Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill

Anne Main Excerpts

Tuesday 3rd September 2013 Commons Chamber

[Mrs Anne Main (St Albans) (Con)]

I rise to support the Bill on Second Reading. As many colleagues have said, some measures need more scrutiny in Committee of the whole House and some need tightening.

I should like to draw the Leader of the House’s attention to one element of the Bill so that he can think about it as an area to explore in Committee. Inappropriate lobbying is a pertinent issue. I welcome the Government’s bid to clean up that murky pool and to shine a light on some of the movers and shakers behind the scenes. That is where much of the public’s concern lies. Who is gaining access behind the scenes through special relationships?

I congratulate the Government on starting the process by publishing details of departmental meetings quarterly, although they could be made fuller. Hon. Members have referred to the fact that “broad discussions” does not tell us who is lobbying on behalf of whom. Hon. Members need to know how influence is gained, where it is gained, how deals are done and who is pushing a pet project, particularly with reference to our constituencies.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Will the hon. Lady give way?

[Mrs Main]

I will give way only briefly because many colleagues wish to speak in the debate.

[Debbie Abrahams]

What does the hon. Lady make of the statistic that the Department for Business, Innovation and Skills held 988 meetings with lobbyists in 2012, of which only two would be eligible for inclusion on the register? Does that not make a mockery of the Bill?

[Mrs Main]

The hon. Lady makes a valuable point. The House is where we raise such concerns. I am sure that those things will be taken into account in Committee, and in the Political and Constitutional Reform Committee report. The debate is not about playing ping-pong with blame; it is about drawing such matters into the public domain. Perhaps that area will be tightened up. I am hopeful that it will be.

[Sheila Gilmore]

Will the hon. Lady give way?

[Mrs Main]

I will not give way to the hon. Lady. I have read only about a paragraph of my speech. Many Opposition Members wish to speak, so I am sure she will have an opportunity to intervene.

Hon. Members are the voices of their constituencies. The hon. Member for Nottingham North (Mr Allen) made exactly that point when he said that we are the strongest lobbyists. If something is not right in our constituencies, we speak up for our constituents. It is up to us to ferret behind the scenes and find out what is going on. We need to be aware of how lobbyists play and by whose rules, and the extent of their schmoozing.

I want to point out a worrying grey area that is not covered in the Bill but that could be captured as we work on the Bill in the next few days. I have been trying to track the influence of lobbyists on a major project in St Albans. I have made no bones about the fact that I am completely and implacably opposed, as is my council at every level, to a strategic rail freight interchange on 300 acres of green-belt land. I am concerned that lobbying behind the scenes may have led to a shift in the decision-making process, and have made every effort to try to find out how hon. Members, as representatives of our constituents, can find out who or what has gained the ear of influential people. I fully accept that that does not always mean the Minister—it could be someone in the Minister’s office. Members need to have a clearly defined route to find out what has gone on. Our constituents do not have that opportunity.

The project has been led by Helioslough. One of its key lobbyists is Mr Simon Hoare, who operates under various guises—it is therefore pertinent that we have a full register. We have been fighting the proposal since 2006. It has been turned down twice—once by the previous Secretary of State for Communities and Local Government, and once by the current one. There have been two refusals, but now there is a minded-to-approve decision, which has set off my radar. What has altered? The plans are the same, so has pressure been applied behind the scenes?

The last refusal was quashed by the High Court in 2011, and the process has become murky and opaque—it is very much the sort of thing that I believe the public want hon. Members to clamp down on. In this world, personal connections and relationships can come in very handy. I have dug very deep to try to get to the bottom of how much access the developer of the rail freight proposal has gained via his lobbyists. The proposal has implications for planning and transport, and for the Department for Business, Innovation and Skills. Not only one Department is involved, but many.

Like many colleagues who have concerns about the undue effects of lobbying, I asked a series of parliamentary questions—that is one route, albeit a tortuous one, open to hon. Members—and, ultimately, made freedom of information requests. I discovered in a parliamentary answer to my hon. Friend the Member for Hertsmere (Mr Clappison) that my right hon. Friend the Member for Chipping Barnet (Mrs Villiers), the then Transport Minister, admitted to having had a private luncheon meeting with the lead lobbyist for Helioslough, the developer, just after the refusal—[Interruption.] I would be grateful if Opposition Members listened to what I have to say. I am making the point that the Bill will not capture those private, personal connections over lunch, where things are discussed.

I found out that the matter was discussed over lunch in a private, personal capacity with the Minister. Since then, I have been chasing those private comments to see what they have led to. My right hon. Friend has also admitted that, since that meeting, her Department received an e-mail from Simon Hoare entitled “Radlett SRFI—The economic benefits”. Simon Hoare was tirelessly making his case behind the scenes, despite the fact that the process was closed to me and my constituents.

I submitted freedom of information requests, because the role of all Back-Bench MPs is to speak up and defend our constituents against what I would describe as inappropriate lobbying. I have the contents of the e-mails and an attached document. I also have the Department for Transport letter to Mr Hoare informing him that the e-mails were about to be disclosed. When Mr Hoare received notice that his e-mails and private correspondence were about to be disclosed, he sent an attachment, saying:

“I would prefer for my email not to be sent to the MPs”.

I am sure he would prefer that. Unfortunately for him, the Department disclosed his e-mail, which makes for disturbing reading. Among a lot of other things, it states:

“I am aware the DfT is a strong supporter of the development of rail freight”

and

“will also doubtless be aware”

of

“a number of schemes…In the last 10 years my client has incurred costs over £12 million”

on that planning application. The letter goes on:

“I do not believe that DCLG has a clue as to the costs of the planning process…While appreciating that DCLG is a quasi judicial role vis à vis the Public Inquiry, anything your department can do to press the case for a speedy and supportive decision would be a real shot in the arm…As a courtesy, I ought to advise you that we are also in contact with HMT…and…BIS.”

I would not have known that without a freedom of information request. It goes on to say a lot more, but my time is constrained.

This is what we have to clamp down on. I am sure that this is sounding very unhelpful, but at least this Government are tackling it—[Interruption] They have an opportunity to tackle it through the Bill. Sadly, such private meetings will not be covered by the current proposed legislation—that is the point I am making. I am sure that the Minister would like to know that I have asked the Library about this matter. It has confirmed that this is still a grey area, even with the introduction of the Bill: it will be up to Ministers to decide whether they feel that they have been influenced over lunch and a good glass of wine.

I give the Department for Transport some credit for letting me see the information trail. So far, the Department for Business, Innovation and Skills has not let me see anything, saying that it did receive documents and correspondence but that letting me know all about it would involve a disproportionate cost. Well, one Department can let me know and I do not like what I read—it stinks. Something has changed a decision affecting my constituency. Somebody beat up somebody in some Department somewhere and said, “Make this thing happen, please”. I know we have an economic imperative to get Britain moving, but not by building an inappropriately located rail freight interchange.

I have asked parliamentary questions and I am dissatisfied with the level of response. My freedom of information requests have been rather more fruitful, but at what cost? The paper trail involved in trying to get to the evidence is not without cost to the taxpayer. I have gone to the Information Commissioner for adjudication on the rather opaque way that this matter has been dealt with. As the duly elected representative of my entire constituency, I represent everybody, as we all do in our constituencies, not just Conservatives. If this decision is imposed on them, they have a right to know that any lobbying has been transparent. I am not anti-lobbying—I lobby like crazy on behalf of my constituents—but I want to know who has had cosy lunches and I want to know if quiet conversations behind closed doors have effected changes of mind. I want to know, on behalf of my constituents, whether lobbying is helping to change decision-making processes.

In the end that is surely what we should all be agreed on, as the hon. Member for Nottingham North said. We should all want fairness from the Bill. Given that the Library has admitted that this is a grey area and that at the moment the Bill does not capture this—it perhaps captures a few other things—I desperately hope that we can come up with guidance on the Floor of the House. If not, those cosy conversations will increase, and paper trails will be quietly hidden away—nobody can track down a quiet conversation over lunch.

I thank my right hon. Friend the. Member for Chipping Barnet, who admitted that the application was discussed. I gave her the courtesy of letting her know that I would refer to her correspondence. She admitted that additional information was later sent to the three Departments—I have the proof of that. The trail has gone somewhat dead and I am disappointed about that. I am still hopeful that there is time to see sense and overturn the decision, but what has come out of this situation is the unedifying spectacle whereby I can go through many weeks of appeals with my constituents in the public domain where everyone can hear everything and then, unbeknownst to us, when the process is stalled, the developer can have private lunches at which, because there happens to be a university connection, old friendships have been called in. That is not acceptable; that is not democracy. I am sure that the Bill will now appropriately consider this grey area.

--- Later in debate ---

[Stephen McPartland]

I am delighted that we are the most transparent Government ever. I cannot imagine any of our Ministers wanting to remove those provisions, but that is one of the matters that could be debated and tightened up in Committee next week.

We are the most transparent Government ever, and transparency is very important to me. I know that this is not an appropriate time, but there should be a debate at some point about whether privacy is a 20th century concept and transparency is a 21st century concept, given that we spend so much of our lives online and involved in the data world. For me, transparency is key, and that is why I support the Bill. Part 1 represents the first step towards recognising that lobbyists might have some influence. That might not go far enough for some Members, but we should agree that it is a step in the right direction and support it for that reason.

[Mrs Main]

I thank my hon. Friend for complimenting me on my comments on lobbyists, who have enormous influence. The fact that the case I mentioned involved two refusals followed by a permission being granted not long after a significant amount of heavy lobbying suggests the amount of influence that they really have. That is what we need to debate today.

[Stephen McPartland]

My hon. Friend makes another wonderful point. As I have said, that was the first example I had heard of a lobbyist having any influence. I am sure that his clients were delighted, as they had probably spent a lot more than the £12 million they spent on getting the planning permission on employing previous lobbyists who had no impact whatever.

Government procurement is an incredibly bureaucratic process that can go on for ever. We all have small businesses in our constituencies that struggle to engage with those bureaucratic procedures that never really get anywhere. I question how much influence those procedures have, but the Bill represents a step in the right direction.

I want to move on to part 2 of the Bill, the part that has elicited the most consternation today. I understand that charities will still be able to support specific policies advocated by political parties if that will help them to achieve their charitable purposes, and that the law currently prohibits them from engaging in party politics or party political campaigning, from supporting political candidates or from undertaking political activity that is unrelated to the charity’s purpose. The Bill seems to be dealing with trust. The Government trust the charities to engage in the policies that they want to engage in, and to do so responsibly. There also seems to be a lack of trust on the part of the charities, however, which is understandable. They are regulated by the Charity Commission, and a number of concerns and grumbles have been expressed about that over the years. The charities are asking for more specific guidance. Many of the issues that have been brought to my attention will be relevant under the current law. The charities are already having to make a judgment call under the existing law about whether their activities would affect the outcome of an election and whether they are dealing with regulated expenditure. Many of those issues are already relevant today.

I was asked earlier about the spending limit. Reducing the spending limit from just under £1 million to just under £400,000 is a positive step. Taking the big money out of politics is the most important thing—[Laughter.] Opposition Members might laugh and joke about that, but I remember when the Political Parties, Elections and Referendums Act 2000 was introduced and the Electoral Commission came into being. One of the prerequisites of being employed by the commission was that a person should have had no experience of doing anything related to elections. The process was approached from the point of view that all the local organisations that we represent are hugely well funded by mysterious millionaires behind the scenes. I can assure hon. Members that the only millionaire funder in my constituency does not support my party; they support the party to which the previous Member of Parliament belonged.

The introduction of the Bill is a positive step because it allows us to talk about the issues of transparency that matter to the public. Like many Members, I have had a lot of e-mails about the Bill from various organisations. I had one from an organisation whose name I shall not deign to mention that referred to a “gagging” Bill. The Bill will do no such thing. Not one of the 400 charities and organisations in my constituency has complained to me about the Bill, and none of them would consider themselves to be involved in political campaigning.

--- Later in debate ---

[Thomas Docherty (Dunfermline and West Fife) (Lab)]

I feel that we are almost repeating the debate we had in January, when I introduced my private Member’s Bill on lobbyists—I think today’s turnout is slightly higher than it perhaps was on that Friday. I am sorry that the Government have not reflected on that debate or on last year’s excellent report by the Political and Constitutional Reform Committee, and have introduced this dreadful Bill.

Owing to time constraints, I will speak about part 1, but, in the interests of transparency, let me put on record the fact that my wife works for a charity in Scotland and is therefore indirectly affected by the proposed legislation.

Fred Michel, Adam Werritty, Fiji-gate, MPs for hire like cabs, peers for questions—all are scandals that have blotted Parliament and politics in the past four years. It is not an unreasonable test to ask the Government which, if any, of those scandals this Bill seeks to prevent from happening again. The harsh reality is that part 1 of the Bill would have avoided none of them, because the Government have drafted it so narrowly—I suspect deliberately—that the only type of activity covered is direct communication with a Minister of the Crown and a permanent secretary. Therefore, if a lobbyist or even a consultant lobbyist communicates with a private secretary—I would suggest that the Prime Minister’s private secretary has a great deal of influence, perhaps more than the Deputy Prime Minister, on certain areas of policy, such as tobacco packaging and other things—that will not be covered. If, as the hon. Member for St Albans (Mrs Main) said, a lobbyist speaks to a senior official in the Department for Transport, that is okay, provided it is not the permanent secretary. If a lobbyist speaks to the special adviser, as Fred Michel clearly was in the News International scandal, that would okay. That is a failure of the Bill; it is one that I cannot support this evening.

[Mrs Main]

For clarification, may I point out that I was referring to a private lunch with the Secretary of State for Transport?

[Thomas Docherty]

I am grateful to the hon. Lady, because I intended to come to the point she made. It is an important point and one that I raised this morning. I had a meeting with the Deputy Leader of the House and the Parliamentary Secretary, Cabinet Office, the hon. Member for Norwich North (Miss Smith). It was very civil and I got a cup of coffee out of it, but I do not think we made much progress in agreeing on very much.

The problems with the Bill are so fundamental that even the impact assessment is wrong. The civil servants who drafted the Bill—who, ironically, would not be covered by the lobbying Bill they are seeking to introduce—have failed to understand the lobbying industry. That is not surprising, given that they failed to meet anybody, from either side of the argument, in the last 12 months. They have not met Spinwatch, Unlock Democracy, Charter88, the charities or the Association of Professional Political Consultants—I could go on. Those civil servants have met nobody. They have stuck their fingers in their ears and produced a Bill that no one in the industry or on either side of the argument is prepared to support. That is a shocking state of affairs.

The civil servants who drafted the Bill have also misunderstood how to calculate the number of lobbyists. Their impact assessment claims that there are between 800 and 1,000 lobbying firms, but the evidence to the Political and Constitutional Reform Committee shows that there are fewer than 100. So the £500,000 that it will cost to set up the register, and the £200,000 a year running costs, will have to be met by 50 or 60 firms. Great free-marketeers and defenders of business such as the hon. Member for North East Somerset (Jacob Rees-Mogg) should join us in the Lobby tonight, because the burden that that will place on the companies caught by the legislation, many of which are small businesses, is ridiculous and disproportionate. The Bill will do nothing to solve that problem.