Select Committee on Public Administration Fourth Report


PROCEEDINGS OF THE COMMITTEE RELATING TO THE REPORT

WEDNESDAY 28 FEBRUARY 2001

Members present:

Tony Wright, in the Chair


Mr David LepperMr Andrew Tyrie
Mr Michael TrendMr Brian White
Mr Neil Turner

The Committee deliberated.

****

Draft Report (Special Advisers: Boon or Bane?), proposed by the Chairman, brought up and read.

Ordered, That the draft Report be read a second time, paragraph by paragraph.

A paragraph- (Mr Michael Trend) - brought up and read, as follows:

"Despite much excellent work which has gone into this report, the Committee's inquiry into special advisers has been fundamentally compromised. The terms of reference of the Committee set out in Standing Order No 146 are 'to consider matters relating to the quality and standards of administration provided by Civil Service departments, and other matters relating to the Civil Service'. While Short Money is a proper area of investigation by another House of Commons Select Committee, the Select Committee on Public Administration has clearly and mischievously operated outside its terms of reference in investigating Short Money. We can only conclude that this was done by those motivated by narrow party political considerations".- (Mr Michael Trend.)

Question put, That the paragraph be read a second time.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraphs 1 to 11 agreed to.

Paragraph 12 read as follows:

"Lord Neill reported that 'almost all witnesses made clear their view that special advisers were valuable components of the machinery of government'. This conclusion reflected those of a number of studies over more than thirty years and the evidence we received did nothing to contradict it. None of our witnesses dissented from this general view. A former adviser, William Plowden, explained their value: they can 'vicariously multiply Ministers' contacts with MPs, officials, outside interests and also with other Ministers, including the Prime Minister; evaluate proposals and advice coming up from officials; consult sources other than those favoured by officials; act as an informal sounding board for a Minister's ideas or anxieties'. Enthusiasts of this view argue that special advisers form a useful counterweight to what is sometimes perceived as civil service inertia, but even the FDA, the civil service trades union representing the grades most likely to feel threatened by advisers, were sanguine about their use. In their view the arrangement brought general benefits all round though there were 'occasional problems with individuals'. This is a useful reminder that. Whatever the benefits in principle. Much depends on the quality and contribution of individual advisers. The FDA also explained how the existence of advisers can help the smooth functioning of the civil service: 'Within the UK system, Ministers inevitably need certain tasks undertaking that, were they performed by civil servants, would take them across a political line. In practice the current system allows those functions to be undertaken by special advisers, thus preserving the impartiality of the civil service. Moreover, a special adviser performing their job effectively and reflecting the views of their Minister can assist greatly in the smooth running of the Department'. Nor did they think there was anything exceptional about the way ministers in the present Government used advisers, other than that 'Some of them had placed slightly more emphasis on the role of special advisers in certain circumstances'. They even agreed that the number per Minister might possibly be increased from two to three without resulting in a cabinet system. Lord Lipsey reported the alarm of one Permanent Secretary, on being told that his incoming Minister proposed to work without a special adviser. However, this general agreement on the value of advisers did not prevent concerns being expressed about some aspects of the present arrangements. We discuss these concerns shortly".

Amendments made.

Another Amendment proposed, in line 21, after "Department" to insert the words "although why 'party political' civil servants, as opposed to party officials outside the Civil Service are required for his task has never been satisfactorily explained". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 13 and 14 agreed to.

Paragraph 15 read, as follows:

"We believe that much of the criticism of the use of special advisers, concentrating as it does on their numbers, is misdirected. If they really improve the machinery of government, then it is clearly sensible to have as many as the system requires. If they are ineffective, or even damaging, then it is sensible to cull them. The key question is not how many there are, but what contribution they make to effective government. When this is established, the further questions concern the framework and rules within which they operate. Although we accept the general evidence on the value of advisers, it would be useful to have more particular evidence. Unfortunately, because of the limitations on the information available, it has not been possible for us to explore this as fully as we would have liked".

An Amendment proposed, in line 1, to leave out from beginning to word "although" in line 6 and insert the words "the main criticism of the current crop of advisers centres first on the highly party political nature of much of their activity and secondly on the danger that the sheer number of advisers so close to the most senior ministers in the government could compromise the traditional advisory role played by the neutral civil service". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, in line 8 to leave out from the word "evidence" to the end of the paragraph and insert the words "unfortunately, because of the limited amount of information provided by the Executive, and its refusal to allow special advisers to give evidence, it has not been possible for us to explore the role of special advisers as fully as we would have liked". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraph 16 agreed to.

Paragraph 17 read.

Question put, that the paragraph stand part of the Report.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Paragraphs 18 to 21 agreed to.

Paragraph 22 read, as follows:

"It may be that the work of advisers has changed somewhat since it was undertaken by the former advisers we interviewed (Dr Plowden, Lord Blackwell and Lord Lipsey). Certainly the FDA thought it had, particularly in respect of the 'work done by Alastair Campbell and his team'. However, our inability to take evidence from current advisers made it difficult for us to assess to what extent the role may have changed. This has made our work more difficult and less complete than it should have been. In the case of No 10 Downing Street, where the greatest number of advisers is to be found, the fact that the Committee's invitation both to the Prime Minister and to the Chief of Staff have been declined make it especially difficult for us to form a view about the role of advisers at the centre of government.

Amendment proposed, in linr 1, to leave out the words "It may be that the work of advisers has changed somewhat" and insert the words "The work of advisers has changed". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraphs 23 to 29 agreed to.

Paragraph 30 read, as follows:

"We are not convinced that a formal cap on the total number of advisers, as recommended by the Neill Committee, is the most sensible way to proceed. We believe that a better approach would be for Parliament to vote a sum of money for special advisers (as it does for Short Money). It would then be for a government to decide how it wanted to make best use of this allocation (for example between No 10 and the Departments, between particular Departments, and between policy advisers and political advisers). The present rules do not apply at all to No 10. Our approach would achieve the objective of limitation while allowing more flexibility in the deployment of special advisers and securing more accountability to Parliament. We therefore recommend that the limitation of special advisers should be governed by the sum voted by Parliament for this purpose".

Amendment proposed, in line 2, after the word "is" to insert the word "necessarily".-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, in line 3, to leave out from the word "advisers" to the second word "It" in line 4.-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, in line 9, to leave out from the word "recommend" to the end of the paragraph and insert the words "consideration should be given to limiting the number of special advisers by the sum voted by Parliament for this purpose".-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, in line 9, to leave out the word "number" and insert the word "limitation".-(The Chairman.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 31 to 33 agreed to.

Paragraph 34 read, as follows:

"Moreover, it is not always possible to distinguish between political and policy advisers. Although evidence suggests that where two advisers are in post there is a tendency to use one for political and the other for policy advice, as Dr Clarke indicated, when we asked each Department whether this was so the replies suggested that it is not invariable practice. Professor King agreed that there was 'overlap between the roles of providing policy and political advice'. Although the distinction between political and policy advisers is clearly a useful one, in practice there are policy-skilled political advisers and politically-informed policy advisers. It is for the government of the day, and for individual Ministers, to decide what particular mix of skills they require. Our recommendation (paragraph 53) would better enable this to be achieved".

Amendment proposed, in 9, to leave out from the word "require" to the end of the paragraph.-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraphs 35 to 39 agreed to.

Paragraph 40 read, as follows:

"Special advisers assist Ministers at public expense. Opposition parties represented in the House of Commons receive financial assistance for the conduct of their parliamentary business. This money is known as 'Short Money' after the Leader of the House who introduced it. A connection between special advisers and Short Money was drawn first by Lord Neill, who said 'one of the things I had been thinking about myself was whether you could have a type of Short Money scheme for special advisers'. Lord Lipsey offered a proposal: ' There is money for the Opposition, Short Money... what I think is uncomfortable about the present situation is that special advisers, and here I really refer to the political breed of special advisers, are paid just like they were any other civil servant out of the same pocket without any discrimination. What I would like to see is, as it were, a vote of Short Money for Government where it is not very much money but it would be subject to proper parliamentary control and scrutiny and would send a signal to people that these people are something really quite different from the normal Civil Service'. We decided to investigate further the suggested analogy between expenditure on Short Money and special advisers, the cost of each now being broadly equivalent since the Government's substantial increase in Short Money funding for opposition parties which the House agreed in May 1999. As a matter of courtesy, since the matter affects the House, we wrote to the Speaker, and the correspondence is printed as Annex 3 to the Minutes of Evidence".

Amendment proposed, in line 14, at the end to add the words "notwithstanding the fact that consideration of Short Money is clearly outwith the terms of reference of our Committee, which are set out in Standing Order 146 and which reads "to consider matters relating to the quality and standards of administration provided by Civil Service Departments, and other matters relating to the Civil Service.""-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraph 41 agreed to.

Paragraph 42 read, as follows:

"The representatives of those parties who gave us evidence on 15th November did not see a parallel between Short Money and special advisers. Ben Williams, for the Liberal Democrats said: 'I am not convinced that there is a parallel between the increase in the number of special advisers and the funding available to the parties through Short Money'. Margaret McDonagh, for the Labour Party, said: 'It is not something that we have debated but I support the position of both special advisers and the allocation of Short Money to opposition parties. However, I do not think they are in any way linked. Special advisers are there to give political advice to Cabinet Ministers'. David Prior MP, for the Conservatives, specifically denying the suggestion that special advisers and Short Money could be equated, said: 'The purpose of Short Money is to enable the opposition party to try and level the playing field against the government so that we have some real effort to hold them to account, given the tremendous resources that they have with press officers and the like' and 'Short Money ... is nothing to do with special advisers. Special advisers are in addition to that."

Amendment proposed, in line 2, after the word "adviser" to insert the words "all three specifically denied that special advisers and Short Money could be equated".-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Another Amendment proposed, line 9, to leave out from the word "Conservatives" to the word "said" in line 10.-(Mr Andrew Tyrie).

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraph 43 agreed to.

Paragraph 44 read, as follows:

"The payment of Short Money is governed by Resolution of the House. The latest Resolution, passed in May 1999, increased the overall amount payable to £4,863,000, an increase of 270 per cent and altered the payment basis. Whereas previously it had been necessary for the parties to put in a claim, payment is now made by the Fees Office provided that within nine months after the end of the financial year a certificate from the firm of accountants appointed by the party is received stating that 'the financial assistance received and claimed was expended on expenses incurred exclusively in connection with the party's parliamentary business'. If no certificate were received, no more money would be paid. The National Audit Office scrutinises all certificates as part of its annual audit of the Members' Salaries etc Vote Appropriation Account, but does not take its audit beyond this. The Clerk of the House and the Head of the Fees Office made it clear that they were bound by the terms of the Resolution of the House and could not go beyond it".

Amendment proposed, in line 2, to leave out the words "to £4,863,000, an increase of 270 per cent" and insert the words "by 270 per cent (the cost in 1999-2000 was £4,863,000 with a maximum for 2000-2001 of £5,012,000)". -(The Chairman.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 45 to 49 agreed to.

Paragraph 50 brought up and read, as follows:

"We suggested to the political parties that it might be appropriate to publish the accounts of how they spent Short Money. All agreed in principle. We note that the Official Opposition and its auditors were unable to give a categorical assurance that its Short Money funding was used exclusively for parliamentary business. We have further concerns that, after an approach by the Party to the Fees Office, a description of parliamentary business was arrived at, without consideration by the House, which seems to allow more latitude in how this money is spent. In particular we are not clear how 'communicating alternative policies to those of the Government of the day' (which is permitted under the expanded description) is different from 'political campaigning' (which is not)".

Amendment proposed, in line 2, to leave out from the word "principle" to the end of line 6.-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Paragraph 51 agreed to.

Motion made, to leave out paragraphs 52 and 53.-(Mr Andrew Tyrie.)

Question put, That the paragraphs stand part of the Report.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Motion made, to leave out paragraphs 54 and 55.-(Mr Andrew Tyrie.)

Question put, That the paragraphs stand part of the Report.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Paragraphs 56 to 65 agreed to.

Paragraph 66 read, as follows:

"We share the reservations about special advisers exercising executive powers. It was meant to be a helpful development (just as the shift of the Chief Press Secretary from being a civil servant to being a special adviser could be seen as serving the cause of honesty) but it has unhelpful implications for established relations within government. The role of special advisers should add to the effectiveness of these relations, not compromise them. Not only should the experiment not be extended but the existing arrangements should be reviewed".

An Amendment made.

Another Amendment proposed, in line 6, to leave out the word "reviewed" and insert the word "abandoned". - (Mr Andrew Tyrie)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 67 to 74 agreed to.

Paragraph 75 read, as follows:

"In Session 1997-98 we produced a Report on 'The Work of the Government Information and Communication Service (GICS)'. In that report we examined concerns that had been expressed as to whether the Prime Minister's Chief Press Secretary had been using his office to forward the interests of the Government in a way inappropriate to someone paid from public funds as a special adviser. We found no evidence to substantiate this at that time and nor was any submitted when we took further evidence from the service in May last year. In our 1997-98 Report we said 'it is difficult to avoid some advantage naturally accruing to the party in power from the use of public money to present the Government's policies in their best light'. That remains the intractable fact. We note that the FDA told us in the course of this inquiry that it was not a completely new concept having a special adviser in the role of Chief Press Secretary and that it was not necessarily inappropriate to do so. Whether it is wise for a government to fill the post in this way is another matter. We welcomed then and welcome now Sir Richard's repeated assurances that he remained vigilant to ensure that advisers do not overstep the mark, but we note that the GICS handbook says little or nothing about the Service's relation to advisers and recommend that the next edition should set out the relationship in more detail. Tensions in this area are inevitable, which is why continuing vigilance is appropriate in policing the boundary line".

An Amendment proposed, in line 6, after the word "year" to insert the words "Since then, Alastair Campbell has been reprimanded for ignoring Sir Richard's guidelines, given to this Committee in oral evidence on the limits to his party political activity". -(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

An Amendment made.

Another Amendment proposed, in line 9, after the word "fact" to insert the words "particularly with respect to parliamentary activity, the imbalance which Short Money was designed largely to address when it was introduced". -(Mr Andrew Tyrie)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph, as amended, agreed to.

Paragraphs 76 to 79 agreed to.

Paragraph 80 read, as follows:

"The distinction between an adviser on duty and an adviser off-duty is a fine one to draw, especially in the context of a 24-hour news culture. It is hard to see how an individual could erect sufficient Chinese walls between what he or she knows and does through current employment and through other means. Mr Campbell's intention to resign his employment as soon as a general election is called to work full time for the Labour Party, then return to his post in the event of a Labour victory, is one example of the difficulties. The question is whether there could be a better system. We asked Lord Neill whether it might be possible to distinguish between the work done by advisers for the government and work done for the party and pay them pro rata. He said that he did not know what each of the advisers in post during his inquiry actually did, not having seen their individual contracts, so he did not know how much party work they did but he thought that, for practical reasons, such a scheme would be hard to implement. He said 'I would need to see more evidence as to how it could be done, how it would be workable, how you could partition a day of a special adviser, so much was party political and so much was not. The telephone would ring: "Am I allowed to take another call today? Is that a party political call?" I am not making a joke of it, but it would be incredibly difficult to draw a line, a division such as you suggest'. Such difficulties are inescapable. They would, of course, disappear if advisers were paid out of party funds, but this would be at odds with our view that policy and political advice to Ministers is a proper activity that is appropriately funded by the public purse. Moreover, other difficulties would arise. Tensions and boundary disputes are inevitable, which is why proper policing and codes of conduct are important".

Amendment proposed, in line 1, to leave out the words "a fine one to draw" and insert the words "little short of absurd".-(Mr Andrew Tyrie.)

Question put, That the Amendment be made.

The Committee divided.


Ayes, 2Noes, 3
Mr Michael TrendMr David Lepper
Mr Andrew TyrieMr Neil Turner
Mr Brian White

Paragraph agreed to.

Motion made, to leave out paragraph 81 and insert the following paragraph

"Special advisers can make a positive contribution to good government. They can also prejudice the neutrality of the civil service and provide an unacceptable party political advantage to the governing party. Both the number of advisers and the breadth of their party political and other activity are an increasing cause for concern. Lord Neill's recommendation for a Code of Conduct is an important start. The Code of Conduct would enable clear 'rules of engagement' to be provided where advisers are assuming functions previously performed by civil servants. Special advisers' contracts should be consonant with the Code of Conduct and, where they deviate from the model contract that is already published, put into the public domain. The responsibility for enforcing the contract should lie with Permanent Secretaries answerable to Select Committees in Parliament. Special advisers who are identified as doing a considerable amount of highly party political work should be paid from party funds and not the taxpayer. There will always be difficulties of definition and in policing the line but the widespread perception that over the last decade advisers have done an increasing amount of highly partisan work at tax payers' expense is not only constitutionally questionable but unacceptable to a wider public. The doubling of advisers in Whitehall since 1997 and, in particular, the tripling of the number of advisers at the heart of the government in 10 Downing Street, has made action all the more necessary. This is what the recommendations of this Report are intended to achieve". -(Mr Andrew Tyrie.)

Question put, That the paragraph stand part of the Report.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Motion made and Question put, That the report, as amended, be the Fourth Report of the Committee to the House.

The Committee divided.


Ayes, 3Noes, 2
Mr David LepperMr Michael Trend
Mr Neil TurnerMr Andrew Tyrie
Mr Brian White

Ordered, That the Chairman do make the Report to the House.

Ordered, That the provisions of Standing Order No 134 (Select Committees (Reports)) be applied to the Report.

Several Papers were ordered to be appended to the Report.

Several memoranda were ordered to be reported to the House.



 
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