Select Committee on Public Accounts Minutes of Evidence


Examination of Witnesses (Quesitons 120-139)

DEPARTMENT FOR CULTURE, MEDIA AND SPORT, SPORT ENGLAND, ENGLISH HERITAGE, ARTS COUNCIL AND BIG LOTTERY FUND

MONDAY 2 JUNE 2008

  Q120  Mr Dunne: I am going to pursue this a little further if I may because I have had a little bit of involvement in this industry myself, having set up a bookshop business. Just to correct the Chairman, which I hesitate to do, it is not 50,000 new titles published every year; it is 190,000 new titles published every year. I happened yesterday to be at the Hay Book Festival where 140,000 people visited over the 10 days of the festival and I would think virtually every single one of them, if they were aware that there was a potential government handout to start their literary endeavour, would be coming to your door, Mr Davey, and I think the publicity given to this hearing will undoubtedly mean that the number of applications from potential novelists will soar, but I find it peculiar to think that your regional experts can substitute for the role played by the literary agents up and down the country who make a commercial living out of doing what your experts are able to do to a minor degree. I am absolutely perplexed that there is public money being given in this way.

  Mr Davey: What we do is give the would-be writer the possibility of undertaking the writing. They may be from backgrounds where they cannot afford to take the time off to be able to undertake the work required. What we do not do is second-guess the commercial publishing sector who make the final decision on whether anything is published or not.

  Q121  Mr Dunne: I should not really delve too deeply into literary endeavour and what makes a good author and what does not make a good author, but a very large proportion of the most successful authors sold at the moment in this country come from relatively deprived backgrounds. It happens to be a genre which has been very successful and I think it is hard to argue that you are providing a social service that is not being provided by the commercial sector in terms of allowing people to come forward and start writing. People write books because they are determined and dedicated to do it and that is the best discipline and generally speaking around the history of novel writing that is what has created the best books. I have got that off my chest, Chairman, and now I would like to return to the slightly bigger picture and, Mr Holgate, ask you if I may, in your role at the DCMS what oversight do you have of these multiple grant distributors here in terms of setting priorities or monitoring what they are doing or trying to encourage them to share best practice, which is perhaps the thing that comes out most strongly in the NAO report, that there has not been enough of that going on?

  Mr Holgate: Could I distinguish between Exchequer funded bodies and lottery funded bodies? You have a perfect portfolio here. You have two that are both, one that is pure lottery and one that is pure exchequer, and we do treat them slightly differently. In the case of Exchequer funded bodies we set objectives, conditioned by the three-year spending review. We set efficiency targets. Indeed, the department was engaged in this business even before Sir Peter Gershon took an interest and, we believe that we have met the gains for the 2005-08 period and we believe we will make the gains expected of us over the 2008-11 period. Where Exchequer bodies are concerned we are about the downward pressure and the greater value for money looking across any one NDPB. Very rarely do we, within the business of the non-departmental public bodies, pick something out and say, "That is particularly in need of reform", or whatever. There are examples but we try to make them as rare as possible because the whole benefit of an NDPB is that you are employing experts like Simon Thurley to run the organisation which delivers church repairs and no civil servant is able to second-guess him. On lottery funded bodies we place more weight on the chairs and trustees of those bodies who are appointed by ministers, I think, in most or all cases (with some exceptions perhaps) and who are in a sense the representatives of the would-be applicant and are very keen, not least because they will be lobbied the whole time by people with very good ideas, to see that the highest proportion of the money of the lottery body will go on the grant and the least amount will go on the administration of the grant. There are other conditions that apply to both, but on the lottery you also have financial directions which the department issues which the bodies are obliged to meet. For both sets there are accounts directions and a statement of internal control.

  Q122  Mr Dunne: Do you have directions on any particular criteria applying to grant-making bodies, such as, for example, geographic distribution or distribution to particular social groups?[5]

  Mr Holgate: I believe that there will be directions for the lottery bodies that impinge on both those points. A good example might be that the Big Lottery Fund now has committees for Scotland, Wales and Northern Ireland.

  Q123  Mr Dunne: I think individual grant-making bodies have it. My question is whether the department is issuing directives to the boards of these grant-making bodies to do something in a particular way.

  Mr Holgate: It will be clear to them that they are incumbent upon spending their grant as equitably as possible across the country and, at the risk of taking the novelist example again, if there is someone who is from a background that would not naturally lead them towards making a successful application when the intrinsic case may be very strong, we will always be wanting to try and attract that marginal application.

  Q124  Mr Dunne: But, Mr Holgate, you have not got a written directive to Mr Davey that he must produce X number of novelists from a Y type of social background and Z geography?

  Mr Holgate: No, but the bodies do incur costs in trying to spread the possibility of successful application both geographically and to groups from different backgrounds or different traditions who may not think to look to the state or the lottery for help.

  Q125  Mr Dunne: One of the reasons why I am probing on this is that we have not got anybody here from the UK Film Council but I have had representations from bodies that are currently funded by the UK Film Council. One such organisation is called Flicks in the Sticks. It provides rural displays of films in village halls and on the Welsh Marches, including near my constituency, and they are very concerned because at the moment there is a significant amount of investment being made by the UK Film Council in providing digital installations, which is a good thing, but 100% of that is going into urban areas and the question for me, representing a rural area, is, where did that direction come from? Why are they not giving a proportion of that funding to provide digital access to rural cinemas?

  Mr Holgate: I think it is extremely unlikely that we would direct the UK Film Council as to where geographically it should put its investment other than the general presumption of trying to reach parts of the country which would not normally be reached.

  Q126  Mr Dunne: In this particular case they are very definitely not reaching the parts of the country that in my view deserve to be reached. Perhaps you could have a look at that for me and send a note about it if you do establish that there is anything the department has said along those lines.[6]

  Mr Holgate: Certainly.

  Q127  Mr Dunne: Thank you. Mr Wanless, you have been praised by Mr Holgate and others in your responses to other members of the Committee about the outreach that the Big Lottery Fund undertakes and I am aware of that, having participated in both meetings with MPs. I think I am hosting one for you next week for West Midlands MPs, but I have also had the benefit of your West Midlands team coming to my constituency to explain the various schemes that are available for applicants. I applaud you for doing that and I think that perhaps goes further than any other grant-making bodies in doing that. That may be because many of your grants are for small individuals but it sounds to me as though if Mr Davey were to start having similar events he would be absolutely swamped by artists of every description looking for some kind of grant. The question I have for you is that the success in certain local authority areas seems to be predicated on that local authority having an individual who helps the voluntary sector with grant applications, and in those local authorities that do not engage someone to do that the uptake is somewhat lower. Does this reflect a deliberate policy on your part to seek to outsource this accessibility and information sharing and if you were to take this on yourselves would you not have greater success and a more even distribution?

  Mr Wanless: There is a limit, I guess, to how much of this outreach we can take onto ourselves because of a desire to control the amount of lottery money we spend on ourselves rather than on the money going directly to the good causes, and this is why there are these kinds of classic dilemmas where efficiency comes up against effectiveness. We have taken a decision to have a very fundamental restructuring and concentration of our grant-making activities in two income centres and have small regional outreach offices with eight people in each, and the West Midlands is one, and that has saved us £3.5 million a year. As to whether we should add a little bit of that back in for a bit more outreach of our own, I do not know. As has already been indicated, we are under considerable pressure to keep our running costs down as low as we can, so at the moment I would say our first strategy is to try and map out and engage and involve a pattern of helpers for potential applicants across the country and to seek those out and encourage local authorities that have not got them to think about it because of the benefit it would have for their area, to encourage the sectoral organisations or whatever. That is where we are at the moment.

  Q128  Mr Dunne: I have a final question, Chairman, if I may, to Dr Thurley. In response to a couple of Committee members you touched on the Religious Buildings Programme and I applaud you for doing this because I think you are an absolutely vital source of repair for many of our communities. I have two concerns about it. One is, and particularly in light of the much publicised increase in the value of lead and the number of church roofs that are stripped of recently renovated lead, what happens to an applicant who has recently had their roof repaired by you and they then lose the lead to theft? What is their scope for getting it repaired again, using your funding?

  Dr Thurley: I would very much hope that the church would be insured with the ecclesiastic insurers. The insurers would be responsible for paying out for that, but the thing that we are really interested in is trying in some way to stop this haemorrhage of lead off church roofs. There is a clever device that you can paint onto church roofs which we have been promoting to try and reduce that loss but it is a serious problem and churches are going to their insurance to cover it.

  Q129  Mr Dunne: Can I suggest that every time you provide funding to such a church you make it a requirement that they paint it with this equipment and, secondly, publicise the fact that the roof is protected and make that a condition of their application because it might help stem the theft? The other part of my question is, where you are investing significant public funds into buildings which in many cases may be on the verge of becoming redundant but for good architectural reasons you are protecting them, do you have some kind of fallback mechanism that if public money has gone into a church that subsequently, within a reasonable period, becomes redundant that money does not then goes into the coffers of the Church of England or similar bodies?

  Dr Thurley: Redundancy is still quite rare, it has to be said. The best churches, which are likely to be the ones that we have funded, are very likely to go the Churches Conservation Trust, which is a body which is funded by the state for looking after redundant churches. All our grant schemes have provision for clawback if for some reason someone is being seen to make some sort of profit out of it but I should say that in the Places of Worship scheme that we are talking about it is very rare. I am not sure that there is even a record of that happening.

  Q130  Chairman: I am very interested in your work, Dr Thurley, on keeping churches open and I think what you do is excellent. I do not think you do it enough. When I was visiting Stow church, which you might be familiar with, in my constituency, they had a problem with lead being stolen, but I am interested by your answer about keeping churches open. It infuriates me that so many churches are still locked. You just mentioned ecclesiastical insurance. They have made it absolutely clear in the past that they want these churches to remain open and I would have thought that if you are giving public money, given especially that many people do not necessarily go so much now to formal services on a Sunday but they like to visit these churches during the week, particularly in rural areas, you should be much more insistent in the use of your money to keep these churches open, and if the excuse is that they have valuable objects such as silver candlesticks, they would be locked away and wooden ones put there. I just do not buy this argument that these churches need to be kept locked.

  Dr Thurley: Chairman, I absolutely agree with you and we do use our money for that purpose. We have very strict criteria of not giving our grant money unless churches are able to keep them open. The current number of days is 28 and we are going to increase it this year to 40 days.

  Q131  Chairman: It is not good enough just to say, as I so often see, "If you want a key go down the lane to Mrs Bloggs". It is not good enough. People want to have the church open.

  Dr Thurley: You are quite right. We did a survey last year with the Church of England which revealed that an astonishing 89% of the population last year went into a church, not necessarily for the purposes of worship but they just went in because they really enjoyed it, and the majority of those churches are churches that are left open.

  Q132  Chairman: But why did you say earlier, I think to Mr Bacon, that they are sometimes resistant? Why should they be resistant?

  Dr Thurley: I think there is anxiety about theft and vandalism, particularly in urban churches. You find that in rural areas churches are very often left open. In urban areas it is much harder because the likelihood of ne'er-do-wells coming in is higher. The insurance situation I think is one of the keys to this because the insurers are now offering, extraordinarily, insurance discounts for churches to be left open because a church that is left open is far less attractive for someone to break into than a church that is kept locked.

  Q133  Chairman: I am also interested in the work you do for cathedrals. How much do you give to the cathedrals of England a year?

  Dr Thurley: Perhaps I can preface the answer to that question with a remark which is that in 1991 we did a survey of the English cathedrals to work out how much work needed to be done to them to get them into good condition. It revealed that there was a significant amount of work to be done and between 1991 and 2001 we spent very nearly £50 million on the English cathedrals and we conducted a second survey in 2001 that revealed that the vast majority of the very significant backlog of repairs to English cathedrals was completed.[7]

  Q134 Chairman: So this is a long preamble to explain why you have cut their grant, is it not?

  Dr Thurley: It is one of the two explanations of why we now give less money.

  Q135  Chairman: Is it not about £3 million a year you give?

  Dr Thurley: At the moment, yes, it is in that region.[8]

  Q136 Chairman: I find this staggering. As a nation we spend £650 billion of public money. This is the greatest architectural resource we have in this country and we are only prepared to spend the staggeringly small sum of £3 million from the public purse to maintain what is our greatest historical legacy. Do you not find that extraordinary? Why do you not take this opportunity to criticise your paymasters, the Treasury, and ask for more money?

  Dr Thurley: English Heritage has not received an inflationary increase to its grant since 1997. We have had to be very clear about what we are prioritising in terms of spending. After the 10 years of expense on cathedrals we decided that the priority had to be parish churches because cathedrals are much more able to raise money than a remote parish church like Stow, although that particular one attracted a great deal of attention, but the average parish church finds it much harder than Lincoln Cathedral to raise a lot of money. Therefore, given the fact that we had significantly less money to give away, we decided to prioritise parish churches over cathedrals and, of course, I agree with you that it would be good to continue our Cathedrals Funding Scheme at the sort of level that we did during the 1990s but the simple fact is that we had to take a decision on priorities in relation to how much money we had.

  Q137  Chairman: And when you have got to save money why get involved in the scheme in Salisbury Cathedral, for example, which caused a lot of upset over lighting? I am on the Cathedral Council of Lincoln and this went round the cathedral community in this country that you were getting involved in a very proactive way which was quite unnecessary?

  Dr Thurley: If I may correct you, Chairman, it was not the lighting that there was a dispute over. It was a dispute over the replacement of the high level stonework and the parapets. We are very supportive of Salisbury's current scheme, which is illuminating the cathedral at night and which is being paid for by private donor. The reason that the Dean of Salisbury, June Osborne, was upset and there was a dispute is that we did not give her a grant and she was extremely angry about that. We did not give her a grant because we deemed that 42 other cathedrals that we did give grants to had a higher claim to the small pot of money that we had than she did.

  Q138  Mr Bacon: Mr Davey, Trollope wrote a lot of novels about the doings of English cathedrals. Are you having any novelists doing a post-modern take on cathedral internecine warfare?

  Mr Davey: Not to my knowledge.

  Q139  Mr Bacon: Thank you. Dr Thurley, you mentioned lead being stolen from roofs in answer to Mr Dunne, and I have certainly had experience of this in my own constituency and throughout Norfolk. I ask this because I used to spend, for reasons too boring to go into, a lot of time in Germany in a copper factory. I just wondered whether you had ever used pre-patinated copper or recommended it to be used because it might be cheaper and you get your patina right there, 200 years of wear, but it is new and it lasts?

  Dr Thurley: There are two issues there. There are issues of performance. There is no doubt about it, lead does perform better than any other metal roofing metal. The second issue is one of authenticity because it just does not look the same. Whilst it might be possible to make some types of substitute material in some parts of a church where performance and authenticity are not an issue, for many churches the appearance of a lead roof, which is quite often very visible, is a very important part of the whole feeling of the church. Yes, we would consider alternative materials but we would have to take those other two factors into consideration.



5   Ev 22 Back

6   Ev 22 Back

7   Note by witness: The nearly £50m we have provided to Cathedrals for repairs has been in the period from 1991-92 to date (2007-08). Back

8   Note by witness: The correct figure for grants to Cathedrals at the moment is £2m pa (currently committed for one further application round for funding for projects to take place in 2009-10), half funded by English Heritage and half by the Wolfson Foundation with whom we have a partnership on this scheme. Back


 
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