Independent Parliamentary Standards Authority Debate
Full Debate: Read Full DebateAdam Afriyie
Main Page: Adam Afriyie (Conservative - Windsor)Department Debates - View all Adam Afriyie's debates with the Cabinet Office
(13 years, 8 months ago)
Commons ChamberI beg to move,
That this House regrets the unnecessarily high costs and inadequacies of the systems introduced by the Independent Parliamentary Standards Authority (IPSA); calls on the IPSA to introduce a simpler scheme of office expenses and Members’ allowances that cuts significantly the administrative costs, reduces the amount of time needed for administration by Members and their staff, does not disadvantage less welloff Members and those with family responsibilities, nor deter Members from seeking reimbursement of the costs of fulfilling their parliamentary duties; and resolves that if these objectives are not reflected in a new scheme set out by the IPSA in time for operation by 1 April 2011, the Leader of the House should make time available for the amendment of the Parliamentary Standards Act 2009 to do so.
I thank hon. Members across the House for their support in crafting the motion and for coming to the debate. In particular, I thank the chairs of the Back-Bench committees for each of the parties. This is a cross-party motion which enjoys wide cross-party support. I thank the hon. Member for Walsall North (Mr Winnick) for hosting the debate in Westminster Hall earlier this year, where hon. Members were able to give their initial view of the systems being operated by the Independent Parliamentary Standards Authority.
It would be all too easy for Members of Parliament to moan about the details of how the existing scheme is working, but from all the conversations that I have had over the past several months, I am reassured that that is not the purpose of today’s debate. Members have been reassuringly consistent in their view, in private and public conversations, that the debate is about ensuring that we get a grip on a system that is taking MPs’ time away from constituents and is costing the taxpayer far too much money. Although there are personal inconveniences to Members of Parliament, which are fully recognised by all MPs, that is not the primary purpose of the motion. I thank the Backbench Business Committee and its Chair for having the courage to hold the debate on a substantive motion.
The motion presents an opportunity significantly to reduce the costs of Parliament to the taxpayer, an opportunity to allow MPs to spend more time representing their constituents, and an opportunity to reform a system that unintentionally discriminates against MPs with family commitments and those who come from a less well-off background. Above all, the motion offers a chance finally to begin or continue the process of restoring confidence in Parliament. If it is passed, as I hope it will be, it will send a clear message to IPSA and the country that Parliament wants a new expenses scheme that cuts the cost to the taxpayer and allows Members to conduct their duties for their constituents.
The motion urges IPSA to be bold in proposing a new scheme. I hope it will introduce one that works. The motion is also clear that if IPSA fails to do that, Parliament will act in the interests of the country by proposing the necessary reforms.
The history of payments to MPs is informative. I do not intend to go through the entire history, but it is useful in the present context. A simple Members’ allowance was introduced in 1911. It was transformed—or deformed, I would argue—over the past century into a byzantine system of hidden expenses and allowances. That happened because Parliament allowed it to happen. Past Governments, understandably, avoided politically unacceptable and unpalatable pay rises for MPs, but these rises were necessary as the nature of the job changed, the amount of correspondence changed, and the expectation on MPs to be in their constituencies more often increased. MPs failed to assert themselves over the past 100 years on behalf of their constituents.
From the mid-2000s, MPs knew the system would eventually undermine the integrity of Parliament. When I arrived as a new Member in 2005, that was pretty clear from the conversations and from the worries that were being expressed. However, I think it is safe to say that the initial system introduced by IPSA is now also creating problems, and they will make it difficult for Parliament to do its work in the future. For the sake of our democracy, Members of Parliament have a duty to act if IPSA does not bring forward a scheme that sorts out these problems.
Last year’s expenses revelations were a well-deserved kick in the teeth for Parliament. They should also have served as a wake-up call alerting us to the fact that action needed to be taken. We must act now, and avoid dragging the British Parliament back into disrepute purely because we may be nervous about the initial public reaction to what we say.
I will address the motion shortly, but first I want to say that I greatly commend the staff at IPSA both for putting up with us, because we can be very forceful in making our representations to them, and for implementing a scheme that was designed not by them but by the IPSA board. We must take care to recognise that the staff at IPSA are working hard in trying to implement the scheme, even if it does not work for our constituents.
I also welcome the publication of MPs’ claims this morning; IPSA is right to publish them, because accountability must be at the heart of any system that is put in place. Like all other Members, I accept, of course, that it is a complete coincidence that the claims, along with other publications and leaks, were published this morning; I accept that the timing of that has nothing to do with today’s debate. However, it is alarming that IPSA has chosen not to publish the receipts behind the claims, because we have been here before. If there is a claim and a supporting receipt, it is essential that the receipt is shown to the public, or made readily available to them. I believe this decision will prove to be calamitous. It implies secrecy and concealment when MPs should have nothing to hide, and it encourages misinterpretation and miscommunication unnecessarily. It is inevitable and right that under the Freedom of Information Act people will request to see these receipts, and they will therefore become available. Why on earth were they not published immediately? I think that will turn out to be a mistake.
I recognise that some might say that it is exceptionally expensive to publish such receipts, and I agree. It is very expensive to process receipts and then publish them with redactions for privacy and other reasons. My counter-argument to that is straightforward, however: IPSA should have been aware of these costs and burdens when it introduced a scheme that demanded that such procedures were followed. It cannot be an excuse that it costs too much to publish receipts if that is what is required under the system IPSA initially designed. I therefore encourage it to change the system.
I am grateful to the hon. Gentleman for securing this debate and for his contribution thus far. Does he know how many Members of Parliament IPSA consulted before setting up this scheme?
That is a very good question. I have the figure 44 in my head for the number of responses to the initial January consultation. A quarter to a third of them were completely against the kind of scheme IPSA eventually introduced, while the other three quarters or two thirds raised specific issues that were not directly related to the terms of the consultation. The input from Members of Parliament in a public sense was therefore fairly minimal; only about 11 MPs actually made a contribution. That is a little concerning. I think the reason behind that low figure is that we as Members of Parliament all know that anything we write on expenses that is in the public domain is a hostage to fortune. We have to overcome that reluctance, however, because unless we show confidence and courage and make it absolutely clear that we will not tolerate an unnecessarily expensive system and an unnecessarily burdensome bureaucracy that takes us away from our constituents, we will fall into the same trap we have fallen into in the past. I therefore have a tremendous sense of déjà vu.
The expenses scandal coincided with the run-up to the general election—it was almost part of the general election campaign—so there was a political need to resolve the issue quickly. I think we all recognise that, and I think we all accept that something needed to be done fairly briskly. However, on reflection now, a year later, it seems to me that perhaps in our haste we have lost some time. Even with the best intentions in the world, there have been omissions and errors in the establishment of the current regime, and they need to be tackled.
Ignoring warnings from the Clerk of the House and others, we have created a curious beast. We have handed over control of the work of MPs to an unelected and unaccountable body. IPSA is judge and jury; IPSA is both regulator and the regulated. MPs are rightly accountable to the people who elect them, whereas IPSA is accountable to nobody, yet IPSA can control the way MPs work—it can control the amount of time that MPs have available to them to conduct their duties. That is a curious state of affairs, and if we are honest with ourselves we would never tolerate that set-up in any other walk of life, or in any other part of government or the civil service.
I do not doubt that the chairman and board of IPSA have good intentions, but is it right that the current system continues to frustrate the work of democratically elected MPs? The issue is not about us and our minor inconveniences, but about our constituents and the time that we can spend with them, so we have to be bold in what we do.
To be completely fair to IPSA, the scheme that it had to implement had already been handed to it by the Committee on Standards in Public Life, and if I remember correctly there was a curious collision of timetables, whereby IPSA was set up at the same time as the committee was holding its inquiry. I am afraid that we politicians are responsible collectively for the mess that IPSA inherited from us, and I think that my hon. Friend is appealing for it to take charge, to fulfil its remit and to take full responsibility for the scheme that it now implements.
I very much welcome my hon. Friend’s intervention. It is quite clear that the Committee on Standards in Public Life had not reported at the time when IPSA was instructed to create a scheme, so we must take responsibility for that. We were in a hurry—with the right intentions—to change the system so that an external body would set the rates of remuneration and pay, but it is widely recognised that in our haste we created something that needs adjustment.
The hon. Gentleman is certainly making a positive contribution for all of us. Is it not odd that IPSA itself is not situated on the parliamentary estate? It is also reluctant to give information about its senior executives; I have now waited a fortnight for a parliamentary answer about the number of senior people in the management team and their salaries. Incidentally, it might interest the hon. Gentleman to know that the dog of my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) shows absolutely rapt attention to every word he says.
I should like initially to make it absolutely clear that the dog has claimed no allowances whatever!
The hon. Gentleman knows, because I have communicated this point to him, that we need to reflect on the public’s reaction a year ago. Indeed, I contributed to the discussion in January and was in favour of a much simpler administrative scheme than the current one. Is the review at the beginning of January not an opportunity to try to get the system right, in a non-adversarial way; to take the public or, at least, the opinion-formers with us, rather than back a year; to make the job of IPSA staff, whom he rightly praises for trying to operate a difficult system, much easier; and to ensure, therefore, that MPs benefit from a simpler process, the public benefit from a cheaper process and the world outside believes that we have not once again lost our marbles?
Order. Can we have shorter interventions? A lot of Members wish to speak in this very important debate.
I welcome the intervention and the correspondence between me and the right hon. Gentleman, although we have a slightly different view about the purpose of today’s motion. We know that there will never be a win on this subject with the media and the public, whatever the scheme’s initial form. That is just never going to happen. Anybody who has been around the media, business or politics for long enough knows that that will never happen, so the question for us is: what type of scheme would be most beneficial to constituents and the taxpayer?
I welcome the right hon. Gentleman’s input during the initial set-up, and I recognise his hard work in looking for a simple scheme, but I suspect that IPSA has not fully taken on board the power that we have given it to simplify things and make our jobs easier. My greatest hope today is that the terms of the motion never need to be used, and that IPSA comes forward with a scheme that works, thereby enabling us to do our job.
With regard to the intervention of the hon. Member for Walsall North, it is notoriously difficult to get information out of IPSA, and I understand why. Among other practices, it might not reflect well on IPSA if its senior salaries were compared with the salaries of Members of Parliament. I believe that there is also concern over the cost of the buildings that it has hired and the contracts into which it has entered. I do not want to go into the minutiae of how IPSA operates; I want to focus on the purpose of the motion and the consequences of its being passed this afternoon.
The motion presents an opportunity for the Government and our political party leaders to stand aside from this issue. The moment a party leader speaks on this subject, it is ignited and becomes a party political matter, with the parties wrangling with each other. The moment a Government get involved, it is a headline media issue—why are the Government trying to change IPSA and get rid of its independence? It is untenable for Governments and political party leaders to handle this issue, and they cannot do so in the way that is needed. I put it to the House that it is right for Parliament to handle this issue and to create the opportunity for the Government and party leaders to stand aside and allow measures to be brought forward. If it looks like those measures will cost the taxpayer more, of course the Government should have a right of veto. However, we need to deliver to the Government and party leaders the opportunity to step aside and allow this place time for calm contemplation and to bring forward measures. It is then up to the Government to make a judgment. We would be doing our party leaders a service, and it would be the first time in 100 years that they would have been given such an opportunity on the issue of MPs’ conditions and remuneration.
I am sure that the hon. Gentleman is an advocate of worker representation, but does he accept that it would be unusual in any other workplace to invite the employees to set the terms of their expenses arrangements?
The hon. Gentleman is a new Member, and he is spot on. That is why the majority of hon. Members believe that it was right that an independent body set the rates of remuneration. We talked about privilege earlier, and this is a matter not of MPs’ privilege but of the people’s privilege to have an MP who can work, unimpeded by a third party that is unaccountable to the public. If a body can tell MPs how to do their work—which, in effect, IPSA can in its current form—democracy and the people’s voice are undermined.
My hon. Friend is being very generous in giving way. Perhaps he would like to disabuse my hon. Friend the Member for Chippenham (Duncan Hames) of the notion that we are employees. When I came to this House, I wrote to the then Speaker to inquire about the possibility of availing myself of child care vouchers. I was told that it was not possible because I was not an employee, but was regarded by Her Majesty’s Revenue and Customs as self-employed. That is the distinction.
Absolutely. My hon. Friend hits on the key issue, which has not been resolved in the last 100 years, of whether a Member of Parliament is a paid employee with a salary, in which case one would expect a job description. MPs do not have job descriptions; it is therefore semi-illogical that they would have salaries. HMRC is absolutely correct that for most intents and purposes, MPs are self-employed. I will comment on that in a moment, but I am conscious of the time that I am taking.
In answer to parliamentary questions that I tabled, IPSA graciously acknowledged that I am employed by the good people of Colchester. It also acknowledged that I am the employer of my staff and that it is not the employer of MPs’ staff. However, half the time it behaves as if it were the employer of MPs, and half the time as if it were the employer of MPs’ staff.
That is the irreconcilable nature of the task that IPSA has been set. These are quite deep waters and I am not sure that we can get into the intricacies in this debate. The hon. Gentleman is right that there is a fundamental incompatibility between an external body controlling the terms and conditions by which staff are employed and the responsibility for that employment falling with the individual Member.
I completely support what the hon. Gentleman is saying. Can we move back to the motion and to trying to consider how we rationalise the headings in respect of what the regime is all about? It is clear to me that it is all so time-consuming and unnecessary and will lead to our running out of money in certain budgets. That problem would be overcome if there was a bit of rationalisation before 1 April next year—the date set by the hon. Gentleman in the motion.
I thank the hon. Gentleman for bringing me back to the motion, which is where we really need to be, especially given how long I have taken so far. He is absolutely right to say that we are looking for the schemes to be simplified. I hope that the motion will give IPSA the licence to do that without our having to bring forward measures. There are other anomalies that may need to be dealt with through legislation, including statutory instruments, but they do not relate directly to the reimbursement or remuneration of MPs.
I turn back to the motion, which has three substantive parts. First, there is the regret about the unnecessary bureaucracy that impedes MPs’ work for their constituents. Secondly, there is the regret about the unnecessarily high cost of the scheme; I shall not go into the details of how the new scheme costs 50% more than the one in the previous Parliament, although I am sure that others will. There are also irreconcilable differences in IPSA’s January consultation. Principle 9 in chapter 2 says that
“Arrangements should be flexible enough to take account of the diverse working patterns and demands placed upon individual MPs”,
but by introducing a prescriptive and rigid system, IPSA has manifestly failed to recognise that point in the scheme so far. Principle 10 in chapter 2 says:
“The system should be clear and understandable. If it is difficult to explain an element of the system in terms which the general public will regard as reasonable, that is a powerful argument against it.”
Yet the current system fails to respect that principle. How can IPSA expect the general public to understand the system when we MPs find it virtually impossible to understand? That is another irreconcilable point.
Sections 3.1 and 3.2 state that there is no formal job description for an MP and that defining an MP’s duties is notoriously difficult. However, the document goes on to attempt to define that role. Section 3.13 recognises the varying accommodation needs of every MP. Why, then, is the system so prescriptive about the nature of that accommodation, irrespective of family situation or the rapidly changing circumstances of individual Members?
I am a new Member with a constituency in outer London. Every night, I am lucky enough to return to my family. However, many colleagues tell me that, for four to five days a week, they have extreme difficulty in seeing their families because the allowances do not permit it. In many cases, a Member cannot keep their family with them unless they are rich enough. I feel that that is wrong.
Hear, hear! Absolutely. The system seems almost designed to create a Parliament for the wealthy. If a Member does not have sufficient resources to subsidise themselves, they become ensnared in a vice-like grip designed to bring them into disrepute—they have to produce every single receipt for some sort of personal item. Wealthier Members or those with independent means, of course, can simply not claim. As I look around both sides of the Chamber, I know that probably not a single Member here has claimed everything that they are entitled to claim—first, through fear of the public and the media really having a go, or secondly, because it is too complicated and time-consuming to do so.
We have to ask ourselves whether the public want such a system for their Parliament. The wealthy swan through, buy their way out of the system with no trouble at all and are treated as saints when they are nothing of the sort, and everyone else is stuck in the system.
Does the hon. Gentleman agree that one of the main issues is that IPSA does not seem to have understood that MPs have responsibilities and duties in their constituency and similarly here in Parliament? The current system does not take that into account, so the costs of one or the other have to be subsidised, or can be met by those who have wealth. If MPs do not have that wealth, they are simply unable to meet the costs of operating in two places at once.
Exactly that debate was had in 1911. After the Osborne judgment, Labour Members could no longer be funded by the unions, which meant, in effect, that they were destitute. Then, in 1911, a flat rate—a beautifully simple Members’ allowance— was introduced at £400 a year. Members were told: “There you go. This is not a salary, a remuneration, a reimbursement of expenses or a payment in kind for services; it is merely an allowance that recognises that there are costs associated with being here, and Members are trusted to organise their lives in the way that is necessary.”
One cannot second-guess and legislate for the topography of every seat or the lifestyles—the changing lifestyles—of every MP, or for the reproduction rates of MPs: we are now on our fifth. One cannot create a system that takes into account whether the trains are working or whether it is going to snow and being told only at 5 o’clock in the evening. There is no way that the route that IPSA is currently pursuing will satisfy the needs of the public to have a Parliament that functions effectively.
So why not go back to a simple flat-rate allowance for everybody?
The Parliamentary Standards (Amendment) Bill, which will appear on tomorrow’s Order Paper—of course, I do not know what is going to happen to it—says that that is exactly what we ought to do, because it would save the taxpayer money and give MPs time to serve their constituents. That proposal is not directly related to the motion, but I just point it out. It would take courage to enact such a simple, straightforward scheme, and I urge IPSA to have the courage to do so. There is nothing more transparent than a flat-rate Members’ allowance: everyone can see what it is and everyone can see that every MP gets the same thing.
The current system causes inconvenience and makes things very difficult for Members with families and Members who are less well-off. It also causes problems, because Members are not making claims. Looking back at this year, and certainly over the past six months, I know that virtually every one of my colleagues—I have spoken to 350 MPs one-to-one—has not made the claims that they are entitled to make. That may be seen externally as a great success—“Look, IPSA has crushed the MPs, and they cost far less!”—but we all know that that is not the situation. We know that Members are borrowing from their parents, having to borrow cars from friends, and still sleeping on floors of offices, which they are not supposed to do, because they are not claiming what they rightfully should be able to claim. It is not a good situation.
However, I am not moaning on behalf of existing MPs. I love all the MPs here, but I am not whingeing on their behalf. What I am concerned about is the functioning of Parliament for the next 100 years. Where will we be in 30 years’ time if we continue down this route where only the wealthy can serve? That is where we were before; I thought we had moved on. IPSA, I hope you are listening.
The Chamber is largely full of men today and women are represented only in small number, so I ask that this comment is not regarded as sexist. The IPSA regulations say that mothers with teenage children are not allowed to have their children to stay with them in their overnight accommodation in London. When a single mother is telephoned from the school or university and told that their child is sick and to collect them and take them home, what are they supposed to do? Mothers are not allowed to have their children with them, yet we have to be here to carry out our duties. Does my hon. Friend agree that the IPSA regulations are particularly difficult for women?
I am making the same observation, and my hon. Friend highlights the point very well.
The motion asks not for a system that involves looking into the individual lifestyle of every Member, but merely for a simplified system that recognises the variability in family arrangements. The motion asks not for a system that investigates the lifestyle, family arrangements and travelling habits of every MP, but for a simpler system that saves the taxpayer money, so that MPs can focus on the job at hand, whether or not they have a family.
I shall come to my closing remarks, because I am conscious of time. The third part of the motion is significant. I am begging IPSA please to propose a scheme that sorts the problems out, and I hope that it will. It has the mandate of the House of Commons already, so it can do so. However, the motion states that if a scheme that can be put into operation by 1 April 2011 is not proposed, this place will act—not in our interests, but in the interests of our constituents and Parliament.
I am now on the record as encouraging IPSA to come forward with a scheme, but we must be clear on timing. If a proposal is not forthcoming by, say, mid-January, it will be impossible to introduce a scheme before the beginning of the next financial year. Therefore, if the motion is carried, it is necessary for us to introduce a Bill or a statutory instrument or something, probably this side of Christmas, in case IPSA’s proposal is not the right one. Otherwise, we are trapped within the current system, and our constituents will suffer. The costs will be astronomically high for at least another year to a year and a half, and I fear that Members will begin to leave Parliament. The work of Parliament will continue to be impeded unless such changes are made.
My hon. Friend makes a strong case and a plea to IPSA to get on with it. Does he agree that it is up to the Government to empower IPSA by sending a strong message that they support the need for radical reform of a system that, in the end, on administrative cost grounds alone, ought to be seen as unsustainable and unworkable?
That was exceptionally well put. One of my big asks of the Government is that they communicate the message that IPSA is empowered to make those changes and should not be nervous about doing so if the motion is passed.
This is a sensitive issue and the public are understandably concerned. I am certain that tomorrow this debate will be reported as, “MPs whinge about their conditions and the independent body that controls them”, but that is not what the debate is about. The debate is about saving the taxpayer money and ensuring that MPs’ voices are heard and not hidden through fear of speaking out.
As a Member of the 2010 intake, I have no personal knowledge of the system that ran before, but I came here from the private sector, and the IPSA system epitomises everything I had always believed to be wrong with government—it is bureaucratic, inefficient and very expensive. The system fails in two respects. First, unless hon. Members are of considerable personal wealth, they are prevented from conducting their duties as their constituents would like; and secondly, that this system was adopted in response to such serious allegations against conduct in the previous Parliament is a stain on this place. The system is failing and it needs reform.
I thank my hon. Friend very much for that intervention; everyone will have heard what he said.
We know that the current system costs the taxpayer far too much, that it takes the time of MPs away from their constituents, and that it will continue to undermine Members, particular those with families and those who are less well off. We have a duty to act in the taxpayer’s interest if IPSA does not propose a new scheme. One former Prime Minister said:
“The first duty of a member of Parliament is to do what he thinks in his faithful and disinterested judgement is right and necessary for the honour and safety of Great Britain. His second duty is to his constituents of whom he is the representative but not the delegate.”
We must stand up, in a disinterested fashion—not for our own purposes—and insist that IPSA propose another system. If it does not, we must resolve to act. That is what the motion proposes.
With only a couple of minutes left, I should just like to say a few quick things. First, the debate has been held in a measured and considered tone. All the contributions, perhaps bar one, have been very well considered and put forward in the interests not of the current Parliament and current Members but in the interests of the future of Parliament. We want to ensure that this place will be diverse and welcoming to people with young families, and to those who are not as affluent as others and cannot afford to fund their own way here.
It seems to me that if the motion is passed—there are questions about that—Parliament will have made a very clear statement. It will have said, “Please, IPSA, we beg you, we urge you: come up with a simplified scheme that delivers what Parliament requires to function for the next 10, 20 or 30 years.” It will also have said, “If you do not come up with such a scheme, Parliament will be prepared to act.” In order to act, Parliament will need to be sure that there is time available for legislation. Members are aware of my Parliamentary Standards (Amendment) Bill, and I shall make a big, bold, open offer to Front Benchers that if they wish to use it as a vehicle to open up the process they are very welcome to do so either tomorrow or later. I hope that they take up the offer.
The solution to the challenges that we face with IPSA, and to the impediments to getting to the House, lies with Front Benchers. I hope that they will take the opportunity to allow the motion to be passed, so that Parliament has spoken. I beg to move, That the Question be now put.
Question put forthwith (Standing Order No. 36), That the Question be now put.
Question agreed to.
That this House regrets the unnecessarily high costs and inadequacies of the systems introduced by the Independent Parliamentary Standards Authority (IPSA); calls on the IPSA to introduce a simpler scheme of office expenses and Members’ allowances that cuts significantly the administrative costs, reduces the amount of time needed for administration by Members and their staff, does not disadvantage less well-off Members and those with family responsibilities, nor deter Members from seeking reimbursement of the costs of fulfilling their parliamentary duties; and resolves that if these objectives are not reflected in a new scheme set out by the IPSA in time for operation by 1 April 2011, the Leader of the House should make time available for the amendment of the Parliamentary Standards Act 2009 to do so.