Parliamentary Standards Act 2009

Wayne David Excerpts

Thursday 15th December 2011 Commons Chamber

[Mr Wayne David (Caerphilly) (Lab)]

Many of us remember only too well the collective trauma experienced by the House during the previous Parliament over expenses. It is worth remembering that the then Prime Minister, my right hon. Friend the Member for Kirkcaldy and Cowdenbeath (Mr Brown), had support from both sides of the House when he introduced plans for an external and independent body to have responsibility for Members’ allowances. It was rightly seen that a system of self-regulation had been thoroughly discredited and that a fundamentally different approach was required—one that could command public confidence and one that meant establishing a body that was truly independent of Parliament. That body was the Independent Parliamentary Standards Authority.

Today, the Opposition still strongly support that approach and are firmly behind the principles that underlie IPSA’s operation, but it is fair to say that because Parliament moved swiftly to address the wholly understandable public concerns about the House’s expenses regime, after IPSA was established there were a number of shortcomings in the administration of the new system. I am encouraged that IPSA has listened and that significant improvements have been made and are still being made. For instance, the system for the submission of duplicate documents relating to Members’ accommodation has been simplified and Members’ mileage claims are now much more straightforward. These are just two examples of how things have gradually improved over the past 12 months.

That is not to say that the process of improvement should come to an end. On the contrary, we need to consider carefully two reports that highlight the fact that ISPA can and should make further improvements. The first report is that from the National Audit Office, published in July. It suggested that IPSA ought to consider a number of points. For example, it stated that IPSA needed to consider how it could improve relations with MPs and provide reassurance that it was truly committed to doing all it could to facilitate our work as MPs. Similarly, it suggested that IPSA ought to consider the introduction of centralised procurement contracts. It was argued that such contracts would allow more progress to be made in achieving IPSA’s goal of a cost-effective scheme. Other points in that report are also worthy of consideration.

[John Mann (Bassetlaw) (Lab)]

I thank my hon. Friend for robustly supporting the coalition position in this debate, which I, too, endorse. However, does not his point about the National Audit Office go to the crux of the dilemma? There are many different views on what a good system would be. My personal preference would be for local supplies, rather than national supplies, to boost local economies; the National Audit Office, backed by some, is suggesting something centralised and national. Does that not go to the crux of the matter, and is that not precisely why IPSA should remain independent?

[Mr David]

My hon. Friend makes a good point, which underlines the point that IPSA should always effectively be independent of Parliament, as he says. The only point I would make—and which the National Audit Office has also made—is about the general principle of collective procurement, which could be done more effectively to save taxpayers’ money. IPSA has made advances in ensuring a cost-effective scheme, but more can be done, and this is a clear example.

The second report that we are discussing today is that from the Committee on Members’ Expenses. I pay tribute to the hon. Member for Windsor (Adam Afriyie) and his Committee for their assiduous work. Their report is reasonable in tone and contains a raft of practical proposals to improve IPSA’s performance. However, I have some reservations about aspects of the report. For example, I am somewhat concerned about the recommendation that a separate body be established within the House of Commons service. That body, the report says, would be independently regulated by IPSA, and

“transparency would ensure that it did not replicate the deficiencies of the old expenses system.”

I welcome those words of reassurance, which are honestly expressed, but I am not convinced that we should run the risk of creating a perception that MPs could once again exercise influence over their expenses. For me, independence means independence, full stop.

[Adam Afriyie]

I do not think there is any disagreement, actually. The recommendation is merely that the legislation should enable the separation of those functions, because IPSA is unique in the entire world in its existing set-up. The Committee goes on to suggest what we think might be the best way to work more cost-effectively, but that is not the recommendation. The recommendation is merely that the legislation should enable a separation to take place, just to tidy things up a little.

[Mr David]

I hear what the hon. Gentleman says, but it still worries me that we are talking about at least an aspect of IPSA’s work coming in-house, to this place. Indeed, recommendation 3 says clearly:

“The best arrangement would be for that separate body to be within the House of Commons Service”.

However, if that body is in the House of Commons service, it is under the control of Members of Parliament, and I do not think that is desirable, nor is it something that would be easily understood by the general public.

That said, the report makes a number of good practical suggestions. For example, it is suggested that IPSA should extend its use of direct payments to cover as near to 100% of transactions as possible. That is to be welcomed. It is proposed that Members’ office and staff budgets should be merged, which would also be welcome. The report proposes that IPSA should make it easier for MPs to find out online how much of each budget has been spent. That would be a step forward. It is also suggested that IPSA should always ensure that MPs’ staff should have their expenses reimbursed directly and that this reimbursement should be made promptly. We would all endorse that. Those are just some of the practical and positive suggestions that are well worth active consideration and, I hope, implementation.

There are many policies and proposals in the report that I believe require careful deliberation. However, because of that, I am of the view that simply approving all the recommendations in their entirety might not be the best approach. That is why I have sympathy with the amendment, tabled by Government Back Benchers, which asks that the report be considered by IPSA as part of its annual review. I also hope that the Government will not merely wrap the report in warm words, but ensure that active consideration is given to those proposals that relate directly to the Government—in particular, recommendation 2—or the duties of IPSA.

I believe that the House has begun the process of restoring the reputation of Members of Parliament in the eyes of the public. However, to be honest, we still have a long way to go. That is why I believe that IPSA’s independence must be unequivocally maintained and that this House should not have any determining influence over any aspect of its expenses regime.

[Bob Russell]

Would the hon. Gentleman like to follow that argument through? Had it not been for the determination of the hon. Member for Windsor (Adam Afriyie) in getting the House to agree that this Committee should be established in the first place—we should remember that the Front Benchers did not want this Committee to exist—we would not be having this debate now and we would not have been able to discuss the important points to which the hon. Member for Caerphilly (Mr David) has alluded, including allowing Members to make progress and enhancing public confidence. It is not thanks to Front Benchers, but thanks to the House collectively—and the hon. Member for Windsor particularly—that we are having this debate and that this Committee was set up in the first place.

[Mr David]

I certainly endorse that point. The House has been mature in its approach to the issue and, as I made clear at the start, I genuinely commend the work carried out by this Committee. I would make the point, however, that for the next stage, it is not for us to accept everything before us on a blanket basis; we should pass matters on for further in-depth scrutiny and appropriate implementation. That is my important point.

I come back to the central issue of the independence of IPSA. That is a cardinal principle, and I would not want any message to go out from this House, either deliberately or inadvertently, that undermines that independence. That is important both for the practical implementation of expenses and for public perception. The standing of Members of Parliament is, I believe, something that we are all genuinely concerned about.

Finally, we all recognise that the system needs to be improved and made more effective. That is why Labour Members and I personally welcome this report from the Committee on Members’ Expenses and why I shall support the amendment.