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

Baroness Hayter of Kentish Town Excerpts

Tuesday 5th November 2013 Lords Chamber

[Baroness Hayter of Kentish Town (Lab)]

My Lords, I support Amendment 1, moved by the noble and learned Lord, Lord Hardie—perhaps I should say the noble and wise Lord, Lord Hardie, given his masterly introduction. I wish to speak on the last amendment in this group—Amendment 143—in the names of my noble friend Lady Royall and myself, and also on Amendments 2, 7, 8, 11, 13, 16, 37, 38, 39, 41, 42, 47, and 99, together with various others, on which our names are joined with that of the noble and learned Lord, Lord Hardie.

However, Amendment 143 is perhaps the simplest and is the key. It would amend the title of Part 1 to read, “Registration of professional lobbyists”. Establishing a register only of consultants would add nothing to the existing non-statutory register. Worse, it would effectively end that voluntary register, its associated code of conduct and related disciplinary mechanism. As UKPAC says, the Bill risks creating a statutory register with minimal coverage while undermining a voluntary regime that lists several hundred employers such as agencies, in-house lobbyists, public bodies and charities, and more than 1,000 people employed in lobbying.

Indeed, the proposed register—a skeleton rather than a viable thing—would cover only 1% of lobbying meetings, yet would be a heavy financial burden on consultant firms because they would have to fund the whole operation of the registrar. As the noble Lord, Lord Norton, has said, the register would fail to increase transparency because it would not enable the public to see how outside bodies seek to influence the political system.

On the “Today” programme, which I assume we all listen to, Andrew Lansley said last week that the public should be able to see who is lobbying Ministers. I think we all agree, but the register will not tell you that if you saw only the list of clients and not the particular client on whose behalf even a consultant was meeting a Minister. The register would tell us nothing about the big six energy companies’ discussions with perhaps HMT or DECC officials. Indeed, we would learn about only their meetings with Ministers—and would learn that from the departmental diaries, not the lobbyists themselves.

Most seriously, the proposed register would exclude virtually all business lobbying, whether done by companies themselves or by their trade bodies. The Minister needs to tell the House whether that really is the intention. Does he really want a list that excludes the bulk of lobbying activity? Last year, BIS had 988 meetings with lobbyists, only two of which were with consultants. Under the Bill, only those two meetings would need to be entered on the register. Thus the register would capture fewer than 1% of ministerial meetings and do nothing to shed light on what goes on behind those closed doors in Whitehall.

Big government decisions often involve big business which—quite rightly and with no criticism—want to influence decisions that affect their bottom line. There is nothing wrong with Ministers, civil servants, Bill writers or anyone else meeting those who will be affected by legislation. In fact, had Ministers met those affected by Part 2 of the Bill, we might have saved ourselves half an hour earlier this afternoon and not have been presented with such a dog’s breakfast. More importantly, for the rest of us, for democracy and for good governance, we need to see who is lobbying Ministers and civil servants. Those who will not be covered, in addition to those mentioned by the noble and learned Lord, Lord Hardie, will include: the British Insurance Brokers’ Association, which recently produced a manifesto for insurance for 2014; the Building Societies Association, which has been lobbying on the Banking Reform Bill; the Mobile Operators Association, which has been lobbying about the electronic communications code; Philip Morris, which sought to delay the tobacco products directive; the National Federation of Occupational Pensioners, with the associated Keep Me Posted campaign; the Save Our Supplements campaign and Holland and Barrett, which makes supplements and spends money on reaching politicians; Fujitsu, which is keen to meet us, whether in Parliament or at party conferences; Forest, which argues for us to keep the freedom to kill ourselves with tobacco; One Hub or None, Heathrow’s campaign for expansion; BAE Systems, builders of killer planes and warships, which are, in its words, “defence solutions”; the CBI; the Nuclear Industry Association; Santander; Canon; and Siemens.

Noble Lords will recognise that list as containing just those whose material has passed over our desks in the past few months. There are also the pharmaceutical companies, and the drinks industries have been mentioned. They contrast with Alcohol Concern, which is too small to have in-house lobbying and thus has to rely on an agency for lobbying assistance. They all use in-house lobbyists and therefore will not have to register. The same is true of virtually every other manufacturer, service provider or audit firm which wants the ear of government. I am not against that dialogue; in fact, I rather favour Keep Me Posted, as my bills come by post so much more slowly than by e-mail.

I am delighted that we were lobbied about this Bill, but that is not the point. The question is: why should only lobbying consultancies, rather than those that do serious lobbying on behalf of their own company, have to register? That is not what was foreseen in the coalition agreement and it is not what the industry itself wants. The overwhelming feedback from the consultation last year was that the proposals lacked breadth and depth and would fail to collect meaningful and sufficient information.

Furthermore, requiring only those employed by a consultancy to register would mean that it would be cheaper for lobbyists to work directly for a company, if only part time. For example, they could perhaps work for 10 companies rather than run a consultancy with 10 clients. If a company wanted to have its dealings excluded from the register, it would only have to pull its hitherto outsourced person on to its own wages bill and then, as an in-house lobbyist, they would be below the radar.

It is not just business lobbyists who want to see a full register. Charities and trade unions, including Oxfam, which has been to see me, have told us that they are very content for their public affairs professionals to be included on a register and to disclose their lobbying meetings.

Therefore, we support Amendment 1 and the production of a proper, comprehensive—the word used by the noble Lord, Lord Norton of Louth—and statutory register of all professionals engaged with government and Parliament. Democracy demands nothing less.

[Lord Campbell-Savours (Lab)]

My Lords, unfortunately I was unable to attend the Second Reading of the Bill due to the fact that domestic committees of the House were meeting and I was otherwise engaged. However, I have read the whole of the Second Reading debate.

It is quite clear that the Government have not really put a case for what they are doing in this very limited form. One speech that struck me from reading the debate was that of the noble Lord, Lord Norton of Louth, who suggested that a very different approach to the Bill could well be taken. I just wondered whether Ministers had considered the contents of his contribution. His is a sort of halfway-house proposal: it would dilute the value of the register but would ensure that the kind of information that we really need was available. Today, he slightly alluded to his case, and I believe that the questions he raised at Second Reading should be answered during the deliberations on the Bill. I cannot understand for the life of me what is driving the Government down this route, apart from some huge PR effort to convince the public that they are doing something about lobbying in line with their coalition agreement. However, their proposal does not meet the terms of what I understand was agreed.

I have a number of questions that I should like to ask, and I have tabled amendments of my own, to which we will come later. What is the Government’s latest estimate of the number of organisations and individuals that will register? Some work on that must have been done. I have seen some figures published but, in the light of the speeches at Second Reading showing up the deficiencies in the Bill, and recognising that many will not be required to register because they will not meet the criteria for registration—information which, prior to Second Reading, the Government may well not have considered—what is now their estimate of the number that will finally register?

I should like to know more about the discussions that took place between departmental officials and Ministers and the professional associations. Since the early 1970s, in one form or another—I shall give more detail later in the debate on the work that was done in the 1970s and 1980s in this area—a system has been in operation which provides far more information than the Government are seeking the lobbyists and lobbying organisations to provide. It has been suggested in this House and in correspondence that we have received that their efforts may no longer be necessary. Some of them may be inclined simply to discard the work that they have been doing over the years and rely on the Government’s far more limited source of information. Surely that would be totally counterproductive. I wonder whether Ministers or civil servants have been told what the intentions are. I think that the House is entitled to know what the professional organisations intend to do in the event that this register is set in place.

Finally, on in-house lobbyists and their exclusion, it is simply not credible to call a Bill the name given to this Bill when it excludes the vast majority of lobbyists in the United Kingdom. It is not credible; it is a joke. Inevitably, there will be some scandal which will draw attention to the deficiencies in the registration system that has been set up by the Government. It may be for a future Government to find themselves defending the indefensible. I hope that the Minister can answer some of my questions prior to my moving my amendments.

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[Lord Wallace of Saltaire]

My Lords, we are more persuaded from other countries that have the light-touch system we are proposing that it is more effective at addressing the problem than the large, expensive and comprehensive system the Canadians have gone in for.

There are a large number of amendments in this group. I will try to address as many of the issues as I can.

[Baroness Hayter of Kentish Town]

My Lords, before the Minister goes on to the detail of those, I think he has not answered the point—it was made more at Second Reading—of why the existing publication could not simply deal with this. If any Minister meets a consultant lobbyist they name the organisation on behalf of which they have met that consultant and the purpose of it. I still do not understand why that would not meet the objectives there seem to be for the register.

[Lord Wallace of Saltaire]

My Lords, there was considerable concern while the previous Government were in office that consultant lobbyists were a powerful element in our political system, that we did not know who they represented and that it would be better if the public were informed who their clients were. The noble Baroness has, on a number of occasions, stressed the point that perhaps one should also add what subjects they are discussing with the Government. I am very happy to take that away and perhaps on a belt-and-braces principle that should be tied in. However, I do not think it takes away the issue that for transparency of the democratic process it is desirable to know who consultant lobbyists are representing and who therefore is paying them.

Perhaps I may move on to answer some of the questions. The noble Lord, Lord Campbell-Savours, asks what our assessment is of the number of lobbying organisations that will be required to register. Our current estimate is that it will be somewhere in the order of 350. We have held a number of constructive meetings with representatives of the industry at which we discussed the voluntary register and the code of conduct, and we have talked with the three main industry bodies concerned. They were able to give a reassurance that many of the concerns regarding the application are being met by that.

I turn now to the details. As I said to the noble and learned Lord, Lord Hardie, if the tobacco industry lobbies on behalf of its own industry, we know what is going on. If it is a consultant lobbyist lobbying on behalf of the industry, that is a great deal less clear. That is the underlying distinction between a consultant lobbyist and a professional lobbyist. Because I am concerned with the EU balance of competences exercise, over the past nine months I have read a great deal of evidence produced by the Scotch Whisky Association. I know exactly where the association is coming from and what it is lobbying about. If it were a consultant lobbyist, that would be a different situation. That is the distinction we are making.

On the question of whether we extend this to professional lobbyists, I cannot see the justification for excluding charities from it. As a Minister, I have met a number of charity representatives who have lobbied us on policy issues. That is quite properly a part of what charities themselves do.

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Moved by

[Baroness Hayter of Kentish Town]

5: Clause 1, page 1, line 6, at end insert “and the person has signed up to the Registrars’ code of conduct”

[Baroness Hayter of Kentish Town]

My Lords, in moving Amendment 5, tabled in my name and that of my noble friend Lady Royall, I shall speak also to Amendment 93. I would expect a Bill on lobbying to do two things. First, it should show who is lobbying whom over what, which was the issue of the first two groups of amendments. Secondly, it should raise standards in the industry to help make it a profession, with all that that implies for ethics, training and good practice. As I made clear earlier, I am not against lobbying. Like many other noble Lords, I spent too many years seeking to influence civil servants and politicians, sometimes with success and sometimes with none, but always, I hope, by employing honest arguments and with the most open of motives and the cleanest of hands. For me, it is particularly sad that the golden opportunity for this Bill to introduce a requirement for registered lobbyists to abide by a code of conduct has been lost. A code is absolutely key if we wish to raise standards.

We are not arguing for a code to be spelt out in the Bill—far from it—but we are arguing that the registrar, after discussion with representatives of the industry, should be able to adopt or approve a code; and that, if it was shown that someone had breached it, that would lead to a sanction. It would signal to the industry how the registrar judges any misdemeanours. It would be a code rather like the one that noble Lords sign at the Table as we take the Oath, and anyone putting their name on the register would also have to sign up.

The Sheila McKechnie Foundation states that,

“an effective register would include an obligatory code of conduct for all registrants, along with clear sanctions for non-compliance or breaches”.

Indeed, we need to be able to prevent the worst offenders from continuing to practise by removing them from the register, but without a code and the power to judge someone in reference to it, how will we see offenders taken out of this industry?

Understandably, the Government do not want a statutory code written into the Bill. Nor do we, but neither that nor their response to the Select Committee report explains why they do not want to make it mandatory for the registrar to give approval to a code that she or he has drawn up or endorsed in consultation with the industry and other stakeholders. Just as the royal charter does not itself set up a press regulatory body, but simply ensures that whatever is established is up to standard, so the Bill should simply require the registrar to endorse and lay before Parliament the code against which she or he would judge the behaviour of anyone on the register. The code would set the standard for the behaviour of those who seek to influence the Government of this country. I beg to move.

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[Lord Wallace of Saltaire]

My Lords, the Opposition’s proposed amendment would prohibit lobbying unless the person had signed up to the registrar’s code of conduct. Their new clause would require the registrar, after consultation with relevant stakeholders, to produce a code of conduct which would include a provision that any inappropriate relations between lobbyists and parliamentarians were strictly forbidden. Amendment 108, which has been grouped elsewhere, would enable the registrar to impose civil penalties for breaches of the code of conduct. The Government are not persuaded that a statutory code of conduct is appropriate, and I suggest that the proposed amendments are based on a miscomprehension of the role of codes, either statutory or voluntary, in the regulation of lobbying. The Opposition appear to suggest that such codes are in existence and are operating successfully in other jurisdictions. Perhaps I may draw their attention to international examples of statutory codes of conduct, of which there are very few.

The Australian statutory code of conduct establishes a statutory register of consultant lobbyists and prohibits the lobbying of government on behalf of a third party without registration. That is exactly what this Bill provides for and, if that is what the Opposition are seeking to achieve, the amendments are not needed. In Canada, the Lobbyists’ Code of Conduct promotes three principles—integrity and honesty, openness and professionalism—and requires that lobbyists act transparently, that they respect confidentiality, and that they avoid conflicts of interest. That code is not a statutory instrument and there is no sanction for non-compliance other than a report from the registrar outlining the lobbyist’s misdemeanour. That is appropriate, because determining non-compliance with these very broad principles is a challenging, uncertain and subjective process.

We have not been able to identify any international precedent for the type of code the Opposition propose. Indeed, even the overwhelmingly high-regulation system in the USA, which requires a 900-plus page handbook to aid compliance, does not incorporate a statutory code of conduct of this sort. Perhaps the fact that the Opposition have been able to propose just one provision for their code of conduct illustrates why such an approach has not been adopted elsewhere.

The Government recognise the industry’s efforts to improve lobbying practice by introducing its own codes of conduct and are confident that that will continue. Those codes promote the ethical behaviour that is essential to the integrity and reputation of the lobbying industry. The codes contain laudable principles and good practice guidance, but their translation into statute does not seem sensible or feasible.

Amendment 78, in the name of my noble friend Lord Tyler, would instead amend Clause 5(4) so that regulations could be made to enable lobbyists to include details in their information returns of the voluntary codes of conduct that they had subscribed to; but no other additional types of information unrelated to voluntary codes of conduct could be so specified. My noble friend appears to agree with the Government that a statutory code of conduct is not necessary and that the existing voluntary codes should be endorsed and promoted. I am happy to tell my noble friend that the Government are committed to ensuring that the statutory register complements the existing self-regulatory regime.

A specific reference on the statutory register to the voluntary code to which a lobbyist has subscribed is an interesting proposal that the Government are willing to consider further. However, we are not persuaded that the power under Clause 5(4) should be restricted so that it could be used to make regulations only in relation to voluntary codes, which is the—perhaps unintended—effect of my noble friend’s amendment. We will consider this further. Meanwhile, I urge the noble Baroness to withdraw her amendment and my noble friend not to press his.

[Baroness Hayter of Kentish Town]

I fear that that reply was written before I made my speech. I made it very clear that I do not want a statutory code of conduct. The reply that the Minister gave was about why we should not have a statutory code of conduct: I agree, and we did not ask for it. What we are asking is for the registrar to endorse a code of conduct. I assume that it would be based either on the format of five principles that other professions use or maybe on the existing voluntary code. That would be a matter for the registrar, but I very clearly said that we did not want a statutory register.

I am delighted that the noble Baroness, Lady Hanham, is in her seat as she will remember very well discussing whether the regulation of letting agents should be statutory or—as it is now—voluntary. The letting agents had a very good voluntary code but if you did not obey it and were taken to the ombudsman, you could simply say, “I will leave the code, walk off and not remain signed up to the voluntary code”. All the good boys were signed up to the code but—guess what—the cowboys were not. If anyone was caught breaking the code they just resigned. The noble Baroness did at one point ask me to stop thanking her for this but I will never stop doing so because, through her work, we agreed the amendment that makes it compulsory for letting agents to belong to an ombudsman scheme. As part of that, there will be a code, overseen by the ombudsman, by which will be judged any misbehaviour by letting agents.

Effectively, that is what we are asking for here. Once you have a register of consultants, they should have to sign up to some code of good practice or ethical principles against which it will be judged whether they should be taken off the register. I am not asking for a statutory code, although it was very nice to hear the Minister make a speech against it. What we want is, if you like, a blessing to the voluntary code that says more than simply, “Please read it”. If you are on a register, I imagine it would become quite a kitemark. People would say, “I am a registered consultant lobbyist” —or, if our amendment were passed, a proper lobbyist, not just a consultant. It would be a kitemark to be on the register. However, if it implies no requirement to keep to an ethical code or a code of good behaviour, the kitemark could itself be quite misleading.

We will definitely return to this and I hope that the Minister has heard what we are really asking for: not a statutory code but a requirement that the registrar should have a code that anyone on the register would have to sign up to. I will leave that until Report for the moment—whenever that will be—and beg leave to withdraw the amendment.

Amendment 5 withdrawn.

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Moved by

[Baroness Hayter of Kentish Town]

54: Schedule 2, page 54, line 31, at end insert “after consultation with the Political and Constitutional Reform Committee”

[Baroness Hayter of Kentish Town]

My Lords, Amendments 54 and 74 are in my name and that of my noble friend Lady Royall. We support an independent registrar, which means independent of the industry as well as working independently of the Government. However, the matters over which the registrar must judge, the standards that he or she sets and the objectives set for the office have an importance to Parliament and to our standards and expectations. We believe that that requires an organic link to Parliament, not just to the Government of the day.

We think it appropriate that that link is to the elected House, which by its nature is responsive to the outside electorate and their concerns and interests. We recommend that the Minister, in making the appointment, should consult the Political and Constitutional Reform Committee of the other place and that, in similar mode, the registrar should report back to that committee on an annual basis.

We recognise the strength of the other amendments in this group, and we trust that the Minister will similarly do so and agree to take these away and bring back his own amendments on Report. I beg to move.

[Lord Norton of Louth]

My Lords, the principle in Amendment 74 of the registrar reporting is important. In my view, though, rather than reporting to a particular committee, it would be more appropriate to oblige the registrar to produce an annual report to Parliament itself. If it were going to be confined, I would not just confine it to the Political and Constitutional Reform Committee of the other place; I hear what the noble Baroness says, but there would also be a case for the Constitution Committee of you Lordships’ House being included as well. My preference would be for a report to Parliament, but I wholly support the principle that there ought to be a report. As the noble Baroness said, bringing the registrar within the scope of Parliament is entirely appropriate.

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[Lord Wallace of Saltaire]

My Lords, I am not going to give that commitment now because there are larger questions about how many public appointments should be overseen by Commons committees. That is a much broader issue than this appointment alone. I will take that back and consult with others but, as I said earlier, the Government are not currently persuaded of these amendments.

I return to the central database issue, which raises some large issues about the role of the registrar and whether or not ministerial appointments should be handed over, so to speak, for collation by an independent body associated with the Government. We have listened to those who have asked that the reports be available from one central location and have responded by migrating all meeting reports to gov.uk, where they can be readily accessed as both PDF and open-format CSV files. We have responded to those that suggested that the timeliness of reporting could be improved by committing to publishing all meeting information in the quarter immediately after that in which the meeting took place. I note the pressure to go further. The Government are committed to the principles of open government and we continue to investigate how we can further improve the value of the information that we make available to the public. However, we are not at present persuaded that we should be going as far as the noble Lord suggests.

Opposition Amendment 74 would require the registrar to submit an annual report to the PCRC on the operation of the register. Again, this is not a provision that I understand that the committee itself has sought—perhaps because it recognises that the registrar is already required by the drafting to submit their annual accounts to Parliament and that the committee will be perfectly entitled and able to call the registrar to provide evidence at any time. I would have thought that that would be enough to hold them to account.

The new clause of the noble Lord, Lord Norton, is by far the most ambitious amendment. It would require the Government to publish alongside any statement on a matter of policy, legislation or a contract or grant, records of any oral or written communication directed to a Minister, the Minister’s parliamentary private secretary or special adviser, and any departmental civil servants relating to that matter. The noble Lord, Lord Norton, provides exemptions from the requirement to publish for commercial or security-sensitive material. This is certainly an intriguing proposal but, I suggest, neither a feasible nor proportionate one. At a time when our focus should be on ensuring more efficient and effective government, a statutory requirement that every oral or written communication received by every civil servant, special adviser, PPS or Minister be recorded, collated and published in parallel with any relevant statement would appear ill advised. It would of course be an absolute goldmine for an academic researcher.

Not only would such a system impose an unwelcome bureaucratic burden on the public sector, it would likely impose information overload on the members of the public—perhaps even academic researchers. The volume of information that the Government would likely be required to publish in relation to a Budget Statement or a Queen’s Speech would be so overwhelming that any transparency value would be entirely undermined by the inaccessibility and quantity of the information. I think it was the noble Lord, Lord Rooker, who talked about “hiding in plain sight”. When there is too much information provided, it is sometimes hard to weed out what is crucial.

The Government’s objective is to provide the public with valuable information which they can utilise to scrutinise our actions and hold us to account. The focus should be on the value of information and the insight it can provide, not on the volume. The Government already publish unprecedented amounts of information about decision-making, and the register is intended to extend that transparency to those who seek to influence decision-makers. It is already standard practice that responses to government consultations are published in full and in summary, and if the public require further information about certain policies or decisions then they have a right to request that information using the Freedom of Information Act.

I recognise that the noble Lord is urging the Government to extend our information publication regime a good deal further. We will continue to consider how enhanced transparency can best be achieved. I suggest, however, that a statutory requirement of this nature is not the most appropriate manner in which to do so. I therefore resist that amendment, and urge the noble Baroness to withdraw it.

[Baroness Hayter of Kentish Town]

My Lords, this has turned into a more interesting and wide-ranging debate than we had anticipated. There are two parts to it. One is about this database. On the idea that there is too much for us and therefore the Government do not want to put it out there—they should try harder than that. The House knows I have a certain thing about alcohol misuse. I just want to know how many drinks companies lobbied the Government about tax before the Budget. It ought to be possible to know that. I do not want all the other submissions. Someone who is interested in the environment or any other issue will just be focused and want to drill down to one thing. If it is a good system, an awful lot of noise out there will not matter.

When I am not spending my time here at 7.30 pm I am quite often at the National Theatre. You can go there with a tiny card and you have ordered perhaps four different lots of tickets for different nights and different theatres. You put in your little card and you get them all back. Its computer system can do it very easily. I cannot believe that it is beyond the wit of man—even men—to produce a similar system for this database, which is currently completely unsearchable. It is not, in the words of the Minister readily available. I have tried to search it, although I did not try for quite as long as the noble Lord, Lord Tyler—in future I will come to his office when I am trying to find this out. However, it is not searchable or rapid, and is therefore almost irrelevant, so late is it. I cannot see why it cannot be available the next day. If there was a will, there would certainly be a way.

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[Lord Wallace of Saltaire]

From time to time Parliament does change the structure and the nomenclature of its committees. I think the Government would be a little hesitant to write the current structure of committees into legislation.

[Baroness Hayter of Kentish Town]

The words “relevant select committee” could be used.

[Lord Norton of Louth]

On that point, legislation does write in the name of committees or the equivalent, so it is quite possible to do that.

[Baroness Hayter of Kentish Town]

Not only does the noble Lord, Lord Norton, supply me with his wonderful Hull students to help me with my work, but he comes up with answers to my questions, for which I thank him.

What seems like a small amendment about writing the committee in is an important signal. I am sorry that we keep hearing the words “not persuaded” from that side. Having had the earlier discussion about Part 2 of the Bill, we very much hope that the Government will be persuaded by what they hear. I had hoped that some of that might have bled into Part 1 of the Bill and that the Government might have been persuaded by some of the things we said. However, we will leave it here, although we may want to come back to some of it at a later stage. For the moment, I beg leave to withdraw the amendment.

Amendment 54 withdrawn.