Contracting Out (Functions relating to the Royal Parks) Order 2016 — House of Lords, 2016-10-24
Topic: Public Lands
Thomas Ashton (Conservative, Centre-right): My Lords, the Government are proposing to use the powers in the Deregulation and Contracting Out Act 1994 to contract out the direct management of the Royal Parks estate. The functions are currently performed by an executive agency, a directorate of the Department for Culture, Media and Sport, which reports directly to the Secretary of State. Under the proposals we are debating today, the ownership of the estate will not change and the Secretary of State will still be accountable for its management The Royal Parks are at the heart of London and it is difficult to imagine the city without them. They are integral to the identity and life of the capital and the country, are enjoyed by 77 million people each year and enjoy a satisfaction rating of 98%. You may ask: if the parks are performing so well, why change things? The paradox is that to ensure that the parks remain as they are—outstanding free amenity spaces for all to enjoy—the means of managing has to change if we are to ensure that these outstanding public assets are protected for the long term. The current operational, governance and management arrangements need to be revised to enable the parks to operate more effectively and plan better for the future. When the Royal Parks Agency was established in 1993, almost all its funding came from the Exchequer. The situation has changed: taxpayer funding is now around just 30%. The rest is mostly self-generated, and we need to change the model to ensure that the Royal Parks are able to plan effectively for the future. As currently constituted, the agency is not able to build up a reserve, carry over income from one year to the next, or fully benefit from the opportunities offered by commercial income. Under the proposed arrangements, the new organisation will be able to plan for the longer term rather than on a year-by-year basis, and operate more efficiently, for the benefit of the parks and their visitors. A single charitable body will make a more compelling case for support to corporate sponsors, private donors and charitable trusts, as well as attracting new volunteers The existing charity, the Royal Parks Foundation, already fundraises for the parks. Merging the charity with the new organisation will bring an alignment of objectives. The foundation’s board supports this move. The foundation board and the agency’s advisory board have provided sterling support and direction over the years. The new organisation will be a government company with charitable status, whose draft charitable objects focus on protecting the intrinsic qualities of the parks, including their environmental benefits, and offering high-quality services to visitors. The objects of the new charity will be closely aligned with the statutory responsibilities of the Secretary of State There will be a contract between the Secretary of State and the new charity, which will set out what it must do in return for the funding provided under the contract. The contract makes it clear that the new charity must maintain its green spaces, buildings and structures to high standards. The Government will continue to monitor the charity’s performance and review the contract every five years I also make it absolutely clear that the Royal Parks will remain free to visit. The Government will continue to provide funding. I also reassure the House that this proposal is not about the commercialisation of the Royal Parks; rather, it is to allow the parks to use their income and assets more effectively for the benefit of the estate and park visitors. The organisation will continue to be subject to planning and licensing control by local authorities. There will not be year-round rock concerts or any net loss of green space to new developments. It is appropriate, as we approach Christmas, to mention Winter Wonderland, which occupies a small parcel of Hyde Park and is immensely popular, attracting more than 3 million people each year, many from overseas, bringing income to London and money for reinvestment in the parks. This event takes place at a time when Hyde Park was traditionally rather empty of visitors. We already have Winter Wonderland; this proposal will not mean the addition of summer, autumn and spring wonderlands. Hyde Park will not be host to a 52-week-a-year funfair The Government expect the new charity to continue to identify ways in which assets can be used in positive, creative and, most importantly, appropriate ways. The agency has closely engaged with representative groups and the proposal has been discussed at regular meetings over the past 12 months, to which friends’ groups, concessionaires, partner organisations, key agencies, local residents’ groups, local businesses, MPs and local councillors have been invited. The proposal was discussed at a meeting of the friends’ forum last week, and there was broad support for the new status, given its aim of bringing long-term financial stability to the parks and ongoing investment into the estate. "Meet the park team" events—the equivalent of town hall meetings—have been held in each park, widely advertised locally and through social media, thereby speaking individually to park visitors not represented on formal stakeholder groups There have been extensive meeting and consultation events with staff from both the agency and the foundation. There are no current plans for redundancies and there are roles available for all permanent staff within the new organisation. The Greater London Authority is represented on the project board and local authority leaders are represented on the Royal Parks advisory board, which supports the change. Most recognise that the proposal is seeking to bring long-term financial stability to the Royal Parks estate. The Secretary of State is in the process of appointing trustees to the board of the new organisation. Other appointments will be made by the Mayor of London and will include local authority leaders. The Royal Household will have ex officio representation The only area of land that is managed by the agency but is not in the ownership of either the monarch or the Government is Grosvenor Square Garden, which is owned by the Grosvenor Estate. This order would allow the Government to contract out the direct management of that square to a third party, such as Grosvenor, but only on the condition that it remains a free public amenity for the benefit of all. The parks will continue to be policed by the Metropolitan Police Service. Any changes to the park regulations will continue to require the approval of Parliament To conclude, the proposal is evolution rather than revolution and enables the parks’ operating model to reflect the realities and opportunities of today. What the public see and experience in the parks will not change dramatically but will provide a sustainable financial future for them, and this measure helps deliver that. Subject to Parliament’s agreement, it is envisaged that the new arrangements will take effect on 1 March 2017. I beg to move Amendment to the Motion