Independent Parliamentary Standards Authority

Hilary Benn Excerpts

Thursday 2nd December 2010 Commons Chamber

[Hilary Benn (Leeds Central) (Lab)]

I welcome the opportunity provided by the Backbench Business Committee to debate the operation of IPSA, courtesy of the effort shown by the hon. Member for Windsor (Adam Afriyie). I do not propose to rehearse how we got here, as other hon. Members have done so, except to say that parts of the previous system did not bear close examination, nor did they command public support when they were unveiled to public view. The hon. Member for North Thanet (Mr Gale) summed it up well when he said that things went badly wrong.

Things had to change, and the Parliamentary Standards Act 2009 was the means by which the system was changed. As the House has learned, transparency was the best way of dealing with the problems of the past and is the best way of doing things. Members know that all the expenditure that they incur will be seen and scrutinised by the public. When the public, our voters, see the cost of the phone calls, the office rent, the stationery, the train travel and the accommodation, which is published today by IPSA, they too will realise that this is about nothing more and nothing less than the tools that MPs need to do their job.

The first point that I want to make is that in debating changes to the system as a prelude to the review that IPSA is undertaking—changes that are definitely needed—we must preserve the principle of transparency, a point made by my right hon. Friend the Member for Sheffield, Brightside and Hillsborough (Mr Blunkett) and many others, and we must uphold the principle of independent oversight. I gently say to my hon. Friend the Member for Bassetlaw (John Mann) that nobody wants to overturn that, and nor should we.

[Mr Jenkin]

Will the right hon. Gentleman comment on the fact that IPSA has said it is not going to publish invoices and evidence of payment? Does he agree that it is slightly illogical to have a system based on transparency and evidence of payment if we do not then publish the evidence of payment, and that that recalls how we got into this mess in the first place?

[Hilary Benn]

I would make two points. First, an independent body is now looking at those receipts and making a judgment about whether they come within the purview of the rules, which is very different from what happened before. Secondly, there is a balance to be struck between the cost of publishing receipts—it would be very expensive—and total transparency. Since one of the themes of our debate has been the cost of IPSA as a whole, in offering a view, the House will, in the end, have to say to IPSA, “How do we wish to balance that?”

[Mr Bacon]

The right hon. Gentleman says there is a balance to be struck between cost and transparency, but in fact the reverse could be the case: total transparency through the right kind of card payment-based, web-based instant publishing system could be cheaper as well as more transparent.

--- Later in debate ---

[Hilary Benn]

I think there is a lot in what the hon. Gentleman says. This debate has produced many ideas and suggestions, and I hope IPSA will take them on board in deciding how the system might be changed.

We must also take into account that setting up IPSA was a very big task. We all acknowledge that there were bound to be teething problems, and hon. Members should recognise that a lot of hard work in a very short space of time has gone into establishing the organisation. I, for one, would simply want to say that in my experience all the IPSA staff I have met—I have visited the offices—and all the IPSA staff to whom I have spoken on the phone have been unfailingly helpful in trying to assist. The problem that brings us here today is clearly not the staff; it is the system itself—how it was designed and the ways in which it does not work.

If we ask Members, “Do you think IPSA is helping you to do your job,” which ought to be the real test, the clear answer we get—we have heard it today—is, “No, it is not.” It also seems that Members are not entirely sure that IPSA fully understands the work we do as Members of Parliament.

[Mr Adam Holloway (Gravesham) (Con)]

Members such as the saintly hon. Member for Bassetlaw (John Mann) have allowed the impression to be put about that expenses are, somehow, some sort of perk. In fact they are what we need in order to do our job. Before I entered the House, I worked for months, or years, with “Newsnight”, “World in Action”, “Panorama”, The Sunday Times and ITN, and what amazed me on arriving here was how many things that I needed to do my job had to be paid for from my own pocket, which was never the case when I worked in the media. I cannot think of any organisation that regularly expects one subset of its members to spend seven or eight hours at home every night on this issue. It is extraordinary.

[Hilary Benn]

The salaries of the staff who support us in our work are not by any reasonable definition an expense. In fairness to my hon. Friend the Member for Bassetlaw, I do not think he was making that argument; that is an interpretation that others have sought to put on what has been said.

A number of issues have been identified both in this afternoon’s debate and elsewhere. The first is the expense of the whole system because of its complexity, the multiple checking, and the transaction cost to IPSA and Members of Parliament in trying to make it work. The second is the sheer amount of time it takes, in part because compared with the old system a lot of the inputting of data has been outsourced to Members of Parliament and their staff. The time taken in collecting, checking, clarifying, going online, copying and posting and so forth means MPs and their staff are spending too much time doing accounts, rather than holding the Government of the day—of whatever party—to account, which is what we are elected to this House to do. We know that some MPs do not claim back legitimate expenses because they are afraid of getting it wrong or because of the time it will take. Some also say they get contradictory advice, in that a claim might be accepted one week but not the next.

The third problem was the assumption at the beginning—we must all acknowledge that this is changing—that all MPs had a bottomless private pocket out of which they could pay bills before claiming the money back. They do not. Some people are still owed money, others have been overdrawn, and we should recognise that the situation is particularly difficult for new Members, who have additional costs because they are establishing offices for the first time.

Every one of us dislikes intensely the fact that the money is forced to go through our personal bank accounts. It should not, and that is another reason why the system has to change. The point has been made forcefully that we know of no other workplace where one would tell an employee—although we are not employees—to pay the rent or the photocopier bill out of their own resources, and then pay them back. That is why direct payment has to be the way forward.

The fourth problem is that the budgets set do not reflect in all cases the commitments that MPs already have, the work loads in their offices or the higher cost of renting offices in some parts of the country, some cities and some towns. One practical and simple step to help MPs would be to allow virement between the staffing, office rent and office costs budgets, because that would allow Members to make that judgment. The overall budget level needs to be looked at, because adding the 10% pension contribution has created a real problem. The argument was, “We have taken some other expenses out,” but I do not know many Members who claim them.

MPs who have been worried that they cannot meet their commitments to staff—the number of hours and so on—have been told that they can approach the contingencies fund. I hope that IPSA will in all cases, therefore, meet those costs out of contingencies, because that problem needs to be addressed.

We heard from my hon. Friend the Member for Leicester West (Liz Kendall) about the difficulties of trying to obtain paternity leave, and I know of problems with maternity leave, too. I echo what my right hon. Friend the Member for Torfaen (Paul Murphy) said about consulting staff and the unions. We should recognise the enormous contribution that our staff make in supporting us and in doing a job on behalf of our constituents.

Fifthly, we have heard about the impact on family life. The fundamental truth is that MPs have to live and work in two separate places, and we should not make it difficult for MPs, their partners or their children to do so. On the problem that my hon. Friend the Member for Manchester Central (Tony Lloyd) raised, the current rules are utterly inconsistent, because they only partly acknowledge family life, paying for some things but not others.

Sixthly, there are the problems that arise because of the definition of London. We have already heard some of those cases, including the commuting distance at unsocial hours because of the unpredictability of House business. That needs looking at.

There is also the problem of what is known as extended travel, including by Opposition Front Benchers, which is an issue for us now, given the outcome of the election. The Opposition get Short money to help meet the costs of research and support, as the current majority governing party got over the previous 13 years. In addition, the Fees Office used to pay extended travel for Opposition Front Benchers and others, but when IPSA arrived it said, “No, we’re not going to pay that any more.” That prevents Opposition Front Benchers from doing their job, travelling the country to talk to people, listen and bring that experience and voice back to the House.

Another point, which affects all hon. Members, is that if we look at the IPSA rules on extended travel, we get the impression that it sees us only as constituency MPs. That is incredibly important, because we are also parliamentarians, and, if a matter in which we have an interest comes before the House, the ability to travel to gain knowledge and understanding—to listen, which is what we need to do as Members—is important. It is important that IPSA changes that interpretation. I have written to the chief executive to make that point.

I shall make three other points in conclusion. First, one difficulty we are grappling with is that each MP is different, a point that has been forcefully made. The way in which we work is different, and a system that does not reflect that is a system that is not working. Secondly, all that has an impact on people who have become MPs or might be thinking of doing so, a point that the hon. Member for Broxbourne (Mr Walker) made more eloquently than I can.

A battle was fought—the Osborne judgment has been referred to—and winning that £400 a year payment was a big step forward, so we should not go backwards now. We should remember that 19 years earlier Keir Hardie arrived in the House. As hon. Members will know, when he was spied and people looked at his clothes, they said, “Are you working on the roof?”, and he replied, “No, I’m working on the Floor.” We must not go back to the time when how much money we had determined whether we could undertake this job.

Thirdly, to be perfectly honest, I wish that we did not have to spend time debating what should be straightforward in any job, which is having the means to do the job. The fact that we are tells us that there is a problem that needs to be sorted out. That is why the review that IPSA is undertaking is an opportunity, just as this debate has been an opportunity for hon. Members to send a clear message.

I end by welcoming the fact that the chief executive, Andrew McDonald, has shown a willingness to engage in discussion about how things can change. I am confident that we can get change, but it needs to be the right change and it needs to happen soon.