The Economy and Living Standards Debate

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Department: HM Treasury

The Economy and Living Standards

Lord Goldsmith of Richmond Park Excerpts
Thursday 12th June 2014

(9 years, 11 months ago)

Commons Chamber
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Lord Goldsmith of Richmond Park Portrait Zac Goldsmith (Richmond Park) (Con)
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I am pleased that the debate is about living standards because it gives me an opportunity to make the link between rising living standards and improved democracy. That link has been made many times before, notably by the celebrated Power commission, later by the economist Richard Layard, and later still in a very wide-ranging study by Harvard university. In their different ways, they all established that rising living standards boost the public appetite for democracy, and that boosted and strengthened democracy in turn stimulates an increase in and boosts living standards. The link is unavoidable.

One element of the Queen’s Speech is a commitment to introduce a recall system. In theory, that would certainly improve our democracy and therefore lead to rising living standards. I say “in theory” because the Government’s current proposal falls so short of genuine or meaningful recall as to be meaningless. However, the House will at least have the opportunity to make profound amendments to the Bill, and I very much hope that it does.

Recall was promised by all three parties before the last election. They felt obliged to make that promise on the back of the expenses scandal that rocked the House, and it presented an easy, democratic and simple solution. Effectively, recall means enabling voters to remove underperforming MPs if at any time they lose the confidence of the majority of their constituents. It could not be more straightforward: if enough constituents sign a petition in a given period of time, they earn the right to hold a referendum to ask whether constituents want to recall their MP, and if a majority want to recall their MP, there is a by-election. There is a natural safeguard in that the threshold would, in an average constituency, require 14,000 constituents actively to visit the town hall and sign a petition during an 8-week period. Recall would put people in charge, allowing them to replace their MP if a clear majority want to do so.

The public understood that they had finally been promised a reform that might empower them, but then the election happened. I am afraid to say that the Labour Opposition went quiet on the issue, and the coalition Government began to weave small print through their promise. The current proposal is for a form of recall that can happen only by permission of the Standards Committee, and its criteria are so narrow as to make it entirely meaningless.

People are already angry with politicians—the signs are everywhere—but hon. Members should try to imagine how voters will react when they discover that they have been duped by this pretend recall Bill, this illusion of reform. It is extraordinary that even if the Bill becomes law, an MP could switch parties, fail to turn up once to Parliament or even go on a two or three-year holiday without qualifying for recall. At the very first scandal, voters will learn that they have been tricked. The anger that they feel will dwarf—

Eleanor Laing Portrait Madam Deputy Speaker (Mrs Eleanor Laing)
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Order. The hon. Gentleman, with some ingenuity, has done well to keep in order and speak to the amendment. I trust that, in the final minute of his speech, he will conclude with reference to the specific matters in the amendment.

Lord Goldsmith of Richmond Park Portrait Zac Goldsmith
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I will certainly do my best, Madam Deputy Speaker.

Even if people do not realise it yet, at the very first scandal, they will realise that they have been duped. Even before the Bill has been put to the test, 170,000 people have signed a petition saying that they want the real deal—not this thing that the Government are offering. Unlock Democracy has said that, given a choice between this Bill and no Bill, it would go for no Bill, because it thinks that the Bill represents a step back.

I understand why the Government have done this. The Deputy Prime Minister has talked about kangaroo courts and vexatious campaigns, but he is wrong. Where recall happens around the world, there is not one example of a successful vexatious recall campaign. There could not be one here, because it would require so many people—14,000 people—to be persuaded to join a vexatious campaign. We know that that is simply not possible in our constituencies.

I am going to run out of time. I simply ask Members to consider how the Government’s proposal might work. It is much more worrying than true and genuine recall.