Public Expenditure: Members of Parliament

Lord McNally Excerpts

Tuesday 26th October 2010 Lords Chamber

[Lord Grocott]

To ask Her Majesty’s Government what would be the net cost implications for public expenditure of reducing the number of MPs to 600 and introducing 300 directly elected Members into the House of Lords.

[The Minister of State, Ministry of Justice (Lord McNally)]

My Lords, it is difficult to attribute the exact savings from having 50 fewer MPs.

[A noble Lord]

What’s your best estimate?

[Lord McNally]

Our best estimate is £12.2 million annually, subject to decisions made by the Independent Parliamentary Standards Authority. Estimates on Lords costs will be given when the House of Lords reform Bill is published.

[Lord Grocott]

I am at least grateful to the Minister for enabling me to win my bet, which was that he would not answer the Question. I suggest that he looks at it like this. Will he confirm that on 5 July, his leader, the Deputy Prime Minister, said that the savings from reducing the number of MPs by 50 would be £12 million a year? Introducing 300 directly elected Members of the House of Lords, who of course would have much bigger constituencies, must therefore be at least six times that, at £72 million. Maybe the Minister’s departmental computer could confirm that that would mean a net cost of £60 million. At a time when the Government are looking for any possible cuts in public expenditure that they can find, and given that none of these reforms have any support among anyone out in the real world, why does the Minister not do the common-sense thing, save the money and scrap the lot?

[Lord McNally]

My Lords, I am rather hurt by the assertion that I did not answer the Question. The noble Lord has confirmed what my noble friend said in another place; that the cost for 50 MPs would be about £12 million. That is half the Question answered; that is five out of 10—a lot better than I used to do in some exams. On the second half of the Question, where the noble Lord is giving numbers for a reformed House of Lords and calculating on his own bases, we will have to wait for the Bill. He and I will then make calculations and be able to assess the cost. I am not in a position to answer both halves of the Question at this moment.

[Lord Tyler]

My Lords, does my noble friend recall that the previous Administration published a White Paper that had a section on costs for the House of Lords? The noble Lord, Lord Grocott, was a distinguished member of that Administration. Does my noble friend also recall that that Administration then had no economies to suggest for the House of Commons, and does he agree that the coalition is at least making a bid to find a reasonable equation?

[Lord McNally]

My Lords, I must say that the quality of the questions coming from the Liberal Democrat Benches today is extremely high. I am grateful for that question. I had forgotten that the previous Labour Government had done some costings; when I leave the Chamber, I will go and look at those costings and send them on to the noble Lord, Lord Grocott. That gives me an opportunity to say that the White Paper was partly the work of Mr Jack Straw, who, sadly, has moved from the Joint Committee because he has returned to the Back Benches. The quality of the Bill that is produced for this House in due course will owe much to the work done by Mr Straw, including his calculations on costs.

[Lord Boston of Faversham]

My Lords, does the Minister agree that the cost of reducing membership of the House of Commons by any number would be worth paying? Does he also agree that the cost of providing 300 directly elected Members of your Lordships’ House would not be worth paying?

[Lord McNally]

These are judgments that Parliament will make in due course. The argument for reducing to 600 has been well discussed at the other end of the Corridor and has been moving with all due speed. We will shortly have the opportunity to debate these issues ourselves.

[Lord Campbell of Alloway]

My Lords, does this Question not pre-empt the decision of this House as to whether it will retain an appointed Chamber? Is it really possible to consider this, which is a matter of cost, when retention of the Chamber as constituted is a matter of quality of advice to the nation?

[Lord McNally]

My Lords, I agree with my noble friend. One of the problems with the persistence of the noble Lord, Lord Grocott, in putting these Questions on the Order Paper, is that much of this is idle speculation by him. We will soon have the Bill and then we can have a proper debate.

[Lord Howarth of Newport]

My Lords, would not such a reduction in the number of Members of the House of Commons have larger and dangerous implications for the control of public expenditure? With the payroll vote being a yet larger proportion of its Membership, would not the freedom of the House of Commons to scrutinise the Government’s proposals for public expenditure, and its capacity to hold the Government to account for their performance over public expenditure, be enfeebled even beyond its present inadequacy?

[Lord McNally]

In responding seriously, I honestly do not think that this is a numbers game. I agree with the noble Lord that, whatever reforms are carried out at this end, the House of Commons should also sharpen up its act in holding the Executive to account.