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Clause 4

Designation: supplementary
Damian Green: I beg to move amendment 5, in clause 4, page 4, line 29, at end insert—
‘(3A) Any designation made under section 3 must be approved by a resolution of both Houses of Parliament.’.
This is a short amendment. I will not weary the Committee by repeating the speech that I made earlier about the importance of parliamentary scrutiny, but in essence the same argument applies, and I seek to probe the Minister’s attitude. As hon. Members will see, this is the designation clause. It deals with the different facts that allow a designation to be made, the limits that are put on it, the fact that it can be permanent or for a specified period, and the functions that can be conferred through a designation.
The key point is that the
“power to designate, or to withdraw or vary a designation”—
in other words, all the powers associated with the clause—
“is exercised by the Secretary of State giving notice to the official in question.”
In essence, the Secretary of State is given powers to do all the things that Secretaries of State do in such cases.
In the amendment, we are once again seeking a precautionary measure. I hope, and indeed expect, that the provisions would almost never need to be exercised, but our proposals would provide a further small check so that any action proposed under the wide powers that the clause gives the Secretary of State could be undertaken only with the Parliament’s approval.
I put that in the context of the relatively broad nature of the Government’s plans in this area. We are beginning to tease out some of the details. The Bill gives the Secretary of State very broad powers, and it is not immediately apparent—certainly not from the Bill—how they will be exercised in practice and in detail. The amendment would simply give Parliament some say and some check on how those powers are worked out and how they will operate in practice.
If the current or any future Secretary of State exercises the powers of designation in a reasonable and sensible way, the power in the amendment need never be brought into practical use. However, it would be useful to have it, and it would, once again, increase Parliament’s ability to scrutinise the effects of the Bill.
Mr. Woolas: As the Committee might expect, I ask it to resist the amendment. Again, I appreciate the hon. Gentleman’s intent. I study Opposition amendments to Bills carefully, and this one falls into the category of “can’t think of anything to say, so we’ll get Parliament to approve it.”
The fact of the matter is that the designation power under the clause allows the Secretary of State—but, in practice, the management of the UK Border Agency—to designate officials. It is intended to provide flexibility in the designation of general customs officials. Again, we are not talking about revenue powers. In practice, not all our officials will need all the powers of an HMRC officer. Some will be employed on functions that will not require them to have a full set of powers; for example, officials responsible for the customs clearance of international post and parcels would not require the powers of questioning and/or of searching passengers, for obvious reasons.
Damian Green: I am grateful to the Minister for his explanation, although he is being dangerously provocative when he suggests that we tabled the amendment because we could not think of anything else. If he is challenging me to find amendments on clauses for which we have not yet found amendments, he can rest assured that we can be extremely fertile in that field if necessary. As ever, Sir Nicholas, you can be reassured that I seek only to improve the legislation. There are clauses that are improved by amending and clauses on which we are happy to have a clause stand part debate.
I take the Minister’s point that there are things that the Executive should do and things that the legislature should do. Nevertheless, it is worth making the general point that the balance between the Executive and the legislature is out of joint and, in a sense, it is relatively easy for people to make the statement that we need grand schemes of reform to change it, but often it is the use of the process that does not work. It is in the detailed scrutiny of Bills that the legislature can make some difference, but we seek to do so not often enough, and that is part of the problem. I appreciate that I am now treading towards the tram lines of what is acceptable, so I beg to ask leave to withdraw the amendment.
Amendment, by leave, withdrawn.
Clause 4 ordered to stand part of the Bill.

Clause 5

Directions by the Secretary of State
Amendment made: 21, in clause 5, page 4, line 41, leave out from ‘of’ to end of line 41 and insert ‘general customs functions.’.—(Mr. Woolas.)
This amendment is consequent on amendment 19.
Clause 5, as amended, ordered to stand part of the Bill.

Clause 6

The Director of Border Revenue
Damian Green: I beg to move amendment 6, in clause 6, page 5, line 3, leave out ‘must’ and insert ‘may’.
The clause deals with the new post of director of border revenue. On the surface, the purpose of the amendment is to give Ministers a flexibility that they may not want, but we also want to tease out the full powers of that new post and the practicalities behind it.
We made some progress in the Lords, where there was a full debate about the new post, which is clearly hugely important. It is designated by the Secretary of State to exercise the functions of border revenue and also to carry out the general customs functions—I take the point the Minister made earlier about how important it is to distinguish the two. Clearly, the director will be the most important person in the whole new regime that this part of the Bill sets up, apart from the Secretary of State himself.
One of the questions I hope the Minister will address is whether it is necessary or contingent that the director of border revenue should always be the head of UKBA, because one of the things that was illuminated in the Lords debate was that that was the intention, and that Lin Homer would be appointed to the post. But it was left unclear as to whether that was a simple convenience at the time, and that she would add that extra role to her accounting officer role in UKBA, or whether it was always envisaged that they would be the same person.
I draw the Minister’s attention to that apparently procedural point because it seems to me to be quite important, because the fluidity of the organisational structure of our immigration system has been extraordinary over the past few years and there may be no reason to believe it will be less so in the future. In the three and a half years I have been my party’s immigration spokesman, we have moved from the Immigration and Nationality Directorate to the Border and Immigration Agency to the shadow UKBA, and now, from this April, to UKBA. That is four different structures in less than four years. The structure for immigration changes as often as the Home Secretary does; I am now shadowing my fourth Home Secretary as well, although—I am happy to report from the Minister’s point of view—only my third immigration Minister. The job of immigration Minister is very slightly safer than that of Home Secretary.
Behind all that flux is the reason why I asked the question. It is a serious question as to whether it is necessary that the head of UKBA will always be the director of border revenue, because the post of the head of UKBA might itself change radically in future. In particular, if and when we have a fully integrated border police, one can imagine that there will be consequential effects on the organisation within UKBA which might mean that the two posts need not be coterminous.
Tom Brake: If there are to be two different people, it would be useful for the taxpayer to know what the financial implications are.
Damian Green: Indeed. That is one of the questions I am hoping that the Minister can address, because if we are, in effect, creating a post that, in the end, becomes a dignified part of the constitution, whether we have a separate person doing it at some vast expense is a very interesting question.
In the debate in the other place, Lord West said that the Government wanted to ensure that there was a clear, single and unified command structure—something suitably military for Lord West.
Mr. Woolas: That is what it says here too.
Damian Green: I am glad to hear that the Government are consistent and will say the same thing in this debate as they said several weeks ago in another place. But, in all seriousness, if that is what the Government are looking for—who could disagree with that as an aim?—it is important to know which functions of the director of border revenue may be different from those of the director of UKBA. The two posts can be brought together under Lin Homer, which seems appropriate, but I am not just staring into a crystal ball when I say that the functions change. I have observed them changing considerably, in the relatively recent past. If, in particular, we move towards a unified border police force, it is easy to imagine that those functions will change quite radically in the future as well. Therefore, before we set up the post, the Committee deserves quite a lot more detail and clarity about what it is meant to achieve.
12.15 pm
Essentially the question is whether the post is just a name. Is it required because there is a need for a director of revenue and an accounting officer, and someone formally responsible for all the money? Alternatively, is it envisaged as a new post, with new powers and new functions? I would not expect those to be set out in the Bill, but it would be useful for the House to know whether the post is essentially a sinecure that comes along with other jobs that people do, or a real job in its own right—or could the Minister envisage circumstances in which the former might become the latter in the future? Before we pass the clause it is important to tease out some of the details, and I hope that the Minister can do that.
Tom Brake: I support many of the points that have been made about seeking greater clarification of what the director’s responsibilities will be; whether there is simply a requirement that someone should be called the director; whether it could potentially be a different person, and the financial implications of that; and whether the role is of such scale and significance as to imply the need to advertise the position of director, rather than simply passing the responsibility on to Lin Homer, as has been suggested. Any clarification that the Minister can give will be gratefully received.
Mr. Woolas: I am grateful for the perfectly reasonable points that hon. Members have made. My approach was to give the Committee assurances that the position was required to maintain the principle that the powers were not with the Minister. I had not covered the point from the other end of the telescope, by dealing with the arrangements inside UKBA.
The United Kingdom Government receive about £22 billion from tax revenue collected at the border each year. That figure is rising, even in the current economic circumstances. It represents about 5 per cent. of the total tax take of the UK Border Agency. That is why the immigration Minister is also a Treasury Minister. The public may be interested to learn that included within that £22 billion about £2 billion is collected on behalf of the European Union. Thus we are dealing with significant sums of money. Clause 6 is intended to maintain the important principle that the director of revenue is not a Minister. This is a question of customs revenue functions. Those functions are currently undertaken by the commissioners of Her Majesty’s Revenue and Customs, so we are transferring them to the new director.
It is our policy and intention to appoint the chief executive of UKBA as the director of border revenue. That position is a civil service position and therefore maintains the separation. The Bill does not designate that the director must be the chief executive of the United Kingdom Border Agency. It says in my briefing notes that that is partly because that structure may not be permanent, to answer the point made by the hon. Member for Ashford, who, I am surprised to note, objects to evolution rather than radical reform as a principle. His police proposals would cause further radical reform. However, that designation is not in the Bill for the very reason that he highlighted. We would not want to have to come back in several years to change it.
In practice, a new job is not required—it is not an additional position, but a legal power and responsibility that the chief executive should have, the terms and conditions for whom are a matter for the permanent secretary and not for Ministers, in line with those principles, although I am not aware of any proposals to change.
The amendment is successful in teasing out such points, but I suspect that the hon. Gentleman does not want it passed, because that would allow the Home Secretary to become the director of border revenue, which I promise that the hon. Gentleman does not want. I do not know whether my new boss wants that—I have not talked to him about it—but I suspect that he would not, being the decent bloke that he is. I ask Hansard not to put that last phrase in, please, in case he reads it. My right hon. Friend the new Home Secretary does not want those powers. I ask for the amendment to be withdrawn.
Damian Green: I am happy to assure the Minister that I am neither against evolution nor, when necessary, radical reform. An incoming Conservative Government would happily introduce radical reform in areas where it is needed. We have always done so and will continue to do so. Our borders are one area where we believe that radical reform is needed, because there have been many failures over the past few years.
I take the Minister’s point and can see the sense of it. We do not want to have the director of border revenue receiving all that money, on behalf of the UK Government and of the EU as well—it should be the Home Secretary; he is right. I did not know why he was afraid of having that on the record if the Minister regards the Home Secretary as a decent bloke—
 
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