Draft Regulatory Reform (Museum of London) (Location of Premises) Order 2004

Transcription

1 HOUSE OF LORDS Delegated Powers and Regulatory Reform Committee 22nd Report of Session Draft Regulatory Reform (Museum of London) (Location of Premises) Order 2004 Ordered to be printed 23 June and published 25 June 2004 London : The Stationery Office Limited price HL Paper 122

2 The Select Committee on Delegated Powers and Regulatory Reform The Delegated Powers and Regulatory Reform Committee is appointed by the House of Lords in each session with the orders of reference to report whether the provisions of any bill inappropriately delegate legislative power, or whether they subject the exercise of legislative power to an inappropriate level of parliamentary scrutiny; to report on documents and draft orders laid before Parliament under the Regulatory Reform Act 2001; and to perform, in respect of such documents and orders and subordinate provisions orders laid under that Act, the functions performed in respect of other instruments by the Joint Committee on Statutory Instruments. Current Membership The Members of the Delegated Powers and Regulatory Reform Select Committee are: Lord Brooke of Sutton Mandeville Baroness Carnegy of Lour Lord Dahrendorf (Chairman) Lord Desai Lord Harrison Lord Mayhew of Twysden Lord Temple-Morris Lord Tombs Lord Wigoder Publications The Committee s reports are published by The Stationery Office by Order of the House. All publications of the Committee are on the internet at General Information General information about the House of Lords and its Committees, including guidance to witnesses, details of current inquiries and forthcoming meetings is on the internet at Contacts for the Delegated Powers and Regulatory Reform Committee If you have any queries regarding the Committee and its work, please contact the Clerk to the Delegated Powers and Regulatory Reform Committee, Delegated Legislation Office, House of Lords, London, SW1A 0PW. The telephone number is /3233. The fax number is The Committee s address is dprr@parliament.uk Historical Note In February 1992, the Select Committee on the Work of the House, under the chairmanship of Lord Jellicoe, noted that in recent years there has been considerable disquiet over the problem of wide and sometimes ill-defined order-making powers which give Ministers unlimited discretion (Session , HL Paper 35 I, para 133). The Jellicoe Committee recommended the establishment of a delegated powers scrutiny committee in the House of Lords which would, it suggested, be well suited to the revising function of the House. As a result, the Select Committee on the Scrutiny of Delegated Powers was appointed in the following session, initially as an experiment for a limited period. It was established as a sessional committee from the beginning of Session Also in Session , following the passage of the Deregulation and Contracting Out Act 1994, the Committee was given the additional role of scrutinising deregulation proposals under that Act. As a result, the name of the committee was changed to the Select Committee on Delegated Powers and Deregulation. In April 2001, the Regulatory Reform Act 2001 was passed which expanded the application of the deregulation order-making power under the 1994 Act, and the Committee was took on the scrutiny of regulatory reform proposals under the Act. With the passage of the 2001 Act, the committee s name was further amended to its present form, the Select Committee on Delegated Powers and Regulatory Reform.

3 Twenty-second Report DRAFT REGULATORY REFORM (MUSEUM OF LONDON) (LOCATION OF PREMISES) ORDER The Committee considered this draft order in our 18th Report of this Session (HL Paper 98). We concluded that the order was in a form satisfactory to be submitted to the House for affirmative resolution. 2. The Committee has now received a letter from Estelle Morris MP, Minister of State at the Department for Culture, Media and Sport (DCMS)(printed in the Annex to this Report) in which it is explained that the cost savings resulting from the order are likely to be significantly lower than originally projected. The savings for the period December 2003 to March 2006 were originally put at just under 1.5 million; the revised figure is just under 120,000. The difference between these figures is significant, but savings were only one factor in our consideration of the order. We remain of the view, therefore, that the order should be submitted to the House for affirmative resolution. 3. We thank the Minister for informing us of this error in the Statement accompanying the (first-stage) proposal for this draft order. We hope that DCMS and other Government Departments will take steps to ensure that such errors will not occur in the future.

4 DELEGATED POWERS AND REGULATORY REFORM COMMITTEE 2 ANNEX Letter from the Rt Hon Estelle Morris MP, Minister of State for the Arts at the Department for Culture, Media and Sport, to the Chairman I am writing to you to inform you of a change to cost savings originally projected for the Regulatory Reform (Museum of London) (Location of Premises) Order 2004 and to ask for your consent that we proceed with the Order. The Museum of London (MoL) informed my officials at the end of May that the savings figures they provided for the Regulatory Impact Assessment were lower than first thought. Officials then pressed the museum for revised figures, which were provided on 11 June. I attach the original and revised costings. [see below] While the difference in cost savings seems large, this was not the basis for the additional resource allocation provided by my Department to the MoL and has no material effect on the affordability of the merger. The MoL have assured my officials in writing that their funds are sufficient to take over and maintain the MiD. I also attach this written assurance. As you have approved the Order based on the original figures that were provided, I consider it right to point this issue out to your committee, before proceeding with having the Order made. I would be grateful for your consent to continue with this Order. I have also written to Peter Pike (Chairman of the Regulatory Reform Committee) to ensure his committee is content for us to proceed. 23 June 2004 Letter from Professor Jack Lohman, Director of the Museum of London, to the Department for Culture, Media and Sport Museum of London RRO debate I write in connection with our recent revision to the savings figures that were included in the Consultation Paper issued on 15 July A separate paper has been sent to Tim McCullagh detailing the reasons for the revision. Although the savings are considerably less than originally forecast, there is no reason for pessimism about the status of the Museum in Docklands. As you are aware, the Museum of London took over the administration of the Museum in Docklands on March 2003 and successfully opened the Museum to the public in May of that year. Over 12,000 visitors attended the launch event. The Museum has been widely praised and has received very positive feedback from visitors. Despite this, the visitor figures have been lower than were anticipated in the business plan produced in October 2002, on which I understand the Consultation Paper was based. Just over 100,000 visitors came to the Museum in its first year of operation. The shortfall in visitors adversely affected retail income. Large reductions in staff were proposed in the Consultation Paper, but it has become clear after a year of operation that not all those posts could be cut without a detrimental effect on income streams, and that a focus on building up visitor numbers and developing alternative income streams is what is required. In addition, transitional costs, especially in

5 DELEGATED POWERS AND REGULATORY REFORM COMMITTEE 3 the area of financial systems and reporting, have partly offset the administrative savings made. Despite the above, and the difficult trading position with lower than anticipated visitor numbers, the Museum of London has been able to finance the Museum in Docklands for 2003/04, its first year of operation, at a net cost of 94,000, which is within the Museum of London s overall budget. A net cost of 71,000 is budgeted for support to MiD in 2004/05, again sustainable within our overall allocation, and a number of initiatives are underway with the object of making the Museum in Docklands self-financing in the future: A full time fundraiser has been appointed and started work in May His first task has been to develop a corporate membership scheme, which is being launched next month. The Museum is in the process of concluding a 10-year agreement with the Trustees of the Sainsbury Archive to house and provide access to the Sainsbury Archive. This will generate an annual contribution towards the overhead costs of the Museum, as well as providing funds to enhance its library and archives generally. Plans are in hand to relocate the Museum shop to place it within the entrance area where it will be more obvious and attractive to visitors, as well as freeing up the existing space occupied by the shop for commercial use. Opportunities for the use of this space are currently being explored. An active programme of marketing the Museum to schools has produced improved numbers and bookings in 2004/5 which will also benefit retail sales income. Improved signage installed this month is improving visitor numbers. The newly appointed Director of the Museum in Docklands, David Spence, takes up his post on 1 July and will be focussing on developing the Museum to its full potential. It is a mark of how much has already been achieved in the first year of operation, that the Museum has been nominated as one of the contenders for European Museum of the Year. The process of developing the audience for and the various income streams of the Museum in Docklands will undoubtedly take us longer than was previously anticipated, but the Museum of London is able to sustain the operation of the Museum in Docklands within its overall allocation in the immediate future. 21 June 2004

6 DELEGATED POWERS AND REGULATORY REFORM COMMITTEE 4 Analysis of cost savings achieved through Regulatory Reform Order TOTAL 1. Reduced cost of maintaining separate charitable company (3 months) Board secretarial based on cost of MoL 17,450 69,800 69, ,050 Main Board Audit Committee Remuneration and Terms of Service Committee Finance and General Purposes Committee External audit and Statutory returns based on cost of MoL (less audit cost of MoLAS) 15,000 15,375 15,759 46,134 Internal audit based on cost of MoL 5,250 21,000 21,000 47, Cost reduction driven by staff positions being combined with MoL staff Costs per Museum in Docklands option appraisal 37, , , ,434 Director 60,850 62,371 63, ,152 Secretary 21,636 22,177 22,731 66,544 Development and Marketing Assistant 18,030 18,481 18,943 55,454 Director of Finance and Administration 39,553 40,542 41, ,650 Accounts Assistant 24,040 24,641 25,257 73,938 Head of Public Programmes 45,638 46,779 47, ,365 Commercial Manager 30,050 30,801 31,571 92,423 IT Systems Technician (50%) 12,020 12,321 12,629 36, , , , , Care and storage of collections 150, , , ,000 Total 439, , ,125 1,474,929

7 DELEGATED POWERS AND REGULATORY REFORM COMMITTEE 5 Revision of cost savings achievable through merger of MoL and MiD Savings originally forecast Dec 2003 March 2006 (27 months) Revised forecast December 2003 March 2006 Estimated annual savings from March 2005 Board secretarial 157,050 5,000 5,000 External audit and statutory returns 46,134 7,500 7,500 Internal audit 47, Staff costs: Director 187, Secretary 66,544 3,462 0 Development & Marketing Assistant Director of Finance & Administration 55, ,650 65,050 37,000 Accounts Assistant 73,938 38,000 11,700 Head of Public Programmes 140, Commercial Manager 92, IT Systems Technician 50% Care & Storage of Collections 36, , Total 1,474, ,012 61,200