Independent Parliamentary Standards Authority Debate
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Jack Straw
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Independent Parliamentary Standards Authority
Jack Straw Excerpts(13 years, 11 months ago)
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Mr Jack Straw (Blackburn) (Lab)
I express my gratitude to my hon. Friend the Member for Walsall North (Mr Winnick) for raising this very important issue. It is important not only to every colleague in the House, but, indirectly, to every constituent. It will become very apparent from this debate that concern about the structure and administration of the new allowance system goes right across the House. It is a matter of concern regardless of party or of previous experience. In his important remarks, the right hon. Member for Tonbridge and Malling (Sir John Stanley) said that IPSA was the first body ever to be created with power effectively to adjudicate over the conduct of Members of Parliament, and that is true. However, it is worth reflecting on why this time last year, the whole of the House of Commons, all three party leaders, and some of us caught up in a vice by those party leaders, were under such pressure to establish a separate and independent allowance system.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
I want to raise one issue that probably has not been mentioned yet. We are talking about value for money for the public purse and the taxpayer. As a matter of public record, at the moment the cost of my accommodation in London is £252.54 a month. Under the IPSA system and the proposed changes, that figure will rise to about £1,200 or £1,400 a month, so the cost to the taxpayer will be four or five times greater. Does the right hon. Gentleman think that that represents value for money?
Mr Straw
From what I have seen, IPSA itself recognises that there are a number of anomalies in the system—although I do not remotely speak for IPSA. Those include the anomaly that if a colleague lives in a second home that they now own they cannot make a claim in respect of that second home. They could, however, rent the home out to a third party and then use an IPSA allowance to rent further accommodation. That is plainly irrational and I gather that it is going to be changed.
Bob Russell
Will the right hon. Gentleman please confirm that the public anger during the last year was directed at MPs’ second home allowances and not at our staff, our constituency offices and the office costs? IPSA has created problems that were not there before.
Mr Straw
I was going to come on to that very important point.
Just to go back slightly, it is true that this is the first time that there has been a body adjudicating on the conduct of Members of Parliament. However, the reason for that is not an invention of the board of IPSA; it was because of the egregious and outrageous conduct of some Members of the previous Parliament. We know what happened. We also know that the Commons, during a period of years, although it was never presented with the full facts, failed to take—
Jim McGovern
I am grateful to my right hon. Friend for giving way. When he mentions the “outrageous conduct” of Members of the previous Parliament, does he not agree that it is a fundamental principle of British justice that someone is innocent until they are proved guilty?
Mr Straw
Of course I accept that point. The truth of the matter was—we know this—that quite a number of our former colleagues, although they were of course a minority, were being unjustifiably imaginative, to say the least of it, in their expenses claims, especially for second homes and associated expenses. Because of variable decision making by the Fees Office, bluntly the system came crashing down and confidence in the body politic was brought to the lowest ebb that I have ever seen in my political lifetime.
It was because of that situation that the party leaders agreed in May 2009 that we should set up a separate authority, and the House endorsed that decision. It then fell to me as the Justice Secretary at the time and to a team of very good officials to try to hold discussions with the other parties and to bring forward what became the—
Mr Straw
If my hon. Friend will allow me, no, I will not give way. We brought forward what became the Parliamentary Standards Act 2009, which gained Royal Assent at the end of June last year.
As my hon. Friend the Member for Walsall North and, I think, my hon. Friend the Member for Bolsover (Mr Skinner) and others have said, there was and is, I believe, widespread agreement that we could no longer continue with a system—
Mr Straw
No. We could no longer continue with a system of allowances whereby we set the allowances ourselves. And yes, my right hon. Friend the Member for Cynon Valley (Ann Clwyd) is absolutely right to say that all of us felt humiliated by that situation, and still do. It was and is a collective humiliation, but we cannot place responsibility for that on the board or the staff of IPSA. I am afraid that we have to look to ourselves.
There is now, however, this other factor, which hon. Friends and other colleagues have referred to this morning, that almost every one of those who transgressed the rules is now outside this House, so the 400 returning Members and certainly the 260 new Members are now paying the price and the penalty not for their own offences, because they have not committed those offences, but for the offences of predecessors who have now left the House. That is a point that I continually make to members of the IPSA staff and board. They have got to recognise that, collectively, the Members of the new Parliament are not the culprits; those culprits, with perhaps one or two minor exceptions, have left Parliament.
Mr Straw
I am just putting on the record what Parliament itself agreed. We then had to get an interim chief executive of IPSA appointed in September and a board appointed in November. In addition, the Committee on Standards in Public Life itself decided that it wanted to second-guess what the new IPSA board was doing. That led to further pressure on the establishment of that board. All the time there was that imperative, and I do not remember any colleague from any part of the House saying that we should not have pushed forward with that timetable to try to get the new system established, at least in embryo, by the beginning of this calendar year, with a view to it coming into force at the general election.
Jim Sheridan
If my right hon. Friend had known then what he knows now, would he have done anything different?
Mr Straw
No. If we are going to have an independent authority, we have got to give it some independence.
There are two fundamental problems. One is the structure of the allowance system that the authority has decided on; that is something that it decided on. Having done that, the second problem is the system of administration.
Mr Straw
I have only two minutes left.
So far as the structure of the allowance system is concerned, my view is that the authority has failed to take account of the reality of Members’ work and it needs to change that. It has failed to take account of the fact that we are in a wholly different position from most people, because we do not have an office provided for us; we are expected to provide that office ourselves, and we have to do so. That is why I believe the authority has made an error in assuming that a system for incidental expenses, which could operate for staff in a normal organisation, can be brought in to operate for the complete administration of an office. None of the people who are running that system has ever been in the position of having to run a complete office system altogether.
Secondly, there are major problems about the treatment of families. I have no interest in that issue; my family is grown up. But the fact that travel for spouses and children over the age of six is not properly supported is unacceptable.
I make two final points. First, on the administration of the system, I strongly believe in and support what the hon. Member for Colchester (Bob Russell) said about the importance of direct payments. There was no scandal that I can remember about the system of office administration—none whatever. It would have been sensible for IPSA simply to have taken over the direct payment system, which is transparent anyway. By the way, it is not the IT system that will stop abuse of the system in future; total transparency alone will do it. The elaborate system set up to stop abuse is not needed. Unless people are suicidal, there will be no more abuse.
As I perceive it, IPSA staff and Members of Parliament have been talking past one another. IPSA made an error in not ensuring that high-grade staff were available at an early stage to talk people through the system.
Mr Straw
No, I have no time.
I hope that all members of the board of IPSA have sought to register themselves and make claims in order to see how the system operates, rather than looking over somebody else’s shoulder. I think that that would be instructive for them. Ensuring personal contact and a phone system that is not Kafkaesque in its operation is critical, as is, above all, responding to the entirely legitimate concerns and complaints raised by hon. Members from all parties.
Colleagues may recall that an amendment to the Parliamentary Standards Act 2009 was made in the Constitutional Reform and Governance Act 2010, which was passed just before Parliament dissolved. The amendment established a general duty on IPSA to
“have regard to the principle that members of the House of Commons should be supported in efficiently, cost-effectively and transparently carrying out their Parliamentary functions.”
I hope that the board of IPSA is applying itself not only to its duties to administer the allowance system but to its clear statutory duty to support the conduct and work of Members of Parliament.