House of Commons Disqualification (Amendment) Bill
Debate between Chuka Umunna and Peter Bone(13 years, 2 months ago)
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Mr Bone
Unusually, I disagree with my hon. Friend. If we go back to the years of Wilberforce, or the time of the American civil war, Members of Parliament quite often campaigned and voted against the Executive’s line. The Government would lose major pieces of legislation, but the Government did not fail; they carried on. That was what Parliament was supposed to do.
Mr Chuka Umunna (Streatham) (Lab)
I am extremely grateful to the hon. Gentleman for giving way, particularly as, I must confess, I was not here for the beginning of his comments. Does he not acknowledge that in the time of Wilberforce, to whom he referred, political parties were a little different, and there was not the same volume of legislation? Perhaps I could ask him a key question. Is he not really arguing for a strict separation of powers? Ultimately, is not his point of contention that he objects to the fusion of the Executive and the legislature? That seems to be the real point.
Mr Bone
A shadow Minister—somebody who is obviously going up the greasy pole. The hon. Gentleman asks a very reasonable question about the separation of powers. Some Labour Members, such as the hon. Member for Nottingham North (Mr Allen), argue strongly that there should be a complete separation of powers. I do not, but I argue that the danger of a total separation of powers comes if Parliament is not effective. I understand the point that the hon. Member for Streatham (Mr Umunna) makes, but although my Bill would increase the separation of powers, it would stop their total separation.
Mr Umunna
Again, I take issue with what the hon. Gentleman says, because it ignores developments in the House of Commons over the past few months. Let us look, for example, at how the Select Committee system has absolutely reasserted the scrutiny power of this place. Many would argue that the drift of the culture in this place is towards much more scrutiny and less takeover by the Whips system.
Mr Bone
The hon. Gentleman is absolutely right. This is a totally different Parliament. There has been huge progress by Parliament and the coalition. Now is the time to press for even more reform. The one group of people who are absolutely opposed to any lessening of the Executive’s power are the Whips, because they see their whole job as getting the Executive’s business through. This is an opportunity that we should not miss and may I say, as heartily as the hon. Member for Streatham does, that I acknowledge the huge improvements that the Government have made to parliamentary scrutiny?
Mr Bone
My hon. Friend raises an important point that has been used as the sole argument for keeping the Whips Office. If a Member of Parliament is suffering from a problem with which they need serious help, the last person they will want to go to is their Whip. Their party might even be the last people they would want to go to. Instead, they would want to see an independent professional, and such a person should be available in the House of Commons. It would be a huge improvement, not a setback.
Mr Bone
Now Madam Deputy Speaker—no, I am not going down that route. I am saying that professional help should be made available, as it is in any other organisation, through human resources, for people having serious problems. We all know that if we were in a big company, there would be somebody in that company who would either provide professional advice or get us to the right person, but we do not seem to have that in the House of Commons. Given the enormous pressure we are all under, that is rather surprising.
Another argument for the Whips Office is that it channels the views of Members of Parliament back to the leadership. Well, it certainly does that! But, of course, all the parties have vocal and successful Back-Bench committees. In my party, it is the 1922 committee. The Labour party has the PLP. It channels views back to the leadership, and I do not see why that function needs to be duplicated by the Whips. The role of the Whips could be made redundant quite easily. The public are crying out for a change in how Parliament operates: they want less power given to the Executive and they want Members who represent their views and use their own judgment, rather than acting as Lobby fodder to rubber-stamp the decisions of the Executive and blindly following the leadership’s view without even knowing what a Bill is about.
The Government’s recent initiative on debating and voting on e-petitions demonstrates their wish for a stronger Parliament and more scrutiny. Well done, again, to the Government! However, if these petitions are to be successful, there must be no whipping. What is the point of introducing an e-petition to Parliament that hundreds of thousands of people have signed, if the decision is to be made not by individual Members of Parliament using their own judgment, but by Members following the party Whip? I hope that e-petitions, at least for Government Members, will be subject to free votes.
The public want Members of Parliament who take their time to understand the issues being debated, who vote according to their conscience and who have at least some independence of spirit. Therefore, despite the recent scandals—or perhaps because of them—Parliament needs to be strengthened. I argue strongly that my Bill would benefit our democracy hugely, by ensuring a proper separation of the Executive and Parliament while still keeping part of the Executive in Parliament. The danger of not doing so is that we would end up with a US-style settlement, as some hon. Members want, where the Executive are outside Parliament.
However—to address the point that my hon. Friend the Member for Totnes made—that would not be the only benefit; there would also be a huge benefit to the British economy. The public, having followed recent events, have become increasingly irritated by the scale of expenditure in Parliament. By abolishing the Whips’ positions, we would be saving approximately £6.5 million per Parliament in ministerial salaries—a quite astonishing amount. One of the reasons, the Executive say, why the number of MPs is being cut is to save money. Alongside the well-thought-out plans to reduce the number of Members, surely we should at least make some effort to reduce the size of government as well. It should be remembered that Whips are in fact Ministers. By getting rid of Whips, we would be reducing the number of Ministers; we would, in fact, be supporting smaller and better government.
Although I like to think that my argument about preserving the democratic heritage of Parliament is enough to win the day, I understand that there are those who feel that, as my hon. Friend the Member for Wycombe (Steve Baker) said, nothing would get done if parties did not organise their Members sufficiently strongly. In other words, business would not go through the House and everything would grind to a halt. I say that we should look to the other place. Of course the other place has parties too—it also has Cross Benchers—but its Members are far more independent-minded and far more likely to vote against the party Whip, and yet nobody would seriously suggest that this Chamber does a better job of scrutinising legislation than the other Chamber.
Treasury
Debate between Chuka Umunna and Peter Bone(13 years, 11 months ago)
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Mr Umunna
I agree with my hon. Friend and I shall expand on that matter a little later. An example of the participation of members of mutuals is displayed when one attends a building society annual general meeting. The participation rates in such AGMs have increased sharply over the years, and some have member panels, which play an enhanced role in the management of the organisation. I am in favour of markets, but properly regulated ones. That means that we need to redemocratise the market so that it serves people, rather than having things the other way round, which is an avenue we have gone down too much over the past couple of decades. Giving life to mutuals is a good way of redemocratising the financial services sector.
Secondly, mutuals add biodiversity to the financial services sector; a thriving mutuals sector adds to the diversity of the financial system. The more diversified the financial system in terms of size, ownership and structure of businesses, the better able it is to withstand the strains produced by normal business cycles and we can also avoid the herd instinct commonly displayed in the market over recent times.
Thirdly, mutuals have a lesser appetite for indulging in risky financial activities and so, on the whole, they weathered the storm well during the global financial crisis. For example, building society mortgage arrears are less than two thirds of those of the market as a whole. Building societies are also, thankfully, legally barred from taking positions in derivatives, foreign currency and commodity markets, which is where other financial organisations have found themselves in deep trouble. Where mutuals have run into difficulty, as the Dunfermline building society did in March 2009, it has been because they have moved away from the traditional mutual business model. So a growth in mutuals will not only reduce exposure to risky financial activities, but bring systemic advantages. It will foster a culture that moves away from the risky, reckless behaviours that we have seen precipitate the crisis, and so we can reduce the chances of that reoccurring.
Mr Peter Bone (Wellingborough) (Con)
The hon. Gentleman is making a powerful speech on an important issue. Does his argument go on to say that the large banks should be broken up into smaller ones, as in the example from the United States?
Mr Umunna
I do not wish to pre-empt the inquiry being carried out by the Treasury Committee. I have some sympathy for those views, but I would like to continue to hear the evidence that my Committee is taking on this matter and read some of the submissions to the Independent Commission on Banking before coming to a firm view.
The fourth argument that I make in favour of mutuals is that they have strong local links and roots in local communities. Mutuals are often regionally based and therefore often have a better understanding of those they seek to serve because they understand and are rooted in those communities. Finally, mutuals will undoubtedly help to promote competition. As I have mentioned, building societies do not have to pay dividends to shareholders, so they can use their funds either to pay higher savings rates or provide lower mortgage rates. It is no surprise that they regularly top the “best buy” tables.