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Annual Report 2003-04



Review of the Year


INTRODUCTION



1. The theme of last year's Annual Report was change. In particular, new working practices arising from the report of a Leader's Group were introduced from the start of session 2002­03 in November 2002 for a trial period of two years; and, pursuant to a separate report on management and services, the new Management Board was set up in October 2002, with a new domestic committee structure from the start of session 2002­03. While this year might have been expected to be one of consolidation of the new arrangements, in June 2003 the Government announced proposals for further significant constitutional changes affecting the House, described in the following section. In the event, progress on these changes has been slower than originally expected, and none has yet been implemented.

CONSTITUTIONAL REFORM

House of Lords reform

2. The votes in both Houses on 4 February 2003 on House of Lords reform were recorded in the last Annual Report (paragraphs 48 and 49). As noted in paragraph 50 of that Report, the Joint Committee on House of Lords Reform went on to make a Second Report,3 published on 9 May 2003, identifying the area of consensus that had been achieved and areas where further work needed to be done (on the issues of the remaining hereditary peers, the appointments system, and such matters as the size and conditions of tenure of the House). The Report concluded: "We look forward to a reply from Government within the customary two months and then acceptance by both Houses that our work should continue on the lines we have set out."

3. The Government's reply was made in July 2003 and published in a Special Report from the Joint Committee.4 The Joint Committee considered the reply in the autumn of 2003, and in November published an exchange of letters with the Lord Chancellor, Lord Falconer of Thoroton, in which it was stated that a majority of the Committee agreed that a successor committee should be appointed in the new session.

4. Meanwhile, on 18 September 2003,5 the Government announced proposals, in the absence of agreement on more substantial reform of the House of Lords, to remove the remaining 92 hereditary peers from the membership of the House, together with certain other changes (the setting up of a statutory appointments commission, disqualification of Members sentenced to imprisonment for a year or more, and the introduction of a facility for Members to resign their seats). The bill to implement these changes was to have been introduced in the House of Commons in March 2004, but just before the planned date of introduction the Government announced that it had decided not to proceed in the present Parliament. Nor has a successor committee on House of Lords reform been appointed.

The Lord Chancellor and a new supreme court

5. In a Cabinet reshuffle announced on 12 June 2003, Lord Falconer of Thoroton replaced Lord Irvine of Lairg as Lord Chancellor. Lord Falconer was also appointed as Secretary of State for Constitutional Affairs as well as Lord Chancellor, supported by a new Department for Constitutional Affairs, subsuming the former Lord Chancellor's Department. It was announced at the same time that there was to be a new supreme court, separated from the House of Lords; new arrangements for judicial appointments; and an end to the previous role of the Lord Chancellor as a judge and Speaker of the House of Lords. Once the reforms were in place, the post of Lord Chancellor would be abolished.

6. In relation to the speakership of the House of Lords the then Leader of the House, Lord Williams of Mostyn, conducted informal soundings and, on 25 June 2003, announced that a select committee would be appointed. The Select Committee on the Speakership of the House, under the chairmanship of Lord Lloyd of Berwick, was appointed in July 2003 and reported in November 2003. It recommended that the House should elect a speaker, whose title might be "Lord Speaker", with a greater role than the Lord Chancellor has in relation to the House but no significant powers such as those exercised by the Speaker of the House of Commons ­ the House's tradition of self-regulation would continue.

7. No immediate action was taken on the Committee's Report, and the Lord Chancellor is still continuing to act as Speaker of the House.

8. The Constitutional Reform Bill [HL], setting up a supreme court and enacting other reforms in relation to the Lord Chancellor and judicial appointments, was introduced in the House of Lords in February 2004. On 8 March 2004 the House voted, by 216 votes to 183, to refer the Bill to a select committee. The select committee was appointed on 22 March 2004, with terms of reference requiring it to report by 24 June 2004. At the same time, the House agreed to a motion authorising the carry-over of the Bill if it did not complete all its stages in the current session.6 The select committee on the Bill, chaired by Lord Richard, duly reported on 24 June 2004, and the Bill was re-committed to a Committee of the whole House.

9. The Bill envisages that the present law lords would become the first members of the new supreme court, but that they
(and other Lords who were judges) would be disqualified from sitting in the House while serving as judges.The timing of the implementation of this reform may depend on more than just the enactment of the bill, as in the first half of 2004 the identification of a suitable building to house the new supreme court became a matter of controversy. At the time of completing this Report the choice had been narrowed down to two possible sites but no decision had been made.

10. So, despite the emergence of several Government proposals since mid-2003, the composition, judicial functions and speakership of the House seem likely to remain as they are until some time after the next general election, expected to be held in 2005.
 
    



Portraits commissioned by the Works of Art Committee: Lord Mackay of Clashfern, Lord Chancellor 1987–97, by Norman Edgar (left), and Lord Irvine of Lairg, Lord Chancellor 1997–2003, by James Lloyd (right).



Working practices

11. Last year's Annual Report recorded (paragraphs 1 to 3) significant changes in working practices introduced from November 2002 for a trial period of two sessions, together with agreement to set up a Merits of Statutory Instruments Committee with effect from the beginning of session 2003­04. Shortly after the end of the year, on 26 May 2004, the Leader of the House announced the appointment of a Leader's Group of ten Members under her chairmanship to "review the procedural changes agreed by the House in July 2002 and to make recommendations to the Procedure Committee for their retention, modification or reversal, with any associated changes. The review will include September sittings, but not the terms of reference of the Merits of Statutory Instruments Committee (because these are to be reviewed separately after the first year), nor matters relating to the Speakership of the House."7 The Group is due to report in September 2004 with a view to the Procedure Committee considering its recommendations in October and decisions being made by the House in November in time for any changes to take effect at the start of the new session.

12. Separately from the other changes in working practices, the House agreed8 (on a division) "That it is the opinion of this House that, subject to the requirements of business, in 2003 the Summer Recess should begin not later than the middle of July and the House should sit for two weeks in September." Accordingly the House rose for the summer recess on Friday 18 July and sat between Monday 8 September and Thursday 18 September, then adjourning until Monday 6 October.

13. On 8 December 20039 the House agreed to a similar pattern of sittings for 2004, but by a much smaller majority: 122­114, as against 160­76 in relation to 2003. In 2004 it is intended (subject to the progress of business) that the House should rise on Thursday 22 July, sit from Tuesday 7 September to Thursday 16 September, and then adjourn until Monday 11 October.

14. The new working practices begun in November 2002 included the bringing forward of the start of Thursday sittings from 3 p.m. to 11 a.m., but with a break between about 1.30 p.m. and 3.00 p.m., and Starred Questions taken at 3.00 p.m. Sittings were expected to end by 7.30 p.m. unless there was an unstarred question, lasting up to 11/2 hours, in which case the sitting might continue until 9 p.m. This arrangement was reviewed by the Procedure Committee, which issued a questionnaire seeking the views of Members. Of 368 Members who responded, 200 favoured a change to an arrangement whereby Starred Questions would be taken at the beginning of business at 11.00 a.m. The Procedure Committee recommended the adoption of this arrangement, with the sitting normally finishing by 7 p.m.10 The change was agreed to by the House on 17 December 2003 and implemented from the start of 2004. The Procedure Committee recommended that there should, when appropriate, be a one-hour break at about 1.30 p.m., during which it should be possible to take an unstarred question limited to one hour, or other business. That recommendation was agreed to on a division, 152­122.11


The Leader of the House, Baroness Amos, at the Despatch Box.

15. It was noted in last year's Annual Report (paragraph 2) that in practice the House had not always risen by the target time of 10 p.m. on Mondays, Tuesdays and Wednesdays. That remained the case in 2003/04. The House sat for over 63 hours after 10 p.m., sitting until 10.30 p.m. or later on 36 occasions. The longest sitting, on 20 October 2003, ended at 4.54 a.m.

16. In January 2004, following a recommendation by the Procedure Committee, the House followed the House of Commons in providing for Written Ministerial Statements to be published in Hansard, in place of "planted" Questions for Written Answer.

Business of the House

General

17. The House sat on 165 days during the year, for a total of 1180 hours, as against 160 days and 1150 hours in 2002/03. Thus the average length of sitting (7 hours 9 minutes in 2003/04, 7 hours 11 minutes in 2002/03) was not significantly affected by the introduction in November 2002 of the new convention on rising times referred to in paragraph 15.



18. There was a sharp increase in the number of divisions. There were 235 divisions during the year, of which 87 resulted in Government defeats.

19. Details of debates which took place in session 2002­03 appear in the booklet The work of the House of Lords.

Legislation

20. The increase in sitting hours of the House took place despite a substantial increase in the use of Grand Committees: 63 days of Grand Committee sittings totalling 225 hours, as against 30 days and 102 hours in 2002/03. The figures in Appendix E, Part B, show that the House spent some 57 hours more than in the previous year considering legislation in the Chamber.

21. The spillover at the end of the 2002­03 session was a particularly busy period, with proceedings on seven major Government bills still in progress until the last days of the session. Agreement on two bills (Criminal Justice and Health and Social Care) was reached only on the last day of the session.

22. Further details of the bills considered in the 2002­03 session may be found in the booklet The work of the
House of Lords
.

23. As has become usual in recent years, few private bills came before the House. Four received Royal Assent during the year. During the year one bill, the Mersey Tunnels Bill, was the subject of a Select Committee hearing. The Committee met for two days in March 2004 to consider one petition against the Bill, and concluded that the Bill should proceed without amendment subject to undertakings to be given by the promoters.

24. The new Merits of Statutory Instruments Committee was appointed in December 2003, under the chairmanship of Lord Hunt of Kings Heath. The Committee made a Special Report in April 200412 to inform the House of its preliminary conclusions on its working methods. From the beginning of April 2004 the Committee began reporting weekly on statutory instruments. The Committee expected that its principal contribution to the effective scrutiny of delegated legislation by the House would be in identifying negative instruments deserving debate, but indicated that it would also draw attention to those affirmative instruments which would be of considerable interest to the House.

25. The Delegated Powers and Regulatory Reform Committee continued under the chairmanship of Lord Dahrendorf. It made 25 reports during the year. Its 1st Report, Session 2003­04,13 contained a report on the work of the Committee in sessions 2001­02 and 2002­03.

Committees


26. In June 2003 the Liaison Committee recommended14 that the European Union Committee should appoint an additional (seventh) sub-committee from the start of session 2003­04. The new sub-committee structure is as follows:

Sub-Committee A: Economic and Financial Affairs, Trade and International Relations
Sub-Committee B: Internal Market
Sub-Committee C: Foreign Affairs, Defence and Development Policy
Sub-Committee D: Environment and Agriculture
Sub-Committee E: Law and Institutions
Sub-Committee F: Home Affairs
Sub-Committee G: Social Policy and Consumer Affairs

27. Lord Grenfell continued as Chairman of the Committee. In November 2003 the Committee made for the first time an annual report,15 with the purposes of reviewing the substantive policy work of the Committee over the previous year; giving a flavour of some of the work the Committee intended to undertake over the coming year, subject to the need also to respond to events; and to give an account of procedural and administrative changes, together with a foretaste of matters which the Committee would be taking up.









Members of the Science and Technology Committee visiting Antarctica in January 2004 to study the work of scientists.

28. The Committee made 50 Reports in session 2002/03, 13 of which analysed in detail the texts of the draft Constitutional Treaty as they emerged. Others included reports on Comitology (which won an award for clarity from the European Information Association); the European Central Bank; the Financial Services Action Plan; relations with both the US and with Russia; Waste Management; the Common Fisheries Policy; and the European Border guard. A full list appears in The work of the House of Lords.

29. The Science and Technology Committee continued under the chairmanship of Lord Oxburgh. It published a report on Fighting Infection16, prepared by Sub-Committee I, chaired by Lord Soulsby of Swaffham Prior, and a follow-up report on Chips for Everything.17

30. During the year the Constitution Committee, chaired by Lord Norton of Louth, made reports on six bills, on the draft Constitution for the European Union, and on a meeting held with the Lord Chancellor to discuss the constitutional changes referred to in paragraphs 4 to 10 above. The Committee also published an annual report on its work in session 2002­03.18

31. Lord Peston continued as Chairman of the Economic Affairs Committee. The new Finance Bill Sub-Committee of the Committee was set up for the first time in 2003 under Lord Peston's chairmanship. Its Report on the Finance Bill was made in June 2003.19 It was reconstituted in February 2004, again with Lord Peston as Chairman.

32. In addition, in November 2003 the Committee made a report on Aspects of the Economics of an Ageing Population.20

33. The Joint Committee on Human Rights, chaired by Jean Corston MP, made 21 Reports during the year. In addition to reports on legislation and draft legislation, the Committee made reports on the case for a Children's Commissioner for England,21 the UN Convention on the Rights of the Child,22 the work of the Northern Ireland Human Rights Commission,23 and the meaning of "public authority" under the Human Rights Act.24 The Committee made one Report on a remedial order under the Human Rights Act 1998, the Naval Discipline Act 1957 (Remedial) Order 2004.25

Pre-legislative scrutiny

34. Just before the start of the year, a joint select committee was appointed to consider a draft Corruption Bill. It met for the first time on 24 March 2003, and appointed Lord Slynn of Hadley as Chairman. The Committee reported in July 2003.26

35. In July 2003 two further joint select committees were appointed to consider draft bills. The Joint Committee on the draft Mental Incapacity Bill, chaired by Lord Carter, and the Joint Committee on the draft Civil Contingencies Bill, both reported in November 2003.27

36. A further pre-legislation scrutiny joint committee, to consider a draft Gambling Bill, was appointed in September 2003. It reported in March 2004.28 The Committee proposed in its report that it should be reappointed to make a further report in relation to casino developments, on which a decision by the Department for Culture, Media and Sport was awaited when the Committee reported. The Committee was accordingly reappointed in June 2004.

37. Finally, a joint committee was appointed in January 2004 to consider a draft Disability Discrimination Bill. The Committee, again chaired by Lord Carter, reported in April 2004.29

38. The Committee on Religious Offences in England and Wales, set up in 2002 under the chairmanship of Viscount Colville of Culross, reported in May 2003.30 In view of the appointment of the pre-legislative scrutiny committees referred to above, no successor committee was appointed immediately.

39. In November 2003 the Liaison Committee recommended the appointment of a select committee to consider the Patient (Assisted Dying) Bill. The purpose of the bill, originally introduced by Lord Joffe in session 2002­03 and given a second reading in June 2003, is to allow competent terminally ill patients to request assistance to die. The Liaison Committee originally recommended that the Committee should begin its work after the Easter recess 2004. The Bill was reintroduced in the 2003­04 session and given a second reading and committed to a select committee on 10 March 2004. The Committee was appointed on 31 March, with Lord Mackay of Clashfern as Chairman, but in view of the fact that the resources to support the Committee were by then needed for the Select Committee on the Constitutional Reform Bill [HL], the order setting up the Committee fixed 7 July 2004 as the date of the first meeting.

MEMBERSHIP OF THE HOUSE

New Members

40. Last year's Annual Report noted that, apart from the appointment of one Lord of Appeal in Ordinary, only
two life peerages had been created between 1 April 2002 and 31 March 2003 ­ the lowest number since the Life Peerages Act 1958. The position was little changed in 2003­04, with only three new creations under that Act. In June 2003 life peerages were conferred on Lord Boyce (formerly Chief of the Defence Staff) and Lord Cullen of Whitekirk (Lord President of the Court of Session), and in January 2004 Lord Triesman was created a life peer and appointed as a Lord in Waiting (Government whip). Three new Lords of Appeal in Ordinary were appointed in January 2004. These included the first woman Lord of Appeal in Ordinary, Baroness Hale of Richmond. The others were Lord Carswell (previously Lord Chief Justice of Northern Ireland) and Lord Brown of Eaton-under-Heywood (like Baroness Hale of Richmond, previously a member of the Court of Appeal).



41. After the end of the year, on 1 May 2004, the first list of new life peerages since 2001 was announced. It comprised 46 names. Of these, seven were put forward by the House of Lords Appointments Commission, two were former holders of high offices nominated by the Prime Minister, and 37 were party nominations.

By-elections

42. Last year's Annual Report recorded the holding, in March 2003, of the first by-election under the provisions of the House of Lords Act 1999. In that by-election Viscount Ullswater was elected to succeed the late Viscount of Oxfuird. Because Lord Oxfuird was one of the fifteen hereditary peers elected by the whole House in 1999, the electorate for the by-election comprised the whole House. A second by-election took place during 2003­04, consequential on the death on 20 August 2003 of Lord Milner of Leeds, one of two hereditary peers elected in 1999 by the Labour hereditary peers. For this by-election the electorate comprised the remaining three Labour hereditary peers (two of them being among the fifteen elected by the whole House). There were eleven candidates, and the successful candidate was Lord Grantchester.

43. The death on 28 February 2004 of Lord Vivian, one of the 42 hereditary peers elected in 1999 by the Conservative hereditary peers, meant that a further by-election was pending at the end of the year. For that by-election the electorate comprised the 48 remaining Conservative hereditary peers. The ballot was conducted by post, using the alternative vote system adopted for the first by-election, and the result was announced on 13 May. There were 37 candidates, and the successful candidate was Viscount Trenchard.

Deaths of Members

44. The House was shocked and saddened by the sudden death on 20 September 2003 of Lord Williams of Mostyn, Leader of the House since 2001.

45. In June 2003 the House agreed to a recommendation by the Procedure Committee that, with effect from the summer recess 2003, all deaths of Members should be recorded in the Minutes of Proceedings. The following deaths were accordingly recorded, up to the end of March 2004:

Lord Blake (20th September 2003)
Lord Williams of Mostyn (20th September 2003)
Lord Rayne (10th October 2003)
Lord Walker of Doncaster (11th November 2003)
Lord Wallace of Coslany (11th November 2003)
Lord Hardy of Wath (16th December 2003)
Lord Dormand of Easington (18th December 2003)
Lord Islwyn (19th December 2003)
Lord Gallacher (4th January 2004)
Baroness Pike (11th January 2004)
Lord Jenkins of Putney (26th January 2004)
Lord Scanlon (27th January 2004)
Lord Bullock (2nd February 2004)
Lord Constantine of Stanmore (13th February 2004)
Lord Vivian (28th February 2004)
Lord Hobhouse of Woodborough (15th March 2004)

46. In July 2001 the House agreed to establish a new Code of Conduct to take effect from 31 March 2002. It was agreed that the new Code should be reviewed after eighteen months of operation. The Committee for Privileges accordingly considered the matter in October 2003 and asked its Sub-Committee on Lords' Interests to undertake a review.

47. The Sub-Committee's report was endorsed by the Committee and published just after the end of the year.31 It noted that there had been almost no complaints about non-compliance, and recommended that the Code should be allowed to settle down for a period of years before changes were considered.

48. Last year's Annual Report described the changes in the domestic committees introduced from the start of session 2002­03. Those arrangements have continued throughout the period of this Annual Report.

49. The House Committee made three reports to the House during the year. Its 3rd Report, Session 2002­03, set out arrangements whereby from 1 April 2003 Members could claim reimbursement of travel and subsistence costs for up to two visits per year on parliamentary business to the EU institutions or to the national parliament of an EU state or candidate country.

50. Its 4th Report, Session 2002­03, reported the Committee's agreement to the Annual Report for 2002­03 and to the first House of Lords Business Plan; and agreed that the category of Members' Expenses previously called "Secretarial Costs etc." should be renamed "Office Costs", more accurately reflecting the relevant resolutions of the House and the types of expenses claimable.

51. Its 5th Report, Session 2002­03 (4 November 2003) followed up its earlier recommendation32 that details relating to Members' claims for expenses should be published, with effect from late 2004, to meet the requirements of the Freedom of Information Act 2000. It made detailed recommendations about the information to be published annually. The information to be published initially will be that relating to the financial years 2001/02, 2002/03 and 2003/04.

52. Sir Michael Davies retired as Clerk of the Parliaments in July 2003 and there were consequential changes in the composition of the Management Board, first established in October 2002.

Sir Michael was succeeded by Paul Hayter, formerly Clerk Assistant, who accordingly became Chairman of the Management Board. His responsibility as Board Member responsible for Parliamentary Services passed to his successor as Clerk Assistant, Michael Pownall. Pownall was succeeded as Principal Finance Officer by Edward Ollard, previously Establishment Officer, who became the first Principal Finance Officer to hold that position on a full-time basis. Mr Ollard's place as the Board member responsible for human resources was taken by Philippa Tudor, on return from a two-year secondment as Head of the Parliamentary and Constitutional Division of the Scotland Office. Mr Hayter's previous responsibility as Board member responsible for Information Services passed to Mr Pownall's successor as Reading Clerk, David Beamish, who also retained his former position as Clerk of the Journals.

53. Two of the original members of the Board, Sir Michael Willcocks (Black Rod) and Rhodri Walters (Clerk of Committees), continued in post.

54. There were 442 staff of the House (including part-time staff) at 31 March 2004, as against 413 at 31 March 2003. Altogether 73 new staff were recruited during the year. Details of the staff complement at 31 March 2004 are given in Appendix H, and details of changes in complement and grading in Appendix J.


55. Cash provision for Members' expenses and general administration costs in 2003/04 was £45,210,575. Cash expenditure totalled £41,395,753.

56. The administration net cash requirement for 2004/05 was set by the House Committee at £48,781,692.

57. Cash provision for works services in 2003/04 was £23,335,400. Cash expenditure was £19,721,230.

58. The works services net cash requirement for 2004/05 was set by the House Committee at £27,927,005.

59. A detailed breakdown of cash expenditure over the period 2000/01 to 2004/05 is given in Appendix F.


The Management Board: from left to right, Michael Pownall, Sir Michael Willcocks, David Beamish, Paul Hayter, Edward Ollard, Rhodri Walters, Philippa Tudor.




3 HL Paper 97, session 2002-03.
4 HL Paper 155, session 2002-03.
5 HL Deb. col. 1057.
6 HL Deb., 22 March 2004, cols 468-72.
Portraits commissioned by the Works of Art Committee: Lord Mackay of Clashfern, Lord Chancellor 1987­97, by Norman Edgar (left), and Lord Irvine of Lairg, Lord Chancellor 1997­2003, by James Lloyd (right).
7 HL Deb. col. WS53.
8 HL Deb., 25 November 2002, cols 565-82.
9 HL Deb. cols 553-64 and 622.
10 1st Report, session 2003-04, HL Paper 6.
11 HL Deb., 17 December 2003, col. 1167.
The Leader of the House, Baroness Amos, at the Despatch Box.
12 3rd Report, session 2003-04 (HL Paper 73).
13 HL Paper 9, session 2003-04.
14 2nd Report, session 2002-03, 23 June 2003 (HL Paper 126).
15 44th Report, session 2002-03 (HL Paper 191).
16 4th Report, session 2002-03 (HL Paper 138).
17 1st Report, session 2003-04 (HL Paper 15).
18 2nd Report. session 2003-04 (HL Paper 19).
19 3rd Report, session 2002-03 (HL Paper 121).
20 4th Report, session 2002-03 (HL Paper 179).
21 9th Report, session 2002-03 (HL Paper 96).
22 10th Report, session 2002-03 (HL Paper 117).
23 14th Report, session 2002-03 (HL Paper 132).
24 7th Report, session 2003-04 (HL Paper 39).
25 9th Report, session 2003-04 (HL Paper 59).
26 HL Paper 157, session 2002-03.
27 The Report from the Joint Committee on the draft Mental Incapacity Bill was published as HL Paper 189, session 2002-03. The Report from the Joint Committee on the draft Civil Contingencies Bill (chaired by Lewis Moonie MP) was published as HL Paper 184, session 2002-03.
28 HL Paper 63, session 2003-04. The Chairman was John Greenway MP.
29 HL Paper 82, session 2003-04.
30 See the Annual Report for 2002/03, paragraph 58.
31 1st Report from the Committee for Privileges, session 2003-04, 5 April 2004 (HL Paper 69).
32 1st Report, session 2002-03 (HL Paper 19).
The Management Board: from left to right, Michael Pownall, Sir Michael Willcocks, David Beamish, Paul Hayter, Edward Ollard, Rhodri Walters, Philippa Tudor.




 
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