Paid Directorships and Consultancies (MPs)

Lindsay Hoyle Excerpts

Wednesday 17th July 2013 Commons Chamber

[Jon Trickett]

The House needs to adapt its culture—

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. The hon. Gentleman has made it clear that he is not going to take interventions at the moment. [Hon. Members: “Shame.”] No, it is up to the hon. Gentleman. I will decide whether it is a shame or not. He said that he will give way shortly. What we also do not need is a Whip on the Opposition Front Bench trying to antagonise Government Members.

[Jon Trickett]

Thank you, Mr Deputy Speaker. I will give way in a moment or two.

Apart from the pressure on our time, there is another issue: the deteriorating reputation of politics in the mind of the public. We all know, for whatever reason, that the public perception of our role as law-makers and public representatives has sunk in recent times to an all-time low, and we need to address that. No single reform on its own can restore the trust that we need to rebuild, but better regulation of second jobs would clearly help. Here is one reason why. [Interruption.] I will explain why if the Leader of the House can be patient for just one second. He has to hear the argument before he can rebut it. Here is a reason why that can help. The issue relates to the problem of perception—I use that word carefully—of potential conflict of interest. Our primary loyalty as right hon. and hon. Members is to promote the common good for our country and our constituents, rather than our personal, private interests.

I am not suggesting for one moment that any right hon. or hon. Member is allowing the pursuit of private interest to interfere with their duty to the wider public interest, but I am suggesting that there is a widespread perception that that is the case. In politics, as we know, perception is just as important as reality.

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[Jon Trickett]

Let me say first that I note that the hon. Lady did not refer to the primary point, which is whether Government Members support reform. As regards the question of whether Ministers are somehow operating a private interest, that is a preposterous argument. Ministers work for the Crown on behalf of the public, because we live in a democratic society. For anybody to suggest that Ministers or a Prime Minister are somehow working for their private interests is a preposterous argument. I hope that when she reflects, she understands that that is the case.

If we stop to reflect for an instant, it is easy to understand how the perception I was describing might develop. The House will know that anyone who becomes a director of a company board, or consultant to a company, has a fiduciary duty—a legally defined concept—to that company. [Interruption.]

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. We have already had the Opposition Whips intervening. I do not need the Government Whips leading the march of opposition.

[Jon Trickett]

Fiduciary duty requires the person who sits on a board, or who is a consultant to a company, to act in the best financial interests of that company. MPs swear an oath of loyalty to the country and to their constituents. Let me illustrate the problem as I see it. Were an MP to find themselves on the board of, or be a consultant to, a tobacco company—to take an example at random—they would be bound by a fiduciary duty to pursue the financial interests of that tobacco company. Let us imagine proposed legislation to improve public health, which would be damaging to the interests of the tobacco industry, being introduced in the House of Commons. The perception of a conflict of interest would arise in the public’s mind. An explanation would have to be sought on the way an MP chose to vote, particularly if the remuneration received—as is the case for some hon. Members—is two or three times greater than the remuneration they receive as an MP. The public’s perception would lead to only one conclusion.

It is in order to tackle this problem that my right hon. Friend the Member for Doncaster North (Edward Miliband) has taken decisive action. From 2015, all Labour MPs will be banned from having directorships or consultancies for third-party commercial interests. I hope that other party leaders will see the sense of what we are proposing and move in the same direction.

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[Mr Lansley]

My hon. Friend is right. Not only Labour MPs, but the Labour party membership, were outvoted by the trade unions, and nothing that the Leader of the Opposition is saying will change that. As far as I am aware, one third of the electoral college for the leadership of the Labour party will continue to be trade-union controlled, so if they can get a sufficiently large majority, they can control the leadership of the Labour party.

The speech of the hon. Member for Hemsworth made no sense. I tried to listen to it and hear the argument, but if he wants to intervene and explain, even at this stage, I would be glad of that.

The motion is about regulating the ways that Members of the House work. As Leader of the House—that is one reason why I am responding to this debate—it is my view that proposals adopted by the House to regulate how Members behave should be the product of consultation across the House, and considered on the basis of proper scrutiny by relevant bodies, either in the House or externally. In this case, the Labour party has put forward a proposal without any such basis or advice to the House; procedurally it has gone about it the wrong way.

What is the real objective behind the motion? We should proceed in this House on the basis of trying to solve real problems. If the hon. Gentleman wants simply to talk about the issue, and the Labour party wants to get rid of the perception that those who are paid in this House are controlled by their paymasters, I have a simple proposition for the hon. Gentleman, which involves not taking money from the trade unions. That is not just a perception; the reality is that Labour’s interests are controlled by the trade unions. What is the hon. Gentleman trying to solve?

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. I understand that the right hon. Gentleman is trying to reach a conclusion and bring the debate together, but I do not think he wants to be dependent on the policies and funding of the Labour party. This debate is about remuneration and second jobs in this House. I am sure the Leader of the House is desperate to get to that point.

[Mr Lansley]

I am trying to get to the argument, as I understood it, of the hon. Member for Hemsworth, and his point about the public perception that where Members of the House are in receipt of money from outside organisations, they are in the control of those organisations. I do not think that is true and I want to know what the motion is trying to achieve. It does not ensure that Members spend any given amount of time working with their constituents. A paid directorship or consultancy for one or two hours a week would be ruled out by this motion, but if a Member was engaged in travelling the world, for example, to undertake speaking engagements on behalf of some other organisation, which took them away for weeks—[Interruption.] Apparently in the view of Opposition Members that is absolutely fine and would not interfere with their ability to look after their constituents at all.

The motion does not stop Members having second jobs; it simply tries to stop them having certain kinds of second jobs, which is rather bizarre. It imposes no limit on the amount of money Members can earn outside politics; it simply wants to stop them earning money in particular ways.

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[Oliver Colvile]

Earlier this year I had to appear in the jury at the Old Bailey and so had to be away from this place for a week—[Interruption.] Some Members might think that I was there on trial, but I was actually doing my civic duty, and Members of Parliament are now required to do that.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. Mr Colvile, I am not sure that quite fits with paid directorships and consultancies, so I think we will let your good duty in court go—[Interruption.] Sir Edward, I do not think we need any help from you either.

[Paul Flynn]

Again, there is a great gulf between what is happening in this Chamber and what is happening outside. I believe that it is entirely reasonable for Members who wish to go off and do other work to do so under certain circumstances, but let us get away from the idea that MPs, who get a handsome salary as far as most of our constituents are concerned, should greedily look for other earnings. Of course it is an advantage also to work as a journalist, a writer or whatever else, but when it comes to the crunch and there is a crisis, when Members know that they should be here writing to Ministers, demanding answers, making a case or meeting people, if someone comes along and says they’ll pay them 10 grand to write an article in the next 24 hours, what choice will they make? If there is no money involved, there is no real choice, as we know where our loyalties lie. We must escape from that. I appeal to Members: do they not know how low the public’s regard for us is?

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[David Morris]

That is a matter for another debate.

[Mr Deputy Speaker (Mr Lindsay Hoyle)]

Order. You cannot suggest that we have another debate. The matter has been put on the record, and that is the record as it stands.

[David Morris]

Thank you, Mr Deputy Speaker. It is arguable, though, is it not, how many Labour Members are being subsidised by the unions? Come on, hands up—let’s see you. How many are being supported by the unions? [Interruption.]

[Mr Deputy Speaker]

Order. Sit down, Mr Morris. Let us get into the habit of using the Chamber in the way it should be used. In fairness, I think that the matter has been put on the record and straightened out. I am sure that you want to participate in the debate on directorships and remuneration of those who receive them.

[David Morris]

I totally agree, Mr Deputy Speaker, but I have been sidetracked from what I wanted to say. If people do not want an MP who has a job outside Parliament, they should not vote for him.