Paid Directorships and Consultancies (MPs)

Debate between Jon Trickett and Lindsay Hoyle

Wednesday 17th July 2013 Commons Chamber

[Jon Trickett]

The House needs to adapt its culture—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The hon. Gentleman has made it clear that he is not going to take interventions at the moment. [Hon. Members: “Shame.”] No, it is up to the hon. Gentleman. I will decide whether it is a shame or not. He said that he will give way shortly. What we also do not need is a Whip on the Opposition Front Bench trying to antagonise Government Members.

[Jon Trickett]

Thank you, Mr Deputy Speaker. I will give way in a moment or two.

Apart from the pressure on our time, there is another issue: the deteriorating reputation of politics in the mind of the public. We all know, for whatever reason, that the public perception of our role as law-makers and public representatives has sunk in recent times to an all-time low, and we need to address that. No single reform on its own can restore the trust that we need to rebuild, but better regulation of second jobs would clearly help. Here is one reason why. [Interruption.] I will explain why if the Leader of the House can be patient for just one second. He has to hear the argument before he can rebut it. Here is a reason why that can help. The issue relates to the problem of perception—I use that word carefully—of potential conflict of interest. Our primary loyalty as right hon. and hon. Members is to promote the common good for our country and our constituents, rather than our personal, private interests.

I am not suggesting for one moment that any right hon. or hon. Member is allowing the pursuit of private interest to interfere with their duty to the wider public interest, but I am suggesting that there is a widespread perception that that is the case. In politics, as we know, perception is just as important as reality.

--- Later in debate ---

[Jon Trickett]

Let me say first that I note that the hon. Lady did not refer to the primary point, which is whether Government Members support reform. As regards the question of whether Ministers are somehow operating a private interest, that is a preposterous argument. Ministers work for the Crown on behalf of the public, because we live in a democratic society. For anybody to suggest that Ministers or a Prime Minister are somehow working for their private interests is a preposterous argument. I hope that when she reflects, she understands that that is the case.

If we stop to reflect for an instant, it is easy to understand how the perception I was describing might develop. The House will know that anyone who becomes a director of a company board, or consultant to a company, has a fiduciary duty—a legally defined concept—to that company. [Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. We have already had the Opposition Whips intervening. I do not need the Government Whips leading the march of opposition.

[Jon Trickett]

Fiduciary duty requires the person who sits on a board, or who is a consultant to a company, to act in the best financial interests of that company. MPs swear an oath of loyalty to the country and to their constituents. Let me illustrate the problem as I see it. Were an MP to find themselves on the board of, or be a consultant to, a tobacco company—to take an example at random—they would be bound by a fiduciary duty to pursue the financial interests of that tobacco company. Let us imagine proposed legislation to improve public health, which would be damaging to the interests of the tobacco industry, being introduced in the House of Commons. The perception of a conflict of interest would arise in the public’s mind. An explanation would have to be sought on the way an MP chose to vote, particularly if the remuneration received—as is the case for some hon. Members—is two or three times greater than the remuneration they receive as an MP. The public’s perception would lead to only one conclusion.

It is in order to tackle this problem that my right hon. Friend the Member for Doncaster North (Edward Miliband) has taken decisive action. From 2015, all Labour MPs will be banned from having directorships or consultancies for third-party commercial interests. I hope that other party leaders will see the sense of what we are proposing and move in the same direction.

Points of Order

Debate between Jon Trickett and Lindsay Hoyle

Thursday 9th September 2010 Commons Chamber

[Jon Trickett (Hemsworth) (Lab)]

On a point of order, Mr Deputy Speaker. A few moments ago, in response to my question about Royal Mail, the Leader of the House said that he would seek to ensure that the House was sitting when the statement on the decision was made. Do you agree with me that that is a cop out? Should not statements on matters as important as the future of Royal Mail be made first of all to this House?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

That is not a point of order, but the hon. Gentleman has put his point on the record. Mr Speaker has also made it clear that he expects all statements to be made first in the House. We are all well aware of that.