Parliamentary Standards Act 2009

Debate between Nick Raynsford and Peter Bottomley

Thursday 15th December 2011 Commons Chamber

[Mr Raynsford]

I assure my hon. Friend that I do not make a profit.

I thank the hon. Member for Windsor (Adam Afriyie) not only for his introductory remarks, which have given a good and fair outline of the Committee’s report, but for all his work, not just as Chair of the Committee but prior to its establishment, in ensuring that this important issue is looked at in a clear and dispassionate way. I believe that, under his chairmanship, the Committee achieved that objective. It looked carefully, rigorously and dispassionately at the evidence and has come forward with recommendations that I believe are sound and sensible and should be taken up.

However, a few key messages need emphasising. The first is that, contrary to what has been suggested by some commentators, who have rushed into print to condemn the report, the Committee was adamant—no pun intended—in its support for the retention of independent regulation of MPs’ expenses. As the surveys conducted by the National Audit Office earlier this year and the Committee itself more recently have demonstrated, there is a very wide degree of support among MPs generally for the principle of independent regulation. Some 77% of MPs who responded to the latest survey agreed that independent regulation was important for restoring public confidence.

Having said that, the way in which the independent regulator has operated the system since May 2010 has been fraught with problems. Those problems provided a huge amount of evidence to the Committee in the course of its considerations. They are all documented in the report and its annexe. The process for making claims, considering them and paying expenses has proved slow and cumbersome. Many MPs have been left substantially out of pocket because of the time lag between expenditure and reimbursement. The system is far from cost-effective. As the hon. Member for Colchester (Bob Russell) highlighted, the NAO concluded last summer that 38% of claims at that time involved processing costs higher than the amount being claimed.

The system also imposes heavy burdens on MPs’ staff, thus diverting them away from their primary responsibility of looking after the interests of constituents. It also, of course, imposes burdens on MPs themselves. There is a great deal of evidence that MPs are not able to perform other functions because of the time that they have to spend on cumbersome bureaucratic processes. There is also evidence that MPs are deterred from making claims because of time-consuming and tortuous processes and the lack of clear advice from IPSA on what claims may be appropriate. There is also the fear of being subject to media and public criticism, either for claiming too much, or—paradoxically—for claiming too little; we all know of examples of minor items that Members feel would be held up to ridicule if a claim were seen to have been made for them.

Both the NAO report last summer and the Committee’s report, published now, demonstrate a very high level of dissatisfaction on the part of MPs about the working of the system as currently operated—not, I stress, about the concept of independent regulation, but about the system as it is currently operating.

[Sir Peter Bottomley]

On dissatisfaction, I should say that the public interest is illustrated in paragraph 80, page 27, which points out that the cost of IPSA is £6.4 million. If we allowed £400,000 for processing payroll, that would leave costs of £6 million for other expenses of £19.5 million. I cannot believe that the House would allow that to happen in any other part of the public sector.

[Mr Raynsford]

I was going to come to this point later, but I entirely concur with the hon. Gentleman's view that the system is cumbersome and slow, and is not cost-effective. It is costing the country a great deal more than is necessary for a safe, rigorous and transparent system for overseeing MPs’ expenses claims.