Lobbying of Government Committee

Chloe Smith Excerpts

Wednesday 14th April 2021 Commons Chamber

[The Minister for the Constitution and Devolution (Chloe Smith) [V]]

I welcome the chance to contribute to this Opposition day debate. I am sure that you will appreciate, Mr Speaker, that it is appropriate and possible to do so virtually.

First, may I add my own tribute to those made earlier this week to His Royal Highness the Duke of Edinburgh, whose commitment to the service of this country and to the highest possible standards of conduct was exemplary?

During the extraordinary challenge of covid-19, the Government have worked with people and businesses of all sorts—from private citizens to key workers, from our brilliant small and medium-sized enterprises to multi- nationals. In that monumental effort to protect the public and save lives across the country, civil servants across Government, working under incredible pressure, have achieved extraordinary things.

Even away from times of crisis, this country can be proud of the standards that we uphold. In Transparency International’s 2020 index, which ranks countries, the United Kingdom was ranked above close European neighbours such as France and Ireland in 11th place. We are the first G20 country to establish a public register of domestic company beneficial ownership and the first G7 country to undergo an IMF fiscal transparency evaluation.

This Government value such reputation and will always uphold it. As hon. Members heard my right hon. Friend the Prime Minister say just now, we are concerned about some of what has emerged in recent weeks. Most of what this complex motion proposes is already being done. Indeed, as the policy Minister responsible, it is perfectly sensible for me to respond today on behalf of my Department. The hon. Member for Leeds West (Rachel Reeves) has shadowed me before—10 years ago—and it is good to see her again today in her place.

The motion seeks to establish in Standing Orders a Select Committee with a remit so wide-ranging as to cut across Parliament’s existing Committees and independent bodies that have responsibilities in this area. Let us take the elements part by part. Looking at the effectiveness of existing legislation on lobbying, the Government are already doing this and I shall explain more in a second. On the Greensill affair, an independent review was announced this week, before this motion was laid, and will be effected. On transparency measures and the ACOBA framework, the Cabinet Office is already working to strengthen the former and supporting the reforms of my noble Friend Lord Pickles to bolster the latter. We are opposing the motion today because it seeks to duplicate the work that is already in the gift of Parliament and its Committees and, as I will set out now, work that is already being undertaken by the Government.

Starting with the effectiveness of existing lobbying legislation, we are currently conducting post-legislative scrutiny of part 1 of the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014, which we all know as the lobbying Act. It is looking precisely at the scope and effectiveness of that legislation. The hon. Lady did not mention that—not one whit. That legislation introduced a new statutory register of consultant lobbyists and a requirement that those undertaking paid lobbying on behalf of any third party must register and make clear who they are representing to Ministers and permanent secretaries.

The requirement for consultant lobbyists to declare that work complements the system of self-regulation that lobbyists also adhere to through professional codes of conduct. It makes transparent otherwise hidden lobbying. It remains an important part of the framework, filling an accountability and transparency gap that existed prior to that point. We think that it operates effectively but, as I have said, we are looking at whether further improvements can be made, as is best practice through post-legislative scrutiny. Once that work is complete, we intend to deliver a memorandum to the Public Administration and Constitutional Affairs Committee for further scrutiny. Would it really be constructive for these workstreams to be undertaken in parallel by separate Committees, potentially cutting across one another, sowing confusion? We think that it would not.

While the creation of Select Committees is of course a matter for the House, there are already relevant Committees in Parliament with the powers and capacity to do such work as is proposed. I note that the Chair, and indeed the prior Chair, of PACAC have already spoken today. That Committee is responsible for the examination of the quality and standards of administration across the Government. In this Parliament, it has already undertaken relevant inquiries. Indeed, it has also called the chair of the Committee on Standards in Public Life to give evidence. It has the powers to send for persons, papers and records, and to report to the House—the powers proposed for the new Committee—so I question the necessity of an additional Committee. Indeed, that additional proposed Committee would also cost a quarter of a million pounds.

Her Majesty’s Government has a full framework in place to ensure that public money is spent efficiently, and that those who serve as stewards of those public resources act in accordance with the highest standards and in the public interest. The use of public money is overseen by the Treasury and, of course, Parliament, and the use of public position and information is overseen by the Cabinet Office and rightly held to account by Parliament and the public. Furthermore, all those who work across the public sector are expected to maintain the ethical standards embodied in the seven principles of public life, which underpin the respective codes for Ministers, for the civil service and for special advisors, as well as the code of conduct for board members of public bodies. That requirement to act with integrity means that public office holders must avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence them in their work, and all holders of public office must declare and resolve any interests.

We are not complacent, neither about the scale of this challenge nor about taking action where necessary to uphold the public’s faith in what we should all stand for. Since 2010, under the coalition and then under Conservative Governments, we have significantly increased transparency on the workings of Government—which the public should rightly be able to expect—from publishing contracts and details of spending, salaries, tenders and meetings to launching that statutory register of consultant lobbyists, far more than ever published under the last Labour Government. This Government have banned the once-endemic practice of Government quangos hiring lobbyists to lobby the Government. They have ensured that taxpayer-funded Government grants are not then used to lobby the Government themselves. They have introduced greater transparency of trade unions and campaign finance controls on third parties seeking to lobby in our elections, so when the Government are being held to account—as is right—it is because a tougher regime of transparency has been in place for over a decade, and is now the norm.

We are going further still to uphold the covenant of trust with the public. I have already touched on the Government’s review of lobbying legislation. In addition, we are reviewing and improving business appointment rules, which I will return to in a moment or two. However, as the hon. Member for Leeds West dwelt upon at some length, the Cabinet Office this week has announced a review on behalf of the Prime Minister into the role in Government of Greensill Capital, the finance company that went into administration last month. The review will look at the development and use of supply chain finance associated activities in Government, and specifically the role of Greensill, including how contracts were secured and business representatives engaged with Government.

The review will be wide-ranging, and will also consider the issues raised by my noble Friend Lord Pickles regarding Mr Bill Crothers’ role at Greensill Capital. The public can be assured that Mr Nigel Boardman, the senior lawyer leading the review, who will pause his activities as a non-executive director at the Department for Business, Energy and Industrial Strategy for the duration, will have full access to the people who were in government at the relevant time and who made the relevant decisions. I would add that the information that has already emerged in recent weeks about Greensill Capital has done so in some part because the system in place is doing its job, and ensuring support for transparency and accountability.

I will not go into great detail further about recent events, because that inquiry will do so, but two further things can be said now about lobbying policy. First, the Registrar of Consultant Lobbyists conducted an investigation into Mr David Cameron’s activities, and has confirmed that those did not require registration under the current legislative framework. For good reason, these rules apply to consultant lobbyists, who may seek to influence policy making on behalf of a third party who would otherwise be hidden. Mr Cameron was working openly in-house as an employee. To complement this law, the meetings of Ministers and permanent secretaries with external organisations are published on a quarterly basis and are made available on gov.uk. That data describes both the purpose of the meeting and the names of the organisations or individuals who are met. That is very important. Regulation must of course balance the need for transparency by lobbyists while not preventing engagement by the voluntary and private sectors.

The second thing is to engage in the politics of today’s Opposition day, although it is a great shame to do so in a period of national mourning. The hon. Member for Leeds West failed to say that Labour now wants to repeal the Transparency of Lobbying, Non-party Campaigning and Trade Union Administration Act 2014. This was in its manifesto, alongside repealing the Trade Union Act 2016. Who is not to say that the Labour party would simply give favours to the union barons who bankroll it? After the EU referendum, Labour MPs called for tighter controls on third-party campaigning, but their official policy is to rip up these lobbying laws. Indeed, in 2014, at the time of making that law, the Labour party supported amendments that would have placed significant barriers on engagement and required thousands of businesses, charities, non-governmental organisations and trade bodies to pay a registration fee of £1,000 a year to write or speak to Ministers. This could have been detrimental to the public interest during the covid pandemic, when groups across civil society rightly wanted to put their case to Government.

However, I agree with the hon. Lady that transparency and probity are fundamental. I would like to cover one more area on business appointment rules. As I have mentioned, the Cabinet Office is working with Lord Pickles, who is the chair of the Advisory Committee on Business Appointments—ACOBA—to improve and extend the business appointment regime. That applies lobbying bans on former Ministers and civil servants, including special advisers. The business appointment rules seek to protect the integrity of the Government while allowing for people to move on to roles outside government. Although affording ACOBA statutory powers to enforce these rules would be out of line with the general principle of UK law that Ministers and officials are subject to the same legal system and statutory framework as everybody else, ACOBA is able to enforce a range of sanctions for non-compliance. That is very important. The Government support changes being introduced by ACOBA to improve the business appointment process. A framework with a risk-based consideration of cases aims to bring greater transparency and improve the reporting of any breach of the rules, increasing the moral and reputational pressure on those leaving public office. In addition, the Cabinet Office is leading work to improve the scope, clarity and enforcement of the rules, and how consistently and proportionately they are implemented across government. In short, we are taking action on a range of fronts to ensure that we maintain the highest standards in our politics and public life.

We should all condemn the kind of lobbying that gives politics and politicians a bad name in all parts of the House, but this motion does not achieve that. Instead, it sidetracks, proliferates and duplicates. I invite Labour to settle its own view, find its own position, and agree with us that transparency and probity are vitally important. I urge all hon. and right hon. Members to join us in this work to continue to scrutinise these critically important matters through the work of existing Select Committees, through the Committee on Standards in Public Life, and through the inquiry that we have now set up—among other ongoing, unstinting efforts that are of course accountable to this House—and to vote against this unnecessary and unconstructive motion that achieves so little extra. It is incumbent on all politicians to act with integrity as elected Members, as Ministers when we hold such positions, and in accordance with the principles of public life. It is incumbent on all of us in this House to ensure that important issues are carefully and effectively scrutinised. I have explained today how the Government are playing their part in this, and I urge all hon. Members to vote against the motion.