Members’ Paid Directorships and Consultancies

Debate between Graham P Jones and Tony Baldry

Wednesday 25th February 2015 Commons Chamber

[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.