Oral Answers to Questions Debate

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Department: Cabinet Office

Oral Answers to Questions

Lord Maude of Horsham Excerpts
Wednesday 14th July 2010

(13 years, 9 months ago)

Commons Chamber
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Baroness Clark of Kilwinning Portrait Katy Clark (North Ayrshire and Arran) (Lab)
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1. What recent discussions he has had with trade union representatives on reform of the civil service compensation scheme.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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I wrote to the chairman of the Council of Civil Service Unions immediately after making my statement to the House on 6 July. I have invited the unions to begin discussions with us on developing a sustainable and affordable long-term successor to the current civil service compensation scheme. I met the unions yesterday, and my officials have had further meetings with them.

Baroness Clark of Kilwinning Portrait Katy Clark
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I thank the Minister for that answer. As he will appreciate, thousands of civil servants currently face losing their jobs as a result of this Government’s policies. Will such people be able to rely on their contractual terms?

Lord Maude of Horsham Portrait Mr Maude
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It is common ground that the current civil service compensation scheme is unaffordable. The hon. Lady’s own Government attempted to introduce a new scheme that introduced modest changes to the current scheme. That was agreed by five out of the six civil service unions, but sadly, the sixth did not agree, went to the High Court, and had it struck down. The result is that savings that had been scheduled to be made by the previous Government now cannot be made, so there is an additional cost. I have taken the view that it is not responsible to leave matters as they are. Nor is it fair to leave in limbo for ever people who know that there is, through no fault of their own, no job for them for the future, which has been the case for some time.

John Leech Portrait Mr John Leech (Manchester, Withington) (LD)
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Does the Minister accept that any plans severely to restrict redundancy payments for hundreds of thousands of low-paid civil servants will be seen as a kick in the teeth for thousands of workers who have faced uncertainty about their jobs over the past few years, and who face uncertainty in the future?

Lord Maude of Horsham Portrait Mr Maude
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It is precisely for that reason that I want to engage quickly with the unions to negotiate additional protection for low-paid workers. Contrary to general belief, large numbers of civil servants are not very well paid—half of them earn £21,000 a year or less—and we want there to be extra protection for them. I want to engage as quickly as possible with the unions to negotiate an arrangement that has not only fairness but accountability built into it.

Paul Goggins Portrait Paul Goggins (Wythenshawe and Sale East) (Lab)
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Last week, the Minister said that his proposals may not have been necessary if the Public and Commercial Services Union had joined the other five trade unions in agreeing to the previous Government’s reform package. That being so, will he start his negotiations with that package, which would have saved £500 million over three years and protected the lowest paid?

Lord Maude of Horsham Portrait Mr Maude
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As I say, we are very keen to have proper protection for the lowest-paid workers. Had that scheme been in existence when the coalition Government came into office, a pressing case would have been made to leave it as it was and work on that basis. That option is no longer on the table, so it seemed to us right to look at a scheme that is sustainable for the long term. The previous revised scheme made only relatively modest changes, and it was still way out of kilter with anything available under the statutory redundancy scheme or, indeed, throughout most of the private sector.

Paul Goggins Portrait Paul Goggins
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I am grateful for that answer. However, it is hard to take the Minister seriously about these negotiations when after all the press speculation, and more than a week after he sent his letter to the trade unions, the 600,000 staff who are affected still have no details of what he is proposing other than the threat of a 12-month cap on redundancy payments to all staff. Why should the lowest-paid staff—the junior official in a jobcentre—be treated in exactly the same way as the permanent secretary of a Government Department?

Lord Maude of Horsham Portrait Mr Maude
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It is precisely my intention that that should not be the case. That is why I want to engage with the unions quickly to develop a scheme that protects the lowest paid. It is quite a complicated thing to do—it is not capable of being done in the course of a Bill—so we need to negotiate it. I want to ensure that it works and is effective in providing fairness, but is also affordable. I hope that we can engage with this as soon as possible. I have made it clear to the unions that it is our intention not only to negotiate on the ceiling that is available for voluntary redundancy schemes but to provide protection for the lower paid.

Amber Rudd Portrait Amber Rudd (Hastings and Rye) (Con)
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2. What plans he has to review arrangements for the use of consultants for Government projects.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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In May, we announced an immediate freeze on the use of consultants. Where there is an operational necessity and the work cannot be carried out by in-house staff, any new consultancy spend above £20,000 a month must be signed off by a Minister. In addition, all consultancy spend, whether pre-existing or newly approved, must be re-approved on a rolling basis every three months. Processes are now in place whereby both my right hon. Friend the Chief Secretary and I must personally approve any request to employ a consultant beyond nine months.

Amber Rudd Portrait Amber Rudd
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I thank my right hon. Friend for that answer. Has he considered the fact that by reducing the use of consultants, we will be able to help public servants to develop their own careers more successfully, and that that will have the added advantage of protecting jobs, because we can keep the work with them rather than putting it out to consultants?

Lord Maude of Horsham Portrait Mr Maude
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My hon. Friend makes a very good point. The excessive use of consultants—we discovered that there were 2,500 consultants embedded in Whitehall across Government—is not only expensive and a wasteful use of money but demoralising for mainstream civil servants, who feel that they are undervalued. By cutting back on the use of consultants we can begin to re-equip the mainstream civil service with the professional skills that it wants.

Chris Leslie Portrait Chris Leslie (Nottingham East) (Lab/Co-op)
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Can the Minister assure the House that the Government will not employ any consultants at all on the experimental free market schools strategy at the Department for Education? I am sure I heard a rumour that the Government had paid half a million pounds to the New Schools Network.

Lord Maude of Horsham Portrait Mr Maude
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I can assure the hon. Gentleman that if there are any consultants being used, that will have been signed off personally by a Minister in the Department for Education and will be made public online shortly. He should address his question to my colleagues in that Department and scan the website for notification.

Fiona Bruce Portrait Fiona Bruce (Congleton) (Con)
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3. What plans he has to reduce the regulatory burden on the voluntary and community sectors.

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Christopher Chope Portrait Mr Christopher Chope (Christchurch) (Con)
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5. What recent representations he has received from trade unions on proposed changes to the terms and conditions of employment of civil servants.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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I met the Council of Civil Service Unions yesterday. The main issue discussed was the proposed changes to the civil service compensation scheme, which I covered in my reply to the hon. Member for North Ayrshire and Arran (Katy Clark).

Christopher Chope Portrait Mr Chope
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Did my right hon. Friend discuss yesterday a subject of great public concern: civil servants on average have higher pay, get better pensions, work shorter hours and have longer holidays than their private sector counterparts, and they also have lower productivity? What are the Government doing about that?

Lord Maude of Horsham Portrait Mr Maude
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Public sector productivity generally fell in absolute terms in the past 12 years, whereas private sector productivity rose by between 20 and 30%. There is therefore a problem with productivity in the public sector. However, I must tell my hon. Friend that median pay in the civil service is lower than that in the private sector, but pay in the wider public sector is higher.

George Howarth Portrait Mr George Howarth (Knowsley) (Lab)
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Does the Minister think that a career in public service is a good thing?

Lord Maude of Horsham Portrait Mr Maude
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Yes, 100%, which is why I adopted one.

Mark Spencer Portrait Mr Mark Spencer (Sherwood) (Con)
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6. What plans he has to support the voluntary sector.

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Richard Ottaway Portrait Richard Ottaway (Croydon South) (Con)
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8. What efficiency savings have been identified by his Department’s efficiency and reform group.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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We have identified significant scope for efficiency savings through a variety of means, including moratoriums on information and communications technology spending of more than £1 million, on consultants costing more than £20,000 a month, on advertising and marketing spend, on new websites and on new or renewed property leases. Other means include a freeze on recruitment, the procurement of goods and services for the whole Government using our aggregated scale to drive down prices, removing discrepancies such as the variation of 170% in the cost of a standard computer monitor, and renegotiating with the Government’s biggest suppliers on a portfolio basis to take out excessive cost. I met the 20 biggest suppliers to the Government last week to kick that process off. That is just the beginning; there is much more to do.

Richard Ottaway Portrait Richard Ottaway
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In the light of that important answer, does my right hon. Friend remember the pledge given in 2006 by the previous Government to reduce dramatically the 794 websites that they ran at that time? Accordingly, was he as astonished as I was to discover just a few weeks ago that the number of websites had actually grown to 820? What is he doing to reduce that inefficient use of public resources?

Lord Maude of Horsham Portrait Mr Maude
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My hon. Friend is completely right that the result of the previous Government’s attempt to cut the number of websites was actually a significant increase. We will take urgent steps to cut the number of websites, particularly in relation to those that compete with each other. I discovered that the Department of Energy and Climate Change was bidding against the Carbon Trust for spots on Google, which is one indication of the lack of discipline in that field.

Paul Goggins Portrait Paul Goggins (Wythenshawe and Sale East) (Lab)
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Has the efficiency and reform group made an assessment of the Government’s programme for converting 800 schools into academies at a cost of £495 million over the next four years? In particular, has the group formed a view on whether that represents good value for money when set against the loss of hundreds of new school buildings following the cancellation of the Building Schools for the Future programme?

Lord Maude of Horsham Portrait Mr Maude
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That was a very good effort from the right hon. Gentleman, but we believe that the coalition’s programme to increase the number of academies is very valuable. It is part of the process of giving much more power to parents, and of giving the schools that are available for local people the ability to reflect what they want rather than what central planners dictate.

Lord Evans of Rainow Portrait Graham Evans (Weaver Vale) (Con)
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10. What progress has been made in setting up a national citizen service.

Julian Smith Portrait Julian Smith (Skipton and Ripon) (Con)
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13. What progress he has made in establishing a national citizen service.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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The coalition Government are committed to introducing a national citizen service to give young people an opportunity to develop the skills needed to be active and responsible citizens, mix with people from different backgrounds and get involved in their communities in order to promote engagement, cohesion and responsibility. Details of this programme will be announced by the Cabinet Office later this year, with a launch expected in 2011.

Lord Evans of Rainow Portrait Graham Evans
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The national citizen service will provide a vital outlet, especially for disadvantaged young people in my constituency of Weaver Vale. How can we ensure that this group of young people get involved?

Lord Maude of Horsham Portrait Mr Maude
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The whole point is to bring together young people from different backgrounds, rather in the way that national service was a great leveller. People from all sorts of backgrounds and geographies came together to work together, and that did promote cohesion. We are especially concerned that young people from disadvantaged backgrounds should not be excluded from this process. I hear what my hon. Friend says and it would be good if one of the pilot schemes next year could involve disadvantaged young people from his constituency. [Interruption.]

John Bercow Portrait Mr Speaker
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Order. An enormous number of private conversations are taking place in the Chamber, and it is not only unseemly, but unfair on the Member asking the question and on the Minister to whose reply we all wish to listen.

Julian Smith Portrait Julian Smith
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North Yorkshire county council has four fantastic outdoor education centres, including Bewerley park in Nidderdale in my constituency. I suspect that my right hon. Friend does not have time for potholing, but would he come and meet me so that I can show him how those four centres could deliver on the national citizens programme?

Lord Maude of Horsham Portrait Mr Maude
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It is not so much not having the time for potholing as not having the inclination. However, I would of course be delighted to meet my hon. Friend to discuss these very desirable locations with which he tempts me.

Robert Halfon Portrait Robert Halfon (Harlow) (Con)
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11. What plans he has for future Government support for local voluntary groups; and if he will make a statement.

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Steve Baker Portrait Steve Baker (Wycombe) (Con)
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14. What efficiency savings have been identified by the efficiency and reform group.

Lord Maude of Horsham Portrait The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)
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I refer my hon. Friend to the reply I gave to Question 8.

Steve Baker Portrait Steve Baker
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The last Government spent a fortune on advertising themselves. How will this Government make savings in that area?

Lord Maude of Horsham Portrait Mr Maude
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We established at an early stage a moratorium on new advertising and marketing spend. Any exceptions to that moratorium have to come to me personally, and I am delighted to find that remarkably few applications are being made for exceptions. The amount of taxpayers’ money spent by the Government on advertising and marketing has been significantly reduced. At the end of the year, I expect to be able to show a very significant reduction in what was being spent by the last Government on what I have to say was a pretty incontinent basis.

The Prime Minister was asked—