Paid Directorships and Consultancies (MPs)

Glyn Davies Excerpts

Wednesday 17th July 2013 Commons Chamber

[Mr Nick Raynsford (Greenwich and Woolwich) (Lab)]

May I, appropriately, at the start of this contribution refer to my interests as listed in the register? I should also at the outset make it clear that I have had second jobs throughout the time that I have served as a Member of Parliament. Before I was elected as MP for Greenwich in 1992, I ran a small business offering housing consultancy services—so the Conservative Member, the hon. Member for Beverley and Holderness (Mr Stuart), who believes Opposition Members do not have business experience is not correct—and that reflected my own career in housing over the previous 20 years. I sold that business when I was elected to the House, but remained as a consultant to the organisation that bought the business until I became a Minister in 1997. From 1997 to 2005 I served as a Minister in the Department that is now known as the Department for Communities and Local Government—it would take up too much of my five minutes to list its various names when I was a Minister there. That was the hardest-working second job I had by a long way during my time here.

After I left Government I accepted invitations to undertake work—some paid, some without remuneration— from organisations operating in fields in which I had previous professional experience or relevant skills. All were referred to, and approved by, the Advisory Committee on Business Appointments, which considers applications from former Ministers proposing to take on outside interests. It is worth quoting the opening paragraph of the guidance issued by the Committee at the time:

“It is in the public interest that former Ministers with experience in government should be able to move into business or into other areas of public life.”

It went on to talk about the necessary safeguards to ensure propriety, but that statement of the public interest was very clear and the Leader of the House referred to it in his comments about the Committee on Standards in Public Life.

I have never allowed my outside interests, which are all properly declared, to interfere with, or inhibit, my parliamentary and constituency work. They certainly demanded a lot less time than my responsibilities as a Front-Bench spokesman for my party in Opposition and as a Minister between 1997 and 2005.

As I am standing down at the next election, my party’s proposals, as referred to in the motion and described by my hon. Friend the Member for Hemsworth (Jon Trickett), will not affect me personally, so I hope I can offer a reasonably impartial analysis of their likely impact. It is certainly right that we should be debating this issue as there is genuine public concern that MPs should act in the public interest, and should not abuse their position by undertaking inappropriate activity on behalf of lobbyists or organisations seeking improperly to secure an advantage. I stress the word “improperly” because it is also right that organisations, whether commercial or not, which want to influence Parliament should be able to speak freely with MPs and have relationships with supporters in this House. I myself, in the voluntary sector before I was elected in 1992, had frequent contacts with MPs and Ministers in order to pursue issues relating to the voluntary organisation I was involved with, which was promoting policies and practices to achieve better housing outcomes and more effective relief for the homeless.

[Glyn Davies (Montgomeryshire) (Con)]

I agree with every word the right hon. Gentleman says, and I congratulate him on his involvement in so many other activities which are a great help to his work in this Chamber. What advice would he give to somebody who owns a business that they cannot sell, however? I am a farmer, and the only way for me to remove myself from the business completely would be either to sell the farm completely or move out of it all together. What advice would he give people like me?

[Mr Raynsford]

The hon. Gentleman has raised a specific issue and I will refer later to one or two circumstances that seem to me to be not well covered by the terms set out in the motion. I hope he will bear with me until I get there.

When I was in the voluntary sector, one of the observations often made by my colleagues working in the housing world was that MPs, as generalists, had only a limited knowledge and understanding of the often complex and technical rules that applied to their clients—members of the public—and the frequent refrain I heard was “If only they could spend time working with us, then they would better understand the issue.” I therefore want to emphasise at the outset the importance of not acting in ways that might inhibit or restrict proper links and relationships between MPs and the wider world.

The motion states that, as part of a regulatory framework for MPs’ second jobs, following the next general election no MP should be permitted to hold “paid directorships or consultancies.” It is not clear to me what the logic of that is. What is the difference between a paid directorship or consultancy and a contract to write a book or an article, or a payment for practising as a lawyer or a doctor, or a fee for providing a piece of expert advice? Is it the payment that is the problem? If so, the motion is far too narrow as it would leave open all kinds of opportunities for MPs to receive payment for remunerated activities other than those described as directorships or consultancies. If the problem is not the payment but is instead the relationship implied by the directorship or consultancy, why should a paid directorship of an organisation with a remit that clearly involves public interest objectives, such as the construction of social and affordable housing, be banned whereas a remunerated relationship other than a directorship or consultancy with a profit-making organisation pursuing entirely private interests would appear to be acceptable?

One of the arguments advanced by those who wish to curtail MPs’ outside interests is that the MP’s job is a full-time one and their constituents deserve their full-time attention. I wholly agree.