Conduct Committee Report

Lord Lexden Excerpts

Wednesday 2nd December 2020 Lords Chamber

[Lord Brown of Eaton-under-Heywood (CB) [V]]

My Lords, I should start by explaining that I am moving this Motion as a member of the Conduct Committee on behalf of my noble and learned friend Lord Mance, because this particular report raises matters in which he personally has interests and has therefore recused himself from deliberations upon it.

This report builds upon an earlier report that the House approved in July about Members’ dealings with foreign Governments. It is, indeed, the latest in a series of changes that we are proposing to the House in order to increase transparency around Members’ overseas interests, reflecting increasing levels of concern about foreign state influence on our politics. Not least, your Lordships will recall, such concerns were raised by the long-awaited ISC report in July. After a good deal of deliberation, the committee is now proposing that Members should be required on an annual basis to disclose their earnings—I quote paragraph 9 of the report —from

“governments of foreign states (including departments and agencies), organisations which may be thought by a reasonable member of the public to be foreign state-owned or controlled, and individuals with official status (whether executive, legislative or judicial) in foreign states when acting in that capacity”.

One of our key challenges was to find such a definition that properly caught all that we wanted and thought we needed to capture.

Although the registrar may be consulted, Members will be responsible for judging whether an organisation or individual in fact meets that definition. In case of doubt, they should err on the side of registration. Members will be able to disclose the exact amount that they have been paid or simply indicate into which of the several bands set out in paragraph 12 of the report their earnings fall.

The committee is aware that in some professions there is a clear duty of confidentiality that would prevent some Members from disclosing all the information required. Obviously, they may include doctors, arbitrators or perhaps other lawyers. Rather than try now to come up with a definitive list of such professions in the code, we propose that Members should apply for an exemption as far as necessary. To do that, they will be asked to consult the registrar, who will provide advice on the basis of detailed guidance, which we, the Conduct Committee, shall give him. The committee is currently drawing up such guidance, with a view to publishing it early next year.

If the House agrees this report, the registrar will email Members to explain these changes, which will then take effect from 1 January 2021. Registerable earnings between then and the end of the financial year, 5 April 2021, would need to be disclosed no later than 31 January 2022. Registerable earnings in the next financial year would then need to be disclosed by 31 January 2023, and so on. All that is set out in paragraphs 10 and 11 of the report.

Finally, we propose also to add to the guide some cautionary wording for Members with regard to their dealings with foreign Governments and entities. Paragraph 17 deals with that. I beg to move.

[The Deputy Speaker (Lord Lexden) (Con)]

I will call the following to speak: the noble Lord, Lord Balfe, and the noble Baroness, Lady Smith of Basildon.

[Lord Balfe (Con)]

My view is that all money received by Members of the House of Lords should be declared. This report tries to do what is virtually impossible, which is to lay down a code of conduct that, by its own nature, is vague. I have a number of questions.

As regards the guidance on dealing with lobbyists, the report states:

“Members should be especially cautious when coming into contact with representatives of corrupt or repressive regimes”.


The noble and learned Lord who introduced the report is a lawyer. He will know that the word “representatives” is certainly capable of challenge. What is a representative? What is a corrupt regime? What is a repressive regime? Is Hungary a repressive regime? If someone is in contact with a representative of the Hungarian Government, at what level does the rule apply? Is the ambassador of Hungary a representative of a repressive regime? This report is shot through with problems.

The next page covers the level of remuneration in respect of the interests falling within this category that need to be disclosed only where they are received from the Governments of foreign states. What do we mean by “foreign states” or “controlled by”? Is Huawei controlled by the Chinese Government, as is alleged by some, or is it not controlled by them, as is said by the Chinese Government? What about what I would call “parastatal” regimes—in other words, bodies that are set up at arm’s length by Governments such as the British Government to provide services? Is Serco a parastatal regime and company, or is it not? This is just not good enough.

On applying for exemptions, how will we explain to the British public that Members of the House of Lords can take earnings from organisations and not declare them? That is what this says: earnings do not have to be declared because of confidentiality. We can have confidential agreements made by legislators who can subsequently intervene on legislation, but there is no public record of that. It is not good enough.

My final point is about

“disposing once in respect of each financial year.”

If I visit Turkey, which I did not so long ago, I have to declare that within two months. Why, if we have this system, could someone earn money in May 2021 and not have to declare it until January 2023? Why the sudden difference? I do not think that this is acceptable.

I will not vote against the report because that is not the done thing, but I do not think that it answers the question that was put before it, which is to make the proceedings of this House and the activities of its Members more transparent. I am sorry to rock the boat again, but these things need to be said.