Committee on Members’ Allowances

Richard Bacon Excerpts

Thursday 7th July 2011 Commons Chamber

[Mr Heath]

Indeed, it can make any recommendations based on the considerations into which it has entered. It would be a very odd restriction on a Committee if it were to be told that it cannot make recommendations when it has considered a matter. Of course, such recommendations would be the end result if the Committee so chooses.

Motion 9 also brings the Committee’s terms of reference up to date. The Committee has a number of specific functions, set out in Standing Order No. 152G(1)(a) to (d), in relation to the old allowances regime that was administered by the House until the election last year. They include, for example, approving practice notes for the now-defunct fees office. Clearly, those specific powers are no longer relevant—they are, in effect, spent—and the motion provides the House with an opportunity to replace them with a more general power to consider any matter related to Members’ expenses that the House might choose to refer to it.

I sense from the interventions from the hon. Members for Windsor and for Gainsborough (Mr Leigh) that they have received some reassurance from what I have said.

[Mr Richard Bacon (South Norfolk) (Con)]

rose—

[Mr Heath]

I hope that my hon. Friend is reassured as well, but I will allow him to say.

[Mr Bacon]

I hope that the Deputy Leader of the House can reassure me. He said that the motion brings the Standing Order up to date because the Independent Parliamentary Standards Authority is operating an expenses-based scheme, not an allowances scheme. I have looked at the Parliamentary Standards Act 2009. It mentions the word “allowance” or “allowances” 37 times. Therefore, the authority under which IPSA operates—the Act—provides for allowances. It does not provide any authority to operate an expenses scheme. Can he clarify that for me?

[Mr Heath]

I can simply make it clear that IPSA does what it believes to be in line with the Act. The Committee will be free to consider those matters and to bring forward recommendations as it sees fit. I do not think that I can be more open than simply saying that no restriction is applied by the terms of the motions.

[Mr Bacon]

I am grateful to the Deputy Leader of the House for being as open as he thinks he can be, but I am still not quite clear. The 2009 Act could not be clearer. The words “expense” or “expenses” are not mentioned anywhere—I just searched a PDF copy of the Act and found that those words are mentioned nowhere in it—but the words “allowance” or “allowances” are mentioned 37 times. How can it be that IPSA operates a scheme that it thinks is in line with the Act if it ignores the terms of the Act? That is what I simply do not understand.

[Mr Heath]

It is probably not helpful for me to rehearse the subject matter of considerations that will clearly take place in the Committee. I do not speak for IPSA, but it has made it very clear that the current system is one of expenses, whereby Members are reimbursed for costs that they can prove they have incurred. The previous, discredited scheme was one of allowances, whereby Members were allowed to claim, in many cases, with no proof of actual expenditure. I repeat that changing the title of the Committee would not prevent it from proposing that IPSA should introduce a new system that includes an element of allowances, but it would be better if the Committee’s title actually reflected the scheme that is in operation rather than one that is not in operation.

--- Later in debate ---

[Mr Richard Bacon (South Norfolk) (Con)]

I shall be very brief. I am delighted by the Government’s reassurances, although I share the disappointment that it has taken since the resolution was passed in May to get to the point of setting up the Committee. If something had been decided that our constituents expected would happen, but then six or seven weeks later it had still not happened, we as Members would be advocating hard on their behalf. I am therefore glad that the decision has finally been made.

I want to make one point about the National Audit Office report that was published this morning, to which the hon. Member for Warrington North (Helen Jones) referred. I have had a look at it, and I think that it looks fairly reasonable. I know that one or two Members who have looked at it are slightly disappointed that it does not appear to tear IPSA limb from limb. However, given what had taken place—the MPs’ expenses crisis and the response that came forth with the new legislation—IPSA has done its best. We know that there is still further to go, and my hon. Friend the Deputy Leader of the House drew attention to the terms of reference—the need for improved public confidence, better accountability and better value for money, and not deterring legitimate claims. We all know that legitimate claims have been deterred, that we need to get value for money and that there is still some work to do, so I am delighted that the Committee can now proceed with its work.