Paid Directorships and Consultancies (MPs)

Graham Stuart Excerpts

Wednesday 17th July 2013 Commons Chamber

[The Leader of the House of Commons (Mr Andrew Lansley)]

On behalf of the Government, I ask the House to reject the motion.

I am interested in the contrast, which could not be more obvious, between this Opposition debate and the Bill we have just published. On the one hand, the Bill, the aim of which is to tackle a real issue, focuses on a specific potential problem concerning the transparency of third-party lobbying and third-party influences on the political system. By contrast, the hon. Member for Hemsworth (Jon Trickett) has presented a flawed motion to which the House should object regardless of whether Members agree with the principle he has tried to enunciate. It also turns out, however, to be nothing other than an effort to fling mud. He says he is not trying to impugn anybody’s motives, that nobody has done anything wrong, that everything is absolutely fine and that the House has behaved wonderfully, but then he says that the House should be constrained. It makes no sense.

It was interesting that the hon. Gentleman did not tell the House the reason for the motion. It is chaff. As the Leader of the Opposition knows, what matters is the perception that the Labour party is in the pay of the trade unions, which control its policies, candidacies and leadership, which it bought; so to divert attention from that, which goes to the heart of this issue, the Labour party throws up this chaff.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

Where they are aware of it, my constituents are concerned not about the perception, but about the reality: that the current Leader of the Opposition was not put there by a one man, one vote process and that Labour MPs were outvoted by the trade unions.

[Mr Lansley]

My hon. Friend is right. Not only Labour MPs, but the Labour party membership, were outvoted by the trade unions, and nothing that the Leader of the Opposition is saying will change that. As far as I am aware, one third of the electoral college for the leadership of the Labour party will continue to be trade-union controlled, so if they can get a sufficiently large majority, they can control the leadership of the Labour party.

The speech of the hon. Member for Hemsworth made no sense. I tried to listen to it and hear the argument, but if he wants to intervene and explain, even at this stage, I would be glad of that.

The motion is about regulating the ways that Members of the House work. As Leader of the House—that is one reason why I am responding to this debate—it is my view that proposals adopted by the House to regulate how Members behave should be the product of consultation across the House, and considered on the basis of proper scrutiny by relevant bodies, either in the House or externally. In this case, the Labour party has put forward a proposal without any such basis or advice to the House; procedurally it has gone about it the wrong way.

What is the real objective behind the motion? We should proceed in this House on the basis of trying to solve real problems. If the hon. Gentleman wants simply to talk about the issue, and the Labour party wants to get rid of the perception that those who are paid in this House are controlled by their paymasters, I have a simple proposition for the hon. Gentleman, which involves not taking money from the trade unions. That is not just a perception; the reality is that Labour’s interests are controlled by the trade unions. What is the hon. Gentleman trying to solve?

--- Later in debate ---

[Mr Graham Stuart]

Does my right hon. Friend agree that the Leader of the Opposition shows through today’s motion that he does not really understand how business works? He said a year or two ago, if I remember correctly, that he would like more entrepreneurs on the Labour Benches. When we look across the House, we have to ask how many people on those Benches started a business and got it going. There is a small number, but not many. It is quite clear from the motion that they do not understand. I have been a publisher since the age of 25 and I am a director of the company I set up then; I do not think that that harms my ability to represent my constituents in this House.

[Mr Lansley]

I am sure that my hon. Friend is right. I was rather disappointed because the implication of the motion seems to be that if someone is in business, they ought specifically to be excluded from being able to pursue those interests in this House. The hon. Member for Hemsworth was perfectly happy for people in all sorts of profession to continue—doctors, farmers, lawyers and, presumably, architects. There are all sorts of partnerships and a sole trader or partner would be able to continue to work in their interests, but a director of a company would apparently not be able to do so. I presume that he would exclude paid directors of companies that are limited by guarantee, which are often not-for-profit organisations. I fail to see why so many such organisations, which do good work, should be precluded from having any Member of Parliament participating in them.

The motion refers to the

“wider regulatory framework for second jobs”.

I failed to hear in the hon. Gentleman’s opening speech what he meant by that, so perhaps we will hear some more about it from the hon. Member for Barnsley East (Michael Dugher) when he concludes the debate.

There are practical issues that mean that the proposal is flawed. It refers to a director but not to an employee of a company, and it does not refer to partners—trustees have been mentioned. A range of circumstances have been ignored and left out, and the effort is to preclude directorships specifically. It refers to “consultancies”, although that is undefined, and apparently being an adviser would be okay. Or would every adviser be treated as a consultant? If we put the word “adviser” into the motion, instead of referring to consultants, it would no doubt extend widely among those on the Labour Benches, but apparently that is okay—[Interruption.] I will not go through every entry in the register, as I have already done that, but there are many circumstances in which Members are advisers to organisations. Apparently, I do not understand whether they are consultants or not.

As I have said, many professions, including many that are very time consuming—there are Members in the Chamber who consume quite a bit of time in writing books and articles and taking part in broadcast activities, but that seems to be perfectly okay—are ignored.

I cannot see from the motion who would police the new rules. Who would define who was a director for this purpose? Who would undertake the difficult task of deciding what was a consultancy? I cannot imagine the Parliamentary Commissioner for Standards would welcome the task of monitoring the provisions—we might hear whether she would. Do we need a new quango? Would Members rather the function be given to IPSA—[Interruption.] I think that was an ironic cheer from Opposition Members. IPSA considered the matter in its latest report and stated, perhaps with a moment’s regret, that it was not within its remit. It then made an ex cathedra statement about it anyway—

--- Later in debate ---

[Chris Williamson (Derby North) (Lab)]

May I start by saying to the Leader of the House that it seems to me that, in his opening remarks, he was being deliberately obtuse when he said that he did not understand the motion? For clarity, let me read it to him. It seems very clear indeed. It states that

“this House believes that, as part of a wider regulatory framework for second jobs, from the start of the next Parliament no hon. Members should be permitted to hold paid directorships or consultancies.”

It could not be clearer. I do not understand the claim from the Leader of the House that the motion is flawed.

[Mr Graham Stuart]

Can the hon. Gentleman tell us the definition of “consultancy” so that we can all refer to it?

[Chris Williamson]

Here we go again. I was going to go on to say that the Leader of the House accused my hon. Friend the Member for Hemsworth (Jon Trickett) of putting up chaff, and here we have yet more chaff from the hon. Member for Beverley and Holderness (Mr Stuart). There is a clear legal definition of a consultant and if he needs to check that out, I suggest he look up the dictionary definition. I am not going to waste the limited amount of time I have explaining it to him. He knows very well what a consultant is.

As my hon. Friend the Member for Hemsworth pointed out, perception is key in this agenda. We know that Parliament and MPs are held in very low esteem by many of the electorate and it is our duty to try to repair the trust of the electorate. I say that because I have spoken to many constituents—people have also written to me—who have said, for example, that the top-down reorganisation of the national health service was done only because many senior Conservative MPs stood to benefit financially from the 49% privatisation. Surely none of us, on either side of the Chamber, can allow that sort of perception to persist among the wider electorate. People need to have trust in their Members of Parliament. The motion would go a long way towards re-establishing that trust with the electorate at large.

The Leader of the House implied that agreeing the motion would impose some terrible, onerous obligation on Members, as though this idea had somehow dropped from space, from Mars or somewhere. However, if we look around the world, it becomes clear that the restrictions imposed on fellow parliamentarians in other countries are much more stringent than the restrictions in the UK. Our friends in America have imposed strong, stringent restrictions on the elected representatives who serve in that country. This motion contains a reasonable and measured proposition that would put us on a par with many of our international colleagues.