Independent Parliamentary Standards Authority

(Limited Text - Ministerial Extracts only)

Wednesday 16th June 2010 Westminster Hall

[The Parliamentary Secretary, Cabinet Office (Mr Mark Harper)]

I do not have a great deal of time. I will try to address as many of the issues raised by right hon. and hon. Members as possible as I go along, but I may not be able to take many interventions if I am to make progress. For those Members who have mentioned it, I will also try to set out exactly what the Government’s role is in policy on the Independent Parliamentary Standards Authority, IPSA’s own responsibility and, to respond to the point made by my hon. Friend the Member for South Norfolk (Mr Bacon), what other avenues of accountability exist to ensure that the system is run in a sensible and cost-effective manner.

I congratulate the hon. Member for Walsall North (Mr Winnick) on securing this debate and on how he has conducted it. He reminded us why we are here and emphasised the importance of transparency and accountability for the costs that we incur while doing our jobs, including for the IPSA staff trying to administer the system. He described that well, setting a tone for the debate that I hope will be reflected in the coverage of it. He cannot be accused—to use the words of another hon. Member—of not getting it. He absolutely does get it, and his interest seems to lie in ensuring that a workable, sensible system is in place to enable Members to do their jobs.

[Ian Paisley]

Will the Minister give way?

[Mr Harper]

Let me make some progress. The fact that there are some 47 Members in Westminster Hall today—the largest number I have ever seen—indicates the concern that exists on both sides of the House. I am sure the IPSA board will pay attention to that, listen to this debate and take note.

To start off on a good foot—before I go on, probably, to disappoint everybody—it is worth saying for the benefit of those who did not see the coverage this morning that at its board meeting yesterday, IPSA made a number of changes that I think Members will welcome. IPSA has agreed to make one-to-one, hands-on help with the expenses system available to MPs who need it. IPSA has recognised the system’s complexity and will deal with it. As the right hon. Member for Cynon Valley (Ann Clwyd) mentioned, IPSA has also said that it will offer MPs one-on-one advice surgeries with IPSA officials who understand the scheme.

[Mr Bacon]

If it is a bad system, it will be like the Rural Payments Agency, which finally sent people to meet farmers face to face. What we want is a system that works. As a colleague said, a credit card system, which would be totally transparent, would be much simpler, cheaper, more efficient, more effective and more economical.

[Mr Harper]

If my hon. Friend will let me get to the end of my list, he may hear some positive news. To pick up that point, IPSA has also said that in its review of the scheme, it will consider a direct payment system. It is therefore incumbent on Members—[Interruption.] I am sure that IPSA will have listened to the advice from my hon. Friend and the hon. Member for Colchester (Bob Russell) about a credit card system. There are alternatives, but I think IPSA recognises that a direct payment system for office costs is a sensible venture, and it will consider that system during its review in the autumn.

[Mrs Anne McGuire (Stirling) (Lab)]

Will the Minister give way?

[Mr Harper]

I will give way once more, but then I need to make some progress.

[Mrs McGuire]

Does the Minister have any idea how much it has cost to reinvent the wheel on direct payment of office costs? Many of us already had such a system in place under the previous Administration and did not handle any cash in our offices.

--- Later in debate ---

[Mr Harper]

The right hon. Lady makes a good point. Under the old system, with which Members of the old Parliament will be familiar, no money passed through our hands. That system was completely transparent. I think IPSA will want to bear that in mind as it conducts its review. Members ought to tell IPSA what they think was powerful about the old system—[Hon. Members: “How?”] I am sure that they will, and I am sure IPSA will listen.

In the four minutes remaining to me, I will explain clearly to Members the methods for accountability and what the Government are and are not responsible for.

[Jim McGovern]

Will the Minister give way?

[Mr Harper]

I will not take any more interventions. I have only four minutes.

The shadow Secretary of State, who was responsible for taking some of the measures through the House, explained clearly the history behind them, the reason why they were introduced and the consequences of moving to an independent system. He also explained why it was necessary. The details of IPSA’s internal workings are for the chairman of its board and its senior management to explain, not the Government. I will not discuss individual details of how the expenses scheme works.

However, the Speaker’s Committee for the Independent Parliamentary Standards Authority has an oversight role. It must agree IPSA’s budget and lay it before the House. Members will be aware that the Speaker’s Committee on the Electoral Commission, an analogous body, answers both written and oral questions in the House from Members. I understand that at its first meeting on 30 June, the Speaker’s Committee for IPSA will consider whether that is a suitable model for enabling IPSA to answer Members’ questions about its internal workings.

My hon. Friend the hon. Member for South Norfolk, an experienced and well-respected member of the Select Committee on Public Accounts during the last Parliament, made the point that IPSA is subject to audit by the National Audit Office and therefore also by the Public Accounts Committee. I would expect the new Select Committee on Political and Constitutional Reform to take an interest in the matter as well. Those bodies will deal with the scrutiny oversight arrangements and ensure that IPSA is discharging its duties in a sensible way.

[Sir John Stanley]

Before my hon. Friend sits down, will he answer the fundamental question that I put to him? Does he agree that it is necessary and desirable that the Standards and Privileges Committee should consider the interface and boundary between the authority of IPSA and Members’ parliamentary privilege of freedom from obstruction?

[Mr Harper]

It is not for a member of the Government to tell the Standards and Privileges Committee—when it is set up—what it should consider. The Chairman and members of that Committee are perfectly able to decide that. However, it is worth remembering and reiterating the point made by the right hon. Member for Blackburn (Mr Straw) that under the Parliamentary Standards Act 2009, IPSA has a statutory duty to ensure that it supports Members in carrying out their parliamentary functions efficiently, cost-effectively and transparently. IPSA is legally obliged when running the scheme to ensure that it is helping us do our jobs as Members of Parliament. That was put into the Act from the beginning.

As I am about to run out of time, I will just make the point that the Government support the independent system of regulating our parliamentary expenses that has been in place since the election. We want to enable IPSA to get on with doing the job it is legally obliged to do in order to help us do our job of serving the public, but we will keep its role and functions under review. I am grateful to the hon. Member for Walsall North for securing this debate. It has been helpful, and I am sure that members of the IPSA board will take note of all the concerns raised. My right hon. Friend the Leader of the House, who was here earlier, has been speaking with IPSA regularly about any concerns raised by Members regarding their ability to do their job, and I know that he will continue to do so.