Commercial Lobbyists (Registration and Code of Conduct) Bill

Chloe Smith Excerpts

Friday 1st February 2013 Commons Chamber

[James Duddridge]

Absolutely, and I would not want to see the Bill go into Committee without such a definition. I would want the Government to define what a lobbyist is—perhaps the way forward is to define a lobbyist by what it is not, rather than by what it is, so that we have absolute certainty that certain organisations will be exempt from the provisions. I am sure that we will have a debate; I am sure Labour Members will want trade unions to be exempt from the register, although I would quite like them to remain on it. We might wish to give preference to and exempt some trade organisations, but we will want others to be very much part of such a register so that we have the transparency sought by the Bill.

I was glad that the consultation received more than 260 responses. Lord Wallace of Saltaire from the other place has eloquently summarised the feedback. At one point, the Government summary of replies to the consultation document states

“in effect, a lot of those consulted regard themselves as a legitimate part of the political process but regard everybody else as lobbyists”.

That is spot on, and quite often people who come to us talk in similar language. Lord Wallace said that although there is need for reform,

“there is a quite remarkable dissensus among respondents”

I was unfamiliar with the word “dissensus”, but I can work out what he means and I broadly agree with his conclusion.

I look forward to seeing the Government response to the consultation. I believe that some of the inputs to the consultation have been published, but I could not find that, so I assume the Government have not yet responded, given that the consultation was in January 2012—[Interruption.] The Parliamentary Secretary, Cabinet Office, my hon. Friend the Member for Norwich North (Miss Smith) is kindly passing me a document, but I am unclear whether it is a summary of responses or the Government position. Flipping through, it seems to be the summary of responses, rather than the Government response to those responses.

[The Parliamentary Secretary, Cabinet Office (Miss Chloe Smith)]

indicated assent.

[James Duddridge]

My hon. Friend nods and I am grateful to her. I have looked at part of those responses, although not at them all. Perhaps in her concluding remarks she will indicate when the Government will respond to the consultation as that would be helpful for the House. I would certainly find it interesting to read the Government’s response alongside the summary of responses to the Cabinet Office consultation document, “Introducing a Statutory Register of Lobbyists”. The majority of respondents welcomed the Government’s commitment to achieve greater transparency and were supportive of a statutory register of lobby interests. However, there was a definite overlap between the responses on definition and scope; the definition presented a particular issue for many respondents and there was a widespread recognition that arriving at the right definition would be fundamental to the register’s effectiveness. The Bill completely sidesteps that issue, despite making an attempt to define lobbying.

The overarching theme that emerged from the consultation was that the proposed definition was narrow, and a number of respondents stressed that until the definition was clear, it would be difficult to determine other factors raised by the subsequent questions, especially scope. There was also considerable support for consistency in application to ensure equal treatment of all parties. In keeping with the emerging theme on definition, the predominant view expressed under the question of scope was that a wider scope was preferred but that that should not result in disproportionate burdens. That is very difficult to do; I suspect that a balancing act will be needed in relation to scope, and what is in the code and who should be subject to it.

There was general consensus among respondents that it was difficult to address the question of the information to be provided without clarity on definition and scope. The majority of respondents favoured the disclosure of financial information alongside other information. Such an approach is entirely right; it is insufficient simply to say, “You are lobbying on behalf of A, B or C.” Although I said that more information should be available, people can become bogged down by information if we are talking simply about volume over a small number of categories and they might not be able to see the bigger picture. One can imagine lobbyists listing client upon client and our then finding that they are billing some of them only a few thousand pounds, whereas they might be charging some of the bigger clients £1 million. Such information allows us to estimate the size of the work that they are doing, which then allows people to track things down. They can ask, “Why are X, Y and Z companies getting £1 million? Why are they on a £1 million retainer for this?” People would be able to examine the marketplace, see what lobbying activity they have said they have done and see press speculation. If there is any gap, people could investigate further, so that information would be very useful.

We have already discussed when the register should be updated. The idea of a formal publication quarterly could work, although we could force people to register slightly earlier and put things on the internet. The idea that we should have a quarterly written publication that is produced and pumped out to all interested parties is somewhat old-fashioned. It would be quite possible to have a rolling register on the internet. That may be more appropriate, even if it were to contain only a rolling number of names of individuals and amounts, prior to a formal publication each quarter, if indeed that were needed. In the case of some of the specific examples discussed today, it would be essential—this is more than a preference—for us to have that information on a regular basis.

We have already discussed funding, so I will not detain the House any longer on that. Interestingly, there was support for strong sanctions to apply to those on the register, so we must ask what happens when things go wrong. We have not debated that at great length, but it goes to the heart of the matter. If someone could carry on acting in the same way, there would be little point in the register. This is not a monitoring exercise. We should not feel better about ourselves just because we catch people doing wrong—or what we perceive to be wrong. That is what we legislate for; this should be about improving the quality of democracy. We need to consider the sanctions. We need to consider how we fine people and whether it is purely a matter for the lobbying registration council or whether the state should take a greater view. Are we going to say that in some cases it is a criminal offence to do certain things in respect of lobbying rather than saying that it is an offence against the lobbying registration council that will be punished internally? Are we saying that the law is sufficient at the moment? This matter is crucial and, as on the code of conduct, it will be incumbent on the Government when they publish a draft Bill to give us a copy of the documents that they are proposing, even if some of the detail is not included and even if the documents are only in draft. Without that information it will be very hard to see from the Government Bill whether it is indeed the appropriate way forward. Cross-party support would be encouraged by the publication of as much information as possible, particularly on the issue of sanctions, which has not been touched on during this debate.

I was going to go into more detail on the definition of lobbying, but I do not wish to do that now as we have covered a lot of that territory. However, I would like to caution against accepting the lobby industry’s definition of lobbying. Clearly, if the industry had been operating well, properly and transparently in the interests of democracy, we would not be here today. So it is somewhat ludicrous simply to say, “Well it is agreed by the industry” and then move forward.

Clause 4(2) exempts the activities of Members of Parliament from the definition of lobbying, and I very much welcome that. Clause 3(3) deals with the issue of passes, and I was disappointed that the words

“or former member of either House”

found their way into the Bill. I listened to the reasons that the hon. Member for Dunfermline and West Fife gave, and I think he disagrees with that provision but left it in the Bill out of courtesy to other Committees of the House that were considering it. It would be wholly inappropriate if the duties we put on a lobbyist—someone trying to lobby this current House—were less for a ex-Member of either House than for a member of the public. Someone is either a Member of Parliament or an ex-Member of Parliament, and I do not think we should blur the lines on lobbying.

I have outlined the case for caution, and I wish to discuss the arrangements in other countries. However, for the sake of the debate, before I do so I shall touch on issues in the United Kingdom. The UK has a specific problem with commercial lobbying in the House of Commons, and it relates to all-party groups. We have not discussed this matter in detail, but we have touched on it tangentially. I am sure that many of us here are members of all-party groups, which provide a strong function for the House of Commons, despite confusion among the public as to what an all-party group does and what a Select Committee does. Sometimes, these groups are sparsely attended by MPs and Lords, but are very professional operations, and sometimes at their heart are industry lobbyists.

I was once surprised in Parliament to bump into an old friend with an interest in politics, because I thought they worked in outside industry. They were not of an age at which I would have expected them to be an intern, and neither were they one of the more senior staff members. I could not see their pass, so I asked, “What brings you here?” They turned it around, and it was a blue pass. I am not sure if you are familiar with blue passes, Mr Speaker, but they are for all-party groups. This individual was paid by an external lobbying organisation and had a House of Commons pass not issued by an MP. I am not sure who issues them.

--- Later in debate ---

[The Parliamentary Secretary, Cabinet Office (Miss Chloe Smith)]

I join those who have contributed to today’s debate in congratulating the hon. Member for Dunfermline and West Fife (Thomas Docherty) on securing a debate on this Bill, and, as I understand it, he has another five on the Order Paper today and four last Friday, which is no mean feat. I thank the hon. Gentleman for having brought today’s proposals to the House and for allowing us to have what I think has been a very constructive debate.

Albeit from one of my ministerial colleagues, I have certainly learned a new word today—“dissensus”, which is presumably the opposite of “consensus”. I think it is a fine word and that it has a place in today’s debate—perhaps as a description of some hon. Members’ comments—but I am more interested in the opposite idea of consensus. I know we have all acknowledged how complicated the issue is and how important it is to be careful to get such legislation right.

The Government are committed to introducing a statutory register of lobbyists. Following the election of May 2010, the Government said in the coalition’s programme for government:

“We will regulate lobbying through introducing a statutory register of lobbyists and ensuring greater transparency.”

We said in our consultation document:

“The purpose of the UK register is to increase transparency by making available to the public, to decision-makers and to other interested parties authoritative and easily-accessible information about who is lobbying and for whom. This will help ensure that those seeking to influence decisions do so in a way that is open to scrutiny, improving knowledge about the process and the accountability of those involved in it.”

At this point, I pause to pay tribute to the notion of my hon. Friend the Member for Shipley (Philip Davies) that anybody in public office ought to be able to hold a robust conversation with anybody who comes their way. I have no doubt that the hon. Member for Dunfermline and West Fife would agree with that.

Another important point in our consultation document is that

“the register is not intended to capture or deter a range of activity that is essential to a vibrant democracy. So, for example, the register is not intended to cover the normal interaction between constituents and their MPs. Nor should the essential flow of communication between business leaders and Government, civil figures, community organisations…and so on, be included.”

I think that helps to provide an answer to some of the many and varied points made today about the appropriate bounds of this debate.

Let me say something about transparency. The Government already release a significant amount of information—which Members and anyone else who is observing our debate can find on the website data.gov. uk.—and we have made a clear commitment to increasing the transparency of what we do and making it easier for the public to hold politicians and public bodies to account. That has resulted in the quarterly publication of details of ministerial meetings and Government procurement, and a number of other items of public interest.

I acknowledge what was said by, for instance, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) about the importance of transparency and the efforts made by many Governments in that regard. In my view, the present Government publish an unprecedented amount of information about those who are met by Ministers and senior officials, but at present it is not always obvious whom those people represent. The Government therefore want a register that will bring more transparency to the lobbying process.

With that in mind, I accept that some elements of the hon. Gentleman’s proposals have merit. I think he grasps the importance of having a relatively simple register that does not impose disproportionate burdens on those who are required to comply with his Bill. The Government are also determined to avoid unnecessary regulatory burdens that would prove detrimental to the United Kingdom economy. I am very mindful of the costs that may be associated with the statutory register, and I want to explore that issue fully as we develop and introduce our own proposals.

The hon. Gentleman recognises the importance of avoiding ambiguity when defining lobbying activity. That, too, is a view that I heard loud and clear in the responses to last year’s consultation. The Government are making it a priority to consider a wide range of definitions, including international definitions. I pay tribute to my hon. Friend the Member for Rochford and Southend East (James Duddridge), who gave us a tour d’horizon of the systems used elsewhere. The parameters of the chosen definition will be made very clear in the context of the UK lobbying industry: I intend there to be no scope for ambiguity, so that we can ensure the success and effectiveness of the register.

The hon. Gentleman also recognises that there is little appetite for a publicly funded register of lobbyists, and his proposals for a fee-based system are certainly worth considering. A range of responses to the consultation dealt with that point; they can be found in “A Summary of Responses to the Cabinet Office's Consultation Document ‘Introducing a Statutory Register of Lobbyists’”, which has already been brandished by my hon. Friend the Member for Rochford and Southend East.

There are other parts of the Bill which I believe need further exploration. There is, for example, the hon. Gentleman’s proposal for the establishment of a lobbying registration council, for which he was taken to task in some detail by my hon. Friend the Member for Bury North (Mr Nuttall). I think that it is an interesting idea, but, like others, I should like to know more about the council’s membership.

The hon. Gentleman proposes that the Secretary of State should be able to decide, through secondary legislation, what level of information disclosure should be required of those who are on the register. I should like to go into the matter in more detail with the hon. Gentleman. I look forward to working with him constructively on that and other issues, including the issue of the code of practice which his Bill empowers the council to draw up. That is clearly a significant role for the council, and I should like to know how the necessary authority and expertise could be channelled in a way that would enable the code to be effective and enforceable.

I think that there is much to applaud in the hon. Gentleman’s Bill, but it raises further questions which, as I know he agrees, need to be explored fully. I look forward to working collaboratively with him on those issues.

[Philip Davies]

Not too collaboratively, I hope.

[Miss Smith]

I can only assure my hon. Friend that on Fridays in the House we all seek to have debates that are to some degree collaborative.

[Mr Nuttall]

Has my hon. Friend had a chance to look at “A Summary of Responses to the Cabinet Office's Consultation Document ‘Introducing a Statutory Register of Lobbyists’”? Paragraph 95 states:

“Concerns were also raised by a large number of respondents who said they could not identify the problem that the register was aiming to solve.”

[Miss Smith]

That takes me to exactly the points to which I want to return. As I have said, the Government are committed to the establishment of a statutory register of lobbyists, which we think would be an important step towards making politics more transparent. I certainly think it important to open up politics and make it more accessible to everyone. I agree with my hon. Friend that lobbying has an important function in politics, namely the putting forward of legitimate views when they are held. That helps in the development of better legislation. However, we need to address the question that he raises: what is the gap that needs to be filled in this case?

In our consultation on introducing a statutory register of lobbyists, various parties, organisations, individuals and businesses told us what the register should look like and what the gap is. That information is helping the Government reach conclusions on some very tricky questions, such as how we should define “lobbyist” and “lobbying”, what sort of information should be held on the register, and what penalties should be imposed on those who do not register. The hon. Gentleman has made various suggestions, which I want to take into account alongside those received from the Political and Constitutional Reform Committee.

Although the Government have made strides in increasing the transparency of what we do, thus making it easier for the public to hold politicians and public bodies to account, there is one important gap. Our consultation document states that

“under the current system, when Ministers meet lobbying firms it is not transparent on whose behalf they are lobbying”,

and that is the gap we should address through this sort of legislation.

The Government consultation received a large response, showing just how important the issue is to the public and why we are working so hard to get our proposals right. Following the consultation, we are currently taking stock. The evidence from the consultation and the Political and Constitutional Reform Committee report will allow us to develop the statutory register in a way that increases transparency while ensuring equal treatment of all parties, and without placing disproportionate burdens on those affected.

The Government are committed to introducing a statutory register of lobbyists.

[Thomas Docherty]

Does the Minister intend to publish the revised proposals before the House rises at the end of the Session or, failing that, before the summer recess?

[Miss Smith]

As I have said, we are currently taking stock. It is important to take time to get these proposals right. This remains a coalition commitment, and I look forward to working with the hon. Gentleman to move it forward.