It is a pleasure to follow the noble Lord, Lord Wallace, and my noble friend Lord Davies; they made some very good points that I would have made myself. I will not repeat what the noble Lord, Lord Wallace, said in terms of advice to the Conservative Party; I suspect that the Minister will, as he said, have secretly agreed with some of it. It is sad what has happened to the Tory Party. It is sad that the Government have picked what is, in the scheme of things, such a minor issue—for goodness’ sake, what is happening with our public services?—when to pretend that it will somehow restore the faith of the British taxpayer is laughable. Certainly, no one in the Committee this afternoon is buying it. This is a classic case of getting the facts to fit an argument that the Government want to have.
We know that for some reason Conservative Governments tend to want to limit check-off, whereas we on these Benches see it as more of a positive and helpful thing in supporting good industrial relations, as my noble friend Lord Davies said. I would have
thought that these things, small scale as they are—although I will go on in a minute to talk about some of the data, or the lack of it, that the Government are choosing to rely on to make their case—ought to be resolved locally. Local managers and trade union officials resolve things all day, every day. That is the norm.
There are occasions that we all know about where the Government have chosen to get themselves involved or to pick a fight. We have seen what has happened in the NHS. Far be it from me to give the Government advice on good industrial relations, but they need to take some advice from somewhere because there are disputes that have been going on for far too long that are having a direct impact, for example, on patient care in the NHS, where the Government have been far from helpful.
It is striking that the Government admit that they do not have reliable information on the extent of the use of check-off by government departments and are relying on estimates, most heavily, as the noble Lord, Lord Wallace, said, those from the TaxPayers’ Alliance report of 2014. This is interesting because it claims that only 22% of those offering check-off were reimbursed by trade unions. At the moment, as we know, it is already possible to be reimbursed, but when it asked the same question of local councils, the LGA found that 67% were reimbursed. There is no attempt within the report provided by the Government to explain this difference. I think we can all come up with our own explanation of why these two organisations might have come to very different outcomes, but it is extraordinary that a policy change such as this, which could have some negative repercussions, is being based on such wide-ranging estimates. Given that we do not have accurate information about how many people use check-off or how many organisations are already reimbursed, it is impossible to know what the financial impact of the changes that the Government are implementing will be when taken against the potential damage to good will.
A number of questions arise from this. On devolution, which the noble Lord, Lord Wallace referred to, my reading is that these regulations will apply to England, Wales and Scotland. We know that many public services are devolved. I think I am right that industrial relations more widely are a reserved power, but the Minister will correct me. For example, obviously much negotiation goes on between the Senedd and public services in Wales, so why is it that this measure will be mandated from Whitehall? I have not asked the Welsh Government—perhaps I should have done—what their attitude to this is, but I am assuming that the Minister has had conversations with her counterpart in Cardiff. Can she let us know the Senedd’s view on this issue?
The estimated savings are bizarre and do not seem to take account of the diversity of services within the public sector in terms of the rates of trade union membership, the use of check-off and the rate of reimbursement. Big assumptions are being made about the standardisation of involvement in check-off. No justifications for them are provided.
Employers are required to assure themselves that the reimbursement amount is—this is the phrase the Government use—“substantially equivalent”. I am
not clear what that means. We accept that a cost of check-off exists. That cost is then calculated, that money is to be reimbursed by the relevant trade union and that amount is to be substantially equivalent. I am interested in that choice of words, as I would have thought the Government’s aim would be better reflected by use of the term “full cost recovery”. I have heard “substantially equivalent” used for medical devices and sometimes in maritime situations, but I do not understand why it and not an alternative phrase has been used here. Perhaps the Minister could explain.
It seems very strange that on page 8 of the impact assessment, in its analysis and evidence, the Government rely on the TaxPayers’ Alliance’s assertion that 90% of public sector bodies use check-off to justify the need to act but later, on page 26 of the same document, when estimating the cost of implementation, the Government repeatedly assert BEIS data that states that 56% of public bodies offer check-off. Can the Minister explain why the document relies on different figures for the same thing to support action? One overestimates the need and the other underestimates the cost. This does not seem a very sensible way of making policy. If there is no accurate information, perhaps the Government should say so or perhaps go out to consultation to get some more accurate data.
It is fascinating to read in the Explanatory Memorandum that the Government did not think that consultation would be helpful because
“the principles of this provision were debated extensively in Parliament … in 2016”.
This is a bit shabby. I follow our proceedings very carefully, as I am sure do the noble Lord, Lord Wallace, and my noble friend Lord Davies. To say that because we had an extensive debate in Parliament in 2016 there is now no further need to seek advice, comment or consult more widely is quite extraordinary. It perhaps overemphasises the interest which people outside the House take in our proceedings. There has been no opportunity for the main partners in this endeavour to share their thoughts because, the Government say, they did so seven years ago. That is not good enough.
The guidance to employers is not available, so we are not able to assure ourselves that employers will be given sufficient advice to make calculations about the cost, agree reimbursement and assess this “substantially equivalent” phrase. None of that is available to us for this debate and it would have helped to have sight of it. If we had examined the guidance, it would have helped us to assess how much care—I think that is the right phrase—the Government are taking on this. On the face of it, it appears that Ministers are reaching for this policy for reasons of political positioning or because they are seeking some sort of wedge issue rather than because of genuine concern about the practical impact. They do not know how widespread check-off is, how many individuals are involved or how many public bodies are affected. They therefore cannot possibly know what, if any, impact this will have in savings to the taxpayer.
This is not a good way to carry on. We expect better of the Government when they ask us to agree this sort of thing. I will listen carefully to what the Minister says, but I put on record our dissatisfaction with the
way that the impact assessment is written and its reliance on different data sources. This slapdash approach is because the Government are hell-bent on getting this done without considering some of the issues that I raised as carefully as they ought to.
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