Parliamentary Commission for Administration and Health Service Commissioner for England

Roberta Blackman-Woods Excerpts

Monday 18th July 2011 Commons Chamber

[Roberta Blackman-Woods (City of Durham) (Lab)]

I thank the Minister for his remarks and I also wish to take this opportunity to express the Opposition’s gratitude to Ann Abraham for her dedication and exemplary service throughout her period in office.

We welcome the Government’s decision to open the process of selecting the new ombudsman to the scrutiny of Parliament, especially by moving the approval of the appointment to this House. The previous ombudsman was selected by an open competition managed by the Cabinet Office and the House was not able to debate the appointment. Today’s debate gives the ombudsman the fullest authority available and can only improve her position.

We very much welcome the selection and appointment of Dame Julie Mellor to the post of Parliamentary and Health Service Ombudsman. She is a fantastic choice. I understand that there were a large number of applications of the highest quality, many with relevant experience in the sector, demonstrating the importance of the role and the responsibilities it demands. Julie has a reputation for strong leadership, including turning around failing public bodies and supporting staff teams to deliver more effectively and efficiently. She has 30 years’ experience of public services and business. She really demonstrates the skills necessary for this post, including strategic leadership, an ability to influence and effective communication. She has experience of corporate governance, commissioning and leadership.

However, I have a few comments to make about the remuneration process. While we welcome the appointment of Dame Julie Mellor to this role, and support the Government’s decision to open up the process of appointment to parliamentary scrutiny, we have concerns that the same transparency and openness have not been extended to the ombudsman’s remuneration.

The ombudsman has a quasi-judicial role as a result of their sole accountability for the decisions made and, as a result, for many years the ombudsman’s pay has been set within the permanent secretary pay band at the point equivalent to that of a High Court judge. The Government have decided to change this longstanding tradition of a fixed salary. At a time when the Government are seeking to increase transparency and accountability, the decision to abandon the existing fixed-salary scheme and transfer the power of decision to an agreement between the Prime Minister and the ombudsman is incomprehensible. Indeed, the decision appears even more arbitrary when we consider that it is being done at a time when the Government are also attempting to limit the pay of public officials.

The previous fixed-salary scheme ensured that the ombudsman’s pay remained in line with that of equivalent roles. I am concerned that without this there will be no independent influence determining the terms of pay. Instead, the remuneration arrangements for the preferred candidate for the post have been negotiated directly between the Government and the candidate for the role of ombudsman, circumventing the necessary scrutiny such a decision requires. The Public Administration Committee, in its report on the ombudsman’s remuneration, has outlined considerable concerns, stating that

“this is neither a sound nor desirable way to proceed.”

The report’s conclusion stated that the Committee regretted

“the Government’s insistence on moving away from the established arrangements and substituting it with an invidious process for determining a remuneration package for the Ombudsman without prior reference to the House.”

Perhaps more significantly, this direct negotiation places the prospective ombudsman in a position with the Government that impacts on the independence from Government influence that the role requires. The Opposition believe that it is essential that the ombudsman should not find themselves needing to negotiate their salary and any future increases with the Government. The Committee’s report recommended that the Government’s motion should commit the Government and the House to the principle that in future the ombudsman’s remuneration should be agreed between the Prime Minister and the Chair of the Committee. I am pleased that the Minister’s motion has recognised the Committee’s recommendation. However, the Opposition would wish to go further and recommend that in future the ombudsman’s remuneration be approved by the House in the same way as the candidate is now approved.