Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill

Geoffrey Cox Excerpts

Monday 9th September 2013 Commons Chamber

[Jon Trickett]

Again, my hon. Friend makes an important point. The truth is that we will have no idea whom they are working for. We will know who their clients are, because that is required on the register, but we will have no idea who employs them. That seems to me to be a rather critical question to ask. For those people now on the voluntary register and operating to an ethical code, we know who their clients are and whom they work for, and the companies they work for also register. If the amendment is made, we will have no idea whom they are working for or who their other clients are. It seems to me that those on the Government Front Bench—I look to the Minister—should reflect on the amendment carefully before deciding whether to press it. It is very dangerous.

[Mr Geoffrey Cox (Torridge and West Devon) (Con)]

Why does the hon. Gentleman think that those dangers would arise as a result of the proposed amendment? The word “person” would apply equally to an individual as to a company, so

“A person must not carry on the business of consultant lobbying unless… the person… is entered in the register”

could mean either a company or a human being. Indeed, it is likely to mean both, because if the person is carrying on business on behalf of an employer that is a company, he should register not only himself, but the company. I do not understand his objection, unless he has seen something in the Bill that I have not.

[Jon Trickett]

Let us look at the clause concerned. Clause 1 currently states:

“A person must not carry on the business of consultant lobbying unless—

(a) the person, or

(b) if the person is an employee, the person’s employer,

is entered in the register of consultant lobbyists.”

Amendment 76 would exclude paragraph (b), so I deduce from that that the Government do not wish to have on the register the employer of the person who is being registered. If I was incorrect in my interpretation, no purpose whatsoever would be served by that deletion, or by its inclusion in the Bill in the first place.

[Jon Trickett]

rose—

[Mr Cox]

Will the hon. Gentleman give way?

[Jon Trickett]

The hon. and learned Gentleman will have a chance to make a contribution if he catches your eye, Ms Primarolo.

The point is this: we will have the same individual, Mr Smith from Wimbledon, and we will know who his clients are. Under the Bill, as drafted, we will know who his employer is. If amendment 76 is made, we will not know who his employer is, so there will be a gaping hole in our knowledge. It might not matter so much for us, but there are tens of millions of people outside in the country who want to know why the Government abandoned legislation on, say, plain tobacco packaging, or why they suddenly decided to proceed with the privatisation of our national health service.

Amendment 76 would have a dramatic impact on the rest of the Bill, rendering parts of it entirely redundant. Clause 4, for example, requires a lobbyist captured by the Bill to register the address of their main place of business or, if there is no such place, their home address. The individual lobbyist’s home address could be registered and we would not know their place of employment. Yet clause 4 has been drafted precisely to attempt to ascertain where that person would be working from. Again, the Government amendment imperils the very principle of transparency that the Bill claims to advocate.

[Mr Cox]

rose—

[Jon Trickett]

I shall not give way again on this point.

In addition, if only individuals are required to register, there will be considerable risk of a knock-on impact on the Government’s ability to raise the necessary funding for the register. It will be interesting to hear what the Minister will say about that.

--- Later in debate ---

[Mr Allen]

My hon. Friend makes an important point. We have only a day to discuss those issues, which will be covered in the next group of amendments. I hope that the Committee will have the time to debate them, but it is now a matter of doubt whether we will have the chance to do so.

Much comes back to the fact that the Government do not consult Parliament in an effective way. If the Government had consulted Parliament, many of the foibles and flaws in the Bill could have been dealt with. My Committee spent a year, on behalf of every Member, considering this matter. We then spent seven hectic days trying to produce a report for the House. It is as if we had not bothered; it is as if the parliamentary process were irrelevant. The Bill has been stuffed into the sausage machine in the hope that it will be voted through tonight and the next two nights.

In conclusion—I will speak to other amendments on behalf of my Select Committee and others—the Prime Minister said that lobbying would be the next big scandal to hit us. I am afraid that there has been another scandal: the prostitution of the House of Commons by the Government in the way that the Bill has been brought forward. This is not a partisan point, but a point about the legislature and the Executive. I hope that there is a communion between Members of this House, who are parliamentarians, to say that this is an unacceptable way of making law. It would be unacceptable if it produced good law; it is absolutely intolerable that it produces such terrible law.

On behalf of my Select Committee, let me say that the Bill should be put into a special Committee so that we can have something we can all be proud of and say to our constituents, “You wanted us to do something about lobbying. The Prime Minister said it was a big issue, the coalition agreement said it was important, those on the Labour Front Bench said it was important and here it is, we have done the job. It has taken us a few years and another six months, but here it is.” If it is not, I am afraid that this House will be dragged into disrepute because of the way the Bill has come before us.

[Mr Cox]

The hon. Gentleman makes a familiar lament. I remember making it myself many times in the previous Parliament, from the Opposition Benches on which he now sits, in relation to his own Government.

There are those of us on the Government Benches who have concerns about the drafting of the Bill. I hope those on the Front Bench will listen to them and understand that there is no need to dive into the trenches and resist, and protect every clause. I must say that in making criticisms of the Bill—specifically, on clause 1—the hon. Member for Hemsworth (Jon Trickett) deployed a fundamentally misconceived argument, one that a short acquaintance with its provisions can demonstrate. It is important, if we are to make criticisms of the Bill, and to expect the Government to move on them, that we ensure they are well targeted and accurate. If they are not, all that will come from the Opposition will, if I may say so, be a wall of noise. A wall of noise will not persuade the Government to change individual clauses.

Government amendment 76, which seeks to delete clause 1(1)(b), does not do the mischief the hon. Member for Hemsworth suggested. After the deletion, clause 1 will read:

“A person must not carry on the business of consultant lobbying unless the person is entered in the register of consultant lobbyists.”

The word “person” is apt to cover a multitude of types of persons: it can cover an individual, a partnership and a corporate entity. That is plain in clause 25, which is not to be amended, where the interpretations provision is set out:

“Where the Registrar is required or permitted to serve a notice on a person, this is to be effected—

(a) if the person is a registered company…by sending it by post to the company’s registered office;

(b) if the person is an individual, by delivering it in person;

(c) in any other case…to the last known main address”.

It is plain that the word “person” in clause 1 covers companies and is not intended to exclude companies, as the hon. Member for Hemsworth suggested.

[Chris Bryant]

The hon. and learned Gentleman is always very persuasive and clever, so I hope he will be able to help me. Which persons, using his definition, would be required to register in a situation where, for instance, News Corp wanted to buy out the whole of BSkyB? It would not be any member of News Corp. It would not be the company itself, anybody it employed full-time, its lawyers or any of its consultancy companies, unless they were predominantly engaged in lobbying. Am I right to say that not a single person in that process would have to register?

[Mr Cox]

Let me come on to that question, because I want to tackle it, if it is appropriate to do so, in connection with clause 1. First, let me make it clear that the Opposition Front Bench spokesman, the hon. Member for Hemsworth, asserted in this Committee that the intention of Government amendment 76 was to exclude companies and employers. That is simply not right: that is a misconception. If the Opposition pour a torrent of misconceptions on the drafting of the Bill, their criticisms will not be listened to. I am anxious, as is the hon. Member for Rhondda (Chris Bryant), that some criticisms should be listened to.

The word “person” in clause 1, as proposed, would mean that anybody carrying on the business of consultant lobbying, whether they represented a partnership or a company, would have to register if they came within the definition of consultant lobbying. The problem the hon. Gentleman refers to is not a problem in clause 1; it is a problem in clause 2, to which I expect we are about to come. The problem in clause 2 is the definition of consultant lobbying, but clause 1 would cover employers and people who carry on a business of consultant lobbying through their employees. A company cannot carry on business in any way unless it be through human beings—their employees. Therefore, if a human being goes to lobby and is lobbying on behalf of a consultant lobbyist, as defined, then that consultant lobbyist, his employer, will have to register. There is no doubt about that—that is a fact.

[Chris Bryant]

rose—

[Mr Cox]

I will not give way, because I want to be quite short if I can.

The hon. Gentleman asked me a question and he made a legitimate point. What concerns me, although it may not be a point on clause 1; it may be a point on clause 2—I look with diffidence at the occupant of the Chair—is that an in-house lobbyist would not necessarily be caught by this definition. My suggestion and submission to those on the Government Front Bench is that in larger firms—for example, in major City law firms—it is now not uncommon for there to be specialist departments that deal with lobbying activities. It strikes me, with the greatest of respect to those on the Government Front Bench, that there is a strong case, where such a specialist department exists, for that department to have to register as a lobbyist.

[Chris Bryant]

rose—

[Mr Cox]

No, I will not give way at this stage. The hon. Gentleman must forgive me. I want to be short, and there is much to cover.

It may be argued that that position will encapsulate too wide a net. What concerns me is that that will offer the opportunity for the construction or the engineering of the structure of a business, so that what is a specialist lobbying company can become part of a larger business and thus avoid the need to register. That would be a regrettable element of manipulation, and bring into disrepute the passage of the Bill.

I hope that those on my Front Bench, in considering this question, will answer it at leisure and not straight away on the hoof. It cannot be right that specialist departments—set up, it may be, in larger entities—that are often the product not so much of caprice, but of chance accident in the evolution of companies and their structures, should elude capture by this Bill.

[Chris Bryant]

Will the hon. and learned Gentleman give way?

[Mr Cox]

No.

[Chris Bryant]

It will take seconds.

[Mr Cox]

No.

I hope that those on the Front Bench will consider what I hope they will believe is a constructive point. Let me say again that it is quite wrong of the hon. Member for Hemsworth to launch a tirade against those on our Front Bench by saying that clause 1 is being mischievously amended by the deletion of subsection (1)(b).

--- Later in debate ---

[Mark Durkan]

rose—

[Mr Cox]

rose—

[Chris Bryant]

I will give way first to the hon. Member for Foyle (Mark Durkan), and then to the hon. and learned Member for Torridge and West Devon, although he was unkind enough not to give way to me a second time.

[Chris Bryant]

I think that that would be slightly to treat the legislation with contempt—so I am right up there with the hon. Gentleman.

[Mr Cox]

I do not know whether the hon. Gentleman has seen the Leader of the House’s amendments 93 and 94, which have just been drawn to my attention. On the face of it, those important amendments would go a considerable way towards dealing with the problems that my hon. Friend the Member for Chatham and Aylesford (Tracey Crouch) and I have outlined. They would widen the scope, and would mean that only incidental lobbying activities would escape. That could not be said of any specialist department, so it seems clear that the Government are going some way towards responding to some of the concerns that have been expressed. If the hon. Gentleman has not read the amendments, he should have a look at them and think about how far they go.

[Chris Bryant]

Of course I have read the amendments on pages 658 and 659, but I think they would have exactly the opposite effect from what the hon. and learned Gentleman says. The concept of a non-lobbying activity is as interesting as the concept of a lobbying activity. That is why I think this Bill provides so many grey areas, and that, in turn, is why I can see that it would recommend itself to lawyers—to lawyers, I repeat.