Agency Programme (Hansard, 16 January 1989)

§ 125. Mr. Barry Field
To ask the Minister for the Civil Service what steps he intends to take to speed up the agency programme.

§ Mr. Luce
Since I last spoke to the House on This subject on 5 December 1988, Her Majesty's Stationery Office has been launched as an agency, bringing the total of agencies that have been set up to three. Around 30 other candidates for agency status have been announced as under active consideration, and I expect more to be announced.

§ Mr. Field
Does my right hon. Friend agree with me that one of the best ways to speed up the agency function is to ensure that the chief executive, and not the appropriate permanent under-secretary, is the accounting office? Will he place a list in the Library of those agency functions where the permanent under-secretary is still the accounting officer?

§ Mr. Luce
I appreciate the importance of my hon. Friend's question. The Treasury and Civil Service Select Committee said forcefully that accountability policies should be clarified and that the chief executive of the agency should carry responsibility for day-to-day operations as accounting officer. The Government have agreed with that, in their reply. The HMSO was recently launched as an agency. It is the first example of a chief executive being accounting officer. I shall respond to the other part of my hon. Friend's question.

§ Mr. John Garrett
Does the Minister agree that the purpose of agencies is to introduce regional pay and, therefore, to reduce the relative pay of civil servants outside London? That is precisely what is likely to happen in the HMSO, the headquarters of which is in my constituency. Does the right hon. Gentleman agree that it is widely thought that another intention behind the agency programme is to make political appointments to head the agencies? Can he satisfy the House on that anxiety as well?

§ Mr. Luce
The suggestion that, as a result of the establishment of agencies, there will be a cut in pay is a total and utter misconception. If regional pay is introduced, it will not lead to a cut in some people's pay. It is concerned with catering for certain circumstances, such as those found in the south-east, or for professional groups such as administrative officers or scientists, by providing a flexible pay system.
It is also utterly wrong to suggest that there are political appointments as chief executives of agencies. We are looking for the best man for the job. The first agency was the vehicles inspectorate, and we have an outstanding civil servant in charge of it.