Baroness Smith of Basildon
That this House endorses the Report from the House of Lords Commission Establishing Parliament’s commercial function as a joint department of both Houses (2nd Report, HL Paper 124); and in consequence, approves the establishment of a joint department of the two Houses, under the terms of the Parliament (Joint Departments) Act 2007.
The Lord Privy Seal (Baroness Smith of Basildon) (Lab)
My Lords, I am moving this Motion on behalf of the House of Lords Commission. We are asking the House to support and endorse the report published on 14 May establishing Parliament’s commercial function as a joint department of both Houses. I hope that noble Lords have read the report, which provides a clear explanation of and rationale for this decision. The Parliamentary Commercial Directorate is a shared service between both Houses, based in the House of Lords. It is responsible for all procurement and it sets and monitors standards for contract management across Parliament.
In 2022 the noble Lord, Lord Morse, undertook an independent review of financial management, which included looking in considerable detail at Parliament’s shared commercial service. The noble Lord found underperformance in all commercial areas compared with the rest of the public sector. Following publication of his report in November 2022, new leadership was brought in. The new commercial directors developed and delivered significant improvements, and by March 2025 these were rated as being good or better in all areas.
The commercial needs of Parliament are complex and challenging, and likely to become even more so in the future. It is essential that our commercial function continues to improve and has the confidence of both commissions. To achieve this, the next step is the establishment of the joint department. Before reaching this decision, we in the commission sought assurances about the arrangements to protect the joint interests of each House and to continue the improvements already under way. We have agreed a governance and performance framework so that the department will now be accountable to both Houses and will provide information about its priorities, service and performance. The current directorate staff—around 40 people—will be transferred to the new department and employed jointly by the Clerk of the Parliaments and the Clerk of the House of Commons as the corporate officers. The team will be led by a new chief commercial officer currently being recruited. We expect the transfer to take place on 1 October.
In conclusion, I acknowledge and recognise the significant improvements that have been made in the last couple of years following the excellent and very helpful report and review of the noble Lord, Lord Morse. I put on record our thanks for the commitment and professionalism shown by the commercial directors and their team in achieving this. I look forward to working with them to achieve further progress. I beg to move.
Lord Forsyth of Drumlean (Con)
I welcome the decision to make some changes here, but can the noble Baroness tell the House what the cost of the new front door at the Peers’ Entrance has been? Very senior Members of this House and members of the commission have been told repeatedly that they cannot know the cost of the front door, because if they knew the cost of the front door that would enable terrorists to work out what the security is surrounding it. I suspect that the costs of the front door make it one of the most expensive front doors in the world, and it is a front door that does not work. Various Members from all sides of the House protested right at the beginning that this design would not work as it would result in people having to queue outside to get in and they would therefore be more vulnerable. We were told that no, it had been carefully designed and the system had been looked at, but we now discover that we need somebody permanently there to press the button to open the door. The other evening someone in a wheelchair was unable to access the House. It is a complete white elephant and a disaster.
I do not wish to be unkind to any of the staff who serve this House or to underestimate the difficulties of dealing with a historic building of this kind, but it is simply not acceptable that public money should be spent in this way with such disastrous consequences, with no one being held to account and no knowledge of the associated costs. If we are going to have a joint department—and I welcome the appointment of some new leadership in this area—how can we be assured that the necessary commercial competencies will be there, as well as the ability to understand the importance of listening to what this House has to say and taking account of it in making these decisions?
Baroness McIntosh of Pickering (Con)
Can I ask the Leader of the House to investigate the position of access to the Terrace? One of the greatest privileges of the House, apart from the Chamber and Library, is access to the Terrace. Our Terrace is infinitely smaller than the Terrace next door, which I enjoyed as a Member of the other place. It strikes me that many of the places are taken on the Terrace by Members of the other place and their guests, leaving not enough places for Members of this House. I think it should be reciprocal. I am quite happy to allow Members of the other place to use our Terrace on the basis that we are able to use theirs.
Baroness Smith of Basildon (Lab)
My Lords, the noble Lord, Lord Forsyth, mentioned my diplomatic skills. I now start my audition for a role at the UN.
I will challenge one thing the noble Lord, Lord Forsyth, said, which I strongly reject: that we are a part-time House. Those of us who were here at 1.30 am would not think that. We are a full-time House. We do not expect every Member the of House to be full-time, but the work of the House is a full-time responsibility.
Lord Forsyth of Drumlean (Con)
I stand corrected. Perhaps I should have said that, unlike the other place, we are unpaid.
Baroness Smith of Basildon (Lab)
Round one on my diplomatic interview. A number of points have been raised and I want to try to address them. This has gone wider than the question.
On the door itself, there are two issues: cost and operability. It is completely unacceptable that we have a door that does not operate as it should. I can answer some of the questions. I will deal with the cost first, because there is wildly exaggerated and incorrect information. When you do not give information that is correct, incorrect information gets into the realm, which is unhelpful.
There is normally a rule that information regarding security costs is not provided. I think that does not help in this case at all. In terms of how it came about in the first place, noble Lords will remember—the noble Lord, Lord Taylor, may remember this—the Murphy review. After the death of a police officer at the other end of the building, it was important we considered the safety of those who work on the estate—not just Peers and MPs but all those who work on the estate. Their safety and security are of the utmost importance. We have had incidents that show that is important. The fence was part of the review. Noble Lords have been consulted and advised on that on many occasions. It is about security.
Baroness Smith of Basildon (Lab)
I will give way shortly, but I have a lot of questions to answer.
So, it is unacceptable, but the reassurance I can give is that the directorate is changing. I think that joint working, with a Parliament-wide department to deal with these issues, seems a no-brainer. Why have we not done it before? So many of the services we have are joint. The noble Lord, Lord Foulkes, mentioned catering. To have these individually in different Houses does not seem to be the most cost-effective way of doing things. It is taxpayers’ money we are talking about, but we also need to provide a good service for all of those working on the estate, including Peers and MPs.
On the point about the joint access, I share noble Lords’ frustrations. It does seem to me that it goes in one direction, because even those of us who are former MPs are not now able to access the House of Commons Terrace, or, for those who might like a pint in the evening, the Strangers Bar or other facilities. Yet I find that the River Restaurant at the Lords end of the building is often full of Members of the House of Commons and staff from the House of Commons. We welcome them; it proves we have better food at this end of the building. There is no calorie content on Lords menus, whereas there is on Commons menus, so that might be part of the attraction. But it does seem that we should look at a whole-House approach to these things and treat all Members of both Houses with equal respect.
The noble Lord, Lord Berkeley, asked about the door and whether this was the first time for the design. My understanding is that it is not the first time for the design of the pod, but it is the first time—if I am not correct, I will write to him—in terms of having it in a heritage setting with the additional security measures required. I take on board the point he made on that.
On the issue of signing contracts, I will double-check on this. My understanding is that, with most government departments and local authorities, these things tend to be self-funded. I will double-check and come back to the noble Baroness, but that is what normally happens with large organisations. I have a Treasury Minister behind me who will tell me afterwards whether I have got this wrong.
The issue around how, when you have a joint department, you ensure the needs and views of this House are taken into account is absolutely well made. The noble Lord, Lord McLoughlin, raised this issue as well. Where we are getting to on this one is having an oversight body. We have looked at various ways of doing this. I think the noble Lord is absolutely right; the commission is not the best way of doing this. There is too much on the agenda. I think it has to be much more focused. That was the discussion at the commission this week. It will be a separate, bespoke body with expertise from both Houses that will ensure it runs properly and will work with the team to ensure we continue improvements.
I did not quite understand the point the noble Lord, Lord Winston, made about defibrillators. If anybody on the estate is taken ill, whether they be a visitor, a staff member, a Peer or an MP, we would want on any occasion to provide the support they need. We do have defibrillators in the Palace of Westminster; at this end of the building, we have one in Peers’ Lobby, one in the Prince’s Chamber, one in the Public Gallery and one at Peers’ Entrance. Whatever the problem was, it seems to have been resolved. It is not for the House of Commons to tell the Lords where defibs should be in this building—and I am sure the House of Commons would not want to.
Lord Winston (Lab)
This was before we had any defibrillators. We were a long time trying to persuade Black Rod at that time to ensure that we did have this sort of support. Eventually, he called in the Serjeant at Arms and other Members of the House of Commons, who told me very firmly that this was not going to be possible. It was only subsequently that we then got defibrillators everywhere. Now, of course, we are well protected, but, in the space of that time, at least two or three Members collapsed, and we did not have defibrillators. I was called to do the medical resuscitation, so I remember this very clearly. It was quite a searing moment.
Baroness Smith of Basildon (Lab)
Clearly, we have moved on and are in a much better position now.
Baroness Browning (Con)
When I was talking about professional indemnity, I had particularly in mind the fact that, apart from the operation of the door, which has been discussed, I have lost count of how many times the specially made glass panel has been replaced—I cannot remember whether it is three or four. Surely whoever signed the contract for that must be in a strong position to make sure that we pay for only one.
Baroness Smith of Basildon (Lab)
Absolutely; that would be part of what you would normally do if it was a new house—the snagging. Anything that is down to a manufacturer’s fault, such as operability, is down to those who installed the door. We are not at all responsible for any of those extra costs.
Lord Hayward (Con)
I welcome what the Leader of the House has said. Given what the noble Lord, Lord Forsyth, has been told persistently in relation to the door—and there are other examples as well—I am very interested that the figure was not available because of security matters, and yet the Leader of the House has just provided what are staggering figures, many moons after we were told, over and again, that we are dealing with a security matter. I welcome the joint operation that is being discussed, but this suggests to me an unwillingness of members of management in this building to disclose information to Members of this House and the other House, because it is presumed that Members of both Houses do not need these figures or information. As a number of noble Lords will expect, I will give an example: I have faced exactly the same problem when I have asked questions in relation to the cost of traffic marshals. There seems to be a level of resentment towards the idea that Members should have the right to ask these questions and expect an answer.
Baroness Smith of Basildon (Lab)
My Lords, it is an accepted tradition that we do not disclose security information and the costs. Costs on this have been available to Members on the relevant committees, so they were available—and I will probably be sacked later for giving the costs anyway. Given that there was this degree of suspicion about the costs—some of the figures were inflated—and because the door has not been working, it was the view of the commission yesterday that it was important that the costs were made available to Members, so that they have accurate information. When we spend that much money on something that does not work, the key thing is that it is resolved, and that is what I am focused on.
On the new joint department, it is really important going forward that we have the right expertise and the right knowledge. There are things that went wrong here that should be used to inform further decisions, and engaging Members on all these decisions is really important. However, when we engage Members, there are, dare I say it, two Members and three opinions, and a wide spread of views around the House, and sometimes we have to say no to Members because we cannot say yes to everybody. There is a danger that we try to please everybody and end up pleasing nobody.
The words “lessons learned” are currently banned from my office, but there are some points here that we can take away and use to resolve these issues, so that we do not have the same problems in the future. The important thing is to get this joint department up and running, with the proper oversight, and to ensure we have proper and workable security arrangements that protect all of those who work in the Palace and that do the job they are supposed to do.
Lord Forsyth of Drumlean (Con)
I do not want to detain the House, but I am worried about the point from the noble Lord, Lord Hayward. I understand the point about maintaining security, but it is awfully convenient to be able to say that we cannot be told the cost. What is the cost, for example, of the new fence that has been put up, which is hideous? We are being told that we cannot know that because of security, but each and every one of us goes back to where we live—I was going to say to our constituencies—and get mocked about the cost. We are held accountable, and we are meant to be accountable. My worry about this “tradition” is that it means that there is no accountability. When you do not have accountability for expenditure, you get excessive expenditure—and my goodness me, that front door is an example.
Baroness Smith of Basildon (Lab)
The noble Lord made a number of points. There are always increased costs because of the heritage nature of the building. I do not think any of us is entirely comfortable with having a fence. In the days when I was first a Member of Parliament in the other place, you could walk in without even needing a pass. Times have changed, and that is the reason we have this fence. These things are not unreasonable if there is genuinely a security issue, and I would defend that, but perhaps we sometimes need to stress-test these things a little more, and perhaps that is a role for the commission to undertake.
Sometimes costs seem alarming. Those of us who used to be in local government or who were Ministers will know that, when you account for things and look at the cost, it always seems far more than if you were doing it in your own back garden. This is not just a front door; it is something much more serious than that, and we have to get it up and running. All of us on the commission—a number of us are here in the Chamber today—will take this away, and I know that the Lord Speaker feels the same. We will stress-test those issues. Where information can be made available to Members, it should be, but where it cannot, noble Lords can trust the commission to look at these issues and make decisions with the security people.
Baroness Goldie (Con)
My Lords, I shall be very brief. It seems that there is an underlying malaise here. The majority of Members of this House, in which I include myself, have very little idea of what the commission does. What communication structures does the commission have in place to ensure that, within the limitations of confidentiality, Members have some idea of what it is doing and what decisions it is making? I think the majority of this House is unclear about all of that.
Baroness Smith of Basildon (Lab)
I am often surprised by this. Within our party groups, we usually get reports of significant decisions made by the commission. The minutes are published, with redacted items, on the internal website, so that information is available. I do not know if the noble Baroness is asking for more information to be made available beyond the minutes and the reports made to her party group.
Baroness Goldie (Con)
Would Members not benefit from a quarterly or bi-monthly publication by the commission of what it has been doing? In the digital age, it could be transmitted to every Member—
Baroness Smith of Basildon (Lab)
I am sorry to interrupt, but I will try to press forward on that point. The Lord Speaker’s newsletter publishes some of the information. If the noble Baroness wants a quarterly report, rather than the minutes published after the meeting, that can be done, but it will be published in the same way as the minutes of the meeting are published. We will look into that, if that helps her.
Lord Howell of Guildford (Con)
I hope the Leader of the House has not overlooked that every moment the unworking door remains unworking, we are haemorrhaging money. There will have to be permanent staff there to press the button, which will presumably require a team of three or four who will have to be salaried. In any normal arrangement, it should be mended tomorrow morning. Can we afford to leave it as it is?
Baroness Smith of Basildon (Lab)
It is quite difficult to answer that one. Yes, repairs are undertaken from time to time, but there has to be a systematic look at how the door can be made operable ongoing, without repairs being needed. If that cannot be done, alternative arrangements have to be made. That is the very issue I have been speaking about, and which we are looking at. It is a matter of urgency, and I hope that I have conveyed to the House that frustration is felt across the House and is understood.
Lord Robathan (Con)
The Leader has done extremely well, if might say so, because she is not responsible for this; she is not to blame. Once upon a time I used to deal in assaulting buildings, and let me tell you that you would not assault a door where two police officers with submachine guns were standing. Now you can assault that door, because there are no policemen with machine guns—you would go round the back, if you wanted to assault it. I am afraid that the advice she was given on security is, frankly, nonsense.
Baroness Smith of Basildon (Lab)
I have to say to the noble Lord that it is not nonsense. There have been officers with machine guns on the door, but that does not take away the need to have a proper door that is secure for the House. I do not know whether the noble Lord has ever read the Murphy review, which covered both Houses—it may have been published when he was in the other place; I am not sure whether he was in this House then. We need to take these things seriously. All of us will have solutions and simple answers and will say, “If you do this, it will be fine”. But let us just look at getting the door up and running. The purpose today is to look to the future, and the issue before us is the joint department. I am grateful for the noble Lord’s comments; I hope that my next job will be at the UN.
Lord Taylor of Holbeach (Con)
The noble Baroness was talking about the minutes. I have asked the Printed Paper Office if it has copies of the minutes of the commission’s meetings. In fact, I have asked several times. There are some copies, but they date from February; they are on the table where we collect our papers in the morning. It may be that they are available online, but when I have asked the people in the Printed Paper Office, they have said, “Well, they’ll send them to us when they’ve got them to give us”.
Baroness Smith of Basildon (Lab)
Well, I am not quite sure why there is such a delay. The minutes of the meeting that took place this week were approved yesterday, and they will be available this week. I think the noble Lord may have been misinformed, but they are available as they have been approved. We have changed the process because they used not to appear until the next meeting, which is unacceptable, so in recent times they have been made available online ASAP. I shall check, but the noble Lord can find them on his computer, on the intranet. The minutes will appear later on, but the decisions are available as a matter of course and, if he does not get them, he should come and tell me and I shall make sure that he does.
Viscount Stansgate (Lab)
My Lords, may I raise one issue that is not about the door? In the joint workings that my noble friend will be taking part in, will she try to develop what I might call the spirit of comity before the two Houses? The nature, membership and workload of both Houses is different; nevertheless, we represent Parliament as a whole. Some of the other issues raised in these exchanges show that we need a better working relationship with each other. I hope, as I said, that in the spirit of comity my noble friend will be able to achieve that.
Baroness Smith of Basildon (Lab)
I do not think that this is just down to me. The point has been made about having the joint department here, and other noble Lords have said how joint departments are, in many ways, a way forward. We have to ensure that we are a working Parliament, from one end of the building to the other, and the support that is available to ensure that we do our jobs properly should be commensurate with the work we do. We have the measures in place to ensure that our interests are properly represented and there is proper oversight from both Houses, and I hope that noble Lords will accept the report.