Author: johnredwood

In his speech to the CBI Annual Conference the Prime Minister called for more innovation and better productivity advances. He is right that innovation can accelerate growth, create more better paid jobs, and raise productivity. Waves of innovation in past decades have fuelled huge advances in living standards and pay.

The government needs to use its Brexit freedoms and its powers as an important buyer of goods and services in our economy to boost the ideas that will give us greater prosperity. A more productive economy is one with higher pay and with better service.

One of the ways to raise productivity is to concentrate more activity and people in the most productive areas. The suggestions below seek to tackle that:

1. Pharmaceuticals and medicine.  Allow access to generic anonymised data about treatments and success rates in the  NHS to companies seeking to research new life saving and life enhancing treatments and medicines.  Amend the rules on the conduct of tests on new drugs and products to make them competitive with US ones, whilst ensuring strong safety protections.
2. Energy. This is an area of high value added and well paid jobs. The government accepts that oil and gas are transition fuels which will continue  to provide the bulk of the UK’s energy this decade whilst the electrical revolution develops. It should therefore use its tax policies and licencing  powers to develop more of our domestic oil and gas. Home produced produces less CO2, sparing the CO 2 generated by long distance transport for imports. It also pays a lot more tax to the UK Exchequer instead of paying huge sums in tax away for foreign governments.
3. High energy using industries like special steels and ceramics, where there can be high value added from design and specification. Suspend emissions trading which imposes a heavy extra cost on our industry making it difficult to compete against imports.
4. Defence. Spend more of the growing and substantial defence budget on UK procurement. Encourage greater UK R and D in smart weaponry, communications and cyber.
5. Nuclear. Pump prime the production of small modular nuclear reactor to gain type approval and licences, ready to mass produce for home and export markets.

I will pursue these matters, as I am concerned about how much aid we give to multinational organisations to spend for us. Having a voice at the Board table in general discussion does not mean all the aid spent will be in ways and in places we would choose, and it does raise issues over accountability for such large sums of money. Given the need to control public spending better it makes little sense to trust international organisations to spend money for us. 

 

The Foreign, Commonwealth and Development Office has provided the following answer to your written parliamentary question (92049):

Question:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what unrestricted aid funding the Government provides to international organisations. (92049)

Tabled on: 21 November 2022

Answer:
Mr Andrew Mitchell:

In 2021 £4,277 million of UK Official Development Assistance (ODA) was delivered through core contributions to multilateral organisations. This was 37.4 per cent of the total UK ODA budget.

Multilateral organisations, including the United Nations, global health and education funds, the international financial institutions and the Commonwealth are essential partners in achieving the UK’s goals. The UK uses its voice on multilateral boards to ensure decisions align with UK priorities, including how and where their funds are spent.

The answer was submitted on 29 Nov 2022 at 16:00.

 

 

 

 

The Foreign, Commonwealth and Development Office has provided the following answer to your written parliamentary question (92050):

Question:
To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what steps the Government takes to assess the suitability and value for money of (a) projects organised by and (b) grants from international organisations. (92050)

Tabled on: 21 November 2022

Answer:
Mr Andrew Mitchell:

The suitability and value for money of international organisations receiving Official Development Assistance (ODA), including the projects they organise and grants they provide, is continually assessed through FCDO annual reviews and business cases, as set out in the Department’s Programme Operating Framework.

The Independent Commission for Aid Impact (ICAI) independently scrutinises UK ODA to international organisations to assess value for money and impact, including recent ICAI reviews of tackling fraud in multilateral organisations and of the UK’s work with the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM). The UK is also a member of the Multilateral Organisation Performance Assessment Network (MOPAN), which carries out regular assessments of multilateral organisations.

The answer was submitted on 29 Nov 2022 at 16:01.

I am always disappointed though not surprised by the very different approaches taken by Private sector company  Chief Executives and public sector ones when being interviewed about their organisations.

The company CEO s go on to explain how well their business is doing. They  explain their passion to serve their customers better, to keep prices down and to innovate. They can manage whatever circumstances  throws at them. If they are being interviewed because something has gone wrong, they apologise and tell us how it is now being put right and will not happen again. They  do not blame their shareholders for not supplying them  enough money or giving  them the wrong instructions.They do not say the Bank manager was to blame for being too mean.

In contrast public sector CEOs often come on to tell us their service cannot manage, to say the increases in the  cash they are sent are insufficient, to say they are unable to recruit the  people they have been asked to employ. They are rarely asked why they cannot run the service better or even what they are doing to try to improve it.

We need to encourage a can do approach amongst high paid public sector CEOs who need  to grab the quality and cost problems which bedevil too many public services.

The costs of running government have escalated whilst the crucial outputs of more and better service have  not risen as we would like. I will look at why in a number of  articles.

One of the reasons is the escalation of the overhead, with more and more management and administration being recruited. Two trends this century that have spurred this process are the moves to so called independent bodies to carry out what remain as government functions, and the overlay of an increasing  number of additional objectives to meeting service needs from net zero targets through diversity targets to behavioural requirements.  These may be desirable in themselves but can become a conflicting overload or impediment to service delivery if not well managed. Carbon reduction targets for example can conflict with the policy need to maintain national energy security and to have more contract gas and electricity at affordable prices from reliable domestic suppliers.  Wanting more legal migrants to fill jobs with a more diverse workforce can lead to greater pressures on social housing and NHS services as the population grows.

The danger of the new models of government are that you can end up with three different managements all running the same bit of service. If we take the  case of NHS England, the Ministers and officials in the Department of Health have a large paybill as if they were running the service, yet they are merely monitoring and supplying resource to the large management cadres of NHS England and the other  national Health quangos. These in turn seek to influence or control the management teams of the NHS Hospital and GP trusts that actually run the service day to day. So there are three public sector layers of senior management. The NHS then contracts in a lot of its needs from the private sector, so taxpayers also end up paying for the management of drug companies, staffing agencies, private care   and pharmacies who provide some of the service.

I have  no issue with sensible buying in and contracting out for drugs, catering services, cleaning and other matters that are well established under Labour and Conservative governments and where the result is better quality and value. I do have an issue with three or four layers of management within the public sector and the contractors, increasing the costs of dealing with each other and increasing the likelihood of blurred accountability.

The idea that a quango like NHS England is an independent body free of Ministerial involvement is not even accepted by its advocates. As soon as anything goes wrong the Minister is called in and is usually blamed. The Minister is rightly held to account in Parliament for the scale of resource , the aims of the service and the success or failure in using the resource well. Rarely does Parliament summon the CEO of the quango and hold her to blame for failure to use resources well, failure to manage staff well or failure to deliver sufficient quality and quantity of care. It is so much easier for all concerned to blame the Minister and blame a lack of money, which of course suits the Opposition in Parliament . As a result we do not get the alleged advantages of independent management, but we do get plenty of extra cost from pretending some of the time that we have this independence  and  that it is better than the people in the department doing the job.

I find it bizarre that the government does not have an answer to this question which it can share with the rest of us. Given the high numbers of migrants welcomed into our country in recent years, it has taken considerable investment in social housing, primary and secondary schools, new surgeries and other capacity to accommodate them. The EU last decade suggested a figure of around 250,000 Euro for the set up and capital support costs for new arrivals, given the need for homes and good quality public services.

 

The Home Office has provided the following answer to your written parliamentary question (92052):

Question:
To ask the Secretary of State for the Home Department, if she will make an estimate of the average capital cost of providing (a) housing, (b) school places, (c) health services and (d) transport capacity for a new migrant family. (92052)

Tabled on: 21 November 2022

This question was grouped with the following question(s) for answer:

1. To ask the Secretary of State for the Home Department, if she will make an estimate of the average cost to the public purse of providing (a) housing, (b) benefits and (c) public service capacity for a new migrant who takes a job below the average wage in their first year in the UK. (92051)
   Tabled on: 21 November 2022

Answer:
Robert Jenrick:

The Home Office does not hold this information.

The answer was submitted on 29 Nov 2022 at 15:46.