Paid Directorships and Consultancies (MPs)

Chris Williamson Excerpts

Wednesday 17th July 2013 Commons Chamber

[Chris Williamson (Derby North) (Lab)]

May I start by saying to the Leader of the House that it seems to me that, in his opening remarks, he was being deliberately obtuse when he said that he did not understand the motion? For clarity, let me read it to him. It seems very clear indeed. It states that

“this House believes that, as part of a wider regulatory framework for second jobs, from the start of the next Parliament no hon. Members should be permitted to hold paid directorships or consultancies.”

It could not be clearer. I do not understand the claim from the Leader of the House that the motion is flawed.

[Mr Graham Stuart]

Can the hon. Gentleman tell us the definition of “consultancy” so that we can all refer to it?

[Chris Williamson]

Here we go again. I was going to go on to say that the Leader of the House accused my hon. Friend the Member for Hemsworth (Jon Trickett) of putting up chaff, and here we have yet more chaff from the hon. Member for Beverley and Holderness (Mr Stuart). There is a clear legal definition of a consultant and if he needs to check that out, I suggest he look up the dictionary definition. I am not going to waste the limited amount of time I have explaining it to him. He knows very well what a consultant is.

As my hon. Friend the Member for Hemsworth pointed out, perception is key in this agenda. We know that Parliament and MPs are held in very low esteem by many of the electorate and it is our duty to try to repair the trust of the electorate. I say that because I have spoken to many constituents—people have also written to me—who have said, for example, that the top-down reorganisation of the national health service was done only because many senior Conservative MPs stood to benefit financially from the 49% privatisation. Surely none of us, on either side of the Chamber, can allow that sort of perception to persist among the wider electorate. People need to have trust in their Members of Parliament. The motion would go a long way towards re-establishing that trust with the electorate at large.

The Leader of the House implied that agreeing the motion would impose some terrible, onerous obligation on Members, as though this idea had somehow dropped from space, from Mars or somewhere. However, if we look around the world, it becomes clear that the restrictions imposed on fellow parliamentarians in other countries are much more stringent than the restrictions in the UK. Our friends in America have imposed strong, stringent restrictions on the elected representatives who serve in that country. This motion contains a reasonable and measured proposition that would put us on a par with many of our international colleagues.

[Sir Edward Leigh (Gainsborough) (Con)]

I do not understand why, under the terms of the motion, the hon. Gentleman would be happy with me doing what I did a few years ago, when I spent five months doing a fraud trial as a barrister, but would apparently not be happy with me attending 12 board meetings a year, all properly declared. How can attending just 12 board meetings a year prevent me from doing my job in this place? I do not understand the terms of the motion.

--- Later in debate ---

[Chris Williamson]

I think the hon. Gentleman is being a little obtuse, because there is a way round that. The earnings from that work could perhaps be capped. That might be the way forward. As a Member of Parliament, I know that my time is taken up almost entirely with being an elected representative. How he finds time to go and represent clients in court is beyond me, but that is a matter for him. One way round that problem would be to put a cap on earnings.

[Robert Flello (Stoke-on-Trent South) (Lab)]

I am enjoying my hon. Friend’s speech. I seem to recall an hon. Member from the Government Benches who went on “I’m a Celebrity” and got into a lot of trouble because she absented herself from this House. How does that compare with five months on a fraud case?

[Chris Williamson]

My hon. Friend makes an apposite point. Indeed, one wonders what Conservative Members have to say about that, because that hon. Member had the Whip withdrawn from her for having the temerity to spend her time during the recess on “I’m a Celebrity…Get Me Out of Here!” It seems to me that Conservative Members are applying double standards.

Our democracy is indeed in crisis. We have to do something about that. Politics is a noble thing. It is the way in which we introduce things such as the national health service, the welfare state, equal pay and the minimum wage. It is absolutely key that people have confidence in what we are doing.

[Mr Jim Cunningham (Coventry South) (Lab)]

Does my hon. Friend agree that poking fun at the motion sends out the wrong message to the public—that we are not taking this issue seriously?

[Chris Williamson]

It sends completely the wrong signal.

The obtuse way in which the Leader of the House approached the debate is extremely regrettable, particularly when our democracy is in crisis, as I have said. We have an obligation to restore the standing of politics in our country, because—as I was saying before my hon. Friend intervened on me—politics can and does make a difference to people’s lives. I have talked about things such as the national health service, the minimum wage and many other wonderful, progressive leaps forward that were made as a direct consequence of the political process. If we undermine our politics and do nothing to restore faith in it, people will hold us in contempt and it will be so much more difficult to make the progressive changes that are desperately needed in our country to get young people back to work, tackle the crisis of low pay and deal with the problems of ill health and the ageing population. There are so many things that we need to address, and we need a strong political class to be able to deliver those changes. We can get that by restoring faith in our political process and, as a start, agreeing to this motion.

--- Later in debate ---

[John Hemming]

I am lucky, in that I am able to arrange things so that that does not happen. I am in control of the timing in the business. Obviously, my priority is with Parliament. My duty is to Parliament, as is quite clear under our constitution and, like most hon. Members, I work seven days a week performing that duty. Admittedly I only did half a day on Sunday, and I might finish by 4 o’clock on a Saturday, but I do work the standard 60, 70 or 80 hours a week, depending on what is going on.

It has been suggested that it would be reasonable to pay people like me who have large external earnings a lower rate of pay here. I do not mind that, as long as no one says that I am not a full-time MP. This is what I resent about the motion. Its argument is that I am not doing this job correctly for my constituents because I happen also to chair a business that I have run for many years.

[Chris Williamson]

Would the hon. Gentleman accept that there is an issue of perception involved? The perception is that hon. Members’ directorships or consultancies could influence the way in which they vote on certain issues. As I mentioned in my speech, people feel that certain Members voted for the national health service reorganisation so that they could gain financially from it.

[John Hemming]

I accept that this is about conflicts of interest, and there is a problem when external bodies control what Members of Parliament do. I am a member of a trade union, so I am not anti-trade union, but if the unions are controlling what the Labour party is doing, that is not a good environment.

Similarly, there is a problem with having a second job as a Minister. That really creates a conflict of interest, because Ministers can lose their ministerial salary if they do not vote along party lines in Parliament. We accept that as part of our constitution, but it clearly involves a conflict of interest, in that Ministers have to support the Government. I am lucky as a Back Bencher; people say that I can afford to be independent. I will not lose any income if I happen to rebel against the party.