Select Committee on Treasury Tenth Report


6  Parliament's scrutiny role

The Government's proposals

109. The Government's consultation paper states that "it is the proper responsibility of Parliament to hold the Government to account", but that "the production of statistics is an executive function", as "statistics are a public good".[147] The Government therefore proposes "to reinforce with legislation the existing independence of the National Statistics system, rather than make statistical production a part of Parliament".[148] We agree with the Government that the production of statistics is an executive function, and we are content that Parliament's role should be limited to that of scrutiny in respect of the new independent statistics office.

110. The Government's proposes that the new independent statistics office should have "full and direct accountability to Parliament … in the same way as other independent institutions, such as the Bank of England, the Financial Services Authority and the competition regulators".[149] The Government has identified three mechanisms by which Parliament already performs a scrutiny function in relation to statistics: the select committee system; the laying of reports; and Parliamentary Questions. The Government's consultation paper invites Parliament "to consider how it can use these mechanisms to reinforce its role in scrutinising the performance of the reformed statistical system and in holding the new board to account".[150]

111. The Bank of England, the Financial Services Authority (FSA) and the competition regulators are accountable to Parliament in broadly similar ways. Both the Bank of England and the FSA must present a report to HM Treasury on the achievement of their statutory objectives each year; this report is subsequently laid before Parliament by a minister. Parliamentary Questions relating to the Bank of England or the FSA are directed towards, and answered by, the Chancellor of the Exchequer. This Committee regularly calls members of both bodies to give evidence on their performance.[151] The various competition regulators (for example, Ofcom and Ofgem) report to Parliament via the ministers and select committees most closely associated with their fields.[152]

Select committee scrutiny

112. The Government's consultation paper recognises that it will be for Parliament to decide how best to employ the select committee process to scrutinise the proposed statistical framework and to hold the board, in particular, to account. Under the current system, this Committee has the lead role in the House of Commons in holding the ONS to account, and the Economic Affairs Committee has the lead role in the House of Lords, although all Parliamentary committees can invite whomever they choose to give evidence. Under the proposals set out in the consultation paper, the Government anticipates that Parliament:

would regularly call the Chair [of the board] and the Chief Statistician before them, and possibly other board members, in the same way as for the Financial Services Authority and the Bank of England's Monetary Policy Committee.[153]

113. Lord Moser told us that he was "quite concerned" about how Parliament would deal with the new non-ministerial department. He argued that the statistical system covered more than just economic statistics and that therefore select committees other than the "purely economic committees in the Commons and Lords" would need to be involved.[154] He told us that he also hoped some way would be found "for the Lords to be involved in this whole process".[155]

114. The Director of Registration and Corporate Services at the ONS suggested to us that a separate statistics select committee could be established to hold the independent statistics office to account:

I think there is another option that one might have a separate statistics committee devoted entirely to this, but I think this is a matter for Parliament and, as the proposals develop, we would hope you would provide some guidance on that.[156]

OUR CONCLUSIONS

115. We expect that the House will consider what form select committee scrutiny of the new independent statistics office should take at an early stage of the legislative process. Provided that Treasury ministers continue to have residual responsibility for the new independent statistics office, we would expect that this Committee would continue to take the lead role, on behalf of the House of Commons, in calling members of the board and the National Statistician before it to answer questions relating to the performance of the office, its funding and appointments to the board.

Laying reports before Parliament

116. The Government's consultation paper states that "the publication of reports by the board on its activities and outputs will be the foundation for effective public and Parliamentary scrutiny".[157] In the current system, the ONS and the Statistics Commission produce annual reports which are laid before Parliament by Treasury ministers. The Government's consultation paper proposes that the new independent board would be required to publish an annual report, which "would be laid before Parliament directly by the board, rather than via a minister".[158] The Minister told us that ministers could be taken out of the "reporting and accounting process" in "a number of ways":

in many ways it is for Parliament itself, including a leading view from this Committee, [to decide] how Parliament wants to develop its own scrutiny and reporting requirements of the new system.[159]

117. In practice, all papers laid before the House of Commons must be laid by a Member or, in a few agreed cases, by the Clerk of the House.[160] The Government itself has previously recognised the constraints on a body in reporting directly to Parliament. The then Minister for Young People, Children and Families, Rt Hon Margaret Hodge MP, told the Joint Committee on Human Rights in June 2004 that "the way in which what is in effect a non-departmental public body reports to Parliament is traditionally through the Secretary of State who has a responsibility for the NDPB".[161] She said that her understanding of the conventions was that, if a report were to be considered by Parliament, it had to be considered "through the vehicle of Secretary of State".[162]

118. The Clerk of the House told us that "relatively few" categories of papers had been laid by him in the past:

They have included the reports of the Comptroller and Auditor General (the National Audit Office) and of the Parliamentary Commissioner for Administration (the Ombudsman), both of whom are officers of the House; certain papers generated within the House (such as the Sessional Returns), and Church Measures.[163]

The Clerk told us that more recently he had agreed to also "lay reports from certain health bodies where the Act required that they be laid before being provided by the Secretary of State".[164] He said that he had also recently agreed to lay reports from the Information Commissioner "in the light of the independent status of his office", and he told us that "in principle" he would be willing to lay reports from the new independent statistics office, "provided that it was established with an equivalent independence from Government".[165] In this context, he noted that under the Government's proposals, "a large proportion of statistics [would] continue to be produced in government departments and agencies rather than in [the] ONS itself" and that "the annual reports of other Non-Ministerial Departments are laid by government Ministers".[166] The Clerk said that, before making a firm commitment, he would "obviously" want to take account of our conclusions on the independence of the statistics office as proposed by the Government.[167]

OUR CONCLUSIONS

119. The Government proposes that the new independent board's annual report "would be laid before Parliament directly by the board, rather than via a Minister". It is not clear what the Government has in mind with this proposal. In practice, all papers laid before the House of Commons must be laid by a Member or, in a few agreed cases, by the Clerk of the House. We can therefore only assume the Government is suggesting that it would be for the Clerk of the House to lay the board's annual report before the House. It is, of course, for the Clerk himself to decide whether it would be appropriate for him to agree to lay the board's annual report. However, it seems to us that it would be more in line with current practice if the new board's annual report was laid by ministers from the department which assumes the residual responsibilities of Government in relation to the new independent statistics office. This appears to be current practice in respect of other non-ministerial departments and does not appear to compromise their independence. Consequently, we consider that the new board's annual report should be laid by a Treasury minister.

Parliamentary Questions

120. Under existing arrangements, the National Statistician answers Parliamentary Questions by letter. These letters are formally presented to the House of Commons and the House of Lords by a Treasury minister and printed in Hansard. The Government's consultation paper states:

These arrangements could remain in place in future, or formally presenting such statistical answers to each House could be done via the Chairs of the committees responsible for statistical matters. Treasury ministers would, of course, retain responsibility for answering questions specifically related to the Government's statistics policy.[168]

121. The Minister explained that this suggestion was somewhat exploratory:

that is an idea we are floating in the consultation document to see, in particular, whether there is a parliamentary appetite for altering arrangements as they have always taken place.[169]

He said that the idea behind the proposal was again to "emphasise" that the Government was "looking to take the practice and the perception of ministers being involved in an accounting process out of the frame".[170]

122. The Clerk of the House told us that the answering of Parliamentary Questions by the Chairs of the committees responsible for statistical matters would "raise some practical problems."[171] First, a judgement would have to be made as to whether the answer to a Question would fall "partly or entirely within the responsibility of the National Statistician":

If Questions continue to be addressed to ministers, then ministers make that judgement, answering Questions to the extent that they are responsible, and referring the remainder to the National Statistician. If, on the other hand, Questions were to be tabled to Chairmen of Committees, any part of the answer which was thought to be outside the responsibilities of the National Statistician could not be given in this way, but would have to be sought by a further Question to the responsible minister.[172]

Secondly, he considered that the role suggested in the consultation paper would place select committee Chairmen in an "equivocal position":

Although a fully independent ONS would not be a ministerial creature, it would be very odd to have representatives of a Select Committee system, whose purpose includes the scrutiny of such bodies, taking responsibility in the House for information supplied by the ONS. Some, perhaps most, Chairmen might be reluctant to be put in such a position.[173]

The Clerk suggested that it was "easy to imagine a situation where the reference of a Question to the National Statistician for reply might be politically contentious".[174] He referred to the example of a Member believing that the responsibility for answering a Question lay with ministers and therefore feeling that passing the responsibility to the National Statistician was tantamount to avoiding an answer.[175] The Clerk concluded that overall, the alternative answering route suggested in the consultation paper would "at the least be cumbersome", but might also have "considerable practical disadvantages":

It would seem preferable to keep the present arrangements in place. Using the convenience of a ministerial [Parliamentary Question] to get information from the statistics office into the public domain would not in itself call into question the independence of the office; and a reply formula might be devised which made that clear.[176]

OUR CONCLUSIONS

123. We agree with the evidence submitted by the Clerk of the House on the proposed arrangements for dealing with Parliamentary Questions which fall within the responsibility of the new independent statistics office. There is no precedent for Committee chairmen to be conduits for answers from outside bodies as the Government proposes, and we are concerned that any such move would conflict with their interest in scrutinising such bodies. Members might experience difficulty in directing questions if answers were to be presented by the "Chairs of the committees responsible for statistical matters": in the House of Commons it is not entirely clear which committee best matches that description, while in the House of Lords there is no Committee with responsibility for statistical matters. We therefore recommend that the existing arrangements remain in place, with Parliamentary Questions being directed to the National Statistician via the relevant minister, who will assess the extent to which he or she is responsible for answering before referring the remainder to the National Statistician and, subsequently, presenting the answer to the House of Commons and the House of Lords and arranging for it to be printed in Hansard.

1  


147   Independence for statistics: A consultation document, para 4.9 Back

148   Ibid. Back

149   Independence for statistics: A consultation document, para 4.38 Back

150   Ibid. Back

151   Financial Services and Markets Act 2000, Schedule 1; Financial Services Authority website, http://www.fsa.gov.uk/Pages/About/Who/Accountability/Parliament/index.shtml; Oral evidence given to Treasury Committee by Sir Callum McCarthy, Chairman and Mr john Tiner, Chief Executive Financial Services Authority, HC 655-I, 8 November 2005; Bank of England Act 1998, Section 4 Back

152   In the case of Ofcom and Ofgem, Department of Trade and Industry ministers report to Parliament on these bodies, and the Trade and Industry Committee scrutinises them on behalf of the House of Commons. See Box 6 for details of the Ofsted model. Back

153   Independence for statistics: A consultation document, para 4.39 Back

154   Q 227 Back

155   Q 229 Back

156   Q 196 Back

157   Independence for statistics: A consultation document, para 4.40 Back

158   Ibid. Back

159   Qq 252-253 Back

160   Erskine May's Treatise on the Law, Privileges, Proceedings and Usage of Parliament, 23rd edition, 2004, p 262 Back

161   Oral evidence taken before the Joint Committee on Human Rights on 23 June 2004, HL (2003-04)161/HC (2003-04) 537, Q 104 Back

162   Oral evidence taken before the Joint Committee on Human Rights on 23 June 2004, HL (2003-04)161/HC (2003-04) 537, Q 105 Back

163   Ev 55 Back

164   Ibid. Back

165   Ibid. Back

166   Ibid. Back

167   Ibid. Back

168   Independence for statistics: A consultation document, para 4.41 Back

169   Q 254 Back

170   Ibid. Back

171   Ev 57 Back

172   Ibid. Back

173   Ibid. Back

174   Ibid. Back

175   Ibid. Back

176   Ibid. Back


 
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