House of Lords: Reform

Lord Lee of Trafford Excerpts

Thursday 21st June 2012 Lords Chamber

Asked by

[Lord Lee of Trafford]

To ask Her Majesty’s Government what is their latest estimate of the cost of their plans to reform the House of Lords.

[The Chancellor of the Duchy of Lancaster (Lord Strathclyde)]

My Lords, on behalf of the whole House, I wish my noble friend a very happy 70th birthday. As to his Question, cost estimates depend on the content of the Bill. Therefore, the Government will publish full cost estimates when we introduce a Bill.

[Lord Lee of Trafford]

I thank my noble friend for his good wishes. My finest birthday present would have been for him to announce that the Government’s proposals were to be withdrawn because they are nearly friendless and wholly unnecessary.

Is my noble friend aware that the noble Lord, Lord Lipsey, a distinguished and recognised economist, has costed the Joint Committee proposals? The details have been sent to the Library and are freely available. He projects that the total cost of the recommendations will be nearly £500 million by 2020, broadly split between running costs of £300 million and election and referendum costs totalling £200 million—in other words, half a billion pounds in total. That is equivalent to the cost of 15,000 nurses’ salaries in one year. This £500 million compares with the total cost of running this House for the past five years of £91 million; it is five times as much. When the public wake up to this gross waste of money, will they not kick the proposed Bill firmly into touch?

[Lord Strathclyde]

My Lords, we will publish a Bill before the Summer Recess. When we do, we will have a full estimate of what a reformed House would cost. However, noble Lords would be wrong to assume that this will necessarily be an enormously expensive enterprise. After all, part of the purpose of reform is to reduce significantly the size of the House. However, we will make a full cost estimate when we publish the Bill.