Parliamentary Standards Act 2009

Debate between Andrew Smith and Adam Afriyie

Thursday 15th December 2011 Commons Chamber

[Adam Afriyie]

That is a fascinating statistic. We had a session in which we looked in particular at value for money, and that message came through loud and clear. Anyone in the House with a background in business or in a medium-sized organisation that runs an expenses system will recognise that something needs to be looked at if the cost of processing a large minority of the claims is higher than the value of the claims themselves. Some of the recommendations are very much directed at helping IPSA to move to a system that is less expensive to operate and in which taxpayers’ resources are being spent as they would wish: on activities such as supporting democracy and ensuring that constituents are serviced, rather than supporting unnecessary bureaucracy.

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

What would the hon. Gentleman say to the argument that the public might well see it as rather self-serving of MPs if his cost-saving proposals had the effect of there being less scrutiny of the money that they spend? Would not the public, in the wake of the scandal, be particularly concerned about that?

[Adam Afriyie]

That is absolutely right. The right hon. Gentleman could have been a member of the Committee, because that was exactly the attitude adopted by every member throughout. We asked ourselves, “Can we, with our recommendations, improve the transparency and the accountability to the public beyond what is being offered under the current regime?” That was exactly the direction of travel and I urge the right hon. Gentleman to have a good look through the 19 recommendations, because he will see that we seek to address that issue.

--- Later in debate ---

[Adam Afriyie]

I suspect that we have some of those problems in the House as well.

On recommendation 18, in the Welsh Assembly and many others throughout the world a figure is set for the duration of a Parliament. We now have fixed-term Parliaments for five years, but the Committee felt that, even if we did not, it would be far better to select a figure that remained the same for the entire Parliament. Then we would not have the constant moving around and unnecessary changes that we currently experience. The situation seems to work very well in Wales with the Welsh Assembly and elsewhere, so we recommend not that IPSA introduce the proposal, but that it look at it, so that we do not have stories every three months about another change—another shift in the level—and whether a figure relates to RPI or to CPI. Let us forget all that and just have a fixed figure that runs for a Parliament.

[Mr Andrew Smith]

I am grateful to the hon. Gentleman, who is being generous in giving way. I take him back to recommendation 17(c), which states:

“In not more than six months’ time, the House should have the opportunity to consider the merits of that cost-benefit analysis and evaluation”—

which the hon. Gentleman referred to—

“and to make a decision on whether there should or should not be a system of regional supplements instead of the existing travel and accommodation provisions.”

Does he accept that that is wrongly worded and inconsistent with what he has said? I, for one, would find it unacceptable because it compromises the independence of IPSA.

[Adam Afriyie]

We can quibble about one word in a report that is 100 pages long. I am telling hon. Members on behalf of the Committee that that was not the intention. The intention was simply to express a view about whether that was something that we would like to see. Basically, it would be like another recommendation to IPSA.

I hope that there is not going to be some massive argument about the issue; I have just made it absolutely clear to the House what was intended. By the way, I have also put the matter in writing to Front Benchers. Furthermore, I have now stated that I imagine that there would be a statement or early-day motion that said, “The House’s opinion is that we like it or do not like it.” The issue is for IPSA, not the House, to decide. We are looking for demons where they do not necessarily exist.

Review of Parliamentary Standards Act 2009

Debate between Andrew Smith and Adam Afriyie

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.