Lord Wallace of Saltaire (LD)
My Lords, this debate raises a large number of questions. Let me try to answer as many as I can. I start by saying that the Government remain committed to thorough reform and the creation of an elected House. This is part of the reason why we resist proposals to end by-elections of hereditary Peers. I was here when that particular concession was made by the then leader of the Conservative Peers, now the Marquess of Salisbury, on the basis that it would remain until thorough reform took place.
The Government are committed to thorough reform. However, we now have a number of proposals which I have heard described as housekeeping proposals, which are on an interim basis. We recognise that there will not be another attempt at House of Lords reform until well after the next election, when I look forward to seeing a commitment to an elected second Chamber appearing once again in all of the party manifestos. Having said that, we have to recognise that there are some real problems in the House.
The noble Lord, Lord Foulkes, disappointed me enormously in his speech. I looked forward to him saying that we must tackle the question of retirement age, a topic on which I thought he was intervening the other day. I recognise that at the core of much of this are the difficulty of a retirement age or of encouraging retirement, and the balance of the groups within the House.
When I joined the House, now some 17 years ago, I was told that by entering the House of Lords I was raising my life expectancy by a further two years. It is such an interesting place and it keeps us lively and fit. As I sat listening today I reflected that, if I decide that I really ought to take permanent leave of absence when I am 95, I have only 23 more years of service to go. I will then have served in the House for 40 years. We recognise the problem of keeping the House lively and renewing membership.
Incidentally, there is also the problem of different age balances among the different party groups. The Conservatives are the oldest group in terms of appointments, because many of them were appointed in the Thatcher years. Particularly when I talk to some of the older Labour Peers, I am conscious that the reluctance to retire of those on both the Labour and the Conservative Benches is sometimes expressed in terms of, “I would be letting my side down if I retired but some of them didn’t. We would alter the age balance against us”. Anything we talk about in relation to retirements feeds back into the question of party balance. I remind the noble Lord, Lord Hunt, that it is not just the party groups who vote in this House. We have a very active group of Cross- Benchers. I will check on the incidence of votes lost in this Parliament compared to votes lost in the last Parliament. I was not aware that there was a substantial difference in the number of votes lost. In the Bills that I have dealt with, the concessions which one must make in order to avoid votes being lost, and the number of votes lost, are certainly important matters. I give way.
Lord Cormack
My Lords, I am sorry to intervene, but does my noble friend really believe that the House of Lords should have a significant majority on the government Benches?
Lord Wallace of Saltaire
My Lords, this is for the first time a coalition Government and part of the issue is whether you count the entire coalition of both parties as one or as two. The Government do not have an overall majority in this House because we have a large number of Cross-Benchers. If I may say so, one of the first things I learnt when I entered this House was that if you want to defeat the Government, what you need is a speaker from each of the four main groups, because at that point the Government will recognise that they are about to lose. The noble Lord, Lord Cormack, is occasionally very good at being part of those groups which challenge his own Government. That is the way the House of Lords behaves.
Lord Hunt of Kings Heath
With respect, my Lords, there is one Government and the numbers are clearly added together in your Lordships’ House. I should like to put a question to the Minister. What would happen in 2015 if the Labour Party were to win the general election with a majority? It would be faced with a majority of 100 Conservative and Lib Dem Peers over the Labour group in your Lordships’ House. There would then be a dissolution list, to which I assume both Mr Cameron and Mr Clegg would contribute. What advice would the noble Lord give to a Labour Government about the number of Peers they should appoint?
Lord Wallace of Saltaire
My Lords, we are getting into very difficult constitutional questions here. Again, I have heard discussions about this among some of my noble friends. A Labour Party that wins a majority of seats in the House of Commons on perhaps 35% of the vote and a 60% turnout raises the question of whether that is really a majority or not.
Lord Lea of Crondall
I am sorry to press the point, but is that not precisely the doctrine of the coalition agreement—the formula should reflect the results of the last general election—or is it only to suit this particular Government at this particular moment in time?
Lord Wallace of Saltaire
My Lords, it is that in new appointments, one should head in that direction. I speak for a party which received no nominations to this House for several years under Mrs Thatcher’s Conservative Government. Let me say—
Lord Wallace of Saltaire
We need some quiet discussions among the parties and I am glad to hear people suggesting that what we need is another committee. I am sure that the noble Lord, Lord Hunt, would love to serve on another committee looking at some aspects of Lords reform; he has a great appetite for it.
Lord Wallace of Saltaire
What we are talking about is not just the size of the House; we also have to recognise the issue of attendance at the House. It is the rise in the number of those who expect that appointment means regular attendance, and in some cases we have made a rod for our own back by making appointments, particularly of Cross-Benchers, who are asked whether they will be regular attenders. Our percentage of attenders among the Members has been steadily rising and continues to do so.
Lord Foulkes of Cumnock
I thank the Minister for giving way again. That brings us back to our exchange on the Floor of the House the other day. All of these new Members are going to be working Peers. They will attend regularly. They will receive their attendance allowance and they will need offices and all the other facilities. That, we are told by the Clerk of the Parliaments and others, has to be done within a no-growth budget. How is that possible?
Lord Wallace of Saltaire
My Lords, the question of the overall size of the House brings me to my next point, which is that of retirement.
Lord Foulkes of Cumnock
The noble Lord is not answering my question. How is it possible for this to be done within a no-growth budget? We are getting another 60 extra Peers.
Lord Wallace of Saltaire
My Lords, retirement is essential to this because unless we are going to have a House that grows older gracefully and has very little renewal, we have to have a scheme that encourages retirement. The House has been getting older. After 17 years I have just passed the average age of the House. We need good new Members because we do not entirely want to be a House that represents the wisdom of 25 years ago, and therefore we need to address the question of retirement. I have had one or two conversations with older Peers who have suggested that a more dignified retirement arrangement, in which the House recognises the service of those Members who are retiring, would be of very considerable assistance to them. I am willing to take that back and, indeed, I have already discussed it with the Leader of the House. I think that it is something which we should all attempt to progress as best we can.
On a financial leaving package, let me simply say to the noble Lord, Lord Norton, that we receive allowances in this House; we are not paid. Most of us, the noble Lord, Lord Norton, and me included, have pensions. I think that I can guess what the size of his academic pension will be when he retires. I had a discussion with an older Labour Peer who said that I did not understand how working-class people like him would survive without their allowances. I reminded him sharply that I knew roughly what his academic pension was, and that if he could not survive on a professorial pension there was a real problem.
Lord Norton of Louth
My point had nothing to do with pensions because there is no salary, so it was not premised on that—that was the analogy that I was drawing with House of Commons. The resettlement grant has absolutely nothing to do with pensions.
Lord Wallace of Saltaire
My Lords, let me simply say, because time is short, that service in this House is a privilege which we should not expect to have to be bought out of. That is the view which I and a number of others hold. The Government remain unconvinced that we should attempt to buy older Peers out. I recognise that there is a substantial problem which older Peers think about in terms of party balance. I think that it is also the recognition issue that we are concerned about and very much want to continue.
The noble Baroness, Lady Hayman, asked whether the Government would respond to the PCRC’s proposals for all-party talks. We will certainly respond to that report.
Lord Norton of Louth
Before my noble friend leaves his previous point, is he saying that service in the House of Commons is not a privilege?
Lord Wallace of Saltaire
My Lords, Members of the House of Commons earn their keep and are much more often in the prime of life. Most of us who come here have earned our salaries elsewhere and have pensions from elsewhere. That is part of the distinction that I am making.
Lord Wallace of Saltaire
My Lords, the noble Earl, Lord Sandwich, asked about human resources. My noble friend Lord Gardiner remarked that that is partly because Cross-Benchers do not have Whips. Whips in this House see themselves not as enforcers but as very much a human resources department for their own party groups.
Lord Wallace of Saltaire
I take that response as a deep vote of confidence in the consultative role and psychological support which Whips provide.
We will of course take back all the points made in this Committee. The Government are willing to give a fair wind to the Dan Byles Bill, which I hope will come to this House in good time and provide for some of the housekeeping measures which noble Lords are calling for. We hope that that will assist. We will take further the question of providing dignified recognition for those who wish to take permanent leave of absence for the service which they have given to this House—and some of them, earlier than that, to the other House. However, I am very sorry that I cannot entirely provide the reassurance that some noble Lords are looking for in terms of a financial retirement scheme.