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

Paul Flynn Excerpts

Wednesday 11th September 2013 Commons Chamber

[Ian Murray]

It is a great pleasure to get to part 3 under your chairmanship, Ms Primarolo. I shall speak to clause stand part as well as to all the amendments in the group. It is totally inadequate that we are discussing part 3 of this hotch-potch of a Bill without having seen the impact assessment for part 3 or any results from the curtailed consultation that was put in place at the start of the process.

It is worth putting the amendments into context. The past three days and the hundreds of e-mails that all Members have received from their constituents show how much of a dog’s breakfast the Bill is. It is in good company, following the hotch-potch of the Enterprise and Regulatory Reform Bill and the total shambles that the House witnessed during the passage of the Growth and Infrastructure Bill. Part 3 of the Bill before us provides wide-ranging new powers to the certification officer on trade union membership lists, but no one, including officials of the Department for Business, Innovation and Skills, the discussion paper, the explanatory notes, the trade unions and, I bet, even the Minister can tell the Committee what problem the Bill is trying to resolve.

The TUC stated in its evidence to the Political and Constitutional Reform Committee:

“As with part two we are unable to discern the problem that this part of the Bill is meant to remedy.”

Nigel Stanley from the TUC went on to say:

“We have asked BIS, the certification officer and ACAS through freedom of information requests whether they have received or made representations that we need to amend current powers to regulate union membership . . . We cannot find any demand for part 3.”

The only justification for part 3 has been the publicly stated view that it came out of a high-level meeting between the Prime Minister and the Deputy Prime Minister. What a contribution and combination that is. I wonder whether Lynton Crosby was in the room at the time.

Without any rationale for the Bill coming from the Government, perhaps we have to look for our own rationale. The reason given for the Bill by the Department for Business, Innovation and Skills in its discussion paper is the potential for trade union activity to affect people’s daily lives. It says:

“The general public should be confident that voting papers and other communications are reaching union members so that they have the opportunity to participate”.

[Paul Flynn (Newport West) (Lab)]

My hon. Friend is aware, as we all are, of the clamour for at least 20 years for the reform of lobbying practices. Can he think of any demand for part 3? Is it not sensible to judge that this is merely an afterthought—a spiteful swipe at the trade union movement—in order to distract from the fact that the Bill does not address 95% of commercial corporate lobbyists?

[Ian Murray]

My hon. Friend is right. Parts 1 and 2 have been shown over the past few days to be utterly deficient. There is no evidence, no drive, no remedy to be pursued, no problem to be resolved that would justify part 3. There is legislation in place, which I shall come on to later, which shows that membership lists from trade unions are heavily regulated already. Part 3 is merely a legislative burden on the trade unions timed to deflect attention, as my hon. Friend says, from other parts of the Bill that are completely deficient.

--- Later in debate ---

[Ian Murray]

I am grateful to my hon. Friend for that intervention. As Chair of the Political and Constitutional Reform Committee, he has done some wonderful work on the Bill, and at very short notice. It is a great credit not only to him and the Committee’s staff, but to the other Members who serve on it. He has demonstrated how the Government operate. If one wanted to put something through that was ideologically driven but did not want it to be scrutinised, one would do as the Government have done with this Bill.

[Paul Flynn]

Was not my hon. Friend astonished by the fact that, while 11 Conservative MPs last night voted against the low, mean attack on charities, not a single Lib Dem MP did so? Why does he think they are so enthusiastic to embrace their own extinction?

[Ian Murray]

My hon. Friend tempts me to use unparliamentary language, but I will not go down that route. It is a fact that last night every single Lib Dem Member went into the Lobby with the Government to vote for part 2 and that it was only Conservative rebels who decided not to put up with the Bill. I think that is unfortunate.

--- Later in debate ---

[Ian Lavery]

My hon. Friend is absolutely correct, and although we have only started to scratch the surface, the proposal is getting worse by the minute.

[Paul Flynn]

I am following my hon. Friend’s speech with interest. I share his puzzlement, but there might be a plausible explanation of why the role is being created. We know that great hordes of Tory and Lib Dem Members will be unemployed after the 2015 election, so this might well be a job creation programme to allow them to become assurers.

[Ian Lavery]

I understand my hon. Friend’s point, although he puts it somewhat differently than I would.

My hon. Friend the Member for Denton and Reddish (Andrew Gwynne) referred to how the appointment of a duly appointed assurer could be terminated. Amendment 119 is simple. Under proposed new section 24ZC(3) an assurer’s appointment can be terminated if

“(a) a resolution has been passed at a general meeting of the trade union appointing somebody else instead or providing expressly that the person is not to be re-appointed”—

whatever that means—or



“(b) the person has given notice to the union in writing of the person’s unwillingness to be re-appointed”

or

“(c) the person is not qualified for the appointment in accordance with section 24ZB”.

If he is not qualified, how can he be sacked? He should not have the job in the first place. This is an outrage. It just needs some common sense to row back from these provisions.

--- Later in debate ---

[Jo Swinson]

I welcome the debate on clause 37 and the amendments and I shall respond to some of the remarks hon. Members have made. Clause 37 gives credibility to the maintenance of trade union membership registers to members, employers and the wider public.

As hon. Members know, unions are already required to report on their financial affairs. They need to appoint an auditor, which gives the accounts authority. When a large union submits its membership on its certificate, the Bill provides the same kind of independent assurance that is provided in financial affairs. For the larger unions, that assurance needs to be independent if it is to be credible, which is why trade unions of more than 10,000 members must appoint a qualified independent person to provide the membership audit certificate, which will state whether, in the assurer’s opinion, the union’s systems are satisfactory in relation to compliance with the duties to maintain an accurate register—[Interruption.] If the hon. Member for Sheffield (Angela Smith) wants to intervene, I am happy for her to do so—[Interruption.] I apologise if I did not get the hon. Lady’s exact constituency name quite right. I should have referred to her as the Member for Barnsley and Penistone or whatever. She had a slightly different constituency in the previous Parliament.

The clause provides an order-making power for the Secretary of State to define who may act as an assurer. Somebody cannot act as an assurer if the union has grounds to believe they would not act competently, or that their independence might be called into question. For example, union officers or employers may not act as an assurer. In practice, the assurer will need to be somebody who can understand how records are stored, collected and updated, so that they can provide the audit certificate. They might want to know how the union collects new member data and how members are reminded to keep their details up to date—the hon. Member for Sunderland Central (Julie Elliott) described how a union with which she had been involved did that regularly. The assurer might also want to know how unions update the register once changes are notified.

Unions will need to set out in their rules the process for appointing and removing an assurer. We have provided flexibility for the union, but certain provisions will apply regardless. An assurer may be removed by resolution, or be automatically re-appointed unless one of various specified conditions are met. However, it will always be up to the union to have the final say—it can appoint or remove an assurer by resolution.

[Paul Flynn]

Before the hon. Lady gets into the detail, will she answer the question that has been asked again and again in the debate? Why is there a need for assurers? As my hon. Friend the Member for Edinburgh South (Ian Murray) has said, the measure is a solution looking for a problem. What is the problem?

[Jo Swinson]

That was discussed at length in the debate on the previous group of amendments and I refer the hon. Gentleman to my remarks in that debate. Clearly, we want to ensure that there is confidence in the names and addresses that trade unions use for the membership lists. There is agreement on both sides of the Committee that it is important that membership lists are accurate and up to date. That is an existing responsibility and duty on unions. The membership audit certificate will provide confidence in the list. It is much more proportionate for smaller unions, for which it is much easier to keep details up to date—smaller unions have fewer than 10,000 members, whereas some of the larger unions have more than 1 million members—to provide an assurance themselves. However, to have the credibility required for the larger unions, we must have that independence, which is where the assurer comes in.