Independent Parliamentary Standards Authority

Bob Russell Excerpts

Thursday 2nd December 2010 Commons Chamber

[Bob Russell (Colchester) (LD)]

I am grateful to the hon. Gentleman for securing this debate and for his contribution thus far. Does he know how many Members of Parliament IPSA consulted before setting up this scheme?

[Adam Afriyie]

That is a very good question. I have the figure 44 in my head for the number of responses to the initial January consultation. A quarter to a third of them were completely against the kind of scheme IPSA eventually introduced, while the other three quarters or two thirds raised specific issues that were not directly related to the terms of the consultation. The input from Members of Parliament in a public sense was therefore fairly minimal; only about 11 MPs actually made a contribution. That is a little concerning. I think the reason behind that low figure is that we as Members of Parliament all know that anything we write on expenses that is in the public domain is a hostage to fortune. We have to overcome that reluctance, however, because unless we show confidence and courage and make it absolutely clear that we will not tolerate an unnecessarily expensive system and an unnecessarily burdensome bureaucracy that takes us away from our constituents, we will fall into the same trap we have fallen into in the past. I therefore have a tremendous sense of déjà vu.

The expenses scandal coincided with the run-up to the general election—it was almost part of the general election campaign—so there was a political need to resolve the issue quickly. I think we all recognise that, and I think we all accept that something needed to be done fairly briskly. However, on reflection now, a year later, it seems to me that perhaps in our haste we have lost some time. Even with the best intentions in the world, there have been omissions and errors in the establishment of the current regime, and they need to be tackled.

Ignoring warnings from the Clerk of the House and others, we have created a curious beast. We have handed over control of the work of MPs to an unelected and unaccountable body. IPSA is judge and jury; IPSA is both regulator and the regulated. MPs are rightly accountable to the people who elect them, whereas IPSA is accountable to nobody, yet IPSA can control the way MPs work—it can control the amount of time that MPs have available to them to conduct their duties. That is a curious state of affairs, and if we are honest with ourselves we would never tolerate that set-up in any other walk of life, or in any other part of government or the civil service.

I do not doubt that the chairman and board of IPSA have good intentions, but is it right that the current system continues to frustrate the work of democratically elected MPs? The issue is not about us and our minor inconveniences, but about our constituents and the time that we can spend with them, so we have to be bold in what we do.

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[Adam Afriyie]

Absolutely. My hon. Friend hits on the key issue, which has not been resolved in the last 100 years, of whether a Member of Parliament is a paid employee with a salary, in which case one would expect a job description. MPs do not have job descriptions; it is therefore semi-illogical that they would have salaries. HMRC is absolutely correct that for most intents and purposes, MPs are self-employed. I will comment on that in a moment, but I am conscious of the time that I am taking.

[Bob Russell]

In answer to parliamentary questions that I tabled, IPSA graciously acknowledged that I am employed by the good people of Colchester. It also acknowledged that I am the employer of my staff and that it is not the employer of MPs’ staff. However, half the time it behaves as if it were the employer of MPs, and half the time as if it were the employer of MPs’ staff.

[Adam Afriyie]

That is the irreconcilable nature of the task that IPSA has been set. These are quite deep waters and I am not sure that we can get into the intricacies in this debate. The hon. Gentleman is right that there is a fundamental incompatibility between an external body controlling the terms and conditions by which staff are employed and the responsibility for that employment falling with the individual Member.

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[Bob Russell (Colchester) (LD)]

It is important that IPSA has a voice in this Chamber. I am delighted that the hon. Member for Bassetlaw (John Mann) took on that role, because, of 650 MPs I cannot think of a better person to be the devil’s advocate. I am a member of the Speaker’s Committee for the Independent Parliamentary Standards Authority. Unfortunately, despite my best endeavours over the past three months, the Committee has not met. I therefore congratulate the hon. Member for Windsor (Adam Afriyie) on securing this debate and colleagues on supporting it.

It is important that we praise IPSA’s front-line staff, because they, like us, are in this situation: we may be in different canoes, but we are in the same creek without paddles. We should also take on board the enormous debt of gratitude owed to our office staff. It has been estimated that the equivalent of 100 full-time MPs’ staff jobs are now devoted to dealing with IPSA affairs—it is as serious as that. The hon. Member for Bassetlaw estimated that more time is now being spent on this in his office, so even the leading advocate of IPSA acknowledges that fact.

Earlier, the right hon. Member for Cynon Valley (Ann Clwyd) made a very serious allegation about the head of communications at IPSA. I hope that by the end of the afternoon the Minister will be able to say whether there is any truth in the allegations. Interestingly, today’s Daily Mail and Daily Express had almost identical stories, which must have come from the same source. The Daily Mail at least had the good grace to say,

“Leaked figures from the…Independent Parliamentary Standards Authority”,

so it acknowledges they were leaked from IPSA. The same article belittles MPs for claiming expenses in August when we were on holiday. A good journalist is always at work and a good policeman is never off duty, and the same goes for an MP and their staff.

[Mr Desmond Swayne (New Forest West) (Con)]

Will the hon. Gentleman give way?

[Bob Russell]

I would rather not, because of the time limit.

We must not say that all journalists are averse to finding out what is happening. Matthew Parris, in The Spectator of 6 November, says:

“Now to the facts. IPSA is careering stupidly out of control. Many MPs, particularly new young members, are close to despair, but dare not complain publicly because of the witch-hunting atmosphere that still prevails.”

He goes on to say:

“The salary of IPSA’s own director of communications (leading a team of three communications staff!)”—

who are they communicating with, other than leaking to the national media?—“

is more than £80,000”

a year.

There are stories of MPs enduring long waits on the hotline, and long delays when IPSA replies to letters and so on, to which Matthew Parris also refers. There have been approximately 150 parliamentary questions, including some from the hon. Member for Bassetlaw. IPSA is taking up more and more time. As an MP for 13 years, I have come to realise that the job is different from anything else, but IPSA thinks that MPs work Monday to Friday, 9 to 5.

IPSA did not bother to go to constituency offices. Very early on—long before any brown stuff hit any fans—I invited the chief executive to my constituency, because I thought it would help him to know what goes on. There is a do-down-MPs culture at the top of IPSA. I do not include the front-line staff because I think that, like us, they are doing a grand job. I cannot think of any other description for that culture, and frankly, I no longer care—I have gone way past the stage of caring—what the national media may or may not say about me and my expenses. My conscience is clear. I know that like just about every other MP, for the past 13 years, my wife and I have subsidised my work as an MP. The second homes thing caused a major problem for me like it did for others because of inattention to form-filling, if I can use that phrase. That is a world of difference away from how we are now being treated. Matthew Parris finished his article in The Specator by saying:

“It is left, I would argue, to Fleet Street’s Westminster and Whitehall journalists and commentators and to political scientists. They talk to MPs. They know it’s a big problem. Yet few have entered more than footnotes acknowledging it. Why are they silent?”

I doorstepped IPSA’s offices to find that they are the most luxurious offices to be found anywhere. There we have a problem, because IPSA tells me that I am claiming too much for my converted church hall. It has even told me that my claim for a photocopying machine could not be paid. I do not know of an MP who does not have a photocopier, but I was asked to prove that mine exists. I sent IPSA a photograph of it, but even that did not work—I still did not get payment for the machine. It was easier for me to open a new IPSA bank account and front load it with £5,000 rather than wait for IPSA to reimburse me. My wife and I paid that money. I do not know of a family doctor who has to pay the rent on his surgery or pay for medicine and claim the money back, but IPSA feels that MPs should be treated in that way.

I had cause to write to the chief executive of IPSA because it managed to fail to pay the national insurance of one member of my staff for three months. We all know that a break in NI contributions can have serious consequences. I eventually received a reply—unsigned—not from the chief executive, but from the deputy payroll manager. That shows the contempt in which MPs are held in the highest levels of IPSA.

I have tabled questions to find out how our Prime Minister and Cabinet colleagues are getting on with their IPSA claims, although I have managed to get only three answers back. Hon. Members will be pleased to know that the expenses of the Secretary of State for Foreign and Commonwealth Affairs are managed by the “Parliamentary Office”. The Secretary of State for Defence said that

“the information requested could be provided only at disproportionate cost.”—[Official Report, 19 November 2010; Vol. 518, c. 966W.]

The Prime Minister said:

“I am aware of concerns surrounding the expenses system and am keen to see improvements.”—[Official Report, 1 November 2010; Vol. 517, c. 495W.]

There we are—the Prime Minister wants “to see improvements”.

I cannot work these things out, so I asked my office at lunchtime to find out the latest thing about me on IPSA’s website. It said:

“IPSA Claims System—Web Site Error…A general website error occurred during your last performed action…System administrators have been notified. Please try again later.”

There is much more that I would like to say. Frankly, however, IPSA needs to get its act together. Even the Prime Minister says that there must be improvements, so I look to the Chamber to set the ball moving today. If the hon. Member for Bassetlaw wants a vote, let us have a vote.

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[The Parliamentary Secretary, Cabinet Office (Mr Mark Harper)]

Before I start, I want to thank you, Mr Deputy Speaker, for your kind words about our 2018 bid team, who were dubbed “the three lions” by The Sun. I know that when the Prime Minister returns from Zurich, he will play close attention to this debate. He spoke about this matter earlier and will listen carefully to what Members have said.

I congratulate my hon. Friend the Member for Windsor (Adam Afriyie), not just on securing the debate, but on the thoughtful tone in which he opened it. That has been reflected by all hon. Members who have spoken. This matter is not about us, but about our ability to do our job—serving our constituents and doing our parliamentary work, as the shadow Leader of the House said.

I want to touch on the story that was in The Times earlier this week, because it has been referred to by a number of right hon. and hon. Members in this debate and it was raised at business questions earlier today. I understand that the story was the result of a freedom of information request, rather than a leak. I do not usually find myself quoting Sir Ian Kennedy, the chairman of IPSA, but it is worth putting on the record his response to the unfair way in which The Times ran that story—he has not always been particularly kind about Members of Parliament. He said:

“We assess that MPs have been thoughtful and proper in making their claims. Where we have queried a claim, it has been the result of misunderstanding as people adapt to the new scheme.”

He made it clear that, unlike the way in which they were reported, the claims were not improper and were examples not of MPs trying to do things that they should not have been doing, but of MPs behaving properly and adapting to the new system.

[Bob Russell]

Unfortunately, that message has not got into the newspapers. The right hon. Member for Cynon Valley (Ann Clwyd) made a serious allegation earlier and the Daily Mail today referred to an IPSA leak. Has the Minister received a statement from IPSA responding to the serious allegation that its director of communications is touting around trying to plant stories that are detrimental to Members of Parliament?

[Mr Harper]

The hon. Gentleman is quite right that the message has not got out that MPs have behaved completely properly. That is why I thought it helpful to announce it on the Floor of the House, not that that will get it into the newspapers, as we know. However, I thought it worth putting it on the record that IPSA has acknowledged that MPs have behaved properly.

It is not my job to speak for IPSA, but as the hon. Gentleman has asked me about this point, and as it was raised by the right hon. Member for Cynon Valley (Ann Clwyd) earlier, it may encourage hon. Members to know that IPSA has been following the progress of this debate very closely. It heard the right hon. Lady’s comments and has categorically denied them. It has confirmed that the information in The Times was obtained through an FOI request, not from a leak.

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[Duncan Hames (Chippenham) (LD)]

I should like to join colleagues in commending the hon. Member for Windsor (Adam Afriyie) for securing this debate and for the tone in which he set it, which has, surprisingly perhaps, reflected well on the House. As a new Member, I have persevered in seeking to catch your eye this afternoon, Mr Deputy Speaker, because although I agree with many of the critiques of the current situation, I do not agree with many of the suggested solutions, including that suggested by the hon. Member for Gainsborough (Mr Leigh).

As a new Member, my experience of this place is that there are many hard-working, dedicated colleagues on both sides of the House, and, having observed their work ethic, I am in no doubt that they perceive their role to be that of a public servant. However, when it comes to our terms and conditions, our mode of operation and even our autonomy in deciding how we provide that service to the public, I have been surprised by the number of colleagues who seem to adopt the mindset of someone who is running their own business. In fact, we have heard contradictory accounts today about who employs whom in this place.

I have run a small business, but as a newly elected Member I could really have done without the freedom and responsibility of choosing my own constituency premises, negotiating the lease and sourcing the necessary equipment for my staff to use. None of that is what I came here to do. I suspect that some Members here might not even feel qualified to do it. We have all this administrative freedom to set things up exactly as we wish, but with that freedom comes administrative responsibility, as well as the unusual transaction requirements whereby MPs pay for everything first and claim the money back in what we have come to refer to as expenses.

I would argue that Members need to realise that, in cherishing that administrative autonomy, they make a rod for their own backs, by turning what for most people are the fundamentals of their workplace accommodation into what for us are treated as expenses. I would rather that we let go of all that and allowed independent, or indeed parliamentary, authorities to provide, manage and pay for our constituency offices—

[Bob Russell]

Oh, no!

[Duncan Hames]

I accept that that view is not shared by other Members, but I have waited patiently to share my view, which I hope Members will at least respect.

In the information published today, there are no expenses reported in my name. That is not because I have shouldered all those costs myself, though my team and I have taken care to limit the costs met by the taxpayer. It is because I have put off using the expenses system as long as I could, as I understood that other colleagues were experiencing what might be called teething troubles. My staff tell me that in those early days it was difficult to get either timely or consistent advice from IPSA personnel, but that the administration of the arrangements is now better than it was. I am sure that as the public start to use the information that IPSA publishes, the need for improved transparency will be apparent.

I agree with the hon. Member for Eltham (Clive Efford), who argued that it would be helpful if we had some clear headings such as “constituency surgeries”, rather than the current description of “hire of premises”. I would echo the comments of the hon. Member for Windsor in his conclusion—IPSA is mistaken in deciding not to publish receipts.

A similar argument applies to arrangements for MPs’ staff. Many are modestly paid, hard-working and share all the job insecurity that we, as elected representatives, have come to accept. The budget for their employment, as was explained earlier, has effectively been cut by 10% since May and unlike other public servants they have no recourse to a professional human resources department and are instead at the mercy of the people management skills of individual legislators. Now that IPSA has deemed it appropriate to set their job descriptions and pay scales, I believe that it should also accept the support responsibilities arising from its emerging de facto relationship as their employer. MPs’ staff deserve to be treated as people and as workers and not reduced to an expense.

I recognise the need for the arrangements to be governed independently of MPs, as Members on both sides of the argument have accepted. I look to IPSA to continue to develop a fairer and more cost-effective system. We seem to be agreed about the shortcomings of the situation, but I do not believe that the answer is allowances that offer greater freedom for Members of Parliament or for Members of Parliament to threaten to bring them about.

As I believe I have set out, there is an alternative way forward whereby Members should have more time to spend on their constituents, which is what the hon. Member for Windsor asked for. Basic office accommodation, equipment and HR administration should be provided directly and Members of Parliament should let go and get out of the way.