Parliamentary Voting System and Constituencies Bill

Lord Davies of Stamford Excerpts

Thursday 20th January 2011 Lords Chamber

[Lord Davies of Stamford]

My Lords, I have listened to this debate with great interest. I listened with great sympathy to the paean of praise for Telford by my noble friend Lord Grocott. I happen to know Telford because, when I was Defence Procurement Minister, among the agencies for which I was responsible were the Defence Support Group and the Defence Storage and Distribution Agency. I visited them in Telford on more than one occasion. I watched them doing superb work repairing vehicles that had been repatriated from Afghanistan after having been extremely seriously damaged by improvised explosive devices. I was immensely moved—that is the only word that I can use—not only by the skill but by the extraordinary dedication of the people who were working on that job. They knew how enormously important it was for the military and they were proud to do the job, which they did with absolute perfection and dedication. If any group of men and women in this country deserves special electoral recognition, I should find it hard to deny it to the people of Telford.

Apart from that consideration, I had no idea that anybody was thinking of making a special concession to Telford. Neither was I aware of the attractions of the Scottish islands off the coast of Argyll. Having heard the idyllic descriptions of them from several quarters of the House this evening, I shall certainly make it a priority to visit that part of the country.

With the leave of the House, I will revert to the City of London and speak in support of the amendment tabled by the noble Lord, Lord Brooke, who spoke with the historical erudition that the House will associate with him. I also support the equivalent amendment tabled by my noble friend Lady Hayter, which would have a similar, although slightly more forceful, effect. The noble Lord, Lord Brooke, supported by the noble Lord, Lord Jenkin, made a case for the historic privileges of the City and for the City of London’s right to continue to be recognised as a constituency, or as part of a constituency with that name included in it, as has been the case since Parliament existed.

I follow my noble friends Lady Hayter and Lord Myners in making a more pragmatic case. I am in no way detracting from the historical case, but I think that there is an important practical reason for continuing to ensure that one individual—one man or woman—can be described as the Member for the City of London. So that I do not get into trouble, I had better declare an interest, although it is not really a current interest. Before I entered politics, I was engaged full-time in the City of London, latterly as a director of a merchant bank. I was a colleague of the noble Earl, Lord Home, with whom I shared an office at one time. I saw him in his place a moment ago, although he has now left the Chamber. Even after I had been elected to Parliament as a Back-Bencher, I continued my role in the City and subsequently, before entering the Government, I was on the council of Lloyd’s of London, which is one of the biggest insurance and reinsurance groups in the world. However, I have no current financial interest in the City of London. I am a liveryman of the Goldsmiths’ Company, which is one of the ancient City companies, but I do not know whether that in any way constitutes a material interest.

Having said that, I recognise that it is difficult to say anything favourable about the City at the present time. Bankers and politicians are the two most unacceptable groups of humanity at the moment in this country and, indeed, elsewhere and we just have to accept that for the time being. As I have said in the House, there is no doubt that in commercial banking, which is just one area of activity that takes place in the City, serious professional mistakes were made. An awful lot of the criticism and, indeed, vituperation has, I am afraid, been all too well deserved.

Nevertheless, the City of London is much more than commercial banking or investment banking, which is my field. The City of London involves stockbroking, securities trading, fund management, international fund management—an enormously important field of activity, as my noble friend Lord Myners said—commodities trading, insurance and reinsurance, both the company market and the Lloyd's market, and shipping. The Baltic Exchange is the world's greatest centre of trading in ship charters. I do not have the figures in my head, but we all know that the City generates an enormous proportion of gross domestic product. Some people may say that it is disproportionately great, which may be true in the sense that it would be nice to have a more balanced economy, but the solution to that is not to run down the great asset and generator of wealth that we have, it is to nurture it and ensure that we are in no way inhibiting the development of other sectors of economic activity.

The City is an enormous national asset. It is the envy of Europe that we should have achieved here in London, in this time zone, far and away the greatest financial market in the world. It is a great source of employment. The latest figure which I have, which may be out of date but it sticks in my mind, is that half a million people work in the City every day. The vast majority of them come into the City. We have already heard from the noble Lord, Lord Brooke, that only about 4,000 or 5,000 people live in the City and some of them do not work there, so it is an enormous generator of wealth and employment.

I think that the House is familiar with the importance of the City to the national economy and will therefore bear with me when I say that it would be an enormous mistake to deprive the City of a representative in Parliament who is explicitly that, who is the Member of Parliament for the Cities of London and Westminster, or whatever the name might happen to be. It clearly needs to be for the City and somewhere else, and Westminster seems to fit it very well, but it must be a single Member of Parliament for the City. If the City was divided between two, three or four constituencies—the neighbouring constituencies at present—that responsibility would not fall on any one man or woman. We would not have a clearly defined interlocutor for government who could say truthfully that he or she represented the City; we would not have one person to whom the City could appeal.

Before I give way to my noble friend Lord Myners, perhaps I may say that he was an enormously distinguished Minister for the City. We need a Minister for the City and it would be nice if we could again have such an able and effective Minister as my noble friend, but the Minister for the City, by definition, is not a representative of the City; he is a member of the Government constrained by collective responsibility. There may be occasions when the Government want to do something that the City does not want, or the City wants to make representations to the Government to do something else. In those situations, it is necessary that the City has a genuine representative in Parliament in the form of a man or woman who has in his or her title the phrase “Member for the City of London”.

[Lord Myners]

I am grateful to my noble friend for his correct anticipation of my point. It is disappointing that we no longer have a City Minister. We no longer have in government a Minister who is seen to have specific responsibility for the City. Instead, the responsibility is divided between Mr Mark Hoban in the other place and the noble Lord, Lord Sassoon, in your Lordships' House. It is clear that there is a dispute between the two of them as to who speaks on behalf of the City; they fight for the juicier parts of the responsibility and eschew the more burdensome ones. The need to have a powerful voice for the City should be reflected in the constituency structure. Also, I urge the Government to designate one Minister as the City Minister. That has gone unnoticed, unnoted and uncommented on at a time when the City needs representation and a direct dialogue between the Government and the City.

[Lord Davies of Stamford]

I am so glad that I gave my noble friend the opportunity to make that point, a very important point indeed. It is an extraordinary piece of neglect on the part of the Government that they have decided not to give that explicit responsibility to a single Minister. He will acknowledge—I think he did in his intervention—that quite separately from that, it is equally important that the City has some individual to go to who actually sits in the House of Commons and has constituency responsibilities, including the City. That cannot possibly be an effective role if it is divided up. We all know that a responsibility divided is a responsibility that gets neglected. It is impossible for an individual, if he or she were just to represent one corner of the City, to go to the Government or—a point very well made by my noble friend Lady Hayter—to go to the European Commission or anybody else and say, “I am speaking on behalf of the City”. It is equally important that people in the City—it may be the different trade associations or individual firms—are able to go to someone in Parliament who understands the City, who, as a matter of professional integrity, has made sure that he or she is well briefed, even if they do not have a financial background, on the major issues in the City, whose door is open and can understand representations on City-related subjects and can take them up. That is a great strength in Parliament; that is a great strength for this absolutely key economic sector in our economy. That is an asset which would be destroyed if we do not retain the City as a specifically demarcated parliamentary responsibility. So I very much support the two amendments that have been moved tonight, and I hope the Government will take these points on board and accept those amendments, or at least give us some assurance that whatever comes out of this Bill will not enable any future Boundary Commission simply to allow the City to disappear as a parliamentary responsibility.

[Lord Watson of Invergowrie]

I rise briefly to supplement the remarks of my noble friends Lord Martin and Lord Foulkes in relation to Amendments 80 and 81 in respect of the city of Edinburgh and the area of Argyll and Bute. I speak on both from a personal viewpoint: I should declare an interest, albeit a rather removed one, in respect of Argyll and Bute. My great-grandmother came from there in the 1880s as an impoverished Gaelic speaker with no English. It is quite moving to read her Poor Law application, of which I have a copy, which she signed with just a single X—one of many thousands of islanders forced from the Highlands and Islands of Scotland by the appalling Highland clearances. An example of that is that the island of Islay, from which my great-grandmother came, once had a population of 15,000; that was in the 1830s. It is now 3,500: it dropped dramatically throughout the latter years of the 19th century, with many people going to Canada, the USA and Australia.

My wife and I regularly keep in touch with developments in our extended family through the various websites of Islay people. I think it would be wrong to say that Argyll and Bute is only about Islay—of course, that is a small part and the part I know best. But the Gaelic tradition of Islay and other islands, as well as the Western Isles, is an important consideration when it comes to parliamentary representation. Islay itself was one of the earliest islands settled. It was the home of the Lord of the Isles; it has the Gaelic Islay Columba Centre, part of the University of the Highlands and Islands, specialising in Gaelic. It is important that that is recognised in terms of its representation. Argyll and Bute itself, as a constituency of about 67,000 people, would fall short of the arbitrarily chosen figure of 75,000, give or take. As my noble friend Lord Martin said, with about 2,700 square miles, it is a massive area to be covered, and that has to be given consideration in terms not only of the coastline, which was referred to, but also of the very specific interests that have to be looked after. There are special islands allowances given by the Scottish Government to reflect that.

My noble friend Lady Liddell of Coatdyke mentioned the fact that, in terms of travelling to and from those islands, it is rarely a simple matter. Some of them, including Islay, you can fly to, but mainly you have to go there by ferry. It is very difficult to get there and back in a day; if a parliamentary representative went to one island but wanted to go to more than one, they would not be able to get back to their base on the same day. In many cases, if you go to an island on one day by ferry, you cannot get off that island for a couple of days until a ferry is going on somewhere else.

It is important to recognise that fact, and to lump Argyll and Bute together with some other part of the mainland would be unfortunate. I have to recognise—it would be unfair not to do so—that Helensburgh is part of the Argyll and Bute council area. That only came into effect some five years ago, but by and large, it is a collection of islands needing specific representation. With an electorate of 67,000, it is more than capable of qualifying for that. I hope that that will be borne in mind.

Finally, I would like to say a few words about Edinburgh. I should also declare an interest as a constituent in Edinburgh North and Leith, admirably represented—as my noble friend Lord Foulkes said—by Mr Mark Lazarowicz. The decline in the number of Edinburgh constituencies from seven to six and now to five has been against trends. We know that the most recent reduction was a reflection of the establishment of the Scottish Parliament. That has some validity on its own, but it means that the city, at a time when its population is growing, has seen a reduction in its constituencies. As things stand, if the 75,000 quota were strictly adhered to, it could well lead to Edinburgh being, in effect, farmed out to bits of Lothian—East, West and Midlothian—to make up the required figure. That is why, as my noble friend Lord Foulkes said, the 10 per cent figure would be far more valuable and would help Edinburgh maintain those five constituencies.

Although I live in the area which is part of Leith, I will not tread, either literally or figuratively, on the territory of my noble friend Lord O’Neill, who knows these matters much better than I do. As an incomer, however, I say that the people of Leith have their own pride and that must be respected. Equally, the people of Edinburgh as a city have their own pride. The historic significance of Edinburgh, not only as the capital city of Scotland but also as a major tourist attraction for all sorts of reasons at all times of the year, has to be given some consideration and not treated by the blunt instrument approach, which could well see the number of constituencies reduced from five. I very much hope that will be taken into account by the noble and learned Lord, Lord Wallace of Tankerness, when he responds to this debate.

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[Lord Wallace of Tankerness]

I rather suspect that the noble Lord was not listening as attentively as he would normally do, because I said that those constituencies had been excepted because they were dispersed island groups which could not readily be combined with the mainland. By definition, Argyll and Bute is already a set of islands which has been readily combined with the mainland and which over many decades has been represented by very distinguished, hard working Members of Parliament—I think back to Michael Noble and my late noble friend Lady Michie of Gallanach. It is now represented my colleague and honourable friend Mr Alan Reid. The two preserved constituencies are not readily combined with the mainland. If they were to be so combined, they would be part of constituencies whose surface area would be larger than the largest constituency. Let us remember, when we talk about surface area, we are not talking about areas of sea as well, which would not be counted into surface area. The most recent judgment of the Boundary Commission was that the maximum size of a constituency should be what was manageable for constituents and MPs. That is why we brought forward the other rule, rule 4, which sets a physical, geographical size limit, just by sheer reference to manageability. It perhaps cannot stand as a legal principle, but trying to make sure that you do not go beyond a certain extreme of manageability is surely in the interests both of the Member, of whichever party, and the electors, who have to make contact with their Member of Parliament.

I think that it was being implied by the noble and learned Lord that there is some political motivation behind the proposal. As I have said, it is obvious from the extreme geographical position of the two constituencies why they have been exempted. Although Orkney and Shetland has been represented by a Liberal or a Liberal Democrat for the past 61 years, I am sure that the noble and learned Lord will acknowledge that, until 1997, the Western Isles had a Labour Member of Parliament—indeed, until 1970, when the late Donald Stewart won the Western Isles, it had been represented by the Labour Party from the 1930s. I am sure that his colleagues in the Labour Party in the Western Isles have no intention of giving up their aspirations for that seat. Our approach is in no way partisan; it is a recognition of geography.

[Lord Davies of Stamford]

Is the Minister telling us that, in the coalition’s discussions which gave birth to this Bill, the Liberal Democrats—leader or otherwise—did not insist on these two exemptions in Scotland?

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[Lord Wallace of Tankerness]

I did not do a deal with anyone with regard to this. I have just paid tribute to the party opposite which recognised the importance of Orkney and Shetland by giving them separate seats in the Scottish Parliament and preserving the Orkney and Shetland Westminster seat. I hope that noble Lords will think that it is not unreasonable that, given the similar circumstances of the Western Isles, they should be included.

There were some important contributions in this debate about the City of London. The amendment was spoken to by my noble friends Lord Brooke and Lord Jenkin, the noble Lords, Lord Myners and Lord Davies of Stamford, and, very persuasively, by the noble Baroness, Lady Hayter of Kentish Town. I think the important role that the City of London has in the history of this nation is well recognised across the Committee, as is the important financial contribution that the City makes.

As I have indicated, the primary concern of the Bill is to create more equal-sized constituencies, and that is best achieved by keeping exceptions to the minimum. As a result, the Government do not believe that the City of London should appear as an exception. While it is not for me to say what the Boundary Commission for England will do, I hope it might reassure noble Lords to know that the 25 wards in the City of London have fewer than 7,000 electors, which is smaller than some individual wards elsewhere in the country. I therefore suspect that it is unlikely that the City will be split between two constituencies. This is a very obvious case where the rules, particularly rule 5 about where special local ties would be broken by changes in constituencies, would be highly relevant in addressing the Boundary Commission.

The question was raised with regard to the historic nature of the City. The position, as I understand it, is that while Magna Carta protects certain privileges of the City of London, paragraph 628 of volume 12(1) of Halsbury’s Laws of England lists customs of the City that have been certified by the Recorder and recognised by the courts, but does not include anything on Parliament or constituencies. However, there is considerable history here and I would want to do better justice to this issue. I hope that I shall be able to write to the noble Baroness who raised this matter, addressing the point that she made concerning the history of the City as a parliamentary constituency, and I shall seek to do so before Report. As for the name of the constituency, again, that should be a matter for the Boundary Commission. However, I have no doubt that those who feel strongly about any proposal from the commission that affects the City of London will be able to make representations to it. I certainly recognise the importance of the name of the City of London, and we believe that this strikes the best balance between respecting the history of the nation’s communities, including the City of London, and providing equal weight to the votes of those who live in all our communities.

I turn to the question of Edinburgh—

[Lord Davies of Stamford]

My Lords—

[Lord Wallace of Tankerness]

No, I think that we have heard quite a bit on this matter. I turn now to the other capital city, Edinburgh, which was referred to by the noble Lords, Lord Foulkes and Lord Watson of Invergowrie, and indeed, with due deference to his native home, by the noble and learned Lord, Lord Falconer of Thoroton. I do not think that the noble Lord, Lord Foulkes, declared his interest as a supporter of Heart of Midlothian Football Club—perhaps he just took it that it is a well known fact. If the additional five constituencies all contained in the Edinburgh council area were to be excepted, which would be the consequence of the amendment, from the 5 per cent above or below the rule, they would be projected to diverge on average from the electoral quota by just over 12,300 electors—that is, just over 16 per cent. Again, I do not think that that ties in with the concept of fairness and equal votes, as we believe that constituencies should be broadly of equal size.

I do not believe that there are the geographical challenges that we find in the two constituencies that have been preserved. I know Edinburgh reasonably well and I do not think that there are geographical challenges there that would make it particularly difficult for MPs to see their constituents or for constituents to see their MPs. Nor, indeed, is this a case in which there is an issue of sparsity of population. The noble Lord, Lord O’Neill, mentioned that, for the Boundary Commission, the Edinburgh East constituency had sometimes included and sometimes excluded Musselburgh, which I believe lies administratively in the county of East Lothian. Therefore, Edinburgh has expanded its boundaries in the past for parliamentary purposes.

Ultimately, it will be for the independent Boundary Commission to take account of all the factors. I say this only because I think that the noble and learned Lord, Lord Falconer of Thoroton, said that in every circumstance he would want Edinburgh to have five seats. If Edinburgh, in order to thrive and flourish, as we would all wish to see, merited six seats, I am not sure why in statute we should restrict the number to five. There is a problem in going down that road. However, I have no doubt that the Boundary Commission will be able to secure equality of votes between constituencies within the 5 per cent margin and that Edinburgh’s standing as Scotland’s capital city will in no way be impaired.

I turn to the case made by the noble Lord, Lord Martin of Springburn, and supported by others, including the noble Lord, Lord Watson, on Argyll and Bute. As I have already indicated, Argyll and Bute already combines islands and the mainland, which I think distinguishes it from the two that are reserved and which, as I have already indicated, we do not believe could incorporate part of the mainland very readily. Argyll and Bute is already very close to the range that will be required under the Bill. Although I recognise noble Lords’ concern about large areas, I have already referred to the fact that there are rules in the Bill that would ensure that the size did not become unmanageable. It is not just at 13,000 but at between 12,000 and 13,000 square kilometres that there is a sliding scale.

The noble Lord, Lord Watson, mentioned Helensburgh, which is currently part of the Argyll and Bute constituency. I believe that in parliamentary terms it is a recent addition, although in local government terms it has been part of the Argyll and Bute council area for some time. Helensburgh, of course, is historically part of the ancient county of Dunbartonshire, so its boundaries have already changed and it is now familiar as part of Argyll and Bute. I was a sufficiently political anorak in my youth that I can remember when Argyll and Bute did not have Bute and that Bute was part of a north Ayrshire and Bute constituency, so Bute has migrated backwards and forwards. In areas such as these, there has been no fixed boundary. Therefore, given the safeguards to prevent its size becoming too great, and the fact that the islands are already incorporated in the mainland, it would not qualify for a preserved constituency in the same way as the Western Isles and Orkney and Shetland do.

As to the island area of Telford being surrounded by the rest of Shropshire—