Trade Union Bill (Discussions)

Debate between Bernard Jenkin and Nick Boles

Thursday 28th April 2016 Commons Chamber

[Mr Bernard Jenkin (Harwich and North Essex) (Con)]

(Urgent Question): To ask the Prime Minister if he will instruct his adviser on ministerial interests to launch an inquiry as to whether discussions between Ministers and officials and representatives of trade unions or the Labour party concerning amendments to the Trade Union Bill constitute a breach of the ministerial code of conduct. I am grateful to you, Mr Speaker, for granting this urgent question.

[The Minister for Skills (Nick Boles)]

The Cabinet Office has advised me that there is no breach of the ministerial code and nothing for the Prime Minister’s adviser on ministerial interests to investigate.

The Trade Union Bill is now in ping-pong and, as is customary at such times, Ministers have held regular discussions with shadow Ministers to discuss possible compromises that would secure passage of the Bill and delivery of the commitments made in the Conservative party’s manifesto. On the basis of the amendments passed by this House yesterday evening, I can reassure my hon. Friend that we are well on the way to securing all our manifesto commitments—ballot thresholds for strikes, reforms to the role of the certification officer, a tightening-up of rules around facility time, action to stop intimidation of non-striking workers, and the introduction of a transparent opt-in process for union members’ contributions to political funds.

The question of compulsory opt-in to trade unions’ political funds was one of the most contentious, especially in the House of Lords. Noble Lords referred the clauses in the Bill to a special Select Committee under the chairmanship of Lord Burns. Following the Select Committee’s report, the House of Lords voted by a large majority to accept an amendment to restrict the opt-in to new members and to exclude existing trade union members.

My hon. Friend will not be surprised to learn that I hold regular meetings with trade union leaders and the general secretary of the TUC, not just in relation to the Bill, but in relation to other responsibilities of mine, including our support for the excellent work of Unionlearn.

Trade union support for the campaign to remain in the European Union is not new and should not come as a surprise to anyone. The TUC declared its support for the campaign in February. The GMB union did the same on 22 February, Unite on 14 March and Unison on 13 April.

[Mr Jenkin]

We all remember the Prime Minister foretelling that the next great scandal would be a lobbying scandal, and here it is. Trade union leaders have been complaining that they are unable to campaign effectively for a remain vote in the EU referendum while the Government’s Trade Union Bill has been threatening trade unions and their funding. The Bill would have implemented a Conservative manifesto commitment to

“legislate to ensure trade unions use a transparent opt-in process for union subscriptions”.

As a result of the amendment being accepted, a 19-year-old who has just started a job and is a member of a trade union will now never be asked by a trade union whether he wants his political fund subscriptions to be taken out of his pay packet.

The Prime Minister told the House of Commons on 15 July last year:

“There is a very simple principle here: giving money to a party should be an act of free will. Money should not be taken out of people’s pay packets without them being told about it properly”—[Official Report, 15 July 2015; Vol. 598, c. 885.]

and he likened that to mis-selling. On 16 March, the Minister in the other place described the Labour amendment, which the Government have now accepted, as a “wrecking amendment”. Yesterday, the Minister made a wholly unexpected concession when he announced his decision to abandon opposition to the change in the Bill.

It is now being reported on Channel 4 News and in today’s papers that those unexpected concessions are linked to a £1.7 million donation that trade unions might make from their political funds, which are now much larger than they would have been, to the Labour remain campaign, Labour In For Britain. Until recently, the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson) was trying to raise £75,000 for a few leaflets, balloons and badges; now the campaign is getting £1.7 million. It has been confirmed to me by more than two independent sources that No. 10 instructed those concessions to be made after discussions with trade union representatives. That being true would amount to the sale of Government policy for cash and political favours.

Lest there be any doubt about the impropriety of this deal, Her Majesty’s Opposition should ask themselves this question: what would they be saying if this Government had altered a Bill in order to give extra money to the Conservative party or to the Conservatives’ remain campaign, Conservatives In? My hon. Friend the Minister should ask himself this question: what would have been the reaction if a Labour Government had changed a Bill in order to favour the Labour party’s ability to support the Government on some controversial policy and in order to give the Labour party money? This stinks—it reeks the same as cash for questions. This shows that this Government really are at the rotten heart of the European Union.

The seven principles of public life require public office holders to

“avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence…their work.”

The ministerial code states:

“Ministers must ensure that no conflict arises”,

or appears to arise,

“between their public duties and their private interests”.

In this matter, the Labour party constitutes one of their private interests.

Will my right hon. Friend the Prime Minister instruct his adviser on ministerial interests, Sir Alex Allan, to launch an investigation? If my hon. Friend the Minister and the Cabinet Office are right, he has nothing to fear from such an investigation.

[Nick Boles]

May I start by saying that I have the greatest respect for the passion and commitment, which have lasted for not just years but decades, that my hon. Friend has brought to the cause he advocates with such vigour—that we leave the European Union? I have nothing but total respect for that passion and commitment.

I just want gently to correct my hon. Friend on a few points of fact, because he focused so much on the important question he raised that a number of the things he suggested about the current mechanism for union members’ subscriptions to the political fund were not absolutely correct.

The first point to make is that it is not the case that somebody who has recently joined a trade union, and to whom the new requirement for an opt-in will therefore not apply, will never be asked whether they want to pay into the political levy—very far from it. There is a long-standing legal requirement that they are offered an opt-out from that political levy and that that is communicated clearly to them. That opt-out is not just a one-time thing; it is not something they are offered only when they join—it is something they can exercise at any time, and they need to be reminded of it regularly.

The other thing to say is that, while estimates from different unions vary, the overall estimate is that roughly 13% to 14% of all trade union members joined in the last year. I am not going to suggest that all trade union members will have needed to opt in to the political fund over this Parliament, but a substantial proportion will have.

I am afraid my hon. Friend is also not correct to say that we are talking about a Labour amendment. The amendment was moved by Lord Burns—somebody for whom I know my hon. Friend has the greatest respect, as a fearsomely independent former permanent secretary. The amendment flowed out of a Committee in which there was some very fearsome representation of all parties. It was clearly inspired by Lord Burns’s argument that it is not reasonable to ask people who have signed up to an arrangement in good faith then to have to sign up again through a different process simply because we have changed the law later on. I did not agree with that argument, and nor did we in this House, but what happened often happens when the House of Lords feels very, very strongly on an issue, when there is a very, very large majority against the Government’s position, and when an Independent Member of the House of Lords has moved an amendment that has secured support not just from the official Opposition and from the Liberal Democrats but from a huge number of Cross Benchers—and not just from Cross Benchers but some very significant members of our own party.

I urge my hon. Friend to look at the people who spoke in the debate and voted, or very assertively chose not to vote, in support of the Government’s position. They included not just Lord Cormack and Lord Balfe but Lord Forsyth, who supports the same campaign on the European Union that my hon. Friend has supported and who, both privately and publicly, said that he thought it was a profound error for us to pursue a compulsory opt-in for all existing members. So it is not right to say that it was just a Labour position.

My hon. Friend suggested that it was inappropriate for the Government to do anything in terms of making changes to legislation to further private interests, and of course he is right. However, it is not right, and not even in the passion of the moment is it fair, to categorise the official policy of Her Majesty’s Government in that way. We support the proposition that the United Kingdom should remain a member of the European Union. He disagrees, honourably and valiantly, but it is not a private interest—it is Government policy.