(12 years, 2 months ago)
Commons Chamber
Paul Flynn (Newport West) (Lab)
2. What his policy is on the outsourcing of civil service jobs.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
In common with the previous Government, which the hon. Gentleman supported from time to time, the current Government do not have a dogmatic view on outsourcing, either in favour of it or against it.
Paul Flynn
For the past 10 years, shared services has been one of the major job successes in providing more than 1,000 decent jobs in my constituency, at great value to the taxpayer. Why is the Minister trying to wreck a winning team?
Mr Maude
We are actually seeking to build on what is good. It is now 10 years since Sir Peter Gershon, under the previous Government, proposed a fast move towards genuinely shared services. That did not happen for eight years. Since 2012, we have made significant progress in genuinely creating a handful of shared service centres for Government. They are building on the shared service centre in Swansea and others. If we create genuinely successful, highly efficient organisations there, they have every opportunity of winning other business and therefore of creating new jobs and new prosperity in those areas.
Stephen Mosley (City of Chester) (Con)
My right hon. Friend will be aware of the revelations in the Liverpool Echo last week that Government computers were used to access and change Wikipedia pages relating to Hillsborough. What action is he taking to investigate those accusations and to prevent misuse of Government computers, whether they are outsourced or not?
Mr Maude
Everyone in the House will have been horrified and sickened by those edits on Wikipedia. I have been in close, daily contact with the right hon. Member for Leigh (Andy Burnham), who has a highly deserved reputation as a campaigner for the Hillsborough families, and the hon. Member for Wirral South (Alison McGovern), the chairman of the all-party parliamentary group on the Hillsborough disaster. We are undertaking a rapid investigation, which is being led by my excellent permanent secretary, Richard Heaton. The first stage is to establish the facts as best we can and we will then deal with the matter. If this horrible issue is prolonged and there is no closure, it will be very unsatisfactory and distressing for the families, particularly at this time, when the events are fresh in their minds.
12. Some 239 civil service jobs that have been outsourced to Shared Services Connected Ltd are being lost in my constituency. The people who may lose their jobs were presented with a new staff structure just a week ago, were given only until today to decide on voluntary redundancy and are not being given proper opportunities for redeployment. Will the Minister press SSCL, which is part-owned by the Government, to extend the voluntary redundancy deadline, and will he ensure that all Departments offer opportunities for redeployment?
Mr Maude
I shall certainly look at the last point that the hon. Gentleman made. Nobody takes any pleasure in job losses. We have had to lose jobs in the public sector. The civil service is 17% smaller than in 2010 because, sadly, we inherited the biggest budget deficit in the developed world. We have to make economies and do things better. I hope that the new venture, SSCL, will emerge as a vibrant business in the private sector that can win more business and thereby create more jobs. However, it does need to restructure to begin with.
What proportion of civil service jobs was outsourced at the start of this Parliament in 2010 and what proportion will be outsourced at the end of it in 2015?
Mr Maude
That is a very good question. It is difficult to be precise because when business is outsourced to the private sector, it is hard to know which of the jobs in a business that provides services to Government and to other organisations relate to Government business. It is therefore hard to know what the baseline is. A larger number of activities will be carried out outside the public sector, many of them through the spin-outs of public service mutuals, which are a way of delivering much greater job satisfaction—
Mr Speaker
Order. I am much obliged to the right hon. Gentleman. He is plodding on to the best of his ability, but I say to him politely that perhaps he could write to his hon. Friend and place a copy of the letter in the Library of the House.
Michael Dugher (Barnsley East) (Lab)
Earlier this year, the Prime Minister boasted in a speech in Davos that under his Government
“there is a chance for Britain to become the ‘Re-Shore Nation’.”
However, the chief executive of Steria has said that offshoring jobs is “on the agenda” for outsourced civil servants working for Shared Services Connected Ltd, in which the Government retain a 25% stake. Does the Minister share my concern that up to 1,000 jobs might be offshored? Will the Government use their stake in the joint venture to argue that those jobs should be kept in the UK?
Mr Maude
We will take the same approach as the Government the hon. Gentleman supported—I think he was an adviser to the last Government—when they set up NHS Shared Business Services, which is also a joint venture with Steria. A number of jobs were offshored, but Britain has benefited because that entity has also created more jobs in the UK. We take the same approach as his Government took.
I will cheerfully take up your sensible suggestion, Mr Speaker, of writing to my hon. Friend the Member for Kettering (Mr Hollobone).
Mr Graham Allen (Nottingham North) (Lab)
3. What progress his Department has made on developing social finance.
4. What steps he is taking to tackle cybercrime.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
In 2011 we launched the national cyber-security programme, which was the first centrally co-ordinated programme of cyber-security funding by the Government. Up to 2016 we are investing some £860 million in overall cyber-security funding, as a tier 1 national security priority.
The Home Affairs Committee is concerned that there appears to be a black hole where low-level e-crime is committed with impunity, and we know that is costing businesses £800 million a year. What is the Minister’s assessment of whether the move to IPv6 will help, and what he is doing to make that happen?
Mr Maude
The majority of cyber-attacks and cybercrime can be prevented by basic internet hygiene, and by individuals and businesses ensuring that their cyber-security and internet protection is up to date and that all the latest patches are installed. We estimate that something like 80% of attacks can be prevented by that. The level of awareness is much higher than it was, but we have some way to go.
Given the amount of money that the Minister said is being and will be spent, what level of co-ordination across Departments is taking place to ensure that cybercrime is, if not eliminated, significantly reduced over the next year?
Mr Maude
We are doing much more to co-ordinate than has ever been done before, and last month I launched CERT UK, which includes the cyber-security information sharing partnership that some 400 companies now belong to. The sharing of information, which was very inhibited before, is now taking place to a much greater extent. There is more we need to do, but Britain overall is not in a bad place on that. However, we need to move fast because those who wish to undertake cybercrime and cyber-attacks are moving pretty fast too.
5. What steps he is taking to reduce waste in the civil service.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
The Efficiency and Reform Group was set up after the 2010 general election to tackle wasteful expenditure in the public sector. We have supported Departments in achieving savings in 2010-11 of £3.75 billion, a further £5.5 billion the following year and more than £10 billion in 2012-13. In June we will announce the figures for the year just finished.
Mr Maude
There are some central contracts and some scope for us to do this much better, although we need to be confident about quality. Through the Crown Commercial Service we can now aggregate demand to a much greater extent, but what we do not want to do is exclude smaller translation companies from this market as they can often provide a much more cost-effective service. The issue is kept under constant review, and there is definitely scope for further savings.
9. Will the Minister tell the House what progress has been made on commercial reform in the civil service to make it more savvy in its dealings with the private sector, to get a better deal for the taxpayer?
Mr Maude
We are reforming the way we do that. We identified a lack of commercial capability in Government and we are acting to remedy that, although there is still some way to go. The Government have been a very bad customer: we should be the best customer suppliers have, because we have scale and good credit and we pay quickly. We need to use that scale to get the best pricing, and we were not doing that. We have saved hundreds of millions of pounds by doing much better and by dealing with our biggest suppliers as a single customer, but there is much more that we still need to do.
6. What steps he is taking to encourage volunteering.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
The Cabinet Office is not planning to transfer any civil service jobs overseas.
I very much support the Minister’s efforts to reduce costs and increase efficiency in the civil service. Can I tempt him to go further on this particular issue and completely rule out the transfer overseas of any jobs currently undertaken by civil servants in the UK, which I believe would be a step too far?
Mr Maude
I hear what my hon. Friend says, but I reiterate what I said earlier. The approach we take is the same as the last Government: we need to be efficient and jobs should be undertaken in the place where they can best be done. Normally that will be in Britain, and the more efficient we are, the more jobs we will create in Britain.
T1. If he will make a statement on his departmental responsibilities.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
My responsibilities are for the public sector efficiency and reform group, civil service issues, industrial relations in the public sector, Government transparency, civil contingency, civil society and cyber-security.
Contrary to responses earlier, it was recently reported that the Cabinet Office has spent £30 million on staff redundancy packages and another £30 million to plug the gap created by hiring agency staff. Given that the Cabinet Office is supposed to be responsible for efficiency savings, why has the Minister wasted so much money?
Mr Maude
I think the hon. Gentleman may be a little confused. There is no correlation between jobs lost and jobs replaced. We need to have the skills in the civil service to do what needs to be done to serve Britain today so that we can win in a very competitive world. That means that some jobs become redundant, but some new capabilities are needed. No Government or organisation I have ever come across think that they sit in a steady state and never recruit new people. [Interruption.]
Mr Speaker
Order. I can scarcely hear the mellifluous tones of the Minister. There are far too many noisy private conversations taking place in the Chamber. I am sure that both the House and the nation will wish to hear Mr Philip Davies.
Mr Maude
We have made considerable progress. In the civil service alone, some £30 million of taxpayers’ money was being spent on subsidising union representation. That is perfectly proper if duties relate to employment, but this was going way, way beyond. We have reduced significantly the number of full-time representatives. There were 250 in central Government. That is now down by nearly 170.
Following the launch of Labour’s digital government review, which is focused on empowering people, and after four years of this “digital by default” Government, with 16 million UK citizens lacking basic digital skills, the Minister has finally announced a digital inclusion strategy. The digitally excluded are vulnerable to cybercrime, but are punished by this Government for not using their digital services. Will the Minister explain why his inclusion strategy excludes 7 million of our fellow citizens from the digital future?
Mr Maude
I am sorry that the hon. Lady takes that view. For one digital service that we provide—the lasting power of attorney—the assisted digital for those who are not online is provided by a number of groups that specifically help elderly people. Where there is a digital service, we are insistent that there is an assisted digital service for those who are not currently online. We want to do much more to increase digital inclusion, so that more people are online.
Stephen Phillips (Sleaford and North Hykeham) (Con)
T5. Will my right hon. Friend update the House on the progress that has been made in reducing the running costs of the Government estate?
Mr Maude
We have made very considerable reductions. No leases can be signed anywhere in Government, nor any break point passed, without my agreement. That has enabled us to reduce significantly the amount of property occupied by central Government. We also have a big programme that is making significant progress in co-locating all parts of the public sector in one place in more and more towns around the country.
Fiona Mactaggart (Slough) (Lab)
T2. As the Minister responsible for propriety in Government communications, was the Cabinet Secretary consulted on the Prime Minister’s recent letter to 2 million people, which used language borrowed directly from the Conservative party’s website? How much did that cost?
Mr Maude
It is perfectly proper for Government Ministers to use the same language in Government communications as they use in their political communications. Ministers do not suddenly not become politicians when they speak as Ministers. It is just possible that I may have used today some of the same language as I would use in a purely political environment.
T6. Brilliant social enterprises such as the Oxford student hub propeller project can lead the way in finding innovative solutions to social problems, but they struggle to find sustainable funding. Can the Minister tell me what progress is being made on increasing the availability of social impact bonds, which could make all the difference?
(12 years, 2 months ago)
Written Statements
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
On 5 March 2014, I announced in Parliament through a written ministerial statement—Official Report, column 47WS —the commencement of the triennial review of the Senior Salaries Review Body (SSRB). I am now pleased to announce the completion of the review.
The work of the SSRB, and the publication of its annual reports on senior salaries, provides transparency and allows for public scrutiny of senior pay. This review has concluded that the body remains fit for purpose, delivering functions which continue to be relevant and beneficial to the Government within an appropriate governance framework. However, the SSRB of the future must be strong, with sufficiently skilled and competent members to make robustly evidenced and sensibly judged advice to Government. As a result, a number of recommendations have been made to improve the governance and composition of the SSRB.
The triennial review has been carried out with the participation of a wide range of interested parties across Government. I am grateful to all those who contributed to this triennial review. The final report has been placed in the Libraries of both Houses.
(12 years, 3 months ago)
Written Statements
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
The Government are committed to opening up public contracts, with a wide, diverse range of providers competing to deliver high-quality services.
Following the material concerns that emerged last year, relating to overcharging on Ministry of Justice electronic monitoring contracts, G4S has engaged constructively with the Government.
The Government’s approach has been rigorous, and on 12 March my right hon. Friend the Secretary of State for Justice was able to announce that G4S has agreed to repay £108.9 million, excluding VAT, to reimburse the taxpayer for overcharging found in an audit of Ministry of Justice contracts, and to cover direct costs to Government arising from these issues. This also included £4.5 million to cover the cost of overpayments made on two contracts for facilities management in the courts. This was a significant announcement and a positive step for G4S.
Throughout, the Government have engaged closely with G4S to understand its plans for corporate renewal. These discussions have been constructive; and following scrutiny by officials, review by the oversight group and reports from our independent advisers (Grant Thornton), the Government have now accepted that the corporate renewal plan represents the right direction of travel to meet our expectations as a customer.
This does not affect any consideration by the Serious Fraud Office, which acts independently of Government, in relation to the material concerns previously identified. However, we are reassured that G4S is committed to act swiftly should any new information emerge from ongoing investigations.
The changes G4S has already made and its commitment to go further over coming months are positive steps that the Government welcome. However, corporate renewal is an ongoing process and the Government place a strong emphasis on their full and timely implementation of the agreed corporate renewal plan. The Crown representative together with Grant Thornton will continue to monitor progress as their plan is implemented, reporting to Government on a regular basis. I hope this will enable our confidence to grow.
The public rightly expects Government suppliers to meet the highest standards, and for taxpayers’ money to be spent properly and transparently. Since 2010 the Government have been working to reform contract management and improve commercial expertise in Whitehall. These reforms have had a substantial impact, saving £3.8 billion in 2012-13 alone. But much more is required, which is why we are redoubling efforts over coming months, including working to build commercial skills across the civil service and create a world-class Crown commercial service that supports all Departments.
(12 years, 3 months ago)
Written Statements
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
Guidance has today been issued to civil servants in UK departments and those working in non-departmental public bodies and other arm’s length bodies on the principles that they should observe in relation to the conduct of Government business in the run-up to the forthcoming elections for membership of the European Parliament, and to local authorities in England and Northern Ireland, and for five directly elected mayors. These elections will take place on Thursday 22 May 2014. The period of sensitivity preceding the elections starts on 2 May.
Copies of the guidance have been placed in the Libraries of both Houses and on the Cabinet Office website at:
https://www.gov.uk/government/publications/election-guidance-for-civil-servants
(12 years, 3 months ago)
Commons ChamberI am grateful for the hon. Lady’s intervention, and I can in fact inform the House that the Public Administration Select Committee is doing something very specifically on the impartiality of the civil service—and we still only have one civil service in the United Kingdom—in respect of the conduct of referendums. I am going to avoid being distracted by that topic, however.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
On a pure point of fact, since 1922 the civil service in Northern Ireland has been separate.
Touché, as they say. I am most grateful for that information. I am sure it would have been in the Government’s evidence to our Committee.
Before I continue, I draw the House’s attention to the names on motion 36 under “Remaining orders and notices” in today’s Order Book. Motion 36 would set a more limited remit than we originally proposed and determine the Commons membership of the commission on the civil service. The other place indicated last week that it would reciprocate and I can inform the House that the former Lord Justice General of Scotland and the former Deputy President of the Supreme Court, Lord Hope of Craighead, has indicated that he would chair this commission if invited to do so. The names of former Secretaries of State, former Ministers and the clear majority of chairs of Select Committees on our motion, along with the support of the other place, represent a real and powerful cross-party consensus that would give civil service reform the impetus and urgency it needs.
As we consider accountability, trust and leadership at the top of Government, it is important to understand what extraordinary demands we place on Ministers and senior officials. Ministers are accountable to Parliament for the performance of their Departments, like directors to their shareholders, but unlike in almost any other walk of life they have to rely on people they do not appoint and cannot easily remove. In addition, today’s Ministers feel accountable for a system that has become somewhat unaccountable.
PASC has watched the Government’s policy on the civil service evolve. To start with there was much talk about change in Government but no plan for how change would be led and implemented. In our 2011 report “Change in Government: the agenda for leadership”, PASC recommended that the Government should formulate a comprehensive change programme articulating what the civil service is for. The civil service reform plan of 2012 indicates that the experience of Ministers in Government has had an impact on their thinking about the civil service, but it does not meet our recommendation.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
First, I congratulate my hon. Friend the Member for Harwich and North Essex (Mr Jenkin) on securing this debate. It has been a really good debate, conducted with a lot of intelligent, thoughtful comments and insights. It has been particularly marked by a very bipartisan, consensual approach, with a high degree of agreement from those in all parts of the House. I am particularly grateful for the remarks made by the right hon. Member for Barking (Margaret Hodge) and I wish to pick up on a couple of points she made. She is absolutely right to say that we need to work on the ability of the civil service to accommodate and assimilate people coming in from outside. I also completely agree with her on the issues about women succeeding in the higher realms of the civil service, which is why I have just commissioned some work on examining exactly where and why the problems arise, so that we can address this in a substantive way. She is right to draw attention to it.
I start by saying that there are many absolutely brilliant civil servants. I have no doubt that we have some of the best civil servants in the world. Just this morning, I was with a number of civil servants in Birmingham. One example stood out, and it involved part of the Department for Communities and Local Government. The national planning casework unit, half of which is based in Birmingham, told me that its casework has risen over the past four years by 24%. The speed with which it is delivering the outcomes has improved markedly, and it is doing that with less than half the staff it had to begin with. That is a remarkable improvement in productivity.
As has been pointed out, there has been a significant reduction in headcount across the civil service. It is already down by some 16% or 17% with more reductions to come, and yet no one would say that the civil service is delivering less. There is a significant improvement in productivity. The downsizing has taken place through the recruitment freeze and through reforms to the civil service compensation scheme—the scheme was so generous as to be broadly unaffordable for the Government—for sensible voluntary redundancies to reduce the size and to reflect the need for things to be done differently. Some Departments, such as the DCLG and the Department for Education, have halved in size.
There have been significant improvements, with some brilliant civil servants doing terrific and important work, but we need continuing and significant further improvement. No one argues otherwise, and no one in this Chamber today has said anything else. It does not matter whether we call it change, reform or improvement. We need to recognise what is great. We talk about the British civil service being the envy of the world, but what is the envy of the world is the essence of the Northcote-Trevelyan settlement. Northcote was a politician and Trevelyan a civil servant—an early example of collective leadership. What that said was not primarily about impartiality, but about permanence, and appointment and recruitment on merit. The principle of a permanent civil service capable of serving the Government of the day, regardless of their composition, is crucial. The values of impartiality, honesty and integrity are really important, but they are passive values and to them need to be added the dynamic values.
The Northcote-Trevelyan settlement is a bargain, which says that a new Government cannot replace existing civil servants with their own appointees, because the other side of the coin of impartiality and permanence is the ability to deliver the priorities of the democratically elected and accountable Government of the day. That means that the civil service must be able to deliver it. If it falls down for too long on that side of the bargain, the case to allow the Government to bring in their own appointees and thus to disrupt the settlement, which none of us wants to see, will mount.
The truth is that in the public sector productivity flatlined for too long. That happened across the public sector as a whole, and the civil service represents only a part of that work force, but none the less it was a concern. Things have improved markedly over the past four years.
When people talk about the British civil service being the best in the world, as they often do, we should just reflect on the fact that in the World Bank’s Government effectiveness index, we ranked 15th, behind countries with systems similar to ours, such as Canada, Australia and New Zealand. We need to deal with the constant concerns that are expressed about the leadership and management of change. Those concerns are also expressed by civil servants themselves in people surveys, which is an excellent institution that will continue. The capability deficit in commercial and digital project management is repeatedly flagged up by the Public Accounts Committee, the Public Administration Committee, the Liaison Committee and the Institute for Government and we are on the case, as we have been for the past four years. Some of the problems that have arisen with contracts have come to light precisely because of the improvement in contract management. They went unnoticed for far too long and came to the surface in an alarming and distressing way, and we are working hard to deal with them, including by setting up the Crown Commercial Service, the Major Projects Leadership Academy and the Major Projects Authority, to which the right hon. Member for Barking referred. We have strengthened the hand of senior responsible owners by making them directly accountable. The Government Digital Service is almost, but not quite, what the hon. Member for Luton North (Kelvin Hopkins) was proposing—that is, a public corporation for Government IT. None the less, it is an agency within government that has massively improved capability. I rather agree with him about the need to insource some of the capability, as too much IT capability was outsourced.
Much work has already been done and the problems are well understood and are being addressed, but we need to do that much more quickly because too much public money—taxpayers’ money—is at risk.
Impartiality is, of course, important. That does not mean and has never meant being impartial to the Government of the day. The civil service must be very partial towards the Government’s getting their programme implemented; otherwise, the bargain starts to fall apart. The essence of impartiality is not indifference to the Government of the day but the ability to be equally passionate and committed to implementing a future Government’s priorities and programme. It is important that this impartiality does not turn into a cold indifference. It must be a passionate commitment to delivering the Government of the day’s priorities. That is hugely important.
There is much that has been done and much that needs to be done. Let me now come on to the proposal for a commission made by my hon. Friend the Member for Harwich and North Essex. Differing views have been expressed on both sides of the House and a huge amount of work and analysis is already going on. I congratulate the right hon. Member for Wentworth and Dearne (John Healey) and my right hon. Friend the Member for Arundel and South Downs (Nick Herbert) on setting up another institute to study the issue and make proposals. That is very important.
As it would run alongside an active reform programme commanding very widespread support—it has slightly surprised me how little controversy has attended the civil service reform programme—one must ask what a commission would add at this stage. There would be scope-creep: the right hon. Member for Greenwich and Woolwich (Mr Raynsford) would like to add localism, the hon. Member for Luton North would like to add the size of the state, the hon. Member for Aberdeen South (Dame Anne Begg) would like to add the Scottish civil service, and the hon. Member for Ellesmere Port and Neston (Andrew Miller) would like to consider a wider joining-up across government than that which relates to the civil service.
I am afraid that my hon. Friend the Member for Harwich and North Essex has slightly added to my concern about whether a commission would delay the implementation of the existing reform programme. His Committee’s last report suggested that the Government’s modest proposal that the Prime Minister should be able to choose between two appointable candidates should not be implemented until a commission had considered it, thus lending support to exactly the concerns we have expressed for some time. If relatively modest proposals that command such widespread support can be successfully implemented, the current system will have been reinforced. If they cannot be implemented in the way we are proposing, I suggest that that would be the time for root-and-branch examination through a commission.
(12 years, 4 months ago)
Commons Chamber1. What his policy is on the deduction of trade union subscriptions from payroll in the civil service.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
The deduction of trade union subscriptions from payroll through check-off is a matter delegated to Departments in the civil service.
The civil service has used check-off for the last 30 years. Indeed, large companies such as BAE Systems and Rolls-Royce use it as a very efficient way to deduct trade union subscriptions from salary. Is this not just another ideological attack? Removing check-off from the civil service payroll will cost many times more than running the current system for hundreds of years.
Does my right hon. Friend think that it is fair on hard-working British taxpayers that their money is used to subsidise the administration of trade unions rather than going to front-line services?
Mr Maude
My hon. Friend has been a doughty campaigner for the use of facility time to be much better regulated. We inherited from Labour a position in which very large amounts of public money were being spent on subsidising 250 full-time officials in the civil service alone, let alone in the wider public sector. I am happy to tell her that we have got that under control.
Michael Dugher (Barnsley East) (Lab)
The Minister says that this is a matter for individual Departments, but the private secretary in his Department has written to every Department in Whitehall asking them to review check-off. We know that the Government, for political reasons, want to scrap check-off, and I have seen a copy of an official letter from the Department for Work and Pensions, which was subsequently withheld by Ministers, that states:
“The department has concluded that the figure for the financial implications of ending check-off should be disclosed…The information held states: ‘We estimate that implementation costs could exceed one million pounds’.”
In the light of that revelation, will he agree, in the interests of transparency, to publish the full financial implications of this misguided policy?
Mr Maude
Well, with respect, I have seen more recent correspondence than the hon. Gentleman has seen. The truth is that Ministers—as he will recall from his time in government—are sometimes given figures for the cost of making a change that turn out not to be true. This is such a case.
2. What progress he has made on his programme of quango and public body reform.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
The Government have reduced the number of public bodies by more than 250. By 2015, there will be a third fewer public bodies than in 2010, ensuring increased accountability and efficiency, with continuing efficiency savings of £900 million a year.
Many quangos are unaccountable, unelected and have great power over people’s everyday lives. They are incredibly expensive to run, with questionable outcomes. Will the Minister please consider another round of the bonfire of the quangos to continue our march towards a leaner and more efficient Government?
Mr Maude
I am grateful for my hon. Friend’s encouragement. Our quest for a leaner and more efficient Government has already yielded savings of more than £10 billion in the last financial year. Labour did nothing on that whatever, which is part of the reason why we inherited the biggest budget deficit in the developed world. We have more to do, and for the first time we have instituted a round of triennial reviews so that every three years we look at the status of every public body to decide whether it still needs to exist or whether it can be trimmed back. We find that there is scope for much more progress yet.
Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)
Will the Minister confirm that the abolition of the UK Film Council and its amalgamation with the British Film Institute will ensure that we continue to make the most of British talent, in that wonderful creative industry?
Mr Maude
I am confident that that will be the case. My colleagues in the Department for Culture, Media and Sport examined this question very carefully before making the decisions they did. I agree with the right hon. Gentleman about the importance of the film industry in this country: it is a very bright star indeed, and we should certainly ensure that we do nothing that jeopardises that.
13. Sadly, one of Tony Blair’s lasting legacies was the creation of a huge number of unelected, unaccountable, highly paid quangos, which has ruined this place and taken power from it. Will my right hon. Friend reassure me by telling me what efforts he is making to return power and accountability to the House of Commons?
Mr Maude
A major part of the programme of public bodies reform has been bringing policy functions back to the Government in a way that provides direct accountability to Parliament through Ministers. That is a big part of increasing accountability, but the secondary purpose of the reform of public bodies has been to save money, and I am glad to say that it looks as though the savings will, if anything, exceed our expectations.
The Minister has told us about the reduction in the number of quangos. Will he now tell us what progress is being made in increasing the cost-effectiveness of those that remain?
Mr Maude
That is a continuing process. There is much more to be done to increase efficiency. As I have said, we saved more than £10 billion across central Government last year, and we expect the saving to exceed £13 billion in the current financial year, which will end this month. There is much more to be done on quango reform, but as I have said, we expect to save £900 million a year, and have already saved about £1.6 billion.
In the course of his ongoing work on public body and quango reform, will the Minister consider adjusting the responsibilities of the Major Projects Authority? Among its options, the authority has the responsibility to
“require publication of project information consistent with the Coalition’s transparency agenda”.
That is not happening. The Government have suppressed the MPA’s detailed report on HS2, hiding behind a summary. Is it not about time that we were given an accurate description of public bodies, or that the Government published the report?
Mr Maude
As my right hon. Friend knows, we are publishing much more detail about the Government’s major projects than has ever been published before. The role of the Major Projects Authority has ensured that, for the first time, consistent oversight and assurance are being applied to the Government’s major projects portfolio, and as a result, having inherited a position in which only about a third of major Government projects were delivered on time and on budget, we now find that the proportion is more like 70%. We are making a great deal of progress, but I hear what my right hon. Friend says.
Speaking about public body reform in 2012, the Chair of the Public Accounts Committee said that
“the Cabinet Office must get to grips with the programme’s overall costs, benefits and key risks”.
However, a recent National Audit Office report showed that those failings were still in place. When will the Minister get a grip?
Mr Maude
It is a bit surprising that the hon. Gentleman should raise that point, given that the last Government did absolutely nothing on this front. We inherited a position in which the Government did not even know how many public bodies there were, but by the time of the next election, we will have reduced the number by a third and cut the costs significantly: we will have cut the cost of quangos by £2.6 billion. I hope that, at some stage, the hon. Gentleman will reflect on the poor record of his own Government. We would be willing, at that stage, to accept his congratulations on what we have done.
3. What the level of charitable giving was in the last year for which figures are available.
4. What his policy is on the inclusion of people with different political points of view on public bodies.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
Ministerial appointments to public bodies are made on merit.
The Minister will recall that when in the 1980s the then Conservative Government abolished the metropolitan county authorities, the Government were scrupulous in making arrangements for the successor joint boards to recognise the rights of minority groups on the local authorities as well as the majority groups. Such arrangements do not pertain to the new combined authorities that I see from today’s Order Paper we are bringing in. Why is that?
Mr Maude
I will look at the point that the right hon. Gentleman raises. The truth is that in the last year for which the commissioner for public appointments has published figures on public appointments, actually slightly more appointees declared a Labour party affiliation than a Conservative party affiliation, but for appointments generally we seek people with some commercial experience of running large organisations who can bring to bear the same desire for efficiency and eradicating waste as we are showing in central Government.
Will my right hon. Friend join me in welcoming the fact that the rather artificial and silly row about Conservatives being appointed to public bodies has now thankfully come to an end? Also, I inform him and the House that the Public Administration Select Committee is going to have a look at the relationship between public bodies and their sponsoring Departments, to see how they perform in bad times as well as good, how they deal with crises and how accountability should be improved.
Mr Maude
I of course welcome that inquiry. This is an important issue that should be kept under considerable review. Where the Executive and Parliament forgo the ability for a public activity to be directly accountable to Parliament, we need to understand very clearly how that responsibility is being executed.
I am not sure that the row has come to an end, because in recent weeks we have learned that a Tory donor has been made chair of Natural England, that a former Tory Member of this House has been made chair of the Care Quality Commission, and indeed in the Cabinet Office an impartial civil service post, heading up the appointments unit, has gone to a former member of Conservative central office. So can the Minister, who is of course a former Tory party chairman, explain why an exemption was agreed to give Laura Wyld that Cabinet Office post?
Mr Maude
One has to admire the gall of the hon. Gentleman, given that the Government of whom he was a supporter relentlessly stuffed public bodies full of Labour donors and Labour lickspittles. It was the most appalling abuse of power. We are running things in a substantially better way, as the statistic I have just disclosed illustrates. Further, I can inform the hon. Gentleman that the number of women appointed to public appointments is now up to 45% for the last period, which is significantly better than anything his Government ever even began to achieve.
5. What assessment he has made of the level of savings resulting from procurement and commercial reform across central Government since May 2010; and if he will make a statement.
T1. If he will make a statement on his departmental responsibilities.
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
My responsibilities are for the public sector Efficiency and Reform Group, civil service issues, industrial relations strategy in the public sector, government transparency, civil contingencies, civil society and cyber-security.
The Wilson doctrine is a convention whereby Government agencies do not intercept communications with Members of Parliament without explicit approval from the Prime Minister. In a letter to my hon. Friend the Member for Enfield North (Nick de Bois) in 2012, the Minister told him that the Wilson doctrine did not apply to metadata, thereby exposing whistleblowers to risks from which parliamentary privilege should protect them. Will he review this policy, discuss it with the Prime Minister and report to the House?
T4. The Minister has a bit of a reputation as a pyromaniac, trying to have bonfires of regulations, quangos and much else. If that is the case, why is he allowing the Financial Conduct Authority to introduce a new code that will inhibit crowdfunding and local people in their communities in raising money through social media? Why do we have this new regulation?
Mr Maude
I accept the compliment that the hon. Gentleman pays me—gracefully, I hope—but the issue he raises is not one with which I am familiar. I am sure that my right hon. Friends in the Treasury will want to look at it. It is a great pleasure to have representation from the Opposition about excessive regulation. [Interruption.]
Mr Speaker
Order. Far too many excessively noisy private conversations are taking place. Let us have a bit of order for Mr Mel Stride.
T2. My right hon. Friend will know that the Public and Commercial Services Union, which stood up with such militancy against his pension reforms, has discovered that it has a £65 million black hole in its own pension scheme. Does he agree that the union should spend more time looking after its members and less time politicising Government reforms?
Mr Maude
All organisations that run a pension scheme have to live in the real world. I am sure that the leadership of the PCS will take pleasure in the fact that its members in the civil service continue to enjoy a pension scheme that is significantly better than the one that the PCS offers to its own staff.
T6. There is huge concern about the Government’s proposals to sell or part-privatise the Land Registry, putting 400 civil service jobs in Durham at risk. It works and even turns a profit for the Treasury. Why fix what is not broken? Has the Minister discussed this with his Department for Business, Innovation and Skills colleagues, and if not, why not?
Mr Maude
I have indeed discussed this with my colleagues in BIS. I do not take the gloomy view that the hon. Lady takes, that any involvement of the private sector means that the Land Registry will be less effective or have less opportunity to grow. A lot of what the Land Registry does is excellent, and there is a real opportunity for it to grow. If that involves bringing in a private sector partner, or private sector capital of one form or another, I hope that she would support that.
T3. May I welcome the Minister’s plans to improve accountability for senior civil service appointments? To ensure transparency and the scrutiny of appointments, may I also urge him to consider making the shortlists for appointments for the heads of quangos, Whitehall Departments and international courts the subject of prior scrutiny by Select Committees?
Mr Maude
My hon. Friend’s latter point is constantly reviewed, and it will come as no surprise to him that his urging is supported by many Select Committees. On his first point, for the first time all permanent secretary appointments are for a fixed tenure of five years. We publish the objectives of permanent secretaries, and all this is beginning to be more accountable than it has ever been before.
T7. This week concerns were expressed in the media about the move to a shared network for emergency services. Why are the Government refusing to share the risk assessment, saying that it will prejudice the procurement process?
T5. What would be the administrative consequences for government if patients languishing on long waiting lists in Wales were given access to the far higher quality services delivered by the coalition NHS in England?
T8. Last weekend I was searching for a V14 form to return a tax disc, I did a search on Google, and a copycat website came up offering services that cost money. What efforts are being made by the Government to work with the advertising agencies to try to deal with copycat websites that are ripping people off?
Mr Maude
My colleagues in the Department for Culture, Media and Sport and I had a meeting with Google and others last week to address exactly this issue. We are taking urgent steps, with Google and with the Advertising Standards Authority, to address it. It is a real concern, the hon. Gentleman is right to raise it and we are on the case.
(12 years, 4 months ago)
Written Statements
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
In the spending review 2010, the Government announced their intention to increase employee contributions in public service pension schemes. This followed on from Lord Hutton’s interim report on public service pensions which concluded that there was a clear rationale for public servants to make a greater contribution if their pensions were to remain fair to taxpayers and employees and affordable for the country.
The ministerial pension scheme was not covered by Lord Hutton’s recommendations, but I consider it appropriate that its members face similar changes.
In 2012-13 pension contributions were increased in a similar way as applied to other public service pension schemes, and increases for 2013-14 were also applied from 1 April 2013. Further increases from 1 April 2014 will mean that:
Secretaries of State, the Leader of the Opposition in the Commons and Speaker in the House of Lords will pay an additional 1.2 percentage points of pay, and a total of 6.0 percentage points higher than 2011-12;
Ministers of State, the Government Chief Whip, the Leader of the Opposition in the Lords, the Chairman of Committees of the House of Lords and the Deputy Chairman of Committees of the House of Lords will pay an additional 0.8 percentage points of pay and a total of 4.0 percentage points higher than 2011-12; and
Parliamentary Under-Secretaries, the Government Whips and Opposition Whips will pay an additional 0.5 percentage points of pay and a total of 2.5 percentage points higher than 2011-12.
Ministers in the House of Commons make separate contributions towards their pensions as Members of Parliament. Responsibility for the setting of pension provision for MPs is the responsibility of the Independent Parliamentary Standards Authority.
The amendment scheme will also make provision that members who are part of a same sex marriage will be treated in the same way as members who are part of civil partnerships, in line with the Marriage (Same Sex Couples) Act 2013 and the arrangements for same sex marriage recognition in other public service pension schemes.
The amendments do not make any provision in relation to an accrued right which puts (or might put) a person in a worse position than the person would have been in apart from the provision.
The details of the new scheme have been laid in the Libraries of both Houses, along with a copy of the response to the consultation from the Chairman of the Parliamentary Contributory Pension Fund Trustees.
(12 years, 4 months ago)
Written Statements
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
I am today announcing the start of the triennial review of the Senior Salaries Review Body (SSRB). Triennial reviews of non-departmental public bodies (NDPBs) are part of the Government’s commitment to ensuring, and improving, the accountability and effectiveness of public bodies.
The SSRB provides independent advice to the Prime Minister, the Lord Chancellor, the Secretary of State for Defence, the Secretary of State for Health and the Home Secretary on the pay of senior civil servants, the judiciary, senior officers of the armed forces, very senior managers in the NHS and police and crime commissioners.
The review will be conducted in accordance with Government guidance for reviewing NDPBs, and will focus on the core questions of effectiveness and good governance. Interested parties will be invited to feed in their views.
I shall announce the findings of the review in due course.
(12 years, 5 months ago)
Written Statements
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
On 4 July 2013, I made a written statement to Parliament announcing the triennial review of the Security Vetting Appeals Panel—Official Report, column 59WS. I am now pleased to announce the completion of the review.
The Security Vetting Appeals Panel (SVAP) provides a final means of challenging a decision to refuse or withdraw security clearance as part of the Government’s policy on national security vetting.
The review concludes that the functions performed by the SVAP are still required and that it should be retained as a non-departmental public body (NDPB). The review also looked at the governance arrangements for the body in line with guidance on good corporate governance as set out by the Cabinet Office. The report makes some recommendations in this respect which will be implemented shortly.
I am very grateful to Sir Alex Allan for his work on this review and to all who contributed. The full report of the review of the SVAP panel can be found on the gov.uk website and copies have been placed in the Libraries of both Houses.
(12 years, 5 months ago)
Written Statements
The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
The Government are determined to ensure there is a vibrant, competitive and diverse supply base for public services, with a range of providers delivering high-quality services.
Over the past few months Serco has engaged constructively with the Government following the emergence of material concerns relating to their contracts with the Ministry of Justice. Throughout this period the Government’s approach has been rigorous, and on 19 December 2013 my right hon. Friend the Secretary of State for Justice announced a settlement with Serco to recompense the taxpayer for £68.5 million, excluding VAT, for the overcharging found in an audit of Ministry of Justice contracts and to repay past profits of £2 million from the prisoner escorting contract.
Serco has now developed a thorough plan for corporate renewal. Following scrutiny by officials and a detailed review by the oversight group as well as our independent assurers, Grant Thornton, the Government have accepted this plan represents the right direction of travel to meet our expectations as a customer.
This does not affect any consideration by the Serious Fraud Office, which acts independently of Government, in relation to the material concerns previously identified.
However, the Government are reassured that Serco is committed to act expeditiously on any new information emerging from ongoing investigations.
The changes that Serco has already made and its commitment to go further over coming months are positive steps that the Government welcome. However, Serco’s corporate renewal is an ongoing process and the Government place a strong emphasis on the full and timely implementation of the agreed corporate renewal plan. The Crown representative, together with Grant Thornton, will continue to monitor progress as their plan is implemented, reporting to Government on a regular basis. I hope this will enable our confidence to continue to build.