Members’ Paid Directorships and Consultancies

Graham P Jones Excerpts

Wednesday 25th February 2015 Commons Chamber

[Paul Flynn (Newport West) (Lab)]

The Tories just do not get it. After the great screaming nightmare of the expenses scandal, when our reputation in this country was ruined, sometimes unjustly, we have to try to win it back. I have suggested in books, including one in 1997, that the best way to win the respect of the country is to accept that £67,000 is a full-time wage for which we have to do a full-time job. I have just looked up one Member who spoke earlier and found that he is earning £200,000. He has not said so. The last speaker did not say how much he is earning. We want transparency in this debate.

[Graham Jones (Hyndburn) (Lab)]

Would it not be reasonable to suggest that if somebody wants to do a part-time job, or half a job, they should give half their salary back?

--- Later in debate ---

[Sir Tony Baldry (Banbury) (Con)]

I am grateful to you, Mr Speaker, for calling me to speak in what, according to the House of Commons Library, will be my 650th contribution to proceedings in this Parliament. That puts me well in the top per cent. of all Members of Parliament, including Ministers, for contributions. I refer to my entry in the Register of Members’ Financial Interests, which is to be found on page 11. I am a practising barrister, the director of two public companies and three private companies, and a partner in a film partnership.

The resolution tabled by the Leader of the Opposition and others does not seek to ban Members of Parliament from pursuing outside interests as such: the motion is simply to ban certain types of outside interest. May I suggest that there is no logic, either practical or in terms of public policy, in what the Opposition suggest? The motion seeks solely to ban Members of Parliament from being paid company directors or consultants. I am at somewhat of a loss to understand why the Opposition think it appropriate to ban a Member of Parliament from being a director of a limited company, but if that is what they want, why would they consider it appropriate for a Member of Parliament to be a partner in a limited liability partnership? Why should I be banned from being a company director, but allowed to continue to be a partner?

Under the terms of the motion, it would be acceptable for a Member of Parliament to have an outside interest as a farmer, providing that interest was expressed by way of being a partner in a farm partnership, but the same Member of Parliament would be unable to pursue effectively the same activity if, instead of being a partner in a farm partnership, he were a director in a limited liability company undertaking exactly the same commercial activity.

Under the terms of this motion, it would be possible for Members of Parliament to have any second interests if they were self-employed interests. It would be possible for Members of Parliament to continue to be authors, journalists, television commentators, and stockbrokers, providing the stockbroking was done by way of a partnership. The provision in the motion simply to seek to ban Members of Parliament from being company directors is, I suggest, somewhat capricious, and owes little, if anything, to logic. I am afraid it simply reflects the desire of the Leader of the Opposition to jump on any passing bandwagon.

There is a wholly credible, intellectual case for saying that Members of Parliament can hold no outside interests whatever, and there is a wholly credible, intellectual case for saying that Members of Parliament can hold outside interests, subject to rules on transparency and accountability, but what holds no intellectual credibility is to seek to have a policy which bans certain types of outside interests for Members of Parliament and allows others. Moreover, with respect, it is no good people, including many editors and journalists, complaining that the House of Commons is, from their perspective, increasingly occupied by career politicians who have done nothing else and then, almost in the next breath, advocating the removal from the House of Commons those of us who do bring other experience to this House. As the House will recall, the last time that the Committee on Standards in Public Life considered this matter, it concluded that it was beneficial to Parliament for Members of Parliament to be able to have outside interests.

As the register shows, I am a practising barrister, arbitrator and mediator, and I am also a director of a number of companies, public and private. Under the provisions of this motion, if I were standing at the next general election, it would be permissible for me to continue to practise at the Bar, and to practise as a mediator and arbitrator. If the Opposition consider it acceptable for me as a Member of Parliament to continue to be able to practise as a barrister, mediator or arbitrator, their argument cannot possibly be against having outside interests as such. Why would they consider it acceptable for me to continue to practise as a barrister, but not for me to be a director of public companies? It cannot be a regulatory issue. As a barrister, I am of course, in addition to the general law of the land, subject to regulation by the Bar Council and by the Bar Standards Board, but as a company director I am also bound by the law of the land and subject to supervision by several regulatory bodies—the stock exchange, the UK Listing Authority, the Takeover Panel, and numerous others. This motion is simply grandstanding.

[Graham Jones]

The House would appreciate it if the right hon. Gentleman would explain how much he gets from outside jobs, and how much time he spends on them away from Parliament. It would illuminate the debate for the House.

--- Later in debate ---

[Pete Wishart]

My hon. Friend makes a very good point. The right hon. Member for Blackburn (Mr Straw) made that very same observation about an almost identical sting prior to the last election, when it was then Labour Cabinet members who were caught up in a rotten affair.

The public observe this House with something approaching bemused bewilderment, concluding that the Westminster Parliament exists as little more than a self-serving institution for its overpaid Members. This Parliament has never been held in such contempt. Never has there been such a profound alienation between those who are governed and those who occupy the corridors of power. There is a massive disconnect between this House and the people of Britain. All that has happened in the past week makes that disconnect even wider. People will observe the comments from Conservative Members with something approaching disbelief. We see that reflected in how the public respond to this House—of course we do. The two major establishment parties can barely get above 60% in the polls. The public are not prepared to accept this anymore.

[Graham Jones]

Perhaps the hon. Gentleman could tell the House how many Scottish National party MSPs who are standing in the general election intend to stand down as MSPs, or will they be dual-hatted?

[Pete Wishart]

I know one, and yes he will.

This House is able to secure only 60% of popular support. That suggests to me that the people of these islands are looking for something different. They are sick and tired of the antics of this particular House. That is reflected in how they are responding to the way the Westminster establishment parties do their business. They are sick and tired of the self-justification: the special pleading; the bleating; the idea that somehow this House is enriched because Conservative Members can make some extra money; that this House is enriched because they bring outside experience to it; and that we cannot live on £67,000 a year. Tell that to our constituents! That is treble the national average wage. Our constituents are currently suffering austerity and a diminution of their annual income. They are experiencing real poverty and real difficulty, yet this House tells them that right hon. and hon. Members cannot get by on £67,000 a year.

I believe that being a Member of Parliament is a full-time job. In fact, we have got two jobs: we have our responsibilities in this House, and then we have our obligations to our constituents. Becoming a constituency Member of Parliament has changed dramatically in the 14 years that I have been here. It has become much more technical and much more complicated, with a greater amount of different tasks and skills needing to be acquired to serve members of the public efficiently and effectively. The suggestion that this can be combined with a second job with outside earnings is something I believe our constituents would find very difficult to accept.