Contracting Out (Functions relating to the Royal Parks) Order 2016

Earl of Clancarty Excerpts

Monday 24th October 2016 Lords Chamber

[Lord Clement-Jones (LD)]

My Lords, I too thank the Minister for introducing the new proposals. I am pleased that we have the opportunity to debate them. We on these Benches are not opposed in principle to contracting out to a new charity formed for the purpose, rather in the way that the creation of English Heritage seems to have become a success. I think we are all pleased that Loyd Grossman, with his profile and experience, has been appointed as its first chair. That is considerable cause for pleasure. Moreover, I understand that, broadly, friends’ groups across the Royal Parks support the change and see it as bringing the following benefits—greater financial freedom and escape from government restriction, for example, on the carrying over of end-of-year surpluses, and on procurement rules, both of which can lead to higher costs. It also gives them rather more flexibility on pay rates—upwards, as it happens—in order to attract staff. The change means that it is easier to raise money, especially through local philanthropy, and the new objectives provide—they say—more focus on protection and conservation and less on government objectives for higher visitor numbers.

I understand that the new draft objectives submitted to the Charity Commission are principally to promote the use and enjoyment of the Royal Parks, to protect, conserve, maintain and care for them, to maintain and develop the biodiversity of the Royal Parks and to support the advancement of education and promote the national heritage. All those objectives have considerable importance and benefit. However, it would be good to see the entire draft constitution of the new charity. There is remarkably little information available about the new structure, especially given that it is to be merged with the Royal Parks Foundation. The noble Lord, Lord Stevenson, talked about how the board will be appointed. I understand that there will be 14 board members, half of whom will be appointed by government. It is not clear whom the other half will be appointed by. We need a much more plural form of appointment and there needs to be considerable local input into those appointments. An ability for the Government to appoint 50% of the trustees of the new charity seems well over the top. In the way that the Government retreated over the BBC, I hope that they will likewise retreat over the appointment of trustees to this charity.

I hope that these new arrangements will also mean that detailed plans are drawn up for each of the individual Royal Parks. I think we all know which Royal Parks we are referring to but it is not so well known that other open spaces such as Brompton Cemetery, Victoria Tower Gardens, just along the way, and the gardens at Nos. 10, 11 and 12 Downing Street are all currently managed by the Royal Parks Agency. I assume that they will continue to be managed by the new charity.

I was only partially reassured by the Minister’s statements about consultations that have taken place. As the noble Lord, Lord Stevenson, pointed out, they were very local consultations. The Royal Parks are an asset to not only the whole of London but also the nation. Therefore, it sounds to me as if the consultations have been extremely limited. On what basis were the consultations held? Was a draft constitution of the new charity available? Is there a new draft corporate plan? That kind of detail is very important when one is consulting on a dramatically new way of managing the Royal Parks.

Where is the draft contract? As a lawyer, I always like to see a draft contract, lots of red ink and so on, but we have not seen anything to do with the future management of the Royal Parks. That was referred to by the Minister. What are the key performance indicators in terms of the management of the parks? What specific targets are to be set for the management? On future strategy, will there be a new corporate plan? The Royal Parks Agency has carried on a very detailed way of planning for some considerable time, which includes separate management and operating plans for each Royal Park and, in addition, a sustainability strategy. In the light of the new objectives of the charity, that is extremely important.

The noble Lord, Lord Stevenson, rightly referred to finances. The parks are now expected to make nearly 70% of their own income, but more than 30% still comes from government grant. All the statements coming out of government in this regard seem rather ominous. The stated aim in the Explanatory Notes is to reduce the burden on the public purse in the longer-term. Will that level of finance continue? After all, the latest annual report of the Royal Parks Agency states:

“The new charity will be increasingly self-sustaining”.

The advertisement for the new chairman states that the new body will apparently seek to,

“generate substantial annual revenue from more events, concessions and licences”.

I heard what the Minister said about events, and that seems to contradict it. What does all this mean for government support and over what period? In the way that the finances for English Heritage have tapered, do the Government plan a tapering of the finance for the new charitable body? Or will they essentially oblige the new body—as the Royal Parks tried to do previously—to impose fees for use of its football pitches? I have another very large question: who will pay for the £56 million maintenance backlog detailed in the most recent annual accounts?

The Minister gave several assurances about events. I suppose we should be pleased that there is no Summertime Wonderland but it seems that even the existing events—Winter Wonderland and the British Summer Time Concerts alone, including the time for setting up and reinstating the grass—put 13% of Hyde Park out of bounds for much of the year. Therefore, frankly, I do not think there is much leeway for more events. Will there be more open-air cinema screenings? I know that that causes problems for local wildlife in Richmond Park. What will the financial pressures be if the Government taper their support?

There are many questions and not enough transparency about these proposals. I hope that the Minister has all the answers.

[The Earl of Clancarty (CB)]

My Lords, I thank the Minister, and the noble Lord, Lord Stevenson, for tabling his amendment. This has been quite a technical debate so far but I want to raise how this measure will affect the public, and take a longer-term view.

In March it was reported in the Guardian that the Royal Parks Agency said that the move to a new body followed decreased government funding that had made,

“maintaining high standards increasingly challenging”.

The Friends of Richmond Park note that public funding as a proportion of all income has fallen from 95% in 1961 to under 50% today. Therefore, the fundamental question I want to ask the Government—I think the Minister has already answered it—is: how is a separate body going to supply that much-needed funding, with diminishing support from the Government, other than through commercialising the parks themselves? Why is the move necessary other than to further cut ties to state funding? I therefore echo the noble Lords, Lord Stevenson and Lord Clement-Jones, who asked whether we are heading for a 100% funding cut from the Government. It certainly looks that way. This is surely what “broadening opportunities” means.