House of Lords: Membership

Lord Steel of Aikwood Excerpts

Thursday 24th October 2013 Grand Committee

[Lord Steel of Aikwood (LD)]

My Lords, my noble friend Lord Higgins has done the House a great service in tabling this debate and I thank him warmly for it. I want to limit my remarks directly to the paper which has been tabled by the Clerk, but of course it originated in the report of the Leader’s Group entitled Members Leaving the House, which was published way back in January 2011. The group was chaired by the other Lord Hunt, my noble friend Lord Hunt of Wirral. Paragraph 47 states:

“We recommend that a reduction in the number of members of the House should result in an overall saving to the taxpayer. We recommend that the possibility of offering a modest pension, or payment on retirement, to those who have played an active part in the work of the House over a number of years, should be investigated in detail, though on condition that this should come from within the existing budget for the House and should incur no additional public expenditure”.

I think we all agree on that, but we do not want to see ourselves pilloried in print for increasing public expenditure. The object of this exercise is to reduce it, as the noble Lord, Lord Higgins, made clear.

The Hunt committee went on to say, in paragraph 67:

“Whilst we cannot recommend that there should be a moratorium on new appointments to the House … we do urge that restraint should be exercised by all concerned in the recommendation of new appointments to the House, until such time as debate over the size of membership is conclusively determined”.

That, of course, has been cheerfully ignored. As we know, not only are the numbers going up but the cost to the public purse is going up. That will continue until we deal with the issue that the Clerk has very kindly put forward in the paper that has been put in the Library.

A couple of weeks ago, the Bill already passed by this House was taken up by Mr Dan Byles in the Commons. It got its Second Reading, and a pedantic Motion to put the Bill on the Floor of the House was defeated, so it has, properly, gone into Committee. We must hope that we will get that Bill back here. As we have already approved it, it should not be a problem to put it through the House. The important point is that the Bill simply confers the statutory authority that the Hunt committee said that it believed was necessary for the House to decide on what sort of retirement scheme should come into effect. The present so-called retirement scheme is nothing of the kind—it is simply an extended leave of absence. All those who think that they have retired from the House will find that, after the next election, they still get the Writ of Summons, because there is no capacity to create a retirement scheme at the moment. That is why we need the statutory provision and why I hope that the Byles Bill will succeed.

In an appendix to the Clerk’s paper, the finance director estimates that even if a voluntary retirement option was taken up by only 50% of those eligible in year 1, although it would cost £4.7 million, it would save £5.2 million. If the scheme kicked off at age 80, it would cost £3.9 million in year 1 and save £4.4 million. Whichever way you look at it, and however low or high the take-up, there would be a saving to public expenditure. We must, as a group, commend the Clerk’s report to the House as a whole and thank the noble Lord, Lord Higgins, for bringing it to our attention.