Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill

Paul Flynn Excerpts

Tuesday 3rd September 2013 Commons Chamber

[Ms Angela Eagle (Wallasey) (Lab)]

I beg to move an amendment, to leave out from “That” to the end of the Question and add:

“this House affirms its belief in the need for greater transparency in the lobbying industry and in British politics, and considers that there should be a universal register of all professional lobbyists backed by a code of conduct and sanctions, clear rules on third party campaigning, and real reform to get the big money out of politics; but declines to give a Second Reading to the Transparency of Lobbying, Third Party Campaigning and Trade Union Administration Bill because the proposals on lobbying cover only a tiny minority of the industry and will make lobbying less transparent, and the proposals on third party campaigning amount to a gag on charities and campaigners who have a democratic right to participate in important debates in the run up to elections; and strongly believes that the publication of such a Bill should have been preceded by a full process of pre-legislative scrutiny and consultation with affected parties.

This is one of the worst Bills that I have seen any Government produce in a very long time. The last Bill this bad might even have been the Health and Social Care Act 2012, and the Leader of the House of Commons had his fingerprints all over that one, too. To be fair to him, he has found himself in a very difficult place. He has been landed with this risible and misconceived Bill and told to ram it through the Commons with unseemly haste in time for the next election.

I am told that it is not a Bill with many champions in government, where a history of previous employment in the lobbying industry is common. Nothing wrong with that, we might say, but it has created a notable reluctance on the part of all sorts of Ministers to touch the Bill with a bargepole, and this afternoon we all understand why. They have looked at the ceiling; they have looked at the floor; they have muttered among themselves in the hope that they would not be chosen to pilot the Bill through the House. The Leader of the House has drawn the short straw, along with the ever-willing Parliamentary Secretary, Cabinet Office, the hon. Member for Norwich North (Miss Smith).

This is Bill is hurried, badly drafted and an agglomeration of the inadequate, the sinister and the partisan. From a Government who solemnly promised that they would fix our broken politics, the Bill will do the complete opposite.

[Paul Flynn (Newport West) (Lab)]

Following the Government’s historic humiliation last Thursday, would it be beneficial to the House, the Government and the country if they spent the three weeks of recess studying the virtue of humility?

[Ms Eagle]

As always, my hon. Friend has good advice for the Conservative party.

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[John Thurso]

I am sorry to disappoint the hon. Gentleman, but I will not do that because it would not introduce pre-legislative scrutiny. There are three days to debate the Bill in Committee. There are some important big issues, but not a huge number of them, so we will probably have enough time to debate them in the days that are available.

[Paul Flynn (Newport West) (Lab)]

Will the hon. Gentleman give way?

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[John McDonnell (Hayes and Harlington) (Lab)]

To be frank, I find this whole debate deeply worrying and depressing. We must remind ourselves that only a few years ago the House was brought into contempt in the eyes of the general public because of the expenses scandal. Even those of us who were completely clean were cast in the same light. For most of us, being elected was one of the proudest moments of our lives, but after the expenses scandal we almost had to apologise for being an MP. Then we legislated, we had an election, large numbers of new people came into the House, and we thought we had put the issue behind us. However, the Prime Minister was right to say that the next scandal would be about lobbying, which is why I welcomed the introduction of this Bill.

It was most depressing and angry-making—I was furious—when I saw the films of Members of Parliament offering their services to lobbyists for money, so when the Government said they were going to introduce legislation, I did not mind so much about the speed as I wanted it done quickly but effectively. It is, however, acutely depressing that this Bill does nothing of the sort. By excluding the vast proportion of lobbyists—the in-house lobbyists—we are making ourselves a laughing stock.

Let me follow on from what the hon. Member for St Albans (Mrs Main) said. I have experience of in-house lobbyists. In my constituency, the third runway campaign, BAA, did not use external lobbyists; it used generally in-house lobbyists who not only lobbied but had passes to the Department for Transport. They were not bothered about meeting Ministers; they wanted to meet junior civil servants who wrote the projections of growth in passenger traffic and so on. That is how effective they were. When he was the Minister responsible for aviation, Chris Mullin asked how many BAA staff were in the Department for Transport on a daily basis. On the day he left, he was told that dozens of people had passes to come to the Department to influence people. I think that is corruption in any other terms, and the sort of thing we want to tackle.

The hon. Member for St Albans gave a brilliant speech and some examples of what goes on. Bizarrely, however, the Bill does not tackle that level of corruption but gags the very people from whom we want to hear. It even gags them during the general election period when they can be most influential. I find the proposed legislation not only contradictory but shameful, and it is important to listen to what my hon. Friend the Member for Nottingham North (Mr Allen) said. We should stand back for the next period, listen and take evidence from organisations and individuals with experience in this field, and come to some agreement about the way forward.

If we cannot reach cross-party agreement on this issue, the Bill will not stand up in the long term. Once again the House will be brought into disrepute because we will be on the side of protecting lobbyists while trying to gag those who, as representatives of civil society, want their voice properly heard. I urge the Government to think again. Let us bring the parties together outside this Chamber and have another discussion about a proper way forward and a realistic timetable.

We can still meet a timetable that enacts legislation before the next general election, but we need the next couple of months for careful consideration and the proper involvement of all those who will be affected. The only people who seem to be involved at the moment are professional lobbying associations, not those I think actually deserve to be heard. If the Bill is passed in its current form, it will go down as a Bill drafted by a lobbyist for certain types of lobbyists, and they will be those lobbyists who try to maximise their profit.

[Paul Flynn]

I am enjoying my hon. Friend’s speech and am grateful to him for giving way. He expresses the anger felt on both sides of the House about the potentially corrupting activity of lobbyists over many years. Can he think of any demand from anyone who believes that the next scandal in the country will involve Oxfam, the British Legion and Save the Children?

[John McDonnell]

My hon. Friend makes a valid point. The Leader of the House would win the respect of the House if he took time to bring those organisations in to hear from them. He argues that gagging is not within the legislation. The impact of the legislation per se will not gag those organisations, but self-gagging will take place, because, as other hon. Members have said, people will not want to risk their charity’s or organisation’s funds on lawyers to advise them or to defend them when things go wrong. I therefore ask the Government to stand back, pause and consult, and introduce adequate legislation on which we can reach consensus. I am sure we can do it.

Part 3 of the Bill is about trade unions. The reality is that, since Mrs Thatcher’s day, the Conservatives have wanted to introduce legislation that bans trade unions, but have realised they could not get it through the House. They have therefore successively introduced legislation to ensure that they impede the activities of trade unions as best they can. That is why we have had extensive discussions on the technicalities of balloting, registrations and so on.

The measure is yet another way in which the Conservatives are trying to encumber trade unions with unnecessary bureaucracy to impede them in representing their members. Unions already have membership lists, which they must regularly update, because if they ballot for industrial action or on consultations, they must ensure the list are accurate—otherwise, they will be in court yet again, because employers can take legal action against them to prevent industrial action or any other form of action before strike action.

The legislation is therefore unnecessary, but I find it offensive because it applies only to trade unions. Why just trade unions? The Leader of the House’s argument is that trade unions influence public policy, but so does the CBI, the Institute of Directors and a large number of organisations that are not encompassed by the legislation. That betrays the real agenda: the measure is an attack on trade unions—yet again—by the Government.

I hope the Government see sense on that measure. All they will do is introduce another mechanism that sours the industrial relations climate in this country—another opportunity for litigation, meaning more time spent in the courts. That does not enhance the relationship between workers and employers, or the development of industrial, manufacturing or other economic policy by bringing people together; it simply increases antagonism. I believe it will therefore be counter-productive. I urge the Government to think again on the measure. It is petty, and they are introducing it now simply for short-term party advantage following debates before the summer recess. The measure will do nothing for the Government’s standing or for the relationship between trade unions and employers.

Finally, this is no way to legislate. I fully agree with much of what has been said by hon. Members on both sides of the House on that. This is no way to introduce a major constitutional reform. At the end of the day, if it is forced through by the Government, we will be back to amend it. However, while it is in place, it will undermine democratic engagement in this country across the piece.

[Jacob Rees-Mogg (North East Somerset) (Con)]

It is a pleasure to follow the hon. Member for Hayes and Harlington (John McDonnell), who is always interesting, although I am afraid I fundamentally disagree with him on this occasion.

In fact, this is an excellent, measured and balanced Bill. It is the right Bill to introduce at this time. Every aspect of it makes me admire the Lord Privy Seal more than I have ever done before. He is right, in part 1, to have come to this approach for regulating lobbyists, because lobbying is an important part of our constitutional settlement. It is a right of individuals to come here to lobby us. Indeed, the petitioning of the Crown is a specific right in the Bill of Rights. It is why Parliament was assembled in the first place: people were able to petition for redress of grievance. Anything done to regulate or control lobbying has to be done with exceptional care and thoughtfulness, and to be as minimalist as possible while maintaining the proprieties we seek to achieve.

[Paul Flynn]

One of the most reliable and enthusiastic lobbyists in the country has had 53 meetings with Ministers in this Parliament, including 35 meetings with members of the Cabinet, to lobby for some sensible causes, some eccentric causes and some barmy causes. Should we not put this most influential lobbyist, Prince Charles, into the orbit of the Bill?

[Jacob Rees-Mogg]

We are so fortunate to have a Prince of Wales who is able to train properly for the job he will have as our sovereign in due course, and to have access to Ministers. Of course, that should be confidential. Compared to some princes of Wales we have had in the past, how fortunate—how blessed—is this nation to have one who does his duty so diligently? I am glad that he does, and I think we can admire His Royal Highness for that—almost as much as we admire the Lord Privy Seal.

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[Natascha Engel]

I do not see the relevance of 38 Degrees not turning up to a briefing, which would almost certainly have been largely pointless as the Bill would gag the activities that 38 Degrees legitimately wants to undertake in the run-up to a general election.

[Paul Flynn]

Does my hon. Friend think that there might well be a Machiavellian motive in the Government drafting the Bill as they have, which has meant that the great majority of the speeches today have been about the non-existent excesses of charities or trade unions, and that we have neglected the fact that the Bill woefully fails to address the terrible excesses of lobbyists?

[Natascha Engel]

That is exactly right and it is why the debate today has been a missed opportunity. We would all like to do something quickly about curbing the excesses of the wrong kind of lobbying, but the Bill captures the right sort of lobbying—exactly the sort that we as politicians should encourage. We want people to influence the way that we make decisions because it is their democratic right to do so, and those are not the sort of people that we want to criminalise.

It is on trade unions that I have the greatest problems. In the run-up to the 2005 general election I worked as the trade union liaison officer for the Labour party, and straight after the general election I helped to co-ordinate the last round of political fund ballots, so I know from personal experience just how heavily regulated trade union political activity and financial matters are. They are extremely heavily regulated. Membership records are up to date. Trade unions must have up-to-date membership records; otherwise they would be cutting down their own income. When they ballot members for strike action, they need to know who those members are and where they live, and when they want them to participate in internal elections, it is in their own interest that their membership records are up to date. They are also kept up to date by law.

Trade unions are democratic and accountable institutions. The Leader of the House implied that trade unions are somehow unaccountable institutions. That is absolutely not so. Any trade union member has the right to opt out of paying into a political fund. Members may choose not to pay the political levy. Every 10 years they are balloted about whether they want a political fund in their trade union. Also, in those ballots every 10 years—we are going into the fourth one now—more than 90% of members who vote are in favour of keeping their political fund. These are massive figures, which we as political parties can only dream of.

It is important to remember that freedom of affiliation is a fundamental pillar of our democracy. Before we rush into changing the way that these very important institutions work in society, we should reflect more carefully on what the perfectly foreseeable consequences of such legislation could be. The Bill is badly drafted. I take the point made by my hon. Friend the Member for Newport West (Paul Flynn) that it may be a deliberate attempt to do something else.