Electoral Fraud

Lord Young of Cookham Excerpts
Thursday 26th January 2017

(7 years, 3 months ago)

Lords Chamber
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Lord Rennard Portrait Lord Rennard
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To ask Her Majesty’s Government what is their assessment of the level of electoral fraud at elections held in Great Britain.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, the Government believe that electoral fraud is unacceptable at any level. In its latest analysis of fraud, the Electoral Commission noted that the number of cases was significantly higher than in previous years. In his review of electoral fraud, Sir Eric Pickles identified the areas that are at risk of fraudulent activity. The Government’s response sets out a programme of work for tackling electoral fraud and building a clear, secure democracy that works for everyone.

Lord Rennard Portrait Lord Rennard (LD)
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The evidence suggests that there may be much more of a problem with postal voting than with people being impersonated at polling stations. Is it therefore not time to look again at people’s applications for postal votes, such as the reasons provided for needing to vote by post rather than going to a polling station, and at the declaration of identity accompanying the postal votes to confirm that the ballot paper has been filled in in proper conditions of privacy?

Lord Young of Cookham Portrait Lord Young of Cookham
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Sir Eric Pickles made some recommendations on postal votes, although he did not make the recommendations to which the noble Lord referred. Postal voting is an enormous help to those who want to increase participation in democracy and it would be wrong to exclude it. Sir Eric said that postal votes should be renewed every three years. In other words, they should not automatically run on for ever and after three years people in receipt of a postal vote should have to reapply. The Government are consulting on those recommendations.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab)
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My Lords, there is a need to review the process in respect of electoral fraud and deal with some of the unintended anomalies in the procedures at present. Will the Minister and some of his officials meet me to discuss these matters?

Lord Young of Cookham Portrait Lord Young of Cookham
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I am sure the Minister for the Constitution, who has responsibility for electoral matters, will be more than happy to meet the noble Lord to discuss this issue. Our profession is not held in high regard at the moment, and it assists us on all sides of the House if we can restore confidence in the electoral process and increase the integrity of the voting system.

Baroness Gardner of Parkes Portrait Baroness Gardner of Parkes (Con)
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My Lords, very often in the past it used to be that whoever was running a nursing home made all the postal votes for everyone. I raised this with members of the opposition party at the time of the last general election. I cited a particular constituency where the candidate who was way ahead was suddenly completely swamped by a vast postal vote, with 30 voters apparently living in places that could not hold 30 people.

Lord Young of Cookham Portrait Lord Young of Cookham
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Sir Eric makes recommendations about postal votes, one of which is that political activists should no longer harvest postal votes. That practice is discouraged by the Electoral Commission in its code of conduct, but this is only a voluntary rather than a statutory prohibition. We will carefully consider how to deliver the ban on specified persons handling postal ballot papers, including enforcement and the creation of a new offence. As I said, we want to do all we can to increase public confidence in the voting system.

Lord Pearson of Rannoch Portrait Lord Pearson of Rannoch (UKIP)
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My Lords, did not the Pickles report find that election fraud had been particularly evident in our Pakistani and Bangladeshi communities, where cases have been ignored because of,

“over-sensitivities about ethnicity and religion”?

What can the Government do to stop that in future?

Lord Young of Cookham Portrait Lord Young of Cookham
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The Electoral Commission has identified 18 areas where there is a higher risk of electoral fraud, and Sir Eric has recommended that there should be a pilot in 2018 whereby ID must be produced to reduce incidents of impersonation. The Government are currently consulting on which local authority areas should take part in those pilots in 2018, and of course some of those local authorities at risk will be invited to participate.

Lord Hayward Portrait Lord Hayward (Con)
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My Lords, I note the answer that my noble friend just gave in relation to the 18 areas. When going out and considering the pilot areas that might be involved, could he strongly encourage those local authorities to participate? There may be reticence in some cases, but the Government and the Electoral Commission have identified them as problem areas and they really ought to participate in those test projects in 2018.

Lord Young of Cookham Portrait Lord Young of Cookham
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My noble friend has great expertise in this area and I listen carefully to what he says. It would be in the interest of those local authorities that have been identified as being at risk by the Electoral Commission to take part in the pilots that I have just referred to, to remove any doubts about the election results in those areas.

Lord Davies of Oldham Portrait Lord Davies of Oldham (Lab)
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My Lords, we all want to see electoral fraud tackled and, as the Minister has indicated, it would help to re-establish the credibility of British politics. The Minister answered a Question yesterday on voter registration, and I want to ask him whether this is not the major priority with regard to our electoral system. After all, he listed five groups that gave great cause for concern on voter registration, namely,

“black and ethnic minority groups, social tenants, tenants in the private rented sector, young people and students”.—[Official Report, 25/1/17; col. 660.]

Will the Minister give the assurance, which he did not give yesterday, that this is the main priority?

Lord Young of Cookham Portrait Lord Young of Cookham
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With respect, I did give those assurances yesterday. I remind the noble Lord that there is a record number of people on the electoral register at the moment, notwithstanding the removal of all the ghost entries when we moved over to IER. I also outlined yesterday a number of initiatives that we are undertaking to drive up registration among exactly those groups the noble Lord has just referred to. We have a specific pack aimed, for example, at social tenants. We are undertaking initiatives with students, and we have a whole range of packs for young people, including one called Rock Enrol!. We are anxious to do all we can to increase the numbers of those who register and then increase the turnout at elections.

Lord Greaves Portrait Lord Greaves (LD)
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My Lords, if people are going to have to provide documentation at polling stations, including documents with photo ID, do the Government realise that quite a few people do not possess any photo-ID documents? The electoral registration authorities will therefore have to provide a document on request for such people. Can the Government guarantee that that will be provided free of charge?

Lord Young of Cookham Portrait Lord Young of Cookham
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The noble Lord is right. Most people will have some form of identification—a bank card, a bus pass, a railcard or an NUS card—but we recognise that some people may have none. That is why, in our response to Sir Eric Pickles, referring to the pilot, we said:

“We intend to invite local authorities to apply to pilot a number of schemes that involve both photographic and non-photographic identification”.

Neighbourhood Planning Bill

Lord Young of Cookham Excerpts
Thursday 26th January 2017

(7 years, 3 months ago)

Lords Chamber
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Moved by
Lord Young of Cookham Portrait Lord Young of Cookham
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That it be an instruction to the Grand Committee to which the Neighbourhood Planning Bill has been committed that they consider the bill in the following order:

Clauses 1 to 3, Schedule 1, Clauses 4 to 8, Schedule 2, Clauses 9 to 12, Schedule 3, Clauses 13 to 42, Title.

Motion agreed.

Combined Authorities (Mayoral Elections) Order 2017

Lord Young of Cookham Excerpts
Thursday 26th January 2017

(7 years, 3 months ago)

Lords Chamber
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Moved by
Lord Young of Cookham Portrait Lord Young of Cookham
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That the draft Orders laid before the House on 28 November 2016 be approved.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, we move from the international to the local. The draft orders we are considering this afternoon, if approved and made, will provide the rules for the conduct of elections for directly elected mayors of combined authorities and the rules by which mayoral vacancies are to be declared, and the procedure for filling them through by-elections. They are essential to enable the first elections of combined authority mayors to take place in May 2017.

The two orders we are considering, if approved and made, will mark a further milestone in implementing agreed devolution deals to date. They are essential for ensuring that elections for the office of mayor can be conducted and any mid-term vacancies filled on a consistent and fair basis.

As noble Lords will be aware, the Government committed in their manifesto to implement devolution deals where there was local support and where such deals would result in benefit to local communities. These deals have been forthcoming. Devolution involves conferring significant powers and budgets on local areas that have agreed to have directly elected mayors, providing that essential single point of accountability for such major new powers.

I remind noble Lords that Parliament has approved, and we have made orders, establishing city region mayors in Greater Manchester, Liverpool city region, Sheffield city region, the West Midlands and the Tees Valley. Furthermore, orders creating such mayors in the west of England and for Cambridgeshire and Peterborough have been laid before Parliament to be considered. If approved, they will be in place in time for them to elect their first combined authority mayors in May. In all these cases, the councils have agreed and consented to having a directly elected mayor.

The orders provide first and foremost for the conduct of the elections for those mayors that will first take place in May this year. The rules will apply in those and subsequent elections. The second and smaller order provides for how vacancies in the mayoral office are to be handled should a vacancy arise following election. Both these orders have been debated in and consented to by the other place, with the vast majority in favour. This support reflects the vital nature of these orders to ensure that mayoral elections for combined authorities can go ahead in May.

Finally, for setting the wider context, orders that will confer devolved powers on these mayors once elected will come forward. The first such order was approved by Parliament before Christmas, devolving powers to the Greater Manchester mayor. Orders devolving powers to the west of England, Cambridgeshire and Peterborough, and the Tees Valley are before Parliament. We will bring orders in the coming weeks for the Liverpool city region and the West Midlands. We will also lay further orders for the Tees Valley and Greater Manchester.

On the specifics of the orders, I emphasise that they should be seen in the context of the full body of electoral law governing local elections throughout England. These orders do not seek to make piecemeal changes to this wider body of law. The rules set out in the Combined Authorities (Mayoral Elections) Order closely reflect the rules that apply to local authority elections, elections of local authority mayors and elections for police and crime commissioners.

The Combined Authorities (Mayoral Elections) Order makes detailed provision about the conduct of the elections for directly elected mayors of combined authorities. Although the order may seem bulky—running to some 151 pages—it is necessary to fully specify all the rules of these elections of combined authority mayors. This full specification of the rules is the approach we use for all other elections.

As I have said, these rules largely replicate the generality of election rules and apply them to the particular situation of combined authority mayors. Therefore, I simply highlight the four areas where special provision for combined authority mayors has been made, because the circumstances of these mayors is such that the standard rules could not appropriately be applied.

First, particular provision has been made for candidate deposits. These are the deposits that candidates must lodge and which are returned to the candidate if their share of the vote is more than 5%. The rules in the draft order provide that the deposit for a mayoral candidate is £5,000. This is the same amount as the deposit for candidates for police and crime commissioners. It is significantly greater than the £500 required for a local authority mayor. The difference reflects, and is commensurate with, both the larger size of the areas over which a combined authority mayor or police and crime commissioner will have jurisdiction and their level of responsibility.

Secondly, there is particular provision for nomination arrangements. This is the number of signatures that candidates are required to collect to be validly nominated for election. With this order, the requirement for candidates for election as combined authority mayors is to secure a minimum of 100 subscriptions—that is, signatures of electors. Moreover, at least 10 of these subscriptions must come from the area of each constituent council; in two-tier areas, from each district council within the area of the combined authority. In cases with more than 10 constituent authorities, candidates will still require at least 10 subscriptions from each area, and so in such a case will require more than 100 total subscriptions. This is a significant increase from the rule for local authority mayors, which requires candidates to secure 28 subscriptions. As with deposits, this increased requirement is commensurate with the increased constituency size and responsibilities of combined authority mayors. The requirement to obtain a number of subscriptions from each constituent area ensures that candidates secure support from the full range of areas, however diverse, within any combined authority. It would prevent for example, candidates being nominated who secure support, say, from one particular part of a combined authority area—perhaps the rural hinterland—but have no support in the urban core.

Thirdly, particular provision is made for candidate spending limits. This is the limit that restricts the amount candidates are able to spend on election expenses during the election campaign. For local authority mayors, candidates are limited to £2,362, plus 5.9p per registered elector in the local authority area. For a combined authority mayor, this limit is £2,362 per constituent council, plus 5.9p per registered elector within the combined authority area. This provision—with the majority of the funding being measured per capita— ensures that appropriate candidate spending limits are set across the range of mayoral combined authorities, which vary significantly in size. Total candidate spending limits under this provision also, when appropriately scaled for numbers of electors, align closely with the spending limit for candidates campaigning for election as Mayor of London.

Noble Lords will notice that all these candidate limits—for local authority mayors, combined authority mayors and Mayor of London—are lower than those for police and crime commissioner elections. This is because candidates for police and crime commissioner will need to spend more in order to communicate directly with the electorate, since in these elections there is no requirement on the returning officer to prepare an election address booklet covering all candidates to be delivered to all electors at no cost to the candidates.

Fourthly, this order allows for the creation of a combined authority returning officer—or CARO—to be appointed by the combined authority. This is similar to the provision creating a police area returning officer—or PARO—for police and crime commissioner elections, and ensures that there is an appropriate individual appointed to oversee the election as a whole.

It should be understood that in both of these roles, the respective returning officers are personally responsible for publishing the notice of elections, administering the nomination process, ensuring that candidates comply with the requirements regarding the content of their election addresses, collating and calculating the number of votes given for each candidate, calculating the result and declaring the result. It is therefore highly important that this role is carried out by a competent individual.

Turning to the Combined Authorities (Mayors) (Filling of Vacancies) Order 2017, this smaller order is necessary to establish the rules by which vacancies are declared in the office of combined authority mayor, and the procedure for filling these vacancies through by-elections. They follow exactly the procedures adopted for other types of local authority. Noble Lords will understand that these provisions are required to be in place in advance of the election of combined authority mayors in May 2017 to ensure that any subsequent vacancies can be appropriately and consistently dealt with.

In conclusion, the draft orders we are considering today are vital to ensure that the democratic elections to these important offices can first take place in May 2017, and that associated arrangements are in place in good time should any mid-term vacancies occur. It is these detailed rules set out in the orders before us today that provide the strong legal framework for these elections. It is such a framework that ensures that all can have confidence that the elections have been fairly conducted and that the outcome of the poll genuinely reflects the democratic wish of local electors. I commend both draft orders to the House.

Lord Shipley Portrait Lord Shipley (LD)
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My Lords, I welcome the discussion of these orders. I remind the House of my vice-presidency of the Local Government Association. I seek clarification on two points in one of the orders, because, broadly speaking, most of what is proposed is not contentious for us.

I have a question about the combination of polls, and my query lies with paragraphs 8.7 and 8.10 of the Explanatory Memorandum. The memorandum says, rightly, that when you combine polls, that produces cost savings. Given that this is a new election, can the mayoral elections be held on the same day as a general election? In other words, might we end up with three elections on one day? I note the following words in paragraph 8.10:

“Government is confident that electoral administrators will be able to effectively administer combined authority mayoral elections and other polls that they may be combined with”.


That says that the Government are confident, but what evidence were they given by electoral administrators? Running three elections at once is clearly more complicated than running two.

My second question relates to the election booklet that the Minister referred to. Is it the intention to distribute that election booklet alongside poll cards? Clearly, if it is a single process, that will reduce costs at a time when local authorities are having great difficulty in balancing their budgets. Having to pay for two separate distributions will be more expensive and unwieldy than if both are delivered together.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab)
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My Lords, I refer the House to my declaration of interests—specifically, that I am an elected councillor in the London Borough of Lewisham and a vice-president of the Local Government Association.

As we have been told, the orders before us today, if approved, will provide the framework and rules for the conduct of elections for directly elected mayors of combined authorities, specifically for the elections taking place in May this year. The second order, as we have heard, deals with the process of addressing vacancies in the office of mayor and sets out how those will be dealt with. I am happy to support both orders before the House this afternoon.

I note that the first order contains matters such as the spending limits and the formula to calculate those limits, the number of voters needed to sign a nomination paper to make it a valid nomination, and other administrative matters which are quite normal for elections.

The noble Lord, Lord Shipley, has raised a couple of points and I shall be interested to hear the reply from the noble Lord, Lord Young of Cookham. However, he may be pleased to learn that in fact I have no questions for him in respect of either order and am content to approve both.

Lord Young of Cookham Portrait Lord Young of Cookham
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It is very good that the noble Lord has no questions for me; it gives me more time in which to answer the questions asked by the noble Lord, Lord Shipley. I welcome the general approval of the orders that have been laid before us.

The noble Lord, Lord Shipley, is right to say that you can have more than one election on one day. Indeed, when I fought three general elections, they were held on the same days as the county council elections in Hampshire. In England, it is common for more than one poll to be held on the same day. As the noble Lord said, this helps to enhance voter turnout and produces cost savings.

However, there could be an issue in 2020, given the number of polls scheduled to take place. We will have a UK parliamentary general election, police and crime commissioner elections in England and Wales, Greater London Authority elections, local government elections in England, local authority mayoral elections in England and elections for mayors of combined authorities. I think that the number of polls scheduled to take place in 2020 raises issues for electoral administrators and administrative processes. We will consult the Electoral Commission, local authorities and administrators to make sure that there are no difficulties when we reach that date, and of course we have some time in which to plan.

The suggestion of combining the poll cards with the election addresses in one delivery seems to me to be common sense, if it can be done; I do not know whether the dates coincide. We have just had some in-flight refuelling—I have been handed a note to say that the precise timing of the distribution of booklets will be for the returning officer, the CARO. However, I take the point, and will pass it on, that there may be some economy if the poll cards and election addresses could be combined in the same delivery.

Motions agreed.

Combined Authorities (Overview and Scrutiny Committees, Access to Information and Audit Committees) Order 2016

Lord Young of Cookham Excerpts
Thursday 26th January 2017

(7 years, 3 months ago)

Lords Chamber
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Moved by
Lord Young of Cookham Portrait Lord Young of Cookham
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That the draft Order laid before the House on 28 November 2016 be approved.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, if approved and made, the draft order we are considering today will provide the basis for a robust and consistent approach to accountability in combined authorities across the country. The order will be another key step in implementing the agreed devolution deals and is essential for ensuring effective accountability for the new budgets and powers devolved to directly elected mayors and combined authorities. I remind noble Lords that Parliament has approved, and we have already made, orders establishing city region mayors in Greater Manchester, the Liverpool city region, the Sheffield city region, the West Midlands and the Tees Valley. Furthermore, orders creating such mayors in the west of England, for Cambridgeshire and Peterborough have been laid before Parliament to be considered and, if approved, will be in time for elections in May.

These devolution deals confer greater powers and budgets on the combined authorities. The order puts in place a robust framework to ensure that once powers and budgets are devolved and mayors elected, the actions of combined authorities and mayors are openly and effectively scrutinised and those responsible held properly to account. The approach we are taking in this order, therefore, is to mirror the current scrutiny arrangements in local government and to strengthen them where necessary. Such strengthening, for example, includes requiring at least two-thirds of members to be present before the business of an overview and scrutiny committee can be transacted. It also includes a requirement for any independent chair of an overview and scrutiny committee—that is a person who is not a member of or otherwise associated with any of the constituent councils or the combined authority—to go through an open and transparent recruitment process.

The order will be supplemented by practical guidance provided by the Centre for Public Scrutiny—chaired by the noble Lord, Lord Kerslake, who was here a moment ago—on how these arrangements will operate on the ground. Officials are working closely with the Centre for Public Scrutiny, and we are very grateful for the centre’s support and commitment to provide this practical guidance. It is through such practical guidance that a strong culture of scrutiny can be built to ensure that transparency and scrutiny are embedded in the day-to-day operation of combined authorities and their mayors.

Along with such guidance, it will be important that combined authorities ensure that scrutiny is adequately resourced and that there is sufficient capacity and expertise for the scrutiny function to be effective and credible. This is essential if combined authorities are to fulfil their duty to ensure value for money.

The order provides for a core legal framework for scrutiny arrangements in combined authorities, which the Government have developed in consultation with local areas and relevant stakeholders, including the National Audit Office, the Centre for Public Scrutiny, existing combined authorities and those involved in establishing new combined authorities. This order is the first piece of secondary legislation to be made under paragraphs 3 and 4(3) of Schedule 5A to the 2009 Act. It makes provision for the composition and proceedings of overview and scrutiny and audit committees, similar to the provisions in the Local Authorities (Committee System) (England) Regulations 2012 and the Local Authorities (Executive Arrangements) (Meetings and Access to Information) (England) Regulations 2012. The order, if made, will commence after the new combined authority mayors take office in May 2017.

--- Later in debate ---
Lord Young of Cookham Portrait Lord Young of Cookham
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My Lords, the Hansard report of what the noble Lord just said should be sent to the members of every overview and scrutiny committee throughout the country in order to get an insight into how these committees can effectively further local democracy.

I will deal with some of the questions that were raised by the noble Lord, Lord Shipley. First, yes, the template that we are setting out today will apply not just to the authorities already up and running but to all combined authorities, whether or not they have a mayor—so existing and future.

The noble Lord then asked about risk. The 2016 Act sets out the requirement to establish an audit committee and gives these committees the power to review and scrutinise the authority’s financial affairs, including the,

“risk management, internal control and corporate governance arrangements”.

He asked whether we would monitor the appointment of the independent members to make sure that they were genuinely independent. Yes, we will. As for times, these are maximum times, and I may be able to say a little more about that in a moment.

The noble Lord also mentioned the absence of a governance framework. The order provides the broad legislative framework, while the guidance, which the Centre for Public Scrutiny is preparing, will help each combined authority to develop its detailed framework and operational arrangements for scrutiny. Officials worked with both the NAO and the centre in the development of this legislation, and their proposals have largely been included. We will work closely with the CfPS on the guidance, which it is going to publish shortly.

On access to information and the ability to summon, the overview and scrutiny committee has access to information powers, including the power to require the mayor, officers and members of the combined authority to come before the committee and answer questions and give evidence. The combined authority will establish an O&S committee and the order requires that the majority of the members of that committee must be constituent councillors. It is for the combined authority to determine the size of the committee, taking into account the political balance requirement. It will be serviced by officers of the combined authority, who will indeed need to have the necessary resources to make sure that it can discharge its duties.

As to whether decisions will open to the public, the minutes of the committees are public, except that personal and confidential information, as defined in the order, will remain unavailable to the public.

We have dealt with the issue of holding the mayoral elections on the same day as a general election. There may be some other questions that the noble Lord asked which I have not answered, in which case I will write to him. He can get up and ask me again, but the chances are that I will still say, “I will write to the noble Lord”.

Lord Shipley Portrait Lord Shipley
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May I just clarify the Minister’s very helpful comment on officers of the combined authority attending overview and scrutiny meetings? The officers of a combined authority will administer the work of the overview and scrutiny committee. The Minister may prefer to write on this, but can they be the same officers as those who are administering the combined authority? In other words, there is a question about the independence of advice that is given to the overview and scrutiny committee. Who decides, for example, what gets on to an agenda of a meeting and how do the members of the overview and scrutiny committee know what they should be discussing? Presumably, the officers of the combined authority who are managing the work of the overview and scrutiny committee will tell them what that is, but I hope that when guidance is issued, it will be made absolutely clear that an overview and scrutiny committee must be given the maximum information possible to enable it to do its job properly.

Lord Young of Cookham Portrait Lord Young of Cookham
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I think I need to write to the noble Lord. I understand the point he is making, which is that there could be a conflict of interest on the part of the employees of the combined authority who may be servicing the O&S committee but may also be employees of the authority doing something else, so one needs some form of Chinese wall to make sure that the O&S committee gets the information it needs, even if that may embarrass some of its fellow employees on the combined authority.

The combined authority must appoint a scrutiny officer whose role is that of scrutiny, which is helpful. As I say, perhaps I may write to the noble Lord to amplify the issues he has raised about conflicts of interest, Chinese walls and so on. I commend the order.

Motion agreed.

Voter Registration

Lord Young of Cookham Excerpts
Wednesday 25th January 2017

(7 years, 3 months ago)

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Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark (Lab)
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My Lords, on behalf of my noble friend Lady Kennedy of Cradley, and at her request, I beg leave to ask the Question standing in her name on the Order Paper. I refer the House to my registered interests.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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That is a request the noble Lord was not in a position to refuse. The Government allocated £7.5 million to promote registration prior to the EU referendum, and a record 46.5 million people are now registered to vote. Online registration has made it easier and faster to make an application to register, with 75% of the 23 million applications made since the introduction of individual electoral registration using this method. The Government aim to further streamline the annual registration canvass and to work closely with the electoral community and civil society organisations to remove barriers that deter underregistered groups from joining the register.

Lord Kennedy of Southwark Portrait Lord Kennedy of Southwark
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My Lords, significant local elections are taking place this May, and millions of people are still not registered to vote. What are the Government going to do about this? Their response to date has been feeble, ineffective and lacking in any policy perspective other than to do as little as possible.

Lord Young of Cookham Portrait Lord Young of Cookham
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With respect, I would reject the accusations that we have done very little. As I said, we allocated £7.5 million last May, ahead of the EU referendum, for a whole range of voter registration activities, and we now have a number of targeted initiatives for those who are underregistered—black and ethnic-minority groups, social tenants, tenants in the private rented sector, young people and students. We are developing those initiatives in order to drive up the numbers registered, which, as I said a moment ago, now stand at a record level.

Lord Rennard Portrait Lord Rennard (LD)
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My Lords, what would be the problem with amending the letter sent to young people informing them of their national insurance number so that it also told them how to use that number to register online? What would be the problem with extending across Great Britain the system successfully used in all Northern Ireland schools whereby the electoral registration process is undertaken at schools, or with extending across all universities in the UK the system used at Sheffield University for combining electoral registration with registration at the university, thereby ensuring that 76% of its students are registered to vote, compared with only 13% in other HE institutions of a similar size? Are the Government not simply dragging their feet on voter registration for young people?

Lord Young of Cookham Portrait Lord Young of Cookham
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My Lords, there were three questions there. On the first, I am all in favour of what is called the nudge, so that when people get notified of their national insurance number they are also encouraged to vote. As for Sheffield, two weeks ago, on the Higher Education and Research Bill, we had a very good debate on the Sheffield initiative, which was part-funded by the Government. We are in the process of analysing that initiative to learn the lessons from it, and when we have done that we will be in touch with other further and higher education institutions to see whether that is the right model for them, or whether there are other models that might work even better. We are determined to do all we can to ensure that no individual is left behind and no community is unregistered to vote.

Lord Cormack Portrait Lord Cormack (Con)
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My Lords, I ask my noble friend a question that I have asked his predecessors many times. What is the logical case against compulsory registration, particularly bearing in mind that it is technically an offence if you do not register?

Lord Young of Cookham Portrait Lord Young of Cookham
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I understand that, technically, it is not an offence if you do not register. It is an offence if you do not reply to some correspondence from the electoral registration officer. I am sorry to disappoint my noble friend, but I will give him exactly the same answer that he received from my noble friend at the Dispatch Box a few weeks ago. We have no plans to introduce compulsory registration.

Lord Watts Portrait Lord Watts (Lab)
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My Lords, could we do away with all this nonsense by introducing ID cards? Would that not resolve this problem and many others?

Lord Young of Cookham Portrait Lord Young of Cookham
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Again, I reply in a similar vein. The Government have no plans to introduce ID cards.

Lord Lexden Portrait Lord Lexden (Con)
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Will my noble friend look at the Northern Ireland schools initiative mentioned by the noble Lord, Lord Rennard, which has been commended in this House across parties on a number of occasions?

Lord Young of Cookham Portrait Lord Young of Cookham
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Yes, I am aware of the initiative in Northern Ireland. The advice that I have received is that the EROs are already free to work with local schools and colleges in their areas. Many already do so. Northern Ireland registration is different from the rest of the UK, so the schools initiative may not necessarily translate across to the rest of the UK.

Baroness O'Neill of Bengarve Portrait Baroness O'Neill of Bengarve (CB)
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Does the Minister agree that Northern Ireland gives us another reason to think about compulsory registration? The Government have maintained that the common travel area will continue after Brexit. I do not see how that can be done except by people having ID cards or passports that are biometrically sophisticated and carried by all of us. It is no good just saying, “Let the illegals identify themselves”.

Lord Young of Cookham Portrait Lord Young of Cookham
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That goes way beyond my negotiating brief and takes us into very difficult territory about the future of the common travel area in Northern Ireland. I repeat that we have had a debate about ID cards and the Government have made their position clear. We are not minded to introduce them in the UK.

Baroness Symons of Vernham Dean Portrait Baroness Symons of Vernham Dean (Lab)
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My Lords, have the Government done any calculations about the demographics of the electorate in coming years? Can the Government give any idea of the number of people aged 18 who will be joining the electoral register and the rate of attrition among older people who will be leaving the electoral register?

Lord Young of Cookham Portrait Lord Young of Cookham
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The short answer is no. But the noble Baroness will be pleased to hear that, since IER was introduced, 5.7 million people between the ages of 16 and 24 have joined the register, so we have had some success in getting that end of the register backfilled. So far as the other half of her question is concerned, I will have to write to her.

Parliamentary Proceedings: Statistics

Lord Young of Cookham Excerpts
Wednesday 18th January 2017

(7 years, 3 months ago)

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Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, I thank the noble Lord, Lord Butler of Brockwell, for this debate and for the array of big hitters he has tempted away from the long table. With some double-counting, we have a professor of government, a Cabinet Secretary, a Clerk of the House of Commons, three government Chief Whips, the Convenor of the Cross Benches, a Lord Chief Justice, a Lord Chancellor, a Lord of Appeal in Ordinary, two Leaders of the Commons, the Leader of the Opposition and a Lord Privy Seal. Between us, we could provide the entire cast for “Iolanthe” and “Trial by Jury”.

The noble Lord, Lord Butler, has long been associated with initiatives to promote better scrutiny of legislation, and he and I have spent many weekends at Ditchley Park, with others, as part of the Better Government Initiative considering reform in this area. In the words of Sir Humphrey, it would be a brave Minister who refused to consider a proposal with the impressive pedigree of the noble Lords who have spoken this evening.

I want to reverse the normal order in which Ministers respond to these debates by addressing head-on the specific and narrow proposal from the noble Lord and then considering the broader context in which it is placed and addressing some of the other points raised in the debate.

The noble Lord asked whether the Government had any plans to include in the Explanatory Notes statistics on the time taken to debate each part of a Bill. The short answer is that we do not—but that does not, of course, rule out further consideration of the proposition put forward so eloquently this evening by him and others. The reason we do not is, first, because the Explanatory Notes are designed to help the readers of legislation understand its legal effect. Secondly, the notes to Acts already include the Hansard column references to debates at each stage, so the Act is permanently accompanied by a record of how each House scrutinised the legislation in its various stages.

The raw data which the noble Lord is after on the actual time spent on each part, which goes beyond what is currently published, are already available in the public domain, as he said, since Hansard includes the times when consideration of each part of the Bill begins and ends. So, against the background of what I have said about the Government’s proposals, perhaps the noble Lord, Lord Butler, as a first step might want to ask the authorities in both Houses to conduct a pilot to publish the data he is after in respect of some suitable Bills.

Another option would be to see whether the Hansard Society might produce some historical data, and we could then see whether this adds value to the legislative process or produces the outcomes that the noble Lord seeks in terms of influencing behaviour. I will certainly bring to the attention of colleagues in government the proposition we have been considering, and I noticed the veiled threat that if action is not taken a whole series of Parliamentary Questions might be tabled to elicit, at some cost, the information that he has asked to be included in the Explanatory Memorandum.

I shall add a health warning at this stage and echo some of the points made by others as the publication of these data may give an incomplete picture of the time spent. A Bill that has been published in draft first, that has been extensively considered and amended and has had the wrinkles ironed out may need less time than a Bill not published in draft. Key clauses in a Bill may have been considered elsewhere, for example in an opposition day debate, or may have been examined in detail by a Select Committee. A good example of this was the work of the Home Affairs Select Committee into the Psychoactive Substances Bill when the Bill was before Parliament. Simply taking at face value the time spent on a specific Bill might underestimate the volume of scrutiny that it had attracted.

I turn now to some of the broader issues that were raised. In doing so, I recognise the force of many of the criticisms that have been made about how legislation is considered. I am sure that your Lordships will agree that this Prime Minister’s aspiration to publish more Green and White Papers can only be a good thing—a point underlined when my right honourable friend the Leader of the House of Commons recently gave evidence to the Constitution Committee and said he was keen to see more legislation preceded by Green and White Papers. That committee is currently conducting an inquiry into the legislative process, and two members of it have spoken in our debate today.

Lord Young of Cookham Portrait Lord Young of Cookham
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Three members. Again, I will ensure that members and officials note the contributions that have been made in this debate. Were the Constitution Committee to be persuaded by the arguments that have been put forward this evening and to include that in its final report, that would of course be a significant step forward.

At the same evidence session, the Leader also expressed his support for pre-legislative scrutiny. So far in this Parliament, we have seen several major pieces of legislation published in draft, including the Wales Bill and the then Investigatory Powers Bill. It is the Government’s intention to publish legislation for pre-legislative scrutiny wherever possible. The draft Public Sector Ombudsman Bill was published only last month, following hot on the heels of draft tax legislation at the Autumn Statement.

I endorse what the noble Baroness, Lady Smith, and others have said about the value of scrutiny by your Lordships’ House, which the Government value enormously. I recognise that it may be possible to make further progress, and I will deal with some of the suggestions in a moment. I know that many of your Lordships are concerned that Bills are not subject to enough scrutiny in Parliament, particularly in the other House. I just ask your Lordships to remember that each House has its own style, and we should be diplomatic in discussing how the other place conducts itself, not least so we do not precipitate a domestic dispute and retaliatory action from down the Corridor.

I would like to address my noble friend Lord Ryder’s concerns about programming. Like him, I would not support the use of the guillotine by any Government unilaterally to curtail discussion on controversial Bills in an overprogrammed legislative Session. This is what has happened in the past, and I have voted against such Motions. But here I find myself in agreement with the noble Baroness, Lady Taylor, in that this does not mean that it is wrong for business managers to seek agreement among themselves and then to put to the House a proposal for the passage of a particular Bill. This can avoid wasting valuable time on procedural Motions and enable the House do to its job properly.

I had to sit opposite the noble Baroness, Lady Taylor, on the right-to-buy legislation, I think, discussing at length the timetable Motion in Committee. I think we would both agree that that was not the best use of time for either of us. Indeed, as shadow Leader of the House in the other place in the late 1990s, I added my name to some programme Motions tabled by the noble Baroness where I thought adequate time had been proposed, as did the then shadow Leader from the Lib Dems, the noble Lord, Lord Tyler. Both MPs and stakeholders outside value the certainty that programme Motions deliver, so that they know when particular measures will be debated in a Bill and can plan their lives appropriately. That is the model that has been put in place for the last five years and is in marked contrast to my earlier years in another place. The noble Lord, Lord Butler, referred to the 2005 Finance Bill, and I very much hope there will be no recurrence of what happened then.

No programme resolutions have been divided on since the 2012-13 Session. Although I was either Leader or Chief Whip for part of the time, the credit goes as much to opposition parties for not making unrealistic demands. Nor was it the case that this is all a Front-Bench stitch-up between the major parties. Back-Benchers, who are more independent than at any time previously—as I know to my cost as a former Chief Whip—could have forced a Division on these programme Motions, as could have the minor parties. But they did not. The fact that this and the previous Government have relied less on draconian programme Motions is testament to the more mature approach now adopted in the other place, exemplified by the lack of Divisions on those Motions. Things have changed since my noble friend left the House in 1997.

Following on from this, the Government have consistently allocated a more generous amount of time for Bill stages in the Commons. If we look at the current Session, three Bills had multiple days for Report in the other place, something which was previously very rare. On the 12 Bills which have had Report in the Commons, all groups of amendments were reached. Twelve Bills have been committed to Public Bill Committee, and all but one Bill has reported early. Only the Public Bill Committee on the Digital Economy Bill was still debating new schedules when time ran out, but all the other provisions in the Bill as proposed by the Government had been scrutinised. No knives have been used to control debate in Public Bill Committee in any programme resolutions since the 2012-13 Session.

Time spent is the subject of this debate and, by the end of last year, the amount of time spent in this Session in the Commons scrutinising Bills in Committee was 151 hours and six minutes. Oral evidence has been heard from 124 witnesses, in eight Public Bill Committees. By the time Parliament rose for the Christmas Recess, it had spent a total of 472 hours and 15 minutes debating the Government’s legislative programme. This averages out to more than 23 hours per Bill. Although exact comparisons between the two Houses are difficult, your Lordships may be interested to know that the Whips estimate that the Commons spent 247 hours and 22 minutes debating government legislation, while your Lordships’ House spent 224 hours and 53 minutes.

We should not forget that the other place has often been more innovative and introduced reforms that have aided parliamentary scrutiny. These include carryover Bills, which in practice mean that Parliament has more time to scrutinise such Bills, but also public evidence sessions before Commons Committee stage, which have been popular with stakeholders and MPs.

A number of issues were raised, which perhaps I can deal with briefly. A number of noble Lords referred to the legislative process and delegated powers, as well as to Henry VIII. My right honourable friend the Leader of the House has written to the Constitution Committee in connection with its inquiry a letter headed “The legislative process: delegated powers”. It is a six-page letter and Henry VIII features quite prominently. I hope that in due course the letter will get into the public domain because it addresses some of the issues raised in this debate about the scrutiny of secondary legislation and Henry VIII powers.

On the volume of legislation, in the 2014-15 Session there were 26 Bills, while in the current one there are also 26. Looking back, in 1997-98 there were 53 and in 2001-02 there were 39. We are actually at the lower end of the spectrum. In terms of pages there is similar progress: in 2014 there were 2,640 pages but in 2000 there were 3,865. So it is not the case that there have been a huge number of extra pages of legislation when one looks broadly over the last 15 years.

I am conscious that I am already into injury time. I would like to write to noble Lords to deal with some of the issues that have been raised. I recognise that there is scope for improvement and I am interested in many of the suggestions that have been made in this debate. Once again, I thank the noble Lord, Lord Butler of Brockwell, for instituting this very agreeable exchange of views.

Northern England: Opportunity and Productivity

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Thursday 12th January 2017

(7 years, 4 months ago)

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Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, the publication of the IPPR’s annual State of the North report has given us the raw material for a debate on the state of the north, and the noble Baroness, Lady Massey, has provided us with the opportunity. I am grateful to her for her opening contribution, particularly her focus on the way that social mobility has changed over generations. I thank her for setting the scene for the debate, and all noble Lords who have contributed. Having sat through the debate for nearly two and a half hours, I have to say that there is very little with which I disagreed. Indeed, as somebody who for 41 years in another place represented constituencies in London and then Hampshire, I felt a growing sense of guilt at the apparent preferential treatment that my constituents had received for such a long time, compared with those in the north. I hope to try to reassure the House that the Government are determined to see a fair distribution of resources.

The noble Baroness, Lady Massey, quoted from the summary of the IPPR report, as did other noble Lords. It is worth quoting one sentence:

“All this, however, presents new opportunities”.

Maximising the full potential of the economy of the north, which has in many ways lagged behind that of London and the south-east, is vital. The noble Lord, Lord Bragg, in a speech that could have come out of “Henry V”, exhorted us to raise our sights and unlock the potential of the north. As the most reverend Primate the Archbishop of York said, it is important for those who live and work there that we should do this. I found what he said about the human resilience of those who live in the north very moving. It is in the interests of not just the north but the whole of the UK that we should unlock the potential. The point made by the noble Lord, Lord Curry, about the contribution to the balance of payments is well worth making—the fact that there is a major contribution to the balance of payments, which at the moment is in deficit. We should do all we can to unlock that potential.

Noble Lords made many helpful suggestions in the debate about how we can raise our productivity and bring about a sustained rise in wealth, prosperity and opportunity. I hope to respond to as many points as I can in the time available, but where I cannot, I will write to noble Lords and deal with their issues. We have debated this issue a number of times in this Chamber. We had an exchange at Questions on Tuesday. The IPPR report helps us make further progress and I am glad it found favour in the eyes of my noble friend Lord Cavendish, who reminded us of the importance of small and medium-sized enterprises. Along with the noble Lord, Lord Liddle, he made a plea for a reform of governance in Cumbria. I will certainly pass those comments on to the Secretary of State at DCLG. The question of whether Cumbria is going to get the importance it deserves may be answered in the forthcoming by-election up in Copeland, which may focus the minds of all political parties on making sure that that part of the world gets a square deal, but that is beyond my brief.

We are determined to take action to support and strengthen local economies across the north. As noble Lords will be aware, that was an aim pursued with unwavering enthusiasm and dedication by my noble friend Lord O’Neill of Gatley in his work at the Treasury, and I pay tribute to his contribution. In response to the point made by the noble Lord, Lord Monks, I reassure him that colleagues in government will continue to work to realise my noble friend’s vision for a true northern powerhouse—one with a vibrant, resilient and growing economy; a flourishing private sector; modern and efficient transport links; and a more highly skilled population—and to do so, as we move to leave the European Union, with a negotiated outcome that works for all parts of the United Kingdom and shows the world that we are open for business. I hope to say something later about the very forceful points that were made about a voice for the north. The noble Lord, Lord Shipley, reminded us of the importance of the single market and produced a six-point plan, to which he will get a six-point letter in due course.

Reading the IPPR report, I was struck by some of the deeply ingrained challenges that we are trying to overcome; in particular, the productivity gap, which has been the case for decades now and, indeed, was picked out for mention in the Motion before us. Currently, productivity in the north is 13% lower than the UK average and 25% lower than in the south. Clearly, there is a complex range of factors behind that, many of which noble Lords have highlighted previously and did so again today. I will pick up three.

First, connectivity remains a challenge for many people and businesses. To give just one example, congestion on the M62 means that it can take more than two hours to travel the 40 miles between Manchester and Leeds. That is not only frustrating for local people but a barrier to local businesses and the jobs and growth they can bring, and potentially a deterrent to inward investment. I take the point made by the right reverend Prelate the Bishop of Leeds that connectivity is not just linear. What we need is a spider’s web, rather than a telephone wire, to reach out to the communities that are not directly on the main roads or railway lines. I will write to the noble Lord, Lord Alton, about the stations he would like to see reopened. As a former Secretary of State for Transport, I share that enthusiasm.

Secondly, skills have consistently lagged behind the south at all levels. The north has a higher proportion of people with no qualifications than the UK average and a lower proportion of graduates. I will certainly pursue the suggestion made by the noble Lord, Lord Sawyer, about the role of vice-chancellors in making progress in this area.

Thirdly, it is still more difficult to set up and grow a business in the north compared with the south. Connected to that, we find a lower level of entrepreneurialism in this region, although in saying that I take nothing away from all the dynamic and resilient businesses that exist in the north, some of which were referred to in the debate. We were reminded by the noble Lord, Lord Mawson, and others of the history of the great entrepreneurs of the north, particularly those in Bradford.

The IPPR report identifies some excellent examples of successful local economies but, in short, there remain clear areas for improvement, which were highlighted in the debate. The northern powerhouse strategy we published at the Autumn Statement seeks to address these underlying challenges. In saying that, of course I recognise that there are other issues that we need to address—the noble Baroness, Lady Massey, mentioned housing—that are not touched on in the report. We know that lasting changes will not happen overnight, but already we are making substantial progress, as the report acknowledges.

There are signs that our hard work is beginning to pay off. Foreign investors are responding. In 2015-16 the north of England saw inward investment projects increase by nearly a quarter from the previous year, faster than the UK average. In October, the French rail builder Alstom confirmed that it will build a £20 million technology centre in Liverpool, creating up to 600 jobs. In the three months to October 2016, the north saw a record number of people in work—more than 7 million people—and an employment rate of 72.5%, close to its record high. The noble Lord, Lord Liddle, and others mentioned other successful business that either have been established or are growing.

I shall summarise briefly some of the action that we have been taking to support that success, starting with our work to improve the transport networks that businesses and hard-working commuters rely on every day. We are investing £13 billion in transport in the north over the course of this Parliament. Already we have started to take forward important improvements such as upgrading the A1 in North Yorkshire to motorway standard, upgrading the trans-Pennine rail route to take nearly 10 minutes off journey times between Manchester and Leeds and establishing Transport for the North, to which the noble Lord, Lord Prescott, referred. Last night I was reading his intervention in what I think was one of the first debates of this Parliament when he spoke about his work on the Northern Way. I pay tribute to what he did when he was in government to improve infrastructure in the north.

At the recent Autumn Statement we went further, committing to upgrade the A66 to a dual carriageway across the Pennines and to make major improvements to Manchester’s M60 ring road to ease congestion. The noble Lord, Lord Liddle, asked about Cumbria’s coastal railway. The new rail franchise for the northern and trans-Pennine express networks will deliver altogether more than 500 new railway carriages and 2,000 extra services each week. This franchise includes the Cumbrian Coast line to which he referred. Improving connectivity is vital to unleash the north’s economic potential so that the whole can be greater than the sum of its component parts.

As my noble friend Lady Eaton said, better transport links make it easier for people to find jobs, for firms to find workers and for ideas to be shared and developed. That is not just the case domestically within the UK, but in terms of international links as well. In my time as Secretary of State for Transport, one of the things that I took forward was giving the go-ahead to a second runway at Manchester Airport, which is now the UK’s third busiest airport—the busiest outside the south-east.

Skills was a theme that ran through our debate, mentioned by the noble Lord, Lord Beith, the noble Baroness, Lady Pinnock, and others. We have been working to ensure that people have the right skill sets for their chosen career. We have welcomed the findings of Sir Nick Weller’s report into schools performance in the north and committed £70 million to improve outcomes in northern schools. We continue to explore how we can improve everything from careers advice to high quality apprenticeships and world-class teaching. There is more that I would like to say, but time precludes it. However, to respond to the noble Baroness, Lady Warwick, who asked if the Government would consider housing products for the graduate market, in the Northern Powerhouse Strategy we have committed to work with the northern city regions and other local stakeholders to develop innovative proposals for attracting skilled workers. We are funding groundbreaking projects to develop the north’s strengths in science, the arts and sport, including providing £235 million to the Sir Henry Royce Institute for Advanced Materials.

I turn briefly to our responses to the IPPR report. As I have said, a lot of activity is already taking place. The report makes three suggestions as to how we can go further. The Government will work to get the best possible deal for all parts of the United Kingdom as we leave the EU, engaging with businesses up and down the country and continuing to back northern trade. Listening to this debate, I was struck by the number of representations about the potential relative disadvantage of the north in accessing the decision-makers. Without going beyond my brief, that is certainly a point of which my colleagues in government should be aware, given the strength of feeling that has been expressed throughout this debate. That is one of the most important lessons that I have learned.

Our industrial strategy will represent a comprehensive plan for the success of British businesses across all sectors and places, positioning the UK for long-term, sustainable growth as we move towards exiting the EU. A consultation paper will be published shortly.

Lord Prescott Portrait Lord Prescott
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Will the Minister explain the difference between—as pointed out in the report—a place growth strategy and the other critical northern house which tends to get debated? Is it the Humber?

Lord Young of Cookham Portrait Lord Young of Cookham
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I hope the document on industrial strategy to which I have just referred will shed some light on the important issue that the noble Lord has raised. I hope he will excuse me if I move to my final comments. I am conscious that I have not dealt with a whole range of issues about devolution to local government, about local enterprise partnerships, about employment and wages and about those museums—to which I have an answer that will now have to be converted into a letter.

We are determined to keep up our relentless drive further to enable the sustainable economic success of the north. We are taking action on a number of fronts to tackle the deep-seated structural issues that have held back the economic prosperity of the north for too long. There is more to do. To continue our progress, we will keep working hand in hand with those who know best: local businesses, authorities and other organisations. Together, we can keep seizing the opportunities for growth that benefit not only businesses and individuals in the north, but the UK economy as a whole.

Housing and Planning Bill

Lord Young of Cookham Excerpts
Monday 25th April 2016

(8 years ago)

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Moved by
138B: Clause 192, page 101, line 15, at end insert—
“( ) section (Tenants’ associations: power to request information about tenants);”

Bank of England and Financial Services Bill [HL]

Lord Young of Cookham Excerpts
Tuesday 15th December 2015

(8 years, 5 months ago)

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Lord Bichard Portrait Lord Bichard (CB)
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My Lords, in declaring my interest as chairman of the National Audit Office Board I hope that I will not be precluded on this occasion from thanking the Minister for bringing forward the amendments to Clause 11, which I am happy to support. In large part, the amendments deal with the concerns which the NAO had with the original draft, in particular by deleting the Bank’s power of veto over NAO value-for-money studies. As a result, these amendments protect the independence of the NAO and necessarily enhance the accountability of the Bank. I am grateful to the noble Lord and Members across the House who have helped to achieve a very happy outcome.

Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, I also welcome the progress that my noble friend has made since we discussed this matter on 9 November, when concern was expressed that we had not got the interface between these two independent institutions in the right place. I was delighted to hear that peace has broken out between these two institutions. My noble friend said that the memorandum of understanding would be published in due course. My noble friend Lord Higgins pressed him a little further. Will it be available during the passage of the Bill, which started in this House and will go to another place, because I am sure that it would be of interest? Finally, does one really need proposed new paragraph (d) in Amendment 9 in the memorandum of understanding? If under proposed new paragraph (c) a procedure has been established,

“for resolving in a timely fashion any dispute”,

why does one need paragraph (d), which asks for a procedure where the dispute has not been resolved?

Baroness Kramer Portrait Baroness Kramer
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My Lords, I will not detain the House very long. The National Audit Office and the Bank of England are crucial institutions. It is absolutely necessary that both are not only independent but perceived to be independent. In earlier stages of this Bill, we asked that those two organisations should be brought together to come to a common understanding and agreement of how we could go forward. That has been achieved and, with that, we are pleased that “peace has broken out”—to quote what has just been said. It was essential that that should be done and I congratulate the Minister on the role that he played in this.

Bank of England and Financial Services Bill [HL]

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Monday 9th November 2015

(8 years, 6 months ago)

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Lord Young of Cookham Portrait Lord Young of Cookham (Con)
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My Lords, I will make a brief intervention in this debate as a former Treasury Minister and ex officio member of the PAC. As we have heard, Clause 11 sets up a new interface between two public institutions, both of which are independent: on the one hand the Bank of England, independent since 1997, and on the other the Comptroller and Auditor-General, who has been independent for a lot longer. In establishing this new interface, clearly one has to get the balance right.

From the exchange before the Treasury Select Committee last month, it is quite clear that the original drafting caused difficulties for the Bank of England and was amended. If one looks at Mr Roxburgh’s answer to a question posed by Helen Goodman, it is clear that there was an agreement that there had been a change in the drafting because of the reservations of the Bank of England. However, it is quite clear that the clause as now drafted causes difficulties for the other partner, namely the Comptroller and Auditor-General. The briefing note says that it “greatly limits” the Comptroller and Auditor-General’s freedom of action and that it does not provide him with,

“the independence that is essential to accountability”.

If one looks back at the C&AG, there is no history of him looking at policy issues in his investigations. There is of course concern that if the Bank of England is given an exemption of this nature, other institutions subject to audit by the C&AG might seek a similar exemption—the BBC is a possible example. At Second Reading my noble friend who wound up the debate said that the concerns that were ventilated then were,

“well argued and should be taken very seriously”.—[Official Report, 26/10/15; col. 1082.]

Obviously, it is important to avoid a public spat between two important independent institutions. The sensible way forward is for the Minister to promote bilateral discussions between the NAO and the Bank of England to see if they can come up with a memorandum of understanding, which, if necessary, might then be incorporated into the Bill if an amendment is necessary. However, there should be some discussions before Report so that there can be an agreement on the appropriate terms of trade between these two public bodies.

Baroness Kramer Portrait Baroness Kramer
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My Lords, I will briefly join in the debate. We have two very highly regarded independent organisations—the Bank of England and the NAO. I say to the Government that it is unfortunate that legislation has come forward without resolving the relationship between the two of them. This House should not be in this position today, and neither should either of those two institutions. I very much hope that the Government will take the advice proffered and bring these various parties together to get a resolution here. Both are key institutions that need to have their independence appropriately protected.

In answer to the question asked by the noble Lord, Lord Higgins, the two lines about which he was concerned a moment ago, which are taken out and replaced by what he read as almost two identical lines, almost get to the crux of this matter. The amendment strengthens that assurance that the NAO and the Comptroller and Auditor-General do not in any way seek to question the merits of policy objectives. It is trying to make that absolutely clear by putting in a stronger statement to that extent. The problem the NAO has, as the noble Lord, Lord McFall, said, is that due to the way in which the language is now drafted, the Bank effectively now has a veto over which studies are undertaken. Frankly, that is, I think, unacceptable to every party.

We in Parliament depend very much on the NAO and the reports it provides to us. It is very important for us to be able to receive that information, knowing that it is impartial and independent, for us to be able to perform the role we play. All the discussions today have talked of the importance of oversight. While we very much respect the Bank of England, we are all incredibly conscious that it has made very serious mistakes in the past which have cost us dear, and that we all need to play a role in interacting and making sure that we understand and are appropriately taking on our responsibilities toward that institution. Frankly, it is very hard to see how we in this House or in the other place can do that without effective reporting from the NAO.

I hope that the Government will take this matter away for reconsideration because these are significant concerns. I take great heart in hearing from the noble Lord, Lord McFall, that the Federal Reserve board in the United States is one of the bodies on this globe that most asserts its independence and integrity. The Federal Reserve accepts a similar kind of oversight from the US Government Accountability Office, and it seems to me that we have a template there. If it works for the Federal Reserve, surely it can work for the Bank of England.

I hope that these amendments will be taken exceedingly seriously. While the noble Lord, Lord Bichard, is not in a position to speak himself, there are many in this House, including the noble Lord, Lord Higgins, and the noble Baroness, Lady Noakes, who will be able to appreciate the importance of the points that he would have made had he had the opportunity.