Select Committee on Environment, Food and Rural Affairs Minutes of Evidence


Examination of Witnesses (Questions 40-59)

17 DECEMBER 2003

LORD HASKINS AND MARCUS NISBET

  Q40  Mr Breed: Is not the brutal truth though that the Government, having set up the Countryside Agency literally only a few years ago, with an extraordinary amount of money to do so, and since, will find it deeply embarrassing now actually to get rid of it? Thus to try to thrash around to find a role for it, rather than recognising that the Countryside Agency was duplicating much of what Defra did, and that its functions would be undertaken more properly in the way in which you are recommending, they are not going to do that. Therefore, much of the real streamlining and the real sort of decentralising out that you are recommending is going to be frustrated?

  Lord Haskins: No, I do not think that is right. Government has not made it completely clear what it means about the Countryside Agency, but it has said it is going to be much smaller. What I read into that is, the Countryside Agency currently manages a number of funding stream programmes and those would devolve away from the Countryside Agency, either to local deliverers, like local authorities, or maybe to the new agency. The Countryside Agency would not be in the delivery business at all. The second point of my report, of course, is that the Countryside Agency was set up before Defra existed. The creation of Defra, in my view, made a lot of the Countryside Agency's role redundant and that is why I recommend that it should disappear altogether, because Defra should be doing this for itself. Any department has got a responsibility to look to independent advice and policy issues. If Mrs Beckett decides that she has a small Countryside Agency which is going to give her that sort of independent advice, I could live with that, as long as it was not too big.

  Q41  Mr Breed: In another way, you are emphasising exactly what I said, that, in fact, actually to dispose of the Countryside Agency totally would be an embarrassing situation. As you say, it was set up before Defra, because the Government, at that stage, had declined to set up a Department of Rural Affairs. Because of the problems of MAFF, it was decided that would be the best way forward, but, having already set up the Countryside Agency, we had then a duplication, and a very expensive one at that. At the end, if what you are saying is, right, just to keep the Countryside Agency in name, with very little cost, I suppose that would be right. Are you certain that, in fact, as Mr Wiggin was saying, in terms of the delivery, the delivery needs to be pushed down as far as possible to the most local element? That seems to be something which has been fought against in recent terms, we have seen centralisation rather than decentralisation. How can you be certain that those elements, which are very important, are going to be followed through?

  Lord Haskins: You are right, I am putting down a marker to say that this process of centralisation started about 1944 and we have got to try to reverse that trend. I am pretty optimistic that a large amount of decentralisation will happen, but the critical issue is Defra's relationship with the Government Offices, local authorities and the Regional Development Agencies. I think those are the three critical relationships.

  Q42  Mr Breed: Do you think it would be a good idea if Defra removed itself from London and located itself somewhere into a rural area?

  Lord Haskins: Personally, as somebody with roots in Yorkshire, I would be delighted if Defra were up in Yorkshire, it would make life much easier for me. I think it is a serious point. I do not think it will happen. The NFU is moving to Warwickshire now, which I think is an excellent move, and if Defra followed along the same lines I do not think anything would be lost, but I doubt if it will happen.

  Chairman: We had better adjourn whilst we all put in our bids, but, before we do that, David Drew.

  Q43  Mr Drew: The decentralisation model, which obviously is very attractive, as Gillian teased out from you, you do tend to stay at the regional level. Is there not just a thought in the back of your mind that really you could have gone the whole hog and actually decentralised down to the local community level? Those of us, and I will declare an interest, like Mr Taylor, who are existing parish councillors feel that the problem there is that people know what they want to do in their communities, but they have a panoply of different people who come along to tell them of all the wonderful things that they could be doing, but when it comes to the money it has all been spent on the co-ordinating role. Could you not have been even more radical and said "What we need to do is actually get it down to the communities themselves," with some co-ordination through rural community councils, for example, in county areas, which do an invaluable job at a very cheap end of the cost scale? Is not that really where we should have got to?

  Lord Haskins: I think we have to bear in mind that much of the agri-environmental delivery stuff will require a high degree of expertise, of which there is plenty. It is too much, to expect that every parish council is going to have the expertise to manage the  implementation of a complicated agri-environmental scheme. On some issues, like Vital Villages, I agree, the more that can be done at the local level the better. The structure there is very uneven, we did find that, there are 10,000 parish councils, they are not all 10,000 brilliant ones, I can tell you, and I think we need to go step by step on that. I would be delighted if we could get the 173 rural local authorities doing a proper job there, I would be delighted, if we could do that.

  Q44  Mr Drew: Just as a rejoinder to that, is there not an argument that unless you give people the responsibility they will always be subject to this view that it cannot be decentralised? I accept that you could go part of the way to local authorities, but in many rural areas there is a tension, where you have got three layers, between the parish councils, the district councils and the county councils. There is a feeling that it is only a dribble of resource which gets down there, and if you really want to make the changes and turn round, let us be honest, some of the decay that there is in rural areas, you have to give that level of responsibility and take the risk?

  Lord Haskins: Yes, I agree. It depends. If you take some of the environmental things we are talking about, you cannot leave them to just one council. The Environment Agency in dealing with flood defences, may have to work with two or three different regions, so you have to deal with problems on a case-by-case issue.

  Q45  Alan Simpson: Lord Haskins, I would like to come back to a point which Gillian Shephard raised with you, which is about accountability. In your answer to part of her questions, you talked about, I think, a sensible business would consult with those responsible for delivery. I am just a bit anxious that, although I can understand the way you will see this from a business angle, one of the differences here is that customers in businesses can take their purchasing power elsewhere. We have a different relationship here, where we are not talking necessarily about purchasing customers but customers who are dependent on there being a follow-through from policy to delivery. I am just worried that what appears to be missed out here is the word "accountability". Are you giving Defra a "get out of gaol free" card? We have innumerable times on this Committee where we get the Defra officials here, and they love policy, they will talk about mission statements or emissions statements, or whatever it is, but cannot be bothered to say how they are delivering, and how we will know and how we can hold them to account, and they disappear like dust. I am worried, you see, that in your suggestions, radical though they may be, what we will lose is this fundamental issue about accountability. How do you address that?

  Lord Haskins: Partly, this is the fault of Parliament. Parliament and ministers love to get into the nitty-gritty of delivery, to get involved in issues which they cannot possibly manage or control themselves. The flat accountability is with the local authority operating on behalf of Defra. Distinguishing between a failure of policy and a failure of delivery is very important. This is much more of a problem for a department like Health perhaps than it is with Defra, where I would question whether it is the Prime Minister's fault that a particular hospital in London ends up having an old person waiting for an excessive time for treatment. That to me would be the responsibility of that hospital. If the Prime Minister and people in the centre are going to take responsibility for every bed-pan in the Health Service falling on the floor then you are going to have a completely unmanageable form of government, and that is what you have got in the National Health Service. That, to an extent, is what we have in Defra. It does behold Parliament, I think, to concentrate on the policy-making side, which is mainly your responsibility, to challenge the policy-making side, to make sure the policy is sound and valid. Of course, Parliament must also make sure that deliverers are accountable for spending the money properly and delivering the policy that has been agreed by Parliament, but we must try to separate them. I always use the analogy, I think I used it the last time I was here, when all the IRA prisoners were jumping out of Cambridge gaol, about seven or eight years ago, when Michael Howard was then the Home Secretary and Derek Lewis was running the prisons. There was a question, who was responsible, meanwhile more and more IRA people were jumping out, and eventually it was resolved by Michael Howard firing Derek Lewis. There was a lot of controversy about this. I think actually Howard was right, because the accountability was with the Prison Service. It was interesting that the French health crisis this summer, where all these people died in Paris because there were not enough doctors around in Paris during the heat-wave, when it came to it, the Surgeon General who ran the Health Service resigned, the Minister did not. Now there is some debate about this, because the Minister did not even come back from his holidays. The principle of somebody in charge of those hospitals being made accountable for them clearly is right. If you had it the other way round then those people who were running those hospitals would say, "It's not me, Joe," and they would pass it up to the top, and eventually there is no accountability, which is what happens across Whitehall departments at the moment.

  Q46  Alan Simpson: I can see all of that, and, in fact, that is pretty much the line we get from Defra at times, I think. They like the notion that they make policy but they want the responsibility to be passed elsewhere. As a Committee, I think really we struggle at times to get answers from the permanent officials, whom we are reluctant to sack, about what is happening and why it is or is not happening. I have a lot of affection and time for people in local government, that was part of my route in here, but I think we ought not to have a romantic view about local government. The various different layers of local government are more than capable of falling out with each other about not the delivery of services but who gets the biggest slice of the cake. I am worried about the people who are on the ultimate receiving end of this and there being no independent voice which says, "Hang on, fellas, you're all messing up; we reserve the right actually to hold all of you to account, not to be the arbiters of some unholy scrap which takes place between different layers of government." Why are you taking that out?

  Lord Haskins: That would require 400 ombudsmen, in each local authority for each particular activity, just checking that their citizens are getting a proper deal. It is quite ambitious, I would have thought.

  Q47  Alan Simpson: I am not calling for 400 ombudsmen. I asked for there to be an overall structure which is independent of all this, which holds the whole process to account?

  Lord Haskins: You do have an Audit Commission and you do have the National Audit Office. The NAO is there to make sure that public money has been spent in a proper way. The Audit Commission does a reasonably good job in that respect on behalf of citizens. We have also the Rural Affairs Forum, which is there to do just that. Some people are rather critical of how the Rural Affairs Forums perform, because they may be a talking shop but the principle of those regional Rural Affairs Forums holding local deliverers to account is correct, and my report deals with this quite extensively.

  Q48  Mr Mitchell: I thought you were saying, bring back Sir Walter Monkton, in your answer to Alan. Why are we so concerned with delivery? I think there are two answers to that question. One is that our minds do not work on a bigger scale than the minutiae of delivery, and that is what we are about, but, more important, we should be dealing with policy. We do not control policy, it is all controlled from Brussels, from whence all blessings flow. You want to make a distinction between policy and delivery, but Defra itself is of very little importance in the policy process, it is all decided in Brussels. Would it not be better really to cut out Defra altogether and have policy just formulated in Europe and delivered better on the ground?

  Lord Haskins: In my experience of government departments, the most challenging policy-making government departments are those who have a European agenda, because it is infinitely more complicated, more challenging. I sit in another place and we spend a lot of time looking at European policy issues, as you do here. It is important to have very high quality people representing our interests in dealing with Brussels.

  Q49  Diana Organ: Your proposals have been radical, but why did you not make an even more radical proposal, which answers the questions which have come from Mrs Shephard, Mr Simpson and others, which is, why did you not just say, "Well, let's have Defra, let's have all the delivery through local authorities and a Rural Payments Agency, which will be run by Defra for the payment for the stuff that is coming out of Europe"? Why did you not do that? Why have you got this integrated agency idea, why do we not just get rid of the second-rate, secondary agency and have—

  Lord Haskins: Would you get rid of the Environment Agency too?

  Q50  Diana Organ: Yes, as delivery. Why cannot it come through the money stream to local authorities which have accountability and the accountability is to the elector; why not? Why could you not have been really radical, to say, "That's what local authorities are for, they're for delivery, they're for provision of services, they are accountable," and do it that way, and have a specialist agency, the Rural Payments Agency, to deal with the very complex issue of the payment for CAP and levies?

  Lord Haskins: Actually, I worry about the processing of agri-environment schemes.

  Q51  Diana Organ: It will be the Rural Payments Agency?

  Lord Haskins: It would be a gigantic department. The Environment Agency employs 10,000 people. This new agency, I guess, would employ 2,500. We have got 173 local authorities involved in rural delivery. I can put up with some inconsistency but I think you could end up with a very unsatisfactory way of central policy being delivered. These are still national policies being delivered at local level. Now if you get a huge variation at local level then you get chaos. I think you have to ensure some sort of cohesion.

  Q52  Diana Organ: You could, say, look at education, which is pretty massive, and how different local authorities deal with it. We are left with the situation, are we not, where there is a delay, it is fairly obvious from your report that you were not hugely impressed with the Countryside Agency and its delivery, hence you have made the recommendation that, effectively, the Countryside Agency is to be completely disbanded?

  Lord Haskins: What I meant was, events have overtaken the Countryside Agency. Whether there was a case, or not, for the Countryside Agency, three or four years ago, the creation of Defra itself   meant that events have overtaken the Countryside Agency.

  Q53  Diana Organ: Given that, at this point then, would you say that the taxpayer is getting value for money with the work and funding of the Countryside Agency in its delivery?

  Lord Haskins: I did not actually make that assessment, because I was not asked to make that assessment.

  Q54  Diana Organ: Having looked at it now, would you say that the taxpayer gets value for money for   the money which is spent funding the Countryside Agency?

  Lord Haskins: I would say that, generally speaking, a lot of these financial incentives, funding streams, must be of questionable value. For example, one of the Countryside Agency's national schemes: £1 million. That is big, in terms of a national scheme. One of our strong recommendations is that those 77 funding streams should be rationalised to give better value for money, and obviously that includes the Countryside Agency. I did not look at all the schemes in detail because there were 77 of them.

  Q55  Diana Organ: Given that we have got delays, actually we are going to have to put up with the Countryside Agency being a major deliverer, are we not? Why do you think the Secretary of State rejected your recommendation that the Countryside Agency be completely disbanded?

  Lord Haskins: You will have to ask her that.

  Q56  Diana Organ: I am asking why you think she rejected it?

  Lord Haskins: As I understand it, she agreed to the disbandment of all the Countryside Agency's delivery responsibilities. They will go elsewhere. That was the main objective behind the report, to rationalise the delivery side. The policy side of the Countryside Agency was an add-on, to me. I was not actually asked to look at the policies but I did make the recommendation. On the delivery side, I am happy that they are going to deal with that. Now how quickly that takes place, we will have to wait to see what Defra comes up with in April.

  Q57  Diana Organ: What it is left with is that it seems to be there is going to be a little bit of the Countryside Agency which is going to offer advice to the Government, but I understand that Defra already has its own Rural Policy Unit, does it not?

  Lord Haskins: It does.

  Q58  Diana Organ: Why do we need the Countryside Agency, it is neither of use nor ornament?

  Lord Haskins: My report says that, more or less.

  Q59  Diana Organ: Yes, but I am trying to tease out of you why you think it is that the Secretary of State has actually gone against what seems to be a fairly clear recommendation from you, when you have been asked to do this job?

  Lord Haskins: She can do what she likes with this report, at the end of the day. I have written the report for her, if she throws it on the dump that is her business. I am mildly encouraged that she has accepted so far the vast thrust of the report, including the comments on the Countryside Agency. The Countryside Agency budget is £114 million at the moment, but, what Mrs Beckett is considering, I would be surprised if it cost more than £3 million or £4 million to do.


 
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