House of Lords: Lord Speaker’s Committee Report

Lord Gadhia Excerpts

Tuesday 19th December 2017 Lords Chamber

[Lord Gadhia (Non-Afl)]

My Lords, numbers can paint a picture of a thousand words. Of almost 100 noble Lords who are speaking today, the average length of service is 14 years and the average age is 72. The gender balance, at less than 20%, is below the average of this House, as is the ethnic diversity. Interestingly, almost 40% are former MPs and MEPs. If you add former civil servants and hereditary Peers, the ratio increases to over half of all those wishing to make their voice heard. For the outside world, our deliberations might therefore appear as the establishment debating its own future. So I hope that your Lordships will forgive the temerity of a non-career parliamentarian who has served a mere 15 months in this House and is more than two decades below the average age in sharing some observations.

First, I add my support for the overall thrust of the report. It is in keeping with the great pragmatic British tradition of seeking voluntary change to pre-empt external imposition. I am familiar from my City experience with the takeover code: a voluntary set of rules governing public company mergers and takeovers, viewed by most practitioners as highly effective, where enforcement is by mutual consent among market participants rather than by legislation. Similarly, these reforms are a stake in the ground and, while there may be some imperfections and areas for improvement, we have to start somewhere and get ahead of events before they overtake us.

We should also recognise that these proposals are necessary but not sufficient. I will quote my noble friend the Leader of the House, who said:

“Any reform … must not be simply about numbers; it must result in this House working better in fulfilling our role effectively”.—[Official Report, 5/12/16; col. 589.]


I therefore wish to highlight five brief points that should logically be addressed, either as part of the current proposals or in the next phase of an evolutionary process of professionalising the House.

My first point is about legitimacy. For an appointed Chamber, this must inherently come from achieving a composition that reflects the full diversity of modern Britain. While there might be a natural political incentive to achieve such representation, it deserves a coherent framework. I therefore propose adding a third area of oversight for the House of Lords Appointments Commission beyond the two already identified in paragraphs 81 and 82 of the report. HOLAC should be asked to monitor formally the composition of the House and highlight areas of underrepresentation to the groupings. I believe that this is an extension of the role which it already performs informally.

My second point is about anachronisms. Other noble Lords can speak more knowledgeably about hereditary Peers, but I would make one humble suggestion to Lords spiritual: if they voluntarily reduce their numbers to increase the allocation of Cross Bench Peers, this might help facilitate representation of all major faith communities across Britain, whilst still giving prominence to the Church of England.

My third point is about the thorny issue of implementing voluntary retirements. This may prove to be a Pandora’s box, given the behavioural and adverse selection issues of managing people who cannot be formally unseated. It risks creating a new dynamic between Members and their party leadership which, as appendix 1 to the report states,

“might favour party loyalists and assiduous voters at the expense of members more willing to question or challenge their own parties”.

My fourth point is about younger Peers, both existing and prospective. There are currently 34 Peers under the age of 50. While the report articulated the disadvantages of a fixed retirement age, there is a de facto retirement date of 2042 implicit in paragraph 88, which most affects this group. I therefore propose a modification that would instead create a backstop date where any remaining life Peers by 2042 are shifted to a 15-year term, bringing them in line with newly appointed Members.

There is also a more fundamental question about the disincentives and opportunity cost for prospective younger Members to accept appointments to the House, unless they receive proper financial and administrative support. Assuming we proceed to the next phase of implementation, we should include younger Peers and those with substantial careers outside Westminster in drawing up the detailed rules.

This leads to my fifth and final point related to financial issues, where the report is largely silent, other than the veiled threat in paragraph 108 of withdrawing financial support to incentivise retirement. We should recognise, however, that membership of the House is not just a retirement activity for many Peers but a source of income, too. There are incentives and behaviours that flow from this reality. If we were a commercial organisation, financial inducements would be found for early retirement. Unfortunately, this is too toxic to contemplate. Similarly, there is merit in moving away from daily attendance allowances to fixed base fees and supplements for committee work, rather like non-executive directors.

To sum up, in my short time in this House I have come to appreciate its unique strengths as a second Chamber. With so much to offer, it would be a tragedy if we did not get on the front foot and shape our own destiny though sensible and enduring reform—not only of our numbers but, equally importantly, of our effectiveness, functions and financial arrangements.