TheHouse Magazine

Thrill of the chase


By Margaret Hodge MP
- 24th December 2010

William Gladstone once said that the duties of the Public Accounts Committee were of ‘a dry and repulsive kind.’ I don’t believe he really meant it. After all, only a few days before he uttered those words, he had himself moved the motion establishing the Committee. On the contrary, what a close examination of Hansard in 1861 shows is that he was actually trying to downplay the pleasures of the new Committee, as he struggled to defuse anger among Scottish and Irish MPs, not one of whom had been appointed to its ranks.

One hundred and fifty years later, and five months into the job as Chair, I can honestly say that, for me, the PAC is proving to be one of the liveliest, wide-ranging and potentially hard-hitting committees on which I have ever served.

We meet twice a week and usually consider a different report by the National Audit Office at each session. The focus is always value for money – the value the Executive achieves with the taxpayers’ money it spends; and sadly, all too often, the waste it presides over. Members of the committee may come from different political stables, but we are united in our determination to seek better efficiency and effectiveness.

We only started work in July, but our priorities are becoming clear. For us, the most important will always be holding the government to account rigorously for every pound it spends. This is the first time committee chairs and their members have been elected, which gives us extra clout to do our job more effectively on behalf of Parliament.

Given our remit, this is a hugely important time for this particular select committee with the planned £81bn cut in public spending. In addition, specific major reforms affecting how public money is spent are underway in a number of departments, most notably Health.

Every politician, of every political persuasion, wants to ensure that every part of government ekes out efficiency savings before they start cutting frontline services. Our task is to be vigilant to judge whether that happens. So, when the expenditure cuts are implemented we will monitor them closely to ensure they meet the principles and objectives the government has set for itself, but also that they do not lead to costly unintended consequences.

We will always work closely with the National Audit Office and most of our inquiries arise from NAO value for money studies. But we are a creature of Parliament. That is why I am seeking some changes in the Standing Orders that govern the PAC which would enable us to appoint our own advisers and thus give us the capability to pursue our own inquiries.

The PAC looks across government in a way that other committees can’t. I want us to use that breadth of vision to explore new dimensions to our work. We need to look at obvious themes like procurement or information technology and come to conclusions as to how well government performs across departments, highlighting good practice as well as identifying areas in need of improvement. And as the government starts to consider new ways of working, like increasing the use of means testing, we can look at the existing experience of means testing and draw out key lessons for the future.

More generally, we want to be a committee that celebrates achievements as well as highlighting failures. For instance, I’m pleased that, as our recent hearing shows, the previous government’s Academies Programme for schools has successfully raised educational standards for children living in deprived areas. Our most famous former Chair, Harold Wilson, once said that the PAC was ‘the only blood sport which is sanctioned by Parliament.’ What I want to say is that we will continue to hunt out incompetence when hunting is required, but we will try never to engage in hunting for hunting’s sake.

One of the disheartening observations after the first few months, however, is how often similar findings emerge in different studies. I want us to get better at ensuring that key recommendations are acted on so that the work we do really does make a difference. So we will spend time checking that departments have acted, and, when they do not, we will bring senior civil servants back before us to explain why.

All the members of PAC are hardworking and enthusiastic. They bring a wealth of knowledge and experience to the committee. I am confident that our work together will not just strengthen the government’s accountability to Parliament and the public, but will help the government raise their game during these tough times for public spending.

Margaret Hodge MP is chair of the public accounts committee

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