Registration of Members’ Financial Interests

Chris Bryant Excerpts

Monday 7th February 2011 Commons Chamber

[Chris Bryant (Rhondda) (Lab)]

I commend the hon. Member for Harlow (Robert Halfon) for bringing an important matter to the attention of the House. I am sure that many will want to pursue the issues that he raised in many different places, not least the right hon. Member for Bermondsey and Old Southwark (Simon Hughes). I want to correct the hon. Gentleman on just one word that he used. He referred inadvertently to the all-party parliamentary group “for” Islamophobia, but I think it is the all-party group “on” Islamophobia. Sometimes even prepositions are important.

I confess that motion 2 is on the Order Paper perhaps because several right hon. and hon. Members think that I got the matter wrong when I was a Minister. I see the Leader of the House winking at me now, possibly because he agrees that I got it wrong. I commend my right hon. Friend the Member for Rother Valley (Mr Barron) for his stewardship of the Standards and Privileges Committee. The hon. Member for Worthing West (Sir Peter Bottomley) said earlier how important it is that my right hon. Friend is not only a long-standing Member of the House but a long-standing member of that Committee, and that that is an important element in his work. For that matter, he was also the Chair of another Select Committee.

The answer that we have come up with in the motion is, I believe, the wrong answer. I do not intend to press it to a Division, but I believe that we have the wrong answer, and I shall explain why. There is no great problem with the rules as they are currently drafted. The Leader of the House and the Deputy Leader of the House disagree with me, as they did when I was a Minister, but I believe that they have presented the nature of the problem wrongly.

The Deputy Leader of the House was absolutely right about the entry of the hon. Member for East Dunbartonshire (Jo Swinson). There was no need for her to record the receipt of Girlguiding centenary merchandise, flower festival flowers and all the rest of it. Nor was it necessary for the Leader of the House himself to record that he was presented with a bottle of 2008 Beaujolais Villages valued at approximately £10—incidentally, it can be bought in most places in Rhondda for about £6.50—after he spoke at Bishop Wordsworth’s Church of England grammar school for boys for 45 minutes. If that was honestly the advice that hon. Members were given by the registrar, I think it was inappropriate advice.

A distinction should be made to identify clearly those cases in which a reasonable person would think that somebody was being given remuneration for providing a service, and in none of those cases would it seem to a reasonable person that somebody was being remunerated. I would use this rule: if I had not been given that bottle of wine, pen or whatever, would I still have made the speech? Would I still have opened the Girlguiding centre or whatever? The honest truth is yes, I would. It would not have made the blindest difference to me. That is the rule that a reasonable person would follow. I know the registrar, I have always followed her advice and I respect her enormously, but she might have used a legalistic understanding of the rules that would not in all honesty be followed by any of our constituents.

Let us imagine for the moment that the registrar is right and that all those cases should have been registered. Has it done any great harm that they have been registered? I do not believe it has done any harm to anybody. There is a greater sense of transparency, and I do not think that that is a problem. However, let us say for argument’s sake that we should not make a distinction between gifts and remuneration. There is an argument for that. It could be argued that any gift we receive for doing something—after speaking at a meal, for example—whether to the value of £400, £500 or whatever should be considered in exactly the same way. However, that is not the proposition before us this evening. The proposition is that a gift should be registered if it has a value in excess of 1% of salary, and that remuneration should be registered if it has a value in excess of one tenth of 1%. [Interruption.] I think that the Chairman of the Standards and Privileges Committee is disagreeing with me. If he wants to intervene, I am happy to give way—but he does not. I can see an argument for not making a distinction at all and for having exactly the same level for gifts and remuneration. However, I cannot see an argument for introducing a new concept at £65.

[Simon Hughes]

The hon. Gentleman might have just answered my point. To people reading and listening, talking in money terms is as relevant as percentages and tenths of percentages. Out there, people just want to know how much money we are getting or what the monetary value is.

[Chris Bryant]

That is another good point. To be honest, I think it makes more sense to have a fixed amount. The old rule used to be £125 for registration. At the moment, the limit is zero, but if the motion is passed tonight, it will move to something in the region of £65 or £66. I would prefer the number to be fixed, so that it is perfectly intelligible to every member of the public.

We all use a layer of common sense. I am chair of the all-party group on Russia. As hon. Members might know, I have adopted a very hawkish attitude towards the Russian Federation. I believe that there are many abuses in Russia and, as chair of the all-party group, I have tried to advance that argument. Now, I must confess that I was given a bottle of vodka by the Russian embassy at Christmas. I did not believe it to be a remuneration for the questions I had asked or the tenor of the debate I had conducted in the House, so I did not even bother to ask the registrar whether I should have registered that bottle of vodka. I have always been a bit suspicious about some gifts so, as it happens, I have not even opened that bottle of vodka, which is still sitting precisely where I put it when it arrived. I suspect that I will probably not get any more bottles of vodka from the Russian embassy.

If one pursued the Deputy Leader of the House’s logic, one could argue that if a Member is invited to dinner by an embassy and, somehow or other, they speak at that dinner—whether or not they are actually the speaker at the dinner—that is remuneration. However, I just do not think that that meets the common-sense test. I honestly believe that the proposition before us this evening is the wrong proposition. I can see an argument for perfect equality between gifts and remuneration, but I cannot see the argument for what is before us this evening.

Finally, on all-party groups, I agree with the hon. Member for Harlow in that when I became the chair of the all-party group on Russia, a large number of people suddenly started ringing me offering to work in the secretariat. I am sure that some did so with perfectly good intentions; I am also sure that some did so with not-so-pure intentions, because they wanted to grind an axe in relation to Britain’s attitude towards Russia. The more that all-party groups can assert some genuine independence, the better. That is why the hon. Gentleman is absolutely right that it is important to look at the process for providing an all-party group with a secretariat.

--- Later in debate ---

[Sir Peter Bottomley (Worthing West) (Con)]

It is a pleasure to follow my hon. Friend the Member for Harlow (Robert Halfon), the right hon. Member for Bermondsey and Old Southwark (Simon Hughes) and others. I am not certain that security vetting solves all problems. The number of people who have been assassinated by their own bodyguards suggests that there might be a weakness in that.

[Chris Bryant]

It is worth bearing it in mind that the person working as the secretary for the all-party parliamentary group on Russia, prior to my becoming the chairman, is supposedly being thrown out of the country by the Government, yet managed to get a security pass here.

[Sir Peter Bottomley]

I recall that about 25 years ago, the London representative of the Palestine Liberation Organisation was assassinated for being too moderate. Many people who take part in public affairs are at risk, which is one of the risks that an open society faces in peacetime just as it does at times of war.

Let me say to the right hon. Member for Rother Valley (Mr Barron) that, although I do not intend to try to divide the House on the first motion, I think it would be better to specify 0.2% or 0.3% of the parliamentary salary. A long time ago, when I was a Minister, I visited a country in south-east Asia and was presented with a tin bowl. I saw the same bowl in a shop priced at the equivalent of £130 in local currency, so I gave it to my private secretary. At the airport on my way home, I saw it again priced at £65, so I asked for it back. [Laughter.]

There will be boundary problems of that kind whatever limit is set, but my general view is that a limit of £130 or £180 would be better, and that it would be even better to make the limit the same as that applying to gifts presented to Ministers. As for the question of Members’ including on their websites gifts whose value was below the minimum, the registrar could advise us if we tried to include details that were not required according to the interpretation of the rules.

In view of your ruling, Mr Deputy Speaker, I shall not add to what has already been said about the motion on all-party groups. If it is possible for me to attend the meeting of the all-party group that has been mentioned, I will happily do so.

Let me, in passing, pay tribute to some people in my constituency. When I was involved with students from the Three Faiths Forum, I was delighted that the senior Jewish woman in my constituency was willing to meet us, as were representatives of the local Islamic society and mosque, the Salvation Army and the Worthing Churches Homeless Projects. It was immensely valuable that people were able to share that experience, and learn along with members of other faiths and people with different views. I also pay tribute to members of my local mosque, who have been pleased to attend the holocaust memorial event in Worthing. I hope that its organisers will at some stage focus on the massacre at Srebrenica. It should be borne in mind that the most recent modern massacre in Europe was a massacre of Muslims, both secular and otherwise, by people claiming membership of other religions.

I have no strong views on the issue of all-party groups, but there seems to have been a bit of “creep”. Paragraph 13(b) on page 5 of the “All-Party Groups” report by the Committee on Standards and Privileges, the eighth report of Session 2008-09, HC 920, states that in future such groups should have to

“register any commercial company with a direct interest in the work of the APG which contributes materially (say more than £5,000 or 5%, whichever is the lower) to meeting the central costs of the charity.”

According to the motion,

“The charity or not-for-profit organisation must agree to make available on request a list citing any commercial company which has donated either as a single sum or cumulatively more than £5,000”.

Perhaps the Minister who replies to the debate will tell us whether the movement from the requirement for a “direct interest” to no qualification was deliberate, and, if it was not, whether it could be considered when the resolutions are before the House.

Let us suppose that, for instance, the Army Benevolent Fund were to provide the secretariat for an issue-based all-party group. I am not saying that it should do so. Given that it has raised millions of pounds for our armed forces, I think that it would be going too far to have to list every commercial company that has given it money for that purpose, whether by gift aid or otherwise. At one stage I was chairman of the Church of England children’s society. A fair amount of money was donated to us by commercial companies for events and other purposes. I think that we might be putting a burden on some charities and not-for-profit causes if the resolution followed the motion—which will obviously be accepted—rather than the committee’s report.

Let me return briefly to the issue of earnings as opposed to gifts. For a number of years I have tried to avoid having any outside earnings. I failed in the current year, because I wrote an obituary for a friend and, rather to my surprise, received a cheque from the newspaper that kindly published it. I have given the money away, but it clearly constituted earnings, and I think that I am obliged to declare it. I believe that the sum was £300. A long time ago, between 1979 and 1984, I was personnel director of a fairly major commodities trading company. I should have been very prepared to declare the salary that I received for that.

On another occasion, I was an adviser to the International Fund for Animal Welfare. I gave it advice that it did not take and did not want, but its founder asked whether I would do more work for it, which I did, although it did not take any notice of what I said. That relationship came to an end in time.

What is clearly employment or something done for the purposes of an organisation for which one is paid should be declared, and what one is doing outside ought to be. However, I have a warning. Let us suppose that Peter Thurnham, who was a colleague at one stage in this House and who bought two machine tools when he was unemployed and set up an engineering business, entered the House of Commons when the business was on its feet. How would he calculate the time that he was putting into the business? That seems to be a very difficult thing to do. When James Callaghan was a farmer after being Prime Minister, how much time did he put into it? When Michael Foot was writing his biography of the founder of the health service, how much time did he put into it? If I, for example, had to put in the number of hours that I spent on the obituary, I would have to guess. It is obvious that we have to be prepared to put down rough and ready figures, which will not be easy.

The key point is to back a system where people will feel embarrassed if they know that they are doing something wrong, rather than having an enormous box-ticking exercise. I hope that when we ask the Committee on Standards and Privileges to review the matter and it conducts a consultation, more people will agree that 0.1% is too low and could be at least doubled or trebled without disadvantage to the House or to the interests of the public.

--- Later in debate ---

[Mr Barron]

I will make sure that the hon. Gentleman gets that information.

The Committee also said:

“The trivial nature of some of these payments and the disproportionate effort involved in recording and then registering them has called into question the utility of the rule. The February 2010 edition of the Register contained over 100 more pages than the June 2008 edition.”

The figures were 264 pages as opposed to 157. If what we have heard is correct, it is clear that the many hon. Members who have not registered bouquets of flowers, pots of honey and so on could eventually find that they are outwith the register. Given those circumstances, we need to address this area.

[Chris Bryant]

The main change was that previously we had to register remuneration in our capacity as a Member of Parliament and we did not have to register things all the way down. We have introduced much greater transparency, which has meant that we now know about earnings of hon. Members that have nothing to do with their membership of the House.

[Mr Barron]

I accept that, although I believe that my hon. Friend said that he saw no real difference between gifts and remuneration. It seems to me that if I make a speech to a company and am given a £500 gift, it is more likely that that is remuneration, it is declarable and should be declared in the Register of Members’ Financial Interests. As I said in my opening speech, this is a grey area and we are trying to make things as clear as we can. Both these motions will help the House and I hope that the House will support them.

Question put and agreed to.

Resolved,

That—

(1) this House agrees with the recommendations in the Tenth Report of the Committee on Standards and Privileges, on Registration of income from employment (HC 749);

and

(2) accordingly the resolution of the House of 30 April 2009 relating to the Registration of Members’ Financial Interests be amended, by leaving out paragraph (2) and inserting:—

“(2) That such a payment shall be registered

(a) where its value exceeds one tenth of 1 per cent. of the current Parliamentary salary; or

(b) where the total value of payments from the same person, organisation or company in a calendar year exceeds 1 per cent. of the current Parliamentary salary.”

All-party groups

Resolved,

That—

(1) this House agrees with the recommendations in the Eighth Report of the Committee on Standards and Privileges of Session 2008-09, on All-Party Groups (HC 920); and

(2) accordingly the resolution of the House of 17 December 1985, as amended on 10 March 1989 and 29 July 1998, be further amended by leaving out paragraph 3 and inserting:—

“3. Groups whose membership:

• is open to all Members of the House of Commons and House of Lords, and

• includes at least 20 Members (each of whom must be a Member of the House of Commons or House of Lords), comprising: at least 10 Members who are from the same political party as the Government, and at least 10 who are not from the Government’s party (of whom at least six must be from the main opposition party), and

• includes at least one officer who is a Member of the House of Commons be required to register the following information on the Register of All-Party Groups:

(a) The full title of the group. If persons other than Members of the Commons or Lords are allowed full membership (i.e. voting rights) the term ‘Associate Parliamentary Group’ must be included in the group’s title. If such persons are not allowed full membership the term ‘All-Party Parliamentary Group’ must be included instead. The rest of the group’s title should simply reflect the group’s subject so that the latter is obvious from its title alone.

(b) A brief summary of the group’s main purpose.

(c) The names of the group’s officers. At least one officer must be an MP; each of the other officers must be a Member of the House of Commons or House of Lords.

(d) The names of exactly 20 qualifying Members (each of whom must be a Member of the House of Commons or Lords), comprising: 10 Members who are from the same political party as the Government, and 10 who are not from the Government’s party (of which at least six must be from the main opposition party).

(e) The contact details of the group’s registered contact, who must be both an officer of the group and a Member of the House of Commons, and is the person ultimately responsible for the group’s compliance with the rules of the House.

(f) Any relevant gainful occupation of staff to the group who hold a parliamentary pass (relevant gainful occupation means any occupation that is advantaged by the privileged access afforded by the pass).

(g) The source and extent of any financial benefit (e.g. donations) and the source and nature of any non-financial material benefit (e.g. provision of goods or services) received by the group from a single source outside Parliament, if the value of the benefit equals or exceeds the financial threshold for registration (currently £1,500) in a calendar year. Once the group has made that initial registration, any further donation received from the same source in the same calendar year should be registered if its value exceeds £500.

(h) The website address of any organisation registered as the group’s secretariat.

(i) If a consultancy is registered as the group’s secretariat, the names and website of the consultancy plus the name of any client of theirs who is specifically paying the consultancy to act as the secretariat must also be registered. The consultancy must either publish on its website its full client list or agree to provide such a list on request, otherwise it is not allowed to act as the group’s secretariat.

(ii) If a charity or not-for-profit organisation is registered as the group’s secretariat, the former’s name and website must also be registered. The charity or not-for-profit organisation must agree to make available on request a list citing any commercial company which has donated either as a single sum or cumulatively more than £5,000 in the course of the 12 months prior to the month in which the request is made, otherwise it is not allowed to act as the group’s secretariat.

(i) The address of the group’s website, if it has its own website.

(j) The date of the group’s inaugural election of officers and of any Annual General Meeting held thereafter.

(k) Affiliation to the Inter-Parliamentary Union and Commonwealth Parliamentary Association, if the group is affiliated to either or both.”—(Mr Barron.)