Registration of Members’ Financial Interests

David Heath Excerpts

Monday 7th February 2011 Commons Chamber

[The Parliamentary Secretary, Office of the Leader of the House of Commons (Mr David Heath)]

I congratulate the right hon. Member for Rother Valley (Mr Barron) on securing this debate about two modest but important improvements to the rules on the registration of Members’ financial interests and on the registration of all-party groups. I also congratulate my right hon. Friend the Leader of the House, as the new rules relating to all-party groups were produced under his chairmanship of the Standards and Privileges Committee back in July 2009.

The Committee’s proposal to reintroduce a sensible de minimis threshold for the registration of income from employment will remedy a problem that arose with the rule changes that the House agreed to on 30 April 2009. Under those new rules, Members are required to register every single payment they receive for remunerated employment of any kind, however small its value. The problem is that, for the House’s purposes, “remunerated employment” means any benefit of any kind which a Member might receive in exchange for providing a service.

The test is not whether there is a formal employment relationship in law, or whether there is some kind of contractual obligation on either side, but whether the Member would have received the benefit if he or she had not provided some kind of service. This includes any small gift to a Member who addresses a school assembly, opens a village fete or makes, as the hon. Member for Mid Sussex (Nicholas Soames) said, a speech at a constituency function. I am very sad to hear that he has never received any sort of thank you—not even a meal, from the sound of it. I find it extraordinary that he should go so unrewarded for his labours, but nevertheless any gift—

[The Vice-Chamberlain of Her Majesty's Household (Mr Mark Francois)]

A gift would be cheaper!

[Mr Heath]

The right hon. Gentleman says from a sedentary position that “a gift would be cheaper” than providing a meal. I cannot believe that in the case of the hon. Member for Mid Sussex.

Anyway, any small gift received under those circumstances must be registered, and that has led to a large number of registrations of things that most of us would regard as gifts—tokens of thanks for some small service. For example, my hon. Friend the Member for East Dunbartonshire (Jo Swinson) has been commendably thorough in her registrations, which include a Scottish Bible Society cloth bag worth £2.95, some branded pens and pencils from a local recycling company worth £5 and a Girlguiding centenary pencil to the value of 35p. No one will honestly feel that her judgment has been clouded by the generosity of those gifts, but nevertheless she has complied with the strict requirements that the House places on us all.

My examples would not be complete if I did not mention that my right hon. Friend the Leader of the House has registered a gift of a pair of hand-knitted, yellow socks, which I am very sad to see he is not wearing today. He was given them when he opened a wool shop in his constituency, and I understand that the owners even went to the trouble of contacting his office to establish his shoe size.

[Stephen Pound (Ealing North) (Lab)]

I am quite awed by the thoroughness of many right hon. and hon. Members, but will the hon. Gentleman help me? I do not drink wine—I tried it once and did not much care for it—but when I addressed The Spectator dinner just before Christmas the organisers sent me half a dozen bottles of wine. I have not the faintest idea how much they are worth, so how does one find the price if not of a Scottish Bible Society bio-recyclable-degradable bag, then of things like a bottle of wine? Can the hon. Gentleman give some advice or assistance to those of us who are innocents in the area?

[Mr Heath]

The rather straightforward and dull response to the hon. Gentleman is, consult the registrar if in doubt. The registrar has an omniscience that transcends any normal Member, in that they know the value of all things. They will I am sure be able to find out the value of that wine gift, which I suspect, being from The Spectator, is a rather fine half case of wine. I am sure he fully deserved to be paid in such kind.

[Nicholas Soames]

The hon. Gentleman is himself beginning to stray—I am sure without realising it—into an area where common sense has completely departed. Surely it is important that common sense is exercised in all such matters, but it is absolutely impossible to codify the situation without it looking completely ridiculous.

[Mr Heath]

It is because there is a danger of the situation looking completely ridiculous that the right hon. Member for Rother Valley and his Committee have come up with the proposed changes. There clearly is a gradation. If the hon. Member for Ealing North (Stephen Pound) were, in response to his speaking at an event for The Spectator, given several cases of Chateau d’quem, it might well be considered that that would have an effect on his judgment, whether he consumed them or not—but a half bottle of Newcastle Brown Ale might not be considered to have the same effect.

There is a need for common sense. That is precisely why the right hon. Gentleman has come forward with the proposal for a sensible de minimis requirement worth about the £65 mark. Most people can judge whether what they have received is likely to be in that region. Judging from my experience, I am very rarely given a token that comes to anything like that value. I think that if I were given something of more than that value, it would suggest that I was involved in paid employment of some kind—doing it for some remuneration—and that it should be declared. One must use a level of common sense.

I do not want this debate to become merely an insight into the life of a constituency MP. The purpose of the register is to provide information about any material benefit that a Member receives and which might reasonably be thought by others to influence his or her conduct in the House. The trivial nature of these registrations and the effort and expense involved in registering them does nothing, I would suggest, to contribute to the purpose of the register. I welcome the Committee’s proposal to introduce a sensible de minimis threshold of 0.1% of a Member’s salary, which currently works out at about £65. That is a sensible compromise between ensuring clarity and accountability while not over-encumbering the register with things that are frankly of little or no concern to any reasonable member of the public.

Turning to the rules on all-party groups, this motion implements recommendations made by the Committee in July 2009. I will not repeat the details of the rule changes, which the right hon. Member for Rother Valley has already outlined to the House. The Government welcome these proposed changes. The House will be aware of the valuable work that is done by all-party groups on a vast range of issues—for example, the armed forces, the BBC, beer and cider, clean water, underground space and shipbuilding. There can scarcely be a country in the world, nor—as the right hon. Member for Saffron Walden (Sir Alan Haselhurst) told a debate in Westminster Hall last week—a condition of the human body that is not covered by an all-party group. As the House will be aware, some groups are campaigning bodies, some are concerned with building relationships with other countries, and some are essentially social groups. The examples that I have here suggest that the parliamentary choir and the rugby club might fall into the latter group, although I have my doubts as to whether they do not also, to an extent, have a campaigning purpose.

I would not wish for one moment to frustrate the work of these groups or to place unnecessary obstacles in their way. However, it is important for the House to have robust registration requirements in place in order to protect its reputation, the reputations of hon. Members, and those of the groups themselves.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

Although the recommendations are entirely worthy and should be supported, the one issue that remains—the right hon. Member for Rother Valley (Mr Barron) may be able to reflect on it when he winds up—is that groups often appear to be overlapping or duplicating, and we are always spawning more groups than we can manage properly to attend or service. Might it be possible, informally if not formally, for the registrar to ensure, when somebody seeks to register a group, that the activity is not already covered somewhere else, so that we do not end up duplicating activities?

[Mr Heath]

I am grateful to my right hon. Friend for that comment. He is absolutely right to say that there is a degree of overlap and proliferation among all-party groups. It would certainly be helpful if the registrar were able to give guidance on where there is any likely overlap. I would not be happy for the registrar to be in a position to veto the formation of a new all-party group that might have a different view or complexion as regards a particular matter, but knowing that somebody already deals with a specific subject might be helpful at an early stage in a group’s formation in order to prevent duplication.

[Mr Denis MacShane (Rotherham) (Lab)]

I declare an interest in that I am chairman of the all-party group on Georgia, having been asked to take it over from my good friend Bruce George, the former right hon. Member for Walsall. Apart from that, I am not really active in any of these groups. Several colleagues are, however, and they have to overlap; otherwise, the group dies because if it does not have its officers it ceases to exist. Yet they are pilloried in the press as junketeers and all the rest of it. Is there any mechanism that allows them to send a statement to these reptiles that in fact an all-party group for no-man’s land somewhere can be of importance—that these groups can help our ambassadors, chambers of commerce and investment? How do we push back this endless sneering that any involvement with any country outside Britain is something that no right hon. or hon. Member should take part in?

[Mr Heath]

I am grateful to the right hon. Gentleman for making that point. All-party groups that deal with overseas countries are often of huge value in increasing understanding and maintaining contacts with parliamentarians in those countries and, indeed, their civil societies. He mentioned that Members are often members of several different groups. That, to me, is not duplication. It is not an obstacle; it is simply showing a breadth of interest. My right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes) was referring to the situation where more than one all-party group has an overlapping interest, which is not quite the same thing.

All-party groups, particularly some of the overseas groups, are of value. But—and there is a but—there is a need for transparency in the way that they operate and the degree to which they may or may not provide benefit to Members. First, many, but by no means all, groups provide a forum for commercial interests and campaign groups to lobby hon. Members. There is absolutely nothing wrong with that in a free society, and lobbying is one of the routes by which hon. Members can come to a better understanding of some of the policy issues that confront us in this House. However, the public rightly expect to know who is lobbying whom, and on whose behalf and with what outcome. That is the crucial aspect. That is why the Government are working towards increasing transparency and openness in the activity of lobbyists by introducing a statutory register. These proposals also contribute to that objective.

Secondly, as the right hon. Member for Rotherham (Mr MacShane) said, Members receive hospitality, including in some cases overseas travel, through some of the groups. Of course, Members are still under a duty to register any registrable interest personally, but there is a legitimate public interest in the publication of full details about the groups under whose auspices such benefits may be received.

Finally, although all-party groups are independent of the House, they carry something of its brand. They can use the word “parliamentary” in their titles, and they have access to the facilities of the House. I am sure that in the public mind, the distinction between an all-party group and a Committee of this House is unclear, at best. The House therefore has a legitimate interest in ensuring that the groups observe the highest standards of transparency.

I should like finally to touch on an issue of drafting. The motion refers to Members who are from the same political party as the Government and those who are not from the Government’s party—singular. I have been advised by the Clerks that this is already being interpreted in motions relating to all-party groups, as it is in other resolutions of the House, as meaning all those parties making up the Government in the situation of a coalition. This is the advice that has been given to Members since the start of the Parliament by those operating the system, and it is working without any problem to date. While it would have been possible to amend the motion so that it reflected more accurately the current position of the coalition Government, it would have put it at odds with other resolutions in use around the House. For that reason, the motion is not being amended and is being put to the House in a form consistent with other resolutions of the House.

On behalf of the Government, I thank the right hon. Member for Rother Valley and other members of the Standards and Privileges Committee for their work. I am pleased to support the motions and commend them to the House.