Palace of Westminster: Restoration and Renewal Debate

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Department: HM Treasury

Palace of Westminster: Restoration and Renewal

Shailesh Vara Excerpts
Wednesday 25th January 2017

(7 years, 10 months ago)

Westminster Hall
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Chris Bryant Portrait Chris Bryant
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I will not give way. I am sure the hon. Gentleman will catch your eye later, Mr Flello—you have very good eyesight and, well, you have your glasses on anyway.

Another point for hon. Members to think hard about is that if we were sitting down at the other end of the building, the 240 or so MPs who now have offices in the historic Palace would by then have their offices in Richmond House—quite some distance from where people intend us to sit. Most importantly, however, we would either have to walk along a corridor specially created as some kind of bubble for us while work was going on all around, including the removal of asbestos—a risk in itself—or, alternatively, walk outside along the pavement; 650 or 600 MPs walking in a hurry along the pavement at known times of day for votes is a security risk that I would not be prepared to countenance.

For all such reasons, that proposal simply does not wash. The truth is that the Chambers are not hermetically sealed units. They rely, as my hon. Friend the Member for Alyn and Deeside said, on services from the rest of the building. Both the Chambers themselves will have to be closed, and the cost of temporary mechanical and electrical services would run into millions of unnecessary taxpayer pounds.

People also ask, “What about Westminster Hall?” Personally, I have a romantic attachment to Westminster Hall: I like the idea of sitting in the Hall where Richard II was removed as King by Henry IV in the shortest ever Parliament, which lasted one day. We could sit back and take inspiration from the angels carved on the ceiling. The Committee looked at the suggestion very seriously, but the problem is that the floor is not as solid as it looks. It is not sitting on the ground; the flagstones actually sit on a pillared grid, which simply could not take the weight of the large construction necessary to sit 600 or 650 MPs, members of the press and public, and all the other paraphernalia of the Chamber. In addition, such a Chamber would have to be heated, and all the advice we had from restorers and people who know about ancient buildings and historic wooden artefacts is that that would pose a risk to the ceiling that simply could not be countenanced. The roof of Westminster Hall is one of the most beautiful and precious things on the whole parliamentary estate, so that is not an option.

Some people have said—one Conservative Member present has said this to me several times: “You did not really look at the option of our staying in at all.” Yes, I am looking at the hon. Gentleman—or he is looking at me—

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Shailesh Vara Portrait Mr Shailesh Vara (North West Cambridgeshire) (Con)
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I wish to take issue with the argument in the Joint Committee’s report that it would cost £3.5 billion to decant and that that would be the cheaper option. I start by pointing to the opening page of the summary, which says in the third paragraph:

“However, there is significantly more work to be done by professionals before budgets can be set, buildings are vacated and works can commence.”

I deeply regret that that caveat is not being emphasised a lot more—indeed, it has not been mentioned by anyone in today’s debate.

It is disingenuous to say that leaving here would cost £3.5 billion and be the cheaper option. That figure does not take account of the fact that some £600 million would be spent until 2023 when the full decant would take place. Nor does it take account of the fact that if we fully decant, there would be rental costs for the offices and space that would be needed outside this building. The figure does not show up in the costing on page 39 of the report. It simply says that professional advice will be required. We are talking about millions and millions of pounds of rental costs that are not accounted for.

There is an issue with security costs. If the peers go to the QEII centre, that will mean additional security. A full decant would require additional space outside the Palace of Westminster. Those security costs have not been factored in either—again, it would be serious millions of pounds. The tourism industry was mentioned. If the QEII building closed, that would affect the conferences normally held there, which attract significant sums of money to the local economy; I have heard that it would affect our local economy by some £200 million. Nearby hotels are worried because they will not be able to let out their rooms to people who go to conferences at the centre. There will be an impact on restaurants and taxis.

The hon. Member for Rhondda (Chris Bryant) said that if there were a rolling programme of works and we stayed here, that would be £900 million more expensive. I gently suggest that my figures come to a whole lot more than £900 million; had they been factored into the calculations in the report, we might be having a different debate.

The argument that we must move out is simply not the only one in town. Work is being done at Buckingham Palace. It has 100 miles of cables and 20 miles of pipes, yet the work will carry on while Her Majesty stays there with the entire royal household. Work will be done in segments. During the fire at Windsor Castle in 2002, 20% of it was burned down, yet Her Majesty and the royal household continued to operate from there. They did not have to move out.

As for the advice sought from experts, let us be clear: one does not need to be an expert to work out that the work will be easier if everyone leaves the place of work. That is a given, but the point is that this is no ordinary building. It is the seat of Government, and we have to take account of that fact. At the time of Brexit, when we seek to make new friends overseas and secure favourable trade agreements, do we really want to convey the image of a temporary building in the courtyard of another Government building? We have to take into account the soft-sell power of the iconic building that is Parliament. I put it gently to hon. Members that the selling power of this building far exceeds any figures for costs that have been produced here. As we have been told, it is an iconic building.

Furthermore, at a time of austerity when we are writing to our constituents and saying that they cannot have an additional few pounds for whatever they are seeking money for, do we really want to go to the public and say that, nevertheless, we want to spend billions of pounds on our place of work? I do not think that in the present economic climate that is sustainable.

The question that should have been put to the experts is not what the best way of working from here is, because the best answer is obviously that we should all clear out. What they should have been told was, “This is Parliament—the seat of Government. Go away and work out a plan for how we can continue to operate on this eight-acre site.” I can guarantee that they would have come up with a proposal had they been given that option.

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Michael Ellis Portrait Michael Ellis
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We need to cover the issue that the ongoing maintenance cost the taxpayer £50 million last year. All told, some 40% of the mechanical and engineering systems will be at an unacceptably high risk of failure by 2020, and five years after that the figure will have risen to 50%. In other words, we are just eight years away from being in a situation in which half the Palace’s systems are so dilapidated that they could cause a major emergency that stops Parliament’s work and forces our evacuation without warning, perhaps overnight. For all those reasons, it is clear that we cannot pass the buck any longer.

Shailesh Vara Portrait Mr Vara
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The Minister has emphasised how urgent it is that we get the work done. Does he therefore agree that the work should commence immediately, rather than waiting for six years, as page 91 of the report says? It states that a full decant will take place in six years’ time.

Michael Ellis Portrait Michael Ellis
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It is fair to point out, as was mentioned, that a great deal of work is ongoing while Parliament sits, including, for example, repairs to the roof and other essential items of maintenance. That is a monumental undertaking, and a great deal of work undoubtedly needs to be done in order to set that into train.

We have heard what the Joint Committee has recommended: that a full decant is the cheapest, quickest and lowest-risk option. It also proposes the establishment of a delivery authority, overseen by a sponsor board, which would first be established in shadow form to draw up budgets and a business case, before a final vote in both Houses to approve the plans.

The Government have undertaken to provide time for a full debate and vote in due course on the Committee’s report. The hon. Member for Rhondda will recollect from his duties in this place that time is always at a premium for business managers, particularly so the moment.

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Michael Ellis Portrait Michael Ellis
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My hon. Friend knows that time is always a precious commodity in this House. Business managers are always under time pressure, now more than ever, but the matter is being given very careful consideration.

Shailesh Vara Portrait Mr Vara
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The Minister is being generous with his limited time. He said that alternative proposals are being considered by officials. Given that the report took a considerable amount of time to produce, has huge caveats in it and says that professional advice is still needed for costing purposes, I put on record that, whatever decisions the officials come to, it is assumed that they will have the usual caveats and that we will not be able to rely on those figures to the extent that it is hoped.

Michael Ellis Portrait Michael Ellis
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Once an initial decision has been taken in response to the Joint Committee’s recommendations, focus will shift to the details of developing plans for how the work should be done. However, it is hard for detailed scrutiny to take place now because line-by-line budgets have not been prepared, and cannot be yet. That can happen only when the delivery authority has completed its necessary preparation work.

The Joint Committee was clear that it could not provide detailed budgets. Only establishing a shadow delivery authority will allow a true picture of the costs to emerge, before Members of Parliament and peers of the realm have the final say. The Committee’s headline figures for the cost of the three options under consideration range from £3.52 billion to £5.67 billion—a difference of £2.15 billion—but everyone following the debate should be clear that those are preliminary estimates and not guaranteed costs.

Whatever the differences in approach, clearly no one disputes that we must act to preserve this historic building. On that we have no choice. As part of a UNESCO world heritage site, the Palace simply cannot be allowed to fall into terminal disrepair. Doing nothing is not an option. What happens is up to the House, and ultimately it will be for Members of both Houses to decide on the right way forward. The large sums of money involved and the importance of this building to our nation’s prestige mean great care is needed when weighing up the options.

It is clear from the speeches we have heard that the responsibility of getting the decision right as custodians of this place weighs heavily on all Members of the House. The Government, for our part, will work with Parliament to ensure that whatever is decided is delivered in the right way to preserve this place for the country and for future generations.