Lobbying of Government Committee

Brendan O'Hara Excerpts

Wednesday 14th April 2021 Commons Chamber

[Rachel Reeves (Leeds West) (Lab)]

I beg to move,

That the following Standing Order shall have effect until 31 December 2021:

Investigation into the Lobbying of Government Committee

(1) There shall be a select committee, called the Investigation into Lobbying of Government Committee, to consider:

(a) the effectiveness of existing legislation to prevent the inappropriate lobbying of Ministers and Government;

(b) the rules governing all public officials regarding conflicts of interest;

(c) the circumstances surrounding the appointment of Lex Greensill as an adviser in Government and the process by which Greensill Capital was approved for commercial arrangements with Government departments and other public sector bodies; and

(d) the role Government played in facilitating the commercial relationship between Greensill Capital and the Gupta Family Group Alliance.

(2) It shall be an instruction to the Committee that it:

(a) considers whether there are robust transparency and accountability procedures in place and whether existing rules are being adhered to;

(b) considers whether the Advisory Committee on Business Appointments’ regulatory framework and sanctioning powers are sufficient to enforce its advice;

(c) assesses the extent of undue influence that former politicians and advisers have on the policies and programmes of government departments and non-departmental public bodies; and

(d) that it makes a first Report to the House no later than 18th October 2021.

(3) The committee shall consist of 16 members of whom 15 shall nominated by the Committee of Selection in the same manner as those Select Committees appointed in accordance with Standing Order No. 121.

(4) The Chair of the committee shall be a backbench Member of a party represented in Her Majesty’s Government and shall be elected by the House under arrangements approved by Mr Speaker.

(5) Unless the House otherwise orders, each Member nominated to the committee shall continue to be a member of it until the expiration of this Order.

(6) The committee shall have power—

(a) to send for persons, papers and records, to sit notwithstanding any adjournment of the House, to adjourn from place to place, and to report from time to time; and

(b) to appoint specialist advisers to supply information which is not readily available or to elucidate matters of complexity within the committee’s order of reference.

(7) The committee shall have power to appoint a sub-committee, which shall have power to send for persons, papers and records, to sit notwithstanding any adjournment of the House, to adjourn from place to place, and to report to the committee from time to time.

(8) The committee shall have power to report from time to time the evidence taken before the sub-committee.

Mr Speaker,

“The lunches, the hospitality, the quiet word in your ear, the ex-ministers and ex-advisers for hire, helping big business find the right way to get its way.”

That is how former Prime Minister David Cameron described the next big scandal to hit British politics, back in 2010. We might think that what David Cameron lacks in transparency he makes up for in fortune telling, except that he had inside information because the person exploiting the loopholes would be the very same David Cameron.

We had a Conservative Prime Minister giving Lex Greensill access to all areas of Government. He was brought in and given privileged access to the heart of Government with the title and the business card of a senior adviser in the Prime Minister’s office. Then—what a stroke of luck—when he was no longer Prime Minister, and just past the required period, when he no longer needed the approval of the Advisory Committee on Business Appointments, David Cameron joined Greensill to lobby the Conservative Government full of his friends.

Having refused to respond to any questions at all for 40 days, David Cameron chose a period of national grief, hoping that there would be less political criticism and less scrutiny. It is cynical and it is shabby, and the statement itself was toe-curling. He is not sorry for his conduct, for the texts and the drinks, but he is sorry he got caught and he is sorry that his shares are now worthless. This is not just a question of why he did not go through the correct channels; it is question of why he was doing this at all.

Let us be really clear: David Cameron was not working in the national interest; he was working in his own personal interest, with the hope of making millions of pounds for himself through the exercise of his share options. But questions cannot just be asked of David Cameron, when it is current Conservative Ministers who have paved the way for this scandal. When it comes to lobbying, it takes two to tango. For every former Minister lobbying, there is someone in power being lobbied. That is why this scandal is not just about the conduct of David Cameron during his time as Prime Minister and in the years afterwards. This is about who he lobbied in the current Government and how they responded.

Lex Greensill was awarded a CBE and was made a Crown representative by a Conservative Government, yet his company’s spectacular collapse now means that over 50,000 jobs are at risk around the world, including thousands in the UK’s steel communities, from Hartlepool to Stocksbridge, from Rotherham to Scunthorpe and to Newport. The steel industry is crucial and the Government must make it clear that our steel industry will not pay the price for the failures at Greensill and beyond.

This Government have set up an inquiry, but just about supply chain finance and Greensill. Such a review is wholly inadequate, and deliberately so. They do not want to explore what needs to change in lobbying or who currently gets access to power, or the wider issue of how to lift standards, which have fallen so far in the 10 years of Conservative Governments. They do not want public hearings. They do not want the disinfectant of sunlight, as David Cameron once urged. They just want this to go away, which is why they have chosen Nigel Boardman to chair the inquiry.

It is a fact that Nigel Boardman is a good friend—a very good friend—of the Conservative Government. Some may suspect that the son of a former Conservative Cabinet Minister might be unlikely to make waves, but let us look at his record. Mr Boardman has been paid over £20,000 per year as a non-executive director at the Department for Business, Energy and Industrial Strategy—a Department with a real interest in the British Business Bank, which lent to Greensill, and the British steel industry, where so many jobs are now at risk. Mr Boardman has already whitewashed the Government’s handling of public procurement during the pandemic and I fear that he will do the same again with this inquiry.

You will remember, Mr Speaker, that I jointly chaired the inquiry into the collapse of Carillion. The fact that Mr Boardman’s law firm made £8 million advising Carillion, including £1 million on the day before the outsourcers collapsed, leaves a terrible taste in my mouth as it should in the mouths of Members on the Government Benches. To cap it all, Mr Boardman was appointed to a prestigious role at the British Museum by—oh, by David Cameron! What is being proposed by the Government is not remotely fit for purpose. It is not an inquiry. It is not independent. It is an insult to us all.



The scope of this inquiry has to be bigger than supply chain financing. It has to be about lobbying, too, and bigger than what rules were broken. If the existing lobbying rules were not breached, that is a big part of the problem, surely. Had the Conservatives backed Labour’s amendments to the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Bill back in 2014, there would have been much more transparency, but they did not. David Cameron and his Government voted them down, and boy are they exploiting them now! We need public service in the national interest, not people viewing the state like some get-rich-quick scheme, with taxpayers treated as collateral damage.

We now learn that the Conservatives are joined in all this by the SNP, whose Rural Economy Secretary in the Scottish Government dined with Lex Greensill in one of Glasgow’s finest restaurants with no officials, no notes, no emails, no texts and no phone records about the meeting. Here in Westminster, we have witnessed the degrading of the ministerial code.

[Brendan O'Hara (Argyll and Bute) (SNP)]

We have absolutely no quibble with what the shadow Minister has been saying, but is she trying to draw an equivalence between what David Cameron did and what Fergus Ewing did in a meeting that was recorded and has been publicly available for a long time on the Scottish Government’s website? There was nothing untoward in what Fergus Ewing did, and in trying to conflate the two, the hon. Lady does a great disservice to herself and her argument.

[Rachel Reeves]

Well, the Scottish people can be the judge of that. If the hon. Member thinks that a Scottish Minister dining with Lex Greensill is okay, his party should put that on its leaflets in the elections in May.

Sir Alex Allan resigned as independent adviser on ministerial interests following the Prime Minister’s failure to take action on the Home Secretary’s bullying behaviour. That was five months ago. The Government have not replaced him. They have not even advertised the job. What does that say about how seriously this Government take standards?

--- Later in debate ---

[Brendan O’Hara (Argyll and Bute) (SNP)]

Mr Speaker,

“I believe that secret corporate lobbying…goes to the heart of why people are so fed up with politics. It arouses people’s worst fears and suspicions about how our political system works, with money buying power, power fishing for money and a cosy club at the top making decisions in their own interest. It’s an issue that...has tainted our politics for too long, an issue that exposes the far-too-cosy relationship between politics, government, business and money.”

Wise words indeed, and I wish they were mine, but they are not. They were said by David Cameron in February 2010, just a few short months before he became Prime Minister. He became Prime Minister with a promise that:

“If we win the election, we will take a lead on this issue by making sure that ex-ministers are not allowed to use their contacts and knowledge—gained while being paid by the public to serve the public—for their own private gain.”

Today, David Cameron, that self-styled great reformer, is up to his neck in the same cronyism, corruption and sleaze that he promised to call out, expose and eradicate while in opposition.

The hypocrisy is breathtaking, and not simply because nothing has changed. We now know that far from taking on the corrosive culture of the nod and a wink and the old boys’ club favouritism, he actually took it into government. We now know that while David Cameron was Prime Minister, Lex Greensill himself became so embedded in Downing Street that by 2012, he even had an official No. 10 business card, describing himself as a “Senior Advisor”.

Almost 10 years to the day after delivering those stirring words and making those great promises, we discover that David Cameron directly lobbied the Chancellor of the Exchequer, the Secretary of State for Health and Social Care and senior Government officials, thereby securing 10 meetings in three months in an attempt to influence the UK Government’s covid corporate financing facility. He did it to benefit Greensill Capital, where he was then working as an adviser and lobbyist for the same Lex Greensill and where he reportedly held share options worth millions of pounds.

I invite Members to compare and contrast that level of access to the Chancellor and the powers that be at the centre of Government with that given to the millions of people and businesses left without any UK Government support during the pandemic, and in particular the group of the excluded—those 3 million self-employed people who have been left without a penny of Government support. What they would have given for just one of the opportunities that were afforded Mr Cameron, let alone the 10 that he got.

I wonder whether Mr Cameron recalled at any point while brokering those meetings his own hollow words of February 2010. He said:

“We all know how it works. The lunches, the hospitality, the quiet word in your ear, the ex-ministers and ex-advisers for hire, helping big business find the right way to get its way.”

Of course, now it transpires that the Greensill influence in Downing Street during the Cameron years went even further and deeper than we could ever have imagined, with the astonishing revelation that in 2015, one of Britain’s most senior civil servants was given permission to work part-time as an adviser to the board of Greensill while still serving as the UK Government’s head of procurement.

How is it possible that the Cabinet Office gave the green light for the former Government chief commercial officer at the Cabinet Office to become part of Greensill Capital in September 2015 while still working as a supposedly impartial civil servant? Who authorised such a move? Who approved this appointment? Who thought that that was okay? What questions did the people at the Cabinet Office operating the internal conflict of interest policy actually ask to reach the conclusion that it was perfectly all right for one of the UK’s most senior civil servants to twin-track and work for a private finance company whose owner at that point was swanning about Downing Street, dishing out business cards describing himself as a special adviser to the Prime Minister? It beggars belief.

This is crony capitalism at its worst. It stinks. The closer we get to it, the more it reeks, and that is why we will be supporting a full independent and transparent investigation and why we will support this motion when the House divides this afternoon.

On its own, the Greensill scandal would be bad enough. Unfortunately it is far from being an isolated event. It is just the most recent example of the rampant cronyism that is at the heart and centre of this Government, who seem to be stumbling from one scandal to another as the details emerge of a network of those who have become fabulously wealthy during this pandemic not because of their skill or business acumen but because of their political connections. In November last year, the National Audit Office revealed that companies with political connections who wanted to supply the UK with personal protective equipment were directed to a high priority channel, where their bids were 10 times more likely to be successful that those from companies that did not have links to politicians and senior Government officials.

In and of itself, the existence of this high priority channel is quite remarkable, but it becomes far more sinister when we consider that the NAO also reported that there were no written rules for how this high priority channel should operate, meaning that the companies gaining political support had access to hundreds of millions of pounds of public funds, were not subject to the usual procurement rules and could bypass the essential paperwork that in normal times would be a prerequisite for safeguarding against the misuse of public funds.

No matter how we look at this, it is not a good look. I absolutely agree with Professor Liz David-Barrett of the University of Sussex when she said:

“It’s not clear to me why MPs or peers should have any special expertise on whether a company is qualified to provide PPE.”

She is absolutely right. She went on to make the entirely reasonable point that those who can be described as being linked to politically exposed persons are usually treated as being higher risk and therefore deserving of more scrutiny rather than less.

[John Penrose (Weston-super-Mare) (Con)]

I asked a parliamentary question about the standards being applied to people and companies on this supposed fast-track list versus others, to check that the same due diligence standards were being applied to both sides and that there was a level playing field. The answer that I got was that they were and that in this respect the playing field was level, so would the hon. Gentleman care to reconsider his point that the same processes do not apply?

[Brendan O’Hara]

What I would love to happen is for the Committee, when it meets, to examine that in detail to find out exactly whether it is true. What is inescapable is that a company is 10 times more likely to receive a Government contract through a political contact. That deserves careful scrutiny and has to be smoked out to the nth degree.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

However we collectively as the body politic got into this situation, may I suggest that it is damaging public trust in elected representatives? The one good thing about this Committee, if it were seen to be put in place, would be that it could restore some of that trust and repair some of the damage to democracy in the UK.

[Brendan O’Hara]

The hon. Gentleman is right. I think we all know from our postbags that, regardless of which side of the House we are on in this debate, we are all tainted by this. Anything that can shine a light on this —admittedly where some might not want it to be shone—would be a very good thing, and I wholeheartedly support it.

[Chris Bryant (Rhondda) (Lab)]

Is there not another point here, which is that whatever inquiry needs to be done must have the proper powers? For instance, it needs to be able to guarantee that anybody who gives evidence can do so without fear of prosecution, so that if there is a whistle that needs to be blown, it can be blown. It also needs to have subpoena powers, so that people who do not want to give evidence could be forced to do so. So far as I can see, those powers could be provided only by a judge-led inquiry—maybe we should go down that route, but I think it is unnecessary—or by a parliamentary inquiry.

[Brendan O’Hara]

The short answer is yes, and that is something that I will come on to in a moment. That is why this is so important.

It is not just Members of this House who are questioning the corrosive culture of cronyism at the heart of this Government; it has been attracting some fairly high-profile international attention too. At the end of last year, The New York Times decided to investigate how the UK Government managed what it described as the greatest spending spree in the post-war era. It concluded that of the 1,200 central Government contracts worth nearly $22 billion,

“$11 billion went to companies either run by friends and associates of politicians in the Conservative Party, or with no prior experience or a history of controversy.”

That is an incredible amount of money, and any hint that it has been spent at the behest of someone with close ties to Downing Street or for the benefit of companies that have political allies in Government is deeply worrying. It has to be examined—and examined fully, robustly and independently.

While people might understand and accept that things had to happen quickly in the circumstances, and perhaps that normal procurement rules were not sufficiently speedy, they will not accept that a Government have any right to rip up every rule, every standard, every safeguard and to start throwing about public money like a scramble at a wedding, particularly when it is their mates who are there waiting to pick it up.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

Does my hon. Friend agree that the Committee should perhaps look at other activities that this Government get up to? There are things such as the Brexit contracts—I recall that they gave a contract to a ferry company that had no ferries—and all the appointments to external bodies and regulators, which are further examples of cronyism. We need to look at this in the bigger mix as well.

[Brendan O'Hara]

I absolutely agree with my hon. Friend, and I am sure that will not have escaped those on the Treasury Bench.

The Government’s inquiry, led by Nigel Boardman, simply will not work. It cannot be seen to be independent, as we have heard, because of the baggage and the back story that he has. Mr Boardman may have carte blanche to ask whatever questions he likes to whomever he likes, but they will have carte blanche not to answer those questions. If that is the case, what is the point? I have no doubt that this scandal will rumble on, and when it does, we must have a mechanism that is robust enough to see it.

Back in 2010, in his now risible speech, Mr Cameron said:

“We can’t go on like this…it’s time we shone the light…on lobbying in our country and forced our politics to come clean about who is buying power and influence.”

I wish he had meant it back in 2010. We have to mean it now, and that is why we will be supporting this motion.

[Madam Deputy Speaker (Dame Rosie Winterton)]

We have many speakers to get in in what is a fairly short debate, so I will impose a four-minute limit to start with—that will be on the clocks in the Chamber and on the screens of those participating virtually—but it will probably have to go down to three minutes fairly quickly.

I call the Chair of the Public Administration and Constitutional Affairs Committee, William Wragg.