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

Lisa Nandy Excerpts

Wednesday 22nd January 2014 Commons Chamber

[Tom Brake]

I can reassure my hon. Friend that I have not finished commenting on special advisers, so perhaps I should pursue that. There might be further interventions, but let us wait and see.

Special advisers are defined by the Constitutional Reform and Governance Act 2010, which includes the requirement that they are a person

“appointed to assist a Minister of the Crown after being selected for the appointment by that Minister personally”.

The Act also provides for a statutory code for special advisers that makes it clear that they may not authorise the expenditure of public funds, exercise any power in relation to the management of any part of the civil service of the state or otherwise exercise any statutory or prerogative power.

As the code makes clear, the employment of special advisers adds a political dimension to the advice and assistance available to Ministers. They are an additional resource for the Minister, providing assistance from a standpoint that is more politically committed and politically aware than would be available from the permanent civil service. I must restate this: unlike a Minister or permanent secretary, a special adviser is not a decision maker, even if, as my hon. Friend the Member for Totnes (Dr Wollaston) says, they are attached to the Minister’s hip. We are aware, however, that there are those in this House who agree—[Interruption.] Members need to listen.

We are aware that some Members agree with the conclusion of the House of Lords that communications with special advisers should be captured. Indeed, many Liberal Democrat peers and Members of Parliament agree that they should be captured, but no amendments were tabled to extend the scope of the register in such a way when the issue was discussed in this House. In the House of Lords, Lord Tyler’s amendment was agreed to, but by a small majority.

[Lisa Nandy (Wigan) (Lab)]

Can the Deputy Leader of the House confirm that Lynton Crosby would be covered both by the code of conduct and the amendment that the Government have tabled today?

[Tom Brake]

That matter has been raised on a number of occasions. If he were involved in a firm of consultant lobbyists, absolutely, he would have to register as a consultant lobbyist.

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I look forward to the discussion on these amendments. The Government are confident that our proposed response to Lord Tyler's amendment is sensible and constructive and will facilitate agreement between the two Houses. Equally, we are confident that the Government amendments agreed in the Lords will further enhance the part 1 provisions and ensure the delivery of a robust registration system that will enhance the transparency of consultant lobbying.

[Lisa Nandy (Wigan) (Lab)]

The Opposition share the astonishment of charities, lobbyists, campaigners and members of the public at the way in which the Bill has been handled. Until this morning, we had been led to understand that the Government were intent on reversing the progress that had been made in the other place. This morning, when the list of amendments was published, we thought that they had conceded on special advisers. In fact, they appeared to have got themselves into a position where they were disagreeing with themselves. After listening to the Deputy Leader of the House for 47 minutes of the two hours that we have been given to debate this important part of the Bill, I, like the Chair of the Select Committee, am none the wiser as to what the Government propose. From the interventions of Members on both sides of the House, it appears that the Minister himself is not entirely sure what he is proposing either.

It is important that we understand how we arrived at this state of extreme confusion. Clause 2—indeed part 1 of the Bill—was drawn so narrowly that none of the lobbying scandals that gave rise to the Bill would have been caught by it. The Bill was massacred in the other place, and rightly so. The decision to include special advisers was made by a decent margin, and prompted 30 Liberal Democrat peers to vote against their own Government. There have been three defeats in the other place on fundamental aspects of the Bill, and it is important that Ministers and the House ask why. This is a lesson in how not to introduce legislation. There was a lack of pre-legislative scrutiny, and no expert witnesses were allowed to be called. After three years of silence on this issue, proposals landed out of the blue just two days before the summer recess. We had a two-paragraph response from the Government to a well-considered Select Committee report. We had the spectacle of a Government refusing the request from across civil society to pause the Bill for long enough to make what was branded “a dog’s breakfast” by the Chair of an influential Select Committee into a workable and effective piece of legislation. The speed is frankly ridiculous.

The Government were still suffering defeat in the other place yesterday evening. In its report written last night and published this morning, the Select Committee said:

“The timetable that the Government has imposed for this Bill indicates a contempt for Parliament and a lack of belief in…parliamentary scrutiny.”

Baroness Williams said that the gap between the Bill leaving the other place and arriving here was “frankly ludicrous”. Of the two hours that we have to debate this important part of the Bill, the Minister took 47 minutes, and we are none the wiser. Like hundreds of constituents who have e-mailed me over recent weeks, I have reached the conclusion that this is a Government who have very little commitment to democracy and are not willing to be challenged.

[Wayne David (Caerphilly) (Lab)]

Why does my hon. Friend think that the Government are so determined to push this through at this ridiculous pace?

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[Lisa Nandy]

That is a good question. Those of us who listened to the Minister earlier are still grappling with how on earth the Government could have got themselves into this position.

Unlike the Minister, we have been consistent in our support for extending the definition of lobbying to include special advisers. Throughout this shambolic process, Ministers have been unable to find a single good reason why that should not take place.

[Mr Jim Cunningham (Coventry South) (Lab)]

We can understand why the Government are in a muddle, because there is no public support for the Bill. However, there is public support for something to be done about lobbyists, rather than attacking trade unions all the time.

[Lisa Nandy]

Absolutely. I would simply add to my hon. Friend’s comments the voice of many charities, which quite simply cannot understand why they, as well as trade unions and grass-roots campaigners, are the target for this Bill, when it lets off the hook powerful vested interests.

[Stephen Gilbert (St Austell and Newquay) (LD)]

Does the hon. Lady accept that in the other place Liberal Democrat peers sought to exclude and exempt from the Bill all charities, yet that move was resisted by her colleagues in the other place?

[Lisa Nandy]

And by a majority of the charitable sector as well. The reason for that is that the Bill, as the Chair of the Select Committee has said, is a dog’s breakfast, which is so fundamentally flawed that it should be put on hold, with sufficient time for it to be thoroughly revised. If we had had pre-legislative scrutiny and consultation in the first place, we would not be in this situation.

Ministers suggested that it would be practically too difficult to extend these provisions to special advisers. But as the Deputy Leader of the House just said in his long contribution, the Government already publish information about special advisers. They publish details of gifts and hospitality received, and details of meetings with newspaper and other media proprietors’ editors and senior executives on a quarterly basis. There is no obvious reason why this could not be extended further. The truth is that there is no political will to make this happen. Ministers have consistently been told by many of us that this really matters. Many of the scandals that this Government have been caught up in have involved Government advisers, not the Minister or the permanent secretary, whom the Deputy Leader of the House is so keen that the Bill should cover. Let us take the example of Fred Michel, an in-house lobbyist for News Corp who was exchanging written communications with Adam Smith, then special adviser to the then Culture Secretary. In e-mails and text messages exposed by Lord Justice Leveson, it became clear that that was entirely inappropriate, yet the Government have gone to great lengths to ensure that no transparency requirements will be extended to such advisers or to such in-house lobbyists.

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[Lisa Nandy]

My hon. Friend, who has long been a champion of that sector, is absolutely correct. She shares my bewilderment at the Government’s target in the Bill.

As Lord Tyler made clear when the Bill was considered in another place,

“two of the big lobbying scandals in this Parliament… would probably never have got to this stage had encounters between close ministerial advisers and outside groups been a matter of public record.”—[Official Report, House of Lords, 13 January 2014; Vol. 751, c. 29.]

There are 98 special advisers across Whitehall but, as we have learnt through the dialogue with the Deputy Leader of the House today, there are many others who are considered to be advisers and are, like special advisers, the first, if not the only, port of call for lobbyists. As was said earlier, the process of arriving at decision making matters as much as the decision itself.

[Tom Brake]

The hon. Lady is obviously a strong advocate of transparency. One of the things that the Government have asked the Opposition to do, in the interests of transparency, is make available information on meetings that shadow Ministers have. Is that something they will do?

[Lisa Nandy]

I am grateful to the right hon. Gentleman for that question, because it gives me an opportunity to say that, unlike the Liberal Democrats and the Conservatives when they were in opposition, we publish details of meetings on a regular basis. In fact, we are the most transparent Opposition ever. I find it absolutely astonishing that, three and a half years after the Prime Minister, then Leader of the Opposition, made a commitment to shine a spotlight on the shadowy world of lobbying, the Government have climbed down on all the measures that we have been urging them to accept and the only thing that they can do is challenge us on our shadow ministerial diaries. The Deputy Leader of the House’s own argument was that the Government are responsible for making decisions. My point to him is that the Government are responsible for making decisions, and for the process by which they are made. We would like the measures that we have proposed to be put into the Bill. We can still see no good reason why the Government are resisting those calls.

The issue of special advisers is so important to the House because of the decision that we are being asked to make in less than an hour. I would like to ask the Deputy Leader of the House a series of questions that I have come up with in the last two hours, since the Government decided to table their somewhat bizarre and obscure amendments. First—I echo my hon. Friend the Member for Penistone and Stocksbridge (Angela Smith)—what is the difference between what they have tabled and the amendment proposed in the other place? The answer to my hon. Friend appeared to be that the Government are simply kicking it into the long grass. Will the Deputy Leader of the House confirm that that is the case? Is this a guarantee that it will happen? The Government amendment states that the Government “may amend regulations”. Why use “may”?

The Deputy Leader of the House said that there was a need to reach consensus. I can tell him, because, unlike the Government, I have been listening to the clamour outside this place, that there is consensus. In fact, the only people who do not appear to have reached consensus on the issue are sitting on the Government Front Bench. If he looks behind him, I think he will find that many Government Members are as concerned as we are. Are Ministers planning to introduce the proposed measure in regulation? Do they have a time frame for doing so? Why is it not being introduced now? What are the Government worried about? We urgently need to clear up the lack of understanding about the definition of special adviser.

The Government’s amendments refer to the definition in the Constitutional Reform and Governance Act 2010. I asked the Deputy Leader of the House whether Lynton Crosby would be covered by that. Would it cover Adam Smith, Adam Werritty or any other Government adviser who has been involved in the plethora of scandals in recent years? [Interruption.] The Leader of the House is shaking his head and muttering under his breath. I can tell him that this matters not only to Members of the House, but to people outside this place. He will know that because he will have received hundreds of e-mails about the Bill from constituents, as we all have.

My reading of the amendment is that Lynton Crosby would not be covered, because he does not adhere to the special advisers code of conduct. If that is correct, it is a disgrace. The Deputy Leader of the House, in answer to an earlier question, did not seem at all clear about who was covered by his own amendment. I am not surprised, because it was made available to us only at 11 o’clock this morning, and he expects us to vote on it shortly.

The Chair of the Political and Constitutional Reform Committee asked about senior civil servants. If Ministers are conceding—I am still not sure if they are—that the requirements in the clause can be extended to special advisers, they can also be extended to senior civil servants. It is fairly obvious that permanent secretaries are rarely lobbied, whereas senior civil servants and special advisers are. Ministers do not have to believe me; they can listen to the deputy chair of the Association of Professional Political Consultants, Iain Anderson, who said:

“The vast majority of lobbying is not about meeting Ministers or permanent secretaries”.

The TUC, Spinwatch and other lobbyist groups have made the same point. The truth is that there is no reason at all not to support the sensible amendment tabled by the Chair of the Select Committee.

The Prime Minister used to be fond of quoting US Supreme Court Justice Louis Brandeis, who said that sunlight is the best disinfectant. Perhaps he ought to reflect on something else Mr Justice Brandeis said:

“People who feel uncomfortable under the bright light of scrutiny and criticism often have something to hide.”

Are the Government afraid of challenge? Let us consider the evidence: the right to challenge cut back through legal aid restrictions, employment tribunal fees and restrictions on migrant appeal rights; an Education Secretary who is fighting the Information Commissioner tooth and nail to block information from the public domain; and a scandal involving the use of private e-mail accounts at the heart of the Department for Education. Only this week Downing street refused to reveal how many guests were hosted at Chequers. The Prime Minister released a partial list that excluded special advisers, officials and, it seems, Conservative party donors. Without the amendment tabled by the Chair of the Select Committee and the important change on special advisers made in the other place, the Bill will do absolutely nothing to increase the transparency of lobbying.

During the 47 minutes of the Deputy Leader of the House’s speech, the only reason that I could understand for why he objects to that sensible measure is his claim that it would impose additional costs and bureaucracy. I simply do not understand how the Government have the nerve to talk about costs and bureaucracy when they are placing unnecessarily restrictive, expensive and onerous burdens on charities, grass-roots campaigners and trade unions, who are the lifeblood of democratic debate in this country.

[Paul Flynn]

That matter was investigated thoroughly in the previous Parliament by the Public Administration Committee. There might be a burden if records and diaries were still kept by clerks working at high desks and writing on parchment with quill pens. We know now, as was made clear in the Committee’s report, that transferring the information is simple, could be done electronically and would cost nothing.

[Lisa Nandy]

I am grateful to my hon. Friend, as ever, for his wise words. I absolutely concur. I do not see why it should be difficult in this day and age to put such information on a website.

Before the general election the Prime Minister, then Leader of the Opposition, said that lobbying was the next big scandal waiting to happen. It did happen, repeatedly, and to him. After three years of scandals, we believe that it is shameful that the Bill does absolutely nothing to raise standards in lobbying. As Lord Norton has said,

“the Bill does not enhance transparency and it is not actually about lobbying. It is about lobbyists; it is about status, not about activity.—[Official Report, House of Lords, 13 January 2014; Vol. 751, c. 13.]

We believe that it should be. That is why the amendment standing in my name and those of my hon. Friends would make it a requirement that registered lobbyists have to abide by a code of conduct.

The Government have conceded that registered lobbyists should record whether they are signed up to the code of conduct in the register, and we welcome that. However, the risk remains that the register will be used by lobbyists and by the public as a means of granting legitimacy to a company and its activities. It is surely no stretch of the imagination to imagine lobbyists using the term “registered” to grant themselves some kind of legitimacy that the public may not understand. Even with the changes made so far, there is nothing to stop lobbyists of any kind getting on to the register—even those who have been convicted of illegal activities. Without the amendment, there is also no mechanism to strike lobbyists off the register.

These views are shared by many in the industry. Gavin Devine, the chief executive of MHP Communications, said in a submission to the Political and Constitutional Reform Committee:

“There is a real danger that a register by itself may make the situation worse, since it is likely those on the register will describe themselves as a ‘registered’ or ‘approved’ lobbyists, without having to meet at least some minimum standards. In short, there is a risk that the register will give a kitemark or endorsement to some who do not deserve it”.

We agree with the lobbying industry, campaigners, charities and transparency activists that our proposal would help to set the standard of behaviour. The voluntary code that already governs part of the industry has sanctions for those who breach its provisions. As such, the measure proposed by the Government is a backward step—a register that could legitimise lobbyists without any standards or sanctions whatsoever for bad behaviour. This is a £2 billion industry that has been beset by scandal, to the dismay of many of us, those in wider society, and reputable lobbyists in the industry.

[Stephen McPartland (Stevenage) (Con)]

Is the hon. Lady saying that she does not want part 1 of the Bill and does not want a register of lobbyists?

[Lisa Nandy]

Absolutely not. This is another aspect of the confusion that exists among Government Members. I say that with the greatest respect to the hon. Gentleman, and I am grateful for his question. We have consistently called for higher standards, and that is the purpose of our amendment. Indeed, we would have liked to table it earlier so that there was much more opportunity to discuss it with Members in all parts of the House, but unfortunately the unseemly haste with which the Government have pushed this shambolic Bill through meant that we were unable to do so. We want to make sure that all the lobbyists who are registered on the Government’s register adhere to a code of conduct, with proper sanctions for poor behaviour and the ability to strike them off for it.

This Bill was the Government’s opportunity to begin to restore trust in politics, and we would have fully supported them in that mission. When the Bill was published, leading figures from the charity sector wrote to the then Minister, the hon. Member for Somerton and Frome (Mr Heath), saying that they stood ready to work constructively with the Government to try to improve a piece of legislation about which they had genuine concerns. The National Council for Voluntary Organisations said that the pause that was agreed in the House of Lords felt more like “a rebuttal exercise” than a listening exercise. In our view, the Government have shown civil society almost total disdain throughout this process, and in doing so they have shown, yet again, that they are not listening to a voice that they have a duty to hear.

We are unlikely to press our amendment to a vote, for one reason and one only—the severe time constraints that this shambolic process has placed us under. We are deeply concerned about what the Government are now proposing on special advisers and we believe that there is an urgent need to address the many chilling measures that are still in the remaining parts of the Bill, which we have only a couple of hours to debate after we finish debating this part. Ministers should be in no doubt whatsoever that we share the view of the Select Committee that this part of the Bill is unsatisfactory and inadequate and will stifle democratic debate.

On Second Reading, the Leader of the House said,

“we have sought to be the most transparent Government in history.”—[Official Report, 3 September 2013; Vol. 567, c. 169.]

What a joke that now appears. The Government have proved throughout this process that they will not stand up to the wealthy and powerful but prefer instead to target charities, trade unions and grass-roots campaigners. This Bill lies in tatters; it is a shambles. The Government should be ashamed to have introduced something like this to us today. Ministers seem determined not to hear the roar of noise coming from outside this place, but we remain determined that they will hear it.

[Several hon. Members]

rose—