Pensions Bill

My Lords, I dare not say that I am grateful to the noble Baroness for tabling the amendment, but I am delighted that we were able to have this discussion now. I hope that I can be flexible with my speaking notes so that I can try to address some of the noble Baroness’s concerns, which I appreciate are important. I stress that the Government have approached the development of proposals for personal accounts in a very collaborative and consensual way. I strongly believe that that approach is not going to change, and we will continue to work with the network of stakeholders that we have established. We will continue to be open about proposals set out in the White Paper, the consultation and the Government’s response. Our approach is to use the documents that are in the public domain and set out the proposals, combining that with the requirements on the delivery authority to produce an annual report and accounts, to have a management statement which is agreed with the DWP and is public, and to have a financial memorandum. These procedures and processes will create a situation in which the transparency required by the noble Baroness can be delivered. In Committee, noble Lords indicated that they would return to these topics on Report. The Bill seeks to establish a delivery authority to utilise the knowledge, skills and experience of the private sector to help the Government to understand the commercial and operational implications of policy decisions. In particular, the delivery authority will advise on specific products that comprise a financial, technical and commercial strategy. We want to introduce independent expertise at an early stage to ensure that our proposals are robust and can be implemented successfully. As Clause 33 indicates, the delivery authority will, during the initial phase, provide advice on relevant proposals as presented by the Secretary of State. As I have indicated, these proposals, including the December White Paper and the DWP’s recent response to the consultation on that paper, are already in the public domain. Furthermore, the debates on the Bill will provide and shape the context within which the authority will work. We continue to develop proposals prior to legislating for personal accounts in a proposed second Bill. In doing so, the DWP will utilise the stakeholder networks it has worked hard to establish, maintaining the open and consultative approach we have developed with interested parties. A good example of our collaborative working approach is the seminars we have held in conjunction with the PPI and other organisations. We will continue to listen to and engage with stakeholders as we take forward proposals for personal accounts. We cannot do this without having the level of transparency for which the noble Baroness is calling. We cannot achieve that engagement without working in that way. As the delivery authority takes up its role, it, too, will proffer advice on the proposals. But, unlike stakeholders, the authority will do so in an independent capacity and from the perspective of an organisation that will be tasked with creating the infrastructure for the scheme. We must bear in mind that in particular, the authority will be considering the design of the infrastructure for the scheme and the preparations for the contracting of services necessary to set it up. To expose the nature of this work, as the amendment suggests, would put the delivery authority at a major disadvantage when it comes to negotiating contracts. Indeed, it would be likely to deter potential suppliers who would be denied confidentiality. I believe that this is one of the key problems with the amendment. This would clearly not be in the interests of the eventual members of the scheme. As I have indicated, the primary reason for bringing in independent expertise at this early stage is to advise on the viability of policy proposals and the scheme, including the commercial strategy for service contracts. Guidance is a term which describes one way in which the Secretary of State could communicate with the delivery authority about how it carries out its duties—it is not a method of curtailing the independence of the authority in providing advice on proposals. Much of this guidance will be uncontroversial, such as how the authority could present advice to the Secretary of State. However, the delivery authority will be required to produce an annual report and accounts, which is important in terms of transparency. That public document will include details of the authority’s work, the issues it has advised on and the progress it has made towards delivering its remit. As I suggested earlier, the authority will also be subject to normal non-departmental public body scrutiny and accountability arrangements. The management statement and the financial memorandum, which will be public documents, will provide a clear operating framework. As I have said, these documents will be agreed with the DWP. I fully accept the spirit in which this amendment was tabled. I stress again that we are, and will continue to be, committed to maintaining the consensus that has been our overriding approach in developing our proposals for personal accounts. This will not change once the authority is in place. Our White Paper response document quite clearly indicates our expectation that the delivery authority will act in an open and consultative manner. Indeed, in his foreword to that document, the Secretary of State was unambiguous in stating: "““The last year has seen tremendous progress in building consensus on a new foundation for long-term savings. We must now go further in deepening that consensus around the details of personal accounts. The coming year could be the most important in getting this right””." I hope that I have reassured the noble Baroness that, in taking forward proposals for personal accounts, we and the delivery authority will be open and transparent in our proceedings. However, as she will readily appreciate, we must also consider the sensitivities around commercial confidentiality that I mentioned. I hope that the noble Baroness will consider withdrawing her amendment.