, which could go to a local small business or local social enterprise, and export it to national shareholders. That is not necessarily a bad thing, but we need to get back some balance, and the Bill would do a good job in providing that balance to local commissioners in the procurement of local services.
The Bill is extremely timely. Many Members have mentioned some of the impacts of the reductions in public expenditure that are necessary in order to get it back in line with our ability to raise money. It is timely because there are a lot of good local services and local assets that could be transferred to social enterprises. All Members, on both sides of the House, have a vested interest in ensuring that we do that as rapidly as possible, and the passage of the Bill today would assist in doing that.
Hazel Blears
The hon. Gentleman says that there are many assets that could be transferred to social enterprises. Does he agree, however, that it is important to protect those public assets, so that they do not simply end up on the fast track to private ownership as a result of this process?
Richard Fuller
The right hon. Lady makes a good point, although I would not be quite so averse to assets held in the public domain transferring to private sector companies. Part of the spirit of the Bill is to try to break down the hostility between the two. There are many examples of local services provided by for-profit companies that do a fantastic and excellent job. My concern is that as we try to balance our books, good services might get lost in the mix. In that mix, we need to have for-profit companies, good councils considering whether to continue with certain services as they make tough decisions, and funded social enterprises available to provide a third alternative for local services in the future.
Hazel Blears
Neither am I hostile to entrepreneurial companies, which make a tremendous contribution to our economy. However, when public assets are transferred to social enterprises, which might be the right thing to do, there ought to be some element of democratic governance to ensure, first, that local people can have a say and, secondly, that we have in place a mechanism that does not simply result in assets for which the public have paid being transferred directly to the private sector and being used to make private profits that are not then reinvested in our community services.
Richard Fuller
The right hon. Lady is much more familiar with, and expert in, this area than me, but there is a difference between mechanism and consideration in local accountability. We have the mechanism. It consists of our local councils and our democratically elected councillors, who are there to make these judgments. However, we want to enable them—and the Bill would do this—to have consideration of the factors and features that she mentions, rather than the sole consideration of lowest cost, on which they often focus their efforts and attention, particularly at times of budget concerns.
Dr Thérèse Coffey
Following on from the intervention by the right hon. Member for Salford and Eccles (Hazel Blears), one of the concerns expressed to me by some of my constituents is not so much that profits could be made out of public assets, but about how, if companies fail, which they sometimes do—it is one of the essences of the market—those assets will be recovered, so that services do not go away or get stripped. That needs some consideration in Committee.
Richard Fuller
My hon. Friend makes a good point, and I agree that we want the opportunity to discuss these issues in Committee.
Where will the Bill lead? The right hon. Member for Salford and Eccles—I apologise for referring to her again—talked about this being a relatively modest-sounding Bill that could have significant consequences. From my short time looking at politics, that often seems to be the way. The Conservative Government in the 1980s, when they started with their approach to privatisation, were probably not aware of what a significant wave of change they were unleashing and that it would be a model around the world. In a different way, this Bill and the additional measures that I hope the Government will introduce, building on the work of previous Governments, could have the same significant impact.
To make that happen, however, we need a couple of additional efforts. First, we need to recognise that many social enterprises and charities are institutionally small and consist of few people—perhaps 10 or 20—a lot of whom might be volunteers. They might have a lot of spirit, but the procurement process will be quite complicated for them, so we need to enable them to come together to procure efficiently and compete effectively with the very efficient and knowledgeable for-profit procurement companies. I hope that the Minister will, either today or in the months ahead, come forward with suggestions for how that can be better enabled, so that the window opened by the Bill can be taken advantage of by these social enterprises.
Mr Chope
Does my hon. Friend agree that it is equally, if not more important that small for-profit businesses run by local entrepreneurs should be able to compete for these contracts? At the moment, only 16% of public contracts are taken by small businesses. Should we not be concentrating on that as well?
Richard Fuller
My hon. Friend makes an excellent point. One of the consequences of the Bill would be that local and national Government would have to start thinking more locally about where they procure services. I, for one, believe that a local business making a local profit that is retained in its local community is of enormous social value to its local community. At the moment, as I was saying earlier, some of that profit is being exported. The very fact of passing the Bill would assist social enterprise, but would also help local businesses that do so much in their local community. That is why I welcome it so much.
The Bill would also have an impact on the financing of our social enterprises. Many right hon. and hon. Members will be familiar with the social finance work and the initiative in Cambridge with the St Giles Trust looking at ways of constructing the support for financing social services and social goods in a way that is more oriented to successful outcomes and takes away from taxpayers the one-way, pay-it-whatever-the-outcome approach to social services and social goods. That is another step that we need to take. This Bill is an enabler down the path of providing a comprehensive and different way for each of us as individuals, with our motivations and our sense of fairness, to be able to rely on a different institutional form—the social enterprise—to achieve what we all believe would be in the best interests of our country and our people. I commend my hon. Friend the Member for Warwick and Leamington and the Bill.
Mr Sam Gyimah (East Surrey) (Con)
Specifically in the context of the current debate, I will definitely not be repeating “lower taxes” after my hon. Friend the Member for Wycombe (Steve Baker).
I did not intend to speak today, but having listened to the debate so far, I would like to offer a few words. The first point that has arisen is about our values. I remember the Prime Minister saying when he started out as the Leader of the Opposition that we Conservatives believe that there is such a thing as society, but that it is not the same thing as the state. If this Bill tries to achieve anything, it is to address the reality that there are many organisations that fulfil functions that are of social value. They do not replace the state, but their role must be recognised and promoted as we seek to transform the nature and role of the state in this country. As I think that is a worthy aim, I support the Bill.
I do not wish to follow the lead of some of the previous speeches by playing philosophical ping-pong, but we can all point to examples in our constituencies of social enterprises that are doing a great job. That needs to be recognised, and such enterprises must be promoted. In debating the Bill, we also need to think about the likely transformative effects that can be achieved by new organisations delivering services that we currently think the state ought to deliver. The Minister for Further Education, Skills and Lifelong Learning has recently walked into the Chamber. A lot is happening within higher education to enable people to understand the differences between universities so they can make informed decisions. What are the employment statistics for graduates of different universities? What are the staff contact ratios? What is the nature of the student experience? Traditionally, we would think that some state organisation should provide all of that information to prospective students. The Bill, however, would enable that data to be provided to social enterprises, so that an organisation could be created that delivers the information, without the state having to build it from scratch, which is often costly and does not always work.
An organisation called the New Philanthropy Capital has done that for the charity sector. It recognised that a lot of people did not understand on what the money they donate to charity was spent, so it built an organisation. It is a not-for-profit company that is servicing the charity sector in that way. As we consider the Bill, it is right that we champion such organisations in our constituencies that are doing a great job. There are a lot of them in my constituency of East Surrey, many of which operate under the auspices of Tandridge Voluntary Service Council. We must think about how such organisations can transform the way Government do business.
My hon. Friend the Member for Ipswich (Ben Gummer) highlighted the issue of definition, which has so far been a grey area in the debate. It is not clear under clause 1(5)(b) whether someone setting up a private enterprise that is supposed to reward its shareholders can operate in this space and whether its function is the same as that of a business that is totally dedicated to social good. For me, a social enterprise should not be about profits; it should be purely about generating value for the community. Otherwise, we risk small businesses seeing that they can get subsidies—can get what is effectively equity capital—from the Government by servicing the Government. If we do that, we will miss the main purpose of the Bill. Its main purpose is not to provide equity capital for small businesses that want to sell some services back to the Government and then line the pockets of their shareholders. Its purpose is to get services delivered for communities.
Richard Fuller
My hon. Friend is making some very good points. However, does he accept that one consequence of the Bill is that local authorities will spend more time looking at local businesses, which will have the welcome knock-on effect of supporting local for-profit businesses? That might not be the direct intention of the Bill, but it is a very valuable secondary benefit that local small businesses will also come to benefit.
Mr Gyimah
I agree that there are local businesses that fulfil a social good, but we do not want people just to decide, “You know what, I want to set up a business, and because 20% of it is for servicing the local authority, I will be supported.” I strongly believe that we must draw a distinction between for-profit businesses whose main purpose is rewarding shareholders and businesses that are delivering social goods.
Richard Fuller
One of the objectives we hope to achieve through the Bill will result from its focus on local social enterprises. By its very nature, that will weaken the default position whereby contracts go to large, national organisations, with their inbuilt advantages in procurement. Does my hon. Friend agree with that point?
Mr Chope
I do. One of the amendments to clause 2 that I would have suggested is that social enterprises should be defined as small businesses with those objectives, because of the danger of ending up with some very large social enterprises that are, in many respects, not dissimilar from large public limited companies.
Mr Chope
I am grateful to my hon. Friend, who made a powerful speech on the same theme.
People going into public procurement often say, “We’ve got to do it for the long term, with a five-year, a seven-year, or an even longer contract period.” If a relatively small and untested organisation is bidding, it will be a very big risk for it to sign up to a seven-year contract. Procuring on the basis of a one-year contract gives new organisations on the block much more of an opportunity to show their worth, and if they make a Horlicks of it after a year, they will not expect to be invited to re-tender. Some long contracts have been particularly damaging to the interests of small and social enterprises. Minimising risk for the procurer has made it much more difficult for new entrants to take on such contracts.
I hope that the FSB will be encouraged by the attitude of the Government. We are all proud when we have businesses in our local communities that flourish, no more so than those which start up with only half a dozen people, or even one or two, and then become national enterprises, perhaps ultimately getting a listing on the stock exchange.
I was worried that my hon. Friend the Member for Warwick and Leamington suggested that businesses that are in it for profit are at odds with those that are in it to produce good for society. In my constituency, some of the businesses that have been the most successful in the marketplace have made profits that they have been able to use to help to support local activities in the community. For example, one of the most successful companies in this country, Tesco, puts a lot of money back into the community every year by enabling people to get vouchers that are then used to buy IT equipment, and other equipment, for schools. Every year for the past 10 years, I have had the privilege of presenting some of that equipment to the schools in my constituency because parents, teachers and supporters of those schools have been able to get those vouchers and then convert them into important and useful goods.
Richard Fuller
My hon. Friend makes an excellent point, and I have shared his experience of Tesco at one of the two branches in my constituency. He mentioned profit, which is often put in the same vein as people being rich. Actually, profit is what people reinvest in their business so that they can provide better services in their community. For social enterprises and charities, the ability to earn a surplus is important. Often, they find that they do not have enough of an earnings margin from local contracts to be able to reinvest in local projects, so that they can continue to provide services for five or seven years. Does he recognise that we need to go beyond the crass definitions of profit being bad and social enterprise good, and instead concentrate on the services that local businesses and social enterprises provide?
Mr Chope
Absolutely, and that is very much the theme behind the submission from the Federation of Small Businesses on the Bill, which a number of hon. Members will have received. It makes the point:
“The Bill describes social enterprises as businesses ‘carried on primarily for a purpose that promotes or improves social or environmental well-being’. While such organisations are undeniably valuable, micro businesses also serve such a function. What sets them apart from social enterprises however is that their primary purpose will be to make a profit and remain in business.”
That is the important part—remaining in business. They cannot do that unless they make a profit, as they are often unable to raise capital. That was the problem with the charitable trust that I mentioned earlier. It was not able to reinvest in the leisure centre, which as a result became rather dowdy and did not meet the needs of the customers.
Oral Answers to Questions
Richard Fuller Excerpts(14 years, 2 months ago)
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Mr Hurd
The cost of the pilots will be revealed as a result of the spending review. We are committed to two years of pilots to test a range of approaches to delivering the service, which will help us to identify the most cost-effective way forward. We will have a clear idea of the likely costs of a wider roll-out of the national citizen service once we have evaluated the two-year pilot phase.
Richard Fuller (Bedford) (Con)
5. What assessment he has made of the likely effect on social enterprises of reductions in Government expenditure.
The Minister of State, Cabinet Office (Mr Oliver Letwin)
Of course, social enterprises will be affected by the spending review. However, as part of our structural reform programme, we are bringing forward huge new opportunities for the social enterprises of this country—indeed, for the voluntary and community sector as a whole—to participate in the delivery of public services.
Richard Fuller
I am heartened by my right hon. Friend’s response. He may be aware of the current uncertainty surrounding Foxgloves residential home, which provides respite care for families of children with epilepsy and autism. It is working well with the council to find a solution, but other solutions should come from the community. Are there are any plans to bring forward the use of unclaimed assets so that social enterprises can draw on them to provide alternatives, and the parents at Foxgloves can continue to use it and secure its future?
Mr Letwin
The sort of case that my hon. Friend raises is relevant to our concerns, and we are very focused on that. It is one reason for our introducing the big society bank, which will be partly funded in just the way that he describes, and can, in turn, fund social enterprises and voluntary and community service organisations that require funding in the interim.
Parliamentary Voting System and Constituencies Bill
Richard Fuller Excerpts(14 years, 2 months ago)
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Mr MacNeil
The hon. Lady misses the point which is the way in which the UK is constructed, the way in which finance goes into the media in the UK, and where the media broadcast from and are centralised. Everybody accepts that that issue will dominate.
Richard Fuller (Bedford) (Con)
It is not clear whether the hon. Gentleman’s position is that there should be a referendum on another date, or whether he views the issue as so irrelevant that it should be held on no date. Is it no date or a different date?
Mr MacNeil
I have clearly engaged the hon. Gentleman well, because he anticipates my next point. I remind him of what I have said: it is not that the electoral system is unimportant; it is just that it is lower down the hierarchy of needs and importance.
Mr Jenkin
The date of 5 May 2011 is losing friends very quickly.
The Electoral Commission argues that the environment in which voters live may influence voting patterns. Voters in Scotland, Northern Ireland and Wales would be
“subject to more intensive and varied campaigning than the electorate in England (in a nationwide referendum)…Certain parts of the electorate may feel that they are less well informed about the referendum issue than in other parts of the country. Conversely, they may feel that they are not as well informed about the national and/or local elections.”
Those are all reasons why confusion could be generated in a referendum.
Perhaps the most important consideration is broadcasting transparency. The Electoral Commission also recognised that
“the requirement to present balanced reporting of elections and a referendum is an especially difficult issue to manage when holding combined polls. Distinguishing between election and referendum campaign activities will be extremely difficult, if not impossible in some instances…These issues may have a negative effect on voter awareness; it will also make the monitoring of broadcasting (and campaign expenses) more difficult.”
The then BBC chief political adviser said in February 2002 that she had met Helen Liddell, the then Secretary of State for Scotland, and Jack McConnell, the then First Minister, and that she had
“made my views very clear to the politicians and the BBC…it was a bad move…condescending to Scotland, Wales and Northern Ireland…it would put broadcasters in an impossible position”.
It is not difficult to see why. How many parties in the Scottish elections will broadly support changing the voting system? It may be two, three, four or even none. But how many will be on the other side of the argument? How can a programme that has a panel of guests to talk about the election and the referendum possibly be balanced? How can the BBC achieve balance and transparency on the referendum issue at the same time as it does so on the Scottish elections?
Richard Fuller (Bedford) (Con)
I am listening to my hon. Friend’s speech with great interest. He questions the ability of the media to construct a panel in such circumstances. We often say that we want local issues, rather than national issues, to dominate local elections, but the national perspective can be focused very much on a single issue, as in this case, and it is surely not beyond the wit of broadcasters to sort the matter out—including those in the BBC, who are paid considerable sums to do so.
Mr Jenkin
I am merely quoting the former chief political adviser to the BBC who said that it would put broadcasters in an impossible position. My hon. Friend’s argument is with her, not me.
Broadcasters are especially important in referendums and elections. Viewers may not be generally aware of the obligation for broadcasters—unlike newspapers—to provide balanced coverage, but they accord respect to broadcast programmes reflecting that obligation. Using the BBC as a proxy for the centralism of British broadcasting, it is worth reflecting that only 3% of the output across seven BBC networks broadcast to the whole of Britain comes from Scotland, Wales and Northern Ireland, where 17% of the audience live. Those figures may be out of date but that does not invalidate the substance of the point.
Viewers in Scotland will see the AV referendum on the UK news with little or no news of the Scottish election. Coverage of the Scottish elections will therefore be more in the hands of the press, who are not bound by the requirements of balance. This tension in the structure of broadcasting proved politically controversial in April 1995 when the BBC in London scheduled an extended edition of “Panorama” with an interview with the then Prime Minister John Major. Unfortunately, that was only three days before the Scottish elections. After a court action, Lord Abernethy, later backed by Lord Hope, Lord Murray and Lord McCluskey, granted an injunction banning transmission in Scotland so as to ensure fair coverage of the elections there. How would it be possible for any programme about the referendum transmitted in London to be banned in the same way if it were thought that it might distort the coverage of the elections in Scotland?
It goes without saying that the AV referendum will be heavily covered by the broadcasters in London, where there will be no elections at the time—not even local ones. The Ladbroke Grove set will therefore be obsessed with the referendum and not very interested in anything else. I cannot see how a business of the size and complexity of the BBC can balance all these issues so as to provide fair coverage.
The Electoral Commission also mentioned respect for devolved institutions. I was an opponent of devolution, but we now have a Scottish Parliament that reflects the sovereign will of the sovereign Scottish people. I am afraid that the suggestion from my hon. Friend the Member for Milton Keynes South (Iain Stewart)—an English Member, albeit with an impeccable Scottish lineage and a lovely Scottish accent—that we could tell the Scottish Parliament to move its elections, because we are more important, is not a very Unionist sentiment. It is bound to cause exactly the kind of resentment and mistrust between the Westminster Parliament and the Scottish Parliament that surely we want to avoid—so the Scottish nationalists would probably love it.
The Electoral Commission concluded its now famous press release from July 2002 by stating:
“Referendums on fundamental issues of national importance should be considered in isolation”.
As a coda to that account, I shall turn briefly to the arguments advanced by the commission today. It says that it has based its decision to reverse its position on the date on the available research, including from countries where combining referendums with other polls is commonplace. In the US, for example, the big concern about combined elections is that people have so many ballot papers to deal with at a time that they vote in the elections but not in the referendums. That system is therefore not necessarily a guarantee of turnout and the US is not a great model for the good conduct of referendums.
The commission cites the US, Australia, Ireland and several European countries, including Switzerland and Finland. However, the commission has ignored the fact that Australia has compulsory voting, so turnout is hardly an issue. We can therefore dismiss that argument. Finland is an interesting example. I was forwarded an e-mail from Dr Maija Setälä who is a research fellow in the political science department of the university of Turku. She says:
“The UK electoral commission is absolutely wrong; we have had two national referendums: one in 1931 on prohibition law and another one in 1994 on the EU accession. Both were initiated by the parliamentary majority. Both of these referendums were advisory. So, Finland is about as active in using referendums as the UK.”
In fact, we have more experience of using referendums than Finland. For the Electoral Commission even to mention Finland as an example that we should follow, when it has had so little experience of referendums, underlines the lack of quality in its research.
The Electoral Commission paper, which went along with what the Government wanted, reflects a distinct lack of consultation outside the commission until the date was already decided on. The people in the BBC whom I personally addressed on this question said, “Well, we don’t really want to pick a fight with the Government, because we have our own battles to fight with them.” To expect the BBC to weigh in against the Government’s date was perhaps a little optimistic of me, but I had to try. The quality of the commission’s consultation and research has been lacking, which probably reflects the fact that most of its people have changed since 1992. However, the fundamental point about the paper is that it does not address substantively any of the arguments advanced in 2002 in favour of separate polls.
Sadiq Khan
The reason there has been a push for changing the voting system and for MPs being encouraged to try to secure more than half of the electorate is that trust and confidence had been broken by expenses and all the rest of it. The irony is that this shabby deal that the coalition Government have agreed—a fixed-term Parliament, rushing through a referendum on 5 May 2011, the boundary changes, and all the other things—is breaking the trust and confidence that we have been trying to build over the past few weeks and months, yet they do so at their peril. The hon. Member for Harwich and North Essex (Mr Jenkin) referred to his theories, but nobody has yet given the reason why 5 May 2011 should be the date of the referendum. If it is the case that the next election should be fought with 600 seats rather than 650, and with different boundaries—I accept that some hon. Members on the Government Benches hold this view—that can still be achieved, but by having a referendum later than 5 May 2011. What is the reason for the rush?
Richard Fuller
Will the right hon. Gentleman admit that it is somewhat hubristic for Labour Members to talk about the timing of referendums, when we are still waiting for the referendum that they promised when they were in office on European reform? I do not know whether he is a good judge of the timing of referendums, as last time he did not put that referendum in place at all.
Sadiq Khan
I am happy to take as many interventions as possible, but the hon. Gentleman has to grow up. Just grow up: we are having a proper debate about clause 1. As the hon. Member for Aldridge-Brownhills (Mr Shepherd) said, this is really the old politics. Let us debate the merits of clause 1.