National Citizen Service Bill [HL] — House of Lords, 2016-12-07
Topic: Government Operations
Thomas Ashton (Conservative, Centre-right): My Lords, I am grateful for the kind words of the noble Lord, Lord Blunkett, and I thank the noble Lord, Lord Stevenson, for his brief remarks. I am thankful to both of them for making themselves available for meetings to discuss this, and I think we can agree a way forward We must, I believe, strike a balance. On the one hand we agree that we must give the organisation all the independence we can. It needs freedom to innovate, maintain its strong brand among young people and forge its own path. Young people must not feel the NCS is something that government does to them; they must want to go on it. At the same time, the Government have a duty to protect public money. Unsatisfactory or wasteful use of public money could kill the programme as surely as too close an association with the Government The noble Lord, Lord Blunkett, made a helpful suggestion in Committee for how we might strike this balance. He suggests that we do not have a government representative on the board but that a government representative is involved where appropriate and necessary for the Government to exercise oversight. The provisions on the government representative are in the charter, so I can commit to amending article 5 to remove the requirement for a government representative on the board. All board members will be appointed through a transparent and open process in line with OCPA procedures. Article 8 of the charter will retain the existing provision for a government representative on the remuneration committee of the organisation. As article 5 will no longer include the government representative, article 8 will be amended to state that the government representative is to be appointed by the Secretary of State in consultation with the chair. The government representative will have to approve the pay policy—not individual awards—of the trust, as included in the current draft. A sponsoring department always needs to have the ability to approve pay policy, in accordance with Managing Public Money We will also add an additional article to the charter. This will specify that there must be an audit and risk committee and that there must be a government representative on that committee. We want to be ambitious for the NCS and this necessarily means that the trust will handle a significant amount of public money. To fulfil its responsibilities towards public money, the Government need to be satisfied that the right procedures to manage that money are in place. We must also ensure that all board appointments meet the high standards expected of public appointees. The Prime Minister is responsible for recommending appointments to the Queen, and the Secretary of State will ensure an appropriate level of government involvement in the recruitment process, including government representation on recruitment panels for board members, in line with the code of practice for ministerial appointments to public bodies Together these measures will ensure sufficient government oversight, while allowing the NCS the freedom to have an independent board to lead the organisation. I hope that, with these commitments to amend the royal charter, the noble Lord will withdraw the amendment.