Select Committee on Culture, Media and Sport Sixth Report


THE DEPARTMENT FOR CULTURE, MEDIA AND SPORT AND ITS QUANGOS

IV. A MORE STRATEGIC APPROACH?

(i) Coming out from the shadow

32. The broad thrust of the Department's new approach to its relationship with its quangos has been based on a division between strategy and tactics. The Department sees itself, in the words of Mr Smith, as "setting the broad principles, the framework, the direction within which a body should operate".[101] The detail of delivery within that framework should then be a matter for the quango. This should have two advantages: first, it should assist the quango in its work; second, it should clear the minds and desks of Ministers and officials to enable them to carry out the tasks which are properly for a Department of State. Mr Smith believed that this was now happening: the Department for Culture, Media and Sport "is coming out from the shadow of its NDPBs and giving strategic leadership, demonstrating the benefits of having these seemingly disparate elements in one Department and making a real contribution to the delivery of Government policy".[102]

(ii) The Arts Council of England

33. The benefits of this new approach are apparent in the relationship between the Department and the Arts Council of England. The overall objectives for the Department appear highly relevant to and compatible with the work of the Arts Council. In addition, the Department has set out ten goals for the arts, each of which is supported by the Arts Council. Performance targets for that body are clearly linked to these ten goals.[103] Mr Robinson and Mr Hewitt appeared to be genuinely enthused by the challenge of these goals, relating, for example, to combatting social exclusion and promoting regeneration.[104]

(iii) English tourism bodies

34. One advantage which Mr Smith attributed to the Department's more strategic approach was "demonstrating the benefits of having these seemingly disparate elements in one Department".[105] Last year we commented on the apparent low priority given to tourism by the Department among these disparate elements, despite its great size as an industry, its economic importance now and the even greater economic and employment importance foreseen for it in the future.[106] This year we examined the impact of the Comprehensive Spending Review, the associated reorganisation of English tourism bodies and the Tourism Strategy on the Department's management of tourism.

35. The Tourism Society argued that tourism as a business was different in nature from other sectors which the Department for Culture, Media and Sport sponsored.[107] Both Mrs Elizabeth Jeffreys, the Society's Chairwoman, and Mr Graham Wason, the Vice-Chairman, felt that tourism would benefit from sponsorship by the Department of Trade and Industry, although the Society's members were divided on the matter.[108] Councillor Bob Harris of the Local Government Association thought that there was a "synergy" between tourism and other areas for which the Department for Culture, Media and Sport was responsible, "a fundamental relationship between tourism and the product that tourists wish to see".[109] Mr Smith also argued that tourism was driven to a considerable extent by these other sectors: museums and galleries; the performing arts; the built heritage; film; and sport.[110] This point was reinforced by others, including Mr David Quarmby, Chairman of the English Tourist Board, especially in relation to overseas visitors.[111] Ministerial responsibility for tourism in the past has been the victim of a game of pass the parcel.[112] We see no justification for the game to be resumed.

36. However, the Department for Culture, Media and Sport has to provide a continuing justification for its sponsorship of this major industry through its achievements, particularly in four areas: strategic leadership for the sector; management of sponsored bodies; encouragement of links between tourism and other sectors which the Department sponsors; and promotion of tourism in dealings with other Government Departments.

37. As we have already noted in the context of the Arts Council, the effectiveness of quangos depends to a considerable extent on the capacity of the Department to provide clear leadership and establish a framework within which quangos operate. We have not considered the content of the Tourism Strategy in detail as part of the current inquiry, but it is evident that it does help to provide a vision and a framework for tourism and tourist bodies in this country.[113] The Tourism Society, although it thought that the Strategy had shortcomings, welcomed much of its content and the consultation process which preceded it.[114] Mrs Jeffreys considered that "this Government has done more to put tourism on the agenda than any other Government previously".[115] Councillor John Price, Chairman of the Local Government Association's Tourism Panel, said that the Association was "delighted to see the new Strategy".[116]

38. The Department is changing non-departmental structures better to deliver its strategy. In recent years, in the views of some, the Department has had a tendency to encroach on the responsibilities of the English Tourism Board. According to the Tourism Society, the Department has undertaken tasks which were previously for the Board and "this active involvement of the Department in tourism activities has led to confusion over the role of the former English Tourist Board and tension between the Department and the Board, exacerbated by regular cuts in Board funding".[117] The Board itself makes a similar point in more diplomatic terms. Of the arm's length principle, it states that "in a period of major change ... the arm has of necessity to become shorter ... In order to ensure that the English Tourist Board can adapt as quickly and effectively as possible to reflect Ministerial objectives, the working relationship has had to become much closer than would usually be necessary or appropriate."[118]

39. The establishment of the English Tourism Council in place of the English Tourist Board is expected to lead to the resumption of a more typical arm's length relationship.[119] The concentration of the new body on strategic leadership for the industry and on driving delivery of the national strategy should enable greater clarity about the division of labour between the Council and the Department.[120] The Council should have a greater range of skills at its disposal, including expertise on transport and sustainability, enabling it to contribute more effectively to the wider Government agenda.[121] The Tourism Society suggested that the new body had been designed more by reference to the needs of Government than with a focus on the customer.[122] It remains to be seen whether the strategic gains within Government will off-set the loss of a clearly identified national marketing arm for English tourism.[123]

40. The third test for the Department's management of tourism will be its effectiveness in developing relations between tourism and other sectors within the Department's remit. The Tourism Forum, whose membership included representatives of English Heritage, Historic Royal Palaces, the Arts Council of England, the Museums and Galleries Commission and the United Kingdom Sports Council, represented a step forward in this regard.[124] The English Tourist Board confirmed that there was continuing liaison with other quangos and with bodies such as the National Trust, but that each contact "tends to be on a project and subject basis" rather than on a general basis.[125] We note that one of the tasks for the English Tourism Council in its proposed Funding Agreement is to re-launch the Tourism Forum.[126] We consider that more should be done to promote links between the tourism quangos and other sectors for which the Department for Culture, Media and Sport is responsible, such as the arts, heritage and sport. We recommend that measurable progress in developing such links form part of future Funding Agreements for the English Tourism Council and the British Tourist Authority.

41. The performance of the Department and its tourism quangos will also depend upon forging effective relationships across Government. The Department has stated: "we want to ensure that the full potential of the tourism industry is understood and that its concerns and characteristics are taken into account in all relevant policy decisions".[127] Tourism is interwoven with many other fields of Government policy, such as transport, regeneration, taxation and environmental sustainability.[128] We have already noted that the English Tourism Council is expected to contribute more effectively than its predecessor body to this broader agenda. The Tourism Summit, involving Ministers from a number of Government departments and senior figures from tourism, which is planned to take place in the year 2000, is a welcome recognition of this theme at Departmental level.[129]

42. However, the most important relationship for the Department for Culture, Media and Sport within Government remains that with the Treasury. We are concerned at evidence that the Department for Culture, Media and Sport apparently continues to be a less effective advocate for funding of tourism quangos than its counterparts in Scotland and Wales. Funding of domestic tourism in England is the equivalent of 20 pence per head of population; the grant-in-aid to the Scottish Tourist Board is the equivalent of £3.77 per head of population; that for the Wales Tourist Board is the equivalent of £4.03 per head of population.[130] Mr Quarmby said that he explained to Ministers "what we could do if extra funds were provided and how more value could be delivered to the industry if there were more funds available".[131] We recommend that the Department for Culture, Media and Sport undertake and publish a thorough analysis of the benefits which could arise from additional investment in the English Tourism Council, linked to performance indicators and measures of outcome, well in advance of the next Comprehensive Spending Review.

(iv) English Heritage

43. The more strategic approach adopted by the Department for Culture, Media and Sport, based on broad objectives and sector-specific goals and frameworks, appears to have brought greater clarity to relationships between the Department and its arts and tourism quangos. However, we received much evidence questioning whether the same benefit was apparent in the case of English Heritage.

44. A historic weakness in this regard was perceived by English Heritage itself:

English Heritage viewed the outcome of the Comprehensive Spending Review as a potential step forward in this regard.[133] Others were more sceptical. The Victorian Society said that, despite the stated aim of the Department to concentrate on strategic leadership, "there is no sign that, for the heritage, the Department has any strategic leadership to offer".[134] Mr David Baker of the Council for British Archaeology felt that the Government lacked an "over-arching perception of what is needed for the conservation of the historic environment".[135] The Garden History Society suggested that the historic environment remained "marginal to the Department's core business of arts, museums and sport".[136] The National Trust also felt that the built heritage was "not receiving a high enough profile" from the Department.[137] It attributed the low profile to a lack of political will.[138]

45. In the view of some, this low profile was exemplified by the lack of explicit reference to conservation of the built environment in the Department's objectives. Mr Matthew Saunders of the Joint Committee of the National Amenity Societies thought the omission was "extraordinary".[139] English Heritage itself had expressed its concern to the Department about the absence of an explicit commitment in the Department's objectives to the conservation of cultural assets inherited from the past.[140]

46. Responding to these concerns, Mr Smith referred to the following objective of the Department to

    "broaden access for this and future generations to a rich and varied cultural and sporting life and to our distinctive built environment".[141]

Mr Smith said that the inclusion of the phrase "and future generations" was intended to refer to the conservation of the built heritage.[142] He indicated, however, that he would be "happy to consider" a fuller reference to conservation in objectives set out in future Annual Reports.[143]

47. The evidence we have received suggests that such a change would be worthwhile. Indeed, there is a strong case for a more thorough review of heritage policy by the Department. There are several reasons why such a review ought to consider heritage policy in the context of wider Government policies. First, heritage can make a significant contribution to regeneration and, in this context, there is a good case for a clearer relationship between English Heritage and the Department of the Environment, Transport and the Regions, as the Urban Task Force has recently recommended.[144] Ms Pam Alexander, Chief Executive of English Heritage, indicated that English Heritage was not necessarily seen by the Department of the Environment, Transport and the Regions "as an important player".[145] It should be the responsibility of the Department for Culture, Media and Sport to develop a heritage strategy which demonstrates to all relevant Government departments the contribution which English Heritage and other heritage agencies can make to regeneration.

48. Second, it was suggested that the Department for Culture, Media and Sport needs to tackle more thoroughly the balance between access and sustainability in the heritage field.[146] The Church Heritage Forum observed:

    "A properly integrated national strategy for the built heritage needs to deal with any potential conflict between the strategic themes of the Department for Culture, Media and Sport, including the laudable aim of promoting access by the many not the few, and the overarching concept of sustainability as fostered by the Department of the Environment, Transport and the Regions and the local planning system".[147]

It is for the Department for Culture, Media and Sport to send clear signals to English Heritage and others about priorities in resolving any tensions between access and environmental sustainability. Environmental appraisal should form an integral part of the formulation of a new heritage strategy.[148]

49. In our Report on the Heritage Lottery Fund we recommended that the Government "should now accept its central role as the formulator of a national heritage strategy".[149] National heritage strategy is beyond the remit of either English Heritage or the Heritage Lottery Fund. A strategy must examine the historic environment as a whole and not just those parts of it for which English Heritage is responsible, a point made by the Institute of Leisure and Amenity Management.[150] For example, we would expect the strategy to examine areas such as urban parks and the preservation of historic ships which do not fall readily within the remit of any existing quangos.[151]

50. Mr Saunders envisaged that a heritage strategy would be the result of a consultative process involving quangos and other organisations, but also said that "in the end it can only be ... the Secretary of State and the Ministry with its overall view which can devise that strategy".[152] In this context, the Tourism Forum and the Strategy which followed may serve as a useful precedent. We recommend that the Department for Culture, Media and Sport establish a Heritage Forum to develop a new heritage strategy. This body should be established in close cooperation with the Department of the Environment, Transport and the Regions to ensure that integrated consideration is given to the relationship of heritage policy to urban and rural regeneration and to environmental sustainability. We would expect the Heritage Forum to contribute to the early establishment of objectives for the Department for Culture, Media and Sport which make explicit reference to the conservation of cultural assets inherited from the past.

51. The Institute of Leisure and Amenity Management implied that the absence of a clear heritage strategy in Government reduced the value of the Funding Agreement with English Heritage. There were no clear heritage objectives to "cascade" from the Department to the quango.[153] The duties of English Heritage are laid down in statute, just as the aims of the Arts Council of England are set out in its Royal Charter.[154] However, while the latter organisation has been set clear goals by the Department in its Funding Agreement, the former has not. The formulation of clearly identified goals for the Government in the heritage field and a statement of the role of English Heritage in meeting those goals should form part of the outcome of the work of the Heritage Forum the establishment of which we have recommended.

52. The Funding Agreement for English Heritage states that its grant allocations will be as follows:

Table: Grant-in-aid Funding for English Heritage, 1999-2001

Year

1999-2000

2000-01

2001-02

£ million

114.86

114.09

112.74

Source: Funding Agreement between the Department for Culture, Media and Sport and English Heritage 1999, para 5.1.

This fall in support in cash as well as real terms caused particular concern to the National Trust and the Joint Committee of the National Amenity Societies because it comes at a time when the Department's overall resources are increasing. The concentration of the benefits from the increase in overall resources on the arts and on museums and galleries was felt to be disproportionate.[155]

53. One of the measures by which Government will judge the success of the Department for Culture, Media and Sport in meeting its aims and objectives is the "proportion of buildings removed from the Buildings at Risk register".[156] The Funding Agreement between the Department and English Heritage requires the latter to "introduce a new target for annually removing sites from the Buildings at Risk register".[157] Ms Alexander estimated that it "will cost £400 million in public subsidy to bridge the gap for the 1,600 Grade I and Grade II* buildings" on the 1999 Buildings at Risk register.[158] In 1998-99, £5 million of the £13.3 million offered by English Heritage through its secular building grants programme was targeted to properties on the register; at least a third of spending on secular buildings and monuments will be focused on such properties over the three years of the Funding Agreement.[159]

54. There are many factors affecting the preservation of listed buildings, including those on the Buildings at Risk register, in addition to the level of grants by English Heritage. Initial responsibility for the care of a listed building lies with the owner. In the case of about one in five buildings at risk, the attitude of owners is problematic.[160] There is a danger that grants by English Heritage can reward neglect.[161] Principal responsibility for the enforcement of planning regulations on owners lies with the local planning authority; the effectiveness of local authorities in exercising their powers is a crucial determinant of the fate of buildings at risk.[162] We recommend that, in advance of the next Comprehensive Spending Review, the Department for Culture, Media and Sport, the Department of the Environment, Transport and the Regions and English Heritage undertake a joint study on the factors affecting the effectiveness of the maintenance of Grade I and Grade II* listed buildings and of the enforcement of listed building regulations, with particular reference to buildings at risk, to inform future funding and target setting.


101  Q 320. Back

102  Q 319. Back

103  Evidence, p 67; Funding Agreement between the Department for Culture, Media and Sport and the Arts Council of England 1999, para 5 and passimBack

104  QQ 231-235. Back

105  Q 319. Back

106  HC (1997-98) 742, para 8. On the economic value of tourism, see Evidence, p 21 and QQ 22, 75. Back

107  QQ 2, 33. Back

108  Q 14. Back

109  Q 71. Back

110  Q 324. Back

111  QQ 29-30, 32, 90-91. Back

112  Q 19. Back

113  Tomorrow's Tourism: A growth industry for the new Millennium, Department for Culture, Media and Sport, February 1999. Back

114  Evidence, pp 1, 2. Back

115  Q 39. Back

116  Q 54. Back

117  Evidence, p 2. Back

118  Evidence, p 24. Back

119  IbidBack

120  Evidence, pp 22, 90. Back

121  QQ 76, 96. Back

122  QQ 2-3. Back

123  QQ 23, 43, 67. Back

124  Tomorrow's Tourism, p 69. Back

125  Q 94. Back

126  Establishing a new National Body for Tourism in England: Report and Action Plan, April 1999, Annex 9. Back

127  Tomorrow's Tourism, p 13. Back

128  Ibid; Evidence, p 1; QQ 17, 31, 38-39, 77. Back

129  Tomorrow's Tourism, p 68. Back

130  Evidence, p 23. Back

131  Q 99. Back

132  Evidence, p 50. Back

133  Q 170; Evidence, p 50. Back

134  Evidence, p 107. Back

135  Q 141. Back

136  Evidence, p 109. Back

137  QQ 102, 125. Back

138  Q 121. Back

139  Evidence, p 39; QQ 137, 141. Back

140  Evidence, p 51. Back

141  Cm 4213, p 17. Back

142  Q 322. Back

143  Q 323. Back

144  Evidence, pp 39, 110; Q 162; Towards an Urban Renaissance: Final Report of the Urban Task Force Chaired by Lord Rogers of Riverside, p 252. Back

145  Q 172. Back

146  Evidence, p 30; Q 101. Back

147  Evidence, p 149. Back

148  On the record of the Department for Culture, Media and Sport with regard to sustainable development, see Sixth Report from the Environmental Audit Committee, The Greening Government Initiative, HC (1998-99) 426-I, paras 16, 33, 34, 51, 53, 55-57. Back

149  HC (1998-99) 195-I, para 20. Back

150  Evidence, pp 113-117. Back

151  On parks, see Evidence, pp 109, 113, 115 and QQ 353-354. On historic ships, see Second Report from the Culture, Media and Sport Committee, The Preservation of HMS Cavalier, HC (1998-99) 196, para 10. Back

152  Q 159. Back

153  Evidence, p 114. Back

154  Evidence, pp 49, 67. Back

155  Evidence, pp 30, 40; Q 140. Back

156  The Government's Measures of Success: Output and Performance Analyses, HM Treasury, March 1999, p 83. Back

157  Funding Agreement between the Department for Culture, Media and Sport and English Heritage 1999, p 4. Back

158  Q 163. Back

159  Evidence, p 54. Back

160  Evidence, p 39; Buildings at Risk Register 1999, English Heritage, June 1999, p xiv. Back

161  Evidence, pp 40, 128. Back

162  QQ 142, 143, 146, 178-179; Evidence, p 124; Buildings at Risk: A New Strategy, English Heritage, 1998, pp 22-23. Back


 
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