Lobbying of Government Committee

Julia Lopez Excerpts

Wednesday 14th April 2021 Commons Chamber

[The Parliamentary Secretary, Cabinet Office (Julia Lopez)]

I thank all right hon. and hon. Members who have taken part in this afternoon’s debate for their very valuable contributions and for speaking with such passion on issues that affect us all in public life. The care with which we spend taxpayers’ money matters very deeply to public confidence in Government. The respect that we demonstrate for rules and regulations is rightly a benchmark for trust. The systems and structures of governance in this country must at all times serve, and be seen to serve, those whom we are elected to represent, and not be exploited for narrow, private interest. It is right that we in Parliament probe and scrutinise any concerns raised on such matters and, to be candid, it is in the Government’s interest, as much as anyone else’s, to be able to provide robust assurances. As my hon. Friend the Member for North East Derbyshire (Lee Rowley) said, if there is an issue, let us uncover it. It is for that reason that my hon. Friend the Minister for the Constitution and Devolution set out the existing framework for safeguarding and assuring the public interest. It should be restated that that existing framework, much of which has been brought in since 2010, has largely been very effective.

On the questions raised by the hon. Members for Argyll and Bute (Brendan O’Hara) and for Wansbeck (Ian Lavery) this afternoon about the interactions between Greensill and the Treasury, as the Chancellor set out in a letter to the hon. Member for Oxford East (Anneliese Dodds), the matter was referred by him to the relevant Treasury officials, and following proper scrutiny, Greensill’s requests were turned down. It was through transparency returns and declaration processes that meetings between Greensill and officials were highlighted. In other words, the system in that instance worked as it should, but it would be disingenuous to suggest that this existing framework has not been tested by the extreme circumstances of the pandemic and that the broader issues raised in recent days about Greensill have not posed questions that we are as keen as anyone to probe. Indeed, my hon. Friend the Member for Thurrock (Jackie Doyle-Price) highlighted that the scrutiny work has long ago begun.

Out of necessity and urgency, the Government have, over these past 12 months, interacted with thousands of individuals and organisations offering help. All claim to have had something to offer. Some do and some do not. Some have been referred by Conservative Members; others have been referred by Labour MPs, peers or those from other parties. Some are genuinely public-spirited; others only purport to be. Ministers and officials have had to take decisions that, at times, prioritise swift and decisive action over fulfilling the usual standards on timely and transparent contract publication, but we have been working extremely hard to rectify that latter shortcoming, about which I will say a bit more in a moment.

I also wish to assure you, Madam Deputy Speaker, that we have not been waiting around for the Opposition to table a motion on these important issues before making improvements to our existing propriety and transparency regime. We are currently conducting post-legislative scrutiny of part 1 of the lobbying Act, consulting a variety of stakeholders to get their views on the scope and effectiveness of the legislation. I welcome the contribution from the hon. Member for Weston-super-Mare (John Penrose) and his practical proposals.

[Bob Seely]

Does my hon. Friend understand that many of us want the Government to do the right thing, and are grateful to them for doing the right thing, but understand that the lobbying Act, both for domestic and foreign lobbying, needs to be much broader? We need to take in the law firms involved, the reputation managers and the PR companies. It is not just about a narrow definition of lobbying, but all this lobbying industry that we seem to have built up in this country.

[Julia Lopez]

I thank my hon. Friend for his question. It is important to understand that we are putting forward a package of things. Some of the changes that need to be made are not necessarily through the lobbying Act, and we are looking at some of the issues of foreign intervention that he has rightly highlighted today.

We are already working with the chairman of the Advisory Committee on Business Appointments, my noble Friend Lord Pickles, to improve the business appointments regime, which applies lobbying bans to former Ministers and civil servants. The committee has been actively seeking to increase the efficacy of the system by introducing a framework for the risk-based consideration of cases, greater transparency and better reporting of breaches of the rules. Members should note that some of the issues discussed in relation to Bill Crothers stem from the transparent publication of our correspondence with ACOBA on gov.uk.

On procurement—to reassure the hon. Member for Sheffield, Hallam (Olivia Blake)—we have published an ambitious Green Paper with legislation to be included in the Queen’s Speech, setting out how we will provide commercial teams with much greater choice in an emergency. It needs to be understood that, at the moment, the options are a direct award, which exposes us to the kinds of claims of cronyism that have been peddled today, or full fact procurement, which takes far too long to turn around in an urgent situation. In relation to this, last autumn, we commissioned an independent expert review into Cabinet Office procurement processes led by Nigel Boardman, probing particular contracts that were raised in the NAO’s report on this subject. The subsequent Boardman report was forensic in its analysis and very hard-hitting in its recommendations, and the Cabinet Office committed to taking forward all of them in full. Meanwhile, I set out with candour in a Westminster Hall debate the challenges that the Government had to navigate at the height of the pandemic and what went well and what, undoubtedly, could have been done better during the period in question. I recommend that debate to those hon. Members who have today raised concerns about the so-called VIP lane. It might make for a more compelling Labour press release to suggest that the story of procurement during the emergency has been one of Tory corruption, but I believe that it is vital that we understand what really happened so that we do not overlook what needs to change.

Far from being a secret referrals lane, officials dealing with the thousands of PPE leads coming in set up a separate mailbox to triage them. It allowed more credible leads to be sifted and it helped manage the correspondence that was coming in from Parliamentarians of all colours who themselves were being contacted by companies and individuals offering help. The Opposition like to suggest that those going through this mailbox were 10 times more likely to secure a contract. The most important thing to note, however, as the NAO does in its report, is that all PPE offers, no matter from where they came, went through the same eight-stage assurance checks. It should also be said that of the more than 400 offers handled by the high-priority inbox, only 47 were awarded contracts, which means that 90% were not.

In relation to the activities of Greensill, Mr Boardman has been commissioned by the Prime Minister once again to apply his scrupulous and dispassionate eye to the role of Greensill Capital. I am very glad to say that the letter from Lord Pickles regarding Bill Crothers will now also be considered. It is right that I do not seek to prejudge his findings. However, I want to address two assertions that have been made: that it will be too narrow in scope and therefore requires a broader Committee-led inquiry; and that Mr Boardman himself is a Government yes man. To those criticisms, I first say that it would be wrong to view this investigation in isolation. It is one work strand of several, which we hope, when pulled together, will make for a much more robust framework. Secondly, I have seen how effective Mr Boardman’s previous Cabinet Office review has been in spurring improvements and I have no doubt that any recommendations from his work on Greensill will not only be unsparing but lead to meaningful change should it be necessary.

It is worth reminding the House that, as soon as any of us are elected to this place, we become all too familiar with the trickiness of handling tactfully uninvited requests of a varying nature from associates, constituents and others. What matters is not necessarily that those requests have been made, but that we reach a decision on them, which is compatible with the principles of public life to which we all must adhere.

There have been claims today that current lobbying laws do not go far enough and should be extended, but I would guard against overly simplistic solutions that risk going too far in clamping down on avenues for interaction between Government and wider society. That point was made very powerfully by my hon. Friend the Member for Bolsover (Mark Fletcher) and others. This is particularly true when we reflect on the current emergency during which some of the most important contributions have come from those working outside Government. Indeed, one of my worries from this past year is that publicly spirited people who want to serve their country in an emergency will look at how the integrity of someone such as Kate Bingham was questioned and think twice before coming forward. What is important always, as I have said before, is that decision makers are able to test and interrogate the credibility of external inputs mindful of their own obligations.

Finally, in relation to the ministerial code, I hope that it will be of reassurance to Members that the appointment to the post of independent adviser on ministerial interests will be announced shortly.

Let me finish by returning to the Opposition motion, which will no doubt shortly be manipulated into a social media campaign that implies that Government Members are pro-cronyism and anti-transparency in imposing their convoluted solution to the issues raised today. There is no point in pushing for the creation of yet another body with a remit to scrutinise the rules on lobbying and, additionally, to look into the Greensill affair when we already have a number of—may I say?—very unforgiving Select Committees, the Boardman review and a whole series of efforts under way to improve our existing framework.

The Government are alive to the sincerely held concerns of part of the public, charities, non-governmental organisations and others about lobbying activities. They are looking precisely at the scope and effectiveness of existing legislation.

In the same vein, it is clearly wasteful for the vital scrutiny that is customarily carried out by PACAC and others to be undertaken by a second Committee. Indeed, my hon. Friend the Member for Hazel Grove (Mr Wragg) has already in this debate applied his sharp and ruthlessly inquiring mind to some of the most vital questions; I thought his contribution was superb. Lord Pickles will appear before my hon. Friend’s Committee tomorrow.

We should focus, as the Government are doing, on strengthening our existing framework to satisfy ourselves and others that the mechanisms in place are sufficiently robust with respect to the conduct of public servants and the stewardship of public resources, and that we uncompromisingly make those decisions in the national interest. Although the Government do not support the motion, today’s contributions have shown the strength of feeling across the House and I thank hon. Members for them.

Beyond the political froth, I do not think that we are in different places on this. We all believe in and want the same thing: transparent government and behaviour in accordance with the seven principles of public life. The Government will continue to engage with parliamentarians of all colours as we set about raising our standards, but we do not need another Committee to do that. That would risk undermining the process and reviews that are already in place and that we should allow to conclude, so I urge the House to reject the motion.

Question put.