Advisory Committee on Business Appointments — House of Commons, 2018-06-28
Topic: Government Operations
Chloe Rebecca Smith (Conservative, Centre-right): My hon. Friend raises an important point, which is, I suppose, at the other end of the process. Although it is ACoBA’s remit to look at the exit end of the process, the entry end is also bound around with codes of conduct—the ministerial code and the codes of conduct expected of civil servants. Crucial to those are of course the principles of public life. While we are on the subject of principles that govern what we are talking about here, I should say that we expect a high degree of principles and of ethical behaviour from anybody who comes in to work for the public sector—that is the least that both their employer and the taxpayer expect. However, I wonder whether it would ever be feasible to systematise that and have someone checking every dot on the i and cross on the t of how that could be done. That is a slightly different part of the process from the one we would be looking to ACoBA to deal with I did want to talk about transparency, because it is one way in which we can also look to gain accountability in the area of appointments after public service. ACoBA publishes a considerable amount of information on the applications it receives, and Departments do the same where it is their responsibility to do so. That advice is published online, in full, once an appointment is taken up, and Departments publish summary information regarding civil servants’ applications on a quarterly basis. What those methods do is very important. They provide a reputational check and balance. Hypothetically speaking, if I were a future employer of somebody and I felt they had not been honest about something which I could very easily scrutinise, I might think twice about employing them. We have a clear and open system, and it has a very human point at its heart. The Government believe that is helpful and sufficient to ensure that the public have the information they need for transparency and accountability purposes We have noted in our responses to the Public Administration and Constitutional Affairs Committee’s previous reports on this issue that there are certain areas where the current system may be tightened, and I would like to go into those now in order to outline to Committee members and others who are here this afternoon the changes we have made. First, the ministerial code is clear that Ministers of the Crown are expected to behave in a way that upholds the highest standards of propriety. The code contains an explicit prohibition on former Ministers from lobbying Government for two years following their departure from office, and they must also seek advice from ACoBA about any outside appointments and abide by that advice. To reinforce that requirement, the most recent version of the code appends a full version of the rules and includes new wording to make it clear that new appointments should not be taken up or announced until ACoBA has had the opportunity to provide its advice. Hon. Members will find that important in the context of examples they have given this afternoon In addition, the Minister for the Cabinet Office has recently written to ministerial colleagues reminding them of the importance of the business appointment rules in maintaining public confidence in the integrity of our public servants. We have also taken steps to improve awareness of our compliance with the rules at departmental level and to improve Departments’ monitoring of compliance issues. These actions are largely in response to recommendations made by my hon. Friend’s Select Committee in its latest report on this issue, and I thank him and the Committee for their continued interest. I particularly wanted to be able to set out today how we have made those changes and the way in which they take the issue forward The Cabinet Office has also recently issued updated guidance to Departments on administering the rules on working with ACoBA. This guidance includes a number of new points, including increasing clarity on how the rules apply to civil servants on career breaks, ensuring that all applications from former permanent secretaries are countersigned by the Cabinet Secretary and encouraging Departments to consider an individual’s compliance with the business appointment rules in the future, should they wish to return to Government service. [Interruption.] Dangerously, Madam Deputy Speaker, I am now going to pause for a glass of water. I await a heavyweight intervention from the Chair of the Select Committee. However, none is forthcoming. [Interruption.] I shall now complete my remarks, so that the House can move on to the important matters that await it in the next debate In addition, if a former Minister or senior civil servant is nominated for an honour, ACoBA will be consulted on an individual’s compliance with the business appointment rules as part of the honours and appointments secretariat’s existing vetting process. Finally, the chief executive of the civil service and the Government lead non-executive have written to the chairs of each of the departmental audit and risk committees, requiring them to monitor on a quarterly basis a Department’s performance on ensuring compliance with the business appointment rules. In our view, the amendments that I have listed for the House today, which will also be incorporated into the civil service management code in due course, will help to tighten and strengthen the processes that underpin the subject of today’s debate. They will also raise awareness and improve compliance with the rules In summary—[Interruption.] All I need is for some scenery to begin to collapse behind me; then I would have had the perfect afternoon in the Chamber. In summary, in the Government’s view, ACoBA’s primary role is, and should remain, to provide independent advice on the application of the business appointment rules on outside appointments to Ministers and the most senior Crown servants after they leave office. The Government’s view remains that the current rules strike the right balance between preventing conflicts of interest and recognising the necessary freedom of individuals to earn a living without unreasonable hindrance after they leave public service.