Professional Standards in the Banking Industry

Debate between Bernard Jenkin and Damian Collins

Thursday 5th July 2012 Commons Chamber

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

The hon. Member for Birmingham, Hall Green (Mr Godsiff) has underlined the importance of having a banking system that commands public confidence. I do not know how serious the LIBOR scandal is in relation to the ability of the banks to support jobs and growth, which we so desperately need at the moment, but it is clearly a mortal blow to the reputation of the City so we need to deal with it effectively and quickly.

I say to Front Benchers on both sides in this debate that this has not been the finest hour of the House of Commons. We have not seen the finest, highest and most principled leadership from Front Benchers of either side. Many among the public will look at the debate and scoff at our self-importance and arrogance. The City itself will be in utter despair that Front Benchers should have chosen to use this opportunity to tear chunks out of each other instead of co-operating to find a solution on which they can agree.

No solution will work unless there is consensus. I say that with a very heavy heart, having great respect for the prodigious abilities of both my right hon. Friend the Chancellor and the shadow Chancellor, as well as for their public service in the House. But I really think that we have to do better. Anybody could have seen over the past few days that the debate would be a complete car crash, and so it has been. We must seek to extract something positive from it at the end of the day.

My hon. Friend the Member for Chichester (Mr Tyrie) raised the tone of the debate in a laudable manner. He referred to the Marconi scandal of 1912; this is its 100th anniversary, and I will say a few words about it soon if I have time. The parallels are chilling.

First, I shall say a brief word about the powers of Select Committees. The shadow Chancellor is completely wrong—we have the powers. There is some doubt about the manner of their exercise and how we might deal with contempt, but there is no doubt that we have the powers. As Chairman of a Select Committee, I have exercised them. People are in fear of them. It does the House no service for the shadow Chancellor to go around saying that we do not have powers. That undermines the authority of the House and it is not in the interests of the House.

[Damian Collins]

I am closely following my hon. Friend’s argument. Is not the Standards and Privileges Committee currently looking at the sanction for contempt of Parliament?

[Mr Jenkin]

Actually, it is the Liaison Committee on which I serve as a Select Committee Chairman. I am personally looking into the matter and will report to the Liaison Committee next week; that will be part of our report on the powers and effectiveness of Select Committees, which we hope to produce before the end of this term. It greatly ill serves the House to denigrate the powers of Select Committees.

I am going to support the Government motion. I am not in favour of a judicial inquiry; I think it would be completely dotty to plunge us into such a lengthy procedure. However, I want to sound some warnings about the dangers that might befall a parliamentary Select Committee inquiry as proposed in the Government motion. We must be mindful, not least, that if Ministers or ex-Ministers were to be called to give evidence to try to sort out the absurd row that we have seen this afternoon, the Committee could not possibly function. Indeed, it could not possibly function if Opposition Front Benchers were determined to undermine its authority and operation.

It was highly irresponsible of the shadow Chancellor to fail to answer my question or that of my right hon. Friend the Chancellor about whether the Opposition will go on non-speaks if the motion is carried. I commend the hon. Member for Dundee East (Stewart Hosie), who said that even if the Opposition lose the vote, Scottish National party Members will co-operate with the inquiry. How is the House meant to make a judgment about whether to vote for the motion unless we have a clear view from the shadow Chancellor?

My hon. Friend the Member for Chichester mentioned the Marconi scandal. That occurred when Ministers—Liberal Democrat Ministers, I hasten to add, just for fun—were accused of buying and selling shares for profit—

Ministerial Code (Culture Secretary)

Debate between Bernard Jenkin and Damian Collins

Wednesday 13th June 2012 Commons Chamber

[Mr Jenkin]

I would very much like that. This is not a difficult recommendation for the Government to accept. No legislation is required. The Prime Minister could simply accept it and implement it.

We are still waiting for the Government’s response to our report. The previous Government declined to take up the recommendation, explaining that

“it must ultimately be for the Prime Minister to account to Parliament for his decisions and actions in relation to the appointment of his Ministers”.

So the Opposition have no one but themselves to blame for the fact that they have had to table this motion today.

Why would it be desirable for the independent adviser to decide what to investigate without waiting for a referral from the Prime Minister? The expectation that that should be the case is generated by the official job title. It is hard to see how any adviser on Ministers’ interests can be deemed to be independent if he is unable to investigate prima facie breaches of the ministerial code without the permission of the Prime Minister. It is only his independence from Government that can provide the necessary assurance that Ministers, including the Prime Minister, will be held objectively and impartially to the standards of the ministerial code. If we deprive him of his independence by depriving him of his initiative, we remove the assurance that we want the public to have.

Above all, it is surely beneficial for Prime Ministers to be absolved of the invidious duty of deciding whether or not to refer potential breaches to the independent adviser. With that responsibility comes a great deal of controversy and public opprobrium. A Prime Minister is damned if he does and damned if he does not. Either he condemns his colleague by referring him, placing him under immediate pressure to resign, or he condemns himself, because it looks as though he is protecting someone from proper scrutiny. I wonder whether, if the Prime Minister had referred this matter to the independent adviser immediately, the Secretary of State would already have been investigated for any breach of the ministerial code by now, and exonerated. This situation places the Secretary of State in an invidious position.

[Damian Collins (Folkestone and Hythe) (Con)]

I am following my hon. Friend’s argument carefully. Does he agree that the Opposition cannot have it both ways? They cannot spend weeks running around saying that Sir Alex Allan should investigate this matter, and then, when he says that he cannot add any more, say that he is not really independent and should not investigate the matter anyway.

[Mr Jenkin]

I will come to that point. It is ironic that the hon. Member for Newport West describes Sir Alex Allan as a poodle. That is not what we said in our report, incidentally. We were concerned about the manner of his appointment, and about whether it was appropriate for a recently retired civil servant to take that role, because he would not be seen as independent. We did not say that he was not fit to fulfil the role.