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

Tracey Crouch Excerpts

Monday 9th September 2013 Commons Chamber

[Mark Durkan]

The hon. Gentleman makes a very pertinent point.

This is why so many people are dissatisfied with the Bill, including bona fide, honest-to-goodness, up-front lobbyists who want to be able to conduct their business on good terms. They need to know that the register exists to ensure that they can conduct their business not only on good terms but on equal terms with anyone else who is competing to provide similar services, peddling similar influence and perhaps having an even greater effect on Government decisions on policy, on the framing of legislation, on programmes or on projects.

I hope that we will come to the amendments that try to address other problems relating to the Bill, but I am speaking in support of those Opposition amendments that are properly seeking to change the definitions relating to consultant lobbying. My own amendment 161 would ensure that the Bill covered more people involved in commercial lobbying who provide either full-time or significant part-time lobbying services on behalf of what the Government call non-lobbying or mainly non-lobbying businesses, and that they too would need to register. Such a provision would protect those who meet those lobbyists, be they MPs, members of Select Committees, Ministers, Parliamentary Private Secretaries, permanent secretaries or senior civil servants. I would like all of them to be scoped into the Bill, rather than it simply focusing on Ministers and permanent secretaries. They would all be better protected if the legislation were better cast.

I am sorry that the Government have scrambled the Bill in this way. If we do not take the time now to get it right, many people will have to pay the price later. Some people will deservedly find themselves caught up in a scandal, but others who do not deserve it will also find themselves in that predicament, because we are deliberately leaving twilight zones in which people will bump into things that they did not realise were there. People might be told that certain things are okay under the legislation—just as people were told that certain things were okay under the expenses rules—only for a different assessment to be made following public scrutiny. We must be vigilant about the standards we are setting for ourselves and others. That means that we need to support the Opposition amendments, and particularly those tabled by the Political and Constitutional Reform Committee.

I fully respect the points made by the hon. Member for St Albans (Mrs Main) about new clause 5, but I have problems with some of the details of the proposal, and not least with its implications for charities and other bodies. It also sticks to the narrow definition of consultant lobbying, even if it completely recasts that definition by what it subsequently goes on to propose. I understand that she tabled the new clause to make a point, and she has made a valid point very well. She has indicated that she will not press the new clause to a Division, and I will not press my amendment to a vote either.

[Tracey Crouch (Chatham and Aylesford) (Con)]

This has been a fascinating debate, and I shall not repeat the points that have already been made by my hon. and learned Friend the Member for Torridge and West Devon (Mr Cox) and other colleagues across the Committee. I want to bring some of my own experience to the Chamber. Fundamentally, what is wrong with this part of the Bill is that it does not reflect any kind of understanding of the lobbying industry, of which I am a proud ex-member.

The lobbying industry has changed dramatically since I first joined it in 1998. I worked for a consultancy that, if it existed today, would be caught by the Bill’s provisions because it was a dedicated Government relations lobbying agency. However, the industry has changed and most public affairs firms are now part of wider communications groups, on which the Bill will have no impact. I worked in the industry between 1998 and 2003, and it gave me a fantastic opportunity to learn many things and to engage in the political process.

We should be clear that the lobbying industry is important to a fair and democratic society. It is also important to us as Members of Parliament, in that it can help to inform and educate us on incredibly technical issues. We should not always view the industry with deep, dark suspicion. The only point in the debate that I have disagreed with so far was the description of lobbyists as mendacious and as performing some kind of dark arts. That is incredibly unfair, because most lobbyists are highly professional and very proud of what they do. They want transparency in their industry, and they want a level playing field. The Bill delivers neither. If anything, it could make the industry more opaque, and it will certainly not produce a more level playing field.

I would like to give the House an example from my own experience. Between 2005 and 2010, I was head of public affairs for Aviva. It was known as Norwich Union when I joined it, but it subsequently changed its name. We had a large lobbying team here in the UK and in Europe. As I look around the Chamber, I can see many people whom I, as head of public affairs, probably would have lobbied.

My lobbying team would not have been covered by the provisions in the Bill. We employed a major City law firm to provide specific counsel on legislative issues. As my hon. and learned Friend the Member for Torridge and West Devon has pointed out, such lawyers will not be covered by the Bill either. We also employed a consultancy that provided public affairs advice and was part of a wider group; it, too, would not be included in the Bill. We worked closely, too, with trade associations, which again would not be included. If we paid for research by a think-tank and lobbied on the outcome, that, too, would not be included in the Bill.

It is therefore quite clear that this part of the Bill needs to be taken off the table and looked at again, particularly in respect of expanding the definitions. I have a great deal of sympathy with the Opposition Front-Bench team’s amendment, as does the Association of Professional Political Consultants, because it wants a level playing field. Those of us who have worked in the industry consider ourselves professional lobbyists, not just consultant lobbyists.

[Dr Thérèse Coffey]

I understand my hon. Friend’s point, but does she agree that the transparency shown by publishing ministerial diaries, including the companies that Ministers meet and the purpose of the meetings, fulfils that role, and that trying to extend the law is effectively using a sledgehammer to crack a small nut, which concerns the PR industry in particular?

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[Tracey Crouch]

I do not wish to be rude, but I think that that shows a real lack of understanding of the lobbying industry. A significant proportion of what lobbyists do does not relate to Ministers or permanent secretaries. In the entire 10 years for which I worked in the industry, I do not think that I once either arranged or attended a meeting with a permanent secretary. With great respect to current and former Ministers, that was very much the end process of whatever we were seeking to do. We would quite often meet civil servants to discuss incredibly technical issues that, by the time they reached the Minister’s desk, were probably already signed and agreed through the interactive relationships developed with those particular civil servants.

[Helen Goodman]

The hon. Lady is absolutely right. It is not the job of a permanent secretary to do particular pieces of policy work; that person’s job is to run the Department.

[Tracey Crouch]

I quite agree, so it is not surprising that I did not meet a permanent secretary in any capacity during my lobbying days. It was not my job to advise them on how they ran their Department; it was my job to try to influence opinions and the legislative process with civil servants at a lower level, particularly on the very technical issues that typically arose in the insurance industry. It is quite clear that this aspect of the Bill is not fit for purpose and it would benefit from being broadened in definition to include all consultants, including both in-house consultants and those that are part of multi-agency firms.

[Charlie Elphicke]

My concern is as follows. If I am approached by a representative of lobbyists from Save the Children or, indeed, from the life insurance industry, in which my hon. Friend used to work, I will know what company they are from and who they represent; they will be in-house and I will know what they are about. On the other hand, if I am approached by a lobbyist from one of the big lobbying companies, I may not be entirely clear about whom they represent. My concern is to ensure that we have a sense of whom they are representing; when the lobbyists are in-house, we have a greater sense of clarity about whom they represent.

[Tracey Crouch]

I feel as if I am being rude to my Back-Bench colleagues, but yet again I think that that demonstrates a lack of understanding of the lobbying industry. Only very rarely would a lobbying company or consultancy have a direct meeting with a Member of Parliament or Minister. Such companies are the facilitators of meetings for their clients, who quite often happen to be big companies. I remember when I was an in-house lobbyist having a meeting with my hon. Friend when he was an adviser to the shadow Treasury team on matters relating to European tax legislation. We need to be clear that the lobbying industry today provides a very different service and is a very different industry from what it was 10 or 15 years ago.

[Peter Luff]

My hon. Friend is making an excellent speech, and I agree with every word. On the subject of tax, however, I want to highlight one particular danger. A multinational company wanting to make representations to a Minister or a permanent secretary—that is very unlikely—is likely to be an accountancy firm, not a lobbying firm, but accountancy firms are specifically excluded from the Bill. It is a bizarre exclusion.

[Tracey Crouch]

I agree entirely with the principle to which my hon. Friend refers, but as it happens, we had tax experts in Aviva and we were able to use them. We did not need to employ accountancy firms, but we did on occasion need to employ experts from law firms. The problem with this part of the Bill is that it does not extend to that.

We need to be clear that lobbying must be transparent and there needs to be a level playing field. At present, I am afraid that clause 1 and the first part of the Bill do not allow that to happen. I hope that my Front-Bench team are listening and hope that they recognise the genuine concern about whether the definition goes far enough. I hope they will consider expanding the definition either today or in later stages of the Bill’s passage to ensure both transparency and a level playing field.

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[Tracey Crouch]

I am sure that my hon. Friend is aware that the Association of Professional Political Consultants itself accepts the amendments that would replace “consultant lobbyist” with “professional lobbyist”.

[Miss Smith]

I am delighted to have taken my hon. Friend’s intervention because I will come on in detail to why those amendments are deficient. I have no doubt that they are supported by others who have made their voices known in this debate, but that does not make them a solution to a specifically identified problem. Indeed, the hon. Member for Dunfermline and West Fife kindly confirmed that our Bill does what it sets out to do.

The context is that this Government have for the first time made it clear to the public exactly who Ministers and permanent secretaries meet. The Opposition appear to be trying to solve a different problem, but they have failed clearly to articulate what it is. What exactly is the rationale for a register that requires the local vicar to sign up as a professional lobbyist? The hon. Member for Rhondda (Chris Bryant) seems to think that that is okay. However, if this how Labour Members think they might get back in touch, they will not achieve it by doing this, and it is rather weak for them to think so. The hon. Member for Dunfermline and West Fife rejects the idea that the local vicar might need to sign up as a professional, but he ought to read his papers more closely.