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

Lord Hardie Excerpts

Tuesday 5th November 2013 Lords Chamber

Moved by

[Lord Hardie]

1: Clause 1, page 1, line 5, leave out “carry on the business of consultant” and insert “engage in professional”

[Lord Hardie (CB)]

My Lords, in moving this amendment I also wish to speak to Amendments 4, 6, 46, 53, 59 to 62, 66, 79, 80, 87, 96, 98, 111, 116 and 117 standing in my name.

Part 1 of the Bill is confined to those who carry on business as consultant lobbyists. This amendment, and related amendments in my name, seeks to extend the Bill’s provisions to in-house lobbyists who endeavour to influence the Government about the matters specified in Clause 2(3). I suspect that the public do not distinguish between consultant lobbyists and in-house lobbyists. The present proposal for a register of those carrying on business as consultant lobbyists fails to address the equal concerns of the public about the activities of in-house lobbyists of major companies to which the noble Lord, Lord Norton of Louth, alluded at Second Reading. In other amendments which we shall discuss later I have suggested a register of lobbying activities. As the noble Lord, Lord Lang of Monkton, implied, a lobbying register might be more effective than a register of lobbyists. I have suggested both but if there is to be a register of lobbyists, it must be a register that includes in-house lobbyists if it is to have any credibility.

In introducing the Bill at Second Reading the noble Viscount the Minister acknowledged the role of lobbying in the policy-making process of our democracy. I agree, as did many other noble Lords at Second Reading, that lobbying undertaken in an open, transparent and responsible manner is integral to our democratic system. However, the noble Viscount also said that there had,

“been some concern … that some lobbying activity is opaque and there is a perception that certain powerful organisations and individuals could exert a disproportionate influence on government”.—[Official Report, 22/10/13; col. 893.]

It seems to me that in confining the register to consultants lobbyists the Bill fails to provide the necessary transparency in public life which will deliver to the public the noble Viscount’s promised offer of,

“greater confidence in our political system”.—[Official Report, 22/10/13; col. 892.]

It certainly does not dispel the perception that powerful organisations could exert a disproportionate influence on government. It does nothing to address that particular concern. Such organisations include major British and multinational companies involved in the tobacco, alcohol and gaming industries as well as energy suppliers, and many more listed by the noble Baroness, Lady Hayter of Kentish Town, at col. 897. Many of those organisations have in-house lobbyists and will not be subject to this legislation.

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[Lord Wallace of Saltaire]

My Lords, there was considerable concern while the previous Government were in office that consultant lobbyists were a powerful element in our political system, that we did not know who they represented and that it would be better if the public were informed who their clients were. The noble Baroness has, on a number of occasions, stressed the point that perhaps one should also add what subjects they are discussing with the Government. I am very happy to take that away and perhaps on a belt-and-braces principle that should be tied in. However, I do not think it takes away the issue that for transparency of the democratic process it is desirable to know who consultant lobbyists are representing and who therefore is paying them.

Perhaps I may move on to answer some of the questions. The noble Lord, Lord Campbell-Savours, asks what our assessment is of the number of lobbying organisations that will be required to register. Our current estimate is that it will be somewhere in the order of 350. We have held a number of constructive meetings with representatives of the industry at which we discussed the voluntary register and the code of conduct, and we have talked with the three main industry bodies concerned. They were able to give a reassurance that many of the concerns regarding the application are being met by that.

I turn now to the details. As I said to the noble and learned Lord, Lord Hardie, if the tobacco industry lobbies on behalf of its own industry, we know what is going on. If it is a consultant lobbyist lobbying on behalf of the industry, that is a great deal less clear. That is the underlying distinction between a consultant lobbyist and a professional lobbyist. Because I am concerned with the EU balance of competences exercise, over the past nine months I have read a great deal of evidence produced by the Scotch Whisky Association. I know exactly where the association is coming from and what it is lobbying about. If it were a consultant lobbyist, that would be a different situation. That is the distinction we are making.

On the question of whether we extend this to professional lobbyists, I cannot see the justification for excluding charities from it. As a Minister, I have met a number of charity representatives who have lobbied us on policy issues. That is quite properly a part of what charities themselves do.

[Lord Hardie]

Does the Minister not accept that charities would be exempt in terms of the schedule because what they do would be incidental to their other activities?

[Lord Wallace of Saltaire]

I am not sure that I do accept that. I am a member of the National Trust. Yesterday I received an e-mail from the trust which talked about the National Trust’s “vital” campaigning and advocacy work. I have to admit that I did not actually join the National Trust primarily in order to support its campaigning and advocacy work, but it regards that work not as an incidental part of what the trust is for. Noble Lords should look at the most recent announcement made by Oxfam. It is changing its internal organisation so as to put more stress on its campaigning dimension. Campaigning is at the centre of what Oxfam regards as its entirely appropriate charitable activities. Part of campaigning is, of course, lobbying Governments. I therefore do not accept that distinction.

We see the Canadian example as one that suggests overregulation, and therefore distinguish between professional lobbyists and consultant lobbyists. The noble Baroness, Lady Royall, and I were at a conference over the weekend. At one point we were both sitting with a senior executive from BP, and indeed one consultant lobbyist was there. I forgot to ask him precisely who his clients were, and perhaps I should have done. However, when you are talking to a representative of a company, you know who you are talking to and what you are talking about. I came away from the conference much better informed about BP’s involvement in the Southern Corridor pipeline project than I had been, and I trust that that will inform me in future discussions with those Governments through whose territories the pipeline will go.

Transparency is about knowing who these consultant lobbyists are representing. A number of amendments in this group address that point. The Government are not persuaded, but of course we are open to further discussions about particular areas where noble Lords feel that there is an overlap between consultancy and professional lobbying, although I do not entirely see how a particular lobbyist, being employed part time by five or 10 different companies, would somehow get around this legislation, as has been suggested.

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[Lord Wallace of Saltaire]

Organisations, I should have said.

[Lord Hardie]

I am grateful to noble Lords for their contributions to this short debate and to the Minister for his reply.

To answer the point raised by the noble and learned Lord, Lord Mackay of Clashfern, the definition of professional has been slightly widened over the years. I imagine that those who undertake lobbying activity for a living would probably prefer to be called a profession rather than a trade. Therefore, those who lobby, whether they are lobbying as employees on behalf of employers or as consultants, might be described as professional lobbyists.

As the Minister pointed out, consultant lobbyists might well have only one client, although that might be a rare case. Indeed, the Bill itself recognises that the consultant is a person who,

“makes communications … on behalf of another person or persons”,

so the singular is certainly envisaged.

I am grateful to the Minister for his response and want to reflect on his comments about charities and the exemptions—if they are exempt. I note that he said that he is open to further discussion and that the Government will look in response to the noble Lord, Lord Wigley, at possible further extensions without further legislation. Those matters ought to be and will be explored between now and Report. I may come back at Report with a more focused amendment, but, in the mean time, I beg leave to withdraw the amendment.

Amendment 1 withdrawn.

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[Lord Campbell-Savours]

My Lords, my amendment would inject the words “of government” after the words in Clause 1(1):

“A person must not carry on the business of consultant lobbying”.

I should make it clear that I am amending a part of the Bill which I believe in principle to be totally inadequate to deal with the problem of the lack of transparency; I am only amending what is on offer.

Amendment 3 would clarify in the first clause of the Bill exactly the intention of the Government behind the legislation. The Bill restricts its remit and reach to limited areas in the institution of government. My amendment would make it clear that at this stage, the Government’s intention has been deliberately to exclude other important areas of government influence over public policy and decision-taking from the reach of the Bill. I tabled this amendment last Thursday to draw on the wider debate about those bodies that were being deliberately excluded—namely, government in its wider form, and Parliament—since when, on Friday, my noble friends Lady Royall of Blaisdon and Lady Hayter of Kentish Town tabled their Amendments 18 and 22, which more roundly deal with the issue of Parliament. I therefore yesterday withdrew the reference to Parliament in my amendment and will leave that to them to deal with.

My amendment would bring under the Bill government as a whole, as against the cherry-picked sectors which the Government propose. My case is that executive agencies, which are staffed by civil servants, non-departmental public bodies, which are staffed with a mix of non-civil servants and civil servants, and non-ministerial departments are all crucial parts of government.

The document Categories of Public Bodies: A Guide for Departments, of December 2012, sets out each of the three areas of government to which I have referred. Non-ministerial departments are described as,

“government departments in their own right—but they do not have their own minister”.

They include the Charity Commission for England and Wales, the Food Standards Agency, HM Revenue and Customs, the Office of Gas and Electricity Markets, Ofsted, the Office for Standards in Education and Children’s Services and Skills, Ofwat, the Office of Water Services, and the UK Statistics Authority.

Executive agencies are defined in the document as,

“business units headed up by a chief executive … often supported by a management board. Executive agencies carry out executive functions, with policy set by ministers”.

They include HM Courts and Tribunals Service, the Identity and Passport Service, the Maritime and Coastguard Agency and the UK Border Agency. Finally, there are non-departmental public bodies, which are described as carrying out,

“a wide range of administrative, commercial, executive and regulatory or technical functions which are considered to be better delivered at arm’s length from Ministers”.

All these bodies are part of government and deal with contracts as set out in Clause 2(3)(c)(i). Some deal with grants and “other financial assistance”, as set out in Clause 2(3)(c)(ii), and some grant licences and other authorisations, as set out in Clause 2(3)(c)(iii). In other words, they are very much at the heart of government and carrying out the functions described in the Bill, and which the Bill is intended to catch. My amendment, which at this stage is a probing amendment, asks the Government why these bodies are to be excluded. I beg to move.

[Lord Hardie]

My Lords, I shall speak to Amendment 24, which is in this group. In doing so, I wish also to speak to Amendment 52 and, with the leave of the House, Amendments 56, 57 and 58, which are in a different group but are all consequential on the main amendment.

Clause 2(3) applies only to communications to,

“a Minister of the Crown or permanent secretary”,

second Permanent Secretary or persons serving in government offices as listed in Part 3 of Schedule 1. My amendment seeks to extend the class of persons. As many noble Lords observed at Second Reading, lobbyists will not confine their activities to Ministers or the senior civil servants listed in these provisions. Indeed, their involvement with such people is likely to follow lobbying activity involving civil servants of a lower grade. This is clearly the case when one considers the word “government” in paragraphs (a) to (d) inclusive of Clause 2(3), which has to be construed in accordance with paragraph 1(4) of Schedule 1. That construction extends the definition of consultant lobbying to Ministers or their equivalent, and officials at the highest level in devolved Governments and local authorities in the United Kingdom, and in any institution of the European Union.

When I was in practice at the Scottish Bar, I was initially standing junior to the City of Edinburgh Council then, when I was appointed Silk, I became standing senior to that authority. From that experience, I am aware that local authority officials of a lower grade than senior management prepared policy documents for consideration by senior officials, then elected members. Those junior officials had considerable expertise within their own professional competence and a significant influence on the terms of policy documents that were ultimately submitted to elected members. Any lobbyist worth his salt who wished to influence policy would communicate with these officials at an early stage. I suspect that the same is true in central government and devolved Governments in the United Kingdom. If this provision is to be of any significance, it should be extended to include communications with any civil servant. Equally, there is a perception that political advisers can have a significant influence on government policy. Why should they not be included in the definition of persons to whom communications are made?

Amendment 34 sets out the definition of “political adviser” but, on reflection, the approach taken in the amendments by the noble Lord, Lord Norton of Louth, and the noble Baronesses, Lady Royall of Blaisdon and Lady Hayter of Kentish Town, is more appropriate in referring to “special advisers”. That avoids reinventing the wheel.

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[Lord Hardie]

I support this amendment, and I hope that the Minister will see his way to coming forward with an amendment on Report to give effect to this. This may well not only meet the concerns of the noble Lord, Lord Norton of Louth, but also the suggestion by the noble Lord, Lord Lang of Monkton, at Second Reading that an easier and perhaps more effective approach to lobbying issues might be to require the person in government who is lobbied by discernible commercial interests to declare that in a lobbying register. That would perhaps go slightly further than the amendment, but I think the amendment meets the concerns expressed then. The amendment would have the added advantage that it would enshrine in statute this admirable initiative taken by the Government so that it would apply not just to this Government on a voluntary basis, but to all future Governments so that Ministers would be obliged to disclose their activities and they would appear alongside the details in the register.

[Lord Martin of Springburn]

My Lords, I am slightly worried about the speed which is being talked about by the noble Lords, Lord Kerr and Lord Tyler. I have no objection to getting up-to-date information but, if I understand correctly, we are talking about the information going out the following day. There have to be security implications. When I held of the office of Speaker, I was warned that there are fixated individuals who watch, stalk, make a pest of themselves and can be even more dangerous than that. The information would not only show up who the Minister was meeting but could well show up the venue, the place where the Minister was meeting. If it showed on a regular basis over a number of weeks that a meeting was taking place at a certain venue—let us say that the Minister by preference wanted to meet in his or her native city and said, “Make it a Friday at my constituency central office”—it could throw up a pattern of where the Minister was every Friday or every Monday for that matter, before they moved down to Westminster. I put that in as a word of caution. If the information says that the Minister met a representative from BT or Centrica, I would not be too unhappy, but if it showed a Minister meeting at a certain venue, I would worry about that.