House of Commons Administration Estimate

Viscount Thurso Excerpts

Tuesday 23rd April 2013 Commons Chamber

[John Thurso (Caithness, Sutherland and Easter Ross) (LD)]

I beg to move,

That the following new Standing Order be made—

‘Motions and amendments with a financial consequence for the House of Commons Administration Estimate.

(1) Motions which would have a direct consequence of additional expenditure under the House of Commons: Administration Estimate estimated to be £50,000 or more shall not be considered by the House unless a memorandum setting out their expected financial consequences has been made available to the House.

(2) The Accounting Officer shall make such a memorandum available to the House within a reasonable time of a motion to which this Order applies being tabled.

(3)(a) This Order shall also apply to amendments to motions which would have the expenditure consequences set out in paragraph (1), but the absence of such a memorandum shall not prevent the House from considering such an amendment.

(b) In his decision as to the selection of such an amendment, the Speaker shall, in addition to such other considerations as may, in his view, be relevant, take into account whether sufficient time has been available for the House to be provided with adequate information regarding the financial consequences.

(4) The Speaker shall decide whether a motion or amendment falls within the terms of this Order.’.

The motion is in my name and those of my right hon. and hon. Friends. The Finance and Services Committee’s first report of this Parliament begins:

“In the current Parliament, we have been seeking to ensure that the House Administration’s financial priorities are determined on a coherent basis by Members of this House, so that the House’s spending meets the needs of the House as a whole”.

Enabling hon. Members as a whole to continue to determine that on a coherent basis is at the heart of the motion.

Earlier in this Session, we had an excellent debate on the savings plan and the medium-term financial strategy, which enabled Members to vote on various aspects of our financial proceedings and to take charge of both the budget and the plans of the administration estimate. I welcomed that move, and I believe it was welcomed by many other Members. That goes to reinforcing the concept and the process by which the finances of the House are dealt with on a coherent basis by Members of the House. The motion is based on the simple proposition that, if the House is making a decision with a significant financial impact on its budget, it should have access to the basic information required on the cost and other financial consequences, so that it can make the decision in a coherent way.

For example, in the past we have had Government proposals to set up Select Committees. Each Select Committee has a considerable cost impact—it is in the order of £500,000 a year. When the Government introduce legislation, we expect them to tell us what the financial impact will be. It therefore seems entirely reasonable that the House should know about such financial impacts. Previously, there has perhaps been an expectation that extra costs could always be accommodated regardless, but in these days when we want to ensure that costs are properly considered, it is right that we have the knowledge to make such decisions.

The proposal was made by the Finance and Services Committee. Before we arrived at the current text, it was discussed by the House of Commons Commission, and discussed on a number of occasions by the Procedure Committee and the Leader of the House. The current text is broadly agreed by all in principle. There were a number of doubts about the wording among members of the Procedure Committee, but I hope they have been dealt with in the current text.

[Kate Hoey (Vauxhall) (Lab)]

Can the hon. Gentleman tell me whether, if this proposal had been in operation two or three years ago, Members of the House would have had any say in the last remaining day switchboard moving to Southampton on 8 May? Anyone phoning the House of Commons, night or day, will be talking to someone based in Southampton, and when I rang in the evening last week—the night switchboard has already moved—the location of Derby Gate was not even known. Would that have been any different? Would we, as Members of Parliament, have had any say?

[John Thurso]

The hon. Lady has raised this matter tenaciously; indeed, she has raised it with me. The answer is that if the matter were put before the House in a motion, the financial consequence would have to be revealed. If it were not, and was put together by way of the financial plan, the debate such as the one we had last year would have been exactly the place to have raised such a matter. The two things go together, and that is entirely in keeping with allowing Members a say on such things in future.

[Nigel Mills (Amber Valley) (Con)]

One potential consequence of the Standing Order would be that, if the accounting officer so wished, he could decline to put the financial details into the House domain and therefore the debate on the motion could not happen. What does the hon. Gentleman understand “a reasonable time frame” to mean—a day, a week, five years?

[John Thurso]

I am blessed by the fact that I would never have to make the decision; it would be a decision for Mr Speaker and his advisers. As we all know, the Speaker is always right. Therefore, whatever decision he made would be both reasonable and appropriate. It was written deliberately in such a way that the final word is with the Chair for precisely the reason that if something came up where an exception were needed, it could be dealt with. That is very important.

[Mr Charles Walker (Broxbourne) (Con)]

May I confirm that the absence of a financial memorandum would not necessarily mean that a debate would be denied?

[John Thurso]

It is my understanding that a financial memorandum would be expected, and there are a number of occasions where it could be short and simple. If a circumstance arose in which a financial memorandum could not be prepared, it would be in the hands of Mr Speaker to make a decision. That is my understanding. If I have got that wrong, and there is a small percentage chance that that is the case, I will certainly come back to the hon. Gentleman.

The effect of the Standing Order would be to require the accounting officer to provide a memorandum for any expenditure of more than £50,000 to the administration estimate. An example of such a motion, as I mentioned earlier, would be a proposal to establish a Select Committee. The Standing Order would also require a memorandum to be provided in respect of an amendment to a motion, if it would have a similar financial impact. As less notice might be given of an amendment, the absence of a memorandum would not necessarily prevent it from being debated, but the Speaker might take that factor into account in his selection of amendments. I therefore suggest, in partially addressing my previous answer, that there would nearly always be time for a motion, but the Chair may take a view where amendments are tabled. That is the most likely consequence.

This is a very small, but important change. It follows the principle that our decisions should be coherent and based on facts, so that we can make a measured judgment, and in the hands of the Members of this House. On that basis, I commend the motion to the House.