Commercial Lobbyists (Registration and Code of Conduct) Bill

Andrea Leadsom Excerpts

Friday 1st February 2013 Commons Chamber

[James Duddridge]

My hon. Friend nods and I am grateful to her. I have looked at part of those responses, although not at them all. Perhaps in her concluding remarks she will indicate when the Government will respond to the consultation as that would be helpful for the House. I would certainly find it interesting to read the Government’s response alongside the summary of responses to the Cabinet Office consultation document, “Introducing a Statutory Register of Lobbyists”. The majority of respondents welcomed the Government’s commitment to achieve greater transparency and were supportive of a statutory register of lobby interests. However, there was a definite overlap between the responses on definition and scope; the definition presented a particular issue for many respondents and there was a widespread recognition that arriving at the right definition would be fundamental to the register’s effectiveness. The Bill completely sidesteps that issue, despite making an attempt to define lobbying.

The overarching theme that emerged from the consultation was that the proposed definition was narrow, and a number of respondents stressed that until the definition was clear, it would be difficult to determine other factors raised by the subsequent questions, especially scope. There was also considerable support for consistency in application to ensure equal treatment of all parties. In keeping with the emerging theme on definition, the predominant view expressed under the question of scope was that a wider scope was preferred but that that should not result in disproportionate burdens. That is very difficult to do; I suspect that a balancing act will be needed in relation to scope, and what is in the code and who should be subject to it.

There was general consensus among respondents that it was difficult to address the question of the information to be provided without clarity on definition and scope. The majority of respondents favoured the disclosure of financial information alongside other information. Such an approach is entirely right; it is insufficient simply to say, “You are lobbying on behalf of A, B or C.” Although I said that more information should be available, people can become bogged down by information if we are talking simply about volume over a small number of categories and they might not be able to see the bigger picture. One can imagine lobbyists listing client upon client and our then finding that they are billing some of them only a few thousand pounds, whereas they might be charging some of the bigger clients £1 million. Such information allows us to estimate the size of the work that they are doing, which then allows people to track things down. They can ask, “Why are X, Y and Z companies getting £1 million? Why are they on a £1 million retainer for this?” People would be able to examine the marketplace, see what lobbying activity they have said they have done and see press speculation. If there is any gap, people could investigate further, so that information would be very useful.

We have already discussed when the register should be updated. The idea of a formal publication quarterly could work, although we could force people to register slightly earlier and put things on the internet. The idea that we should have a quarterly written publication that is produced and pumped out to all interested parties is somewhat old-fashioned. It would be quite possible to have a rolling register on the internet. That may be more appropriate, even if it were to contain only a rolling number of names of individuals and amounts, prior to a formal publication each quarter, if indeed that were needed. In the case of some of the specific examples discussed today, it would be essential—this is more than a preference—for us to have that information on a regular basis.

We have already discussed funding, so I will not detain the House any longer on that. Interestingly, there was support for strong sanctions to apply to those on the register, so we must ask what happens when things go wrong. We have not debated that at great length, but it goes to the heart of the matter. If someone could carry on acting in the same way, there would be little point in the register. This is not a monitoring exercise. We should not feel better about ourselves just because we catch people doing wrong—or what we perceive to be wrong. That is what we legislate for; this should be about improving the quality of democracy. We need to consider the sanctions. We need to consider how we fine people and whether it is purely a matter for the lobbying registration council or whether the state should take a greater view. Are we going to say that in some cases it is a criminal offence to do certain things in respect of lobbying rather than saying that it is an offence against the lobbying registration council that will be punished internally? Are we saying that the law is sufficient at the moment? This matter is crucial and, as on the code of conduct, it will be incumbent on the Government when they publish a draft Bill to give us a copy of the documents that they are proposing, even if some of the detail is not included and even if the documents are only in draft. Without that information it will be very hard to see from the Government Bill whether it is indeed the appropriate way forward. Cross-party support would be encouraged by the publication of as much information as possible, particularly on the issue of sanctions, which has not been touched on during this debate.

I was going to go into more detail on the definition of lobbying, but I do not wish to do that now as we have covered a lot of that territory. However, I would like to caution against accepting the lobby industry’s definition of lobbying. Clearly, if the industry had been operating well, properly and transparently in the interests of democracy, we would not be here today. So it is somewhat ludicrous simply to say, “Well it is agreed by the industry” and then move forward.

Clause 4(2) exempts the activities of Members of Parliament from the definition of lobbying, and I very much welcome that. Clause 3(3) deals with the issue of passes, and I was disappointed that the words

“or former member of either House”

found their way into the Bill. I listened to the reasons that the hon. Member for Dunfermline and West Fife gave, and I think he disagrees with that provision but left it in the Bill out of courtesy to other Committees of the House that were considering it. It would be wholly inappropriate if the duties we put on a lobbyist—someone trying to lobby this current House—were less for a ex-Member of either House than for a member of the public. Someone is either a Member of Parliament or an ex-Member of Parliament, and I do not think we should blur the lines on lobbying.

I have outlined the case for caution, and I wish to discuss the arrangements in other countries. However, for the sake of the debate, before I do so I shall touch on issues in the United Kingdom. The UK has a specific problem with commercial lobbying in the House of Commons, and it relates to all-party groups. We have not discussed this matter in detail, but we have touched on it tangentially. I am sure that many of us here are members of all-party groups, which provide a strong function for the House of Commons, despite confusion among the public as to what an all-party group does and what a Select Committee does. Sometimes, these groups are sparsely attended by MPs and Lords, but are very professional operations, and sometimes at their heart are industry lobbyists.

I was once surprised in Parliament to bump into an old friend with an interest in politics, because I thought they worked in outside industry. They were not of an age at which I would have expected them to be an intern, and neither were they one of the more senior staff members. I could not see their pass, so I asked, “What brings you here?” They turned it around, and it was a blue pass. I am not sure if you are familiar with blue passes, Mr Speaker, but they are for all-party groups. This individual was paid by an external lobbying organisation and had a House of Commons pass not issued by an MP. I am not sure who issues them.

[Andrea Leadsom (South Northamptonshire) (Con)]

Is it not astonishing that all-party groups are issued with passes, but our colleagues in the European Parliament are not?

[James Duddridge]

I will not be tempted down that line, because I suspect I take a different view in relation to MEPs. It would be an interesting but fruitless tangent to this debate.

It is shocking that people can get passes as staff of all-party groups. If I was a chair or senior officer of an all-party group and had a spare pass—we are allocated three or four passes—and, in my name and on my authority, granted it to an individual working for an all-party group, that would be fine. I would be taking personal responsibility for their behaviour on the estate; such people would be representatives of parliamentarians. It is wrong, however, that paid lobbyists have passes not signed off by an MP. Our passes are rationed, as we can issue only three or four, so I have to decide, for instance, whether to issue one to my caseworker who occasionally comes up from Southend. As well as rationing, there must be a proper analysis of what passholders are doing here.

On 2 January, The Times published an interesting investigation into the funding of all-party groups that again raised the issue of defining lobbying. In some cases, organisations have good reasons for funding all-party groups; for instance, they might want a genuine debate on their broad subject area. I am sure, however, that we have all felt uncomfortable about the dominance of funding in certain all-party groups or about what the secretariat was doing—who is it representing, is it genuinely representing the Lords and MPs or the people who pay the secretariat?

Having said that, it would be inappropriate to throw out all the secretariats and financial relationships. For instance, I spend a lot of time on African issues, many of which cannot easily be funded by commercial organisations or the countries themselves, and in those cases it is entirely appropriate to have academic institutions funding secretariats. I am less comfortable, however, with big businesses funding such arrangements. The Times thought that at least a dozen all-party groups had received funding or benefits from outside organisations in the past 12 months, with the amounts involved totalling more than £1 million a year.

I think that Members might be sleepwalking towards potential problems. A couple of times, I have been asked to sign up to an all-party group of perhaps tangential interest to me or my constituency. On those occasions, I have lent my name to the group with the intention of attending perhaps only one or two meetings a year, but these groups meet regularly and churn out reports that are perceived to carry the authority of the House of Commons. Quite often in the morning, Radio 4 will mention a report from the House of Commons. Sometimes, it refers to a Select Committee report, but sometimes I think, “That’s a little odd; the Committee wouldn’t have said that,” and it turns out to be an all-party group funded by outside support. Given our limited resources for members of staff, it is often only with outside support that we can produce an extensive paper.

I would therefore like the Bill to take account of all-party groups. I have raised the issue of blue passes and have tabled a few probing written questions about the number of people involved.