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Parliamentary Standards Bill

This group of amendments deals with the changes to the investigation and enforcement regime that the Government have brought forward. During the passage of the Bill, there has been considerable concern about the impact of its provisions on parliamentary privilege, particularly each House’s right to freedom of speech and exclusive cognisance of its own affairs. As has been said, the events disclosed by the Daily Telegraph in relation to the other place have made it impossible to continue with the old system of self-regulation. The public will clearly no longer tolerate a regime where the other place sets, administers and investigates breaches of its own allowances and the rules on the registration of financial interests. I think that that is also the view of this Committee. Those powers do not deal with matters that are presently privileged. We have always recognised, however, that it is a different question in relation to enforcement. The Bill as originally drafted took a particular approach in trying to steer the narrow line between enabling the commissioner and IPSA to do their work and not infringing privilege. That approach did not find favour in the other place and your Lordships remain concerned about how it is handled in the Bill, as it was sent up here by the other place. We remain of the view that many of the concerns expressed, particularly about the extent to which the courts would decide that they now had the right or duty to inquire into matters that would previously have been regarded as privileged, were to an extent exaggerated, but we recognise that those concerns are real. The package of measures in the government amendments in this group—although there are also opposition amendments in the group, to which I shall reply after they have been spoken to—responds to those concerns by removing any role for IPSA in the enforcement of the new allowances regime or the code of conduct on financial interests in individual cases. IPSA will remain responsible for setting the allowances regime and for the payment of MPs’ salaries and allowances. It will be responsible for setting the code of conduct on financial interests and for administering the register of financial interests. IPSA will retain responsibility for the procedures under which alleged breaches of the financial rules can be investigated. Those, we think, are the core principles of independent oversight and regulation of MPs’ financial affairs which the public ask for and which we have promised. An independent statutory commissioner will also be responsible for investigating complaints that MPs have breached the rules of the allowances regime or the rules on registration of interests. Those arrangements remain unchanged. The amendments make changes in what happens to the outcome of the commissioner’s investigations. Amendment 43A provides that the commissioner must refer his or her findings to the Committee on Standards and Privileges, rather than to IPSA. The amendment redrafts what was inserted in the other place as subsection (5), but maintains its effect in allowing minor cases to be settled by the commissioner without reference to the committee, provided that any general conditions fixed by IPSA are met and the Member acknowledges the error and agrees to repay the overpayment or correct the entry in the register, as appropriate. New subsection (5C) is a revised approach to the duty of the MP to provide information to the commissioner, which was included in subsection (3) of Clause 6 and for which the sanctions were previously covered in subsections (5) and (6) of Clause 7. Rather than setting out the duty on the MP to provide information, the commissioner will be able to report a finding to the Committee on Standards and Privileges if the Member of Parliament chooses not to co-operate. The other change to which I wish to draw the Committee’s attention are the additions to the requirement for the procedures that IPSA must draw up. Following concerns expressed by the noble Lord, Lord Lester of Herne Hill, and other noble Lords, we propose including a specific right for Members of Parliament who are subject to an investigation to be heard in person by the commissioner, as well to make representations, and a right, in appropriate circumstances, to call and examine witnesses. I have not gone through in detail the individual impact of each element of this group of government amendments. I hope that what I have said will find favour with the Committee. Most of the amendments that I have not referred to are consequential on the main government amendments in the group. I beg to move.