Wedgwood Museum

William Cash Excerpts

Tuesday 19th October 2010 Westminster Hall

[Tristram Hunt]

I absolutely agree. As I hope to point out, the interrelationship between the past and the present is enormously important, drawing on history not simply for archaic reasons but as an economic and cultural motor for the city of Stoke-on-Trent and the county of Staffordshire. As my hon. Friend pointed out, the collection is as much commercial as aesthetic. We see in the museum guides to earthenware and creamware, and to jasper and basalt production.

[Mr William Cash (Stone) (Con)]

The hon. Gentleman has only half an hour but, as I said in a message I left in his office, I would be grateful for the opportunity to make a short intervention on the subject. As he well knows, the museum, because of the configuration of boundaries, is actually in my constituency. I just wanted to say a few words.

--- Later in debate ---

[Tristram Hunt]

I thank my hon. Friend for her intervention and wholly concur with her.

The future of the Wedgwood museum collection now rests on a court decision expected in January—though it would be good to have some clarity on dates from the Minister—as to whether the collection is alienable. Former Wedgwood employees, local Stoke and Staffordshire enthusiasts, Wedgwood family members and leading historians, curators, artists and ceramicists are appalled by the situation. Sir Neil Cossons, chairman of the Royal College of Art, puts it well:

“If the court case goes against the museum it will not only be catastrophic for one of the finest museums in the country but blow a hole through all our assumptions about the inalienability of collections held by trusts.”

The case could have major implications for other museum trusts across the UK. Which museum linked to a pension deficit of a local authority, university or company might be in difficulties after a poor judgment?

[Mr Cash]

rose—

[Tristram Hunt]

I ought to give way to the hon. Gentleman, if he wants to intervene.

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[Mr Cash]

If the hon. Gentleman finishes his speech, perhaps I could give a short speech after him.

[Tristram Hunt]

If that is the format, that is okay.

As ever, the Minister has listened attentively. We seek some commitment from the Government that they are doing more than simply watching this car crash take place. As my hon. Friend the Member for Stoke-on-Trent North asked, what are the Government’s plans for the Wedgwood museum if the case goes against it? Do the Government have plans to amend legislation, to ensure that such a crazy outcome never befalls another museum? Will they put pressure on the Pension Protection Fund so that if the case goes against the museum, there will not be a quick-fire sale of historic assets?

The pottery industry of Staffordshire and Stoke-on-Trent is far more than a museum piece, as last week’s Ceramics 2010 exhibition proved. However, the industry values its heritage and continues to draw inspiration from the designs and craftsmanship that the Wedgwood museum embodies. It would be a monstrous act of cultural self-destruction and a betrayal of those very people who have made objects of great beauty from the soils of Staffordshire if the museum was allowed to collapse, and with it a vital component of the meaning and memory of the potteries.

--- Later in debate ---

[Mr William Cash (Stone) (Con)]

I am extremely grateful to the hon. Member for Stoke-on-Trent Central (Tristram Hunt) for allowing me to speak. The previous Member for Stoke-on-Trent Central was Mr Mark Fisher, who was a great friend of mine.

I should like to congratulate the hon. Gentleman on the way in which he has conducted himself in this debate because the issue relates not only to the museum itself but to the whole question of how we address the anomalies that can arise when a piece of legislation unexpectedly hits a museum and our artistic heritage in such an unpredictable and, I believe, unintended manner. It almost provides a reason for contemplating the idea of retrospective legislation. It would be extremely rare to do that, but there are circumstances that can arise, such as money not being available. A court judgment, which no doubt follows the letter of the law, may have an unpredictable result, such as the destruction of something as important as this museum, in my constituency. I should like to pay tribute not only to the hon. Gentleman but to all the other hon. Members here. This is a very important debate, and I want to give the Minister plenty of time in which to reply.

I received a letter from the chairman of the trust a few days ago, for which I am grateful, expressing his concern and saying that the question of future legislation must be discussed with the Government, which we shall do. Let me add that the reference to the anti-slavery movement by the hon. Member for Stoke-on-Trent Central, who is a distinguished historian, touched me because members of my own family were involved. In fact, Samuel Lucas and John Bright no doubt had meetings with the family over it all.

As for the future, we must resolve this matter. This is not just an aberration; it is something that must be resolved. I know from the useful letter that I received from the Minister only a few weeks ago that he himself is well apprised of that. He said:

“I too am concerned to protect the Wedgwood Collection and the award-winning Wedgwood Museum.”

I know that he means what he says. I am quite sure that some means will be found to deal with the matter, perhaps using the National Heritage Memorial Fund. I drew up the first draft of the Bill in the 1970s for Denis Mahon and Arthur Jones when we had had an historic houses meeting. I drafted the Bill and, to all intents and purposes, that is the basis on which that fund now exists. It was to deal with war surplus and it is now being topped up. Before, it was just being allowed to become a wasting asset. I know that the Government now are committed to that fund and that there are also the lottery funds as well. There are all kinds of ways and means to address the matter. There is the prospect of legislation—perhaps even a private Member’s Bill. I hesitate to suggest anything that has a “Downton Abbey” look about it, but to save the entail of Staffordshire, perhaps a private Member’s Bill is appropriate.

I should also like to pay tribute to at least one member of the family who is here today. I pay tribute to the family and to the whole tradition of Wedgwood, including its employees and others, such as Christopher Johnson, who have taken an active part and an intelligent interest in the manner in which a resolution can be achieved. Given the fact that the organisation is in a legal situation, the most that we can do is to find a way out of this impasse.

I should also like to pay tribute to Neil Cossons, who is a distinguished expert in heritage and who also worked with me in the Ironbridge Gorge Museum Trust in the 1970s. He has now gone on to so many great things. To have his support is tremendously important.

In conclusion, we must find a solution. The Government, I believe, are determined to do so. I wait to hear what our distinguished Minister has to say.

[The Parliamentary Under-Secretary of State for Culture, Olympics, Media and Sport (Mr Edward Vaizey)]

I am grateful for the opportunity to speak under your chairmanship for the first time, Mr Hollobone. I know that you will go on to have a distinguished career as a Chairman of these kinds of debates, and in many other areas of the parliamentary process. I also congratulate the hon. Member for Stoke-on-Trent Central (Tristram Hunt) on calling this debate to highlight the plight of the Wedgwood museum. It has been very enjoyable—I hesitate to use that word—to hear him set out the case for the Wedgwood museum in the forceful style to which many millions of television viewers have become accustomed. I also express my gratitude to the number of hon. Members who have attended and spoken in this debate. I refer to the hon. Members for Stoke-on-Trent South (Robert Flello) and for Stoke-on-Trent North (Joan Walley), I thank my hon. Friend the Member for Stafford (Jeremy Lefroy) for his presence and the hon. Member for Newcastle-under-Lyme (Paul Farrelly), who intervened. I pay tribute to the speech made by my hon. Friend the Member for Stone (Mr Cash). We had not only a deep historical analysis of the importance of the Wedgwood collection, but, through my hon. Friend —he is one of our foremost and most distinguished constitutional lawyers—we were able to have a tour d’horizon of the legislative or constitutional solutions that might pertain to the future of the Wedgwood collection.

As the hon. Member for Stoke-on-Trent Central made clear, the Wedgwood collection is part of this country’s history. I make no bones about that; it is probably one of the most important crafts collections and one of the most important historic collections in the country. It is an integral collection and, as the hon. Gentleman indicated in his speech, it has been more than 250 years in the making. It stands, as it were, at one end of the spectrum of the craft in which this country continues to thrive, a spectrum that ranges from the Wedgwood collection to the creation of the Victoria and Albert Museum, which is the foremost museum of crafts in the world. Two years ago, the Wedgwood museum won the prestigious Art Fund prize and the Victoria & Albert Museum of course reopened its crafts galleries to huge acclaim.

It is absolutely clear from the remarks of hon. Members that have already been made during this debate and I hope that it will be absolutely clear from the remarks that I will make in concluding the debate that none of us would like to be in this position. We are almost, as it were, walk-on parts in an obscure Dickensian novel, in which a complicated piece of legislation has the most dramatic and unintended consequences. Potentially, those consequences put one of the great cultural jewels of the nation under threat.

Nevertheless, as a Minister I cannot circumvent the law. At this stage, I must simply report to hon. Members what I believe to be the current position and then I can perhaps extrapolate from that position where we might go with a plan A, or indeed a plan B. So I want to update hon. Members on the progress on the case; I want to outline the Government’s position; I want to set out what I believe could be the next steps to protect the museum and avoid the loss of the collection; and, as hon. Members have suggested, I also want to consider what we can learn from this case to ensure that other museums do not find themselves in a similar position in the future.

First, as the hon. Gentleman pointed out, the Wedgwood museum went into administration in April this year after it was served with a substantial pension debt by the company that was set up to manage the Wedgwood Group pension plan. The trustees of the museum firmly believe that the museum’s collection is held in special trust and should not be available to pay that debt. Therefore the administrator, together with the trustees of the museum, is preparing to make an application to court to clarify the status of the collection. That application will be made when certain administrative matters have been settled, which we are informed should be by the end of November. Then the administrator will be able to make a formal application to court. Although that application to court will be made as soon as is possible, the timing of the court hearing is not within the control of the museum or the administrator.

As the hon. Gentleman also indicated in his opening remarks, the museum is in the unfortunate position that it finds itself in because of its participation in a multi-employer pension scheme covering a number of employers in the Waterford Wedgwood Group. When the group went into administration in 2009, the museum found itself as the last remaining employer in that scheme. Therefore, the museum technically became responsible for a pension debt that, as the hon. Gentleman indicated, is in the region of £134 million. That pension debt or shortfall affects some 7,000 members of that pension scheme, including former employees of Wedgwood Ltd, Josiah Wedgwood & Sons Ltd and Stuart and Sons Ltd.

Due processes now need to be followed to establish what assets are potentially available, and the Wedgwood museum is not exempt from those processes. The pension scheme has now entered an assessment period for the Pension Protection Fund, the body that was put in place to ensure that pension scheme members receive a meaningful income in place of their pension, where an employer has become insolvent or where there are insufficient assets. However, the PPF has no control over the sale of the museum’s assets.

We must follow the correct processes. If schemes such as the Wedgwood Group pension plan were to be admitted to the PPF without pursuing the debts owed to them, a greater burden would fall on pension schemes that pay the pension protection levy. That would then undermine the financial sustainability of the system and its ability to serve its purpose. Unfortunately, as I have already indicated, in this case there is a view that the Wedgwood collection could be a potential asset.

The Charity Commission was asked to provide a view on whether the collection is held in permanent endowment or whether it is part of the charity’s corporate property, which is available to creditors. The issue was considered at the very highest level by the Charity Commission. Despite the commission’s sympathy for the museum and its recognition of the importance of the collection, it reached the conclusion that the museum’s collection was not protected.

The commission cannot exercise any discretion in that decision and it must reach a conclusion based on the facts of the case and the law. However, it is a regulator and it can only reach a view on whether the collection is held in permanent endowment. The only body able to give a definitive ruling remains a court of law.

Given what is at stake here and the need for absolute certainty, the commission has confirmed that it would give consent for the museum to take court proceedings. The process of administration intervened before those court proceedings could commence.

The Government have not ignored this situation and fully recognise the implications for the people of Stoke-on-Trent and the potential loss of their heritage and indeed the nation’s heritage.

[Mr Cash]

I just want to raise the question of equitable relief. I hope that the court, in its generosity, might be able to take account of matters of that kind, because of course this issue affects trusts.

[Mr Vaizey]

It has been a while since I studied trust law, but I am not quite sure on what grounds equitable relief would be available in these cases. However, I would defer to more senior counsel on that point.

I would like to return to what I was discussing before my hon. Friend’s intervention, which is my Department’s involvement in the issue of the future of the Wedgwood collection. The Department has worked closely with the museum’s director and trustees, their legal advisers and the Charity Commission to assist in this matter. Under the last Government, the Department provided assistance to the Wedgwood museum, and since I have been in office I have also given as much assistance as I have been able to.

I will recap on the Department’s involvement so far. First, the chairman of the museum approached the Department in October 2009 to ask for help in clarifying the status of the collection. Department officials set up a meeting with the Charity Commission, in which the commission agreed to review the museum’s evidence. That led to the commission taking the view about the collection that it did.

More important, in January of this year the Museums, Libraries and Archives Council awarded a grant of £200,000 to the museum to support its legal costs. I know that hon. Members will agree with me, particularly as it happened under the previous Government, that that was an important injection of financial support given the situation that the museum finds itself in. The Department also gave a one-off grant of £25,000 to support the museum’s operational commitments.

As the hon. Member for Stoke-on-Trent Central pointed out, the Heritage Lottery Fund had already generously funded a substantial proportion of the new museum, but since January of this year it has awarded a grant of £50,000 towards the museum’s educational work with schools, its volunteers’ programme and staff training, to enable the museum to meet the new challenges that it faces.

In July, I wrote to the new owners of the Wedgwood company to alert them to the museum’s predicament and to emphasise the importance of the museum’s collection. I am pleased to say that the museum now has a good relationship with the new owners of the Wedgwood company.

Throughout this time, my Department, the Heritage Lottery Fund, the Museums, Libraries and Archives Council and the Charity Commission have all worked as closely as possible to support and advise the Wedgwood museum, and to try to plot a way forward. As a result of that work and the efforts of the museum’s director and its excellent staff, the museum is still open to the public and receiving a steady flow of visitors. It has made strong partnerships with the local cultural and tourist industries, and it has a business plan in place to ensure that it can continue to operate if the courts should rule in its favour.

To sum up, I believe that my Department and its sponsored bodies have acted quickly and effectively to support the Wedgwood museum during the past year, when there have been two different Governments.