Committee on Members’ Allowances

Adam Afriyie Excerpts

Thursday 7th July 2011 Commons Chamber

[Mr Heath]

The motions would amend the terms of reference of the Committee on Members’ Allowances, in advance of its review of the operation of the Parliamentary Standards Act 2009. Earlier, Madam Deputy Speaker, you may have heard my right hon. Friend the Leader of the House say in business questions that he would find it very difficult to find additional time to debate the matter before the recess, but by happenstance we now have adequate time to do the job today. I am extremely pleased that that is the case.

On 12 May, the House gave an instruction to the Committee on Members’ Allowances to review the 2009 Act,

“giving due consideration to ensuring:

(a) value for money for taxpayers;

(b) accountability;

(c) public confidence in Parliament;

(d) the ability of Members to fulfil their duties effectively;

(e) fairness for less well-off Members and those with families; and

(f) that Members are not deterred from submitting legitimate claims.”

The debate was initiated through the Backbench Business Committee by the hon. Member for Windsor (Adam Afriyie), who I am pleased to see in his place. Following a good debate, the House agreed to the instruction without a Division.

Since May, the Government have been in discussion with colleagues in the House on changes to the terms of reference of the Committee on Members’ Allowances, given its change in remit. I express my gratitude to my long-suffering right hon. Friend the Member for Uxbridge and South Ruislip (Mr Randall) for his efforts in seeking consensus on a sensible approach.

One of the Government’s proposals following consultation was that the Chair be removed from the list of Select Committee Chairs receiving an additional salary, which was approved by the House on Tuesday 5 July. There are two outstanding motions that have previously been objected to and remain to be approved. Motion 9 would amend the Standing Order relating to the Committee by changing its name to the Committee on Members’ Expenses. That terminology reflects the fact that the current scheme, operated by the Independent Parliamentary Standards Authority, is an expenses-based system, not an allowances-based one.

[Adam Afriyie (Windsor) (Con)]

I echo the Deputy Leader of the House’s thanks to my right hon. Friend the Member for Uxbridge and South Ruislip (Mr Randall) for his help in ensuring that we bring this matter to a swift resolution.

The instruction issued to the Committee on 12 May was that it review the 2009 Act, which does not relate directly to expenses. My concern is that calling it an expenses Committee and limiting its remit would in some way prevent it from doing its work of reviewing the 2009 Act. If the Deputy Leader of the House can confirm that the change will in no way narrow the Committee’s ability to do its work of reviewing the Act and producing recommendations, there will be very little to detain us.

[Mr Heath]

I am extremely grateful to the hon. Gentleman for that intervention. Let me make it absolutely clear to the House that the change in wording in no way restricts the ability of the Committee to consider the issue of allowances as it relates to the review of the operation of the Act. The Committee will be free to consider the issue of allowances and to make recommendations as it sees fit. The Government have no intention of seeking to restrict the Committee’s remit in the way that is feared.

--- Later in debate ---

[Mr Heath]

It is probably not helpful for me to rehearse the subject matter of considerations that will clearly take place in the Committee. I do not speak for IPSA, but it has made it very clear that the current system is one of expenses, whereby Members are reimbursed for costs that they can prove they have incurred. The previous, discredited scheme was one of allowances, whereby Members were allowed to claim, in many cases, with no proof of actual expenditure. I repeat that changing the title of the Committee would not prevent it from proposing that IPSA should introduce a new system that includes an element of allowances, but it would be better if the Committee’s title actually reflected the scheme that is in operation rather than one that is not in operation.

[Adam Afriyie]

From the reassurance the Deputy Leader of the House has given, I am satisfied that the remit of the Committee and the review will not be restricted, and we can look at everything and come to a calm, considered conclusion. My final question is on the timing of the formation of the Committee, given that we have had a 49-hour stutter in the proceedings.

[Mr Heath]

I am grateful to the hon. Gentleman for what I take to be an indication that he will not press his amendment. That is good, because it means that everyone has the same understanding of what we are doing. In terms of timing, I know that the Leader of the House is champing at the bit to take the necessary steps to allow the Committee of Selection to establish the Committee. Indeed, I think it would probably have already been done had it not been for the delays—albeit quite proper delays—occasioned by the objections and amendments that have been tabled. If we can dispose of this business today, I have every confidence that the Committee will be up and running at a very early date. We will then be in business, which is what the hon. Gentleman wants.

[Adam Afriyie]

I appreciate that one can never predict the future, but can the Deputy Leader of the House say whether he expects that the Committee will be formed this side of the recess?

[Mr Heath]

I think that we can do even better than that. I shall make no further prognostication, but it will certainly be this side of the recess.

[Adam Afriyie]

Then I can say on my own behalf, and possibly on behalf of others, that I will not press my amendments. I thank the Deputy Leader of the House for his assurance and I thank the Leader of the House for the calm and considered way in which he has approached the issue.

[Mr Heath]

I am extremely grateful and I hope that, subject of course to the will of the House in approving the recommendation by the Committee of Selection in due course, we will be able to make quick progress.

Motion 10 asks the Committee to report back to the House on the issue tasked to it by 31 December 2011. That date allows the views of the Committee to be considered to a time scale that fits in with the next annual review of the expenses scheme by IPSA, which is expected early next year. A delay in reporting risks the ability of IPSA to consider, consult on and implement in an orderly way any changes that may be proposed. I gather that we may not now have a Division on the amendment, which I am very pleased about. Otherwise, we might have a delay that would obstruct the work of the Committee.

The House agreed on 12 May that a review of the operation of the Parliamentary Standards Act 2009 should take place. The Government are keen that the Committee is set up without any more unnecessary delay and gets on with the important work that the House has tasked it with, and I commend the motions to the House.