Notification of financial difficulties and criminal conduct

Part of National Citizen Service Bill [Lords] – in a Public Bill Committee at 10:30 am on 24 January 2017.

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Photo of Rob Wilson Rob Wilson The Parliamentary Under-Secretary of State for Culture, Media and Sport 10:30, 24 January 2017

I am delighted to be a Minister who is making stunning progress; I hope that carries on for a long time to come. Clause 7 would require the trust to notify the Government promptly if any NCS provider falls into serious financial difficulty, or is in breach of contract with serious consequences for the trust. The Government must also be notified if a member of staff of the trust or an NCS provider commits fraud or is in breach of their employment contract with serious consequences for the trust, or is the subject of a police investigation in which the allegation of criminal conduct could have serious consequences for the trust.

The trust is the central commissioning body for NCS. It currently contracts directly with nine providers that cover 19 defined regions. Those organisations then contract and work with hundreds of local providers. The trust sits in the middle of a huge operation, and the Government need to know of serious issues that could have either financial or reputational consequences for NCS.

The clause aims to be proportionate. If one of the trust’s key providers breached its contract with serious consequences for the trust, the Government would need to be informed. It may be that the negotiations between the two organisations affect the trust’s ability to carry out its primary functions. The earlier the Government are informed, the better we are able to take contingency action. However, the NCS Trust also has relationships with many organisations and suppliers that are not NCS providers. It would not be necessary for the Government to know if, for example, one of the smaller suppliers went into administration. That would not have a direct or seriously negative effect on NCS.

In the case of criminal conduct, Government action may not be direct. Where an individual has committed a crime, it is always the police that should be informed, but the Government should be informed if an allegation against a person or group of people could impact directly on the NCS programme. The trust must be legally responsible for alerting the Government and working collaboratively with the Government to resolve matters as they arise.

The NCS Trust has excellent relationships with its providers. It has grown NCS at pace while ensuring that it is a quality, carefully organised programme that works well across England. The Bill is designed to put the trust on a secure, stable footing, to ensure that it can work efficiently, effectively and transparently. Clause 7 is a necessary part of the Bill.