| 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 1999-2000. As in previous Reports it has been necessary
to include some reference to events outside the period. |
| Form of the Report |
| 2. |
The form of this Annual Report differs somewhat from previous
annual reports. A report from the Board of Management prefaces reports
from individual departments. There is a new emphasis on reporting
progress on departmental business plans, which set out objectives
as well as plans, in the sections summarising the organisation and
services of each Department of the House (Annex A). 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 eleven meetings during the course of the financial
year. |
| Questions to the Commission |
| 4. |
Questions to the Commission are answered once a month together
with Questions to the President of the Council. Mr Archy Kirkwood
MP answers Parliamentary Questions on behalf of the Commission.
Thirty-nine questions were tabled, of which five received an oral
answer. |
| Accounting Officer |
| 5. |
Mr William McKay CB has been Accounting Officer since January
1998 on his appointment as Clerk of the House of Commons. |
| House of Commons Expenditure |
| 6. |
The House is in the process of moving to resource accounting for
2000-2001. In preparation for this, the two administrative Votes
were merged on 1 April 2000. Thus in this report, historical figures
are shown under the separate Administration and Works Services Votes,
but future expenditure (from 2000-2001 onwards) will be shown as
a single Administrative Services Vote. |
| The Vote for the House of Commons:
Administration (Class XVIII, A, Vote 1), 1999-2000 |
| 7. |
Estimates for 1999-2000: A summary of the Estimate and Outturn
for 1999-2000 is set out in Tables 1 and 2. The Outturn was
£81,281,000, which was £3,979,000 less than the Estimate
due, in the main, to lower than forecast expenditure on travel,
security and capital expenditure, offset by increases in communications
and computer costs. |
| The Vote for the House of Commons:
Works Services (Class XVIII, A, Vote 2), 1999-2000 |
| 8. |
Estimates for 1999-2000: A summary of the Estimate and Outturn
for 1999-2000 is set out in Table 3. The Outturn was £83,302,000,
which was £16,303,000 less than the Estimate due, in the main,
to delays to billing for work on the new parliamentary building
(Portcullis House). |
| The Vote for the House of Commons: Administrative
Expenditure (Class XVIII, A, Vote 1), 2000-01 |
| 9. |
Estimates for 2000-01: From 1 April 2000, the Administration and
Works Services Votes were merged into one Vote: House of Commons
Administrative Services (Class XVIII, A, Vote 1). The main Estimate
for the administrative expenditure of the House in 2000-01, which
was laid on the Table by the Speaker on 11 April 2000, amounted
to £150,521,000 and is summarised in Table 4 & 5.
The Estimate and forward plans include provision for development
of computer-based services and replacement of computer equipment.
The major item is the continuing work on the new parliamentary building
(Portcullis House). Other major works in progress include: refurbishment
of the Norman Shaw South building, St Stephen's Tower and other
buildings; cabling of the House for the Parliamentary Data and Video
Network; boiler replacement; committee room air conditioning and
restoration; fire compartmentation; and stone cleaning. |
| 10. |
An illustrative chart of the House of Commons Votes for 2000-01
is set out at Table 6 and a five-year summary in table 7. |
| 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 2000-01 a provision of £1,017,000 has
been made. It is set out in Table 1. Progress on the History
is broadly satisfactory though we think it needs to be the subject
of continued monitoring, given the sums of public money being used
in support of the Trust. We welcome the broad acceptance by the
Trustees of the recommendations of the control assurance review
conducted by the Internal Review Service which should contribute
to further effective financial control. |
| British-Irish Inter-Parliamentary
Body |
| 12. |
The UK element of the British-Irish Inter-Parliamentary Body (which
celebrated its Tenth Anniversary in February 2000) 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 Director of Finance Policy Directorate 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 three
times during 1999-2000. |
| 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 1999-2000. The Accounting Officer's report, which includes
statements of the complements and rates of pay of all staff at 31
March 2000, is appended to this report at Annex B. |
| House of Commons Services |
| Finance and Services Committee |
| 14. |
The Finance and Services Committee has continued to scrutinise
financial aspects of particular House projects referred to it by
the Commission or through the Domestic Committees. In addition,
the Committee has continued its detailed monitoring of the House's
estimates, which it does in the context of the public expenditure
survey, in the summer. The Committee also scrutinises the financial
administration of the House through contact with the Board of Management,
noting considerable improvements in that administration over the
last two years. The Committee has continued to take an interest
in the change in financial management and governance being introduced
into the House following the Braithwaite Report (see paragraphs
16 to 19 below). The Chairman of the Committee, as a Member of the
Commission, provides a useful link between the two bodies and the
Domestic Committees. |
| Domestic Committees |
| 15. |
The Domestic Committees have continued to provide advice and act
as a channel for Members' views about services to the Commission.
Many of the matters set out in this Report have had the benefit
of scrutiny by these Committees. The Commission is grateful for
the support of their advice and co-operation in meeting greatly
increased demands for services in the House, as well as achieving
administrative efficiency. |
| Braithwaite Report |
| 16. |
The Braithwaite Report was made to the Commission in the summer
of 1999 following the Commission's earlier decision to invite Mr
Michael Braithwaite to undertake a review of management and decision-making
responsibilities for services in the House. We are grateful for
the thorough work done by Mr Braithwaite and his team which was
assisted by the participation of the Rt Hon Lord Newton of Braintree,
formerly Leader of the House of Commons. We considered the substance
of the Report at three full sessions of the Commission, the last
on 19 July 1999. It was subsequently debated in the House on 20
January 2000. |
| 17. |
During the debate, Members understandably focussed mainly on service
rather than governance issues. In our opinion the governance issues,
which broadly aim to streamline and make the handling of domestic
business by the House much more efficient, effective and modern
are as important, if not more important than the comments on services
for they will provide the structure through which improved services
can be delivered. In this sense, we understand the report to be
building upon the experience the House has acquired since the Ibbs
reforms were effected in the early 1990s. In particular, certain
aspects of financial management are to be put on a sounder footing. |
| 18. |
The Board of Management has made considerable efforts over the
last few financial years to improve the monitoring of expenditure
and to control it more effectively. Whilst recognising that sometimes
unpredictable demands are made on House budgets - the Westminster
Hall experiment and new select committees are examples - we
welcome the Board's steps towards tighter discipline. Other administrative
reforms, such as a development of strategic policies in areas of
manpower planning, information services and communications, as recommended
by the Braithwaite Report, articulate policies already being pursued
by the Board of Management. We commend the Board for taking these
initiatives which have our full support. |
| 19. |
As part of these measures, a new Audit Committee has been established.
Our recognition of the seriousness of the work of audit is emphasised
by the fact that two Commissioners, Sir George Young and Mr Archy
Kirkwood will serve on the Committee. We have also appointed Sir
Thomas Legg KCB QC, with his considerable experience as an Accounting
Officer and his familiarity with the workings of Parliament, as
the external member of the Audit Committee. In addition to the Audit
Committee, another principal recommendation of the Braithwaite Report,
the establishment of the Office of the Clerk of the House, has been
put in place. The staff in that office will be an important support
for the Board of Management in the exercise of its corporate responsibilities,
which we have mentioned already. The implementation of the other
recommendations of the Braithwaite Report will be brought forward
for our decision on a rolling basis so that we will control the
pace and extent of the changes to House administration. |
| Information Systems and Information
Technology |
| 20. |
The development of a modern, efficient information system is vital
to any organisation at the threshold of the twenty-first century.
Whilst great progress has been made with the quality of the Parliamentary
Data and Video Network (PDVN) services and in the linking up all
Members of the House to it, a complex series of issues needs to
be tackled to ensure continued success. We recognise the move toward
a more cost-effective centralised supply of new technology which
needs to retain sufficient flexibility to meet the needs of its
users. We are also aware of the importance that the new technology
can have for projecting Parliament's image to the public at large.
In this respect we support the proposed redesign of the website
which may be the first point of contact with the House for many
of our younger citizens. However we also note the growing costs
in this area. We believe that expenditure amounting to over five
per cent of the House's budget must be kept in strict control despite
the importance of the service to Members and officials in the House.
We are grateful for the work of the Information Committee and the
Information Systems Steering Group (ISSG) in this area of service
to Members which is described in further detail in the Report from
the Board of Management. |
| Information for the Public |
| 21. |
We have been aware for some time of the disadvantages of the separate
handling of information for the public from different departments
of the House although we recognise the generally high quality of
the information being provided. It is part of the new strategic
approach to House administration to co-ordinate across-the-House
resources. We were therefore pleased when the Board of Management
produced plans for bringing together and streamlining what individual
departments had been doing independently of each other. A Communications
Adviser is to be appointed to oversee this important area of House
activity to which we give our strong support. |
| Line of Route |
| 22. |
We welcome the re-opening of the tourist route through the Palace
of Westminster (known as the Line of Route) to the public in the
summer recess, subject to the conditions which the House agreed
to on the basis of recommendations of the Administration Committee. |
| Refreshment Services |
| 23. |
The final stage of the Refreshment Department modernisation programme
(Phase F) was successfully completed on time and we are grateful
to everyone who made that possible. Whilst Members and officials
had to suffer some inconvenience during the renovations, the results
particularly from the hygiene and health and safety aspects were
long overdue and are very much welcome. We are grateful to the Catering
Committee for overseeing successful efforts to minimise the inconvenience
during the necessary works. We are aware also that the surplus on
the Refreshment Department Trading Account has narrowed over the
financial year and that it may be necessary to review the 5 per
cent trading target surplus in the future. |
| Accommodation for the House of
Commons |
| 24. |
The most significant and indeed exciting event in the area of
domestic planning and administration has been the building of Portcullis
House, bringing accommodation for over 200 Members, many members
of their staff and a new range of Select Committee rooms. After
taking account of the 11-months delay in gaining possession of the
site from London Underground Ltd., this project has come in on time
and at approximately £230m, which is significantly below the
£250m budget. We record our thanks to Members of the Accommodation
& Works Committee, officials in the Parliamentary Works Directorate
and other Departments of the House for working towards what we think
is a proud achievement in our national heritage as well as an invaluable
addition to the parliamentary estate. |
| 25. |
Throughout the project of the Portcullis House, the Commission
has been concerned with obtaining value for money. Detailed supervision
by the Accommodation and Works Committee has been matched on the
official side by the Project Advisory Board which has met monthly.
The Board has benefited from two external members with considerable
experience in the surveying profession and as a public service client
for a large building, respectively. A report from Mr Peter Bosworth
of Kappa Consultancy Ltd was commissioned at an early stage and
its recommendations were put into effect. We were also pleased that
the independent mid-term review which we commissioned and which
was conducted by the firm Northcroft Construction Consultants Ltd,
confirmed that the House was indeed getting value for money invested
in the project. Scrutiny by the Commons Internal Review Service,
the NAO and a dialogue with the Treasury have been maintained throughout
the life of the project. |
| 26. |
On 28 October 1999, His Honour Judge Lloyd QC gave judgment on
liability in an action which was brought by an unsuccessful tenderer
for the fenestration contract for Portcullis House. The judge held
that the Corporate Officer, on behalf of the House, was liable to
Harmon CFEM Facades (UK) Ltd for breach of the Public Works Contracts
Regulations 1991, of European law and implied contract. The House
is seeking leave to appeal a subsequent judgment on interim damages
given on 29 June 2000. The matter is therefore still sub-judice. |
| 27. |
Following the principal judgment we established an independent
inquiry. On 17 January 2000, Sir Thomas Legg, a former Permanent
Secretary of the Lord Chancellor's Department, and Mr Peter Bosworth,
of Kappa Consultancy Ltd who specializes in project management,
were appointed, to consider the judgment in the case, to inquire
into the circumstances which led to it, and to advise him, and through
him the Commission, on any action to be taken, including any changes
in the structure and practices of the Parliamentary Works Directorate. |
| 28. |
Sir Thomas and Mr Bosworth completed their inquiry, and submitted
their report, on 21 March 2000. The inquiry concluded in the first
place that serious mistakes were made in the handling of the fenestration
contract, which exposed the House to liability; and secondly that
in future major projects the Parliamentary Works Directorate should
establish more clearly: (a) the roles and responsibilities of key
members of the project team; (b) a project management process to
include guidelines and control systems; and (c) lines of governance
within a culture of professional and technical support; and that
these recommendations should be taken into account in the current
review of the Parliamentary Works Directorate. |
| 29. |
We have considered the report of the inquiry and accepted its
conclusions. |
| House Publications and The Stationery
Office |
| 30. |
The House's needs in this area are complex. Since our last report
new contracts have been negotiated in order to ensure the efficient
and speedy production of House papers on a good value for money
basis. We received a full account of the tendering process and the
interim arrangements from the Printing and Publishing Management
Group (PPMG). The exercise resulted in the award of the contract
for electronic publishing as well as for Select Committee printing
to The Stationery Office (TSO), on the basis of a revised bid. In
the absence of alternative bids, TSO has also been awarded the contract
for the daily Vote Bundle, vital for the daily working of the House.
We thank the PPMG for its efficient execution of a most important
service to the House, which has led to considerable savings over
the past few years and which are described in further detail in
the Board of Management Report. |
| Personnel Matters |
| 31. |
The Commission remains concerned with maintaining best employment
practice. Toward this end, two House departments and the Speaker's
Office have achieved accreditation to Investors in People, and others
are following. The Commission is concerned with ensuring an open,
fair and non-discriminatory place of work. It also endorsed a challenging
programme of equal opportunities measures. It has asked the Board
of Management to keep it informed of progress. A training programme
for senior management has been put in place. We are satisfied that
this policy is being carried forward effectively. |
| 32. |
House-wide personnel matters are co-ordinated by the Planning
and Management Committee (PMC) and we are grateful for its work
in the development of pay and personnel policies appropriate to
the needs of the House. A new staff handbook has been issued. Further
details of these matters, which include important health and safety
policies, childcare arrangements and the issue of a new staff handbook,
are described in the Board of Management's report. |
| Whitley Committee |
| 33. |
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. |
