Parliamentary Lobbying

Alun Cairns Excerpts

Wednesday 2nd November 2011 Westminster Hall

[Paul Flynn (Newport West) (Lab)]

Thank you for calling me to speak, Mr Robertson.

“It’s an issue that crosses party lines and has tainted our politics for too long...an issue that exposes the far-too-cosy relationship between politics, government, business and money. I’m talking about lobbying—and we all know how it works. The lunches, the hospitality, the quiet word in your ear, the ex-ministers and ex-advisors for hire, helping big business find the right way to get its way. In this party, we believe in competition, not cronyism. We believe in market economics, not crony capitalism. So we must be the party that sorts all this out. Today it is a £2 billion industry that has a huge presence in Parliament… I believe that secret corporate lobbying, like the expenses scandal, goes to the heart of why people are so fed up with politics. It arouses people’s worst fears and suspicions about how our political system works.”

All those words were from our Prime Minister when he was in opposition.

The purpose of today’s debate is to ask how far we have got. How far has the Prime Minister delivered on those promises? The political class is probably less trusted than at any time in history. After the expenses scandal, the public have the right not to trust us. They will look at what we do and will almost always reach the worst conclusion on our motives. It will probably take at least a decade for MPs and for politics to win back the trust and confidence that we enjoyed in the past.

What have the Government done in their 18 months in power? They certainly promised, in the coalition agreement, a compulsory register of lobbyists, but progress has not been promising. All parties promise to end the excesses of lobbyists when they are in opposition. In government, both the Tories and Labour have bottled it.

The reason why the previous Government did not progress on instituting reforms was revealed in a frank interview by a former Cabinet Office Minister, who said it was because he and the Government were lobbied. We members of the Public Administration Committee were also lobbied, and we made the point that the people we had before us, giving their excuses as to why there should be no interference and why they should carry on in their own way, were professional persuaders and, in many cases, professional deceivers. They had to present the best case, and of course they were brilliant at doing that, because they train people on how to give evidence to Select Committees.

Thank goodness that the Public Administration Committee took a stronger line; its recommendation was that we need more safeguards to cleanse the parliamentary stable. We were short of a smoking gun when we made our report in January 2009, but smoking guns appeared within weeks; there was the sting involving the four Members of the other place and the “cash for legislating” campaign, and the extraordinary, shaming episode of politicians for hire. A group of distinguished politicians with great reputations were shown on television putting their integrity and reputation up for sale for a certain amount of money. Potentially, that episode was a greater scandal than the expenses one, but as far as I can see, we are making virtually no progress on improving that situation.

[Alun Cairns (Vale of Glamorgan) (Con)]

I congratulate the hon. Gentleman on securing such an important debate. The definition of lobbying is difficult to grapple with when drafting legislation. Where would he place trade unions? Does he consider them lobbyists?

[Paul Flynn]

The answer is yes. Trade unions are lobbyists, as are charities and all kinds of bodies.

The main argument that was made to Labour Cabinet Office Ministers is presumably the same one that lobbyists are making to the present Minister. Lobbyists find it impossible to defend the existing secrecy and the fact that large organisations and rich and powerful bodies can buy access to the Government—that is indefensible, and no one would pretend that it can be right. As that argument does not work, they have invented a new one about how reform will upset all the good people—the nice, friendly, cuddly charities and the trade unions—who will also be damaged. That was the main thrust of the argument used against the previous Government to undermine reform.

I am sure that the Minister will be happy to tell us how many meetings he has had with lobbyists. How much has he been lobbied?

--- Later in debate ---

[Paul Flynn]

Indeed, it is not. That, of course, goes on as part of the system. Lobbying lubricates the parliamentary system, and always has. We lobby and our constituents lobby; of course that goes on. We are against what the Prime Minister has called “corporate lobbying”. Those who engage in it are the people who are potentially the most damaging: those who are seeking contracts, but do not want to do it on the basis of open tendering, and instead want to go behind the scenes to have secret meetings with Government. Some extraordinary decisions have been taken by all Governments on the award of contracts.

We want to make sure that no Minister’s judgment will be distorted by the possibility of the revolving door. It is extraordinary how, shortly after retiring, former Ministers find lucrative jobs with companies that they once dealt with as Ministers. When a contract has been awarded—sometimes for billions of pounds—who is to say that no one tipped anyone the wink by saying, “If you go for company A rather than B or C, we’ll make sure you are looked after, and get your hacienda in Spain. You will have a lucrative job in retirement”? There are many examples—hon. Members may be aware of them—from all Governments of the revolving door after Government, and the possibility that Government influence has been used.

The problem is not that those concerned are doing well out of their contacts, or are sullying their integrity. The problem is that the decisions they take in Government may be corrupted by the prospect of future employment and riches. There are strong cases for believing that that has happened, and might happen again. Unless we can jam the revolving door and bring reform, that will continue. We cannot reform the system without transparency.

[Alun Cairns]

In 2006 there was a proposal to amend the Bill that became the Companies Act 2006, which would have got a handle on how much companies spend on lobbying. The hon. Gentleman voted against the amendment. Is that an inconsistency, or has he changed his mind since then?