Liverpool Passport Office

Stephen Twigg Excerpts

Thursday 30th June 2011 Commons Chamber

[Mrs Ellman]

I thank my hon. Friend for his contribution; I certainly agree with him. Indeed, I will make the same request before I conclude my remarks.

We see from the written information that we have to hand that there was the possibility of an alternative way of dealing with the IPS’s grave error with regard to these employees, yet it appears that it was not properly pursued, and that for some bizarre and unknown reason the letter written by the Department to the civil service commissioners asking that the matter be looked at was not posted. That has to be one of the great mysteries in all this sorry episode.

[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

I join colleagues on both sides of the House in congratulating my hon. Friend on securing this debate and on her tenacity in uncovering the information that she is sharing with the House. My constituent, Christina O’Brien, who is one of those affected, will be encouraged by what she has discovered. Will my hon. Friend press the Minister to reconsider this matter so that we can see these 14 hard-working staff re-employed at the passport office?

[Mrs Ellman]

I thank my hon. Friend for his comments, and I will certainly do as he requests. Fourteen people are unemployed as a direct consequence of a major error made by the IPS—an error that it failed to address constructively. They are the victims of an unacceptable catalogue of events.

The internal review document that I have seen contains many redactions at critical points. That is why it is not a proper and satisfactory explanation of what went wrong and why. Perhaps it is time for an external inquiry if matters cannot be put right. To add insult to injury, I understand that a business case has been submitted for the imminent recruitment of staff at the Liverpool passport office on the same or similar grades as those of the dismissed employees. It seems that the jobs are still required, although the 14 people who were doing them satisfactorily were dismissed. In those circumstances, I must press the Minister. Can the dismissed workers have priority consideration for those posts, which I understand are about to be part of a recruitment drive?

A June 2010 memo from the Liverpool regional manager states:

“Surely we have a duty of care to those who are in this position through no fault of their own.”

No duty of care was shown by IPS. The key questions on what has happened and why the matter has not been rectified remain unanswered. In those circumstances, and given all the information I have presented today, and the contributions of my colleagues on both sides of the House, I call for the reinstatement of the 14 dismissed workers as a matter of natural justice.

--- Later in debate ---

[Damian Green]

I am conscious of the strong feelings involved, and as I said, I would be delighted to look at the new information that she has revealed to the House this afternoon.

The hon. Lady made a number of other legal points. As she will be aware, the civil service rules do not permit exceptions to enable permanent appointment under this type of system, although they can enable the extension of fixed-term contracts up to a maximum period of two years. She mentioned the letter from Paul Luffman, which was indeed a draft letter that was never sent. It was not sent to the commissioners because the Home Office human resources team were dealing directly with the commissioners, not the IPS.

I want to put on record what happened. The core of the problem sits with an error made by the Liverpool passport office in September 2008 in preparation for the peak demand period starting in March 2009. At that time, the Liverpool office ran a recruitment exercise using friends and families as a candidate-attraction method. The IPS issues more than 5 million passports each year and demand is subject to seasonal peaks. It manages the seasonal variations through the use of flexible employee deployment and through a variety of employee contracts. These contracts include full-time, part-time and part-year appointments and will occasionally include the appointment of staff on fixed-term or casual contracts.

For a number of years, the IPS has, in areas of the country where there are challenges for the permanent recruitment and retention of lower graded staff, used a localised process for the recruitment of fixed-term appointment or casual staff. In this case, short-term opportunities were advertised through the existing network of IPS staff. The recruitment process is closed, which means that the job opportunities are not advertised publicly and therefore other potential candidates are not given access to information about the opportunities available. However, those candidates given the information are selected fairly and are required to demonstrate appropriate levels of competence and behaviours through an application and interview. They are also subject to normal referencing procedures.

Posts advertised under the friends and family scheme should be clearly described as either casual or fixed-term appointments. By definition, friends and family schemes are not fair and open campaigns and, under the civil service Order in Council, cannot result in a permanent appointment to the civil service. Posts advertised and appointed in this way can result only in fixed-term or casual appointments for a maximum of two years. IPS works to defined policies for deploying and recruiting staff. Since 2005, the management and administration of IPS recruitment has been overseen by the IPS central resourcing team in human resources at its headquarters in London. The error made by Liverpool passport office in 2008 and 2009 was that it employed those 14 staff on a permanent basis. The recruitment had not been authorised by IPS’s head of resourcing and the Liverpool office had not described the scheme as falling under the friends and family provisions. This resulted in a list of candidates being subsequently employed on permanent civil service contracts by mistake.

In March 2010, the IPS central resourcing team carried out a routine audit of IPS external recruitment. The audit identified concern about the friends and family recruitment scheme that was adopted at the Liverpool office in 2008 to employ staff in 2009. The concern primarily arose from the fact that staff had been permanently recruited without any open competition or advertisement of the vacancies. IPS considered that the civil service Order in Council had been contravened on the grounds that permanent contracts had been agreed through a process that was not subject to open competition. In view of the contravention, IPS looked to withdraw the permanent contracts and place the individuals involved on fixed-term contracts.

The following month, April 2010, IPS notified the civil service commissioners that a total of 14 permanent contracts were being withdrawn and replaced by fixed-term appointments of under two years. However, that action was not taken immediately. Instead, IPS explored whether alternative approaches existed that could alleviate the potential impact on the staff employed. That process was protracted but IPS was unable to find new evidence to support any other approach. It was not until February 2011 that the final decision was taken to cease the permanent contracts. Having reached that decision, IPS briefed the local senior management team and national trade union representatives from the Public and Commercial Services Union. The PCS local branch was briefed on 16 March 2011 to allow employee representatives time to prepare and consider an appropriate response. On 21 March 2011, the decision to dismiss the affected staff was carried out. The 14 staff affected, still in employment, had their permanent employment contracts terminated immediately and four of those staff, who had already completed two years’ service, by exception were offered a five-week paid notice period. The remaining 10 staff were offered and accepted fixed-term contracts of up to two years, including time already served. Of those 10 fixed-term contracts, three were scheduled to end on 14 June 2011, two on 31 August 2011 and five on 30 September 2011.

[Stephen Twigg]

The Minister has just described the sequence of events. Does he agree that one of the most disturbing features of this saga is that the problem was identified almost a year before the directly affected employees were informed? Would it not, with the benefit of hindsight, have been a great deal fairer for the employees concerned to have been advised that there might be an issue as soon as it came to light? Frankly, the situation in terms of finding other jobs, especially in the public sector, was a lot rosier in April 2010 than it is now.

[Damian Green]

As I have just said, the reason for the delay was precisely because the IPS management were searching desperately for ways to avoid where we have come to. It was done with the best of intentions, but I appreciate the power of the hon. Gentleman’s argument.

So far, four staff have elected to leave before their scheduled end date and four are still in post. Six of the staff who have left have found jobs elsewhere. Discussions with individual staff about potential compensation payments commenced in the week starting 20 June 2011. That is one of the matters that was discussed when I met hon. Members a few weeks ago. Those discussions remain under way and it is hoped that agreement about a suitable level of compensation can be reached. Those discussions will continue ahead of the tribunal hearing of 30 September.

At my meeting on 8 June with the hon. Member for Liverpool, Riverside and others, the question was raised of whether the people affected would be guaranteed an interview if any new recruitment was planned at the Liverpool office. IPS is unable, for legal reasons, to offer a guaranteed interview. However, it is open for the people involved to apply for posts under any future recruitment campaigns, and their experience of the work and the skills and competencies would be taken into account as relevant factors in considering any application.

A detailed review of what has happened and the lessons to be learned was immediately commissioned and reported in April 2011. The review has been shared with the staff, the unions, the hon. Lady and other interested Members. It is of course a matter for the individual staff concerned to take the matter further. As I said, six of them have submitted employment tribunal papers. It may well be that others choose to follow that approach. That is for them to decide, but it is important for me to acknowledge here that the people involved did a good job for IPS. We should make it clear that they were not asked to leave because they were inefficient or were unable to their job. We should also make it clear that IPS is engaging with all the people involved to determine whether we can reach an equitable settlement that will bring the matter to an earlier conclusion and reduce any further impact on those involved.

As I said at the outset, this matter arose due to an unfortunate error in 2008 at the Liverpool passport office. The review, which reported earlier this year, identified that a number of practical improvements have been implemented. A key change is that the recruitment of any staff is subject to central processing, which means that although local interviews and managing of the process take place, it will be a matter for the IPS central resourcing team formally to agree and approve any new appointments and the recruitment methodology to support them. Staff cannot be put on the payroll without that process having been completed. That is a key processing change and, as part of the next generation of human resources expertise in IPS, it will allow access to the right level of expertise, ensure that the right governance arrangements are in place and ensure that decisions are legally compliant. That has now been in place for over a year.

IPS has admitted that it failed to complete the right processes in 2008 and 2009, and it has taken steps to recover the situation. I appreciate that 14 people consider, rightly, that they have been disadvantaged in the whole process, but I can only emphasise again that the cancellation of their contracts is not a reflection of their ability or their contribution. Human resource services across government have to meet exacting standards and while IPS’s actions in this case have clearly had a serious detrimental impact on the individuals involved, I believe that it was an isolated error and that IPS has taken the right steps to avoid the situation being repeated.

IPS is looking to agree an equitable settlement with the people involved, and I would welcome information and support from the hon. Lady and the other hon. Members who are, perfectly rightly, concerned about their constituents and who have engaged on the issue to ensure that we can bring the matter to as speedy a conclusion as possible, not least and most importantly for the benefit of their constituents.

Question put and agreed to.