Paid Directorships and Consultancies (MPs) Debate
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Jon Trickett
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Paid Directorships and Consultancies (MPs)
Jon Trickett Excerpts(10 years, 10 months ago)
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Jon Trickett (Hemsworth) (Lab)
I beg to move,
That this House believes that, as part of a wider regulatory framework for second jobs, from the start of the next Parliament no hon. Members should be permitted to hold paid directorships or consultancies.
It is good to see your cheerful face in the Chair, Mr Deputy Speaker, although it might not last for long.
There is a compressed time scale this afternoon, so I give notice that I will not take many interventions. That is a shame because I was looking forward to them given that, until an hour ago, not a single Government Back Bencher had sought to speak in the debate. Somebody who is very mischievous said to me that that was because they were all off doing second jobs. I totally reject that suggestion. They are not making speeches because they are afraid of the argument.
I hope that the debate does not descend into the usual finger-pointing exercise. I have no interest in denigrating the activities of any hon. Member. The House should be clear that Members who have second jobs at the moment have not broken any rule of the House. I am not suggesting that anybody is less diligent as a Member of Parliament because they have a second job.
I will start the debate, by way of context, with a number: 895. That is the number of young people in my constituency who have no job, and yet here we are talking about MPs continuing to have several jobs after the general election. Some of those young people or their families might be watching our proceedings.
The Commons has always allowed MPs to have other jobs, but all rules—and above all, this rule—ought to be reviewed from time to time. In reviewing the rules, it would be better to make progress with consensus across the parties. However, let me be equally clear that if there is no such consensus, the Labour party will ensure, by the time of the election, that there will be regulations governing our candidates once they are elected.
There is a strong case for change. We have moved a long way since the time of Hugh Dalton, who reputedly visited his constituency once a quarter.
Jon Trickett
Yes, and it is said that when he arrived, it was such a special occasion that the station master put on his top hat and tails and rolled out a red carpet for the Chancellor of the Exchequer.
Jon Trickett
Yes, I get the red carpet regularly, but only on the way back out.
I will quote two Prime Ministers, neither of whom are from my party. I am not in the habit of quoting Prime Ministers from other parties, but these quotations are quite relevant. More than a century ago, Gladstone said that “an MP who does his duty to his constituents has very little time for anything else”. Of course, MPs were all men in those days. In 2009, the right hon. Member for Witney (Mr Cameron) said that it was
“necessary to demonstrate 100 per cent focus on Parliament, politics”.
We can all agree that being an MP is a profession that requires an enormous commitment of time and energy.
Jon Trickett
I will not give way yet.
Let us be honest: the demands on our time have increased dramatically since the time of Gladstone and, indeed, since 2009, when the current Prime Minister made the comments that I have just quoted. MPs are under more pressure than ever in their constituencies. Most of us spend more time than previous generations of MPs in the areas that we represent and our constituents rightly expect us to be there. I think that all Members on both sides of the House would agree that that is a positive development.
In addition to the work that we do in our constituencies, the role of Back Benchers in the Commons is changing. As reforms to the Select Committees, the modernisation of the House and the improved and increasingly intense scrutiny of legislation roll out, there is added pressure on our working week. There is also the fact that we live in an internet age of mass e-mails and 24/7 media. All that means that our work is increasing exponentially. In the mind of the public—
Jon Trickett
Hon. Members should listen to the argument. I am not making a case against any individual. Just listen to the argument and I will give way shortly. Let me make the case. In the mind of the public it is clear that there is an overwhelming mood, which amounts to an expectation, that we should be working full-time for our constituents.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The hon. Gentleman has made it clear that he is not going to take interventions at the moment. [Hon. Members: “Shame.”] No, it is up to the hon. Gentleman. I will decide whether it is a shame or not. He said that he will give way shortly. What we also do not need is a Whip on the Opposition Front Bench trying to antagonise Government Members.
Jon Trickett
Thank you, Mr Deputy Speaker. I will give way in a moment or two.
Apart from the pressure on our time, there is another issue: the deteriorating reputation of politics in the mind of the public. We all know, for whatever reason, that the public perception of our role as law-makers and public representatives has sunk in recent times to an all-time low, and we need to address that. No single reform on its own can restore the trust that we need to rebuild, but better regulation of second jobs would clearly help. Here is one reason why. [Interruption.] I will explain why if the Leader of the House can be patient for just one second. He has to hear the argument before he can rebut it. Here is a reason why that can help. The issue relates to the problem of perception—I use that word carefully—of potential conflict of interest. Our primary loyalty as right hon. and hon. Members is to promote the common good for our country and our constituents, rather than our personal, private interests.
I am not suggesting for one moment that any right hon. or hon. Member is allowing the pursuit of private interest to interfere with their duty to the wider public interest, but I am suggesting that there is a widespread perception that that is the case. In politics, as we know, perception is just as important as reality.
Jon Trickett
I will give way to the hon. Lady, but in doing so let me ask her this question. After the next election, Labour MPs will have no remunerated directorships or consultancies. Will she say the same for her party?
Harriett Baldwin
As the hon. Gentleman can see, I do not have any remunerated outside interests currently, but I did have one that carried forward after the election. He seems to making the case for separating the Executive completely from Parliament. Is he saying that none of those on the Opposition Front Bench would be prepared to be Ministers after the next election?
Jon Trickett
Let me say first that I note that the hon. Lady did not refer to the primary point, which is whether Government Members support reform. As regards the question of whether Ministers are somehow operating a private interest, that is a preposterous argument. Ministers work for the Crown on behalf of the public, because we live in a democratic society. For anybody to suggest that Ministers or a Prime Minister are somehow working for their private interests is a preposterous argument. I hope that when she reflects, she understands that that is the case.
If we stop to reflect for an instant, it is easy to understand how the perception I was describing might develop. The House will know that anyone who becomes a director of a company board, or consultant to a company, has a fiduciary duty—a legally defined concept—to that company. [Interruption.]
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We have already had the Opposition Whips intervening. I do not need the Government Whips leading the march of opposition.
Jon Trickett
Fiduciary duty requires the person who sits on a board, or who is a consultant to a company, to act in the best financial interests of that company. MPs swear an oath of loyalty to the country and to their constituents. Let me illustrate the problem as I see it. Were an MP to find themselves on the board of, or be a consultant to, a tobacco company—to take an example at random—they would be bound by a fiduciary duty to pursue the financial interests of that tobacco company. Let us imagine proposed legislation to improve public health, which would be damaging to the interests of the tobacco industry, being introduced in the House of Commons. The perception of a conflict of interest would arise in the public’s mind. An explanation would have to be sought on the way an MP chose to vote, particularly if the remuneration received—as is the case for some hon. Members—is two or three times greater than the remuneration they receive as an MP. The public’s perception would lead to only one conclusion.
It is in order to tackle this problem that my right hon. Friend the Member for Doncaster North (Edward Miliband) has taken decisive action. From 2015, all Labour MPs will be banned from having directorships or consultancies for third-party commercial interests. I hope that other party leaders will see the sense of what we are proposing and move in the same direction.
Jon Trickett
I will on that point. I invite the hon. Gentleman to set out what he would say to the hundreds of young people under the age of 24 in his constituency of Dover who have no job, when he defends the right of MPs to have several jobs.
Charlie Elphicke
I would say to them that I do not have outside paid jobs. I am a Member of Parliament. My only job is as a Member of Parliament. Why did the hon. Gentleman, in 2009, vote against a ban on outside interests? Why is he doing a U-turn?
Jon Trickett
The House will have noticed that the hon. Gentleman has not said that he will vote with the Opposition to regulate second jobs. He acknowledges that there are hundreds of young people without a single job, and he has failed to address the central moral question. I would like all-party agreement on the Opposition’s proposal, but it looks like Government Members will not respond to it.
There are those who will make the valid argument that Members of Parliament need to remain connected to the world beyond Westminster. The problem is to my mind best resolved by having a set of MPs who represent far more diverse backgrounds than we have at the moment. For example, about 60 MPs went to 13 fee-paying schools.
Helen Jones
Does my hon. Friend agree that part of the problem with second jobs and the connection with the outside world is that we seldom see Members taking low-paid jobs? They usually take very highly paid jobs. If they spent their time in their constituencies talking to their constituents, instead of working for firms in the City, they would know more about the real world.
Jon Trickett
My hon. Friend makes a powerful point. If we believe that we need to connect, then the choice of jobs that some MPs take is intriguing. I will come on to that point in a moment or two, because I have some thoughts on it. Having a more diverse set of MPs would be a better way of connecting the Commons to the world than simply saying that we should all take second, third, fourth or even fifth jobs.
I have spoken to Labour MPs who were involved in business activities before being elected and who remain closely interested in the corporate world in which they worked, but who, shortly after being elected, voluntarily ceased to take remuneration because they believed that being an MP was a full-time commitment. I have also spoken to many Labour candidates for the next election—a new generation of Labour MPs, I hope—and I have not yet met one who believes that being an MP should be anything other than a full-time commitment. As my hon. Friend the Member for Warrington North (Helen Jones) said, when hon. Members say that having a second job somehow connects them to the outside world, what they generally mean—I am not talking about everyone—is a top, well-paid job. Not a single MP has recorded in the Register of Members’ Financial Interests a second job as a manual worker, a hospital porter, a cleaner or a call centre worker.
Today’s motion deals with remunerated directorships and consultancies. Beyond those activities, the motion talks about regulating other sources of income. My right hon. Friend the Member for Doncaster North has announced that we are considering a cap on other forms of outside income, such as earnings from journalism or media appearances, that would apply to all parties. An hon. Member might belong to a profession—normally we talk about lawyers, doctors or perhaps dentists—and need to retain their professional qualifications, but I remind the House that a gas fitter also needs to do so many hours a year to retain his CORGI certificate and an electrician needs to keep in touch with the regulations of the Institute of Electrical and Electronics Engineers. Nothing we are proposing would prevent such a thing.
Sir Paul Beresford (Mole Valley) (Con)
I am interested in the hon. Gentleman’s exception. I ought to be a gas fitter; I would be better off financially than I am in my current profession. He seems fixated on the paid part. Many Members have jobs on boards and organisations that are unpaid but which occupy the same amount of time and effort as those that are paid. Is his problem with the paid part?
Jon Trickett
I think the hon. Gentleman has been persuaded by my argument and might decide to join us in the Division Lobby. I hope others do, too, because, on this question of fiduciary duty, if an MP is remunerated, sometimes very substantially, it will create the perception that they might be tempted to calculate the impact of a particular proposal on that income before deciding how to vote. I do not suggest that any MP has ever done such a thing, but in the public mind, that is a widespread view. If we cannot agree this afternoon, Government Members should at least reflect on that.
MPs’ other activities, including remunerated activities, can be taken into account in any new rules we might agree. For the vast majority of MPs, our proposals should be very simple and make no real changes to how they go about their work. Without robust regulation, however, the perception will continue that politics works for a tiny closed circle of people at the top of our society, but not for the millions of hard-working people who play by the rules yet find it increasingly hard to get by, and that brings me to the kernel of my argument. Millions of people play by the rules, but feel that they are getting a really rough deal, while also believing that there is a different set of rules for others, particularly those at the top. We politicians must take account of that public mood. It is time we stepped up to the mark. Precisely because it is we who set the rules, the rules have to apply to us above all.
David Morris (Morecambe and Lunesdale) (Con)
Will the hon. Gentleman give way?
Jon Trickett
No, I have almost finished and others want to speak.
Every single one of us feels great pride whenever we enter or leave the Chamber, and we all believe that if politics works properly, we can make our world a better place.
The Leader of the House of Commons (Mr Andrew Lansley)
The hon. Gentleman seems to be arguing that there is something requiring a remedy, but he keeps telling the House that the problem has not occurred. Does he know of any circumstances in which the problem he purports to be trying to solve has actually arisen?
Jon Trickett
As I have said many times, the problem is the public perception that when an MP is earning several hundred thousands of pounds a year from a third-party commercial operation, they will take that into account when making a decision. I do not allege that any MP has so behaved, but the public believe—[Interruption.] Government Members can protest, but they will know, assuming they knock on doors at election time—perhaps they do not—what people say about us.
Working as an MP is the highest honour a democracy can bestow on us, so there should be no doubt in the public’s mind that we are placing every ounce of our intelligence, energy and loyalty at the service of the common good, not being diverted into defending our own private personal interests. For that reason, I hope the House can have a sensible debate, not a finger-pointing one, and even at this late stage support the motion.
Mr Buckland
I do not think that is actually right, because the office of recorder was not included in the exemptions in the Constitutional Reform Act 2005, which, of course, was passed by the previous Labour Government. I make no apology for that, because I believe that individual—
Mr Buckland
I hear the words “separation of powers”, but we do not have an American system, and nor should we have. If we follow that to its logical conclusion, we turn ourselves into something not at all in keeping with the understood and learned traditions of the British constitution. It can be a good thing that several colleagues in this place have the sort of experience that I have, although I would be the last person to say that we want an identikit House full of lawyers. My hon. Friend the Member for Bracknell (Dr Lee) made a powerful speech about his medical practice, so people’s experience in many walks of life enhances our debates.
If the spasm of emotion that underlies what we hear from Labour Members is taken to its logical conclusion, the House will be diminished. Their proposal would not enhance the quality of the legislation that we pass. It would only make the public look at us once again as a rather odd set of individuals of diminishing relevance who contribute less and less to the public life of this country, so we should oppose the motion.