Foreign Lobbying

Martin Docherty-Hughes Excerpts

Wednesday 25th May 2022 Westminster Hall

[Bob Seely]

Obtuse and obscure.

Together with lawyers, accountants, estate agents, public relations professionals and other enablers, lobbyists have formed a buffer around these people. I know that the case with Russia is clearly changing very dramatically—it has been rather forced on us by conflict—but China is another important case that concerns me. I say that as someone who knows that the Government are moving in the right direction, and who is incredibly grateful for the work that the Secretary of State for Defence and the Foreign Secretary have done in this area.

It concerns me greatly that we have not yet made the link between China and Russia. The west has economic dependency on both, be it through trade or energy. Both those countries have dictators for life, and we know that power corrupts and that absolute power corrupts absolutely, so do we really think that President Xi will turn out to be better than President Putin? I would be sceptical. Both covet territory outside their control, both have aggressively rearmed and, perhaps most importantly, both propagandise their people against us and are shaping their people for war in the information and narrative space. China is more sophisticated and richer, and it arguably treats some of its people, especially its Muslim people, worse. It is a rising power, whereas Russia is a declining power, but there are too many similarities between them to claim that China is not Russia. It is a more sophisticated version and, as people such as Clive Hamilton argue, many of its covert activities are just more sophisticated versions of the same thing.

Like the Kremlin, the Chinese Communist party uses state, non-state and quasi-state actors through the United Front Work Department and “cultural and ‘friendship’ associations”. It is alleged to spend some $10 billion a year on external propaganda efforts. The Chinese state also makes use—perhaps more than Russia does—of quasi-state entities, and Huawei is a case in point. It has provided trips, sports tickets and donations to all-party parliamentary groups, and has employed a former head of GCHQ and a former UK chief information officer. It has also used several lobbying firms, and has employed a former head of Ofcom and even a former head of the Foreign Office.

In September 2019, Huawei gave £150,000 to Jesus College, Cambridge, which later produced a White Paper that was favourable to Huawei’s inclusion in the UK’s 5G network. It has done many other things; what I have mentioned is just the tip of the iceberg. What concerns me is that, while this was happening, Ministers whom I respect very much were arguing that Huawei was a private entity—a private firm. I do not expect Ministers to be geniuses, but that situation was uncomfortable.

[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

On the point about higher education selling its soul to the Chinese Communist party, surely it is not just the Government’s role to regulate their engagement with foreign actors. It is also for other entities in the country, such as higher education.

[Bob Seely]

The hon. Member makes a very important and valuable point. Cambridge University’s relationship with China is very unhealthy, and Professor Stephen Toope’s leadership of Cambridge has been pretty depressing and questionable. He is not here to defend himself, so I will be careful what I say, but I note that the more woke Cambridge has become, the more it seems to have sold itself to the Chinese state, which I do not think is necessarily a defence of the values that it should be standing up for.

I think that higher education would say it needs clear guidance from the Government. On the foreign agent registration process, it would be excellent if the Government had something to say on the need for universities to register and to explain why they are taking on some students, because we have had Chinese military students coming to study PhDs in sensitive dual-use areas. We need to question that to ensure that we are doing the right thing and that we are not aiding countries to develop technologies that will be used against us.

I will wrap up in the next five minutes, because I am aware that I have taken a long time—my apologies.

We need to improve lobbying laws. I suggest to the Government—I will write separately, but the Minister has the study I produced for them two years ago—five major reforms to tackle the issue of foreign lobbying in the UK, which I hope would create better law and a better National Security Bill when it comes up.

First, we must create laws to compel individuals and entities that lobby in the UK on behalf of hostile states and their proxies to record their activities on a national register. I hope the Minister will take this on board in the constructive way that it is intended. Consultant lobbyists are important, but they are only one part of the problem, as many of us know. Hostile or potentially adversarial states make use of non-lobbyist individuals and entities—cultural entities, educational entities, public relations consultants, research firms, reputation managers, law firms and banks. If someone does work that impacts on policymaking or the political world, they need to be registered. In this day and age we need a broad, not narrow, understanding of what that means for the public good, and for the honesty, integrity and transparency of the political system, which we all want to see improved and strengthened. Nobody wants to sleazify our political, economic or legal system, so we need a belt-and-braces approach, while understanding that the demands we put on the New Zealand tourism board would probably be very different from those we place on a foreign entity, such as Huawei or the Confucius institutes. I note that the normally rather left-wing country, Sweden, has banned Confucius institutes. Should we?

Secondly, we should create laws to force foreign Governments and their proxies to disclose when they spend money on political activities in the UK. Thirdly, we should create laws to bar foreign Governments and their proxies from providing political, financial and other support during election periods. As at least two hon. Members have said, there is a question mark about donations, and I know from previous debates that people with dual nationality are an issue. That debate is obviously not going to go away.

Fourthly, we should create laws to compel foreign Governments and their proxies to label and disclose materials and campaigns undertaken in the UK, including online, not only during election periods but more generally outside election periods, so that we know where advertising is coming from. People should be able to see those messages, which are perfectly legal, but they should understand their provenance. Fifthly, I would make those laws enforceable by significant criminal penalty, so that people who break the law and do not uphold high standards have an expectation that the punishment will be a bit more than a slap on the wrist.

There is a further series of options; they include the following. Should we have a one-tier or one-size-fits-all regime? Should we have a weak, moderate or strong regime? Should we have a two-tier system that either requires nothing of some foreign entities or has a low bar for the sort of information that is required? We have a laissez-faire approach, which is not entirely unhealthy; it is good for our economy. I recognise that we want people to be free to set up in business, and set up what they are doing in this country. My suggestions are not about creating layers of bureaucracy for the Swedish food producers association or the New Zealand tourism board, but every time Huawei hires a lobbyist, we should know. Every time Huawei approaches a Member of the House of Lords or the House of Commons, we should know. If people want to do work for these people, we should know.

People complain about MPs, but I do not think MPs are necessarily the biggest problem—I am not trying to do a mea culpa for us all. The biggest problem is the law firms and people with significant legal and financial power, who do not exist in as transparent a world as we do. Although clearly some of the most outrageous and obvious—how should one say it?—lapses of judgment are often seen in the political world, real power is also influenced by civil servants and Spads. It used to be influenced by the European Commission, though clearly no more in this country, and it is also influenced by significant legal and finance firms. If they are impacting, via lobbying, the business of politics and policy in this country, they should be covered.

I will give one example: Huawei. There is a case to argue that Huawei did not do that much direct lobbying for much of its existence in this country, but that it worked through BT, which effectively became the Huawei spokesman in this country and Huawei’s chief defender. BT may say, “It is rather more complicated than that,” but Huawei was, arguably, effectively influencing UK policy through UK firms that were in business with and economically aligned to Huawei. I think that became a significant problem in the last few years. I am delighted to have played a modest role in the campaign to ensure that Huawei was not part of the 5G network, which was absolutely the right decision. I thank the Government for listening to me and other Members on that issue, and indeed the US Administration as well.

To sum up—I thank hon. Members for giving me a little more time than I said I would take; my apologies—we need to substantially improve lobbying laws, because the laws we have are genuinely not fit for purpose. Do we really want to have these endless lobbying scandals in our legal and political culture, which come around like a carousel every few months, every couple of years? We have the chance to do something better; I very much hope that the National Security Bill will tighten that up. The Minister has been generous enough to say that she is sympathetic towards these arguments, and I thank her.

Within the domestic lobbying framework, there is a specific issue with foreign lobbying. As I said at the beginning, it is important to understand that, whether we think it and see it or not, other states see this action as part of a hybrid conflict model. It is almost the first line of attack—to try to shape our opinions, to try to separate us from the US and to try to get a narrative and message into our economic, legal, political and informational debates in this country. We want a free society, but we need to understand that we have to protect that free society. At the very least, people need to know where some of the messages and campaigns come from.

In this era, there is a battle between open and closed societies. We have seen that most recently from the Ukraine war, but we might see it in the future from China in a Taiwan war, or a confrontation with the wider world. We need to do what we can to defend the open society. The way we best do that is by ensuring transparency, honesty and integrity in our political system. Ensuring that we have strong and fair laws over lobbying and foreign lobbying is one of the critical ways we can do that.

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[Martin Docherty-Hughes (West Dunbartonshire) (SNP)]

It is good to see you in the Chair, Dame Angela. As I sum up on behalf of my party, I cannot help but feel that this is a very British debate. I am unsure whether anyone here is particularly opposed to better rules for those lobbying on behalf of foreign Governments. The evidence—which the hon. Member for Rhondda (Chris Bryant) has alluded to on many occasions, not only in Westminster Hall but in the main Chamber—that it has damaged the fabric of our society, and of the national security risk, has been clear.

I fully expect the Minister to rise to their feet, acknowledge the issue and the pertinence of the rhetoric deployed by all of us here today, declare that something must be done, and, if they will forgive me, then do absolutely nothing about it. I would be delighted to be proven wrong, but this type of action has been trailed for quite some time without any evidence that we are any closer to either the stricter regulation of lobbying or any sort of foreign agent registration.

Now, that is not to denigrate the quality of any of the contributions made here today—from the hon. Member for Strangford (Jim Shannon), the hon. Member for Rhondda and, indeed, the hon. Member for Isle of Wight (Bob Seely). We did at least agree, I think, on the issues of higher education across these islands. I would say to the higher education sector that it must not only look in the mirror and reflect on what it sees in its relationship with the Communist party of China, but change what it sees.

On my party’s position, our ask is simple: the UK Government must follow the example set by ourcolleagues in the Scottish Government and create a fit-for-purpose lobbying register to improve transparency and accountability. The Lobbying (Scotland) Act 2016 came into full operation in 2018 and was designed to improve transparency of face-to-face lobbying contact between organisations and Members of the Scottish Parliament, members of the Scottish Government—including Scottish Law Officers and junior Scottish Ministers—special advisers, and the permanent secretary of the Scottish Government. Transparency International has called on the UK Government to replicate that and set up a comprehensive lobbying register for the United Kingdom Parliament that includes relevant information, and for the Advisory Committee on Business Appointments be replaced by a statutory body with sufficient authority and resources to regulate all that goes on here.

Members who pay attention to such things will know that my parliamentary group wrote to the Government’s anti-corruption tsar, the hon. Member for Weston-super-Mare (John Penrose), asking him to rapidly reform lobbying rules following the second invasion of Ukraine by the Russian Federation. When that secondary invasion began in February, as some Members have already intimated, we had a dismal roll-call—I will not mention any by name, Dame Angela—of the assorted MPs, Lords, former MPs, former civil servants, and the like, who had sold their expertise to firms linked to the Russian state. While it was certainly the most dismal example, anyone who had been paying attention—quite a few of them are in this room right now—had been warning about the dangers of allowing that sort of activity to go on unchecked.

I think the hon. Member for Aberavon (Stephen Kinnock) mentioned the Russia report, but it is vital that we do not get somehow embarrassed about bringing it up. The findings of this report, from a cross-party Committee with a Conservative majority, were clear: the arrival of Russian money resulted in a growth industry of enablers—individuals and organisations who manage and lobby for the Russian elite in the United Kingdom. Yet nothing—absolutely hee-haw, as I say in my part of the world—was done to implement it.

The biggest fear, especially when we are about to listen to a Minister smother—forgive me—an attempt at a proper legal framework for lobbyists with kindness, is that if we are unable to take full responsibility for those who lobby on behalf of a hostile regime such as the Russian Federation, then I wonder, really, who is going to take responsibility when this sort of thing happens again and again. Because we not just talking about Russia, as many here have alluded to today; plenty of people in debate have mentioned “communist” China. The resources and the global reach of Chinese Communist party-linked companies simply dwarf that of those from the Russian Federation. It might not be the most agreeable thing to say, but I think that one of them happens to be the Asian Infrastructure Investment Bank, which the UK led in setting up. While China is not necessarily a hostile state—I agree with my friend the hon. Member for Strangford—we certainly know that it is a hostile, anti-democratic economic and political competitor.

My biggest worry about those who work on behalf of states that are also nominally neutral, which I think the hon. Member for Isle of Wight alluded to—

[Bob Seely]

Briefly, the hon. Member is right to point to a better definition. When I was talking about “hostile” states, probably I should have changed that to “hostile, adversarial and potentially highly competitive”, which I think is probably a better definition.

[Martin Docherty-Hughes]

I will not disagree with the hon. Member on that, but I go back to the point I was about to make about states that are nominally neutral or even allied to the UK and how we hold them to account. I am thinking particularly about the Gulf states—nominally allies, yet ones whose Governments have shown themselves capable and willing to act in the most heinous ways on the territory of ostensible allies.

The jamboree for the real estate, legal and general enablers of Russian money might have ended, but let us be in no doubt: it is going to keep rolling on for all the rest of them, allies or not. The increasing gentrification and sterility of much of central London will become emblematic of the hollowing out of UK institutions on behalf of this global capital.

If that sounds bleak, that is because it is. But let me end with one final appeal to the Minister. It would give even this inveterate Scottish nationalist great joy to see our devolved Administrations lead the UK in implementing a proper system of lobbying regulation, which I alluded to earlier in my speech; but I am afraid, Dame Angela, that I will not be holding my breath.

--- Later in debate ---

[The Parliamentary Secretary, Cabinet Office (Mrs Heather Wheeler)]

It is a pleasure to serve under your chairmanship, Dame Angela, I think for the first time, and I thank you for the timely opportunity to debate this important topic. I thank in particular my hon. Friend the Member for Isle of Wight (Bob Seely), who introduced the debate, and express my gratitude to the good number of Members who are present today for their active participation in the debate.

As several Members have noted, the UK is a vibrant, international, open and welcoming country with which to do business. The Conservative Government will continue to welcome foreign investment and business to this country. However, in order to protect that openness and vibrancy, it is critical that we have robust measures to provide transparency on legitimate lobbying and have powerful tools to hand to deter illicit or harmful activity when that arises. To ensure transparency of legitimate lobbying activity, the Government regularly publish details of ministerial meetings with third parties, so everyone can see who Ministers meet with, and about what.

On illicit activity, let me first be clear that we have robust structures in place to identify foreign interference and, where necessary, take proportionate action to mitigate the threat. The recent Christine Lee case is an example of that.

We are going further. The Government have announced their plans to strengthen powers to tackle illicit finance, reduce economic crime and help businesses to grow. As noted in the Queen’s Speech, the Government will bring forward the economic crime and corporate transparency Bill, which will include measures to reform the role of Companies House and improve transparency over UK companies.

[Martin Docherty-Hughes]

Will the Minister confirm whether there will be an additional commitment from the Government to reform Scottish limited partnerships, which are a valuable conduit for dark money coming into the UK to undermine our democratic process?

--- Later in debate ---

[Mrs Wheeler]

The hon. Gentleman is absolutely right. We must work in close conjunction with the devolved Assemblies on anything that happens in the UK Parliament.

[Martin Docherty-Hughes]

I hope that is reciprocated, and that things come from the devolved Administrations to this place. The Scottish Government already have the Lobbying (Scotland) Act 2016, which was implemented in 2018. I hope the Minister will listen to them on how that has impacted lobbying north of the border.

[Mrs Wheeler]

Indeed. That is a very fair point, and I am sure the Home Office will have heard it. To conclude—