House of Commons Commission – Twenty-First Annual Report 1998-99

Report

	Twenty-first Annual Report 1998-99
1.	This Report of the House of Commons Commission, required by Section 1(3) of the House of Commons (Administration) Act 1978, covers the financial year 1998-99. As in previous Reports it has been necessary to include some reference to events outside the period.
Form of the Report
2.	The Report continues the practice of including annual reports prepared by each of the six Departments of the House (at Annex A). These outline the plans, organisation and services provided by each Department, and summarise recent and future developments including performance standards. In the same Annex the annual report of the Planning and Management Committee, the Information Systems Steering Group and the Printing and Publishing Management Group may be found. As before, the Report also contains (at Annex B) the Annual Report of the Accounting Officer, which provides information about staff complements, salary scales and allowances in the House of Commons Service, together with changes in numbers, pay, and grading. This Report is available in electronic form.1
Work of the Commission
3.	The Commission held thirteen meetings during the course of the financial year.
Questions to the Commission
4.	Questions to the Commission are answered orally once a month together with Questions to the President of the Council. Mr Archy Kirkwood MP answers Parliamentary Questions on behalf of the Commission. Fourteen questions were tabled and received written answers.
Accounting Officer
5.	Mr William McKay CB has been Accounting Officer since January 1998 on his appointment as Clerk of the House of Commons.
The Vote for the House of Commons: Administration (Class XVIII A Vote 1)
6.	Estimates for 1998-99: A summary of the Estimate and Outturn for 1998-99 is set out in Tables 1 & 2. The Outturn was £81,157,000, which was £5,024,000 less than the Estimate owing, in the main, to lower than forecast expenditure on staffing, travel, printing and security.
7.	Estimates for 1999-2000: The main Estimate for the administration of the House in 1999-2000, which was laid on the Table by the Speaker on 31 March 1999, amounted to £85,260,000 and is summarised in Tables 1 & 2.
The Vote for the House of Commons: Works Services (Class XVIII, A, Vote 2)
8.	Estimates for 1998-99: A summary of the Estimate and Outturn for 1998-99 is set out in Table 3. The Outturn was £92,005,000, which was £10,205,000 less than the Estimate due principally to delays to work on the new parliamentary building (Portcullis House).
9.	Estimates for 1999-2000: The main Estimate for the works services in 1999-2000, which was laid on the Table by the Speaker on 31 March 1999, amounted to £99,605,000 and is summarised in Table 3. The major item is continuing work on the new parliamentary building (Portcullis House) at £60,000,000 for the financial year. Other major work includes the ongoing Refreshment Department modernisation. Further refurbishment of the parliamentary estate will arise in following years.
10.	An illustrative chart of both Votes for 1999-2000 is set out at Table 4 and a five-year summary in Table 5.
History of Parliament Trust: Grant-in-Aid
11.	Since the financial year 1995-96, the History of Parliament Trust has received its Grant-in-Aid from the Commons Administration Vote. In the Estimates for 1999-2000 a provision of £968,000 has been made. It is set out in Table 1. Progress on research continues to be satisfactory and the History has now made available its work on CD-Rom in addition to hard copy, a development the Commission welcomes.
British-Irish Inter-Parliamentary Body
12.	Following its separation from the British Branch of the Inter-Parliamentary Union, the UK arm of the British-Irish Inter-Parliamentary Body continues to be financed by a grant-in-aid from HM Treasury. It operates under the oversight of an Executive Board consisting of the British Co-Chairman and Vice-Chairmen of the Body, a Representative of the Commission, the Head of the Finance Office and the British Clerk to the Body (who acts as Secretary to the Board). The Opposition Vice-Chairman acts as Accounting Officer and the Comptroller and Auditor General has been appointed as Auditor. The Board met once during 1998-99.
Report of the Accounting Officer
13.	The Accounting Officer for the two House of Commons Votes has reported to the Commission, giving information about changes in the numbers, pay, grading and conditions of service of staff which, subject to the Commission's procedures, were approved in the financial year 1998-99. The Accounting Officer's report, which includes statements of the complements and rates of pay of all staff at 31 March 1999, is appended to this report at Annex B.
House of Commons Services
Finance and Services Committee
14.	The Finance and Services Committee has asserted its role in examining the House Votes for the financial year 1999-2000. The Committee deliberately widened its annual examination of the two House Votes (Administration and Works Services) into an investigation of the financial control in the House and the provision of services to Members. The Committee had four sessions on the Estimates during the summer and autumn of 1998, having the benefit of advice from Departmental Finance Officers during its deliberations. Its conclusions, ranging widely over finance and service matters, were communicated formally to the Commission. In particular, the Committee reported its approval of the Board of Management's tougher control on House expenditure with the achievement of a six per cent overall cut in Departmental budgets for the year 1999-2000 and the establishment of a reserve fund to deal with unforeseen needs. The Committee made a number of other important recommendations on financial management and control to the Commission which have been useful and important in focussing attention on the review of management and services instigated by the Commission (see paragraph 17 below).
15.	The Commission fully supports the Board of Management's progress toward securing greater financial discipline and value for money while maintaining the highest standards of service for Members and being able to met the sometimes unpredictable needs of the House for new services (such as the setting up of new select committees). The Commission notes that in the recent survey of Members and staff, a high level of satisfaction with service was expressed in most areas.
16.	The Chairman of the Finance and Services Committee, as a Member of the Commission, has continued to act as a useful link between the two bodies whilst the membership of the Committee, which includes the Chairmen of the Domestic Committees, has meant that the opinion and advice of a range of Members of the House has been represented in its deliberations.
Domestic Committees
17.	Meanwhile the Domestic Committees have continued to support the work of the Finance and Services Committee, as well as the Commission, with detailed advice on areas within their individual remits. Specific instances of that advice are cited in this report, but throughout the session, a stream of communication with committees is maintained. The Commission is grateful for their advice and co-operation in the complex area of assessing services within the demands of modern administrative efficiency.
Review of the Ibbs System, November 1998
18.	In November 1998, the Commission instituted a review of the Ibbs system, following representations from a number of Members of the House that after the operation of the existing (Ibbs) system for one full Parliament, it would be timely and useful to look again at the management and provision of services to Members. The terms of reference of the review were to examine the
	"system of management and decision-making responsibilities for services to the House which were set up following the enquiry in 1990 by Sir Robin Ibbs".
	We are grateful to Michael Braithwaite and his team for the thorough and wide ranging work which they have done for the Commission. The review has been based on independent, professional expertise backed by a team of senior officials with close experience of the House's work and the needs of Members. The review team interviewed a large number of Members, as well as officials and others with relevant experience. Their report takes account of the large amount of evidence they have received. The Commission intends that the recommendations of the review should be decided upon and taken forward later in the year.
Millennium Readiness
19.	The House has been addressing the problem of millennium compliance vigorously over the past year. A project manager is ensuring proper co-ordination between the House Departments and with the House of Lords. All computer systems have been tested, and remedial work has been set in hand where necessary. Risks on other equipment with electronic components have been appraised; and business continuity plans are in preparation.
Information Systems
20.	Since 1996 there has been a considerable investment in manpower and financial resources in the House's information technology. While the Parliamentary Data and Video Network (PDVN) has been successfully stabilised, the Commission is not yet satisfied with the overall co-ordination and control of the House's technology support. The provision of information technology has become a major item of expense in the Administration Vote. Strategic policy is needed to regulate an increasingly complex area of House activity and the Commission look for support in evolving such a policy from the Board of Management, with advice from the Information Committee, as well as to the actual provision of services from the Communications Directorate. In respect of the work of the Information Committee, the Commission notes its First Report on the Supply of Members' Information Technology Equipment and Associated Services2 as a contribution to the general debate about provision of these types of services to Members.
Information for the Public
21.	The Commission welcomes the initiative of the Board of Management to review the provision of information by various House Departments to the public. Whilst not wanting to detract from the distinct quality of each Department's output, the Commission supports the move to greater co-ordination and where appropriate, to standardisation of the provision of information for the public.
Refreshment Services
22.	The Refreshment Department has had another reasonably successful year of business; the Commission notes an increase in the trading surplus in spite of the difficulties of operating a profitable service of quality in the changing circumstances of the House's sitting pattern. The final phase of the Refreshment Department modernisation, with the fitting of new kitchens, will undoubtedly cause inconvenience to Members, staff of the House and visitors, but the Commission is convinced of many benefits that will result from what is a long overdue modernisation. Every possible measure to minimise inconvenience to Members, staff and their guests, is being put in place for the period from July 1999 to February 2000, when some services will inevitably be restricted.
Accommodation for the House of Commons
23.	Since the Commission's last Report, good progress has been made on the building of Portcullis House, with a considerable part of the facade now visible and the roof being put in place. As expected the new building, which is on schedule and broadly within budget, is the single largest item of expenditure on the Works Vote. The Commission has been concerned with keeping close control over the project and is grateful to the Project Advisory Board (of officials of the House) which has been monitoring progress in detail on its behalf. The Commission believes that the building, which should be operational late in 2000, is a considerable addition to our national heritage as well as providing much needed accommodation for Members and modern, fully equipped rooms for the use of Select Committees. The Commission is satisfied with the results of the mid-term review it commissioned by the independent firm of Northcroft, accepting that some of its detailed recommendations will need to be implemented immediately to ensure that the project continues to a satisfactory conclusion on time and within budget.
24.	A claim for damages by Harmon CFEM Facades (UK) Ltd, was taken out against the Corporate Officer of the House of Commons in relation to the fenestration package for Portcullis House. Judgement had not been delivered at the time this report was agreed.
House Publications and The Stationery Office
25.	The Commission is grateful for the continued efficient and effective work of the Printing and Publishing Management Group (PPMG) in managing the complex and exacting printing and publishing requirements of the House. The existing contracts with The Stationery Office expire at the end of 1999 and the new contracts for the provision of House papers are designed to maximise the competitive circumstances of the tendering process while maintaining greatest possible flexibility for the House. A recommendation from PPMG on the successful bidder is expected after the summer recess. The Commission notes, with approval, the considerable benefits, including savings in expenditure, which have resulted from the arrangements following the privatisation of HMSO in 1996.
Childcare Facilities
26.	The existing Childcare Voucher Scheme covering House of Commons Staff has been in place since April 1995. Evidence from an earlier survey suggests that the scheme fully meets the needs of staff and is widely accepted as satisfactory by its users. The Commission notes the First Report of the Administration Committee on childcare facilities within the House3 which concluded, after conducting a survey, that users (up to 79% of respondents) are generally satisfied with the existing provision.
Other Decisions Concerning Staff
27.	The Commission is concerned with maintaining best practice as an employer ensuring an open, fair and non-discriminatory employment policy. The Equal Opportunities Policy of the House was reviewed during the year and a revised policy statement is under discussion with the Trade Union Side. In addition the Board of Management has been instructed to identify areas of action where equal opportunities policy needs to be more effective and to report to the Commission on a regular basis on progress in that area. A formal commitment was made to seek Investors-in-People accreditation.
28.	Decisions taken by the Commission concerning the complement, grading and pay rates of staff of the House are listed in the Accounting Officer's Report (see Annex B). New pay structures were introduced with effect from 1 April 1999 and changes to the management structures of the Departments of the House have been introduced, including the establishment of the senior staff structure. A new Management Code, setting out the terms and conditions of employment of the staff of the House, was issued. The staff appraisal systems were further developed with "objective setting" incorporated into the assessment process. A new Occupational Health, Safety and Welfare Unit was set up and reviews of health and safety and smoking policies were carried out and new policy statements agreed.
Whitley Committee
29.	Negotiations on pay and conditions of service and consultations on the issues outlined above, and other matters not requiring Commission approval, were conducted through the recognised unions, the main Whitley Committee and its Sub-Committees.
	1  On both the Internet (www.parliament.uk under 'Publications on the Internet/Other House of Commons Papers') and via, the PDVN, on the Parliamentary Intranet. 2  HC (1998-99) 76 3  3HC (1997-98) 825

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Prepared 26 July 1999