Parliamentary Buildings (Restoration and Renewal) Bill (First sitting)

Tom Brake Excerpts

Committee Debate: 1st sitting: House of Commons
Tuesday 4th June 2019 Public Bill Committees

[Christian Matheson]

I beg to move amendment 2, in clause 2, page 2, line 16, at end insert—

“(f) to require the Delivery Authority to ensure that contracts for construction work in connection with the Parliamentary building works must not be awarded to construction companies who have been found to have blacklisted construction workers from employment and who have subsequently failed to enter into a Trade Union Recognition Agreement with a registered UK trade union.”

We fully support the creation of a Sponsor Body as a single client body working on behalf of each House with overall responsibility for the programme. The body will make strategic decisions relating to the carrying out of the works and consult with Members of both Houses when performing their duties.

The Bill requires the Sponsor Body to form a company limited by guarantee, the Delivery Authority, to formulate proposals relating to the Palace restoration works and to carry out the parliamentary building works. With the inclusion of the Delivery Authority, these two independent authorities are able to operate effectively in the commercial sphere, bringing the expertise and capability needed for a project of this scale. This two-tier approach was used successfully to deliver the London Olympics.

[Tom Brake (Carshalton and Wallington) (LD)]

On a point of order, Sir Gary. I wish to seek clarity on whether there will be a clause stand part debate separate to the debate on the amendment.

[The Chair]

It partly depends on how the debate unfolds, but if it is of particular interest to the right hon. Gentleman, I am happy to give him that guarantee at this stage. Is he looking for that?

[Tom Brake]

There are a number of points that relate to interesting evidence provided from outside sources that I would like to refer to during a clause stand part debate.

[The Chair]

We will have a stand part debate on clause 2.

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[Tom Brake]

I know that the hon. Gentleman has pursued the matter assiduously, and I commend him for that. He has rightly set out the scale of the problem. He will be aware that if a policy of employing no companies that had blacklisted workers had been followed, there would have been difficulties delivering contracts. Does he know how many of the largest players in the construction sector have entered into a trade union recognition agreement?

[Christian Matheson]

The right hon. Gentleman is right. The problem is that blacklisting was prevalent in the industry for many years, and the danger is that it is still prevalent. The truth is that I am not quite sure. Most of those companies will not have done that at this stage, but this measure is a way of encouraging that. I will come back to that point.

In the decade since the 2009 raid on the Consulting Association, trade unions fighting for their members would have found it easier to get blood from a stone than to get justice for their members. Compensation was received from only some of the culprits, after lengthy legal battles. One such construction company was Sir Robert McAlpine. Last December at the commencement of yet another legal action, the company said that

“Blacklisting in construction was, until 2009, an industry-wide issue…most of the largest British companies in operation today were involved in the past when there was no legislation in place to outlaw the practice.”

In other words, they would still be at it now if the minimal legislation had not been in place, which incidentally is mostly to do with data protection laws. Since the founding chairman of the Consulting Association was a director of Sir Robert McAlpine, we can hardly be surprised. Yet many firms are still at it now, and many have not admitted their guilt or paid compensation. Parliament cannot be allowed to be associated with the practice, or with firms that have undertaken the practice and failed to make good their crimes and misdemeanours.

First, the reputation of Parliament is at stake. We cannot be seen to be enriching businesses that carried out these crimes and have not been held responsible or admitted liability. Secondly, this is a prestigious contract, and these will be prestigious contracts. It is not just about the money. The companies will win new business on the back of this globally high-profile work. Thirdly, it is also about the type of culture we want working on projects on this estate: one in which safety is paramount and where concerns are listened to; one in which workers are respected; and one in which discrimination is not permitted. We need to be clear that blacklisting is a form of discrimination. If such a culture is permitted, and if workers are too scared to raise concerns for fear of losing not just their job but their ongoing livelihood, then the reputational damage to Parliament should someone suffer injury or death on our site would be horrendous, not to mention, of course, the responsibility we would bear for the victim and his or her family.

The amendments before the Committee instruct the Delivery Authority not to consider applications for contracts from firms that have been found to be involved in blacklisting, and that have not subsequently entered into a trade union recognition agreement. To touch on the point made by the right hon. Gentleman the Member for Carshalton and Wallington, Members on this side have considered different forms of words to encapsulate the demonstration of progress away from blacklisting made by construction firms. We considered whether it would have been sufficient to have paid compensation arising from the court cases. I remind the Committee that some implicated firms have not even done that—I cannot name them yet because they are involved in ongoing legal cases, but there are several of them.

We decided that it was insufficient, as it did not clearly demonstrate a change of behaviour. The amendment calls for the Delivery Authority to proscribe any of the firms found to have been involved in blacklisting, for example through the loss of a court case, reaching an out-of-court settlement, or having been a member of a blacklisting body such as the Consulting Association and having not since entered into a recognition agreement with a UK trade union. A recognition agreement is a way of demonstrating a change of culture: a determination to work together to resolve problems and a commitment to treating employees and their representatives with respect. In other words, it is about not just apologising for blacklisting in the past but taking clear and concrete steps not to undertake it again. I am sure that workplace safety would be at the heart of any such agreement, with which no hon. Member could disagree. If we insist on the measure in this place, it will send a signal to the industry for the first time, and we may see the beginning of the end of this dreadful, mean, discriminatory practice that has downright dangerous consequences. We missed the chance in offering the Elizabeth Tower and Big Ben contract to McAlpine, which had previously been up to its neck in blacklisting; we cannot miss it again. Above all, it is right to make a stand against blacklisting, so I urge the Committee to support the amendment.

Following your guidance, Sir Gary, I will move on to new clause 1.

[Christian Matheson]

I pay tribute to my hon. Friend the Member for Hackney South and Shoreditch, who has also tabled amendments on the subject. The project is of national significance and is relevant to every part of the UK. Regions and nations across the United Kingdom should have the opportunity to benefit economically from the parliamentary building works. Work should be spread across the United Kingdom and across companies of different sizes.

The project provides us with a wonderful opportunity to invest in people’s futures by upskilling them and by working with small and medium-sized enterprises as well as larger businesses. It is incumbent on the Sponsor Body to ensure that all areas of the country benefit from the programme, including businesses outside London and the south-east. Market engagement and involvement must begin early and reach as widely as possible to include geographically diverse companies.

In particular, the project gives us the opportunity to work with people in the heritage and conservation sector, with the potential to create training opportunities in that sector. Those skills may have been lost or might not exist in some areas of the UK economy, so this is an opportunity to bring them to the nation for the first time, or for the first time in many years. There is a real risk of a skills shortage in this niche sector. The Joint Committee recommended that the Sponsor Body and the Delivery Authority consider how apprenticeships and other training schemes could be delivered as part of the R and R programme to increase capacity in the area and to provide a lasting legacy of skills from the programme.

The new clause asks the relevant body to provide a regular report that details its work and how it has met the requirements of spreading the work, wealth and skills around, so that can be scrutinised and progress can be monitored. I commend the new clause to the Committee.

[Tom Brake]

Has the hon. Gentleman considered making that information available online when the contracts are signed, rather than in a six-monthly report?

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[Meg Hillier]

The hon. Gentleman makes an important point. That is one of the things that could happen, but as we have seen—I had the privilege of visiting Crossrail a couple of times, most recently in the past few weeks—sometimes nothing beats having eyes on the ground, seeing what is happening and checking with contractors what is happening. That is a skill of project management, which of course uses digital tools to deliver. Who knows, but let us hope that a British business delivers such tools and will be able to help the Sponsor Body and win such a project. A good project manager will still be needed on the ground to ensure that all the smaller businesses work together.

This measure does not need to cost more money; it just needs to be planned from the beginning. The process cannot be added at the end, suddenly, when someone says, “Oh, we have had a lot of noise from MPs who are concerned that their companies have not got the business.” It must be planned from the beginning. The Minister is very committed to his region, and he was a great advocate for Devon when he served nobly on the Public Accounts Committee, so I am sure that he is with us in spirit. I hope that the Government are willing to accept the amendment. I will accept a change of wording if they feel that the drafting is amiss, although I had good advice from the Clerks.

[Tom Brake]

I am in some difficulty in asking questions, given my role on the House of Commons Commission, but I have established that I am allowed to speak and to express views. As the hon. Lady knows, the northern estate programme is very large and is already under way. Contractors can email that programme to express an interest in the works. That seems to me to be a good testbed for what she is arguing for—all the work that she wants to happen to audit the restoration and renewal project.

[Meg Hillier]

The right hon. Gentleman is absolutely right. We need to start now and make it a mission of this place to set a tone for how other large projects should be run, to ensure that we support our thriving and exceptional small business sector, which, even with Government attempts to try to send more money in its direction, sometimes still feels cut out of large Government contracts, which are not broken down to a small enough scale. I hope the Minister will take that on board.

I want to comment on the education centre. The hon. Member for Hertford and Stortford suggested an elegant manuscript amendment—I am not sure what the procedure would be, Sir Gary, or whether that would be accepted—but the general principle raised by my hon. Friend the Member for City of Chester is right. We must not forget that the current education centre is a temporary building. It had planning permission only for a decade, it did not get built straightaway, and where it is now will have to be a space for heavy plant, so that building will be gone during—if not before—the restoration.

With the prospect of a new temporary Chamber or facility in the northern estate, there is every opportunity to plan in education from day one. It should not be an optional extra. I am often in and out of that building with schoolchildren from Hackney South and Shoreditch—it is very close by and easy to get here—and the building has had a major impact in helping them to develop their political understanding and skills. I will have plenty of successors from Hackney South and Shoreditch, and there will be heavy competition when I hang up my shoes and move on, because they have been inspired by coming here.

I pay tribute to the education team. In fact, I have also looked at their value for money, and pound for pound they provide extremely good value for money in what they deliver. We must ensure that education is a definite part of the future, not an optional extra. The danger is, if there is a budget problem—with proper audit we hope there will not be, and we will consider audit later—it could be dropped if we are not careful. I hope the Minister agrees that it needs to be written in more firmly. The Government did not accept points on this in the Joint Committee’s report, but I hope that, in the light of the debate, the Minister, who is a reasonable fellow, will consider a change of heart. In the end, it does not affect Government; it affects this House, this country and all the young people of the UK who come through it in future.

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[Tom Brake]

It is a pleasure to serve under your chairmanship, Sir Gary. I rise first to express my support for the amendments set out so far. The point I raised with the hon. Member for City of Chester was about whether adopting his approach would preclude any substantial work being done, because of the number of companies that, unfortunately, were involved in blacklisting and that might not have taken the action that he rightly wants, so far. I hope that the Minister will give us some clarity on that.

The main point that I wanted to make was about the written evidence, which Members will have seen, submitted by Professor Flinders, Alexandra Meakin and Dr Alexandra Anderson, principally regarding clause 2. The evidence addresses the Sponsor Body’s duties, which were referred to earlier, with regard to ensuring perhaps a greater degree of public involvement, and having a public conversation about the future of the building. I would certainly welcome that. I do not know whether it would have to be done through the Sponsor Body, or whether Parliament could do it, but clearly it must happen.

We must ensure that there is proper engagement and public understanding, as the writers suggest, especially with regard to the regions of England and the devolved nations. Clearly there will be people around the United Kingdom who, looking at how much money is being spent on the Palace of Westminster as well as on other things such as infrastructure in London and the south-east, will feel that at the very least an explanation is needed for such a level of investment. Therefore, engaging the regions and the devolved nations—including ensuring that they get involved in the project and the large amount of work that will be available—will be very much part of the process.

The contributors of the written evidence also suggested that there is a need to look at the relocation accommodation to test alternative ways of working. That would mean using the temporary Chamber in Richmond House—which may indeed end up not being temporary, if it is decided to retain it as a permanent Chamber—as an opportunity to test alternative ways of working, which presumably could include electronic voting. Clearly, that is not the direction given by the Joint Committee, but I certainly hope that there may be scope to investigate it. The Scottish National party has, in questions, pushed hard on the issue. Clearly, if it were to be successful in a trial in the alternative Chamber it could perhaps be rolled out more permanently in the new Chamber, when the restoration and renewal project is completed.

The amendments also highlight the need for a diversity and inclusivity-sensitive Parliament, which is essential. I know that work is already starting on that, particularly in relation to accessibility. That is not just from the point of view of mobility. It also relates, for instance, to accessibility for people with autism. As I understand it, people with autism would not feel particularly comfortable sitting in a room like this one. I know that those issues are being addressed. I think that the Minister has cooled down after his exchange with a number of Members of Parliament, including me, on the urgent question on EU citizens’ voting rights, and he will clearly get a much gentler ride here as I think there is broad consensus on where we will go, but I would like to hear his assessment of the written evidence I have been discussing. There are some good concrete proposals in there.

[Mr Prisk]

When I first intervened I should perhaps have drawn the Committee’s attention to the fact that I am a fellow of the Royal Institution of Chartered Surveyors.

I very much welcome, as a number of Members have, the principle underlying amendment 14, tabled by the hon. Member for Hackney South and Shoreditch. It is right that this Parliament should, in its restoration, benefit the whole UK and the smallest of firms. It is absolutely right as a point of principle, and in the debate about the restoration of the building we have naturally been concerned that the public will worry about the amount of money we are spending on our workplace. Yet it could and should be seen as an investment opportunity of several billion pounds in future trades and crafts—I am sure Opposition Members will spell those out in great detail; ceramics for example—that benefit every part of the United Kingdom and every firm, large and small. Those sentiments are very welcome.

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[Tom Brake]

I am sure it was not a deliberate omission on his part, but the Minister will be aware that I quoted from the written evidence supplied to the Committee—evidence PBB01—which made a number of suggestions, including, for instance, ensuring that the public are fully engaged in the process and that the relocated accommodation or temporary Chamber is tested for alternative ways of working. I was hoping for a ministerial view on that submission, which I am sure the Minister would like to give the Committee now.

[Kevin Foster]

I thank the right hon. Gentleman for prompting me back to his query; the contribution from the Department of Politics at the University of Sheffield was a welcome one to read, with a number of thoughts, suggestions and ideas on how the project could be enhanced. I would not necessarily propose that the amendments suggested in its contribution be made—the right hon. Gentleman has not tabled those amendments, so I suspect he takes a similar view about not amending the Bill to reflect them—but it is certainly welcome to see that positive engagement and thought in terms of what could be done.

I hope that, as the Sponsor Body is established, it will look to those types of submissions in thinking about how we can make this a project that reaches out and hopefully changes people’s perceptions of Parliament, as well as one that restores and renews this building physically. It was a welcome piece of correspondence to receive, and one that the Sponsor Body could well read and learn from.