Draft House of Lords Reform Bill

Baroness Royall of Blaisdon Excerpts

Tuesday 1st May 2012 Lords Chamber

[Lord Tyler]

My Lords, I do not think that the draft Bill is perfect, but I think it will be improved by the work of the Joint Committee. Pre-legislative scrutiny, which this House believes in, has been undertaken manfully and womanfully by the committee headed by the noble Lord, Lord Richard. However, I suspect that he, too, shares with me some surprise at the way in which our conclusions have been interpreted or even misinterpreted.

I was here until the early hours of the morning. I was the only member of the Joint Committee still able to be upright, and to avoid repetition I will concentrate on just two issues that are media myths. The first is cost. I have studied the alternative report with care, and while I differ with various conclusions I respect the integrity and conviction with which the authors argue their case or cases. However, they should have been more careful when it came to using figures on potential costs. For example, it is ridiculous to use costs that were clearly speculative 10 months ago. The noble Lord, Lord Lipsey, who is now in his place, has been perfectly open and honest that he prepared those cockshy estimates many months ago when the Joint Committee was not even set up and had not reported. I am therefore very sad that those figures have been used.

First, let me reiterate what the Joint Committee recommended. We unanimously agreed that the independent assessment of salaries and allowances should be left to IPSA, not to the Government, let alone to the present House of Lords. By emphasising that new Members, whether elected or appointed, need not be full-time parliamentarians, we discouraged IPSA from suggesting a full-time salary. I suspect that the appropriate answer may well be a part-time salary, perhaps half that of an MP’s. Members of your Lordships’ House who have been MPs know how hard they work. They of course have to work when Parliament is not sitting in a way that we do not.

More importantly, this package will no longer be tax-free, as the present allowances are. It would be reasonable to expect a very modest net salary figure for year one for the 150 new members—120 elected, 30 appointed—who will replace the departing 92 hereditaries. Without a definitive figure for the number of life Peers retiring—the Joint Committee makes recommendations that are more ambitious than the government Bill—it is too early to estimate the savings on the present generous daily allowances, but obviously that, too, will be substantial. The estimated figure—

[Baroness Royall of Blaisdon]

My Lords, the noble Lord, Lord Tyler, criticised my noble friend Lord Lipsey because he did not have at his disposal all the facts relating to the costs of the new Chamber. Yet the noble Lord, Lord Tyler, does not have all the facts at his disposal either. If the Government had come forward with costings when the report went to Joint Committee, we would not be having this muddled discussion now.

[Lord Tyler]

I hear what the noble Baroness says, but these are the conclusions of the unanimous report in this respect. It is just that I, rather than the Government, am interpreting it. The noble Lord, Lord Richard, and other members of the Joint Committee agree with what I am saying about the recommendations of the Joint Committee. That is all I am doing. I am not blaming the noble Lord, Lord Lipsey. He prepared his figures long before the Joint Committee sat, let alone made its recommendations.

I am trying to keep within my time limit. Many other noble Lords have gone over it, but I will try to make progress. We specifically advised against the funding of any but the most minimal staff to undertake parliamentary duties, so the staffing figure of £31 million is just pie in the sky. Finally, since it is recommended that the election of the new Members would be at the same time as the 2015 general election polling day, the extra cost would obviously be marginal. Of course, the cost of not reforming your Lordships’ House, with more appointments to re-balance the party numbers and with the allowances doubling in every decade, would be phenomenal. If we retain the present membership of the House and it is increased by re-balancing, those tax-free allowances would go through the roof. Would that be good value for taxpayers’ money in this period of austerity?

The noble Lord, Lord Lipsey, has generously—