Independent Parliamentary Standards Authority

Roger Gale Excerpts

Thursday 2nd December 2010 Commons Chamber

[Mr Roger Gale (North Thanet) (Con)]

It is a pleasure to follow the right hon. Member for Cynon Valley (Ann Clwyd). May I add my congratulations to my hon. Friend the Member for Windsor (Adam Afriyie) not only on bringing this debate to the House today but on the considerable amount of hard work he has put in over many months to seek to redress what indubitably has been and remains a wrong? My hon. Friend has studiously given IPSA, perhaps appropriately, until all fools’ day to come back with a better scheme. Personally, I would prefer to see a change now, but I shall support his motion in the Lobby, if necessary, later.

I want to pay tribute to the staff of the former Fees Office, many of whom have been reviled—shamefully, sometimes in this House, but more particularly in the press—because of the systems that had developed. Those staff, known to many of us in previous Parliaments, were in the main diligent, courteous and careful and did a very good job. Some are now working for IPSA, but I happen to know that some of them are acutely disturbed by the climate of mistrust in IPSA that has been inculcated into them and imposed on them from the top. By the top, I mean the chairman and the interim chief executive. Let us now call a spade a spade and understand what we are talking about.

The hon. Member for Walsall North (Mr Winnick) said it was up to those of us who have knocked around for a bit to speak up for the newer Members of the House. It will not have escaped your notice, Mr Deputy Speaker, that I am practically halfway through my parliamentary career—[Laughter.] Did I hear somebody say “shame”? On that basis, I believe that some of us have a duty to say things that young men and women who entered this Parliament for the first time in May need to have said for them but do not feel able to say for themselves. There has been a climate of fear and of mistrust. There is a feeling that if we complain our constituents will not understand and the local and national press certainly will not understand. There are some things that we must get on the record.

In introducing the debate, my hon. Friend the Member for Windsor said that he was trying to stimulate a measure in the interests of our constituents and in the interests of saving money. He is absolutely right. The system that has been imposed on us is wasteful, costly and bureaucratic and it is failing. We have to get that right. The interim chief executive of IPSA, in one of his many issued statements, said that

“the core of our mission is to support parliamentary democracy.”

Mr Churchill might have used the phrase “round objects”. I am sorry, I do not accept that. Our job goes to the core of parliamentary democracy, and parliamentary democracy is being interfered with by the scheme that has been imposed on us.

Let us be absolutely clear about this: not just in the last Parliament but probably in the two or three before, things went very badly wrong. Some former Members behaved in a way that can only be described as less than honourable, and we all need to understand that there was, and remains, a need for change. But change for the sake of change, on the basis of “My shirt is hairier than yours”, is not a way of taking the House forward.

The hon. Member for Colchester (Bob Russell) asked how many Members had been consulted before the new scheme was devised. The answer is none or very few. We have to accept that IPSA found itself faced with a well nigh impossible task, and I do not demur from that at all. It had to try to put together a scheme within the time scale that our Front Benchers on both sides of the House demanded—we need to be clear about where some of the responsibility for that lies. That was very difficult, but having said that, the people at the top of IPSA have chosen—I believe partly through arrogance—to ignore the fundamentals and not to do the groundwork and research necessary to put in place not just a scheme, but a scheme that worked.

I have invited the interim chief executive of IPSA, courteously and on three separate occasions, to visit my parliamentary office. It is located in my constituency, but it is not a constituency office. That is a fundamental difference. I have chosen to locate my entire business in the constituency. I have tried to impress on the interim chief executive the point that if a Member of Parliament has his or her office based within the parliamentary estate, and if all their staff are based there, all their bills for telephone calls, office equipment, heating, lighting, cleaning, office rental, rates, fire precautions—the whole kit and caboodle—are paid for by the House authorities. That represents a difference of about £17,000 a year between that Member and another Member with his or her parliamentary office in the constituency. That means, of course, that the information published today is hopelessly distorted. My telephone bills for my parliamentary office will be much higher than those of colleagues who use the phones here.

The interim chief executive wrote back to me and completely missed the point, saying, “Well, if you’ve got a problem with this, we’re quite prepared to review the amount that you’re allowed.” I do not want the amount that I am allowed reviewed, and I do not want to spend any more money. Over 27 years in this place, I have already subsidised my office costs to the taxpayer to the tune of a quarter of a million pounds, and I have done so uncomplainingly. However, I do not want to be misunderstood by people who have devised a scheme without taking the trouble to get out there, visit offices and really understand what the job of a Member of Parliament is about.

I asked when the interim chief executive had visited a constituency or a parliamentary office in a constituency, how often and where. Hon. Members may be dismayed to learn that the answer, which came after a freedom of information request because I was not initially told, stated that the chief executive’s first visit to any office was on 9 July, the election having been in May. That was to the office of the right hon. Member for Blackburn (Mr Straw), where he spent two days. More recently—very recently—the man who told me that it was not possible to visit my office visited South Thanet, which is four miles down the road.

[Mr Kevan Jones]

Does the hon. Gentleman also agree that a good example of IPSA completely misunderstanding how an MP’s office runs was its early diktat that it would pay only 85% of our phone bills, on the basis that the other 15% related to our personal use?

[Mr Gale]

The hon. Gentleman is absolutely right. I shall discuss the costs of IPSA now, because I am conscious that a lot of hon. Members wish to speak and I must not take up too much time.

I want to address issues such as IPSA’s extravagance and waste. The office costs issue is important. IPSA’s chief executive says that plenty of people in the public sector pay their bills and then reclaim the money. I am sorry, but I do not believe that IPSA’s chief executive pays any part of the rent for his office in Victoria—or his phone, heating, lighting and cleaning bills—and then claims it back. I therefore asked how much IPSA was spending on that. The rental for those offices, which are not on the parliamentary estate, as the hon. Member for Walsall North said, costs £348,000 a year over the life of the lease.

I am still waiting—IPSA is out of time on this—for a freedom of information follow-up to tell me how much IPSA is spending on business rates, heating, lighting, cleaning, service charges, depreciation and all the other costs. That figure has to be in excess of £500,000. I note that Mr Speaker has said that he wants IPSA’s costs cut to £2 million. If just the building costs £500,000, even before we have put any people in it, and if we now have to pay for the gold key online expenses submissions system, £2 million will not be enough, despite the fact that the old Fees Office did the entire job for that money.

Funding of the online key scheme is discrete; IPSA will not give the answer under freedom of information legislation because the information is commercial in confidence and providing it might prejudice future negotiations. What I can tell the House is that IPSA has entered into a five-year contract. I suspect it has done so at very considerable expense and with no break clause. So if we do revise this scheme, the taxpayers will find themselves paying the bill up to the full five years.

We asked the chief executive what the purpose of all the duplication is. Our staff spend six hours a week online, filling in forms on the screen, item by item and line by line. That is fine, but they then have to print the whole darned lot, back it up with receipts and send it in. IPSA’s chief executive does not consider that to be duplication, but if doing something twice is not duplication, I do not know what is.

Finally, I wish to discuss an issue that has been raised and is of grave concern to new and younger Members, particularly those with young families: the living costs allowed to Members of Parliament to maintain the necessary accommodation—I emphasise the word “necessary”—in the constituency and in London. It appears to have escaped IPSA’s understanding that Members of Parliament do work in the House of Commons and in our constituencies.

I know colleagues in Kent who represent quite large constituencies that have only one station, which is perhaps just within an hour by train from London. We need to understand that that is just under an hour platform to platform, not door to door. They do not receive any London weighting, any London living allowance or any accommodation allowance at all, so they find themselves, having come into this place believing that they have come here to do a job of work on behalf of their constituents, either having to pay to get home late at night or having to travel home before the vote at 10 pm. Where is the sense in that? I do not know of any journey time that starts when the train arrives at the platform and ends when it arrives at the platform at the other end, but takes no account of the time it takes someone to get from their home or office to that platform to wait for the train, to catch the train, to be delayed, to get off at the other end and to get back home or to their place of work. That is arrant nonsense. When I told IPSA that those people were being unfairly treated, I was told:

“IPSA did not consider that eligibility for accommodation could reasonably be decided on the basis on where the MP elected to live. This would have created a perverse incentive for the MP to opt to live further away from Westminster, in order to be eligible for accommodation. The decision was therefore taken on principle that eligibility should depend on the constituency’s proximity to Westminster. It is then down to MPs whether they elect to live close to the station within their constituency which has the fastest links to Westminster”.

In other words, if Members do not like it, they should sell their houses and move closer to the station.

I have been in this place for a long time, and I want to leave it one day knowing that it is in safe hands—the hands of good people who have come here for the right reasons and who want to do the job that they were elected to do. If they are going to be able to do that, they have to have the resources. The people who are denying them those resources are the people who are currently running IPSA. We have two choices. This House—this democracy—will either be the province of the very rich or juvenile anoraks with no experience of life, business or anything at all, or we will sort this problem out. As far as we are concerned, IPSA has until 1 April. It had better get it right.

--- Later in debate ---

[Peter Bottomley (Worthing West) (Con)]

Parliament should create its own website, on which any Member of Parliament with a legitimate claim refused by IPSA could post it, along with an explanation, and once a week, IPSA should explain to its board, and put on the website, the reason it turned down certain claims. That way we could say in public, “This is the reason we put in the claim.” We could put on the public record the fact that it was not accepted, and then IPSA could explain why it did not accept the shredder, the visit to the pharmacy students or whatever.

Spouses cannot now get their trips to constituencies paid for. Once, when I was abroad on overseas duties, and when representing my first constituency, I asked my wife if she would take my advice session. She did. She has a master’s degree in social administration and is a psychiatric social worker. She is competent in all such matters. She said that I was not trained sufficiently to do the sort of work that I was being asked to do, and she may have been right: that may be one reason why she became a Member of Parliament herself.

If I asked a member of staff to take charge of an advice session, IPSA would pay. If I ask someone who could do it just as well—someone with 21 years’ experience in the House of Commons—IPSA will not pay. That strikes me as an odd position to have arisen. However, I agree with my hon. Friend the Member for Windsor (Adam Afriyie) that the individual members of staff at IPSA are good people. I have been to see them. The first time I visited their building I was going to the Stag brewery, where Watney’s was making Red Barrel. The parties were better then.

I do not want to expose IPSA to scorn, but there are some things that I think stop us being serious for just a moment. We all know that when a claim has been prepared, we have to go through hoops to get a barcode. Once we have the barcode, we must print out a sheet of paper. It takes eight separate key presses to proceed from the stage of having the barcode in front of us to the stage of having a printed piece of paper in our hands. I do not believe that a single member of IPSA has been through that process, because anyone who had would have said, “This is absolutely wrong.”

Once there is a hard copy of the receipt and the printed-out barcode sheet arrives with IPSA, what happens? I will give the House one guess. A member of IPSA’s staff generates another barcode to put on the bits of paper. There is a perfectly rational reason for that, but if all the members of staff and Members of Parliament were told that that is what happens next, they would say that it was unbelievable.

IPSA sometimes gets things wrong. We can all make honest mistakes: indeed, some of our colleagues who were exposed to public scorn made honest mistakes. When my PA wanted to arrange maternity cover and was going to telephone IPSA to ask how it would be arranged, I instructed her not to hold on for more than 45 minutes each time she did not receive an answer. That happened three times. IPSA tells me that, on average, its staff answer the phone in less than 10 minutes. When IPSA did respond, it said that payment for maternity cover would come out of the contingency fund, and both my PA and I would have to sign a statement that what was happening was both unavoidable and unexpected!

That was an honest mistake, and I am not criticising IPSA for it. What I am saying is that MPs who do not even make an honest mistake, but make an honest submission of a claim for a shredder or for a journey that is perfectly acceptable, are potentially exposed to what we read about in The Times yesterday, and to much more excitement after that.

I have shown IPSA people what happens when I log on to deal with a small self-invested pension pot: it takes me about 15 seconds to log on and be able to move money around. I have shown IPSA what happens when I engage in online banking: it takes about 25 seconds to log on and be able to make payments to people, for instance. I have explained to IPSA—I think that it understands this, and I am sure that the review will lead to even more improvements—that when virtually every Member of Parliament is buying office supplies from the same supplier, I do not understand why I should be expected to work out from the statement I receive from the firm, with invoices attached, which supplies I paid for last month, which supplies I am trying to pay for now, which supplies I have claimed for, and so forth. I do not think that anyone should have allowed such a rigmarole to develop.

In all my work—when I was working for the British Steel Corporation, a large organisation, and in my last job, when I was putting neon lights outside theatres and cinemas in the west end with 25 colleagues—I do not think that I have encountered any procedure that has been so demanding of both time and precision as the current expenses system.

[Mr Gale]

Can my hon. Friend possibly explain why IPSA is incapable of paying a bill directly and insists that it should go through a Member’s bank account, given that, at a third of the cost, the old Fees Office was able to pay literally any bill directly to the supplier?

[Peter Bottomley]

I normally reply “Yes” to my hon. Friend, but in this instance the answer is, “No, I cannot.” However, I think it comes down to the fact that members of the authority did not work their own way through the system, and did not talk to, say, a random selection of 10 Members of Parliament to ask what happens.

My right hon. Friend the Member for Tonbridge and Malling (Sir John Stanley) mentioned the problems with the IPSA drop-down menu, which does not include an option for us to go to our constituency to attend on a constituent or to attend some official function there. We are supposed to start at our constituency home or our constituency office. As it happens, I have a home in my constituency, but not so far as IPSA is concerned, because it is not paid for from public funds at all. There is an office of my association, which is not where I hold by advice sessions or other events, so I have the same problem as my right hon. Friend.

I have spoken to IPSA about the problem and I think it has a solution, but the problem should not arise. In the same way, we are told to find the cheapest way of going on journeys by train. Again, this is not the heaviest point to be made, but it is worth making. I had to go to the headquarters of the Sussex police in Lewes, outside my constituency, with a constituent who had wrongly been accused of rape. I found that I could go there and back for £5 return, so long as I booked in advance.

I said to IPSA, “The money doesn’t really matter. It’s not the principle, it’s not the money, it’s a matter of interest. If the meeting overruns, or the senior police officer cancels the meeting and books it on another day, will you please pay me back the £2.50 if I have to take another train back or the £5 if I don’t go at all?” The answers that I got were delphic. IPSA was not quite saying no and it was not quite saying yes. It is the sort of question that we ought to be able to put and ask, “What is the answer?”

As another example—this is the way I work—my local association provides a walk-in service for constituents, individuals, businesses or community groups. As a liaison with me, the association can set up meetings, photocopy documents, send them to me or speak to me on the phone. I am not employing the staff or renting the building. We have come to an agreement on what the rough cost is and made an arrangement at slightly below that. The cost is not a problem with IPSA. The problem is which budget should cover it. I intend to ask IPSA to relax the limits on the incidental expenses. That seems the sensible way to deal with it, rather than force it wrongly into office or staff expenses.

Such issues matter. Members are told that they must go back to their constituency or not claim for a home in their constituency if it is less than an hour by train, platform to platform. IPSA must revise that. My constituency is on the south coast. I have come in from King’s Cross and it has taken 40 minutes to get from the platform there to Westminster. The idea that a Member can then travel another 45 minutes—say, to the midlands—and expect to be useful the next day is fine if they start work at 2.30 when they come back. I pay tribute to my colleagues who are here at 8 am, or before, or shortly afterwards. Under IPSA’s conditions, they cannot do a proper day’s work as Members of Parliament.

I confirm the view of the hon. Member for Linlithgow and East Falkirk (Michael Connarty) who said that given a choice between doing expenses or helping a constituent, the duty is to help the constituent. When I was doing my expenses yesterday at 4 pm, expecting a two-hour break, a woman rang up. On 29 April her gas was turned off, and her new boiler might come next June. She has had to move out or would have got hypothermia. It took two hours to get the problem solved and next week she will have the boiler. I prefer to lose some of my own expenses because I came here to do good for other people, not to do good for myself.

--- Later in debate ---

[Clive Efford (Eltham) (Lab)]

I should like to associate myself with all the compliments that have been passed to the hon. Member for Windsor (Adam Afriyie), who has done us all a great service in initiating this debate.

I thought, tantalisingly, Mr Deputy Speaker, that you were going to call me after the hon. Member for Worthing West (Peter Bottomley). Since I was first selected to stand against him in 1989, we have seldom seen eye to eye on anything, but today I agreed with every word he said. The fact that IPSA has managed to bridge that chasm should be a serious warning to it indeed.

One of the ironies of the debate is that what initiated this process was a desire to deal with MPs who were in some way feathering their nests at public expense, but what we finished up with is the taxpayer paying out more money to solve the problem of people saying, “Woe betide these profligate and self-serving MPs.” We even had the involvement of Sir Thomas Legg, who barely washed his face in the amount of money that he brought back compared with what his investigation cost the House.

What we really want from today’s debate, as everyone has stressed, is for IPSA to listen. When my hon. Friend the Member for Manchester Central (Tony Lloyd), the Chair of the parliamentary Labour party, and I met Sir Ian Kennedy, we felt that everything we put to him was not sticking, and that he was not listening to anything we said about what is necessary for MPs and how MPs conduct their business. He just dismissed everything—he felt that he had all the answers and that he knew what MPs were about. I wonder whether some of the more Eurosceptic Members recognise that the system is akin to the EU. I am neither Eurosceptic nor Europhile, but there is a complete lack of public accountability and civil servants have been let rip, and we have ended up with a huge edifice. Every solution requires more expenditure and yet another department—someone mentioned that there is a new department for dealing with the media and press. Each problem that IPSA comes across seems to mean that it needs to spend more money, so we have now ended up with a very expensive edifice.

My hon. Friend the Member for Bassetlaw (John Mann) was absolutely right to warn us about losing the principle of the independence of IPSA and said that we would do so at our peril. We would be wrong to dismiss that as an attempt by him to create headlines and to be obstructive. We have suffered in the past from fiddling and interference from the Government and Opposition Front Benches—over the years, that created the mess that we got into. We should remember that, under the previous system, somebody felt it appropriate to apply for payment for a duck house. The fact that that claim was not paid is often overlooked, but that someone felt it appropriate to apply in the first place shows how far gone and how wrong that system was.

[Mr Gale]

I know of no Member of the House who wants to overturn IPSA’s independence, in which respect the hon. Member for Bassetlaw (John Mann) was quite wrong. Our problem is that the people conducting the review of IPSA are the people who were responsible for creating the problem in the first place. Would it not be a good idea to have an independent review?

[Clive Efford]

I would not dismiss that suggestion. I agree with the hon. Gentleman, and disagree with my hon. Friend the Member for Bassetlaw, because no one is suggesting that we lose that principle, but my hon. Friend was none the less right to warn us.

IPSA must set the framework within which MPs operate, but it must be sympathetic to what MPs confront in their daily business, which it has not been, even in respect of its computer system. IPSA told us that we must pay for surgery rents under the office rent heading, but there is no heading for surgery rents, so everything comes out of office rents. I suspect that my constituents who examine the system will wonder just how many offices I have. IPSA did not listen to MPs when it set up that system, but it must listen to this debate and the reasonable arguments that MPs have made, and change fundamentally.

I am a London MP and my staff are all based in my constituency. I have had the same staff since I was first elected. The inflationary increase in the staffing allowance was not a living increase, so if I had followed that, those staff would effectively have taken a real-terms pay cut. Instead, I vired money from my incidental expenses account into my staffing account to pay them a bonus at the end of the year, which meant that they got a decent salary increase. There is no viring any more, no spinal column, no incremental increase, and no recognition of the length of service of our staff. I really hope that IPSA takes that on board and rewards our staff.

My right hon. Friend the Member for Leeds Central (Hilary Benn), the shadow Leader of the House, talked about direct payments and we must move to such a system. I know of Members of Parliament who have not spoken in the debate—we should remember that some Members do not wish to pour their hearts out in the Chamber and have the media raking over their personal affairs—who have had to sell their assets to pay their office rent and other costs, and to set up a basic bursary so that they have an account from which they can pay out money before claiming it back. Some Members of Parliament to whom I have spoken have been in tears because of the financial situation in which IPSA has put them. They are not here to speak in this debate, but that fact should not be lost on IPSA.

If IPSA has not been listening to the debate, I hope that it will read it and take on board all the points that hon. Members have made. IPSA should change the system so that Members can serve the public in the way in which we hoped we would when we were elected.