Devolved Administrations
Lord Wallace of Saltaire Excerpts(5 years, 1 month ago)
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Lord Young of Cookham
I recognise the particular role my noble friend has when it comes to statutory instruments, and I can give him that assurance.
Lord Wallace of Saltaire (LD)
My Lords, the Minister has already been asked about what has happened to the English regions. Now that we have a rather privileged relationship for the three national assemblies, is devolution to the English regions stuck? In Yorkshire we have made very detailed proposals for a One Yorkshire scheme. The Minister for the Northern Powerhouse suggested that we had to accept four city regions for Yorkshire or nothing, in spite of the fact that there is no city in one of those four proposed regions.
Lord Young of Cookham
Devolution is England is not stuck. I spend many hours in the Moses Room dealing with statutory instruments, either setting up combined authorities, where local authorities wish to combine, or local mayors, who will shortly be elected, so we are making good progress in devolving power from Westminster to the local authorities.
Interserve
Lord Wallace of Saltaire Excerpts(5 years, 1 month ago)
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Lord Wallace of Saltaire
To ask Her Majesty’s Government what changes they are considering to the outsourcing of public services as a result of Interserve entering into administration.
Lord Young of Cookham (Con)
My Lords, nothing in Interserve’s refinancing will affect the delivery of public services. No staff have lost jobs and no pensions have been affected. The company has executed a contingency plan it had prudently developed in case the shareholders rejected the proposed refinancing deal. However, we have already announced changes to how we outsource; these are captured in the Outsourcing Playbook, which outlines a range of measures designed to ensure that outsourcing projects succeed.
Lord Wallace of Saltaire (LD)
I am glad the Government are investing in playbooks—I am not sure what sort of play is intended. It seems to be time for an overall review. Can the Minister confirm that of the 29 strategic suppliers the Government list for outsourcing, five have now run into severe financial difficulties, and that in several cases, as with Interserve, US hedge funds shorting the shares have contributed to that, putting British public services in peril? Can he confirm also that Interserve was a general supplier of probation services, the updating of sewers, waste management, bus station refurbishment, hospital cleaning and security, motorway repairs and the like, and that the record therefore—as with probation services, of which it was the largest supplier—suggests that its expertise is relatively limited?
Lord Young of Cookham
On the first point raised by the noble Lord, it is important to understand that what happened to Interserve was totally different from what happened to Carillion, for example. Carillion went bust. Pensioners took a hit. Creditors took a hit. People lost their jobs and there was discontinuity in services. None of that happened with Interserve. It was done with the approval of the pension trustees and the lenders, who wrote off the debt and put £100 million in. There was no discontinuity in services and nobody lost their job. That is important to understand.
The noble Lord asked whether we would have a general review. I announced that we have learned from past lessons; the document to which I just referred has 11 key policy areas in which we can come to better decisions and create a healthier outsourcing market.
The noble Lord is right that Interserve has a general portfolio—it protects the pandas in Edinburgh Zoo. The issue of probation services goes far wider than Interserve, as the noble Lord will know; the MoJ has announced a review of community rehabilitation services, with a view to improving outcomes and better integrating public sector, private sector and third sector providers.
Digital Mapping: Restrictions
Lord Wallace of Saltaire Excerpts(5 years, 3 months ago)
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Lord Young of Cookham
I hope it enabled the noble Lord to reach his destination. The geophysical data available helps people in their everyday lives. Noble Lords waiting for a 159 bus can use their iPhones to see when that bus will be coming. Noble Lords who might have forgotten where they parked their car can use their mobile phones to identify it. Noble Lords who go jogging in the morning can see whether they are going faster or slower than other noble Lords on the same circuit. One has to recognise that there are real advantages from having this geophysical data. I would not be concerned if everybody knew the colour of my front door.
Lord Wallace of Saltaire (LD)
My Lords, during the Second World War—a period in which many members of the Conservative Party still appear to live—a suspicious foreigner taking pictures of houses would have been stopped by some doughty Britain such as Mark Francois and challenged in case he was a German. There were, and surely still are, some security questions to answer. Is it not proper for the Government to promise us a review of this? In the meantime, could the Minister tell us whether British map readers, satellite users and so on can discover as much detail about houses and critical national infrastructure in Russia and China as they now can about us?
Lord Young of Cookham
On the first question raised by the noble Lord, I refer back to my original Answer. I said that part of this is about considering both risks and opportunities for current arrangements for access to mapping data. In this country, because of the excellence of Ordnance Survey, there are relatively few commercial marketing organisations doing this work. Most of them build on the data from Ordnance Survey and add value to it. What knowledge we have of critical installations in Russia is a matter for the MoD, rather than a humble Minister in the Cabinet Office. But in the light of the views expressed on both sides I will go back and double-check the information that I have been given.
Domestic Infrastructure: Chinese Ownership
Lord Wallace of Saltaire Excerpts(5 years, 3 months ago)
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Lord Young of Cookham
My Lords, we welcome Chinese inward investment into the civil nuclear projects in the UK, as the noble Lord mentions, subject to our robust legal, regulatory and national security requirements. We have the most robust and stringent requirements. My advice is that the project at Hinkley so far meets all the necessary requirements that the noble Lord referred to.
Lord Wallace of Saltaire (LD)
My Lords, are we working on our own in responding to the Chinese threat, or are we working with others? Would it not be sensible not only to work with our other Five Eyes colleagues but also to work with our European partners? If we have to find and develop alternative technology for some of these critical projects, clearly it might be much more sensible to work closely with other friendly governments.
Lord Young of Cookham
Of course we should work closely with our allies, but it is just worth pointing out that some of our allies have a different legal framework. Australia, for example, has a law saying that telecom operators cannot procure equipment from a company that has extraterritorial jurisdiction. That rules out Chinese companies and many others. We do not have quite that same approach, but, of course, we learn from experience, from Australia, New Zealand, the United States and our other allies.
Brexit: Stability of the Union
Lord Wallace of Saltaire Excerpts(5 years, 3 months ago)
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Lord Wallace of Saltaire (LD)
My Lords, I shall focus on the English question and emphasise that England’s place within the union is also in flux and confusion. One Brexit-supporting placard outside Parliament on Tuesday read, “Save England’s Constitution” —but you cannot save something that does not exist.
After the confused debate on an English Parliament and English votes for English laws, it remains doubtful that England as such is an appropriate framework for devolution in a looser UK. In a blog for the Constitution Unit in December 2018, Sir John Curtice stated that opinion polls show,
“little evidence that there is a growing sense of English identity south of the border”.
The EU referendum highlighted the political and social divisions within England, and we all know that regional equalities between English regions are the widest in any European country. Flows of EU funds to universities, companies and other bodies in the poorer regions partly help to redress this imbalance, but there is no guarantee that they will continue after Brexit.
Unlike the Barnett formula, there is no political framework for fiscal redistribution within England. The bias in infrastructure spending towards the south has become a highly visible issue across the north of England in recent years. Disillusion with the northern powerhouse—now an empty slogan—is widespread.
The Government’s approach to devolution within England is top-down, based on city regions and elected mayors. For the north of England, they are becoming steadily more confused. Last weekend, the Minister for the Northern Powerhouse proposed the establishment of a “Department for the North”, with its own Secretary of State to sit alongside those for Scotland, Wales and Northern Ireland—a major administrative change, if not a constitutional one. Can the Minister tell us whether this reflects the Government’s current position and when they will provide more detail on this interesting idea? Meanwhile, devolution for Yorkshire is stalled, with the same Minister insisting that Yorkshire has to have four city regions, while the overwhelming majority of Yorkshire local authorities, across all parties, support a “One Yorkshire” approach. Can the Minister tell us when we may expect a coherent government response to this proposal?
The Prime Minister repeatedly claims that the Conservatives are “the party of union”. It is much more the party of England, and predominantly of southern England at that. Senior Conservative Ministers overwhelmingly represent Home Counties constituencies. One of the major flaws in our first past the post voting system is that it exaggerates the regional differences between our major parties, with Labour representing the north and the industrial Midlands of England, together with Scotland and Wales, and the Conservatives the comfortable and wealthy south.
Other speakers will, rightly, point out how far devolution to Scotland, Wales and Northern Ireland has altered old assumptions about the British constitution. Reductions in the powers of English local authorities in recent decades and cuts in central support for their funding, which are still continuing, have left England the most centralised state in the democratic world. The shrinkage of local democratic government has contributed to popular disillusionment with politics as such, and the psychological distance from England’s west and north to London has fuelled discontent further. Of course, it is not easy to agree on a map for devolution to English regions across the Midlands and the south—but, with London as a city now an outpost of devolution in an otherwise centralised England, we have to address the issue.
Devolution within England, as well as to our other three nations, should also feed into constitutional reform at Westminster. I have been one of a long succession of Ministers who have tried to promote reform of the Lords, and I still bear the scars of that experience. A stronger second Chamber, more effectively checking executive power, would appropriately be constituted on the basis of regional representation, whether directly or indirectly elected, as the coalition Government proposed. However, both Conservative and Labour Front Benches continue to oppose a stronger second Chamber for fear that it would limit the power of a Government—executive sovereignty, of course—with a majority in the Commons to push through their legislation unamended.
Brexit will shake the union of the United Kingdom, but it will also worsen the growing divide between the richest and poorest regions of England. That divide, and the disillusion it has bred, must be addressed through constitutional change, as well as through economic redistribution.
Interserve: Provision of Public Services
Lord Wallace of Saltaire Excerpts(5 years, 4 months ago)
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Lord Young of Cookham
The noble Lord is quite right. On 19 November, the Chancellor of the Duchy of Lancaster made a speech to the BSA outlining new arrangements. The noble Lord referred to some of them; we prefer to call them resolution plans rather than living wills. We have recently announced plans for all suppliers to draw up resolution plans in the unlikely event of a business failure, to ensure continuity of services and, where necessary, to enable another provider or the Government themselves to step in. Interserve has volunteered to lead the way as one of the first suppliers to design one of these resolution plans.
Lord Wallace of Saltaire (LD)
My Lords, in view of the substantial difficulties that major outsourcers are now going through, do the Government have a view on the minimum number of major outsourcing companies they need to maintain a competitive market for government outsourcing of public services?
Lord Young of Cookham
The noble Lord raises a good point. We want to promote a healthy and diverse marketplace for public services so that not only the Government but local authorities and, indeed, the private sector can access these companies. For that to happen, we need to ensure that the existing ones have a robust financial regime. We are also trying to break down some of the very large contracts into smaller items so that smaller suppliers, who cannot bid for the major contracts, can bid for contracts that have been disaggregated. I hope this in turn will help to build up the marketplace that both he and I want.
Palace of Westminster: Restoration and Renewal
Lord Wallace of Saltaire Excerpts(5 years, 5 months ago)
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Lord Young of Cookham
That suggestion by Sir Michael Hopkins was looked at by the Joint Committee and discounted for the reasons it has set out. As I said in response to my noble friend, the responsibility for Richmond House now rests with the other place because it is the legal owner. It will take on board the heritage issues which have just been mentioned. The building was, of course, substantially reconfigured in the 1980s before it became the headquarters for the Department of Health.
Lord Wallace of Saltaire (LD)
My Lords, do the Government have a plan for the development of Whitehall? In the past 25 years, three government blocks in and around Whitehall have been transferred to private ownership and converted into hotels. I wonder if they intend to move that further along Whitehall and take more departments out towards Marsham Street and Horseferry Road, or whether they think that the historic context of Whitehall departments grouped together is something that we ought to attach importance to at a point when the Department of Health has just had to move further away.
Lord Young of Cookham
The decision to transfer Admiralty Arch on a 99-year lease was one taken by the coalition Government. I think it was the right thing to do because that building was no longer required by the Government. It was costing nearly £1 million a year to maintain, and it needed substantial renovation. It has now been tastefully renovated in the private sector according to the original designs by Sir Aston Webb. Moreover, the Government still retain the freehold. That was a sensible decision which was taken by the coalition Government. More broadly, the number of civil servants is reducing. There are still 78,000 civil servants in London but many thousands will be relocated outside London as part of our industrial strategy. Those who remain will require some 20 buildings instead of the 65 that we have at the moment. But the core Whitehall estate will be sensitively managed with advice from the Government Historic Estates Unit. And as the noble Lord said, some government departments are already doubling up. The Treasury, DCMS and HMRC are co-located, as are the Home Office and MHCLG.
Church of England: Disestablishment
Lord Wallace of Saltaire Excerpts(5 years, 5 months ago)
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Lord Young of Cookham
I wholeheartedly endorse what the right reverend Prelate has said. The bishops seek to heal religious conflict and promote religious tolerance and inclusiveness. He quite rightly points out that on some of the major occasions in the country’s history—coronations, state occasions, other anniversaries and Remembrance Day—it is the Church that has a leading role. It would be sad if that link between Church and state was weakened, and it is not something the other faiths have asked for.
Lord Wallace of Saltaire (LD)
My Lords, I remind the Minister that William Gladstone’s Liberal Party had a programme of constitutional reform that included the disestablishment of the Church in Ireland, Wales and England, an elected second Chamber, the separation of the House of Lords’ judicial function into a Supreme Court, universal suffrage with a fair and open voting system and, for some, abolition of the monarchy. Not all of that programme of constitutional reform has yet been agreed, and I know there are many in this House who are opposed to a number of aspects of it. Meanwhile, can we not be grateful that our national Church—part of that continuing anomaly—does so much work to hold together local communities, in particular working with other faiths, including the new faiths within Britain, and to hold our national community together?
Lord Young of Cookham
I agree with the noble Lord. Who we are as a country is defined by our Church and our state and the relationship that has been developing over 400 years between them. The Government value that relationship; we think it adds value to both sides and is welcomed by the country. We have no plans to destabilise that relationship.
Verify: Digital Identity System
Lord Wallace of Saltaire Excerpts(5 years, 5 months ago)
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Lord Young of Cookham
Verify was started under the coalition Government—I think Nick Clegg was in charge of the Cabinet Office when it started—but there is a difference between providing a secure online identity, which Verify does, and an ID card which you have to carry with you. The key difference between Verify and an ID card system is that Verify is voluntary and the ID card was to be compulsory.
Lord Wallace of Saltaire (LD)
My Lords, I declare an interest, having worked in government with Nick Clegg on precisely that. I was very impressed by the Government Digital Service and frustrated by the extent to which departments across Whitehall resisted its moves to modernise government handling of data and abandon the separate legal frameworks under which departments manage and keep data. There was much discussion in the coalition Government about introducing a new Bill to update those rules to cope with rapidly moving technology. It has not yet appeared. Do the Government still have plans to do so?
Lord Young of Cookham
The noble Lord knows much more about this than I do. It is the case that HMRC has its own service, the Government Gateway. Since it developed that service, Verify has come along. Obviously one would like to migrate from Government Gateway to Verify and encourage other departments so to do. I am not wholly convinced that we need legislation to do that—I will go back to my department in the light of what the noble Lord said—but we need to win the hearts and minds of government departments and persuade them to make more services available on Verify. That impetus is, I hope, gathering momentum.
Third-party Election Campaigning
Lord Wallace of Saltaire Excerpts(5 years, 7 months ago)
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Lord Wallace of Saltaire (LD)
My Lords, in view of the strictures of the noble Lord, Lord Judd, on those of us who may not understand charities, perhaps I should start by declaring that I have been a trustee of one musical charity for some considerable time and have been the chair of a musical charity that concerns not just musical performance but education and some campaigning for improved musical education. When I was chair of the trustees I did my best to observe the rules for which, as a Minister, I had been responsible; namely, that one should not serve for too long as chair of trustees. I made speeches on the sad decline of music teaching in schools and the need to reverse it. That is advocacy; that is one side of the line between advocacy and party-political campaigning. I think that actually the line is not too difficult to see.
This is familiar territory for me. I recall many long discussions with the noble and right reverend Lord, Lord Harries, and the Commission on Civil Society and Democratic Engagement when, as a Minister, I piloted the transparency of lobbying Bill through the Lords five years ago. We argued then that they were misinterpreting the purposes and potential impact of the Bill, which was concerned to protect the integrity of the electoral process from incursions of money from outside, and from single-issue groups targeting specific candidates and parties on the scale that we were already observing in other countries, most evidently in the United States. We had witnessed that in previous British elections, after all; for example, I remember the fox-hunting lobby vigorously working to unseat a particular Liberal Democrat MP several elections ago, which contributed to her defeat.
The Act was not aimed primarily at charities. It was aimed at all third-party campaigners from all political perspectives and social and economic interests. Reviewing comments from the NCVO, the Electoral Commission and others on the impact of the Act so far, I am struck by the frequency of references to “misplaced” or “erroneous” perceptions, “exaggerated” fears, or even—from the review by the noble Lord, Lord Hodgson—“fundamental misunderstandings” from the charitable sector. The NCVO reiterates in a comment from 2017 that:
“The growing potential for third parties to improperly influence elections by spending lots of money on advertising means that we do have to regulate non-party campaigning”.
The noble Lord, Lord Hodgson, noted in his review—I hope he will not mind my quoting it—that,
“a number of third parties appeared not to have appreciated that Part 2 of the 2014 Act was not a ‘new’ piece of legislation, rather an expansion and tightening of the rules already existing under Part 6 of PPERA. In meetings held in the course of this review, more than one organisation recognised that they probably should have done more to consider their legal obligations at the time of the 2010 General Election under the pre-existing regime”.
During the lengthy discussions on what became the 2014 Act, I became increasingly sceptical about the motivations of some of those resisting the legislation. I recall being told in a meeting with staff from several leading development charities that they did not want to have to register because, “That would tell the little old ladies who give us money that we are a campaigning organisation as well as working for the poor in the third world”. I did not yet know that some development charities were also bending the rules in pursuing those little old ladies for funding. If they are campaigning organisations, they should be transparent about that and not attempt to hide it from those whom they pursue so hard for funds. I also remember charity executives admitting then that they had never bothered to read the Political Parties, Elections and Referendums Act 2000 or to understand what obligations they had under it.
My conviction that large charities need careful regulation—however benevolent their underlying objectives may be—was sharpened further when I served on the inquiry into charitable fundraising two years later. We listened to the head of one major charity explain to us why his charity ignored the Telephone Preference Service—because the need is so great, we were told—and another admit that he had never looked into how the commercial telephone agency that his charity employed to fundraise operated. As the House of Lords Select Committee on Charities declared:
“Accountability and transparency are essential for charities to ensure they function properly”.
I welcome the proposals in the review of the noble Lord, Lord Hodgson, and regret that the Government have not found time to introduce some amendments to the legislation. I hope that the Minister will be able to tell us that the Government will do their utmost to find time for the modest amending Bill required during the next Session. Here, as in so many other policy areas, all other measures are currently consumed by Brexit.
It is clear that we need to revisit and adjust the regulations covering political campaigning on a regular basis to keep abreast of what the Russians call “new political technologies”, which are transforming campaigns, such as data mining, as the noble Lord, Lord Hodgson, suggested, the use of targeted social media and other forms of online campaigning and advertising. We saw the use of those techniques in the 2016 referendum and the difficulties that the regulators face in keeping up with what is going on. We also saw in that referendum a classic example of a regulated campaign organisation getting around the rules by transferring surplus money to a third-party campaign.
We have not yet resolved the issues raised by questionable behaviour during the 2016 referendum campaign, including the use of data mining and social media. That demonstrates the weaknesses of the UK’s regulatory structure for campaigning. Continuing changes in political technologies and the exploitation of new media make it clear that we will have to revise and tighten the rules further.
There are other changes in charities and electoral regulation that we need to consider. The absence of a legal obligation for transparency in reporting significant sources of income allows foreign donors, companies with strong economic interests and others to fund think tanks and educational and religious charities that promote their vested interests without the British public understanding what is happening. That has been an issue with some Muslim charities in the past. It is still a live issue with libertarian think tanks.
I recall an article on funding for the Conservative Party that remarked that non-British sympathisers who wished to donate to the party were frequently advised to give their money to right-wing think tanks instead. That way, they could gain influence and credit with influential insiders without having to declare their donations. But many of these think tanks in effect act as third-party campaigners in British politics or even as lobbyists for the multinational companies and foreign billionaires who fund them. The Institute of Economic Affairs, for example, does not publish its sources of income, but publishes papers against further restrictions on tobacco and in favour of cuts in corporate taxation.
I would love to know where the funding for the TaxPayers’ Alliance and the Global Warming Policy Foundation has come from, and in particular how much of their funding has come from wealthy right-wingers across the Atlantic. I note that the Global Warming Policy Foundation has an affiliated US funding foundation, while the Koch brothers, who are politically engaged American billionaires, are reported as having funded at least some of the activities of the TaxPayers’ Alliance. However, their websites and annual reports do not tell me more. Transparency in funding should be required of them, too, as influential players in the British political debate. This calls for legislative changes the next time Parliament addresses charity regulation and third-party campaigning.
The register of third-party campaigners for the 2015 election campaign is a useful indicator of the case for regulation. It includes bodies that campaign for right-wing and for left-wing causes; Conservative Supporters Ltd and the Conservative Muslim Forum are classic third-party bodies, with the Independent Schools Council, Hope Not Hate and various animal rights groups on different sides of that impassioned debate. These and many other groups contribute constructively to our public debate, but there is a line between advocacy in the public sphere and the targeting of particular candidates and parties that is not too difficult to identify and which the Electoral Commission should rightly police.
I accept and regret the fact that both the Electoral Commission and the Charities Commission are underfunded for the regulatory tasks they are asked to fulfil. I note that innovation in campaigning techniques is running ahead of regulation and needs to be revisited regularly to keep up, perhaps through a parliamentary inquiry after every general election. I hope that the Minister will take that back to the Cabinet Office to consider. I also accept that some elements of the transparency of lobbying Act would benefit from amendment, in the light of experience so far and in the light of the helpful review by the noble Lord, Lord Hodgson, in particular on the reduction in the regulated period from 12 to four months. But I also contend that the chilling effect which the commission chaired by the noble and right reverend Lord, Lord Harries, warned of has not emerged and that the case for transparency and regulation of third-party campaigning by right-wing and left-wing bodies and from both domestic and foreign sources remains strong.