I am delighted to open the Second Reading debate on the Parliamentary Buildings (Restoration and Renewal) Bill. The Bill has been a long time coming and builds on the work of many in this House and the other place. I pay tribute to my predecessor, my noble friend Lady Stowell of Beeston, to the noble Baroness, Lady Smith of Basildon, and to the noble and learned Lord, Lord Wallace of Tankerness, the noble Lord, Lord Laming, my noble friend Lord Deighton and the noble Lord, Lord Carter of Coles, for the work they did on the Joint Committee on the Palace of Westminster, which was vital in paving the way for the Bill. I also thank my noble friends Lady Byford and Lord Brabazon of Tara, the noble Lords, Lord Blunkett and Lord Stunell, and the noble Baronesses, Lady Warwick of Undercliffe and Lady Prashar, for their work on the joint pre-legislative Select Committee that looked at the Bill. All their recommendations were carefully considered and led to a number of changes.
The Bill gives effect to the resolutions passed in Parliament last year putting in place a governance structure that will ensure that the long-term programme of R&R work can be undertaken. It establishes the statutory bodies that will be responsible for addressing the risks and dangers that currently affect this building, as well as its restoration and renewal.
Noble Lords will be well aware of the horrific fire that swept through Notre Dame only a few months ago, which served as a stark reminder of the risks to this historic and iconic building. Here, we have a team of 24 staff employed to carry out fire patrols around the clock, and we have put in place complex fire mitigation measures. Other issues that have affected the Palace in recent months include falling masonry, water leaks, floods, sewage leaks, lighting and power outages, and toilet closures. Whatever individual position Members may take on particular elements of this programme, I think your Lordships would all agree that significant maintenance work cannot be delayed any longer. We must ensure that the Palace of Westminster is restored and protected, so that it may continue to serve as the home of the UK Parliament for generations to come.
In 2012, both commissions considered the option of relocating Parliament outside the Palace of Westminster in a new purpose-built building, they but decided against such a proposal. The Joint Committee on the Palace of Westminster also considered temporarily relocating Parliament outside London during the works, but concluded that it carried an unacceptable burden of cost and inconvenience.
Obviously, a number of reports have looked into this issue, which have considered a range of issues. Today, we are putting into legislative effect the Motions that were passed by this House and the other place, which affirmed that the guarantee that both Houses would return to their historic Chambers as soon as possible should be incorporated in primary legislation. That is what we are doing as part of the Bill.
This is an important, technical Bill which facilitates the next crucial stage of the R&R programme. It consists of 15 clauses and 4 schedules. It establishes the parliamentary works sponsor body, which will have overall responsibility for the restoration and renewal of the Palace of Westminster and will act as the client on behalf of both Houses. It also provides for the formation of a delivery authority as a company limited by guarantee. The delivery authority will formulate proposals in relation to the restoration works and ensure their operational delivery. The sponsor body already exists in shadow form, and I thank those Peers who sit on its board: my noble friend Lord Deighton, the noble Lords, Lord Carter of Coles and Lord Geidt, and the noble Baroness, Lady Scott of Needham Market.
Drawing on best practice from the successful delivery of the London 2012 Olympics, the bodies will be independent and able to operate effectively in the commercial sphere, bringing the expertise and capability needed for a project of this scale.
The purpose of the Bill is to set up the bodies that will do the detailed costings of the work. I will come to the outline business case, of which obviously that will be a crucial part, towards the end of my remarks.
The Bill also provides for the relationship between Parliament and the sponsor body, including consultation with Members. This is a hugely significant and costly project, so both the Government and Parliament must ensure that it represents and delivers value for money for the taxpayer.
The Bill establishes a Parliamentary Works Estimates Commission, made up of two Members of this House and two from the other place, which will lay the sponsor body’s estimates of expenditure before the House of Commons and play a role in reviewing the sponsor body’s expenditure. It is through these annual estimates that the programme will be funded and approved by MPs. Further financial controls will be put in place, including a requirement that the estimates commission consults the Treasury on the annual estimates for the funding of the R&R programme and has regard to any subsequent advice.
The sponsor body is made up of parliamentarians representing both Houses and includes experts in running similar large-scale projects such as the Olympic Games, and, in terms of heritage, includes the former chief executive of Historic England. The delivery authority will be made up of architects, engineers and individuals with programme management, commercial and contracting experience. They will formulate the designs, costs and timings of the works, with proposals brought forward to Parliament for approval in 2021. We are confident that the arrangements being put in place will deliver the necessary restoration works and at the same time provide reassurance that taxpayers’ money will be protected.
The passage of the Bill in the other place was swift, with Second Reading passing without division and Committee completed in a single day. The Bill also passed Third Reading without a Division.
I am grateful for the ongoing consultation with Members about the decant process. Can my noble friend explain how that process will be accountable to this House?
As I said, there will be consultation during the process but, ultimately, the sponsor body needs to bring an outline business case—the final proposal with costings, details and decant options—back to both Houses. Both Houses will vote on it, and that will be the final decision. Today, we are doing important work to enable the detailed work that noble Lords are obviously incredibly interested in, but it will return to Parliament for a final vote.
To repeat myself slightly, once the sponsor body and delivery authority have been established in statute, they will design an outline business case that the sponsor body must bring back to Parliament for approval and which will set out the scope, timing, delivery method and cost of the works. Only once the outline business case has been approved will the sponsor body and delivery authority be able to commence the substantial works on the Palace.
I very much hope that noble Lords will support the Bill’s timely passage so that we can begin to undertake the vital and increasingly pressing work to ensure that the Palace of Westminster is fit to serve as the home—
This may be a question to which everybody else in the House knows the answer. Can the Minister tell us why neither the delivery authority nor the sponsor body will have a duty to have regard to heritage and preserving the fabric of the building?
I hope I made clear earlier that we have agreed that we will bring forward an amendment in this House that will look at putting heritage in the Bill. As I also mentioned, we need to balance that with making sure that any renewal and restoration of the building takes into account modernisation and things that other noble Lords are keen on—for instance, improving disability access and ensuring that it is open and available to the public who want to come. We will bring forward an amendment in this House during the passage of the Bill to achieve, I hope, that balance. On that note, I beg to move.
My Lords, it is my privilege to follow the Leader of the House and to reiterate her appreciation for the enormous work and commitment that have gone into getting to this stage of the programme, including by those who undertake the thankless task of serving on the shadow sponsor body. I was privileged to serve on the Joint Committee scrutinising the draft legislation. I went on it out of a sense of duty rather than enthusiasm, but discovered that this was not a sideline or deeply boring and irrelevant to our work, but absolutely central to the future of our democracy and the well-being of our democratic processes.
I shall just pick up on the point the noble Baroness made at the beginning on the fire at Notre-Dame. Following the fire, Antony Gormley said that it should be the beginning of the future, not the end of the past. We should think about this programme over the next 16 or 20 years as the beginning of a new future, building on the heritage of this building, retaining that heritage and ensuring the restoration of those parts of the building that are literally crumbling under us —but also seeing it as a way of demonstrating to the public during the process that we can engage, gain their consent and ensure that they believe this is part of democratic renewal, not just renewal of the pipework and the wiring, critical though that is.
William Blake talked of the “mind-forg’d manacles” that confine us in how we see things, and I hope we can set those aside. After all, we are at a time when democracy is literally fragile. We have the words of the President of the Russian Federation just a couple of weeks ago about the nature of what he saw as the crumbling of liberal democracy. I believe that what we do in spending billions of pounds of public money on the restoration of this building has to be accompanied by renewal. The stonework, pipework and wiring—the preparation of a building fit for people to work in, whether parliamentarians or staff—goes hand in hand with how people consent to the investment that makes it possible. In other words, the way we carry this out can either alienate people still further or engage them in believing that our institution—the two Houses in the Palace of Westminster—is fundamental to a functioning democracy, and that we wish to save it for the future.
My Lords, I thank the noble Baroness the Leader of the House for introducing the Bill and the noble Lord, Lord Blunkett, for such an eloquent explanation of the broader issues that the Bill relates to. On these Benches, we very much welcome and support the Bill and hope it will make speedy progress through this House. In particular, I hope it can be concluded during our September sitting, so that it will not be delayed should we find ourselves having an early general election.
The Bill is long overdue. It is ironic that it took a fire at Notre Dame to spur the Government into action. It is undoubtedly the case that, if the Palace of Westminster were not the Parliament, parliamentarians would have been stridently calling for its renewal for decades. It is also worth remembering that this very Palace was itself born out of the destruction by fire of the old palace in 1834—I hope that history will not repeat itself. As the Leader of the House has pointed out, there are, fortunately, 24-hour fire patrols in operation, and I place on record my thanks to the fire officers and other staff who work tirelessly to keep our Parliament safe, often in trying circumstances.
Thousands of people work in this building and more than 1 million people enter the Parliamentary Estate every year as visitors, constituents, tourists, to visit Select Committee meetings and for other purposes. We have a duty to protect them and to ensure that their health and safety is not compromised when they are here.
As the noble Baroness said, this Bill gives effect to the resolutions passed in both Houses last year by establishing the statutory bodies that will be responsible for the works to restore and renew the Parliamentary Estate. The sponsor body will have overall responsibility for the programme and will act as a single client on behalf of both Houses. My noble friend Lady Scott of Needham Market has already been doing sterling work as a member of the shadow sponsor body and will speak further about its future role.
My Lords, how good it is at last to have before us a really chunky Bill. I am tempted to say that it is something that one might get one’s teeth into, but that, so far as I am concerned, would give the wrong impression because this is not a Bill that needs to be torn apart but a Bill which deserves to be supported, because it is a necessary Bill. The decision that we should in principle proceed with this project was taken by both Houses almost 18 months ago, as has been pointed out. What we need to do now is to set up the machinery to put it into motion. Of course, like all machinery, it needs to be fit for purpose if it is to do its job. The question is whether it meets that standard. That, I suggest, is what we need to consider today.
The key provisions are to be found in Clauses 2 to 7. The use of a sponsor body, to represent the interests of Parliament and assume overall responsibility for the building works, and of a delivery authority to formulate proposals and provide the operational delivery of the works, is a tried and tested structure, as the noble Lord, Lord Newby, pointed out, ideally suited for major projects of this kind. It is clear that nothing can be done, other than in relation to preparatory works, until the delivery authority’s proposals have been approved by Parliament. Overall control will remain with Parliament, and it will be for the two new bodies to determine the strategy and formulate the proposals for Parliament’s approval. That is as it should be, so we need to look at the details that give effect to this plan.
I pay tribute to the work of the Joint Committee which subjected the draft Bill to pre-legislative scrutiny, which was so well described by the noble Lord, Lord Blunkett, as well as to the work of the Bill team which has put the Bill together. As to the detail, as the noble Baroness said, two of the four amendments which were passed by the other place will need to be looked at again, and there are two other matters that are worth looking at again too.
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On Report, four amendments were made to the Bill. Two amendments were supported by the Government. The first required the sponsor body, in exercising its functions, to have regard to the need to ensure that educational and other facilities are provided for people visiting the Palace of Westminster. The second provides for the automatic transfer of external members of the shadow sponsor body to the statutory body. This will bring continuity to the sponsor body, while providing an opportunity for it to evaluate its needs for its membership.
Two amendments, resisted by the Government due to deficient drafting and our view that they were not required in primary legislation, passed on Division at Report. One requires the delivery authority to have regard to companies’ policies on corporate social responsibility when allocating contracts. We accept the principle of this amendment, but it will require some minor and technical changes to make it workable.
The second places a duty on the sponsor body and the delivery authority to ensure that the economic benefits of the parliamentary building works are delivered across the UK. The Government resisted this amendment as it contravenes public procurement law: specifically, that location is not something that you can have regard to when allocating contracts. Again, we accept the principle behind the amendment, but it will be necessary to revise its wording to ensure that it does not cut across procurement law obligations.
Finally, a couple of matters were raised on Report which the Government agreed to consider further in this House. First, Members in the other place considered whether the sponsor body should have regard to the need to conserve and sustain the architectural and historical significance of the Palace of Westminster, including the outstanding universal value of the world heritage site. The Government are absolutely committed that the work undertaken will ensure that the architectural, archaeological and historical significance of the Palace of Westminster is preserved for future generations, but we have been of the view that the best way to achieve this is through existing planning processes.
We have also been mindful of including the UNESCO heritage status of the Palace of Westminster in the Bill, given that it also covers Westminster Abbey and St. Margaret’s Church. We must be careful that, as the Joint Committee that undertook pre-legislative scrutiny said, explicit provision which aims to protect the heritage of the Palace does not,
“override opportunities to renew and enhance its purpose”.
The Government will therefore bring forward an amendment that strikes a balance between the preservation and protection of the Palace’s heritage, while delivering the renovations and accessibility modifications that we all want to improve the functionality of the Palace.
Secondly, there was considerable interest in the other place for the sponsor body to publish an annual audit of companies awarded contracts to establish their size and geographical location. The Government are keen for the benefits of the parliamentary building works to be shared across the UK, particularly among SMEs. Under the provisions of the Bill, the sponsor body already has to prepare and publish a report at least once a year on the parliamentary building works and the progress that has been made towards their completion. We will bring an amendment to place a further requirement on the reporting of contracts on the sponsor body. Throughout the passage of the Bill, the Government have sought to work collaboratively with parliamentarians to ensure both that the right arrangements are in place to deliver the restoration and renewal of the Palace and that these reflect the will of Parliament. I look forward to continuing in that spirit with noble Lords.
Before I conclude, I will turn briefly to the issue of this House’s temporary decant during the restoration and renewal of the Palace, which I know is of great interest to noble Lords. As I stated earlier, the Motion passed by this House in early 2018 was clear that, as part of R&R, we would temporarily leave the Palace so that the works could be done more quickly and in a cost-effective way. As noble Lords will know, the Bill is concerned not with the details of your Lordships’ accommodation during the period of refurbishment of the Palace but with the governance arrangements required for the successful delivery of the R&R programme. The sponsor body established on a statutory footing by the Bill will be responsible for delivering the decant accommodation for the House of Lords, in line with your Lordships’ requirements. It will be for the sponsor body, as part of the outline business case that it expects to present to Parliament in 2021, to set out the detailed, costed arrangements.
I assure noble Lords that the shadow sponsor body is keen to hear from Members about the proposed decant accommodation, and this engagement has already begun in earnest. Last year’s survey was followed by individual interviews with more than 150 Members of your Lordships’ House, and a similar number from the other place, to gain more detailed views on Members’ ideas, priorities and concerns around decant; that has continued with smaller, focused discussions on particular design themes. The results of this engagement are currently being reviewed and will feed into further work as part of the programme. In addition, the chair of the shadow sponsor body has written to APPG and committee chairs in both Houses to seek their feedback on the sort of facilities that they may require in the future. Plans for the decant of the House of Lords are in their early stages and there will be ample further opportunity for Members to feed into the process—I encourage all noble Lords to do so. I understand that the R&R programme team will carry out further engagement with noble Lords in the autumn.
The Bill is critical to the next stages of development of this important parliamentary project.
When Barry and Pugin did their work, they immediately found major obstacles in the way of even the most modest renewal and improvement, which then took place over the subsequent 10, 20 and 30 years. I am grateful to one of our clerks, Philippa Tudor, for the work she has done on the history. It is instrumental in understanding how you balance the heritage with the design of democracy for the future. This picks up the last point the noble Baroness made in answering a question: if we do not get this right, we could end up with art deco toilets from the 1920s preserved at the expense of actually allowing people access.
I want to make three crucial points. I hope we can reach rapidly consensus on these because I do not wish to hold the Bill up; it is important that we get on with it and allow the shadow sponsor body to take on its full role effectively. In doing so, however, we have to set aside the notion that while Parliament is responsible, as the controlling mind, to determine what the sponsor body should do and how it should see its work—as we found out on the Joint Committee—we cannot then contradict that by saying that there can be nothing in the Bill to give not only a clear steer to the sponsor body but a signal to the world outside that we know what we are doing and are doing it on their behalf. If I might say so, the intellectual somersaults done by the noble Baroness and the former Leader of the House of the Commons in their letter, particularly in points 2.7 and 2.8, need to be gently, consensually set aside.
Three things are important here. The first, which I hope we can all agree on, is disability access. At the moment, this is phrased as being about access “to” the building and not access “within” the building. I do not often speak publicly about disability; I have tried to do what I have done over the decades quietly behind the scenes. However, those who think they are doing the right thing on behalf of people with disabilities need to consult them more closely.
The second important point is about the participation directorate: the education service, outreach and, separately, the Parliamentary Office of Science and Technology, all of which do an absolutely excellent job. Let us try to ensure that they do that job with an eye on reaching out, rather than just on people coming in; it is about not just the footfall but the future.
Finally, the renewal element that I have spoken about must understand and engage with the political process of the House, so that it reaches out and engages people in whatever way it can. I must stress that this is not about prescribing anything to the sponsor body. The mantra in the letter sent out was: “Please don’t prescribe”. I do not intend that we should prescribe but rather, to change the word slightly, that we should be in the business of promoting.
There is a real lesson from that great comedy “Yes Minister”. When I was in Cabinet, I showed a wonderful episode to Ministers and senior civil servants at an away weekend. It was about a newly built hospital that was functioning brilliantly; it was on budget, there were no industrial relations problems and everyone was happy. The only problem was that it did not have any patients. Crucially, this Bill should not only ensure that staff and parliamentarians can do their work, that the public can visit and that the heritage is retained; it should also be a symbol of democratic renewal. If we get this right, we can play just a part in ensuring that we lift the mistrust, set aside the alienation and go forward in restoring, renewing and underpinning our democracy for the future.
The Bill gives the sponsor body the power to establish a delivery authority, to make proposals in relation to the works and to ensure their operational delivery. As has been explained, this approach was used successfully for the London Olympics. I agree that this is the best structure to deliver the programme in a way that commands the confidence of parliamentarians, staff and the public and, most importantly, is accountable to them.
While the proposed structure is sensible, of itself it does not deal with all the potential scope for meddling in the work of the sponsor board by Members and staff of both Houses. It is vital to minimise this if we are to avoid the situation described so brilliantly by Caroline Shenton in her book Mr Barry’s War, where continuing delays were caused to the building of this Palace by an interminable number of Select Committees examining specific parts of the design and construction process.
So I am pleased to see that, under Clause 6, the parliamentary relationship agreement should contain provision about consultation and co-operation between the sponsor body and the corporate officers of both Houses, and that Clause 5 provides for a consultation strategy with members. Transparency and consultation will be the key to the success of this programme going forward smoothly.
I have spoken previously of my hope that the programme will be ambitious. We should not simply confine ourselves to repairing an old building. We should instead, through this project, show the vision that we have for a 21st-century Parliament that is a modern workplace, family-friendly and user-friendly. In doing so, we must ensure, as the noble Lord, Lord Blunkett, said, that huge improvements are made so that those with disabilities not only have proper access to this place but find it a congenial and easy working environment. We are all proud of the fact that Parliament has a long tradition of openness, and I hope that the programme will also develop better facilities for visitors and students who wish to see us in operation, not only from the UK but from across the globe.
If we want to ensure that Westminster is truly a Parliament for the future, then we must also consider the environmental impact of the works. I hope that, working together, Parliament, the sponsor body and the delivery authority can produce a cleaner and greener Palace.
We must also consider the wider legacy of the works, with investment in skills across the country and the importance of SMEs having a chance to work on the programme. My noble and learned friend Lord Wallace of Tankerness, to whom I pay tribute for his work on the first Joint Committee on R&R, will speak further about this. Although I accept the problems the noble Baroness referred to about specifying the need for geographic diversity in contracting, it is important that, as with the Olympics, we give opportunities to companies large and small across the country to take part in the redevelopment of this place.
While referring to spreading the benefits of the restoration and renewal across the country, I hope that during the decant process it will prove possible to loan the works of art which are currently on display in the Palace to institutions across the country. In this way, many people who would not otherwise have any chance to see any of them will have a chance to do so, and it might save on storage costs.
Returning to the content of the Bill, I was pleased that so many of the recommendations of the Joint Committee on the draft Bill were accepted by the Government. I thank my noble friend Lord Stunell for his work on that committee. Of those which were not, I do not think any were of fundamental importance. While we may want to discuss them again in Committee, I do not think that that should delay the passage of the Bill.
We must now get on and do this. The Palace is part of the UNESCO Westminster world heritage site. It is our obligation to maintain it for future generations, and with this Bill we are taking the crucial next step towards achieving that most important goal.
Before saying a word or two about one of those matters, there is one other point that is of particular interest to me as a lawyer, and that is dispute resolution. The questions I ask myself, as I read through the Bill, are whether there is a risk of a dispute between the various parties that are referred to and, if so, how any such dispute is to be resolved. That disputes will arise is inevitable. It is not that those involved are likely to be just awkward. There will be genuine differences of opinion that will need to be sorted out. We are not, of course, concerned here with disputes between the delivery authority and the contractors engaged to carry out the works. There are well-established mechanisms in the standard forms of contract which are designed to deal with those matters. What we are concerned with is the possibility of disputes between the various bodies referred to in this Bill.
So far as I can find, the word “agreement” is used in six places in the Bill. One use I can leave aside fairly quickly. It is used in Schedule 1 and deals with something that can happen only if there is an agreement. It is its use in the main body of the Bill that requires a little more thought.
Clause 1(1) deal with something that affects the relationship between the House commissions and the two new bodies. It provides that works can only be designated for the purposes of the definition of “the Parliamentary building works” by the House commissions if they have the agreement of the sponsor body and the delivery authority. This is a case where something can only happen unless and until there is agreement, first, between the House commissions themselves and then, if they are agreed, between them and the new bodies. However, the Bill says nothing about what is to happen if they cannot all agree.
Clause 4 addresses the question of what is to happen if the two new bodies cannot agree on a relevant matter when they formulate the programme delivery agreement or when they consider whether it should be varied. The way that any such disagreements are to be resolved is set out in Clauses 4(4) to (6)—the matters are to be referred to the commissions to settle the difference—but the Bill says nothing about how that is to be done or what is to happen if the commissions cannot agree with each other.
I think that I can see the reason why the Bill does not seek to fill those gaps. The only way in which they could be filled would be to refer the dispute to a third party to act in the same way as, for example, an arbitrator, but that would be to take the decision-taking function on these vital matters out of our hands or, to be more accurate, out of the hands of the commissions. Therefore, I think that on balance the Bill is right not to attempt to tell the commissions what they must do to achieve agreement, but it needs to be recognised that they must find a way of working together to ensure that a consensus is achieved and that the project is not stalled or delayed by disagreements between them or the two new bodies. I have to declare that at the moment I am a member of this House’s commission, but I regret that I will be leaving that position when I cease to be Convenor, so it will then be for others to look after that vital matter. That is the first point that I would like to make.
The other point is one that I make briefly in relation to one of the two amendments to which the noble Baroness referred—the one in Clause 2(4)(h), which deals with spreading the economic benefit of the works across the United Kingdom. I agree with the noble Baroness that there are problems here because of the effect of the Public Contracts Regulations 2015. Those who seek to enter into contracts for work of this kind have to be treated equally and without discrimination. That is the basic rule. Competition is not to be artificially limited by designing procurement in such a way as to,
“unduly favour or disadvantage certain economic operators”.
However, I hope that a way can be found to address the broad intention behind the provision that was passed in the other place by ensuring that companies up and down the whole of the United Kingdom, across all four nations, are made fully aware of the opportunities that will be available and how to bid for them. The process must be open to all without discrimination. That is not discrimination; it is just saying that spreading the message as widely as possible about what is on offer ought to be encouraged and provided for. Therefore, I look forward very much to the amendment that I have no doubt will be made to that provision to give effect to the broad idea behind the Motion passed in the other place.
With those comments, I very much support the Bill and join the noble Lord, Lord Newby, in wishing it a swift passage through this House.