Parliamentary Standards Act 2009

Debate between Wayne David and Lord Mann

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.