Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill
Debate between Lady Hermon and Gareth Thomas(11 years, 2 months ago)
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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.
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.
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.
Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill
Debate between Lady Hermon and Gareth Thomas(11 years, 3 months ago)
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Mr Thomas
I agree that pre-legislative scrutiny would have been extremely useful in respect of the Bill. New clause 7 seeks to create a more distinct scrutinising role for a Committee of the House in the event of any concern about a commercial lobbyist who takes up a senior position in government, and my hon. Friend’s Committee might be the appropriate one to establish whether there are any conflicts of interest and then put them to bed. I certainly share his aspiration, indeed determination, to ensure that more pre-legislative scrutiny takes place.
Amendment 31 seeks to probe the Government over the appointment of the registrar. It is crucial for whoever performs that role to enjoy the confidence of as wide a cross-section of political life as is possible, and it would not be good enough for the Government simply to pick one of their friends or cronies. We believe that allowing my hon. Friend’s Committee to be involved in the appointment would ensure that the most appropriate and most independent person was appointed, thus providing an important safeguard. I hope that the Minister will feel able to give a commitment in that regard.
Amendment 34, and the consequential amendments 36 and 37, underline our view that information about spending on lobbying should be available for scrutiny. It would be useful to hear from Ministers why they do not think that we should know how much is being spent on lobbying for a particular cause at any one time. In the United States, an approximate good-faith estimate of the amounts that are spent must be published every quarter. It is surely right, in the interests of transparency, for the public to be able to make a judgment about how much is being spent on trying to secure particular outcomes at particular times.
We know from today’s media reports—thanks to a leak of confidential documents from Philip Morris International—that huge sums are, on occasion, spent on lobbying in pursuit of particular ends. Philip Morris appears to have spent well over £1 million and employed some 160 people in an attempt to keep a proposed tobacco products directive from coming to fruition. Apparently, more than 230 Members of the European Parliament were met at least once. Freedom of information documents have revealed that Philip Morris was not alone among the tobacco giants in wanting to stop the proposed directive, but in just that one instance the picture is of a mammoth and very expensive lobbying operation.
I think that Philip Morris is perfectly entitled to lobby, but I also think that we are entitled to know for what it is lobbying and why, and how much it is spending in pursuit of its own interests. Our amendments seek to tease out the scale of the finance that is devoted to lobbying on particular issues at any one time. That would help to increase the transparency of the discussions that legislators have about particular proposals, and would improve our governance as a result.
Amendment 40 seeks to delete the self-incrimination defence that the Bill currently allows lobbyists to use in order to avoid answering questions asked by the registrar. It would be helpful to hear the Minister’s thinking. We believe that the inclusion of the self-incrimination defence restricts the registrar’s ability to get to the truth. Like so much of the Bill in its current form, clause 10 casts a shadow over the Government’s aspiration for more transparency in the lobbying industry, and I look forward to hearing the Minister’s explanation of why the defence is necessary.
Amendment 43 cuts to the heart of the concern of many outside this House as to whether the registrar can be self-financing. There is a widespread belief that far fewer lobbyists will have to register than the Government estimate. Their estimate differs greatly from those of outside experts. Witnesses appearing before the Select Committee suggested only 300 would need to be registered, and, as my hon. Friend the Member for Newcastle upon Tyne Central (Chi Onwurah) pointed out, the estimates sometimes sink to as low as 100. The Government’s impact assessment, however, suggests between 550 and 1,000 consultant lobbyists would need to register.
If the Government are wrong and all the expert witnesses are right about that, the registrar could be faced with a substantial cost gap, and that would have to be picked up by the public purse. The Government seem to be very relaxed about wasting money, as they have happily written off the disastrous IT projects for universal credit and borrowed billions of pounds to fund the welfare costs of those who cannot find jobs, but it would be useful to hear from the Minister how the apparent fairy tale of a budget for the registrar that the impact assessment suggests has been cobbled together. What is the thinking behind the budget? How have these estimates been arrived at?
Our amendment underlines the point that the public should not have to pay for the regulation of lobbying. If the Government are sensible and accept the definition of lobbying that the majority of those outside the House—and, I suspect, inside this House who have actually studied the Bill—believe is appropriate, there is no reason why the public purse will need to fund any of the costs of the registrar.
We believe that these amendments will improve the Bill, and I commend them to the Committee.
Lady Hermon
It is a lovely surprise to be called to speak so early in this debate. First, I must say that I am absolutely delighted that the Leader of the House is present, particularly as amendments 136 and 138 in my name and those of other hon. Members were prompted by his comments on Second Reading, when he said, with great enthusiasm:
“To ensure the independence of the system, the register will be administered and enforced by an independent registrar of consultant lobbyists”—[Official Report, 3 September 2013; Vol. 567, c. 176.]
His use of the phrases “independent registrar” and “independence of the system” fascinated me because I read the Bill very carefully from beginning to end and those phrases never appear in it. Instead, the Bill states that the registrar is to be appointed by the Minister—a term which, of course, includes the Secretary of State—but, it is stated in paragraph 3(6) of schedule 2, the poor old registrar can also be dismissed by the Minister
“if the Minister is satisfied that the Registrar is unable, unwilling or unfit to perform the functions of the office.”
So the Minister does not even have to have reasonable cause to dismiss the registrar. He does not have to have reasonable suspicion or reasonable belief. Under the Bill as currently drafted, the Minister appoints the registrar and can dismiss the registrar if he is “satisfied” of those things. That is far too weak.
We must remember that the powers of the registrar as set up under this Bill are quite extensive. More to the point, my constituents have lobbied me—written to me; “lobbied” is almost a bad word—on many topics, and it was not fair for the Leader of the House or for the Deputy Leader of the House to suggest on Second Reading that we were all alarmed because of trade union scaremongering. That is not the case. I have not received a single letter or e-mail from a trade union, but I have received them from charities, which want reassurance that the registrar will be independent of Government. The registrar will have the power to keep and publish the register. They must keep the register up to date, they have the power to monitor compliance with obligations, and they can issue information notices if they believe that consultant lobbyists have not registered.
There are significant penalties, including criminal conviction and civil penalties for non-compliance with the terms and conditions of part 1. It is essential for public confidence in the new register that, as the Leader of the House promised on Second Reading, the new system is independent of Government and the registrar enjoys independence. The amendments that I have tabled would require the Minister to allow the registrar to act independently. There must be an assurance in the Bill that the functions of the registrar will be exercised independently of any other person.
The Leader of the House suggested on Second Reading that the register would be funded by the lobbying industry via a subscription charge. Again, I urge the coalition Government to heed the lack of confidence engendered in the general public because of lobbying scandals. It is incumbent on all of us to do all that we can to restore that confidence. For the Leader of the House to suggest that the lobbying industry would pay for the register through a subscription is not helpful. My amendments would ensure that the independence of the registrar and of the register is guaranteed, and I hope that the Government will look at them sympathetically.