Police Reform and Social Responsibility Bill

My Lords, this has been a very interesting and important debate. My noble friend and other noble Lords raised very pertinent questions about the status of the elected police commissioner and chief constable as corporations sole, the financial consequences of the proposed arrangements, referred to by the noble Lord, Lord Shipley, and the financial relationship between the commissioner and the chief constable. I will start with that. Since it is the commissioner who will set the precept and ultimately sign off the plan, he will have considerable influence over the chief constable, because he who controls the resources tends to pull the strings. It will be rather like the relationship between Her Majesty's Treasury and the Home Office. My experience of friends in the Treasury over 10 years as a Minister was that they delighted in micromanaging the affairs of departments, which they did not think could organise a you-know-what in a brewery. It will be inevitable that the commissioner, who in the end will have total control over how much money the chief constable gets, will be able to exercise considerable operational control. We should bear that in mind when we consider the construct of the Bill. My other concern is about the lack of good corporate governance when it comes to the concept of corporation sole and issues of expenditure, contracts and the employment of staff. As I said on our previous day in Committee, it is puzzling that the party opposite, the Conservatives, who 20 years ago were very concerned about ensuring good corporate governance both in the public and private sectors, seem to have forgotten all this when they came to construct the Bill. This has been a very good debate and noble Lords have used their experience of how the police service currently operates to tease out some of the issues. The noble Lord, Lord Carlile, talked about the chief officer as chief executive. He thought that it was probably a good thing, provided that it was done in the right way. The problem I have with that is that, as I read the Bill, the chief constable, being corporation sole, is not just the chief executive; he or she is also the chair and the non-executive directors. It is the realisation of a Gilbertian fantasy: the Lord High Everything Else. The chief constable is not just the Lord High Everything Else; he is the Lord High Everything. Of course the noble Lord was right to ask the Minister whether there will be structures, such as good employment practice and all the other constraints and necessary safeguards, and I am sure the Minister will seek to give an affirmative response, but, in the end, it will be down to the chief constable as a corporation sole. As the noble Lord, Lord Stevens, said, in the end those who make, for instance, employment decisions will be employed by the chief constable, the corporation sole, and that must have an impact on their behaviour. This corporate governance structure, or the absence of it, would never be contemplated by the Government if this were a private sector operation. The idea that you can have one person without some kind of board structure and without non-executives to give the check and balance would not be contemplated. Why is this kind of structure being contemplated in this part of the public sector? It is a puzzle to me. I have always paid tribute to the previous Conservative Government for the emphasis they gave to good corporate governance, the encouragement they gave to the Institute of Directors and the CBI and the work by Cadbury. The previous Conservative Government encouraged all these things. Why are they ignoring that when it comes to this Bill?