House of Lords: Allowances

Lord Shaw of Northstead Excerpts

Tuesday 20th July 2010 Lords Chamber

[Lord Palmer]

My Lords, I concur with what the noble Lord, Lord Sewel, said—especially with regard to committees of this House going to Brussels. The last time I went under his wise guidance as chairman of Sub-Committee D, I was horrified that I was allowed to claim for a not necessarily needed glass of white wine, which cost €3, yet when telephoning home, I was not allowed a €3 call to check that my wife was alive. I concur with what the noble Lord said—this really must be looked at again.

I add support to the amendment proposed by the noble Baroness, Lady Harris. If the Leader of the House could always guarantee the exact timetable for the Sittings of the House, full-fare flexible tickets would not be required. But until the timetable can be cast in stone, Members are forced to buy full-fare flexible tickets. A four-hour train journey in standard class, which is what I have to endure, is just about bearable if one is in flip-flops and a T-shirt, but not if you are trying to study parliamentary papers and dressed to attend your Lordships’ House. It is for these reasons that I very much hope that the House Committee will look at the noble Baroness’s amendment.

Like the noble Lord, Lord Tomlinson, in his very powerful speech, I would like to put on record that I acknowledge that the current system of expenses is swimming in murky waters. I am acutely aware of the recession, as are other noble Lords, as I watch both the businesses that I try to run struggle from the downturn in the economy. But it is important to put on record that the proposals before us today are heavily weighted against those of us who have long and arduous distances to travel, with all the extra hassle and expense that we incur having constantly to eat out in London. We are also away from our families and we do not have what the noble Lord, Lord McIntosh of Haringey, described back in December as the luxury of sleeping in one’s own bed.

I hope that the Leader of the House and the Chairman of Committees will look most carefully at what has been said this afternoon.

[Lord Shaw of Northstead]

My Lords, I entirely agree with the proposals that have been put forward, but I have one query. Will some discretion be allowed to play a part in fixing entitlement to travel expenses? On the face of it, when we come back in the autumn, I shall be able to claim mileage costs to and from Wakefield station, as well as car parking as well—a weekly Bill of £56. However, I could catch a taxi there and back for £32, which is a difference of £24 or, annually—if I work it out from usual attendance—of £700. Is this discretion open to the authorities that pass my expenses or not?

[Baroness Symons of Vernham Dean]

My Lords, I, too, was a member of the ad hoc committee under the chairmanship of the noble Lord, Lord Wakeham. It is worth remembering that we are talking, simultaneously at times, about four different systems: the current system; the system that the SSRB put forward; the system recommended by the ad hoc committee; and the system in today’s proposals. I should like to compare the ad hoc committee’s proposals with today’s proposals, as I think that we are missing some important points.

My noble friend Lord Tomlinson was exercised by the fact that the recommendation made by the ad hoc committee at paragraph 5.61 of its report moved outside the remit that the House gave us. It is important to recognise that the report makes that point fully and coherently at paragraph 5.56. The report goes on to recognise, as my noble friend Lord Tomlinson said, that since the general election things have changed. That is spelt out in paragraphs 5.58 and 5.59, which consider IPSA and possible changes to your Lordships’ House. There was no sleight of hand; this was clearly spelt out in the report. In paragraph 5.61, the noble Lord, Lord Wakeham, recommended, with the support of most of the group, that,

“consideration might also be given to the case for putting in place a simplified allowance”.

The position is straightforward; I do not think that anything underhand went on.

The simplified allowance that we are looking at is a £300 a day flat-rate allowance. I remind your Lordships that the ad hoc committee report recommended that we accept the SSRB’s £200 flat rate. It also recommended, as an alternative—the noble Lord, Lord Williamson, referred to this a moment ago—a £100 flat-rate, unreceipted allowance, or £300 for those living outside London. Concern has been expressed about the House not being so diverse because of the difficulties of travel on that basis, but that applies equally to the alternative proposed by the SSRB. It could be argued that there was another alternative—the £140 receipted alternative. Indeed, we recognised that that was the SSRB’s alternative. However, that £140 receipted alternative was attenuated for every day that an individual did not attend the House, so that the individual not only lost for that day but faced an additional deduction from what they would have received. In essence, I do not think that many people would have received anything like £140, because everybody has to be away from the House at some point. I really do not see that the £300 flat rate is very different from what the ad hoc committee put forward, which was either to take the SSRB proposal with its deductions or to have the flat rate that we proposed. I do not think that that is an arguable point. It is written in our report, which I am sure all of your Lordships have read assiduously.

The question then is whether this is fair in the light of what London-based Members would receive. It may be argued that London-based Members will get more, but I have always found the argument that some people’s good fortune must mean other people’s misfortune difficult to agree with. The fact is that I am one of those who are not London-based Members and therefore, theoretically, I lose under this. I do not believe that I am losing any more than I would have lost under the report, but I accept that London-based Members will be receiving more.

That then raises the question of equity. Equity can be looked at in a huge variety of ways—equity according to need or the equity of getting the same rate for the job that you do. Both are arguable cases. The fact is that the proposals before us are the same rate for the job that you do.

On a personal level, one of the reasons why I want these proposals to go through is that I have seen many of my colleagues torn apart on Thursdays and Fridays by the ghastly telephone call that goes, “Hallo, it’s the Sunday Times here”. People know exactly what is coming—intrusive questions of a deplorable nature, people outside their house and their neighbours’ houses, questions down at their local pub. To me, this system is worth it because it means peace of mind for me and my colleagues. That is of enormous value to all of us.

Then there is the public interest argument. The fact is that this is a transparent system. What people receive is absolutely in line with their attendance in this House. There is no hidden agenda, there is nothing else for someone to look for and there are no constant questions about who you are living with and how that works. It is completely transparent. The public can have confidence in what is happening. The rate for the job is £300 a day—end of story. I hope that it will be our end of story too.