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

Grahame Morris Excerpts

Monday 9th September 2013 Commons Chamber

[Jon Trickett]

Let me welcome you to the Chair, Ms Primarolo, for the start of this very important Committee stage. We all look forward to your wise advice as we proceed with detailed scrutiny of the first part of this absolutely dreadful Bill—a Bill which no single stakeholder of any importance has endorsed. Part 1 is in need of major change, and it is only as a result of the unfortunate abbreviation of the time available that we shall not be pressing every single one of our amendments to a vote. We will see how far we get. I do not intend to speak for too long, because there are so many important matters to be dealt with this afternoon. I apologise to the Committee for needing to slip out for a few minutes at some stage; I have a long-standing engagement.

I want to make three points. First, there is a need for a universal register of all lobbyists, to which amendment 2 and further consequential amendments refer. Secondly, we strongly object to the Government’s tabling of amendment 76, for reasons that I shall explain shortly. Thirdly, amendment 9 and amendment 48—tabled by my hon. Friend the Member for Nottingham North (Mr Allen), the Chair of the Political and Constitutional Reform Committee—widen the definition of “lobbyist” to ensure that all activities are properly registered.

The Government frequently claim to be the most transparent Government in history. That is a large claim. However, when it comes to making a choice between their commitment to transparency and the protection of vested interests, they always come down on the side of vested interests at the cost of transparency. That much is clear from the very first clause of the Bill, which needs to be amended.

[Grahame M. Morris (Easington) (Lab)]

Earlier this year, a private health care company, Hospital Corporation of America, was awarded a contract to treat NHS brain tumour patients. That happened after the same company had donated £17,000 to the Conservative party. Does my hon. Friend agree that such transactions are the ones that the public want to get to the bottom of, and that the Bill does nothing to achieve that?

[Jon Trickett]

My hon. Friend has made a powerful point about the way in which the Bill that became the Health and Social Care Act 2012 was prepared. As we know, the private health industry operated substantially behind the scenes in preparing the ground for that Bill. We also know that the legislation has led to a variety of actions that seem to have introduced an increasing amount of engagement in the NHS by the private sector, but that is not the point that I am addressing this afternoon.

The Government’s decision to limit the register to consultant lobbyists will lead to a narrowing of the register, because it excludes nearly all the lobbyists who are working professionally in our country today. Indeed, it would deepen the shadows that many people believe fall wherever the industry practises. Our amendments will seek to make the register universal and transparent and make what the lobbyists are doing transparent, by bringing the whole of the professional industry into daylight.

--- Later in debate ---

[Jon Trickett]

I will briefly make several points. First, there is a Government amendment before the Committee this afternoon that excludes companies from having to register, yet the hon. Gentleman points out that in law companies are individuals—they are legal persons. On corruption, I have not made the case that the lobbying industry is wholly corrupt. Not at all, but there is a huge gap between the population and the political and commercial elite in our country.

Too many people believe that decisions are made in secret, in the quiet rooms around here—smoke-filled rooms, perhaps. Nobody knows how those decisions are made or on whose behalf. It would be better if the general public understood how decisions were made, who was pressing for those decisions and in whose interests they were made. The Prime Minister himself said that sunlight is the best disinfectant. We should introduce legislation that would make sure that all lobbying activity was registered and properly accounted for. People would then know how decisions were made.

[Grahame M. Morris]

On the scope of the clause and the limitations on who is covered by it, Members of Parliament are lobbied, but will the public think it morally right that at least 58 Members of Parliament on the Government Benches have current or recent directorships or consultancy activities with private health care firms from which they benefit personally? That is not covered at all by the terms and scope of the Bill.

[Jon Trickett]

I thank my hon. Friend. My views on MPs’ second jobs are well known. They were debated in the House not too long ago.

The Leader of the House accepted that consultant lobbyists are a tiny minority. The Government have constructed a straw man argument in order to give the appearance that they are taking action on lobbying transparency, whereas in reality they are doing no such thing. Why is a register of consultant lobbyists proposed in the Bill? In my view it is because the Government merely want to be seen to be doing something while in fact doing very little.

We, the lobbying industry and the lobbying transparency campaigners, as well as the Select Committee, all want to act to achieve greater lobbying transparency for the good and the health of our democracy. We want to suggest something different to the Government. We want lobbying transparency because in a 21st century democracy it is only right that people can see how their Government are being influenced and by whom—which commercial forces lie behind particular decisions. That requires a register of all professional lobbyists. All lobbyists would then have to meet the same high standards, not only to create a level playing field within the industry, but to make sure that big money can no longer buy more influence than the rest of the population by using underhand techniques.

Instead of ensuring high standards in the lobbying industry, however, the Government would make the situation much worse. That is not simply my view. Mr George Kidd, acting chair of the UK Public Affairs Council, the body that runs the largest voluntary register of lobbyists, said that

“there is a risk that in doing something we do harm rather than good. We may end up with a less transparent system than we currently have if the definition is unchanged and”—

listen to this—

“we have a statutory register with very few names, if any, on it. People will be able to construct their business never to be on it.”

He suggests that we may have a register with no names on it—no lobbyists at all—and a register that is so full of loopholes that it is possible for anybody, with the smallest amount of ingenuity, to find a way to avoid getting on to the register. It would appear that the word “transparency” in the Bill’s title is a total misnomer.

If all that were not bad enough, Government amendment 76, in the name of the Leader of the House, rather remarkably succeeds in achieving what many think is impossible: making a bad Bill even worse. Despite comprehensive and uniquely united criticism and a consensus against the Bill, the Government have decided in their wisdom further to amend it, not in order to strengthen it, as lobbyists and experts have recommended, but rather further to weaken it. Rather than including companies and organisations that employ lobbyists on the register, as happens currently with the voluntary register, the Government have chosen to seek to limit the scope of the Bill further with this amendment by removing the need for a lobbyist’s employer to register. This is an important point, so I hope that the Committee is following the argument. For a register to bring meaningful transparency to the lobbying industry and to allow public scrutiny of lobbying, it must surely include, at the very least, all those who are doing lobbying. That surely must include the individual lobbyist’s employer. Yet that is precisely what the amendment seeks to avoid. Without the information on who is employing a particular lobbyist, it will be impossible to know which organisations or companies are lobbying at all, let alone what they are lobbying about or how often they are lobbying. The amendment is a retrograde step.

I have highlighted before how the Bill is weaker than the existing voluntary code, and the Government amendment is a case in point. The public or an organisation seeking the services of a lobbyist can currently search the voluntary registers in a way that discloses an organisation or employer’s client list, but the Government’s new proposals will remove that ability. The amendment removes the necessity for the lobbyists’ employers to be registered. We would know who the lobbyists were if they were consultant lobbyists, not if they were professional lobbyists, but we would not know who they were working for. We would not know who their colleagues were. Nor would we know which clients were being served by their colleagues. Nor would we know which other clients were employing the same company. We would not know the identity of the directors of the company. I would argue that knowing the names and identities of the directors of the company is quite important. Arguably, a company director may not themselves be a lobbyist, but it would be of interest to know who the directors of the company were which employed the lobbyists who were then on the register, and the amendment would exclude such a possibility.

Finally, we would not know who the shareholders of the company were, which leaves a massive opportunity for opacity. We would not know who the directors are or who owns the company, the name of the company or its registered address; we will be able to know simply that a lobbyist, Mr M. Smith, or whatever his name may be, is working out of Wimbledon. We will have no idea who his colleagues are, what company he works for, what its registered address is or who its shareholders and directors are. It really is a very bad and dangerous amendment. Rather than opening up the lobbying industry, the Government’s proposal would allow companies and organisations to hide behind the legislation.

[Grahame M. Morris]

The point about identifying who works for whom must be complicated by the fact that some consultancies are employed by a number of different companies. Could they disguise the fact, using zero-hours contracts, that they are not working exclusively for one employer?

[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.