Paid Directorships and Consultancies (MPs)

Paul Beresford Excerpts

Wednesday 17th July 2013 Commons Chamber

[Jon Trickett]

My hon. Friend makes a powerful point. If we believe that we need to connect, then the choice of jobs that some MPs take is intriguing. I will come on to that point in a moment or two, because I have some thoughts on it. Having a more diverse set of MPs would be a better way of connecting the Commons to the world than simply saying that we should all take second, third, fourth or even fifth jobs.

I have spoken to Labour MPs who were involved in business activities before being elected and who remain closely interested in the corporate world in which they worked, but who, shortly after being elected, voluntarily ceased to take remuneration because they believed that being an MP was a full-time commitment. I have also spoken to many Labour candidates for the next election—a new generation of Labour MPs, I hope—and I have not yet met one who believes that being an MP should be anything other than a full-time commitment. As my hon. Friend the Member for Warrington North (Helen Jones) said, when hon. Members say that having a second job somehow connects them to the outside world, what they generally mean—I am not talking about everyone—is a top, well-paid job. Not a single MP has recorded in the Register of Members’ Financial Interests a second job as a manual worker, a hospital porter, a cleaner or a call centre worker.

Today’s motion deals with remunerated directorships and consultancies. Beyond those activities, the motion talks about regulating other sources of income. My right hon. Friend the Member for Doncaster North has announced that we are considering a cap on other forms of outside income, such as earnings from journalism or media appearances, that would apply to all parties. An hon. Member might belong to a profession—normally we talk about lawyers, doctors or perhaps dentists—and need to retain their professional qualifications, but I remind the House that a gas fitter also needs to do so many hours a year to retain his CORGI certificate and an electrician needs to keep in touch with the regulations of the Institute of Electrical and Electronics Engineers. Nothing we are proposing would prevent such a thing.

[Sir Paul Beresford (Mole Valley) (Con)]

I am interested in the hon. Gentleman’s exception. I ought to be a gas fitter; I would be better off financially than I am in my current profession. He seems fixated on the paid part. Many Members have jobs on boards and organisations that are unpaid but which occupy the same amount of time and effort as those that are paid. Is his problem with the paid part?

[Jon Trickett]

I think the hon. Gentleman has been persuaded by my argument and might decide to join us in the Division Lobby. I hope others do, too, because, on this question of fiduciary duty, if an MP is remunerated, sometimes very substantially, it will create the perception that they might be tempted to calculate the impact of a particular proposal on that income before deciding how to vote. I do not suggest that any MP has ever done such a thing, but in the public mind, that is a widespread view. If we cannot agree this afternoon, Government Members should at least reflect on that.

MPs’ other activities, including remunerated activities, can be taken into account in any new rules we might agree. For the vast majority of MPs, our proposals should be very simple and make no real changes to how they go about their work. Without robust regulation, however, the perception will continue that politics works for a tiny closed circle of people at the top of our society, but not for the millions of hard-working people who play by the rules yet find it increasingly hard to get by, and that brings me to the kernel of my argument. Millions of people play by the rules, but feel that they are getting a really rough deal, while also believing that there is a different set of rules for others, particularly those at the top. We politicians must take account of that public mood. It is time we stepped up to the mark. Precisely because it is we who set the rules, the rules have to apply to us above all.