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

Tom Brake Excerpts

Monday 9th September 2013 Commons Chamber

As Iain Anderson, the deputy chair of the Association of Professional Political Consultants, recognised—again, this is the industry’s view, not mine—the vast majority of lobbying is not about meeting Ministers or permanent secretaries but advising organisations about how the political process proceeds. That is why, under the Government’s definition, more than 95% of all lobbying activity will simply not be covered by the legislation.

[The Deputy Leader of the House of Commons (Tom Brake)]

Under the hon. Gentleman’s approach to lobbying, how many companies would be on the register and how many contacts would have to be logged each year? What would be the cost of running his alternative?

[Jon Trickett]

This is a £2 billion industry, and what we propose would cover almost all the activity that we can identify in it. It would not need to be costly; we have sat down with the industry, taken their advice and listened to their criticisms. They have told me that to complete a form of the kind proposed would take only a few moments a year and dramatically open up the whole industry. We will come to the register when we discuss other clauses. I am sure that you, Ms Primarolo, will tell me that I cannot pursue a matter that is the subject of later amendments. We will come back to the costs of the register.

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[Jon Trickett]

I am grateful to my hon. Friend, who is of course right. The whole industry agrees without exception and universally—there is total consensus—that this Bill simply does not meet the challenge of the day. The industry wants a register. It wants transparency because it lives in the shadows. Many professional and ethical lobbyists feel that they are being criticised unfairly. They also feel that they have been undermined by a small minority of lobbyists who are behaving unethically and do not register on any of the voluntary registers. They want a level playing field—they are right to do so—and the public want to know how decisions are made.

The Chartered Institute of Public Relations summed up the situation perfectly when it said:

“The Government’s lack of engagement with the industry is reflected in a poorly drafted and narrow definition which does not accurately reflect the work undertaken by lobbyists, including those the Government perceive to be acting in the capacity of a consultant lobbyist.”

Let me return to the problem of who will be caught under the Government’s definitions and who will be excluded. It is reported that in 2011 the British financial sector spent £92 million on lobbying politicians and regulators. Documents have now come to light that suggest that they secured a series of governmental financial measures that were very favourable to the finance industry. However, all this lobbying activity was carried out by in-house lobbyists and therefore would not count within the definition of “lobbying” that the Government have sought to deploy in the Bill.

[Tom Brake]

Will the hon. Gentleman give way?

[Jon Trickett]

No—I am about to finish.

The consequence is that the public would have no knowledge of how any of these decisions were made. That is why we have tabled our amendments.

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[Mr Allen]

My hon. Friend makes wise points. Perhaps I should excuse myself for having a little fun at the expense of the Deputy Leader of the House and the Minister who, in my experience of working with the Political and Constitutional Reform, are committed to what they do. However, that is not enough in this case. They have been put up as the fall guys to promote a Bill that has very few friends and does not do what it should.

My hon. Friend spoke of the public perception, which I mentioned on Second Reading. The public expected the House of Commons to do something about lobbying. The Prime Minister said something should be done about it. The coalition, in its agreement, and the Opposition had almost a contractual agreement that lobbying should be dealt with. All were committed and said clearly that lobbying should be dealt with. My hon. Friend is right that the people who will suffer most—I do not wish to repeat the points I made on Second Reading—are the public, who will be disillusioned that we will fail to do what we should. We agree that something clear, honest and open should be done, so perhaps the biggest losers will be hon. Members—the House of Commons as an institution, which is recovering from difficulties in the recent past. We have it in our power over the next three days to make a better Bill. It will not be the perfect Bill, but we have it in our power to try to make a better Bill. I will therefore take the opportunity to press amendment 48 to a Division, so that hon. Members have the opportunity of supporting their colleagues who serve on the Political and Constitutional Reform Committee.

I should make one other procedural point. I am surprised that knives will not operate on any of the next three days. I will cut my remarks short, but we should have knives so that we can have a sensible debate and vote on each of the key clauses. We need to deal with five key clauses today, but we may only get past clauses 1 and 2. If we had a more sensible arrangement on the division of time, we could do a better job—I am not making a point against the Government.

[Tom Brake]

Will the hon. Gentleman clarify one thing? I have sought clarification from the hon. Member for Hemsworth (Jon Trickett), who speaks for the official Opposition, but it has never been explained to me. Ministers already report their meetings with in-house lobbyists. What do we gain by extending the register to include in-house lobbyists when Ministers already report such meetings?

[Mr Allen]

I am very much in favour of extending the register to in-house lobbyists because many people regard the biggest scandals—the ones reported in the national press and elsewhere, and those that come to hon. Members’ attention—as resulting from the activities of people who work inside large multinational companies, whether engineering, arms manufacturing or many other things. It is not beyond our wit to produce such a measure.

The hon. Member for St Albans (Mrs Main) has courageously underlined how much lobbying takes place outwith the scope of the Bill. She highlighted with great tenacity some of the most poisonous and difficult things to deal with in the lobbying arena. We should listen to her and learn how to improve the Bill with her proposals.

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[Chris Bryant]

Absolutely. Indeed, let us get it all out in the open: I used to be a lobbyist. I used to lobby for the BBC in Brussels. All right, the Daily Mail hates me. That is just about every bad thing knocked into one. However, I believed that the work that I was doing had to be done openly, transparently and publicly, and I was entirely happy about that. The European Parliament has a register, everything must be declared openly, and it is all above board. I wish that we had the same arrangement here.

In recent years I have worked with the UK Public Affairs Council, which now produces a voluntary register. It is online, and it is pretty good. It is possible to detect a fair amount of the lobbying that is going on, and to detect who represent what clients and so on. I fear that if the Bill is passed, it will not be in the interests of the vast majority of the people who are currently signed up to an online voluntary register. The Bill means that they will not have to register, and it will not be in their interests to go the extra mile and sign up to the voluntary register, so we shall end up with less transparency rather than more.

[Tom Brake]

Will the hon. Gentleman give way?

[Chris Bryant]

I am happy to give way to the Minister if he can assure me—he need only nod—that he will tell me how many organisations will be caught by the Bill. I have not seen him nod yet. I will not give way to him until I see a nod.

[Tom Brake]

indicated assent.

[Chris Bryant]

All right.

[Tom Brake]

I assure the hon. Gentleman that the Parliamentary Secretary, Cabinet Office, my hon. Friend the. Member for Norwich North (Miss Smith), will respond to him on that point. [Interruption.] However, I wanted him to explain why he felt that organisations that are currently on a voluntary register—there is no requirement for them to be on it—would automatically choose to cease to be on that register. Many consider that being on it is to their commercial advantage, because it is a unique selling point when it comes to working with their clients.

[Chris Bryant]

We now know that a Liberal Democrat nod really means a shake of the head. The right hon. Gentleman said that he was going to tell us how many organisations would be caught by the Bill, but now he says that the other Minister will answer my question. My hon. Friend the Member for Newport West referred to albatrosses earlier. As I recall, in Coleridge’s poem “The Rime of the Ancient Mariner” the mariner shoots the albatross, which then hung around the mariner’s neck until all the people involved on the ship had died. I fear for the Parliamentary Secretary. I fear that, charming and wonderful as she is, this Bill will be hanging around her neck, and the necks of several other Members, until they have all passed on, politically at least.

Let me say this to the Minister. The reason many people will choose to opt out of the voluntary register on which they are listed at present is that there will now suddenly be a mandatory register to which only a tiny proportion of people will be required to sign up. Until the Government are prepared to say what proportion—

[Tom Brake]

rose—

[Chris Bryant]

If the Minister wishes to intervene, he should nod again.

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[Tom Brake]

indicated assent.

[Chris Bryant]

Right—that is the second nod. I can tell the Minister that the voters will not be prepared to accept three nods and still get a shake of the head from the Liberal Democrats. I hope that this is a real nod.

[Tom Brake]

I can tell the hon. Gentleman the answer to his earlier question: 350 organisations will be covered. However, he has still not responded to my question. Will he explain why organisations that are currently on a voluntary register should decide to remove their names from it. What advantage would they gain?

[Chris Bryant]

It is not a question of the advantage that they would gain; it is a question of the disadvantage of being on the voluntary register. If the Government are to introduce one mandatory register, saying that it is all that is required by public society, of course such organisations will make that decision.

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[Chris Bryant]

My hon. Friend expresses far better than I could exactly what I was trying to say earlier, and she is absolutely right.

Let us consider how two areas would be affected by the Bill and the proposed amendments. The first of them is the introduction of droit de suite. When the European Union insisted that every country in Europe had to have an artists’ resale right, the Government at the time—a Labour Government—were wholeheartedly opposed. However, some members of the Culture, Media and Sport Committee were wholeheartedly in favour and wanted to persuade the Government to take a different course of action, which we thought was going to be inevitable anyway.

At the time the Design and Artists Copyright Society, the body that administers copyright for artists, was lobbying very hard to have droit de suite introduced in the UK, and on a generous basis—more generous than that originally intended by the UK. So far as I am aware, it never lobbied the permanent secretary, but it certainly lobbied all the Culture, Media and Sport Committee members and a lot of junior DCMS and Treasury officials, and in the end it won its case. It would not be caught by this Bill, however, because its primary purpose is not to lobby, but to administer a system of collecting rates for artists. My argument is that that is wholly inappropriate. The body that was opposed to the introduction of such a right was the body that represents all the art houses and art galleries. It, too, would not be covered by this Bill, but I think it should be.

Communications with Members of Parliament should be included, as the new clause of the hon. Member for St Albans (Mrs Main) would allow, just as much as communications with Ministers or anybody else should, because knowing who is trying to influence proposed legislation, and who tables amendments and who does not table amendments and so on, is a vital part of knowing what is going on in the lobbying business.

Let us consider, too, recent events in the newspaper industry. I think all Members would agree that it has been ferociously lobbying for quite some time, sometimes through direct means and sometimes through indirect means. The chairman of the Press Complaints Commission is Lord Hunt. I am not sure whether he is still the chairman, but he is a Member of the other House. I am not sure whether he would be included in this legislation by virtue of being a Member of the other House, but he has certainly been lobbying on behalf of a whole set of other newspaper agencies, and he is paid to do so. The Government may say, “Yes, he probably would be included, as that is consultant lobbying.”

[Tom Brake]

indicated assent.

[Chris Bryant]

The Minister is nodding, so Lord Hunt would be included, but what about Peter Wright? He is the former editor of The Mail on Sunday, but he is now working solely on lobbying on this business on behalf not just of The Mail on Sunday, but other newspapers, too. Would he also be included? I do not think so, as he is a full-time employee of what was Associated Newspapers.

What about Lord Black of Brentwood? He is an executive director of the Telegraph Media Group. He has tabled amendments in the House of Lords and visited Ministers and so forth. He has been lobbying ferociously as well. Would he be included by virtue of the Government’s legislation? I suspect not, but I think most people in the country would think that that kind of activity should be publicly available so that we can all know the basis on which Ministers are making decisions.

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[Thomas Docherty]

That is a perceptive intervention with which I wholeheartedly agree. I bear lawyers no ill will, but it is correct that all that will happen is that some of the smaller third-party companies that might be caught and faced with this hefty bill will simply move that element of their business to the likes of DLA Piper or MHP Communications, which I will come on to.

The Deputy Leader of the House asked a genuine question when he said that surely companies would still wish to register through the APPC register or elsewhere. The answer to that genuine question is this: why would they when they are not required to and there is no commercial benefit in doing so? Having met the APPC on a couple of occasions—I was briefly a member of its board—I know that its huge concern is that its members will say, “We’re paying money already for regulation and red tape, so why would we choose to take on this second voluntary code when the Government themselves don’t think it’s necessary?”

[Tom Brake]

It was indeed a genuine question I asked, but I do not think that the hon. Gentleman has answered it. He asks why organisations would continue to maintain their entry on a voluntary register under what the Government propose, but of course those organisations have already entered a voluntary register, which they were not required to do.

[Thomas Docherty]

With your indulgence, Sir Roger, let me try to answer what I think is a genuine intervention from the Deputy Leader of the House. I was involved in the APPC back in 2008-09, when the previous Government effectively told the industry that it was drinking in the last chance saloon. In the previous Parliament, we had the Public Administration Committee report that, as I recall, recommended a statutory register if the industry did not improve public confidence and Parliament’s confidence in it. I made the point that those firms that are working in the correct manner and striving to improve their reputation would join a voluntary body, which they duly did, and the UK Public Affairs Council was set up to try to bring those things together. Regrettably, it was clear that the small number of dubious lobbying firms—dubious individuals, to be more accurate—would choose not to. Many of those who sign up to the voluntary register do so because they want to demonstrate that they are playing to the highest ethical standards and that there is bureaucracy and paperwork involved. It is not a case of chaps sitting around and signing off each other’s practices.

Firms also made the point that, when asked by potential clients whether they are a member of a register, they would simply say, “Well, we don’t do that activity.” In my three years as a consultant lobbyist—I understand that the Government do not accept my definition of a lobbyist—I do not recall once having a meeting with a permanent secretary or Minister, so my firm would have had no need to register. That is why I think that there is a real danger that those firms would say, “We don’t undertake that activity, so the Government and Parliament do not think we need to register,” and therefore the provisions will fall away.

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[Thomas Docherty]

My hon. Friend is absolutely right, as ever—I can see why the good Scots of Corby made such an excellent choice last year—and very perceptive. It goes to the heart of the debate about the Government’s intention and what lobbying is. To be fair, the Minister and the Deputy Leader of the House have set out what they are trying to achieve. The first clause does exactly what they want it to do, which is capture only third-party lobbyists. As the Deputy Leader of the House has said, all they are interested in is a scandal that has never happened, and frankly is never going to happen, and so they do nothing to tackle all the scandals we have had. If I understand it correctly—the two Ministers are present, so they can correct me if I get this wrong—all they are interested in doing is ensuring that if a consultant lobbyist sits in a room with a Minister, that Minister, who one would hope is a fairly bright person, is left in no doubt that that person is a lobbyist, as if he could not have worked that out beforehand—

[Tom Brake]

And who they were lobbying for.

[Thomas Docherty]

Yes, but that does nothing to tackle what the rest of the Committee thinks are the real scandals, such as those we have seen even in the past three or four years: Fred Michel, Fijigate, Lords for hire, as exposed by The Sunday Times, MPs like cabs for hire—I could go on. None of those scandals would have been caught or stopped by the Bill.

[Tom Brake]

Does the hon. Gentleman agree, however, that some of the cases he just referred to would be covered by things like the MPs’ code of conduct and that we do not require a register of lobbyists to address some of those issues?

[Thomas Docherty]

If the right hon. Gentleman wants to set out which of the scandals—MPs for hire, Fred Michel, Fijigate or whatever—are covered by the codes, I would be happy to hear him do so. The problem is that they are not. We have already heard some eloquent speeches from my hon. Friend the Member for Rhondda and others showing that that is not the case.