Review of Parliamentary Standards Act 2009

Mark Harper Excerpts

Thursday 12th May 2011 Commons Chamber

[The Parliamentary Secretary, Cabinet Office (Mr Mark Harper)]

I congratulate my hon. Friend the Member for Windsor (Adam Afriyie) on securing the debate and on his revised motion, which the right hon. Member for Leeds Central (Hilary Benn) said he can support, and which the Government can also support. Setting up a Committee to carry out post-legislative reviews to see how legislation actually takes effect is something that we are always being urged to do in the House, and it is welcome. It will provide Members with the opportunity to put forward facts and the Committee with the opportunity to take evidence and then to come back to the House with its recommendations for consideration. I thank my hon. Friend for his thoughtful and measured speech, which was referred to by Members on both sides of the House.

My hon. Friend’s motion is very sensible in focusing on the important things—value for money, accountability and public confidence. It also refers to the need to ensure

“that Members are not deterred from submitting legitimate claims.”

I want him to clarify one part of his speech because I am not sure that I heard it correctly. I think he said that 92% of Members do not claim for things for which they are legitimately allowed to claim, but I would be grateful if he could confirm that. I have not seen that data published, and I would be grateful if he could provide some detail.

[Adam Afriyie]

I certainly will. This is based on the evidence that I have received and that the 1922 committee demonstrated some time ago—that is, that 92% of hon. Members are not claiming for all the categories for which they are entitled to claim. That would need to be examined; I make no judgment on it right now.

[Mr Harper]

I am grateful to my hon. Friend for clarifying that, which is very helpful.

As my hon. Friend and the right hon. Member for Leeds Central said, several things have happened since we last debated IPSA in December. At that time, IPSA had not carried out its review of the scheme, and many Members took the opportunity of that debate to put on record their specific concerns not only about the operation of the scheme but its rules. One or two Members have done that today, but in December the comments were much more focused on individual circumstances. IPSA has listened to some of those concerns. As the right hon. Gentleman said, it recognised when it set up the scheme that it did not get everything right in terms of its rules and how it operated. To be fair, it has acknowledged that and put some of those things right, particularly as regards enabling us to do our jobs properly. The Government, and all Members, are concerned about ensuring that the system helps rather than hinders.

As the right hon. Members for Oxford East (Mr Smith) and for Leeds Central said, it is important that we have an independent body that oversees the expenses system and how it operates. We must also have a transparent system. As the right hon. Member for Leeds Central said, it is the sunlight of transparency that helps to ensure that it works properly.

[Adam Afriyie]

My hon. Friend is talking about the Brandeis doctrine; Brandeis was a Supreme Court judge in the early 1900s. The review will also need to look at what subsequent academics have said about this. Sunlight is a great disinfectant, but it is conditional on the information that is provided being comparable and on it being disaggregated, so that not only grouped claims or information are published. It is also conditional on the information being standardised, and any review will need to look into those issues.

[Mr Harper]

I am grateful to my hon. Friend. This is a good opportunity to leap forward to a point I was going to make later, which was mentioned by the hon. Member for Perth and North Perthshire (Pete Wishart) when he talked about the publication of data. I know that it can be uncomfortable for hon. Members when information is published, but we are going to have to get used to it, and there is no going back.

My hon. Friend makes a good point. There is a debate to be had, and these are matters that IPSA can think about. There are ways of publishing information that make it comparable and deal with the league table problem, but also make it very matter of fact and not very interesting to the press. There is an argument that if we publish the information in real time as we go along, and do not save it up and publish it in lumps—the point made by the hon. Member for Perth and North Perthshire—it becomes normal, matter-of-fact, routine business that is not of interest to the media. I think it is fair to say that it has become much less interesting to the national media; we do not tend to see the front page stories any more. I know, however, that individual hon. Members often have to deal with local newspaper stories where their papers drill down into particular claims that, in isolation, take a fair degree of explanation but are perfectly reasonable claims for carrying out their work.

[Adam Afriyie]

I conducted a review of regional and local newspaper publications. The evidence is pretty conclusive. The bimonthly publication we looked at had about 28 million readers. We found that 97% of local newspaper stories were negative towards MPs, and 63% of the stories made unfair or misleading comparisons about MPs and their claims. A lot of this was generated by the way in which the information was being provided to the media under the current scheme. Again, that is something we will look at.

[Mr Harper]

I am grateful to my hon. Friend. This is an opportunity to acknowledge that, as other Members have said, he has done a lot of analytical work. Depending on what the House decides about who serves on the Committee, I am sure that his research will be of great help as it carries out its work.

[Mr Kevan Jones (North Durham) (Lab)]

I would add that it is not just about the local media; the BBC in the north-east has taken the approach of doing league tables rather than any analysis of the information. Even though I have tried to FOI the expenses of the journalists on the “Politics Show” in the north-east, the BBC has refused to release them, and I now have an appeal with the Information Commissioner. If this is about public money and transparency, should not other bodies such as the BBC also have their expenses published?

[Mr Harper]

The hon. Gentleman is trying to draw me into a much wider debate about public transparency, but this is not the right time for that. He will know that there are ongoing discussions between the BBC and the National Audit Office about various issues, and I am sure that they will carry on. I am not going to take his invitation to dwell on those issues today.

I want to return to the annual review that IPSA undertook. I think it is fair to say that it made some changes to the scheme and has made it better and easier for Members to operate. As my hon. Friend the Member for Windsor said, it has effectively given us more discretion about judging what things are relevant to our parliamentary duties and carrying out our responsibilities. That then raises some other questions, which is welcome. My hon. Friend the Member for Gainsborough (Mr Leigh), who chairs the liaison committee, acknowledged the progress that has been made on office costs and on travel, although he acknowledged that there was work to be done in other areas of expenses. It is worth saying that there has been progress, although I know that many Members think that there has not been enough and needs to be more.

Members referred to value for money, which is specifically mentioned in the motion. It is worth setting out a little more detail. The right hon. Member for Leeds Central referred to the NAO report. My right hon. Friend the Leader of the House has received a letter from the Comptroller and Auditor General setting out the details of that. The NAO is going to carry out a study of IPSA, and the report will be produced before the summer recess.

An interesting fact of which Members should be aware is that the NAO is going to survey all serving Members of Parliament asking about their experience of IPSA and the expenses scheme. It is moving quite swiftly on the study. It is going to send out questionnaires this coming Monday—16 May—allowing us a fortnight to respond before the Whit recess, and it has asked for Government support in encouraging Members to participate. I do not think, having listened to the debate, talked to several of my colleagues and heard what the right hon. Member for Leeds Central said about his conversations with the parliamentary Labour party, that Members will need much encouragement to send back their responses. They should take this opportunity to focus on how well the scheme is working, including value for money and ease of use, so that the NAO can take that into account.

[Helen Jones]

It is encouraging to hear that the NAO will survey Members. Will the NAO’s value-for-money audit include the cost of the vast amount of time spent by Members and their staff doing work that was previously done elsewhere?

--- Later in debate ---

[Mr Harper]

The Comptroller and Auditor General makes it clear that all the NAO’s work will be independent and evidence based. The answer to the hon. Lady’s question is that it is for Members to provide the NAO with that evidence. The NAO has a brief to look at the public sector as a whole; as its masthead says, it is “Helping the nation spend wisely”. If Members feel, as a number have said today, that there is a problem not just with the bureaucratic system, but with the time spent administering it by them and their staff, who are employed at public cost, they should take the opportunity to furnish the NAO with that information. I might be going a little beyond my remit here. I do not know how detailed the questionnaire will be. There might not be a specific question about this matter, but I suspect that there will be. If Members provide this information, the NAO will be able to take it into account. It is no good the NAO just looking at the scheme and the direct costs incurred by IPSA. If, because of the way IPSA is operating, it is putting an extra burden on our offices, which are funded by the taxpayer, the NAO should take that into account. The hon. Lady’s point is therefore very helpful, and Members should give the NAO as much information as possible, so that it can write a sensible, evidence-based report with recommendations. No doubt those recommendations will then be considered by the Public Accounts Committee, as is the usual process, and the Committee that we are setting up.

The Constitutional Reform and Governance Act 2010, which was passed in the last Parliament, amended the Parliamentary Standards Act 2009 to give IPSA a general duty to behave in a cost-effective, efficient manner, and to support MPs to carry out their work efficiently, cost-effectively and transparently. IPSA therefore has a statutory duty to do what it does transparently and independently, and cost-effectively. The NAO report will help to advise IPSA on whether it is complying with the duties it has to carry out under the law that set it up.

[Mr Leigh]

Will the Minister assure that House that when all this excellent work has been done and the Committee makes its recommendations, the Government —I know that he cannot give any absolute promises—will seek to give us a fair wind so that we can implement them?

[Mr Harper]

As with all reports from Committees of this House, the Government will look carefully at the recommendations. I do not think that my hon. Friend would expect me, given that the Committee has not even been set up, let alone started its work, to give assurances that the Government will carry out its every recommendation. The Government will of course study its recommendations. If its recommendations are about process, the scheme and how IPSA operates, they will be for IPSA to consider. Only if they are recommendations for legislative change will they be for the Government to recognise. Every Member who has spoken in this debate has confirmed that they are in favour of an independent and transparent scheme for paying our costs. Clearly, even if Members thought that there were issues, they would not immediately want the Government to rush into legislating. The right hon. Member for Leeds Central said wisely that when this House legislates on such matters in haste, it often comes to repent it.

The Government will look carefully at the considerations that the Committee makes, and I hope that IPSA will look carefully at them. If the review is carried out in that spirit, I think that it will be very productive.

[Mr Andrew Smith]

I want to underline the importance of the point that the Minister has just made. Will he assure us that the Government’s response will scrupulously and absolutely uphold the independence of IPSA?

[Mr Harper]

Yes; I have said that several times and it is important. Although this House has many new Members, it is important that we remember why we got to this position. We have to ensure that we move things forward, and focus on independence and transparency. We have had debates recently on our pay, and the consideration of our pay will be moved across to IPSA in the not-too-distant future. Its independence is important so that people have confidence. The Committee, when it is set up, will have to remember that the recommendations it makes about the scheme and the operation of the scheme will be made to IPSA.

[Mr Charles Walker]

Does the Minister accept that when we legislate in haste, as we did in 2009, such legislation sometimes has to be revisited and amended with the benefit of hindsight?

[Mr Harper]

I made a distinction in my remarks. Clearly, if the Committee, or indeed the National Audit Office, makes recommendations about value for money and cost-effectiveness in the way IPSA operates, IPSA will pay attention to them, as with all its recommendations. It may be that the Committee makes recommendations about legislative change. However, we do not want to go back to a system in which the Government—heaven forbid—or the House start to micro-manage the details of the scheme. We have an independent system with transparency, and it is important that we stick with that. The Committee needs to bear that in mind. There will be two important audiences for what the Committee recommends. In the same way that we should not legislate in haste, we should not re-legislate in haste and change things further. The Committee needs to bear that in mind when it considers this matter, and should not immediately leap to the conclusion that we have to change the entire structure of the system.

[Mr Leigh]

There is a third audience: the taxpayer. Ultimately, nobody is independent of the House of Commons, because the House of Commons is not for us, but for the people—we represent the people and the taxpayer. If serious recommendations are made and IPSA ignores them, the House of Commons has a right to vote on its estimates and to reduce the amount it spends on administration.

--- Later in debate ---

[Mr Harper]

My hon. Friend makes the position very clear. A structure has been set up with the Speaker’s Committee for the Independent Parliamentary Standards Authority, which heard evidence from IPSA this week and questioned it about its estimate. More work is being done to deal with the hon. Gentleman’s point about cost-effectiveness and IPSA’s budget to ensure that at this difficult time for public expenditure, IPSA is as efficient and cost-effective as possible. However, it would be a mistake if we immediately leapt away from an independent, transparent system, which is what the Government, the Opposition, and every Member who has spoken in this debate supports. We cannot have an independent system and simultaneously give it instructions on how to do its job.

The Government look forward to the Committee’s work and give a commitment that we will look at its recommendations with great care. I will obviously not make any commitments about what we will do until we have seen the report. The Committee should do a thorough job and we look forward to its report. We also look forward to seeing what the NAO has to say. I think that that is a sensible way forward. On that basis, the Government are very relaxed about the motion in the name of my hon. Friend the Member for Windsor.