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

Lady Hermon Excerpts

Tuesday 8th October 2013 Commons Chamber

[Mr Thomas]

The right hon. Gentleman and I do not agree on much, but we agree on that extremely valuable point.

[Lady Hermon (North Down) (Ind)]

I am grateful to the hon. Gentleman for taking a second intervention so quickly. Will he add to his list the peculiar situation we have in Northern Ireland, where there are five absentee Sinn Fein Members? MPs who do take their seats receive communications from those five constituencies asking us to make representations to various Ministers. I would hate to be labelled a consultant lobbyist simply for acting properly on behalf of constituents who are not represented in this House by a sitting MP.

[Mr Thomas]

The hon. Lady makes a very good point and underlines the problems there would have been had the Government not listened to the concerns of Members on both sides of the House and tabled their amendments.

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[Mr Lansley]

I am grateful to hon. Members for their contributions to this short debate, and particularly to my hon. Friends the Members for Harwich and North Essex (Mr Jenkin) and for Stone (Mr Cash) for tabling the new clause. I hope I will be able to reassure them that, through Government amendments 28 and 29, we will achieve the objectives that they and other Members seek. I hope that this debate on Report will begin with full agreement on how the Bill should be structured.

There are two issues with regard to this group of amendments: one is parliamentary privilege and the other is the position of Members of Parliament themselves. I reassure Members that the Government are committed to ensuring that the Bill’s provisions do not infringe on parliamentary privilege. The Government recognise that the privileges of Parliament are an integral and, indeed, as my hon. Friend the Member for Stone has said, necessary part of our constitutional arrangements. As the 18th century Clerk of the House, John Hatsell, commented, they are absolutely necessary for the due execution of Parliament’s powers.

Parliamentary privilege is an intrinsic and essential element of our democracy. It upholds Members’ right to freedom of speech and protects Parliament from external interference.

Article IX of the Bill of Rights 1689 reflects those historic and vital rights by providing that

“the freedom of speech and debates or proceedings in Parliament should not be impeached or questioned in any court or place out of Parliament”.

This Bill will in no way challenge the freedom of speech of parliamentarians.

Equally, we are committed to ensuring that the provisions do not intrude on Parliament’s exclusive cognisance and to upholding the principle famously set out by Sir William Blackstone in 1830, that

“the whole of the law and custom of Parliament has its origin in this one maxim, that whatever matter arises concerning either House of Parliament, ought to be examined, discussed and adjudged in that House and not elsewhere.”

As Members have made clear and helpfully acknowledged, following careful consideration we have concluded that the inclusion of a reference to parliamentary privilege in the Bill—either in the manner provided for by paragraph 1 of schedule 1 or in that outlined in new clause 1, if we were to proceed with it—could invite examination, discussion and judgment from sources external to Parliament. The retention or inclusion of such a provision could prompt unhelpful rulings by the courts regarding the nature or extent of privilege or its interaction with other statute. That point has been made by my hon. Friend the Member for Harwich and North Essex and by the report of the Standards and Privileges Committee.

I am grateful to the Committee and to its Chairman for his contribution to the debate. The Committee’s view and its helpful reference to the views of Lord Judge have helped us reach a conclusion. I hope the Committee will agree that Government amendment 28 meets its objective.

I am confident that Members will share our desire to protect Parliament’s right to regulate its own affairs and, as provided in the Bill of Rights, not to have its proceedings questioned. I am equally confident that the way in which that will be ensured in the context of this Bill will be to remove the reference to privilege outlined in paragraph 1 of schedule 1 and, as a consequence and for the same reason, to resist the inclusion of a similar provision as proposed by new clause 1. Government amendment 28 will therefore help to protect the privileges of Parliament from undue judicial interpretation in the context of this statute. I would be grateful if my hon. Friend the Member for Harwich and North Essex would withdraw the new clause in consequence of Government amendment 28.

[Lady Hermon]

I have listened carefully to the Leader of House’s explanation and am slightly concerned. Paragraph 22 of the explanatory notes states specifically that paragraphs 1 and 2 of schedule 1

“make provision to ensure that no provision of the bill could be infringing parliamentary privilege”.

Is the Leader of the House saying, therefore, that if paragraphs 1 and 2 are removed by the Government’s amendments there is no possibility of any other provision in the Bill infringing parliamentary privilege? Is that the assurance he is giving?

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[Mr Lansley]

I understand that completely. If I have not explained my point fully, let me explain it again. Under clause 2(1)(a), part of the definition of consultant lobbying is that it is carried out

“in the course of a business and in return for payment”.

When the Bill was introduced, in order to make it absolutely clear that Members of Parliament were not covered, we included a provision about the communications that are made by Members of Parliament in paragraph 2 of schedule 1.

On Second Reading, I explained that we believed that Members of Parliament were exempt by virtue of their public duty meaning that they were not engaged in the course of a business. It was clear that the inclusion of the additional provision in schedule 1 created an unnecessary and unhelpful confusion because, as has been said in this debate, it does not encapsulate all the activities of a Member of Parliament in carrying out their functions.

Members will recall that my hon. Friend the Member for Norwich North (Miss Smith) said in Committee that we would therefore adopt a different approach. I thank her for all her work on the Bill and welcome the Minister of State, Cabinet Office, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), who has responsibility for cities and constitution. I will not ask him to explain the Bill at this stage, but will allow him to take responsibility for the policy when he has had a chance to apply his considerable talents to it.

We discussed, welcomed and accepted what the Chair of the Political and Constitutional Reform Committee said and, in Committee, we accepted an amendment that he tabled. That amendment resulted in an improved exemption in schedule 1, which clarified the interaction between parliamentarians and the register. Members will recall that the definition of consultant lobbying states that it must be

“in the course of a business and in return for payment”.

Paragraph 6(2) of schedule 1 states that “payment” in those circumstances

“does not include any sums payable to a member of either House of Parliament”—

again, this refers to the point about Members of the House of Lords—under the Parliamentary Standards Act 2009, pursuant to a resolution, or out of money provided by Parliament or the Consolidated Fund.

Members of Parliament are therefore exempt under both limbs of the definition. They are not engaged in the course of a business and the payment that they receive is not regarded as payment for the purposes of the Bill. For that reason, we think that there is now a cast-iron, belt-and-braces exemption for Members of Parliament.

I might add that Members of the House of Lords are exempt in so far as they are acting in their public duties. If a Member of this House received payment for contacting a Minister or permanent secretary, it would be contrary to the Members’ code of conduct. The Chairman of the Standards Committee will correct me if I am wrong. The code in the House of Lords makes it clear that nobody can undertake paid advocacy in the House of Lords or advise somebody on the proceedings of the House, but it does not preclude somebody engaging in lobbying activity in the course of a business and in return for payment. My reading is that it is not inconceivable that some Members of the House of Lords would be required to register as consultant lobbyists as a consequence of their business activities. They would certainly not be required to register by virtue of their activities as Members of the House of Lords. I apologise for that detour.

As a consequence of accepting the amendment tabled by the Chair of the Political and Constitutional Reform Committee, we would have removed paragraph 2 of schedule 1 in Committee, but it was not reached. Amendment 29 will remove that redundant paragraph. I hope that the Opposition accept that amendment 78 is therefore unnecessary. I also ask my hon. Friend the Member for Harwich and North Essex to withdraw new clause 1.

[Lady Hermon]

I am most grateful to the Leader of the House for his very helpful explanation. Just to be sure, will he confirm that if I receive communications from constituents of the five absentee Sinn Fein Members—and, indeed, of any other Members of this House who take their seats—and I make representations or write to a Minister, the Director of Public Prosecutions or a senior Government official, that will not be caught by the Bill?

[Mr Lansley]

Yes, I can give the hon. Lady that assurance. She would not be affected by the Bill as she would be behaving as a Member of Parliament and not engaging in the course of a business. The payment she receives as a Member of Parliament is not regarded as payment for these purposes, and she can undertake all her normal activities. The same is true for the hon. Member for Harrow West (Mr Thomas) who sits on the Opposition Front Bench, because shadow Ministers and Members may raise any issues they wish. My right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) can represent not only her constituents but anybody she likes in her responsibilities as a Member of Parliament, and is in no way constrained from doing so.

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[Lady Hermon]

The wording of new clause 4, to which the hon. Gentleman is speaking, is curious. It states:

“Any code shall provide that any inappropriate financial relations between registered persons and Parliamentarians are strictly forbidden.”

That suggests that there are inappropriate financial relations and appropriate financial relations, which I am sure is not what he meant.

[Mr Thomas]

Indeed not, although I do not see the hon. Lady’s concern about the wording. She will be aware of several cases of allegations of inappropriate relationships, which we need to address, and a code of conduct could help us to do that.

[Lady Hermon]

To clarify, is it the Opposition’s position in the new clause that some financial relations between parliamentarians and registered consultant lobbyists are in fact appropriate? Surely, any financial relationship should be strictly forbidden. The word “inappropriate” should not be there at all.

[Mr Thomas]

We are seeking to establish the principle that there should be a code of conduct dealing with the relationship between Members of Parliament and the industry and covering a whole series of other questions. I hope that the hon. Lady will be persuaded of the need for such a code of conduct. I accept that consultation on the detail would be required, but if we could persuade her and the whole House to join us in the Lobby to support new clause 4, and if it were carried, I would hope she wanted to respond to such a consultation.

[Lady Hermon]

I am so sorry to be persistent, but I am even more confused than when I made my first intervention on this point. I am wildly enthusiastic about having a code and am willing to support the principle, but I cannot support the wording in the new clause. I would like the hon. Gentleman to explain what could possibly be an appropriate financial relationship between a registered lobbyist and a parliamentarian. No financial relationship is appropriate, so my problem is with the word “inappropriate”. Will he address that point, please?

[Mr Thomas]

The hon. Lady is right that it is very difficult to see how any direct financial relationship could be appropriate. I come back to a particular provision in the APPC code that might shed some light on this issue. The provision makes it clear that in relation to entertainment, for example, or to token mementos, no incentive should be given. It might be possible to suggest that such circumstances involve a financial incentive, but my point is that we need a code of conduct and we need clear details of what should be in it. I hope that that explanation will persuade the hon. Lady to support our proposal for a basic code of conduct, and that she will be able to play a role in being consulted on the details.

New clause 6 would place a duty on the registrar to report to Parliament annually on the operation of the register. The Information Commissioner has a similar duty under the Data Protection Act 1998. At the moment, the Bill implies little accountability to Parliament by the registrar. Given the registrar’s powers to impose civil penalties, to issue guidance and to make financial decisions, some accountability ought surely to be provided for in law. Let us remember when, all those long days ago, Government Members supported the signing of the coalition agreement. Page 21 of that document contained a commitment to strengthen the powers of Select Committees to scrutinise major public appointments. Surely new clause 6 follows the spirit of that provision. Indeed, even the Liberal Democrat manifesto promised to increase parliamentary scrutiny of Government appointments. New clause 6 would allow just that.

Even at this late stage—if not today and tomorrow, then in the other place—we hope that the Bill can be made more effective and, crucially, more wide ranging in regard to the number of lobbyists it covers. It remains our view that it should cover all lobbyists, and that it should provide for a clear code of conduct. The registrar would have an even more important role to play if these proposals were accepted, as we hope they will be. There is therefore even more need to ensure the registrar’s accountability to Parliament.

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One point that was common to all those who spoke to us was that they felt that the big chance had been missed. They believed that the lobbying problem had been accurately identified by the Prime Minister and perceptively identified by the Deputy Prime Minister in the run-up to and during the last general election. People were surprised, however, that none of those issues that raised such public concern—and the concern of two party leaders who became partners in the coalition—were addressed in the Bill that was produced to deal with lobbying. Rather, lobbyists were narrowly defined and those to be lobbied were narrowly defined. We thus felt through that period that a big chance had been missed to do what we all thought the lobbying Bill was about. The detail of all that was taken seriously, as people from a wide range of views said, “Let us try to help; let us try to define the problem a little more accurately”—by reflecting, for example, on what sort of information should be provided. That is clearly at the heart of amendment 100.

[Lady Hermon]

I am grateful to the hon. Gentleman for allowing me to intervene. I think it would be most helpful if he gave us some examples of the range of people who wanted to know more about what the subject matter of the lobbying was.

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[Mr Allen]

Again, my hon. Friend is seeking to take advantage of my good nature. Madam Deputy Speaker gives me the row when colleagues do that, so I am going to avoid the temptation that he puts in my way. I do not wish to offend again.

[Lady Hermon]

rose—

[Mr Allen]

I hope that the hon. Lady is not going to do something similar and get me into trouble.

[Lady Hermon]

I would never lead an hon. Member astray. The hon. Gentleman has raised a serious issue to do with the transparency of lobbying. Those are the words in the Bill: transparency of lobbying. Therefore, it is essential that the subject matter of the lobbyist group that meets the Minister or senior civil servant, talks to them, phones or whatever is noted. Clause 4(2)(g) says that the entry must include

“such other information as may be specified in regulations.”

Therefore, I would like the Leader of the House to confirm tonight that there is provision in the Bill for the subject matter of the lobbying to be required by regulation. If he were to give the House that assurance tonight, would that influence the hon. Gentleman’s decision on whether to press amendment 100 this evening?

[Mr Allen]

I do not want to incur the wrath of the Deputy Speaker, so I had better not say anything on clause 4(2)(g) as my amendment relates to clause 5. I do not intend to press my amendment to a Division, however. What I wish to do is engage the Leader of the House on an issue on which there is both concern and a lot of constructive activity. If he chooses to tap into it, there is a lot of constructive endeavour out there seeking to get this right for all the people who are concerned about lobbying. On that basis I am putting a number of items on the record in the hope that, either here or in the other place, we examine the following very difficult question: if we are going to register lobbying, do we register the subject too, and if so, how do we best do that for the sake both of convenience and of the transparency and accountability on which this whole Bill rests? I am sure that it is not beyond the wit of my Select Committee, and that it is absolutely not beyond the wit of Government, to come up with something, put it on the Order Paper in the second Chamber and find a way forward that allows everybody to make progress.

We are not talking about a detailed note and a minute and so forth—I do not imagine the hon. Lady is talking about that either. Alexandra Runswick, the director of Unlock Democracy, is one of the people who gave evidence to us. She said:

“I think that misrepresents the nature of the information we are looking for in the register. We are not expecting a transcript of the meeting, but what policy area it is that is being lobbied on. There are already individual MPs who publish their diaries and say, for example, ‘I met Unlock Democracy about the Lobbying Bill.’ That is the level of information that we are looking at—the policy that is being lobbied about, not the exact information that was shared with the person whom you are lobbying.”

That strikes me as eminently reasonable, but if it is not in those exact words something that the Government feel they can adopt, perhaps it is something they feel they can work with, so what we produce from these Houses is not a laughing stock to people out there who say, “There they go again; the old boys in the club have stitched it up again. Look at what they’ve done. This isn’t going to tackle lobbying. We’ve seen that it’s not tackling some of the key lobbying issues that got this subject into the public domain, and now look at it! They’re not even going to tell us what they want to talk about in two words.”

That does not do a service to the House or to this Bill. Lobbyists and those being lobbied are also very clear that that does not help them in what most of them do, which is a fair day’s honest work trying to do their job effectively. They understand that this looks as though there is something to hide, when in fact, as in most walks of life, 99.9% of them are just doing a fair day’s work.

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[Mr Lansley]

Let me make some progress, then I will give way again. There are quite a number of amendments in the group and I want to address each of them briefly.

New clause 6 requires that the registrar provide an annual report to the Political and Constitutional Reform Committee. The Chair of the Committee did not, I think, refer to new clause 6, and I am not aware that the Committee made such a proposal. If the Committee wants to call the registrar to give evidence to it on an annual basis, it is quite within its rights to do so, and the Government would be happy to support that, but we do not believe it is appropriate to set this down as a statutory requirement.

Opposition amendment 84 requires the Minister to consult the PCRC before dismissing the registrar—another interesting proposal, but I am not sure that the amendment adds anything of substance to the Bill. In essence, this is part of the same issue as the independence of the registrar, which I believe is already made clear in the wording of the Bill. The registrar will be independent of the lobbying industry and the Government and will have a clear remit to operate independently of both. The Minister will be able to dismiss the registrar only when he or she is satisfied that the registrar is unable, unwilling or unfit to perform the functions of his or her office, and any decision by the Minster could be challenged in the usual way via judicial review.

Opposition amendment 85 removes the requirement that lobbyists who have no business address must register their private residence. I can understand the concern to protect the privacy of individuals on the register, especially given the more onerous and invasive reporting requirements proposed elsewhere by the Opposition, but I am not sure that the removal of the requirement to register an address is a helpful one. A registered address is critical if the registrar is successfully to issue information notices, investigate compliance, and serve penalty notices. The great majority of consultant lobbyists will have one or more dedicated business addresses, so no issue will arise. The handful of individual consultant lobbyists who have no separate business address—I recognise that there is no requirement to register for those who do not meet the threshold of undertaking a business that is VAT-registered—can choose to obtain such an address and use that or they can submit their personal residential address. I therefore do not agree that this step is a wise one.

Given the Opposition’s concern about privacy, do they really want to require, as proposed by their amendment 86, that every organisation that lobbies must declare the names of all members of staff employed? Let us take an example. Given the way in which other Opposition amendments would apply, if an academic were engaged in contact with a Minister in pursuance of a subject on which they had undertaken research, the Opposition’s definition—not ours—would require that to be registered, whereas we would say that that was incidental and that the academic was not engaged mainly in lobbying activity. The Opposition would say that it should be included and, by extension, the names of everybody who works for the university should be entered in the register. That is unrealistic and makes no sense.

Amendments 87, 89 and 90 would amend the information requirements outlined in clause 4 to require that lobbyists also disclose financial information. Amendment 100, as I mentioned earlier, would alter the information requirements outlined in clause 4. We have been very clear that the objective of the register is the identification of the interests that are being represented by consultant lobbying firms. Lobbyists should therefore be required to disclose their clients. We are not persuaded that the burden of providing further information that would be imposed on the industry and the regulator is justified by the limited insight that it would provide. One can readily envisage the administrative nightmare that would result from trying to determine the costs of lobbying activity, especially where this had to be disaggregated from wider business activities. Requiring the disclosure of financial information relating to lobbying activity is not, in our view, proportionate to the problem identified.

Amendment 92 makes it explicit that the registrar may publish the register in written form. I can assure the Opposition that this is already implicit in 7(2), which states that the register may publish the register

“in such other form or forms as the Registrar thinks appropriate.”

The registrar can do whatever is necessary, including publishing the register in written form.

[Lady Hermon]

I am grateful to the Leader of the House for allowing me to intervene, even at this stage. Before he concludes his comments rejecting amendment 100, may I remind him of his opening remarks in response to this group of clauses? He said that the Government intend to shine the light of transparency—a great phrase—on lobbying, and we say, “Hear, hear” to that, but I cannot understand his justification for not requiring the subject matter of a meeting to be registered. He suggested that that is publication of the diaries of Ministers and permanent secretaries, but the Leader of the House will know better than any of us that the definition of permanent secretary includes the DPP, the chief medical officer and the chief executive of Her Majesty’s Revenue and Customs. Are they obliged to publish their diaries?

[Mr Lansley]

The point I was making is that the register that the Bill establishes is not where meetings will be listed. Meetings will be listed in the diary of the Minister or the permanent secretary. Consequently, in so far as it is appropriate for a meeting’s character to be disclosed, it will be disclosed in the ministerial diaries. To try to construct in the Bill the idea that the subject of meetings will be disclosed in the register would be to misunderstand what the register does. The register discloses the clients of consultant lobbyists, not the subjects on which they are lobbying.

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[Mr Lansley]

With respect, I do not think that the hon. Gentleman was listening to my previous answer. Consultant lobbyists disclose in the register who their clients are. The diaries of Ministers and permanent secretaries disclose who they meet. If the Secretary of State for Transport meets British Airways, it is transparent that British Airways is representing its interests. However, if the XYZ airline is represented by a consultant lobbyist, the register will disclose that the airline is the client of that lobbyist, and it will be transparent through the Minister’s diary that he or she has met that lobbyist and, as a consequence, it will be clear who they are meeting. The issue is not whether there is transparency but the mechanism by which transparency is delivered. It is delivered through the publication of Ministers’ diaries, and the gap in transparency that we have identified, and which the Bill remedies, is the gap in understanding, if Ministers or permanent secretaries meet consultant lobbyists, who their clients are.

[Lady Hermon]

Will the Leader of the House give way?

[Mr Lansley]

No, I have answered that question.

Amendment 93, tabled by the Opposition, would remove clause 10. I must confess that I am still bemused. We made it quite clear in Committee that the effect of doing so would be that in response to an information notice a person would not be required to provide any self-incriminating information, including in relation to any offence committed in relation to the register itself. The amendment would entirely undermine the enforcement regime relating to the register.

The Opposition’s amendments 94, 95 and 96 would make it an offence for consultant lobbyists to report misleading information. Although the intention behind the amendments is undoubtedly sound, I do not believe that they would have a substantive effect, as in order to be misleading the information must be either inaccurate or incomplete, and that is already covered by the clause.

The Government’s amendments in this group include amendment 31, which will allow the registrar to make direct payments to staff who have been seconded to support the office holder in addition to or instead of payments being made to the Minister or other person who seconded staff to the registrar. The registrar can also make payments to Ministers or other persons who supply accommodation or other services to the registrar under the general provision to make arrangements set out in paragraph 8(1)(b) of schedule 2.

Clause 4(3) outlines the client information that should be included in each register entry. Amendment 17 clarifies that if the registered consultant lobbyist has not engaged in lobbying or been paid to engage in lobbying during that quarter, its register entry for that quarter will contain a statement to that effect, as set out in clause 5(5), in lieu of any client information.

Amendments 18 and 19 will ensure the clarity and consistency of references to the periods for which consultant lobbyists are obliged to provide information. In the existing Bill, the three-month period prior to their initial registration about which consultant lobbyists must provide information in their register entry is called the “relevant pre-registration period”. This amendment changes the references to that phrase in clause 4 to the phrase “pre-registration quarter”, reflecting the references to the quarters for which client information is required after registration and ensuring consistency across the Bill. I hope that is clear.

Amendment 20 will ensure that the parameters of the pre-registration quarter are unambiguously defined as the three months ending on the date on which the person applies to be registered. The amendment changes the definition of the relevant pre-registration quarter period from the period of three months preceding the application date to the period of three months ending on the application date.

Amendments 21 and 22 will make it clear that register entries must include the names of the person or persons on whose behalf lobbying is undertaken, reflecting the reality that consultant lobbyists are likely to be engaged by more than one person during a quarter, and ensures consistency across the provisions of the Bill.

Amendment 23 clarifies the registrar's duty to update the register in accordance with the information returns submitted by consultant lobbyists by removing the unnecessary reference to “receiving the information return” which is covered in the following sub-paragraph.

Amendment 24 makes clear the separation of what the registrar is required to do, and what it may do. The registrar must publish the register in accordance with requirements set out in section 6. The registrar may also publish entries in respect of persons who were but are no longer entered in the register, but this is not a subset of its requirements under section 6.

Amendment 25 makes it clear that it is an offence for a “registered” person to carry on the business of consultant lobbying if they have submitted incomplete information to the registrar. This puts beyond any shadow of a doubt the class of person that is caught by this provision.

Amendment 26 will clarify that a person guilty of an offence relating to the register is liable to a fine, whether they are summarily convicted or are convicted on indictment. If convicted in a Crown court, the fine will be unlimited. If convicted in a magistrates court in Scotland or Northern Ireland, the fine will not exceed the statutory maximum. If convicted in a magistrates court in England or Wales before the coming into force of section 85 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, the fine will not exceed the statutory maximum; if convicted after the coming into force of that Act, which removes the statutory maximum in England and Wales, the fine will be unlimited.

Amendment 27 further clarifies that an appeal against an information notice or the notice or imposition of a penalty can be heard either by the first tier tribunal or, if so determined by or under the tribunal procedure rules, the upper tribunal.

When the time comes, I would welcome the opportunity to move the Government amendments standing in my name.