Transparency of Lobbying, Non-Party Campaigning and Trade Union Administration Bill
(Limited Text - Ministerial Extracts only)
Read Full debate21:11 - The House having divided: - Ayes: 224 / Noes: 292 - Question accordingly negatived.
Mr Deputy Speaker
May I say to the Leader of the House that I did not realise that Mr Cash wished to come in? I call Mr Cash.
Mrs Gillan
I do not wish to detain the House for long. I agree entirely with my right hon. Friend the Member for Wokingham (Mr Redwood). When the Leader of the House responds to the debate and speaks to his amendments, it is very important that he makes it clear that we as MPs are not placing ourselves in any special position other than to represent the interests of others, which is why we have been sent to this place.
The two instances that I have raised in interventions are highly personal to me, namely HS2 and the National Autistic Society. When people throughout the country read the HS2 Bill they immediately interpreted it as a drag on their lobbying of Government and on MPs who want to speak against the project. More importantly, we have to make sure that charities and other bodies that seek our help do not misconstrue the situation and think that we will be gagged in any way. This is called the gagging Bill in common parlance, which is why I want to make sure that the Leader of the House gives us a reassurance, as I am sure he will. The one thing I know is that he has been listening very carefully to the cases that have been made across the board. Rather than detain the House any longer, I look forward to receiving the reassurances sought by Government and Opposition Members that the Bill will not inhibit us in any way.
Mr Lansley
I am grateful to hon. Members for their contributions to this short debate, and particularly to my hon. Friends the Members for Harwich and North Essex (Mr Jenkin) and for Stone (Mr Cash) for tabling the new clause. I hope I will be able to reassure them that, through Government amendments 28 and 29, we will achieve the objectives that they and other Members seek. I hope that this debate on Report will begin with full agreement on how the Bill should be structured.
There are two issues with regard to this group of amendments: one is parliamentary privilege and the other is the position of Members of Parliament themselves. I reassure Members that the Government are committed to ensuring that the Bill’s provisions do not infringe on parliamentary privilege. The Government recognise that the privileges of Parliament are an integral and, indeed, as my hon. Friend the Member for Stone has said, necessary part of our constitutional arrangements. As the 18th century Clerk of the House, John Hatsell, commented, they are absolutely necessary for the due execution of Parliament’s powers.
Parliamentary privilege is an intrinsic and essential element of our democracy. It upholds Members’ right to freedom of speech and protects Parliament from external interference.
Article IX of the Bill of Rights 1689 reflects those historic and vital rights by providing that
“the freedom of speech and debates or proceedings in Parliament should not be impeached or questioned in any court or place out of Parliament”.
This Bill will in no way challenge the freedom of speech of parliamentarians.
Equally, we are committed to ensuring that the provisions do not intrude on Parliament’s exclusive cognisance and to upholding the principle famously set out by Sir William Blackstone in 1830, that
“the whole of the law and custom of Parliament has its origin in this one maxim, that whatever matter arises concerning either House of Parliament, ought to be examined, discussed and adjudged in that House and not elsewhere.”
As Members have made clear and helpfully acknowledged, following careful consideration we have concluded that the inclusion of a reference to parliamentary privilege in the Bill—either in the manner provided for by paragraph 1 of schedule 1 or in that outlined in new clause 1, if we were to proceed with it—could invite examination, discussion and judgment from sources external to Parliament. The retention or inclusion of such a provision could prompt unhelpful rulings by the courts regarding the nature or extent of privilege or its interaction with other statute. That point has been made by my hon. Friend the Member for Harwich and North Essex and by the report of the Standards and Privileges Committee.
I am grateful to the Committee and to its Chairman for his contribution to the debate. The Committee’s view and its helpful reference to the views of Lord Judge have helped us reach a conclusion. I hope the Committee will agree that Government amendment 28 meets its objective.
I am confident that Members will share our desire to protect Parliament’s right to regulate its own affairs and, as provided in the Bill of Rights, not to have its proceedings questioned. I am equally confident that the way in which that will be ensured in the context of this Bill will be to remove the reference to privilege outlined in paragraph 1 of schedule 1 and, as a consequence and for the same reason, to resist the inclusion of a similar provision as proposed by new clause 1. Government amendment 28 will therefore help to protect the privileges of Parliament from undue judicial interpretation in the context of this statute. I would be grateful if my hon. Friend the Member for Harwich and North Essex would withdraw the new clause in consequence of Government amendment 28.
Lady Hermon
I have listened carefully to the Leader of House’s explanation and am slightly concerned. Paragraph 22 of the explanatory notes states specifically that paragraphs 1 and 2 of schedule 1
“make provision to ensure that no provision of the bill could be infringing parliamentary privilege”.
Is the Leader of the House saying, therefore, that if paragraphs 1 and 2 are removed by the Government’s amendments there is no possibility of any other provision in the Bill infringing parliamentary privilege? Is that the assurance he is giving?
Mr Lansley
My hon. Friend the Member for Harwich and North Essex explained the matter well. A provision was inserted into the Parliamentary Standards Act 2009 because that statute would have impinged directly on the privileges and rights of Parliament. A saving provision was necessary in that context.
Lord Judge was right in what he said to the Joint Committee on Parliamentary Privilege and that is at the heart of our thinking on the matter. If we say in some Bills that nothing in the Bill infringes the principle of parliamentary privilege, not only would that be subject to judicial interpretation, but courts might conclude that other statutes that do not have such a saving provision may infringe parliamentary privilege. They might take the lack of a saving provision as an indication that Parliament did not expressly wish to avoid that happening. That is not our view. Our view is that parliamentary privilege subsists, that nothing in the Bill will infringe it and that courts should not interpret any part of it as infringing parliamentary privilege, for the reasons that my hon. Friend the Member for Harwich and North Essex explained.
The second issue under this group is the exemption of Members of Parliament. The Government have always been clear that the normal activity of a Member of Parliament will not be captured by the definition of consultant lobbying. The right hon. Member for Rother Valley (Mr Barron) referred to the report by the Standards Committee. I wrote to him with an explanation at the end of August, which stated:
“In order to be required to register under the Bill a person must lobby ‘in the course of a business’ and ‘in return for payment’.”
That is part of the definition of consultant lobbying. I continued:
“Performing one’s public role as a Member of Parliament does not amount to carrying on a business and is therefore exempt. This is equally true of anyone holding an elected office such as an MEP or councillor.”
I might add, in response to an earlier question, that the same would be true of a Member of the House of Lords. A Member of the House of Lords, in exercising their public duty, would not be regarded as carrying on a business and would therefore be exempt.
Concern was expressed by various people that the normal activities of elected officials might be captured by the provisions on the register. I am happy to provide the reassurance that they will not be. That was never our intention and, in our view, the Bill will not have that effect.
Out of an abundance of caution, in addition to the “in the course of a business” requirement, the Bill included a specific, overlapping exemption for Members of Parliament because of their uniquely high level of communication with Ministers and permanent secretaries. However, it became clear on Second Reading that there was dissatisfaction with the exemption, as drafted. That has been expressed again in this debate. There was concern that paragraph 2 of schedule 1 described the normal activities of a Member of Parliament inadequately.
Mr Jenkin
I am listening carefully to what the Leader of the House is saying. Of course, all this depends on what one means by the normal activities of a Member of Parliament. Does he agree that the normal activities of a Member of Parliament include representing anybody, so long as we are not paid to represent them? We are free to represent anybody, whether they be a business in the City or a charity.
Mr Lansley
I understand that completely. If I have not explained my point fully, let me explain it again. Under clause 2(1)(a), part of the definition of consultant lobbying is that it is carried out
“in the course of a business and in return for payment”.
When the Bill was introduced, in order to make it absolutely clear that Members of Parliament were not covered, we included a provision about the communications that are made by Members of Parliament in paragraph 2 of schedule 1.
On Second Reading, I explained that we believed that Members of Parliament were exempt by virtue of their public duty meaning that they were not engaged in the course of a business. It was clear that the inclusion of the additional provision in schedule 1 created an unnecessary and unhelpful confusion because, as has been said in this debate, it does not encapsulate all the activities of a Member of Parliament in carrying out their functions.
Members will recall that my hon. Friend the Member for Norwich North (Miss Smith) said in Committee that we would therefore adopt a different approach. I thank her for all her work on the Bill and welcome the Minister of State, Cabinet Office, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), who has responsibility for cities and constitution. I will not ask him to explain the Bill at this stage, but will allow him to take responsibility for the policy when he has had a chance to apply his considerable talents to it.
We discussed, welcomed and accepted what the Chair of the Political and Constitutional Reform Committee said and, in Committee, we accepted an amendment that he tabled. That amendment resulted in an improved exemption in schedule 1, which clarified the interaction between parliamentarians and the register. Members will recall that the definition of consultant lobbying states that it must be
“in the course of a business and in return for payment”.
Paragraph 6(2) of schedule 1 states that “payment” in those circumstances
“does not include any sums payable to a member of either House of Parliament”—
again, this refers to the point about Members of the House of Lords—under the Parliamentary Standards Act 2009, pursuant to a resolution, or out of money provided by Parliament or the Consolidated Fund.
Members of Parliament are therefore exempt under both limbs of the definition. They are not engaged in the course of a business and the payment that they receive is not regarded as payment for the purposes of the Bill. For that reason, we think that there is now a cast-iron, belt-and-braces exemption for Members of Parliament.
I might add that Members of the House of Lords are exempt in so far as they are acting in their public duties. If a Member of this House received payment for contacting a Minister or permanent secretary, it would be contrary to the Members’ code of conduct. The Chairman of the Standards Committee will correct me if I am wrong. The code in the House of Lords makes it clear that nobody can undertake paid advocacy in the House of Lords or advise somebody on the proceedings of the House, but it does not preclude somebody engaging in lobbying activity in the course of a business and in return for payment. My reading is that it is not inconceivable that some Members of the House of Lords would be required to register as consultant lobbyists as a consequence of their business activities. They would certainly not be required to register by virtue of their activities as Members of the House of Lords. I apologise for that detour.
As a consequence of accepting the amendment tabled by the Chair of the Political and Constitutional Reform Committee, we would have removed paragraph 2 of schedule 1 in Committee, but it was not reached. Amendment 29 will remove that redundant paragraph. I hope that the Opposition accept that amendment 78 is therefore unnecessary. I also ask my hon. Friend the Member for Harwich and North Essex to withdraw new clause 1.
Lady Hermon
I am most grateful to the Leader of the House for his very helpful explanation. Just to be sure, will he confirm that if I receive communications from constituents of the five absentee Sinn Fein Members—and, indeed, of any other Members of this House who take their seats—and I make representations or write to a Minister, the Director of Public Prosecutions or a senior Government official, that will not be caught by the Bill?
Mr Lansley
Yes, I can give the hon. Lady that assurance. She would not be affected by the Bill as she would be behaving as a Member of Parliament and not engaging in the course of a business. The payment she receives as a Member of Parliament is not regarded as payment for these purposes, and she can undertake all her normal activities. The same is true for the hon. Member for Harrow West (Mr Thomas) who sits on the Opposition Front Bench, because shadow Ministers and Members may raise any issues they wish. My right hon. Friend the Member for Chesham and Amersham (Mrs Gillan) can represent not only her constituents but anybody she likes in her responsibilities as a Member of Parliament, and is in no way constrained from doing so.
Mr Thomas
The Leader of the House has been at his most reasonable in the past few minutes, but he has not yet touched on how we ended up in this position. I asked whether he would set out who was consulted—were the House authorities consulted before the Bill was published? I asked, and I gently ask again, whether he would accept that one lesson of this episode and this Bill might be that pre-legislative scrutiny would have been helpful?
Mr Lansley
The hon. Gentleman knows from our previous conversation that we talked to the House authorities about parliamentary privilege. The implication of what he says is that the Bill was in a sense deficient because Members of Parliament were caught, but they were not. In the original Bill, Members of Parliament were exempt by virtue of the fact that they were engaged in a public duty as office holders, not in the course of a business. To that extent, we included provisions intended to give additional reassurance, but that simply muddied the waters and it was simpler to do it in the way that we, together with the Chair of the Standards and Privileges Committee, accepted. We accepted an amendment in Committee, and all I am doing today—I hope—is making it clear that the combination of those amendments in Committee and the amendments now being considered respects the views of the Standards and Privileges Committee and protects the rights of this House in relation to privilege. It also entirely protects the position of Members of Parliament who are undertaking their duties, however they construe them. On that basis, I hope Members will support Government amendments 28 and 29.
Mr Jenkin
I am grateful to my right hon. Friend for being utterly clear about the intention of this Bill, which is that Members of Parliament and Members of the other place are not intended to be included in the provisions of the Bill. He has listened and read the report from the Joint Committee on Parliamentary Privilege and the Standards and Privileges Committee of this House, and has understood the concerns raised. I emphasise the importance of removing the second paragraph in schedule 1, subject to amendment 29, because were it to remain it would have the effect of narrowing the exemption to an absurd degree. That is why it is important to remove it; it is not only redundant but would be highly damaging because it would suggest that what is not excluded by the clause would implicitly be included under the Bill. I will not press new clause 1 to a vote, because the Leader of the House is dealing with these matters in an exemplary manner, and I beg to ask leave to withdraw the motion.
Clause, by leave, withdrawn.
New Clause 4
Duty to apply a code of conduct
‘(1) The Registrar shall, after wide consultation with relevant stakeholders including the Political and Constitutional Reform Select Committee, prepare a code of conduct with which all registered persons will be required to comply, and may produce revised codes from time to time.
(2) The Secretary of State must lay any professional lobbying code of conduct before Parliament.
(3) Any code shall provide that any inappropriate financial relations between registered persons and Parliamentarians are strictly forbidden.
(4) An organisation or person included on the register which contravenes the provisions of the code of conduct shall be liable to civil penalties as set out in section 14.’.—(Mr Thomas.)
Brought up, and read the First time.
Madam Deputy Speaker (Dawn Primarolo)
I call Graham Allen; Ministers must wait.
Mr Lansley
I am grateful to colleagues for the two speeches on this group of amendments.
Let me start with new clause 4, moved by the hon. Member for Harrow West (Mr Thomas). The proposed new clause would require the registrar, after consultation with stakeholders including the Political and Constitutional Reform Committee, to produce a code with which all registered persons must comply or face a civil penalty. We are talking about a statutory code with a requirement for a penalty if it is not complied with. The exchanges between the hon. Gentleman and the hon. Member for North Down (Lady Hermon) amply illustrated that there is scant detail about what such a code would contain, so the amendments reveal that the Opposition intend to create not only a register of lobbyists but a full-blown general regulator of the industry. While the Government are seeking to shine the light of transparency on the key issues in lobbying and the impact on key decision makers, the Opposition are bent on regulating the lobbying industry as a whole. They would regulate the behaviour of the huge number of individuals and organisations that would be captured by the definition of professional lobbying that they suggested in Committee.
The Government recognise the industry’s efforts to improve lobbying practice by introducing its own codes of conduct and we are confident that that will continue. Those codes promote the ethical behaviour that is essential to the integrity and reputation of the lobbying industry. The voluntary, self-regulated codes contain laudable principles and good practice guidance, but their translation into statute is hardly sensible—nor is it feasible. The experience of regulators in other jurisdictions illustrates clearly that statutory codes of conduct for lobbying are effectively unworkable and unenforceable.
Mr Lansley
I was going to answer the point that the hon. Gentleman made earlier, so let me give him an example and then I will let him intervene.
The consequence of seeking to regulate the whole industry is that in Congress the point has been reached at which there is an 894-page manual. Is the hon. Gentleman seriously proposing that we should go down that path, having a similar relationship between the lobbying industry and this Parliament to that in Congress?
Mr Thomas
The right hon. Gentleman is now making a different point from that made by the hon. Member for Norwich North (Miss Smith) in Committee. She argued that there were plenty of examples of statutory codes of conduct that were not working. The right hon. Gentleman is making a different point and I would gently suggest to him that the experience from Canada and Australia, where statutory codes of conduct exist, suggests that such codes can be made to work perfectly effectively.
Mr Lansley
I do not agree. The consequence of large-scale statutory codes is considerable expenditure.
Let us consider the simple questions to which we have no answers. The new clause states only that there should not be inappropriate financial relationships; the hon. Gentleman does not tell us what those inappropriate relationships are or explain why they are not already prohibited by instruments such as parliamentarians’ codes of conduct, which we discussed earlier, or laws on bribery and corruption. How would the provisions of the code be enforced? What resources would the registrar require to monitor and enforce compliance, particularly if seeking to enforce compliance against imprecise, vague and wide-ranging—understandably so, as far as the voluntary code is concerned—principles and prescriptions? Trying to set up such a structure of enforcement in relation to such a wide-ranging code for such a large number of people is completely unsustainable. Who would foot the bill? The bill for the measures in Canada is equivalent to £3 million and this proposal would clearly cost much more. In any case, the Canadians go about things in a different way from us. It is not a case of adopting what they do, because they do not take our approach. We set out, through the transparency of Ministers’ and permanent secretaries’ diaries, to approach the issue in a completely different fashion.
We are not trying to set up a register that controls what the lobbying industry does. Our approach recognises that lobbyists have a job to do. They are engaged in a self-regulatory structure. We are not trying to introduce a bureaucratic monster to oversee all that. We are clear that the key decision makers should be transparent about who they are seeing, and that—as the Bill would now ensure—where it is not transparent, in that they are meeting someone who is representing, as it were, their own interests, where they meet consultant lobbyists, those consultant lobbyists, through the register, are required to disclose who their clients are.
I am afraid that new clause 4, and much of what we heard from those on the Labour Front Bench and from the hon. Member for Nottingham North (Mr Allen), suggests that either they are not clear about what problem they are trying to address or they are simply trying to create a bureaucracy. We are not in that business. They are trying to create something that the Government have been very clear we do not want to create. We believe in transparency. We do not believe in the large-scale regulation that they are pursuing.
Simon Hughes
Like my right hon. Friend, I am keen that we do not have some great bureaucratic invention to deal with this issue. There is one thing I do not understand, however. If a public relations company that has 500 clients comes to speak to my right hon. Friend or a Secretary of State or a permanent secretary, what would be the difficulty in making it a requirement that the company makes it clear which client it is coming to speak on behalf of? Otherwise, one does not get very much further by just knowing which company is making the representation.
Mr Lansley
My right hon. Friend, characteristically, makes a better point than those on the Opposition Front Bench did. It is consistent with the approach that we are taking, but I respectfully suggest that we should not include such a requirement in the Bill, as amendment 100 seeks to do, because the register is not the place where those meetings are recorded. They are recorded in ministerial diaries. The issue is getting transparency in ministerial diaries.
We are the first Government to publish details of those meetings and other transparent relationships. We have extended the scope of that, not only in lobbying but in relation to the media; we publish that information. The Minister of State, Cabinet Office, my right hon. Friend the Member for Tunbridge Wells (Greg Clark), picking up the work undertaken by his predecessor, my hon. Friend the Member for Norwich North (Miss Smith), is engaged in ensuring that information provided by Departments provides sufficient detail about the subject of meetings. If one has the register, which discloses who the consultant lobbyist is and their clients, and Ministers’ diaries, which are clear about the purpose of a meeting, one should be able to see the character of the relationship —who is lobbying whom, and for what.
Simon Hughes
I completely understand that, and I commend the Government, as my right hon. Friend knows, for the change in the rules about the publication of diaries, which is very welcome. May I ask him a practical question, which may answer my concerns and those of others? What will be the intended delay between the meeting and the diary publication or the appearance in the register? People often need that knowledge soon after the event—not a long time after, when it may be too late to be relevant.
Mr Lansley
We have already made a commitment that Ministers’ and permanent secretaries’ diaries for each quarter would be published by the end of the subsequent quarter.
Mr Lansley
That brings us to some of the other amendments. We are clear that the key decision makers are the gap in terms of transparency. We want to be clear whom the key decision makers are seeing. There are plenty of amendments on that subject in the next group, so I will not answer that point. It would of course be possible to extend that to lots of other groups, but we should consider the bureaucracy that would be created by doing so, by imagining 5,000 senior civil servants all publishing their diaries.
Mr Lansley
Let me make some progress, then I will give way again. There are quite a number of amendments in the group and I want to address each of them briefly.
New clause 6 requires that the registrar provide an annual report to the Political and Constitutional Reform Committee. The Chair of the Committee did not, I think, refer to new clause 6, and I am not aware that the Committee made such a proposal. If the Committee wants to call the registrar to give evidence to it on an annual basis, it is quite within its rights to do so, and the Government would be happy to support that, but we do not believe it is appropriate to set this down as a statutory requirement.
Opposition amendment 84 requires the Minister to consult the PCRC before dismissing the registrar—another interesting proposal, but I am not sure that the amendment adds anything of substance to the Bill. In essence, this is part of the same issue as the independence of the registrar, which I believe is already made clear in the wording of the Bill. The registrar will be independent of the lobbying industry and the Government and will have a clear remit to operate independently of both. The Minister will be able to dismiss the registrar only when he or she is satisfied that the registrar is unable, unwilling or unfit to perform the functions of his or her office, and any decision by the Minster could be challenged in the usual way via judicial review.
Opposition amendment 85 removes the requirement that lobbyists who have no business address must register their private residence. I can understand the concern to protect the privacy of individuals on the register, especially given the more onerous and invasive reporting requirements proposed elsewhere by the Opposition, but I am not sure that the removal of the requirement to register an address is a helpful one. A registered address is critical if the registrar is successfully to issue information notices, investigate compliance, and serve penalty notices. The great majority of consultant lobbyists will have one or more dedicated business addresses, so no issue will arise. The handful of individual consultant lobbyists who have no separate business address—I recognise that there is no requirement to register for those who do not meet the threshold of undertaking a business that is VAT-registered—can choose to obtain such an address and use that or they can submit their personal residential address. I therefore do not agree that this step is a wise one.
Given the Opposition’s concern about privacy, do they really want to require, as proposed by their amendment 86, that every organisation that lobbies must declare the names of all members of staff employed? Let us take an example. Given the way in which other Opposition amendments would apply, if an academic were engaged in contact with a Minister in pursuance of a subject on which they had undertaken research, the Opposition’s definition—not ours—would require that to be registered, whereas we would say that that was incidental and that the academic was not engaged mainly in lobbying activity. The Opposition would say that it should be included and, by extension, the names of everybody who works for the university should be entered in the register. That is unrealistic and makes no sense.
Amendments 87, 89 and 90 would amend the information requirements outlined in clause 4 to require that lobbyists also disclose financial information. Amendment 100, as I mentioned earlier, would alter the information requirements outlined in clause 4. We have been very clear that the objective of the register is the identification of the interests that are being represented by consultant lobbying firms. Lobbyists should therefore be required to disclose their clients. We are not persuaded that the burden of providing further information that would be imposed on the industry and the regulator is justified by the limited insight that it would provide. One can readily envisage the administrative nightmare that would result from trying to determine the costs of lobbying activity, especially where this had to be disaggregated from wider business activities. Requiring the disclosure of financial information relating to lobbying activity is not, in our view, proportionate to the problem identified.
Amendment 92 makes it explicit that the registrar may publish the register in written form. I can assure the Opposition that this is already implicit in 7(2), which states that the register may publish the register
“in such other form or forms as the Registrar thinks appropriate.”
The registrar can do whatever is necessary, including publishing the register in written form.
Lady Hermon
I am grateful to the Leader of the House for allowing me to intervene, even at this stage. Before he concludes his comments rejecting amendment 100, may I remind him of his opening remarks in response to this group of clauses? He said that the Government intend to shine the light of transparency—a great phrase—on lobbying, and we say, “Hear, hear” to that, but I cannot understand his justification for not requiring the subject matter of a meeting to be registered. He suggested that that is publication of the diaries of Ministers and permanent secretaries, but the Leader of the House will know better than any of us that the definition of permanent secretary includes the DPP, the chief medical officer and the chief executive of Her Majesty’s Revenue and Customs. Are they obliged to publish their diaries?
Mr Lansley
The point I was making is that the register that the Bill establishes is not where meetings will be listed. Meetings will be listed in the diary of the Minister or the permanent secretary. Consequently, in so far as it is appropriate for a meeting’s character to be disclosed, it will be disclosed in the ministerial diaries. To try to construct in the Bill the idea that the subject of meetings will be disclosed in the register would be to misunderstand what the register does. The register discloses the clients of consultant lobbyists, not the subjects on which they are lobbying.
Mark Durkan
The Leader of the House has still not made any convincing case for why the register should not specify the topic of the lobbying. The idea of relying solely on ministerial diaries, with people having to look up the register and then the diaries on the basis that they already have a suspicion, clearly imposes more difficulty. If this is meant to be about transparency in lobbying, why cannot there be transparency in the register?
Mr Lansley
With respect, I do not think that the hon. Gentleman was listening to my previous answer. Consultant lobbyists disclose in the register who their clients are. The diaries of Ministers and permanent secretaries disclose who they meet. If the Secretary of State for Transport meets British Airways, it is transparent that British Airways is representing its interests. However, if the XYZ airline is represented by a consultant lobbyist, the register will disclose that the airline is the client of that lobbyist, and it will be transparent through the Minister’s diary that he or she has met that lobbyist and, as a consequence, it will be clear who they are meeting. The issue is not whether there is transparency but the mechanism by which transparency is delivered. It is delivered through the publication of Ministers’ diaries, and the gap in transparency that we have identified, and which the Bill remedies, is the gap in understanding, if Ministers or permanent secretaries meet consultant lobbyists, who their clients are.
Mr Lansley
No, I have answered that question.
Amendment 93, tabled by the Opposition, would remove clause 10. I must confess that I am still bemused. We made it quite clear in Committee that the effect of doing so would be that in response to an information notice a person would not be required to provide any self-incriminating information, including in relation to any offence committed in relation to the register itself. The amendment would entirely undermine the enforcement regime relating to the register.
The Opposition’s amendments 94, 95 and 96 would make it an offence for consultant lobbyists to report misleading information. Although the intention behind the amendments is undoubtedly sound, I do not believe that they would have a substantive effect, as in order to be misleading the information must be either inaccurate or incomplete, and that is already covered by the clause.
The Government’s amendments in this group include amendment 31, which will allow the registrar to make direct payments to staff who have been seconded to support the office holder in addition to or instead of payments being made to the Minister or other person who seconded staff to the registrar. The registrar can also make payments to Ministers or other persons who supply accommodation or other services to the registrar under the general provision to make arrangements set out in paragraph 8(1)(b) of schedule 2.
Clause 4(3) outlines the client information that should be included in each register entry. Amendment 17 clarifies that if the registered consultant lobbyist has not engaged in lobbying or been paid to engage in lobbying during that quarter, its register entry for that quarter will contain a statement to that effect, as set out in clause 5(5), in lieu of any client information.
Amendments 18 and 19 will ensure the clarity and consistency of references to the periods for which consultant lobbyists are obliged to provide information. In the existing Bill, the three-month period prior to their initial registration about which consultant lobbyists must provide information in their register entry is called the “relevant pre-registration period”. This amendment changes the references to that phrase in clause 4 to the phrase “pre-registration quarter”, reflecting the references to the quarters for which client information is required after registration and ensuring consistency across the Bill. I hope that is clear.
Amendment 20 will ensure that the parameters of the pre-registration quarter are unambiguously defined as the three months ending on the date on which the person applies to be registered. The amendment changes the definition of the relevant pre-registration quarter period from the period of three months preceding the application date to the period of three months ending on the application date.
Amendments 21 and 22 will make it clear that register entries must include the names of the person or persons on whose behalf lobbying is undertaken, reflecting the reality that consultant lobbyists are likely to be engaged by more than one person during a quarter, and ensures consistency across the provisions of the Bill.
Amendment 23 clarifies the registrar's duty to update the register in accordance with the information returns submitted by consultant lobbyists by removing the unnecessary reference to “receiving the information return” which is covered in the following sub-paragraph.
Amendment 24 makes clear the separation of what the registrar is required to do, and what it may do. The registrar must publish the register in accordance with requirements set out in section 6. The registrar may also publish entries in respect of persons who were but are no longer entered in the register, but this is not a subset of its requirements under section 6.
Amendment 25 makes it clear that it is an offence for a “registered” person to carry on the business of consultant lobbying if they have submitted incomplete information to the registrar. This puts beyond any shadow of a doubt the class of person that is caught by this provision.
Amendment 26 will clarify that a person guilty of an offence relating to the register is liable to a fine, whether they are summarily convicted or are convicted on indictment. If convicted in a Crown court, the fine will be unlimited. If convicted in a magistrates court in Scotland or Northern Ireland, the fine will not exceed the statutory maximum. If convicted in a magistrates court in England or Wales before the coming into force of section 85 of the Legal Aid, Sentencing and Punishment of Offenders Act 2012, the fine will not exceed the statutory maximum; if convicted after the coming into force of that Act, which removes the statutory maximum in England and Wales, the fine will be unlimited.
Amendment 27 further clarifies that an appeal against an information notice or the notice or imposition of a penalty can be heard either by the first tier tribunal or, if so determined by or under the tribunal procedure rules, the upper tribunal.
When the time comes, I would welcome the opportunity to move the Government amendments standing in my name.
Mr Thomas
We have had a very good debate on these amendments but, sadly, what has become clear is that whenever meaningful transparency has been suggested, the Leader of the House has cited the danger of a huge level of bureaucracy as the reason real transparency cannot be achieved. This Bill is badly titled; instead of the Transparency of Lobbying Bill, it would be better and more accurate to describe it as a little bit of transparency on a little bit of lobbying Bill.
The Leader of the House did not revert to the attempt made by the former Minister, the hon. Member for Norwich North (Miss Smith), who suggested that there were plenty of examples of countries around the world that had statutory codes of conduct that suggested that such codes were unworkable. The one effort that the right hon. Gentleman made was to cite the American political system as being a reason that a statutory code of conduct would not work here. Not even the scale of incompetence that the coalition parties are managing to achieve in government comes close to the scale of dysfunctionality in the American political system at the moment. It is not a meaningful comparison to cite the American code of conduct; more sensible would have been to point to the examples of Australia and Canada, as I sought to do. Experience there does show that a statutory code of conduct can be made workable and enforceable, and could help to achieve the objective of delivering real transparency when lobbyists meet Ministers and indeed members of the House of Commons. A clear, basic code of conduct would avoid confusion over which voluntary register was the best one. It would offer clarity to the House and, indeed, to those in Government about the standards expected and required by those lobbying. I urge the Government to accept, even at this late stage, the benefit of having a code of conduct, even for the tiny number of lobbyists their Bill will cover.
My hon. Friend the Member for Nottingham North (Mr Allen), in a very well-judged speech, highlighted the number of loopholes that exist in the Bill. He cited the balance of evidence presented to the Political and Constitutional Reform Committee, suggesting that further information should be included in the register, including the scale of financial information, the subject matter of the lobbying, and the purpose of the lobbying activity. He noted that representations for that additional information had come to the Committee from a range of organisations as diverse as Spinwatch all the way through to the Royal College of Nursing.
Our amendments sought to inject that greater level of information and transparency into the process. I deeply regret that even at this late stage Ministers are not willing to consider even their own versions of the amendments. I therefore seek the opportunity to press the new clause to a vote and urge all Members of the House to support it.
Question put, That the clause be read a Second time.
The House proceeded to a Division.
Paul Flynn
I would not want to deny the hon. Gentleman—a possible future Deputy Speaker of the House—that privilege. I believe that he is one of the candidates. It is fascinating to get these invitations. One from an hon. Lady said, “Vote for me and you won’t have to put up with me on the Benches. I will be silenced.” Therefore, we are voting for the one we most want to silence as a Deputy Speaker and we think is most loathsome. It is a hard task, because we have a rich choice.
We were waiting for the Bill. We were promised it on 10 March 2010. This was going to be the great crusading Parliament against lobbying. This was going to be the new scandal. Nothing happened: comatose for nearly three years. Suddenly there was a scandal on the way and the Government decided to act. The Bill was conceived in haste. It was written in fear and in malice. The legislative process has been conducted with incompetence. These modest amendments will make some improvements but it will be one of the many Bills that will go through the House. We are very poor at legislating.
We should look at the history. During the 13 years of the Labour Government, 75 Bills went through all their stages and were never put into practice. A permanent secretary has that figure. We have this disease. If we see a problem, what do we do? Dogs bark, children cry, politicians legislate. This is a piece of utterly futile legislation. It does not deal with the problem. It misses 97% of the problem but it takes a spiteful side-swipe at bodies that are blameless such as charities and trade unions. The Government are trying to save corporate lobbyists, who are doing the greatest damage, from the bureaucracy, and they have hit out at people who are doing no damage whatever. They are reducing bureaucracy for one and increasing needlessly bureaucracy for the other. This is an awful Bill.
Mr Lansley
As has been demonstrated, the effect of new clause 7 and the other amendments proposed by the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) would be to bring into the register of lobbyists not just consultant lobbyists but all those who are in-house lobbyists. She knows that the approach we have taken is not to seek to create a register of everyone who engages in lobbying, which would be a very long list, but to ensure that the details of the meetings of the key decision makers—Ministers and permanent secretaries—are published and by extension we understand who is lobbying whom as far as the key decision makers are concerned. She rather shot her own fox by talking about the big six energy firms. The reason that earlier this week The Independent was able to run the story about the number of times that Ministers have met representatives of the big six energy firms is that we as a Government for the first time have published details of Ministers’ diaries. Putting the names of the big six energy firms in a register of lobbyists adds no information: we know who they are; we know on whose behalf they are lobbying; and we now know—as a result of this Government, not the previous Government—when they are meeting the key decision makers. That is clear. In this Bill we are extending transparency and addressing the key failing, and we are doing so not through having a large list of the kind the Opposition amendments would create.
New clause 7 proposes exceptions to the definition of those who are treated as consultant lobbyists. It may be of comfort to the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) and the Opposition that there are some sensible exclusions from their concept of lobbying, but all those sensible exclusions are already provided for in the Bill. Some of the proposed exclusions are less sensible, however. In their explanation for amendment 70, the Opposition say that they seek to remove the reasonable requirement that consultant lobbyists must be VAT-registered, which is aimed at protecting small businesses engaged in consultant lobbying, and to insert in its place a requirement that the lobbyist be a
“sole trader or company, or employee of such a person”.
The amendment therefore excludes charities, partnerships and any other type of body a lobbyist might be. The Opposition would therefore reduce the effectiveness of the register in relation to consultant lobbyists.
The Chair of the Political and Constitutional Reform Committee said that we took a long time in responding to its report. That was because it was arguing for this large-scale regulatory structure for lobbying. We looked carefully over a substantial period of time at whether satisfactory definitions could be achieved, and they cannot. We would end up with very large-scale registers that tell us very little that is new.
Opposition amendments 73 to 76 and 83 would alter the definition in clause 2 with the intention of extending the scope of the register to those who lobby each of the many categories of people, including special advisers, senior civil servants, Members of either House of Parliament, parliamentary staff and non-departmental public bodies.
Amendment 97, tabled by members of the Select Committee, offered a more limited expansion of the scope, aimed at including special advisers, the senior civil service and, in the case of amendment 98, parliamentarians. Amendment 116, in the name of my right hon. Friend the Member for Bermondsey and Old Southwark (Simon Hughes), would extend the scope to special advisers.
The register is designed to complement the existing Government transparency regime whereby Ministers and permanent secretaries proactively publish details of their meetings with external organisations. It is intended to focus on communications with the key decisions makers in Government, not on the large-scale surrounds of people who are intermediaries. There is a question as to the value of increasing the scope of the ministerial transparency regime. Is there really value in collecting and publishing data on every meeting of every one of almost 5,000 senior civil servants?
Amendment 71 would add the term “electronic” to the concept of written communications. I can assure the House that such communications—including a fax, an e-mail, a text message, and even a personal tweet or BlackBerry Messenger conversation—are already currently captured by the definition of communications.
Turning to European legislation, amendment 72 would not be effective in the terms in which it is drafted. We do not make European legislation, but lobbying in relation to it or lobbying the policy of the Government in relation to it would be captured.
There is one Government amendment in this group: amendment 30. It provides that a person does not fall within the scope of the definition of consultant lobbyist if they carry out a mainly non-lobbying business and any consultant lobbying communication they make is incidental to those activities. Paragraph 3(2) of schedule 1 defines non-lobbying activities as any activities other than the making of communications about policy, legislation or contracts and tenders and so forth to any Executive, including the UK Government, the devolved Administrations, UK local government, any national Government, and any institution of the EU. This amendment will clarify that the reference to the lobbying of the Northern Ireland Executive in paragraph 3 includes the lobbying both of Ministers and their Departments. When the time comes, I shall wish to move that amendment on behalf of the Government, but I now give the hon. Member for Newcastle upon Tyne Central a moment to respond.
Chi Onwurah
Given this Government’s clear lack of understanding of lobbying activity, the new clause will not improve the Bill substantially and so I beg to ask leave to withdraw the clause
Clause, by leave, withdrawn.