Police Reform and Social Responsibility Bill

My Lords, I will speak also to Amendment 58. I begin by saying that I am grateful to the noble Lord, Lord Stevens of Kirkwhelpington, for his support for the amendment. I understand that he is still abroad. The rapid pace with which we have gone through the first two days of Committee has confounded our original expectation that this amendment might not be dealt with until the third or fourth day. That is why he is not here to speak to the amendment. Amendment 24 deals with police and crime commissioners, police and crime commissions or whatever else we might have. Amendment 58 is a parallel amendment that deals with the Mayor's Office for Policing and Crime. The principle behind both amendments is to ensure that arrangements are written into the Bill that will ensure that there is good governance. The amendments follow the principle that we should use the best practice that we know exists in other sectors for the appointment of non-executive directors to support the general direction that is being set. Amendment 24—and Amendment 58, which is exactly parallel but applies to the Mayor’s Office for Policing and Crime—requires each police and crime commissioner to appoint a non-executive board of between four and seven members. In the context in which we are operating, in which we are talking about police and crime commissions, a duty would still be placed on the police and crime commissioner, as constituted under Amendment 31, tabled by the noble Baroness, Lady Harris, to appoint these non-executive board members. The task placed on those board members would be to work with the police and crime commissioners to ensure that there was good governance. In the amendment, three areas are set out in which it is important that there is a very clear and transparent mechanism to support good governance in respect of the work of the police and crime commissioners or commissions, or of the Mayor’s Office for Policing and Crime in London. The first area is that of financial decision-making. Again, this will depend on the ultimate balance that is struck in each case between the commission or commissioner, or the Mayor’s Office for Policing and Crime, and the chief officer of police. I am working on the basis that the police and crime commission or commissioner, or the Mayor’s Office for Policing and Crime, will be corporation sole and will have responsibility for major decisions such as the placement of contracts, financial allocation and a number of other serious financial matters. They will also be responsible for receiving audit reports and will carry out the functions that in a private sector company and on many public boards would be fulfilled by audit committees. In a series of areas where financial decisions are made, it is important that they are seen to be made not by an individual but in a good governance context in which other people are involved. The issue of staffing is similar. Again, there will be appointments to the Mayor’s Office for Policing and Crime or to the commission office where it will be important that the approach taken will be one of best practice and that there will be no question—as my noble friend Lord Hunt described—of someone appointing his or her chum to an office where they could end up setting the precept for a particular area. Again, it is important that there is a transparent and clear process with good governance. I suspect that there are many other staffing and human resources issues where the existence of non-executive board members who can deal with grievances, appeals and so on will be extremely valuable. The third area that I identified in the amendment relates to the equality responsibilities that would be placed on the police and crime commission or commissioner, or on the Mayor’s Office for Policing and Crime. I refer to equal opportunities responsibilities and diversity. Again, this responsibility obviously could be exercised by an individual, but would be much better exercised with the opportunity for challenge by others, including non-executive board members. Some equality issues would involve looking inwards within the organisation of the commission or commissioner's office, or within the Mayor’s Office for Policing and Crime, but some would be external and would involve looking at how the police service operates in that area. In this respect, there are a number of ethical questions where having non-executive board members would be extremely valuable. The Human Rights Act places obligations on all public bodies to act in a way that is proportionate, appropriate and so on. Again, if this is left solely to an individual, the only outcome if there is a dispute is recourse to the courts. Having an ethical challenge mechanism built into the structure is important and helpful. The amendment also states that non-executive directors would be responsible not only for good governance, but could support the police and crime commission or commissioners, or the Mayor’s Office for Policing and Crime, in their functions. That is deliberately phrased in a wide way, not in a way that requires things to be done in a particular fashion. It would enable certain functions or responsibilities to be delegated to support the work of the policing and crime commissioner or commission. It would enable individuals to be asked, for example, to investigate particular matters, issues or concerns from local communities, or perhaps to take an overview of particular concerns affecting those communities. An individual might be delegated on behalf of the commission or commissioner to oversee the way that stop and search is being used by the police force; or one or more non-executive board members might be tasked with looking at other specific issues. It is a way of ensuring that the workload of the person charged with this responsibility, whether the commission, commissioners or mayor’s office, could be spread and managed effectively. For that reason it is extremely important. The amendment also makes arrangements that would ensure that these appointments, and the arrangements for remuneration of expenses, are subject to approval by the relevant police and crime panel. That could also apply in the Government's original model of the Bill. It would ensure that the other members of the policing and crime commission in the model envisaged in Amendment 31 would have responsibility for the oversight of the mechanisms by which these non-executive directors were appointed. The reasoning behind the amendment is a desire to ensure that individuals do not act on their own. Clearly, if we have the model envisaged by Amendment 31, the policing and crime commissioner will act in accordance with a policing and crime panel and together they will form the commission. However, that does not remove the desirability of a requirement to have a non-executive presence in that structure. It would ensure that the elected members who are part of the policing and crime panel are leavened with other individuals who would act in a non-executive capacity. In circumstances in which a single individual fulfils this role—the Government’s preferred model—the amendment will ensure that that individual does not act alone and is not in a position where they can act capriciously. It does not undermine the principle that that individual is elected to fulfil a particular role in the Government’s model. However, it does address some of the concerns expressed by Members of your Lordships' House in this Committee and at Second Reading about ensuring that there is a structure around that individual which ensures that they cannot act capriciously. If you like, it is a bit like the Roman emperors who had around them someone to remind them that they were mortal. There is the danger that individuals who have this huge responsibility for perhaps very substantial areas of the country may lose sight of what is or is not reasonable. This is part of a structure of ensuring that they act reasonably, appropriately, proportionately and with the widest interests of the public at large. That is not to say that I believe that if there was a directly elected policing and crime commissioner, they would automatically act capriciously; nor am I suggesting that the mere fact of being directly elected prevents it, or that your judgment automatically disappears because you are directly elected. I have been elected too often in the past to various bodies not to have that view. However, if you are a single individual whose checks and balances are remote and in arrears, you need that governance structure around you. If I were in that position, I would want to have it. I know of individuals who may find themselves in this position in future who would want to have that arrangement around them simply to ensure that there can be no question about the nature and quality of the decisions that they take, and that there is a structure around them that good governance follows. That is the process that is envisaged in this amendment. The purpose is to make this work better and to avoid the concerns about the single individual. Even in the context of Amendment 31 and a police and crime commission, this is designed to ensure that that system works better. We all know of examples of organisations with executive members where the value of the non-executives who sit with them is extremely important in making sure that decisions are taken properly and that the right degree of external challenge takes place before those decisions are finalised. My noble friend Lord Hunt is very experienced in the health service—as am I at a slightly greater distance—and there are plenty of other examples. Even government departments these days have non-executive directors supporting the management board of the department concerned. Indeed, I believe that that was made a priority by the new Government, who perhaps wanted a different style of non-executive director from those which existed before, and who brought in some leading figures from the business community to fulfil the role. It is a concept with which the Government are familiar. Again, the amendment is put forward to try to assist the Government to make whatever system emerges at the end of the strange sausage-making process that is our legislative system in this country work better. I hope that the Committee will support me in my belief that the presence of non-executive directors in this context will be extremely helpful. I beg to move.