National Citizen Service Bill [HL]

Lord Hodgson of Astley Abbotts Excerpts

Committee: 1st sitting (Hansard): House of Lords
Wednesday 16th November 2016 Grand Committee

[Lord Maude of Horsham (Con)]

My Lords, the noble Lord, Lord Blunkett, declared his interest as a member of the board of the NCS Trust. I declare an interest as the Minister who, with my brilliant colleague Nick Hurd, brought the National Citizen Service into existence, and I hope your Lordships will forgive a certain amount of proprietorial pride in what we created and my very deep concerns. As the Bill takes NCS into the next stage of its existence and what I think we all hope will be a permanent place in the life of this nation—with the important role that is now proven to be the case that NCS can play in creating this rite of passage for young people on the journey from childhood into adulthood—I am concerned that we get this right, so I make no apology for the amendments that I and my noble friends have put down or for supporting other amendments put down by the noble Lord, Lord Blunkett.

I completely agree with what the noble Lord, Lord Blunkett, has just said. It is an interesting group of amendments, because they go in opposite directions. Amendments tabled by the noble Baroness, Lady Barker, crave more control by the Government, or more scrutiny, oversight and powers to intervene in the management and conduct of the trust. Amendment 16, in the name of the noble Lord, Lord Stevenson of Balmacara, suggests that there should be a chief executive who is the accounting officer, which would make it look and feel much more like a quango or a government department. The noble Lord is nodding approvingly—he is now shaking his head, although I am not sure at which part. But whatever it is, I do not like it. I do not want the NCS Trust, the body that administers this admittedly very large and growing amount of public money, to be something that looks, feels and behaves like a quango.

We deliberately set the trust up at the outset—frankly, against some of the advice we were given at the time —as a body genuinely independent of the Government. It was not to be without scrutiny by the Government—how could that be the case? As I said to your Lordships at Second Reading, I was the Minister who presided over a programme saving very large amounts of public money, and I do not think I can be accused of being cavalier with the use of public money. But the essence of the NCS Trust was that it should be entrepreneurial and able to innovate, to do things quickly and to be agile rather than being subject to endless scrutiny and endless intervention. It was not to become the kind of arm’s-length body that has a very firm grip by the hand at the end of the arm, which is why I and my noble friends have put down Amendments 14 and 15, which would make it absolutely clear that the NCS Trust board shall be independent of government.

That is not to say that the trust could appoint whoever it likes as chairman or members of the board; that is not what we have in mind. It is clear that it has been the case with the NCS Trust so far that the appointment of the chair and the members of the board have been subject to approval by Ministers. It would not have been possible for Stephen Greene, the brilliant chair of the NCS Trust, to have been appointed without us and indeed the Prime Minister of the day approving his appointment. Things were done a little less formally than is proposed here but, none the less, that was the reality. Your Lordships would expect that to be the case and we expect that to be the case in the way that the arrangements will work in the future. Therefore, it is very important to have a clear, bald statement on the face of the Bill to say that:

“The Board shall be independent of Government, with all appointments subject to fair and open competition”.

On the independence of the trust, it is important to establish from the very beginning that this is not to be an NDPB, which is a clumsy formal word for what we all think of as quangos—quasi-autonomous non-governmental organisations. We have established quite clearly that it is perfectly possible within the nomenclature or the way in which different types of bodies are classified for this, as a very unusual and I would say unique body, not to be classified as an NDPB. That is for all the reasons that the noble Lord, Lord Blunkett, set out.

This programme has touched the lives of hundreds of thousands of young people. We hope that over the years and decades ahead it will touch and change the lives of millions more. I cannot stress enough to your Lordships how important it is that this is seen to be not a programme run by the Government. Nothing could kill it more surely and definitively than that.

I agree that my noble friend the Minister and his colleagues want this to be set up in a way that enables there to be proper scrutiny and, as a last resort, the ability to intervene directly—because as a last resort the Government will always have the ability to withdraw the funding from the trust and to set up another administrative body if it goes completely out of kilter. Although I have that sympathy, I urge them to keep in mind and resist the tendency that all of us who have been Ministers have seen at every stage: that is, the desire of the government machine to reach out its hand—its no doubt very caring hand—to control what goes on outside the reach of government. That is of the utmost importance for the future success of this programme.

The programme has already demonstrated a very high degree of success with the young people whose lives it has touched and changed. It has attracted the support of political parties across the spectrum, after quite a high degree of initial scepticism, and huge swathes of voluntary bodies from the youth sector and beyond. It has been very successful but it is a fragile vessel that needs to be treated with great care. Therefore, I urge the Minister and his colleagues to take these amendments away and reflect on the fact that this is the way to give the best chance of success for the future and to guarantee independence, subject to scrutiny and the appointment of the chair being made, as we said, by the Prime Minister or on the recommendation of the Prime Minister to Her Majesty; and with the ability of the Prime Minister to approve appointments to the NCS Trust board for the rest of its membership. We strongly argue that there should not be a nominated government representative on the board, which smacks of having a nark in the camp and could undermine the crucial sense of independence that will make all the difference for the future.

[Lord Hodgson of Astley Abbotts (Con)]

My Lords, I have Amendment 49 in this group. Before turning to it, I have to say that I was underwhelmed by the comments of the noble Baroness, Lady Barker. It seems a shame if we should not be prepared to consider positive ways to deploy the very large sum of money in a programme that is already proving itself successful. She expressed concerns about bodies being squeezed out, and the noble Lord, Lord Blunkett, made the point that the National Citizen Service Trust is a delivery operation. The opportunity is therefore for smaller charitable and voluntary groups. I entirely agree with her that there is a danger that they could be squeezed out; we shall be debating that in a series of amendments later on in Committee. The underlying thrust of what is being achieved with the Bill is entirely praiseworthy and we want to make sure that we maintain that. To take some of the details, my noble friend Lord Maude made a very important point about the need for it to be seen as independent of government to give it the best possible way forward.

Where I can be more sympathetic to the noble Baroness, Lady Barker, was in her remarks about the way that royal charter companies operate. They are tied into a very inflexible structure, to return to a point that I made at Second Reading. I understand the need for a royal charter, which would have the stardust in it. It is a great thing to be able to talk about as part of the sales pitch for this operation and will help the delivery groups as well. But all the evidence that I received when I worked in the charity world was that a royal charter makes an organisation very difficult to handle structurally.

Your Lordships can see this in the draft charter that has been tabled. If the Committee turns to the way that it deals with charter amendments at article 15, it can be seen to lay out quite an elaborate procedure for changes to the governing documents. The difficulty put to me before, not apropos of the Bill but of royal charter companies generally, is that most such changes have to be dealt with by the Privy Council, which is not of itself very familiar with this sort of activity. The Privy Council is therefore quite concerned about how it is to happen and what the implications are, so there is a good deal of back and forth—of talking and discussions—before a decision can be reached.

At the end of that, while I understand that the National Citizen Service Trust is not directly a charity, it will have a public benefit objective. The Privy Council will not want to find that it is allowing something to happen that could be done by a charity. It would then go off to talk to the Charity Commission. The whole system would start again, with a further series of questions going back and forth, and it would therefore be a very slow process. The Privy Council does not want to appear on the front page of the tabloids for having allowed something to happen which may of itself be undesirable and, even more importantly, would not have been allowed by the Charity Commission. In my view, if the NCS Trust is to be successful—and along with other noble Lords, I certainly hope that it is—and to go from 58,000 young men and women a year to 300,000, there will be changes to this document. We do not know what or when they will be, or how many there will be, but I suspect that there will be a lot of them.

My Amendment 49 is designed to keep the stardust implied by the royal charter but to simplify the procedures for changing the governing documents. It suggests that changes to the constitution, which is the key governing document, would require the permission of the Charity Commission and the giving of notice to the Privy Council, which could complain and therefore block it by talking to the Charity Commission. That would give the control, the proper parameters, that my noble friend Lord Maude referred to as being desirable. For changes to the by-laws, which are so far not extant but will come into being in due course and which are of a lower order of magnitude and importance in corporate governance, notice is to be given to the Charity Commission and the Privy Council. Again, complaints and objections could be made to stop it if required.

Finally, where the board or trust wished to move administrative matters from a constitution of by-laws, this could be done but again notice would have to be given to the Charity Commission. These changes are designed to provide the balance referred to by other noble Lords and the stardust that a royal charter implies but at the same time to enable the National Citizen Service Trust board to move reasonably quickly and to be flexible—my noble friend Lord Maude talked about the need for it to be flexible. It needs to be able to return to and react to changes. This measure would enable it to do so much quicker than in the structure presently envisaged. I hope that the Government will look favourably on the amendment.

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[Lord Ashton of Hyde]

I am grateful to the noble Lord. As a general point, I agree with him entirely that we want to find a way through all the issues being raised in debate. The point of today is, in a way, to raise these issues, and I certainly commit to us trying, over the next two weeks until Report, to find our way through everything so that we can have a very easy Report stage. We will wait and see; we are only on the first group at the moment, so I will move on.

I turn to the subject of non-departmental public bodies and Amendments 14 and 15 from the noble Lord, Lord Blunkett. The body will be incorporated by royal charter and there is nothing in the Bill to say that it will be incorporated as an NDPB, which is not a legal status but a means of classification used by the Cabinet Office. The Cabinet Office has chosen those particular words to describe a body with certain characteristics, but it may use different words in future. None of this is established in legislation, and there seems little need to define a unique category in the Bill only to say that the trust is not in it. However, I acknowledge that the noble Lord, Lord Blunkett, and my noble friend Lord Maude have had rather more experience in government than I, so of course commit to thinking about this before we come back on Report.

The noble Lord, Lord Stevenson, mentioned the accounting officer. I can confirm to him that, in practice, the Government will require the trust to have an accounting officer, as set out in the government guidelines, Managing Public Money. The chief executive will be the accounting officer, as the noble Lord suggested, and will be the person to appear before the Public Accounts Committee. I am not sure about the Permanent Secretary in this arrangement, but I will check and come back to him.

The noble Lord is right that the Bill does not explicitly mention an accounting officer, but we are prepared to think about how that could be clarified. In doing so, we will have to take on my noble friend Lord Maude’s point about how not having an accounting officer is crucial to making the organisation acceptable. I commit to thinking about that and coming back. In practice, there will be an accounting officer: the chief executive.

On the noble Lord’s second amendment in the group, in the case of serious operational or financial issues with the trust’s provider network or staff, the accounting officer would normally be the individual responsible for informing the Government. However, we have left this open in the Bill in case the accounting officer was absent at a precise moment and needed to delegate this function to another officer. If this flexibility were not available, the trust might risk delaying its notification of the Government. As provided for in the Bill, the trust—that is, the members of the board—has that responsibility.

Finally in this group, your Lordships will be relieved to hear, I thank my noble friend Lord Hodgson for tabling his amendment, as we talk again about the functions of the trust and its governance. We entirely agree with the point that the NCS Trust must not be encumbered by excessive regulation. The royal charter and the Bill have been drafted to ensure operational autonomy for the trust, and we must be sure that its governance arrangements complement this intention.

The amendment aims to prevent a cumbersome process for amending the royal charter and clarifies the role of—or inserts a role for—the Charity Commission. However, the NCS Trust, as a royal charter body, will be a public body. This is an essential point. As it is not a charity, it will not be subject to regulation by the Charity Commission at all, and I suggest that the Charity Commission will have no desire to get involved. The charter contains provision for how it may be amended, without any role for the Charity Commission. I hope that my noble friend will be reassured that the existing amendment process is simpler than he fears.

The amendment would also introduce a process for amending by-laws, again with the good intention of streamlining the process. In fact, we have no intention of introducing an extra set of regulations for the body in the form of by-laws. The royal charter gives the trust a broad-ranging power to do anything calculated to facilitate, or incidental or conducive to, the carrying out of any of its functions. It is also expressly given full autonomy over its own procedures. This leaves it with more freedom than if it had further regulation in the form of by-laws.

I know that my noble friend has come across examples of charities that have experienced the cumbersome side of royal charter regulation, but in this case, the body in question is not subject to charity regulation and will be regulated only by the charter and the contents of the Bill. I hope that I have provided sufficient clarification on this point so that all noble Lords will feel able not to press their amendments.

[Lord Hodgson of Astley Abbotts]

I thank my noble friend for giving way at the end of a rather long and turgid debate. It is not that the Charity Commission wishes to get involved, it is that it will be forced to. The Privy Council is worried that something will be done with a semi-charitable body that will provide a loophole that is available to a royal charter company that is not available to charities generally. I am not asking him to answer the question now, but will his officials look at that between now and Report to be satisfied that the Charity Commission will not, willy-nilly, be pulled in to give its opinion every time the National Citizen Service Trust wants to change the trust?

[Lord Ashton of Hyde]

Of course we will look at that.

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Moved by

[Lord Hodgson of Astley Abbotts]

4: Clause 1, page 1, line 11, after “society” insert “in Great Britain or overseas”

[Lord Hodgson of Astley Abbotts]

My Lords, the word “aspiration” has been used—the noble Lord, Lord Stevenson, used it, as did the Minister—and this is another aspirational amendment. It would make a simple change to provide for the activities of the National Citizen Service to benefit society,

“in Great Britain or overseas”,

and it is the “or overseas” that I want to focus on. I make it clear at this stage that my amendment is permissive and not prescriptive. It does not require the Government or the NCS to do anything now; it just enables something to happen in the future. Therefore, it is not “requiring”; it is purely enabling.

In my view, the possibility of developing an international perspective increases one of the attractions of the NCS and, indeed, I think it will be particularly attractive to the more adventurous sort of people who participate in the NCS. It will be a shame if, by limiting it to just a UK view—and the Bill will not be changed again—we do not have the option of giving it a slightly wider canvas in the future.

As I explained at Second Reading, the International Citizen Service—the ICS—already exists. I explained to the House at Second Reading that I have had the privilege of going to Tanzania and seeing it in operation. Slightly alarmingly, they kept referring to the ICS as ISIS. I thought, “What’s happening? Am I in the right room or should I leave quickly?”. However, ICS has operated in Tanzania for a number of years, with 140 to 160 young UK men and women going out there. I met a group of about 40 young Tanzanians and very impressive they were too. They greatly valued their involvement and links with the UK volunteers. Through social media they were sharing experiences and building links between this country and Tanzania. One or two of them were particularly impressive. A young woman in a hijab from Zanzibar, which is 98% Muslim, sought me out particularly to say that it was really good to have somebody from the UK of my age and background facing the troubles that she was facing. She said she was able to realise that people around the rest of the world were thinking about what they were trying to do and prepared to encourage and help them, making them think that they were part of a wider community when things in that country were not always going as well as they might.

In my view, the UK is going to need all the friends it can get in the years ahead. This is not a Brexit speech but a tectonic plate speech. It is about the relative power of the US, China and India, which will shift dramatically over the next 25 or 50 years. ICS, if it is built into NCS, would give us a chance to develop friends overseas and find them growing into positions of influence and power in different countries around the world. Some of the 40 or so young men and women who I saw in Tanzania will clearly rise to the top of that society, and what happens in Tanzania will clearly happen in the other countries where ICS takes place.

When my noble friend comes to reply—I can of course look over his shoulder at the notes that have been written for him by his officials—he will say, “I don’t oppose International Citizen Service; it just shouldn’t be part of National Citizen Service because, inter alia, it is designed for people still at school”. That is all very well but the Bill, as we see in Clause 1(2)(a), refers to people,

“under the age of 25”,

which obviously takes it straight into the chronological bracket of the International Citizen Service. Leaving that aside, other noble Lords have referred to the briefings we have had from the NCVO and other groups about how NCS should be a first step in a journey—a piece in a jigsaw which encourages and leads on to a lifetime of civic involvement. I would argue strongly that building an international piece into our National Citizen Service would provide another potential step, or another potential piece in that jigsaw.

With this amendment, I seek only to include the possibility of an international bit in the NCS Bill because this is a once-in-a-lifetime opportunity. When the Bill has gone through, our chance of being able to introduce an international element will be gone for ever. This bus will not come round again. I therefore seek this because it fits with the aspirational nature of NCS, because the age range allowed for in the Bill would certainly encompass an ICS component and because it would represent a further step in trying to create a way whereby people became involved in voluntary groups throughout their lives. Last but not least, it would be very good for the reputation of this country. It would build our soft power and reputation around the world over a period when the world is changing fast and we will need all the help and influence we can get. I beg to move.

[Lord Ashton of Hyde]

My Lords, I do not oppose an International Citizen Service—my noble friend really was looking over my shoulder. But seriously, I thank my noble friend for his points on the potential of international volunteering. We agree that it opens minds and enhances the UK’s reputation abroad. I shall be brief because we need to make progress.

We support International Citizen Service. I am pleased to say that the UK Government are committed to tripling the size of the ICS programme during this Parliament and are working with VSO to deliver that, which means that more than 32,000 volunteers will complete placements during this Parliament. I am in complete agreement with my noble friend on that but I am afraid that I do not agree that the NCS is the place to do it. It does not malign the NCS to say that it does not have the expertise or reach. We are talking about and have been debating where NCS is going to go, how it should be accountable, how it should be controlled and how it should remain flexible. I am afraid we do not agree that to add this extra burden to it is a good thing at this time. On a positive note, however, there are already strong links between the NCS and the ICS. The ICS is already offered as a next step for NCS graduates, who are guaranteed an interview to take part in ICS if they apply when they become eligible.

As for my noble friend’s point about the age group, of course the age group in the Bill includes up to 24 year-olds, but that is simply to allow people who are outside the core group of 16 and 17 year-olds to have access to the programme if they have disabilities or particular circumstances at home. I am afraid that he is hanging too much on that allowance.

To be very brief, we want to make NCS a rite of passage for the young people of this country. This Bill, and the delivery arrangements that it creates, has that intention in mind. It would not be feasible for ICS to operate on this scale, and so the Bill focuses on NCS. I hope my noble friend will take some encouragement from the increased commitment we have made to international volunteering programmes, because we agree with him that they are important. I hope he will feel able to withdraw his amendment tonight.

[Lord Hodgson of Astley Abbotts]

I am grateful to my noble friend for his answer and glad that I was able to read his notes so clearly over his shoulder. He will understand that I am very disappointed by his somewhat peremptory dismissal of this concept. International Citizen Service is run through DfID and has no statutory protection at all. If this Government or another Government, or a Secretary of State, were to change their mind and say that we will not have International Citizen Service any more and put the aid budget into something else, it would be gone. One great argument for NCS, which I entirely support, is that it makes sure that it is there for the long term. ICS may be there for the long term, but you cannot be certain of it in the way that we are clear about NCS—that is what we have this Bill for.

I will not delay the Committee any longer—because the Whip will turn around to look at me in a second or two—except to say something about the argument that NCS does not have the reach. As we have been discussing, NCS is going to use voluntary groups to reach out and find the people. The way that ICS recruits are found is by VSO reaching out—beating the bushes—to find young men and women to come forward who would like to do ICS. The process that we are using for NCS, and which will be increasing, is paralleled already by what is going on in ICS. So I do not accept the argument that NCS does not have the reach. I think it is a shame that, as a country, we are not going to use this opportunity to build our reputation. However, it is too long an argument to have out today. I am disappointed by what the Minister has said. I will read carefully what he said, but I may wish to bring this matter back at a later stage.

[Lord Ashton of Hyde]

I say to my noble friend that my response was not meant to be peremptory or discourteous; I was just trying to be quick.

[Lord Hodgson of Astley Abbotts]

I can tell my noble friend that I was not offended by him in the least. I beg leave to withdraw my amendment.

Amendment 4 withdrawn.