House of Lords Reform Bill

Debate between Graham Stuart and Nadhim Zahawi

Monday 9th July 2012 Commons Chamber

[Nadhim Zahawi]

That is exactly right. I thank my hon. Friend for that intervention. This is exactly the constitution that I believe in and this is the constitution that I will defend. This is not, as my hon. Friend the Minister with responsibility for political and constitutional reform has said, some “silly game”.

If recent events in the Arab world have shown us anything, it is that democracy is not just about holding elections. It is also about building institutions which ensure that the whole of society is represented, regardless of who is in power. The question that we should ask ourselves today is whether British society will be better represented by 360 more career politicians accountable to no one but their party.

I am not complacent about the state of our democracy. I know that Parliament currently faces a crisis of legitimacy in the eyes of the country, but the cause of that crisis is not the other place. No. It is that deeply damaging sense that politicians here, in this House, are out of touch.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

Does my hon. Friend agree that reforming the other place will not solve the problems of reforming this place? This House needs to be more effective in holding the Executive to account. Making changes down the road, with who knows what outcome, is not the answer. We must reform this House and ensure that the other House serves by revising our legislation, rather than undermining the democratic supremacy of this House.

[Nadhim Zahawi]

My hon. Friend is absolutely right. One of the reasons why we in this place are perceived to be out of touch is that people feel that we put the interests of party before those of our country, that we care more about securing a party political legacy than about growth capital for our businesses or good local schools for our children. The public want a Parliament that legislates well and in the national interest, and they want MPs who are on their side and up to the job. They do not want to see, and certainly do not want to pay for, more politicians and more party patronage.

I have conducted new scientific polling that shows that 60% of the public are opposed to spending more money on politicians and elections, yet that is what the Bill offers them. If we are really to fix Parliament, we must give it the tools to legislate better. Let us strengthen the role of Select Committees and give more time for Back-Bench business. Let us not solve the problem of a broken legislature by making it harder to legislate. Let us not inflame the deep mistrust of party politics by bringing in a system that hands more power over to the party machine.

I am a loyal critic of the other place. The White Paper states that it performs its role of scrutiny and revision with “distinction”, yet I know that there is much that we could do to improve it. We could reduce the number of peers, abolish prime ministerial patronage, remove the final hereditary peers and increase the professional expertise that already makes such a great contribution to the quality of parliamentary debate. I have argued, and will continue to argue, for all this and more, but subverting the primacy of the Commons is not the answer to reform.

The Government know that it would be impossible to write into law the conventions governing the relationship between the Lords and Commons. As a result, the only protection against legislative gridlock between the two Houses would be the good faith of the new senators. We would have to require 360 career politicians to promise not to use their new democratic mandate to oppose the will of the Commons. If one day in the future this House is legislating on military action or an emergency Budget, for example—situations in which time is of the essence—we would run the risk of a costly delay as our new senators discover the power and publicity that this mandate conferred. Of course, we could always use the Parliament Acts to ram a Bill through this new House of senators, but that hardly seems to signify a new era of democratic accountability to me. Indeed, how ironic that the supporters of a Bill for reforming our democracy are refusing to take their argument to the country.

The claim that the choice was put to the public at the general election does not hold up either. Where was the choice when all the main parties offered it in their manifestos? The polling overwhelmingly shows that an elected House of Lords is not a priority. Does it stretch belief that voting intentions may have been dictated largely by what our parties were promising to do on the economy and public services, rather than on constitutional reform? A referendum would ensure that the public have all the facts before making their choice known. In the same polling I quoted earlier, even Liberal Democrat support for these proposals fell to just 29% once the costs of elections were factored in.

I know that many colleagues will have been urged to express their concerns on Third Reading, but those suggesting that approach are being disingenuous at best. Unless a referendum clause is added now, there is no guarantee that it will be added later and, with a combination of the Parliament Acts being used and Opposition Members saying that they will support the Bill on Second and Third Reading, there is little chance that a Back-Bench amendment would be successful. The only way that the views of hon. Members would be heard and debated properly is if we vote against the programme motion and, in the absence of a referendum clause, vote against the Bill’s Second Reading. Anything else is merely a protest vote, not one that will make a difference.

Finance (No. 4) Bill

Debate between Graham Stuart and Nadhim Zahawi

Wednesday 18th April 2012 Commons Chamber

[Mr Stuart]

I am grateful to the hon. Gentleman, although properly designated permanent homes will continue to be VAT-free. We are talking about static holiday homes that are not supposed to be a main residence, although there are people in my constituency and elsewhere who are occupying under false pretences, whether misled by the owner of the park, as sometimes happens, or having allowed themselves to be misled.

[Nadhim Zahawi]

I am listening carefully to my hon. Friend. What would he say to a dealer and park operator in my constituency who said that we cannot defend the anomaly for what is deemed a luxury purchase? They want a bit more time for consultation and forward planning. The idea that a towable caravan is VATable, but a static one is not is indefensible.

[Mr Stuart]

In truth, if we were starting with a blank sheet the tax system would look nothing like it does today, but we are not starting with a blank sheet. We have an industry with the characteristics I have described, yet at this of all times we are about to introduce VAT. Will it raise £500 million or £1 billion towards the massive deficit left to us by Labour? No. At best, it will raise £45 million a year while damaging the economy in east Yorkshire and in rural areas across the UK. As a practical politician, keen though I am on tax simplification, it is not obvious to me that this particular simplification is justified now. It is not, and the Government should think again.

The Government are consulting; they accept that they do not have all the answers and the proposal is out for consultation. The shadow Chancellor may not take it at face value that the Government are serious and that they are consulting properly, but I do. I have met the Chancellor and he has told me that that is the case, so I call on the Government to listen to the representations from the Chamber today and to those that will come from the industry over coming days and weeks, and to think again. Given the appalling inheritance from the shadow Chancellor, there is no embarrassment in looking hard at every area. There is a good intellectual case for the proposal in theory, but in practice it is a bad idea. It will not bring in enough money. It threatens many jobs and it should be rejected, as I am sure it will be.