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

Roger Gale Excerpts

Monday 9th September 2013 Commons Chamber

[Thomas Docherty]

I can honestly confirm that I am a parliamentary bore and that I am speaking at this great length because I can bore on the subject, and I think that Members on both sides of the Committee would agree that I am demonstrating that with some aplomb. The hon. Lady makes a serious point about the lack of time that the Government have made available. I deeply regret that the Bill has not gone upstairs, where you would have ably chaired the proceedings, Sir Roger—you would have kept us all in order, as you do so well as Chairman of the Panel of Chairs—and that all we have is four and a half hours—

[The Temporary Chair (Sir Roger Gale)]

Order. The hon. Gentleman must be aware that he is, and has been, absolutely in order. Were it otherwise, he would have been stopped.

[Thomas Docherty]

I am most grateful to be admonished for staying in order.

The hon. Lady makes a serious point. We have only four and a half or five hours to consider a huge piece of legislation. Frankly, this should have been scrutinised much better. I fail to see what constitutional imperative has brought it to the Floor of the House. I hope that the other place will do a genuine job of forcing the Government to come back and make some proper amendments, because I think that there are some real issues.

These are not issues that just I have concerns about. We have had the most bizarre and unlikely coalition. The Alliance for Lobbying Transparency has said of the Bill:

“It only applies to consultant lobbyists whose business is mainly lobbying. It would exclude those for whom lobbying is only a small part of the business. This could apply to a large number of significant lobbyists-for-hire”.

At the other end of the debate, the Public Relations Consultants Association polled its own members and found that only 1% of activity was covered from under 20% of the organisation’s concern. Even the hon. Member for Christchurch (Mr Chope), who I see in his place paying close attention, has said:

“The Bill tries to exclude people whose main business is not lobbying, but it does not define what constitutes a mainly non-lobbying business.”

The hon. Member for Clacton (Mr Carswell) has also criticised the loophole, saying:

“I suspect all that this new rule will do is ensure that in some instances big corporate interests will bring their lobbying activity back ‘in house’. Instead of hiring a public affairs consultancy, the big defence, banking and energy interests will give the work to their public affairs department. And because their main business is defence, or banking, or energy, they can safely ignore those provisions of the Bill.”

It is a dreadful state of affairs when two Government Back Benchers—I use the word “Government” slightly loosely, perhaps—are criticising the Bill. I hope the Minister will take on board the genuine concerns that have been expressed.

We have been told that the intention is not to exclude people. To pick up the point made by my hon. Friend the Member for Corby (Andy Sawford), let me give one example of a significant public affairs consultancy—MHP Communications. I should declare that I have met MHP Communications representatives, who have seen me about developments in my constituency. They conducted themselves appropriately at all times.

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[Miss Smith]

I am suggesting a clear, simple and recognised threshold to provide a guide for where to put a de minimis provision.

Amendment 77 will alter clause 2 to include the registration of a person under the VAT Act as a further requirement to be satisfied in the definition of carrying on the business of consultant lobbying. That will exclude those who are not VAT registered from the requirement to register as a consultant lobbyist.

Amendment 82 will remove the provision in clause 22 exempting those who are not VAT registered from the requirement to pay the subscription charge relating to entry on the register.

Amendment 83 will provide that regulations could be made allowing HMRC to share its records relating to registration under the VAT Act with a registrar. Clearly, that is an important resource to assist the registrar. Associated amendments make the necessary refinements to the references to employees throughout this part of the Bill. The exclusion of those who are not VAT registered from the requirement to register means that a number of references to employees should be adjusted to recognise that employees can never be VAT registered for their employer, a fact that I fear the hon. Member for Hemsworth knew nothing about.

Another group of Government amendments relates to the definition of incidental lobbying.

[The Temporary Chair (Sir Roger Gale)]

Order. I am sorry to interrupt the Minister, but there is a considerable amount of noise coming mainly from behind the Chair, mostly from people who have not paid any attention whatsoever to the debate. The Committee wishes to hear not only the Minister, but the Opposition Front-Bench spokesman in her reply, which has yet to follow.

[Miss Smith]

Thank you, Sir Roger. I will be as quick as I can in making a few points about Government amendments.

It has always been the Government’s intention that those who communicate with Government in a manner incidental to their normal professional activity should not be required to register as consultant lobbyists. These are not the people or organisations that this register is intended to capture. Let me be clear that it is our intention that multidisciplinary firms that run consultant lobbying operations and that lobby in a manner that is not merely incidental to their other activities should be captured. These are the exact professional consultant lobbyists that this register is intended to capture.

We have listened to those who suggested that the exemption in paragraph 3 of schedule 1 was too broad and should be refined, including the Chairman of the Political and Constitutional Reform Committee. Our amendments 91, 93, 94 and 95 will refine that paragraph by substituting the insubstantial proportion test with one that focuses on incidental lobbying. Specifically, paragraph 3 will provide that a person does not carry on the business of consultant lobbying if they are part of a non-lobbying organisation or if the lobbying communication they make is incidental to their normal non-lobbying activity.

In conclusion, we are proposing not a fully blown regulator for the industry, but a solution to an identified problem. I am sure that Members throughout the Committee will have read the US federal lobbying regulation manual, “The Lobbying Manual”, which runs to 894 pages. That is what we wish to avoid. I therefore oppose various amendments but support those tabled by my right hon. Friend the Leader of the House. I look forward to hearing what the Opposition think they can do better now than they did for the past 13 years.

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[Mr Gareth Thomas (Harrow West) (Lab/Co-op)]

I beg to move amendment 3, page 1, line 6, leave out ‘or’ and insert ‘and’.

[The Temporary Chair (Sir Roger Gale)]

With this it will be convenient to discuss the following:

Amendment 4, page 1, line 8, after ‘lobbyists’, insert—

‘and

(c) the person has signed up to the Register’s Code of Conduct.’.

Amendment 136, in clause 3, page 2, line 36, at end add—

‘(3) The Minister is under a duty to ensure the independence of the Registrar.

(4) The Minister is under a duty to ensure the Registrar is adequately financed and resourced so that the Registrar can exercise its functions under this Part.’.

Amendment 31,  in schedule 2, page 53, line 1, after ‘Minister’, insert—

‘after consultation with the Political and Constitutional Reform Committee of the House of Commons.’.

Amendment 138, page 53, line 2, at end insert—

‘(1A) The power of the Minister under sub-paragraph (1) is exercisable only following the approval of a proposed appointment by resolution of both Houses of Parliament.’.

Amendment 34, in clause 4, page 3, line 21, at end insert—

‘(c) the approximate value of the registered person’s spending on their lobbying activities for each quarter.’.

Amendment 36, in clause 5, page 3, line 37, after ‘information’, insert ‘and spending on lobbying’.

Amendment 137, page 3, line 38, at end insert—

‘(aa) details of any communications or meetings with a Minister of the Crown or Permanent Secretary that do not fall within section 2(3), and.’.

Amendment 56, page 3, line 47, at end add—

‘(c) if the registered person engaged in lobbying in the quarter in return for payment (whether or not the payment has been received), the purpose and subject matter of the lobbying services provided by the registered person; and

(d) if the registered person received payment in the quarter to engage in lobbying (whether or not the lobbying has been done) the purpose and subject matter of the lobbying services provided by the registered person.’.

Amendment 152, page 3, line 47, at end add—

‘(c) if the registered person received payment in the quarter to engage in lobbying (whether or not the lobbying has been done) the amount of payment received.’.

Amendment 37, page 3, line 47, at end insert—

‘(4) Spending on lobbying for each quarter is the approximate value of the amount a registered person spends on their lobbying activity for each quarter.’.

Amendment 40, in clause 10, page 5, line 28, leave out from ‘offence’ to end of line 30.

Amendment 42, in clause 14, page 7, line 39, at end insert—

‘or breaches the code of conduct’.

Amendment 43, in clause 22, page 10, line 31, leave out ‘seek to’.

New clause 1—Duty to apply a code of conduct—

‘(1) The Registrar shall, after wide consultation with relevant stakeholders including the Political and Constitutional Reform Committee of the House of Commons, prepare a code of conduct with which all registered persons will be required to comply, and may produce revised codes from time to time;

(2) The Secretary of State must lay any professional lobbying code of conduct before Parliament.

(3) Any code shall provide that any inappropriate financial relations between registered persons and parliamentarians are strictly forbidden.

(4) An organisation or person included on the register which contravenes the provisions of the code of conduct shall be liable to civil penalties as set out in Section 14.’.

New clause 2—Disclosure of names of professional lobbyists—

‘The Government must disclose the names of all persons who are professional lobbyists that work for them, including senior persons—

(a) who are employed directly with the UK Government;

(b) who are formally employed by the political party or parties that form the Government;

(c) who are employed on a temporary basis as consultants; and

(d) contractors.’.

New clause 7—Professional lobbyists taking up employment in government—

‘(1) Any professional lobbyist registered under section 1 taking up a senior position in Government will—

(a) have their appointment scrutinised by a Committee, and

(b) have restrictions placed on their activities as set out in subsection (3).

(2) “Senior position in Government” means a position as senior civil servant or their equivalent.

(3) The Minister, after consultation with relevant stakeholders, may make regulations about the activities set out in subsection (1)(b).’.

Clause stand part.

[Mr Thomas]

I rise to speak to the amendments tabled in the names of my right hon. and hon. Friends. Given the lack of time for debate that Ministers are allowing for this part of the Bill, let me rattle through the case for the amendments.

Amendment 3—the lead amendment in the group—is a probing amendment to explore why Ministers do not want the employer of a lobbyist to be revealed. We were led to believe that the motivation behind the Bill was to make the lobbying industry more transparent. Making it harder to understand who the employer of a person engaged in consultant lobbying is will hardly achieve that objective.

Let us take the example of the lobbying firm that has provided so much of the backdrop to debates on the Bill. If Crosby Textor suddenly decided that, after all, it is a firm of consultant lobbyists, the individuals working as consultant lobbyists for Crosby Textor would not, under the Bill, need to record by whom they are employed. Given the widespread concerns about what and who Crosby Textor lobbies for, it seems reasonable that the individual consultant lobbyists who work for Crosby Textor should reveal who employs them. The Opposition want transparency, and the Minister says she wants the same thing. We therefore want to hear more on why Ministers do not believe that revealing employers is required.

In speaking to amendment 4, I shall also refer to new clause 1 and amendment 42. Unless the Minister makes a dramatic speech, the Opposition will press amendment 4 to a Division. New clause 1, and amendments 4 and 42, require the establishment of a code of conduct. Such a code of conduct would be introduced after full consultation with all relevant stakeholders. It would have as its top line the need to avoid any inappropriate financial relations between registered persons and parliamentarians. It would also, of course, be available for parliamentary scrutiny.

The absence of a code of conduct from the Bill means there is currently no mechanism for removing or taking other sanctions against consultants who act in an unethical manner. Indeed, as the excellent Political and Constitutional Reform Committee has pointed out, if there is no code of conduct at the end of the Bill’s passage through both Houses, we will have the bizarre situation whereby the registrar can punish lateness in providing or submitting information, but cannot punish unethical behaviour. Arguably, the absence of a code of conduct means that some on the register will describe themselves as registered or approved without having to meet any minimum standards.

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[Mr Allen]

There are so many possibilities where a contribution might have been made, and where no contribution could have been made, we would have been no worse off. We managed to accumulate a wealth of evidence. Let us not forget that in a period of about four working days, my Select Committee produced a report for the benefit of Members in all parts of the House. We worked very hard and received 81 organisations throughout the UK, which are listed at the back of the report—not just anybody, but people who had a real interest. It was surprising to see how much interest was generated among people who were a little afraid about what is in part 2, which we will consider tomorrow. I hope we will consider it tomorrow in a slightly more seemly way.

Today’s debate is to conclude at 10 pm and we have got through only two groups of amendments. That is an abuse and it is disrespectful to the House. There are eight amendments that I tabled or with which I am associated that we will not reach, and there are many, many others tabled by Members in all parts of the Committee. These are not trivial matters. They are not fillers, as though we did not have much to think about over the past few days so we bunged in a few odd amendments.

Those amendments relate to extremely serious issues, which will not now get an airing in this Committee—issues such as whether Ministers and permanent secretaries should be the only people who should count as being lobbied. It has been alluded to, but the group of amendments relating to that, which are the result of some solid work, may I say, by my Committee and by colleagues in all parts of the House, will not be taken seriously. They will not be listened to and colleagues will not be able to make those points, to have Ministers listen to them and to improve the Bill.

The rights of Members of Parliament are also a very important area. Are Members of Parliament lobbyists? Are they lobbied? Should they be registered? How does this relate to our interaction with constituents? I know that these issues are of great concern to the Leader of the House, the Deputy Leader of the House and the Government. That group of amendments, too, will not be reached tonight.

[The Temporary Chair (Sir Roger Gale)]

Order. The hon. Gentleman is very experienced and he knows perfectly well that he may not debate issues that may or may not be reached later. We are debating a group of amendments.

[Mr Allen]

Therefore it is important that the issues in this group are debated. That is what I want to get to, as you kindly indicated, Sir Roger, after that preamble.

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[Miss Smith]

I am exceedingly grateful to my hon. Friend for that intervention, because it gives me the opportunity to look down the selection list. I am grateful to the Chair of the Political and Constitutional Reform Committee, who has worked with parliamentary counsel to produce amendment 151. The Government would like to support that amendment tonight because we believe that that important area of the Bill needs further clarification. Under the amendment, the existing MP exemption—

[The Temporary Chair (Sir Roger Gale)]

Order. I think it only right to say that amendment 151 will not be moved because it will not be called unless the Government choose to move it.

[Miss Smith]

I will beg to move the amendment at the appropriate time.

[Mr Allen]

That is a wonderful precedent. I have a large number of other amendments on the Order Paper. I am very happy to be the midwife and to hand those over to the hon. Lady.

[The Temporary Chair]

Order. Nice try.

[Miss Smith]

I am very grateful to the hon. Gentleman.

With that, I will finish speaking so that it is possible for another Back Bencher to speak.

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[Caroline Lucas]

rose—

[The Temporary Chair (Sir Roger Gale)]

Order. The hon. Member for Brighton, Pavilion (Caroline Lucas) will be aware that we are pressed for time and that the mover of the amendment must have the opportunity to respond. I am sure that she will bear that in mind.

[Caroline Lucas]

I associate myself with the comments of the hon. Member for Nottingham North (Mr Allen) about the way in which the debate has been organised and the high number of amendments that will not be scrutinised at all. Ironically, the Prime Minister brought forward the Bill saying that he wanted to avoid the next scandal. I am sure I am not alone in thinking that the way in which we are being forced to handle this debate is in itself a scandal.

I will speak briefly to amendment 152, the purpose of which is to bring depth to the Bill by focusing on financial disclosure. I believe that there should be a requirement to disclose a good-faith estimate of how much money has been spent on lobbying activity. The Minister said that the purpose of the Bill was to shine the light of transparency on lobbying. To my mind, we would be doing only half the job if we did not ensure that we had an idea of what was being spent on lobbying. I will try again to persuade her that requiring information on how much money is spent on lobbying on a quarterly basis would be proportionate and not burdensome.

The money being spent is the clearest indication of how committed an industry or organisation is to influencing a particular issue. It is also a clear indicator that Government decision making on an issue must be carefully scrutinised. Money also reveals the scale, disparities and trends in lobbying, and financial disclosure of the amount spent on lobbying would help us assess the spending gap between business and civil society groups, for example, or multinationals and non-profit organisations lobbying for Government contracts. Such a requirement need not be a bureaucratic burden. Work by Unlock Democracy on a mock filing showed that it would take about 20 minutes to prepare. That already happens in the US, and I have heard no good argument for it not to happen here. As a result, in the US it is much easier to see what is going on.