LSE Lecture: The Work of PASC History of PASC: * The Public Administration Select Committee, PASC, was set up in 1997, merging the Committee on Parliamentary Commissioner for Administration and the Public Services Committee. There are 11 Members in total, in party proportion – so there are currently 5 Conservative, 5 Labour and 1 Liberal Democrat. The Chair is elected by the whole House of Commons in a secret ballot, in June 2010 in my case. Other Members are nominated by their parties following internal elections and their appointments are confirmed by the House. PASC has a broad, cross-departmental remit, examining the quality and standards of administration within the Civil Service, the Cabinet Office and scrutinising the reports of the Ombudsman. 1 LSE Lecture: The Work of PASC PASC’s remit * According to House of Commons Standing Order No. 146, the role of PASC is... “to examine the reports of the Parliamentary Commissioner for Administration and the Health Service Commissioner for England” (i.e. the ‘Ombudsman’) “and matters in connection therewith” And... “to consider matters relating to the quality and standards of administration provided by civil service departments” “and other matters relating to the civil service” 2 LSE Lecture: The Work of PASC PASC’s remit covers: * 1. Quality and standards of administration in the civil service Including: - Public service delivery, both in the civil service and beyond (often linked to Ombudsman findings) - Systemic HR issues - Macro’ performance management, such as the use of targets - Responses to specific incidents, such as data loss 2. Other civil service issues These have included: o the role of special advisers o Government use of IT o the need for a Civil Service Act 3. Cabinet Office policy responsibilities Including: o Charities and the voluntary sector o Quangos o Public appointments o Ethical regulation for government and public life more widely o Official statistics 4. Ombudsman reports on specific issues where the Government is unwilling to remedy injustice on general ‘quality of administration’ issues 3 LSE Lecture: The Work of PASC 2010-2015 Parliament workstreams: Who does UK National Strategy? * Our first major inquiry of this Parliament was into the subject of ‘Who does UK national strategy?’ Sadly, the answer we received to our question was ‘no-one’. The central contention of our first Report is that Government has lost the capacity to think strategically. We argued that the Government needs to reclaim the art of creating “national strategy” which should encompass all areas of Government activity and not focus just on national security. PASC argued that clear strategic leadership is needed to maintain British interests in an increasingly multi-polar and fast changing world. We have concerns about Whitehall’s capacity to provide this. 4 LSE Lecture: The Work of PASC Strategic Thinking in Government * A follow-up inquiry into ‘Strategic Thinking in Government’ was launched last September and is currently taking oral evidence. This inquiry is examining how government should act strategically in a complex and uncertain world and in particular considering how government should understand and define the national interest. We are examining: how this is linked to policy-making, international examples of strategic policy-making; lessons to be learnt from how businesses do strategic thinking, and the role of social media and activities such as crowd sourcing in developing strategy and understanding the national interest. 5 LSE Lecture: The Work of PASC ‘Smaller Government: Shrinking the Quango State?’ * At the start of the Parliament, PASC also scrutinised the work of the Government to fulfil the commitment in the Coalition Agreement to "reduce the number and cost of quangos." PASC argued in its report ‘Smaller Government: Shrinking the Quango State?’ that the so-called ‘bonfire of the quangos’ represented “a missed opportunity”. We found that the tests used to evaluate public bodies and whether they should be abolished were "hopelessly unclear" and the process was "rushed and poorly handled". The Government should have reassessed what function public bodies are needed to perform and transferred many more of these activities to charities and mutuals. Doing so would have helped explain more clearly its vision for a Big Society, giving these organisations the ability to provide more government services. It should also have used the review to take control of some activities of public bodies that provide questionable benefit to the taxpayer, most notably the use of public funds for lobbying and public relations campaigns”. 6 LSE Lecture: The Work of PASC Smaller Government: what do ministers do? * Another Early report was from PASC was also on the theme of ‘Smaller Government; What do ministers do?’ Following the decision to cut the number of MPs in the House of Commons from 650 to 600 the Public Administration Select Committee examined the role and responsibilities of ministers to see if there was scope for reductions there too. PASC recommends three steps which the Government should take: 1. The current legal cap on the number of paid ministers should set the absolute limit; 2. The legal limit on the number of ministers in the Commons should be cut by eight, in line with the reduction in the number of MPs just enacted; 3. The number of PPSs should be limited to one per department—a reduction of 26. The Committee believes it should ultimately be possible to cut the number of ministers to a total of 80, shared between the Commons and the Lords, as recommended by PASC in the previous Parliament. 7 LSE Lecture: The Work of PASC Change in Government: The Agenda for Leadership * Civil Service reform was the topic of a major inquiry for the Committee last year, following the Prime Minister’s promise to “turn government on its head; taking power away from Whitehall and putting it into the hands of people and communities.” We took extensive evidence from academics, Permanent Secretaries, former Cabinet Secretaries, and expert commentators on the Civil Service. We found that: Unless we achieve a more innovative and entrepreneurial Civil Service, the Government’s flagship policies will be left high and dry. The Civil Service needs a new capability: the capability to engage with voluntary and private sector organisations to contract and commission public services. Development here is vital: it will not just happen. Reform will not just happen. We need structural organisational reform, properly thought through and planned across all departments. There is a worrying lack of detail in the Government’s Civil Service 2020 document about how its objectives would be achieved. July’s Open Public Services White Paper seemed devoid of content on Civil Service reform. There is no substitute for a world-class centre of government which can co-ordinate, deliver and sustain a world-class reform throughout the Civil Service. Frankly, we do not think the detail so far provided on this administration’s plans for Civil Service reform is adequate. Our message to Francis Maude is that he must take a lead on the process of Civil Service reform, or the Government’s programme will be held back by inertia. 8 LSE Lecture: The Work of PASC Leadership of change: new arrangements for the roles of the Head of the Civil Service and the Cabinet Secretary * We recently launched an inquiry when the retirement of the Head of the Civil Service and Cabinet Secretary, Sir Gus (now Lord) O'Donnell and significant changes to the staffing at the top of the Civil Service were announced. The roles of Cabinet Secretary and Head of the Civil Service have now been separated. The new Head of the Civil Service is Sir Bob Kerslake, who is taking on this role while continuing to be Permanent Secretary at the Department for Communities and Local Government. We warn that the new arrangements “could lead to weaker leadership and disperse power at a critical time of change in government” and that they will not succeed unless the two roles have equal power and status. They must both attend Cabinet on equal terms and both must have access to the Prime Minister and the authority “to speak truth unto power”. We are also not convinced that the role of Head of the Civil Service can be combined with that of a permanent secretary in a major government department. There is a strong case for a full-time Head of the Civil Service. We have proposed a review to assess whether it would be appropriate to combine the roles of Permanent Secretary of the Cabinet Office and Head of the Civil Service in one post. This would place responsibility for Civil Service reform solely with one individual in the stronger centre of government which we consider is needed to drive Civil Service reform. 9 LSE Lecture: The Work of PASC Government and IT- "A Recipe For Rip-Offs": Time For A New Approach * In a rather different area, PASC published a report last July on the Government’s use of IT. We revealed major flaws in Government procurement processes, which we argued created a “recipe for rip-offs”. PASC found that the Government is over-reliant on large contractors for its IT needs and has a serious lack of in-house skills: as a result IT procurement too often resulted in late, over budget IT systems that are not fit for purpose. We heard truly worrying accounts about the amount of money successive Governments have wasted on failed IT projects. The Government itself has said that it is overly reliant on an “oligopoly” of suppliers; some witnesses went further and described the situation as a ‘cartel.’ Whatever we call it, it has led to an inexcusable situation that sees governments waste an obscene amount of public money.” Change required across government to achieve the Government’s own aims of becoming an “intelligent” customer. We expect to consider the issue of ‘legacy systems’ in government IT at a later date. 10 LSE Lecture: The Work of PASC The Big Society * Another huge area for PASC has been the Big Society. The Office for Civil Society is in the Cabinet Office, so this falls within our remit. Our inquiry therefore focused on the role of the Civil Service in implementing the Big Society. The project by its very nature requires substantial change in Whitehall and to the nature of government. It represents a whole new way of ‘doing Government’. Without a coherent implementation plan, there is confusion over message, whilst smaller charities face barriers in contracting and commissioning policies. We found that the government’s approach for the Big Society doesn't do enough to help 'the little society'. The Government must address the barriers smaller charities experience in the contracting and commissioning system, which means developing a plan to address roles, tasks, responsibilities and skills in Whitehall departments. PASC concludes there are two major practical steps Government must take: 1. Create a single Big Society Minister, who has a crosscutting brief, to help other Ministers to drive through this agenda once they begin reporting progress against the aims of Open Public Services White Paper, from April 2012. 2. Implement an impact assessment, to be applied to every Government policy, statutory instrument, and new Bill, which answers the simple question: “what substantively will this do to build social capital, people power, and social entrepreneurs? 11 LSE Lecture: The Work of PASC Government use of statistics and the UK Statistics Authority * Another important role of the Committee is oversight of the work of the UK Statistics Authority. The Committee takes seriously the necessity for official statistics to be produced and presented to the highest standards of independence and integrity. During the selection process for a new chair of UKSA last year, the Minister for the Cabinet Office indicated that he envisaged a greater role for this Committee. He subsequently sought the Committee’s view on the composition of the selection panel, the remuneration to be offered for the post, and the person specification and job description. We welcomed the fresh approach taken by the Minister to the selection process for this important and independent post and appreciated the constructive approach taken to consultation and engagement with the Committee. We have appointed a specialist adviser on statistical matters and intend to take a greater role in scrutinising the use of statistics by government departments. 12 LSE Lecture: The Work of PASC The work of the Parliamentary and Health Service Ombudsman * One of PASC’s predecessor committees was set up with the sole remit of scrutinising the Parliamentary Commissioner for Standards (now the Parliamentary and Health Service Ombudsman). Legislation enables the Ombudsman to publish special reports to Parliament in cases where an injustice has not been, or will not be, remedied. PASC holds a regular annual session in the Autumn to scrutinise the Ombudsman’s work. The Committee tends to act as the Ombudsman’s “critical friend” not a sponsor. PASC is a strong supporter of the office of the Ombudsman and especially the work of the present Ombudsman in identifying and challenging maladministration in the public services. Improved complaint handling must be part of this process of public sector reform: there is no point in seeking to improve services for the public without improving the feedback mechanisms, whereby the public can comment on and, if necessary, complain about, these services. 13 LSE Lecture: The Work of PASC The work of the Commissioner for Public Appointments and First Civil Service Commissioner (jointly held by Sir David Normington) * PASC also has oversight of the work of the Commissioner for Public Appointments and First Civil Service Commissioner, posts jointly held by Sir David Normington. We welcomed the broad thrust of Sir David Normington's proposed reforms to the system of public appointment to streamline the existing Code for Public Appointments and to adopt a lighter touch in regulating the public appointments process. The committee particularly supports his commitment to broadening genuine diversity in public appointments. However, the Government’s “arbitrary” cap on pay for such appointments, fixed to the Ministerial salary of the Prime Minister (£142,500), risks discouraging the recruitment and retention of the best talent. The government should implement a proper system to assess what salaries should be paid, in line with the report of Will Hutton’s review of fair pay in the public sector. The Government should also reduce dependency on outside ‘headhunter’ firms to cut the costs of recruitment, by developing Whitehall's in-house recruitment expertise to reduce dependence. We have also recommended that the Commissioner be given a new remit to review the Departments' appraisal systems, to ensure that public appointees are performing, and if they are not, to ensure they are not just routinely re-appointed. 14 LSE Lecture: The Work of PASC The Administrative Justice and Tribunals Council: * PASC undertook a short inquiry in autumn 2011 into the Government’s plans for future oversight of the administrative justice system. This inquiry follows the Government’s announcement that it plans to abolish the Administrative Justice and Tribunals Council (AJTC) as part of its programme of reform of public bodies. “Administrative justice” includes the procedures used by public authorities for making decisions in relation to individual people, the law that regulates decision-making, and the systems (such as the various tribunals and ombudsmen) that enable people to challenge these decisions. The statutory functions of the AJTC include keeping the system under review and considering ways to make the system accessible, fair and efficient. We expect to publish our report on this subject shortly. 15 LSE Lecture: The Work of PASC The work of the Business Appointment Rules and the Advisory Committee on Business Appointments (the ‘revolving door’ between business and Whitehall) * One of our current inquiries is into Business Appointment Rules and the work of the Advisory Committee on Business Appointments (ACoBA). This is the question of the so-called ‘revolving door’ between business and Whitehall. PASC have launched a new inquiry into this which is due to start taking oral evidence in March. The inquiry is timely for a number of reasons, as there are a number of factors which are likely to increase the numbers of civil servants moving between Whitehall and the private sector: a) There is a growing demand for civil servants with external expertise, as reported by former ministers in PASC’s recent report Change in Government: the agenda for leadership. b) Structural reforms in the Civil Service as part of the Government’s deficit reduction agenda seem likely to mean a significant number of individuals leaving the civil service and looking for outside appointments. c) The Government’s Big Society agenda calls for a greater diversity of providers for public services, which will increased the potential for movement of employees between the traditional public, private and third sectors, thus leading to potential conflict with the Business Appointment Rules. The inquiry will seeks to consider how Government can draw in and benefit from external expertise without giving rise to concern over propriety and undue influence. 16 LSE Lecture: The Work of PASC Future work programme: * Looking to the future, We are currently setting the priorities for PASC for the rest of the Parliament (until 2015 General Election) We will of course continue our ongoing scrutiny work, holding regular sessions with the Ombudsman, the Charity Commission, the Cabinet Office, UKSA and the Commissioner for Public Appointments. Likely other inquiries will include: o The use of special advisers in Whitehall: Last October PASC announced their intention, as part of a programme of inquiries to examine influence in the highest reaches of Government, to consider the role of special advisers and the operation of the Business Appointment Rules. o The work of the Committee on Standards in Public Life: The scrutiny of CSPL falls within the remit of PASC, and fits with our wider interest in good government and propriety 17 LSE Lecture: The Work of PASC Our future work is likely to be guided by the six principles of good governance which we have identified in our inquiries: * 1. We want to look at how senior departmental managers exercise leadership to drive through change, in particular through the new structures of departmental boards. 2. We will assess how performance is affected by the development of new and relevant skill sets in government. 3. We would like the Government to assess whether the old Haldane model of Ministerial responsibility and accountability is really appropriate in this age of radical transfer of functions out of Whitehall. 4. We want to ensure that Government is being properly transparent and empowering citizens to use the data it is releasing. 5. For us, it is crucial that change programmes are coherent and coordinated from the centre. And we want to ensure that civil servants are properly engaged in 6. and empowered to deliver reform. 18