Conduct Committee

Lord Brown of Eaton-under-Heywood Excerpts

Tuesday 20th April 2021 Lords Chamber

[Lord Brown of Eaton-under-Heywood (CB)]

As many of your Lordships will know, I was a dissenting member of the committee concerning this report, and mine is therefore a somewhat unusual, perhaps somewhat delicate, position in this debate. First, let me make it absolutely plain: I have no interest myself in its outcome. Although I am of course a retired judge, it is more than 40 years since I had a private client, and never in my life have I arbitrated—and I am not starting now.

Secondly, I have a high regard and, indeed, considerable liking for the other members of the Conduct Committee, and I am certainly not about to rubbish them—only to suggest that on this particular issue, they have now come to a wrong decision and should think again. Their first thoughts were right. The original scheme was set out in our earlier report, already referred to, which I had no problem in presenting to the House in December, the chairman of the committee, the noble and learned Lord, Lord Mance, having had to recuse himself, as the House has heard. That report was strikingly different from what is now proposed. Put simply, this proposal, unlike its predecessor, would introduce an absolutist, no exception requirement of registration of any form of governmental or government-influenced earnings.

I will say a word or two about the origins of this proposal. These lie in a single paragraph of the ISC report of 2019, which noted that a number of Members of this House had business interests linked to Russia —that was the only state mentioned—and that those relationships should be carefully scrutinised, given the potential for Russia to exploit them. It suggested that the code and register should provide the necessary transparency, and then pointed out that the Commons requires registration of all payments over £100 from any employment outside the House, home or abroad, and that we should consider introducing such a requirement—essentially what the noble Lord, Lord Balfe, proposes for us today.

Finally, it suggested a foreign agents registration. I will make four quick points on that. First, I understand that a foreign agents registration Bill is now under consideration. Secondly, this House is very different from the Commons; your Lordships are not salaried or expected to work full-time for the House. Rather, we are encouraged to have a broad range of outside interests, financial and otherwise. The guide says that

“the House thrives on their expertise”

and that

“it is not only permissible, but desirable, that such Members, having declared”—

I emphasise this point—

“their employment and other interests, should contribute to debate on issues to which these interests are relevant.”

Thirdly, I suggest that most work undertaken by Members for foreign Governments is beneficial to the UK, not harmful. Members advise, for example, in the fields of good governance, tackling corruption and crime, and human rights compliance. Fourthly, whatever the outcome of this new registration proposal, there is always the clearest obligation for Members to declare any interest that could be thought to affect whatever they contemplate doing or saying in their parliamentary capacity. It is not suggested that this obligation has proved insufficient to this point.

I will briefly mention our earlier report, which I presented, in which the need for exemption was specifically recognised in cases where there is a duty of confidentiality. It was said that the Conduct Committee would consult further on what guidance to give on those exemptions. There was a consultation process, to which 42 Members responded; only three believed there should be no exemptions whatever, yet that is what this report proposes.

Annexed to the report, as noble Lords will have seen, are brief statements from the main professional legal and accountancy bodies about rules, duties and obligations of confidentiality. It is not only these professionals who have such obligations. So too do other Members who offer services to foreign Governments along the lines I have suggested, and in the defence and security field, because of contractual and commercial obligations, which are surely well recognised and which they are subject to. I hope that some of those will be explained during this debate.

Make no mistake: this report would introduce a major new strategic decision, likely bringing in its wake at some point, despite what the noble Lord, Lord Newby, said and the current disavowal of the committee, the requirement on a much wider basis to register all earnings. I cannot think of any other case where the Conduct Committee has sought to introduce a registration requirement which imposes such profound limitations on the legitimate interests and activities of a number of present Members.

Of course, one recognises the virtues of transparency and of course people have in mind at this hour the optics, with the Greensill scandal unfolding in the background, but in truth the cases could hardly be more different. That case exposes a very real and present problem and is rightly being given a lot of attention in terms of how to counter an obvious mischief. Your Lordships are being invited to approve a scheme with far-reaching consequences, with no demonstrating mischief to cure. I suggest that the transparency here, limited by those who are worried about a wider view, is being sought at simply too high a price and at the cost of too much in the way of legitimate interests which are inconsistent with obligations of confidentiality. Those interests should not be sacrificed merely on the altar of a supposed perception; in truth, that would damage the House.

In an article in last Thursday’s Times, the noble Baroness, Lady Kennedy of The Shaws—I hope she will allow me to call her a noble friend—although supporting registration is recorded as being

“prepared to ditch the requirement to register the amounts earned, saying ‘we can probably guess’.”

Registration of the amounts earned lies at the heart of this proposal and presents a real problem. Without that requirement, the proposal would be substantially less objectionable, but to achieve that modification, or indeed to deal with various other anomalies and uncertainties that may well come to light in this debate, your Lordships would need to accept the Garnier amendment. For my part, I cannot in all conscience recommend that your Lordships accept this report.