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House of Lords Reform (Draft Bill)

With permission, Mr Speaker, I wish to make a statement about the Government's plans to reform the other place. At the last general election, each major party committed to a democratically elected second Chamber. The coalition agreement set out very clearly the Government's intention to deliver that, but the roots of these changes can be traced back much further. A century ago, the Government, led by Herbert Asquith, promised to create"““a Second Chamber constituted on a popular instead of hereditary basis.””" There has been progress in the intervening years—the majority of hereditary peers have gone, and the other place is now predominantly made up of life peers. We should see ourselves as completing that work. People have a right to choose their representatives. That is the most basic feature of a modem democracy. Our second Chamber, which is known for its wisdom and expertise, is none the less undermined by the fact it is not directly accountable to the British people. I am therefore publishing a draft Bill today, and an accompanying White Paper, which set out proposals for reform. In the programme for government, we undertook to"““establish a committee to bring forward proposals for a wholly or mainly elected upper chamber on the basis of proportional representation.””" I chair that cross-party committee, which reached agreement on many of the most important issues—not on all of them, but good progress was made—and those deliberations have greatly shaped the proposals that are being published today. I should like to pay tribute to all members of the Committee, particularly Opposition Members, who engaged with us in an open and collaborative fashion. Let me also thank those individuals whose past work on Lords reform has laid the foundations for what we are doing today, particularly the right hon. Member for Blackburn (Mr Straw) and the right hon. and noble Lord Wakeham. Rather than start anew, the Government have benefited from their previous endeavours. Today's proposals represent a genuine, collective effort over time. The draft Bill and White Paper will now be scrutinised by a Joint Committee composed of 13 peers and 13 Members of this House. The Committee will report early next year, and a Government Bill will then be introduced. The Prime Minister and I are clear that we want the first elections to the reformed upper Chamber to take place in 2015. However, although we know what we want to achieve, we are open minded about how we get there. Clearly, our fixed goal is greater democratic legitimacy for the other place, but we will be pragmatic in order to achieve that. We therefore propose an upper House made up of 300 members, each eligible for a single term of three Parliaments. Three hundred is the number that we judge to be right, but this is an art and not a science. In the vast majority of bicameral systems, the second Chamber is significantly smaller. That arrangement helps to maintain a clear distinction between the two Houses. We are confident that 300 full-time Members can cover the work comfortably. We are, however, open to alternative views on that. The coalition agreement committed the Government to produce proposals for"““a wholly or mainly elected chamber.””" That debate is reflected in what we are publishing today. The Bill makes provision for 80% of Members to be elected, with the remaining 20% to be appointed independently. The 60 appointed Members would sit as Cross Benchers, not as representatives of political parties, and in addition bishops of the Church of England would continue to sit in the other place, but would be reduced in number from 26 to 12. The White Paper includes the case for a 100%-elected House of Lords. The 80:20 split is the more complicated option, and so has been put into the draft Bill in order to illustrate it in legislative terms. The 100% option would be easy to substitute into the draft Bill should that be where we end up. There are people on both sides of the House who support a fully elected Chamber, believing that an elected House of Lords should be just that. Others, again on both sides, take a different view, and support having a non-elected component in order to retain an element of non-party expertise, as well as to keep greater distinction between the two Houses. Personally, I have always supported a 100%-elected House of Lords, but the key thing is not to make the best the enemy of the good. That approach has stymied Lords reform for far too long. After all, 80% is a whole lot better than 0%. Elections to the new reformed House will be staggered: at each general election a third of Members will be elected, or a combination of elected and appointed. That is to prevent the other place from becoming a mirror image of this House. In the Bill we set out how those elections could be conducted using the single transferable vote. The coalition agreement specifies only that the system must be proportional, and what is most important is that it is different from whatever we use in the Commons. That is to ensure that the two Chambers have distinct mandates; one should not seek to emulate the other. STV allows for that, and would also give the upper Chamber greater independence from party control. Votes are cast for individuals rather than parties, putting the emphasis on the expertise and experience that candidates offer, rather than the colour of the rosette they wear. We want to preserve the independence of spirit that has long differentiated that House from this one. I know that some Members prefer a party list system, including Opposition members of the cross-party committee I chaired. We are willing to have this debate, and have not ruled out a list-based system in the White Paper. The Commons will retain ultimate say over legislation through the Parliament Acts, and will continue to have a decisive right over the vote of supply. In order for a Government to remain in office they will still need to secure the confidence of MPs. The other place will continue to be a revising Chamber, providing scrutiny and expertise. Its size, electoral cycle, voting system, and terms will all help to keep it distinct from the Commons and a place that remains one step removed from the day-to-day party politics that, quite rightly, animate this House. What will be different is that our second Chamber will finally have a democratic mandate, and will be much more accountable as a result. Clearly, the transition must be carefully managed. We propose to phase in the reform over three electoral cycles. In 2015 a third of Members will be elected, or a combination of elected and appointed. The number of sitting peers will be reduced by a third, although we are not prescribing the process for that; it will be up to the parties in the other place to decide. In 2020, a further third will come in under the new system, and then again in 2025. There are other ways of staging the transition, however, and the White Paper sets out two of them. To conclude, history teaches us that completing the unfinished business of Lords reform is not without challenges. Our proposals are careful and balanced. They represent evolution, not revolution, and are a typically British change. I hope that Members from both sides of the House and the other place will help us to get the proposals right. The Government are ready to listen and are prepared to adapt, but we are determined, in the end, to act. I commend this statement to the House.