Review of Parliamentary Standards Act 2009

Andrew Smith Excerpts

Thursday 12th May 2011 Commons Chamber

[Adam Afriyie]

From my observations of the system in Scotland in particular, and the system in Wales, I think there are certainly some virtues in the way they operate. I have also conducted a review of 27 different systems around the world, including those in Canada, Denmark, some of the Scandinavian countries and particularly Germany, and it is clear that they take a very different view of how expenses and remuneration systems should operate for members of their Parliaments.

That was not a scientific review, but there were certainly some very clear patterns. In Germany they have said it would be utterly ridiculous to lumber the taxpayer with the cost of receipting tiny claims, because the cost would be disproportionate to the benefit to the taxpayer. That is something that a review would need to consider, but I do not wish to pre-empt where it might go. It would need to take evidence and take a very careful look at comparisons from around the world. One or two other nations have what are called sessional indemnities and different, very simple arrangements for office accommodation and housing for their members. That is something we need to look at.

A key area that I hope the review will look into is the situation of Members who are not of independent means—those who do not have large outside incomes, trust funds or inherited wealth, and those who did not have incredibly successful businesses or professional careers before arriving here. In many ways, I think we have to consider whether the expenses system is penalising such Members for not being wealthy. There is a danger that if, as I have said, 92% of Members are not claiming what they are entitled to claim, this place will become a place only for those who are wealthy.

The motion simply asks the Committee to conduct a review of the 2009 Act. I hope there will not be dissent today. This issue of expenses is incendiary, but it is our duty in this place to act without fear or favour in the interests of democracy, our constituents and the taxpayer. A calm, methodical review of the 2009 Act is a very important step, and is part of the process.

[Mr Andrew Smith (Oxford East) (Lab)]

Does the hon. Gentleman agree that it is critical that the House should uphold the fundamental importance of independence in these matters, which is absolutely crucial to restoring public confidence after all the scandals?

[Adam Afriyie]

It is my personal view, and that of many Members, that it would be a very strange day if we were to start determining our pay or rations once again. I do not think that anyone wants to head in that direction, and I have not heard of many people wanting to do so. The independence of the body setting the level of remuneration is a good thing. Whatever any review sets out to do, it must ensure that that independence is maintained. Indeed, it could even be enhanced. With those remarks, I urge Members to support the motion. Let us have a calm and sensible review of where we are.

--- Later in debate ---

[Mr Harper]

As with all reports from Committees of this House, the Government will look carefully at the recommendations. I do not think that my hon. Friend would expect me, given that the Committee has not even been set up, let alone started its work, to give assurances that the Government will carry out its every recommendation. The Government will of course study its recommendations. If its recommendations are about process, the scheme and how IPSA operates, they will be for IPSA to consider. Only if they are recommendations for legislative change will they be for the Government to recognise. Every Member who has spoken in this debate has confirmed that they are in favour of an independent and transparent scheme for paying our costs. Clearly, even if Members thought that there were issues, they would not immediately want the Government to rush into legislating. The right hon. Member for Leeds Central said wisely that when this House legislates on such matters in haste, it often comes to repent it.

The Government will look carefully at the considerations that the Committee makes, and I hope that IPSA will look carefully at them. If the review is carried out in that spirit, I think that it will be very productive.

[Mr Andrew Smith]

I want to underline the importance of the point that the Minister has just made. Will he assure us that the Government’s response will scrupulously and absolutely uphold the independence of IPSA?

[Mr Harper]

Yes; I have said that several times and it is important. Although this House has many new Members, it is important that we remember why we got to this position. We have to ensure that we move things forward, and focus on independence and transparency. We have had debates recently on our pay, and the consideration of our pay will be moved across to IPSA in the not-too-distant future. Its independence is important so that people have confidence. The Committee, when it is set up, will have to remember that the recommendations it makes about the scheme and the operation of the scheme will be made to IPSA.