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  • Lee Rowley – 2022 Speech on Unfinished Housing Developments

    Lee Rowley – 2022 Speech on Unfinished Housing Developments

    The speech made by Lee Rowley, the Parliamentary Under-Secretary of State for Levelling Up, Housing and Communities, in the House of Commons on 18 October 2022.

    I congratulate the hon. Member for North Shropshire (Helen Morgan) on securing the debate, on making her case so cogently and, in particular, on talking about the constituents on whose individual circumstances, as she outlined, this issue has had such an impact.

    I thank the hon. Member for Strangford (Jim Shannon) for his contribution, as ever, to an Adjournment debate, and for highlighting the elements of the Northern Ireland approach, which is something for us all to consider. I also thank the right hon. Member for Warley (John Spellar) for the information that he provided. He has written to the Department as well; I am looking at that correspondence and will get back to him as soon as I am able to do so.

    As has been clear tonight, the hon. Lady speaks for many Members on both sides of the House in arguing for better protection for people in unfinished housing developments. I cannot comment on individual cases because I do not have all the details in front of me, and obviously there are two sides to every story and different circumstances in each case. However, I would say to people who have been adversely affected by inappropriate practices, whether in North Shropshire or elsewhere, that that is not acceptable; I am sorry they have had that experience, and I hope they can seek redress and correction in any way that is available to them.

    I think everyone in the House would agree that we need more homes, but we need them in the right places and we need them when they are constructed. That is often a controversial and difficult process, but when they are constructed, we need them to be of a standard that enables people to live in them. They have to work, and they have to work within the local community that those people are seeking to join. The debate is timely in enabling us to highlight the latter point, because in a minority of instances that might not be the case.

    For too many people, at least initially, the dream of home ownership does not live up to their hopes, because they are forced into resolving faults in their new build homes that are not of their making. The delays in getting those issues resolved often leave homeowners out of pocket, in financial stress or, as the hon. Lady suggested, having to engage in lengthy battles with developers to put things right—if the developer concerned is still in place. As a constituency MP, I have had some experience of that in North East Derbyshire, albeit with a developer who did in the end put things right—but it took a while for that to be done, which caused many residents in a number of villages, but one in particular, a significant amount of stress. So on a personal level, from a constituency perspective, I understand the point that the hon. Lady has made.

    The Government are unequivocal in stating that all new housing developments should be finished on time and to a standard that buyers expect. If things go wrong, as they sometimes do—we all know that processes are not perfect; the developer sometimes has problems and challenges and we should be reasonable in expecting that—the buyer should be treated fairly and promptly. I would like to say a little bit about the action we are taking to make sure that this is the norm in all new housing developments, wherever they are in the country. This breaks roughly into three different elements. The first is the length of time that it can often take for houses to be developed in the first place. The second involves the infrastructure commitments that the hon. Lady has highlighted, and the third relates to the quality of work in the developments when they are concluded and people begin to live in them. There are often concerns about the quality at that point.

    Jim Shannon

    I thank the Minister for his helpful response, and again I want to use it to be constructive. Back home there are many developers who sign up to the Master Builders Association agreement. As members of that organisation, they are accountable for the finish of the houses. If at the end the houses are not finished to the standard they should be, the owner has the right to take a complaint to the Master Builders Association, which will ensure that the work is completed to standard. I ask in a constructive way: is that something that could be done here?

    Lee Rowley

    The hon. Gentleman makes an important point, and I would be interested in hearing more. He will appreciate that I am seven weeks into post and I am still learning, but I would be genuinely interested in understanding the Northern Irish approach, given the information that he has highlighted this evening. Where there are things that are done well, we should be willing as a Government to look at those to see where we can take best practice and apply it on a broader level. I want to understand in more detail what is happening in Northern Ireland, and I will be happy to do that separately with him and his colleagues, if that would be helpful. I would be keen to understand the particular difference that he thinks comes from the Northern Irish approach, and I am always happy to find out more about particular instances and whether they would work on a broader scale, should that be helpful.

    Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)

    Could I perhaps look at the issue the other way round? As in Northern Ireland, housing and planning are entirely devolved to the Scottish Parliament, yet as a Member of this place, I get stuff about housing all the time. Looking at it the other way around, as and when His Majesty’s Government develop clever ways of doing things with housing, taking on board the points made by my hon. Friend the Member for North Shropshire, I would be grateful if those new methods could at least be offered to the Scottish Government in case they could glean something that might improve the housing issues north of the border.

    Lee Rowley

    The United Kingdom Government are always keen to indicate to the Scottish Parliament and the Scottish Government where we might be able to work together and where we think that elements of policy might work for Scotland as well as they work elsewhere in the Union. Occasionally, the Scottish Government are not that keen to listen to His Majesty’s Government, but perhaps, given the hopeful outbreak of consensus on the desire to make progress, that will not occur on this particular subject. I am happy to consider the point that the hon. Gentleman rightly and properly makes.

    John Spellar

    I think we need to look at two separate, although related, problems. One is about the individual build quality of the houses. The other is about the infrastructure of the estate, which is certainly a problem that I and neighbouring Members of Parliament in the west midlands conurbation are finding. We have to find a way through that. In addition, if a developer goes bankrupt, the titles revert to the Crown Estate, so does not the Crown Estate have an opportunity to play a proactive role here? At the moment it seems to be playing a fairly passive role.

    Lee Rowley

    I will come to those two points, because I agree there are different elements that we need to consider and unpack. I would be happy to discuss the second point with the right hon. Gentleman in more detail, should he wish.

    On completing new housing developments—I accept the hon. Member for North Shropshire made a broader point about further down the chain—the Government are clear that developments should be built out as soon as possible once planning permission is granted. The frustration of local communities where that does not occur is completely understandable. We expect developers and local authorities to work closely together to make this happen.

    The Levelling-up and Regeneration Bill, which is in Committee today, will increase transparency on build-out, helping councils and residents to better understand what they can expect from development proposals and putting in place sanctions should the homebuilder fall short. Of course, there are examples where developers will need to vary their approach to building and constructing properties, and of course timeframes will both elongate and reduce as part of that process, but in general we are keen to see that when development is granted permission, often through difficult and sometimes controversial processes, and the clock starts ticking, the development should get moving and conclude as soon as possible.

    The hon. Member for North Shropshire rightly highlighted infrastructure. Taking roads as an example—she mentioned a number of examples—when a new development is granted planning permission, councils can currently use section 106 planning obligations, as she indicated, to secure a commitment from developers to construct roads to a standard capable of being adopted by the local highway authority. It is up to developers and local planning authorities to agree on specifics such as timescales and funding, which may include the provision of a bond. This is currently a local decision and, notwithstanding the difficulty she rightly highlighted—she made a constructive suggestion on potential compulsion in this area—there are going to be different circumstances in different instances.

    I encourage councils to use bonds where they think it is appropriate. Equally, I do not know whether we want to be so prescriptive as to mandate that from the centre, as there may be instances where it is neither appropriate nor necessary. Hundreds of thousands of houses are built each year in very different parts of the country, so we have to have regard to the fact there are different circumstances. None the less, I accept the premise of what the hon. Lady indicates and, where good practice exists—she indicated the good practice in Oxfordshire, and it also happens in Derbyshire—I encourage councils to use it, where appropriate and reasonable.

    Helen Morgan

    If compulsion is not appropriate, what about disseminating best practice to all councils in England to encourage them to use this mechanism, where appropriate, to avoid the situation that my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone) and I have described? That would be a positive way forward to prevent this happening in future.

    Lee Rowley

    Within the bounds of localism, and without an individual Minister directing councils to do so, I think it is reasonable to indicate that, where possible, reasonable and proportionate, and where councils think it is appropriate, they should consider using bonds, which are a helpful lever and tool to be used where possible, while accepting that individual local authorities may have different reasons and different views on either using them or not using them. Ultimately, I will leave it to the discretion of individual local authorities to determine the appropriateness of that utility.

    Returning to the point about roads, the Government believe it should be made clear to potential purchasers what the arrangements are for the maintenance of roads. Section 38 agreements facilitate the adoption of such roads as highways maintained by the public purse. It is certainly possible for local authorities to adopt streets and roads. Ultimately, though, that is a decision that is taken in relation to how these estates are created and how local authorities want to approach ensuring that they have highways that are at a standard that they can then maintain.

    Although I recognise, as has been indicated, that this does not work in a number of instances, if we can balance the appropriateness of localism—of making sure that local areas have the ability to vary how they approach this—while also ensuring that there is a general usage of the tools that are available, I hope that will be reasonable and proportionate.

    The other element of the discussion is effectively around the quality of what is delivered at the end of the process when people move in—or by the time they move in. The Department for Levelling Up, Housing and Communities has also provided local planning authorities with tools to enforce requirements with strong penalties for non-compliance. Again, we encourage councils to use them where possible, and, again, through the Levelling Up and Regeneration Bill we are seeking to strengthen those measures.

    I should add that when residents have a complaint about the local planning and highways authority that has not been adequately resolved, they may be able to complain to the Local Government and Social Care Ombudsman. I know that, in at least one incident, as the hon. Lady said, the residents of North Shropshire tried to do that. Obviously, the ombudsman is independent, but it is worth reiterating that it is there to redress issues, and I hope that anybody watching this debate who has a similar concern will consider its usage should that be appropriate.

    On the matter of delays to completion, warranties and the actual quality of new homes themselves, I know of the problems that new home buyers face regularly and we do not underestimate the detrimental impact that this has. Most new-build home contracts typically have a “short-stop” date, which is an estimated completion date, and a “long-stop” date, which is the date by which a home must be completed in the contract. The rights and responsibilities of the homebuyer and developer should be set out in that contract, including the circumstances in which a deposit and other money is returned.

    There are other routes to redress, which we are strengthening, and I will come to those in a moment, because they offer alternatives that the hon. Lady may wish to consider. The status quo currently is that most new-build homes are issued with a 10-year new-build warranty. Home buyers may also be able to complain to the Financial Ombudsman Service about their insurance cover.

    Within the first two years of most warranties home buyers may be able to seek to resolve issues with their new homes through that warranty provider. If the new home is covered by one of the consumer codes, they may also be able to help resolve the issues that residents unfortunately face.

    Even with those options available to home buyers, we recognise that the system is not in a perfect place. That is why the Government have committed to taking further steps to improve consumer redress. Through the Building Safety Act 2022, we have included a provision that contains a statutory new homes ombudsman scheme, which will place greater accountability on developers and make it easier and simpler for new home buyers to seek redress when things go wrong, which perhaps will move us closer to the Northern Ireland model in terms of outcomes.

    In the meantime, and as we consider the next steps for the statutory scheme, the independent New Homes Quality Board has progressed work to set up the voluntary New Homes Ombudsman Service, which will launch shortly. My second visit was to see the launch of a New Homes Quality Board and to see the first developers to be brought onto that scheme. I went to Solihull a couple of weeks ago, and I am grateful to the chief executive for meeting me. It is an important step forward. The scheme is voluntary at the moment, but, equally, that voluntarism gives the opportunity for home buyers to see the different ways in which developers are engaging with that system, and I hope that most developers will in the end engage with that system.

    The hon. Lady talked about leasehold at the end of her speech and I just want to dwell on that for a few seconds. We acknowledge that there are practices that are not where they need to be within the leasehold sector, and the Government and previous Ministers have given commitments that we will reform leasehold. We remain of the view that that is what should be done. Although I cannot give the hon. Lady the date she seeks, I am personally committed to trying to take the matter forward and I hope I will be able, with my colleagues, to give further information in fairly short order on the process for that.

    In conclusion, this is an important area of policy, and I am grateful to the hon. Lady and all those who have contributed to the debate tonight for the opportunity to talk about it. It is important to note that there are processes already in place that homeowners should use if they are in the unfortunate place described by some people in North Shropshire, which I know is also the case elsewhere. They should seek to use those and seek to—

    House adjourned without Question put (Standing Order No. 9(7)).

  • Helen Morgan – 2022 Speech on Unfinished Housing Developments

    Helen Morgan – 2022 Speech on Unfinished Housing Developments

    The speech made by Helen Morgan, the Liberal Democrat MP for North Shropshire, in the House of Commons on 18 October 2022.

    I thank the Minister for his attendance and response this evening. I secured this debate following a number of instances in my constituency in which the buyers of new homes have been left to pick up the pieces when critical infrastructure is not completed by the developer.

    Let me tell the House first about The Brambles in Whitchurch. That is a development of 14 houses, built by developer Sherwood Homes Ltd in 2016 on land that had already been granted planning permission for development by Shropshire Council. It was a condition of the planning permission that the road, footpath and drainage should all be complete before the occupation of any houses occurred. However, despite those things never happening, building completion certificates were issued for all the properties and they were subsequently sold and inhabited. Unfortunately for the residents, the drainage system failed, leading on some days to raw sewage backing up in their gardens. Sherwood Homes Ltd had not taken out the section 104 agreement required in the planning permission, and not only was the arrangement dysfunctional, but the connection to the Welsh Water sewerage network was illegal, and neither were the road, lighting and footpath completed to an acceptable standard.

    In October 2019, a creditor of Sherwood Homes Ltd, which appears to have shared some of the same directors, petitioned for it to be wound up and an order for insolvency was made by the court in December 2019. As a result, Shropshire Council could not take planning enforcement action against Sherwood Homes Ltd, and the residents of The Brambles, who are the successors in title to the private company established to manage the development, have been the subject of the enforcement process. They have been required to accept five-figure charges on their properties in order to rectify the issue of connecting the drainage to Welsh Water’s network. Indeed, the saga has also cost the rest of Shropshire’s taxpayers a considerable amount of time, as council officers have expended time and effort to attempt to rectify the situation.

    Shropshire Council believes that the developer’s failure to complete the necessary works before the first house was occupied should have been established by conveyancing solicitors, and the lessons to be learned from this episode are, “buyer beware.” It may be right, but few residents have been able to establish that principle with their solicitors and would not have the resources to begin legal proceedings against them. I believe that some of the home buyers took up the offer of conveyancing services facilitated by the very developer who left them high and dry, raising serious concerns over a potential conflict of interest.

    Jim Shannon (Strangford) (DUP)

    I commend the hon. Lady for securing the debate. Back home in Northern Ireland—I say this to inform the Minister as well—we have a very clear system whereby each developer must put a bond on the property. Therefore, should there be any difficulty in relation to the footpaths and roads not being finished, or if the streetlights are not done and the sewerage fails, that bond can be used for those repairs. Does the hon. Lady feel that the methodology used in Northern Ireland may settle the problems that she refers to, and that the Government and the Minister should look at that option?

    Helen Morgan

    I thank the hon. Gentleman for that sensible intervention; I will make a very similar suggestion in my speech.

    The leader of the council declined my request to undertake a case review of the sequence of events that led to the situation at The Brambles to understand whether the council could have prevented the situation at any point as it evolved. As the law stands, it would appear that she is right. The Building Safety Act 2022 does not cover issues relating beyond the house itself, and the Local Government and Social Care Ombudsman declined to consider the case, arguing that:

    “Caselaw has established that where a council issues a completion certificate and the work is later found to be substandard, liability for any defects rests with those who commissioned the work and those who carried it out. We cannot therefore hold the Council responsible for substandard work by the developer and we could not achieve any worthwhile outcome for”—

    my constituent by investigating the complaint.

    This is a very serious case—the most serious case I have seen in North Shropshire—but there are numerous instances in which roads have not been completed to a standard suitable for adoption, streetlights are not installed, shared areas are not landscaped as per planning permission and, in some cases, even the plot sizes vary from the original plan.

    I can provide further examples. A development at Isherwoods Way in Wem has been without streetlights and a surfaced road for 10 years; although the situation is about to be resolved, it is not quite there yet. On the west side of my constituency, a site that I cannot name because legal proceedings are under way features an unadopted sewerage system that has not been completed to the required standard. A development in Ellesmere was left without an adopted road and open space when the developing company collapsed. The situation is only being resolved now that the development has been purchased by a major national house builder. The developer of another site in Wem has applied for insolvency despite the road being unadopted, the open spaces not having been landscaped and concerns having been expressed by residents about the water drainage system.

    The cost to residents of these sites is not only financial. Untold distress and emotional strain have been caused and an enormous amount of precious time has been spent on resolving the situation. At a recent constituency surgery, one resident told me, “I’m a truck driver. I don’t have time to become an expert on planning control.” His neighbour, a construction worker, described the strain of worrying about everything that could go wrong with the drainage system, and about the cost involved in digging up the road to rectify the faults.

    John Spellar (Warley) (Lab)

    I have a similar problem in Cranford Street in Smethwick. I find it utterly deplorable that Severn Trent, which is making hundreds of millions and whose chief executive is paid millions, will not take over any responsibility for the sewage that is backing up into people’s homes. People have bought the home of their dreams and are now finding that it has turned into a nightmare.

    Helen Morgan

    I thank the right hon. Member for his intervention. I have had some productive discussions with Severn Trent on the issue and am about to propose a solution that I hope will help to rectify the situation.

    It has become apparent that residents are tied into an impossible situation. They no longer want to live in their homes, but realistically they cannot sell them until the defects are rectified. There are also wider financial ramifications because if any resident defaults on their mortgage, a bank will not be able to sell the property to recover its investment.

    The other common theme emerging from all these developments is that homebuyers will be expected to contribute to the costs of maintaining shared areas via a management company to which the title for the shared areas has passed. These companies typically pass on the management cost to the residents at zero profit. However, the ones that I have investigated then subcontract the work to a profit-making company. I am sure that the House will not be surprised to learn that in many such arrangements the subcontractor is related in some way to the original developer.

    The companies can charge uncapped amounts indefinitely to the homebuyer, in what is known as a fleecehold—I am aware that several hon. Members have raised the plight of fleeceholders on previous occasions. The management company can be used not only to pass on to the homebuyer the financial responsibility for completing the development, but to extort money for years to come, often for substandard management services. I am aware that the Government have indicated that they will legislate to control such management charges. I urge the Minister not only to commit to a date for such legislation, but to ensure that protections are included to cover previously unfinished developments.

    To tackle the issue up front, however, I propose a different course of action. I believe that it is possible for a water company or a local council to obtain a financial bond when a section 104 or section 106 agreement is put in place, such that when critical infrastructure is not completed, funds are still available to complete the work. In addition, there are mechanisms such as section 38 agreements incorporating financial bonds that can be used to ensure that roads are of an adoptable standard. Having spoken to colleagues, I believe that some councils, such as Oxfordshire County Council, use financial bonds for that purpose and to avoid the distressing situations that I have described. I have not been able to establish why that is not standard practice for all councils.

    I urge the Minister to consider using the Levelling-up and Regeneration Bill to require councils to take a step involving a financial bond before planning conditions are discharged, so that unsuspecting homebuyers are not left with unmanageable costs if their developer goes bust before the site is completed. The principle has already been established in the Government: National Highways requires a bond from local authorities if they propose works affecting the strategic road network, so that significant disruption is avoided if the works are not completed. I am concerned to learn that the changes proposed to the Bill would reduce councils’ ability to use section 106 agreements for smaller developments and would remove current powers to protect homeowners.

    The rationale for planning deregulation is that it will enable house building targets to be met by removing barriers to completion, but I would argue that, certainly in the case of North Shropshire, it is not necessary. The evidence does not show that planning regulations are behind slow rates of house building. Shropshire’s local plan contains a target of 30,500 new homes by 2038, but there are already 18,000 planning applications on which consideration has not yet commenced. The current build rate of just under 1,900 houses a year does not suggest that planning permission is the issue holding things up.

    I appreciate that requiring a financial bond from new house builders might deter smaller companies from entering the market, but first I question whether homebuyers and council tax payers should be taking on the risk posed by a financially unviable housebuilder; and secondly, it should be possible to find an alternative, such as an investment bond, to combat that risk.

    I am extremely concerned about the fact that councils lack the tools they need to ensure that the buyers of new-build homes do not fall victim to rogue developers, and the fact that the effectiveness of the tools they do have may be reduced by the Levelling-up and Regeneration Bill. I hope that the Minister will agree to consider making the use of financial bonds as part of section 106 or similar agreements a required practice for councils and water companies, to protect both homebuyers and councils’ own taxpayers from high-risk housing developers.

    If the Minister rejects such a solution, however, will he agree to meet me and other stakeholders, such as the Local Government Association, to formulate a practical mechanism to prevent the distress and financial hardship caused by unfinished housing developments? Homebuyers, councils and the wider community need to be confident that they will not be left to the pick up the pieces when a developer fails to deliver. The owners of The Brambles are victims of a rogue developer, and we should act to ensure that their experience is not repeated elsewhere.

  • Allan Dorans – 2022 Speech on Standards

    Allan Dorans – 2022 Speech on Standards

    The speech made by Allan Dorans, the SNP MP for Ayr, Carrick and Cumnock, in the House of Commons on 18 October 2022.

    Good evening, Madam Deputy Speaker. I declare an interest in this matter as a member of both the Committee on Standards and the Committee on Privileges, appointed by this House in May 2021. I regard it as a privilege to serve on those Committees.

    I start by agreeing with my friend the hon. Member for Warrington South (Andy Carter) about the lay members. The Committee on Standards consists of 14 members, seven of whom are MPs and seven of whom are lay members appointed by the House of Commons Commission following an extensive and comprehensive open recruitment process. All seven lay members have extensive knowledge and experience of public life at a senior level and bring a fresh non-political and unbiased perspective to the work of the Committee. I commend and thank them for their commitment and contribution not only to the report we are debating tonight but to the other work undertaken by the Committee on Standards. The lay members are invaluable in enabling the Committee to reach decisions that more accurately reflect the mood, consideration, interpretation and judgment of the country as a whole, rather than the narrow conclusions that might be reached by elected Members, with conflicting pressures and interests of their own in their Westminster role and in this echo chamber in which we operate.

    The Committee’s recommendations followed our code of conduct review that started in 2020. The Committee took an extensive range of written and oral evidence and commissioned a survey of Members to draw up balanced and informed recommendations, and we were greatly assisted by independent advice from Sir Ernest Ryder, former Lord Justice of Appeal and Senior President of Tribunals for the United Kingdom. Sir Ernest carried out a review of fairness and natural justice in the House’s standards system, and the Committee published his review in March 2022.

    Sir Ernest concluded that the inquisitorial process for code of conduct cases is fair and compliant with article 6 of the European convention on human rights—the right to a fair trial. Two of Sir Ernest’s principal recommendations were to create a single code of procedure, to be approved by the House, and to introduce a formal appeal system. The motions before the House today would implement those two central recommendations.

    The Committee recommended that the Independent Expert Panel, which was established by the House in June 2020 to hear appeals and determine serious sanctions in bullying, harassment or sexual misconduct cases, should be the appeal body. If today’s motions are agreed, there will be an additional step in the process of investigating and adjudicating on breaches. The independent Parliamentary Commissioner for Standards will continue to investigate allegations of breaches of the code. If the commissioner’s opinion is that the MP has breached the code and it cannot be rectified using her own powers, she will refer the case to the Committee for a decision; this is what already happens.

    Once the Committee has published its report, the MP will then have 10 working days to lodge an appeal, if they wish to do so. The grounds are in line with the appeals grounds in Independent Complaints and Grievance Scheme cases. The Independent Expert Panel would then publish the final outcome unless, in the case of a successful appeal, a case is remitted back to the Committee or Commissioner for fresh investigation or decision.

    The Committee published its proposed procedural protocol in July 2022, which brings together material from the Commissioner’s information note, the current chapter 4 of the guide to the rules, and parts of the Committee’s own internal guidance into a single document that we hope is accessible and easy to understand. The protocol also sets out the new process for appeals.

    I welcome the Government bringing forward today’s motions and I hope that the new protocol and appeals process will give hon. Members and the public confidence in the integrity and fairness of our standards system. I also sincerely hope that the Government will bring forward motions before too long to allow the House to debate and decide on the proposed new code of conduct and guide to the rules, and the important changes that the Committee is suggesting.

    The SNP and I support the reform of practices to ensure that hon. Members of this Parliament have a fair process when allegations have been made against them. We also welcome the motion and proposals to ensure that standards in this House are strengthened, and we look forward to engaging on the proposed reforms. We also welcome the Government bringing forward the motions to implement the Committee’s recommendations on appeals and to approve the proposed new procedural protocol.

    In addition, we recommend that consideration be given to training and awareness among hon. Members to provide them with information on the proposed changes. An incredible amount of work has been undertaken by the Committee on Standards regarding the motions being brought before the House today. I also lend my support and that of the SNP to the amendments tabled by the hon. Member for North East Fife (Wendy Chamberlain).

  • Chris Bryant – 2022 Speech on Standards

    Chris Bryant – 2022 Speech on Standards

    The speech made by Chris Bryant, the Labour MP for Rhondda, in the House of Commons on 18 October 2022.

    I start by being slightly pernickety, which is to say that I am not a right hon. Gentleman. I do not know whether the Lord President of the Council can do anything about that, but I note that she referred to me as such, for which I am grateful.

    On a serious point, historically, we will probably be considered the standards Parliament, because standards have been such a prominent part of the politics of this whole Parliament. As a colleague of 649 of my closest friends, I feel quite painfully the fact that, in this Parliament, 16 Members have already been suspended for a day or more, or have withdrawn from the House before any investigation was completed. That puts this Parliament as having suspended more people than any Parliament in many decades. That, I suspect, is partly because we have put in place the ICGS, which is dealing with work that would previously have been swept under the carpet. Even in my own time in the House, these issues would have simply been dealt with by the Whips and somebody would have been either quietly paid off or told not to complain. I am really glad that that culture is changing, that people feel able to complain when they feel bullied or sexually harassed and that behaviours that were thought to be acceptable 15 or 20 years ago are no longer considered so in the House. We may have more of this before the end of this Parliament, and we just need to bear cognisance of that. Even if we look only at the code of conduct cases, we have ended up suspending more in this Parliament than for a very long time.

    I had some very wealthy relatives. When I was young, they taught me that if a person ever inherited money, it was because it had been held in trust. As Members of Parliament, we inherit our seats—not normally hereditary seats, but in some cases they are—and we inherit the reputation of the House that came from previous generations. It is important for us to hold that in trust and pass it on to the next generation of Members of Parliament burnished rather than tarnished. We will have to do a job of work throughout the rest of this Parliament to be able to do that effectively.

    The system, I believe, also has to be fair to Members of Parliament. It is phenomenally complex and sometimes, in addition, complicated. An individual Member will be subject to rules of their own party, the ICGS rules, the code of conduct, the Electoral Commission, and the law of the land, and sometimes it is difficult for them to have all those things in their mind. That is why it is so important that the system for Members of Parliament is completely fair, embodies natural justice, and makes sure that the individual complainant—if there is a complainant—and the Member themselves are given an opportunity to put their case and for it to be heard fully. The court of public opinion is not often a fair place. It often jumps to conclusions and decides things far too rapidly. My worry is that, sometimes, our processes happen far too slowly, and that is not justice for either the complainant or the Member, especially as politics has a shelf life—we have elections, for example—and sometimes cases keep going for years, which is not fair on anybody’s mental health either.

    Ever since I joined the Committee, I have always wanted us to have some formal process of appeal. I have argued that the system that we have had heretofore provides a sort of form of appeal: if the Commissioner finds against the Member, the Member is allowed a very full opportunity to make their case to the Committee in oral or written evidence. To be honest, it is better that we have a much clearer definition of the roles of the Commissioner and the Committee. That is what Sir Ernest Ryder has provided us with. He gave us a clean bill of health on how we have been operating in the past. He was quite clear in saying that there is not only one way of having a fair trial or hearing; there are many different ways. It might be an inquisitorial system such as we have, but it might be a confrontational system, or an adversarial system, as we have in a court of law. Of course, Committees of the House of Commons are not a court of law; they are fundamentally different. If we went down an adversarial route, the costs would increase dramatically and the length of proceedings would be very different. We have also always had a fundamental principle in the House that a Member speaks for themselves; if they cannot, then I would argue they have slightly lost the plot.

    Andy Carter (Warrington South) (Con)

    I want to put on record my thanks to the lay members on the Committee. It is a unique Select Committee in Parliament and lay members—members of the public who are selected—play an important part. I am sure the hon. Gentleman will agree with me that the Committee is much stronger for having lay members sitting there alongside parliamentarians.

    Chris Bryant

    Indeed; that was the next point I was going to make. The hon. Gentleman is very good at doing that in Committee, incidentally, and persuading me of the view that I already hold, but that may just mean that we proceed very much on a consensual basis in the Committee and there is no partisan divide at all. Nor is there a divide between the lay members and the Member members.

    There was a point at which people were arguing that MPs should not be involved at all in any of these processes, but I think that is wrong in relation to code of conduct cases. We often end up having a discussion about what casework really involves, or what an all-party parliamentary group does, and I think we make better decisions thereby. However, I do not think we could do that without the lay members and without their having a vote. The balance between the two, the seven lay members and the seven Members, is a good one, and it is sometimes a genuinely fascinating debate, with people offering different perspectives.

    On the motions before the House, first, I hope that introducing a procedural protocol that lays out all the processes and what a Member can expect if they have to go through an investigation that ends up going all the way to the Committee will be helpful to all Members. We have laid all that out.

    There has been some criticism in the past about whether the Parliamentary Commissioner for Standards, who is an adviser to the Committee, should be present when the Committee is considering a memorandum and producing a report on an individual Member. We have decided that from now on—and we are already operating this—the Commissioner will not be present. If we have questions for the Commissioner, we will send them in writing and receive answers in writing, and that will also be available to the Member under consideration.

    Secondly, as the Leader of the House has already said, we are introducing an appeal through the Independent Expert Panel. That is a formalised process, and some people may find that that process is stricter than the previous system, because Members cannot appeal just to have a regurgitation of the facts or the argument; there are clear reasons why someone might be able to proceed to appeal, and the appellate body, the IEP, might decide, “I’m sorry, that doesn’t really count. You just want to rehearse the arguments all over again.” Members may find that this is a stricter process, but it closely parallels the situation in many tribunal systems and Sir Ernest Ryder, who had responsibility for the tribunals system in England and Wales, has helped us to get to that position.

    There is one other thing that the Leader of the House did not mention, but which I am grateful that the Government have included in the motions. Let us say that the Commissioner recommends that a Member has breached the rules and the Committee decides that there has been a breach of the rules and wants to impose a sanction. We will publish our report, in the way we have done, with the Member concerned getting an embargoed copy an hour before it is published. They will then have a period of time in which to decide whether to appeal. If they do, that goes to the Independent Expert Panel. However, at the end of that process, if the IEP upholds the Committee’s decision and the sanction, the motion should be put to the House forthwith—that is to say, without debate and without amendment, exactly like any other recommendation from the Independent Expert Panel in relation to independent complaints and grievance scheme issues. That makes for perfect clarity and simplicity.

    I am grateful, in a way, that the Government have corrected our homework in two regards. The first is in relation to Members’ being allowed to inform their own staff. I think the Government have made that perfectly sensible amendment, which was a sin of omission of ours rather than a sin of commission. The Leader of the House referred to the issue of members of the Committee recusing themselves, which is mentioned in the report and has been raised by some Members. If a member of the Committee has attended only one of the sessions at which an individual case is considered, should they be able to take part in the final decisions? There is nothing in Standing Orders that allows a Committee to prevent a member from taking part; in the end, it is a matter for the member’s own conscience. Broadly speaking, in most of our minds, someone who had not attended the individual Member’s oral evidence would not be able to give them a fair hearing. It is not in the motion—we are relaxed about that—but I wanted to give the House an indication of where we are going on that issue.

    I thank both Sir Ernest Ryder and Sir Stephen Irwin. I feel a bit surrounded by knights of the realm sometimes, but it is good to have a new knight of the realm on the Committee—the hon. Member for Broxbourne (Sir Charles Walker), who joined us today. I am grateful to the hon. Member for North East Fife (Wendy Chamberlain); her measure is perfectly sensible. The trouble with conventions and gentlemen’s agreements is that if there is no longer a gentleman on the other side of the agreement, it is no longer an agreement, so it makes perfect sense to put that on the face of the Bill.

    The Leader of the House referred to some other issues. Obviously, I would have preferred it if we were dealing with the whole of our report. She referred to how she wants to achieve consensus. We on the Committee think that we have done so, we are open to discussion, but there are some issues I want to raise.

    First, we want to ban the provision of paid parliamentary advice, including providing or agreeing to

    “provide services as a Parliamentary strategist, adviser or consultant”.

    That is self-evident. I think everybody supports it and I would like to make that the rule—it is not yet the rule.

    We also think that Members who have second jobs, especially if they are ongoing, should have a contract saying what they and cannot do, because sometimes people will put in a contract, “You will provide contacts with Government on our behalf.” Well, Members cannot do that as that is, expressly, paid lobbying. We think they should be able to provide a contract; the Government disagree.

    We want to clarify the serious wrong exemption, which Owen Paterson tried very aggressively and assertively to use as his excuse last year. It just did not wash, but it needs to be clearer for Members.

    We want to clarify the paid lobbying rules, which would help out hon. Members a bit, because they are not clear in some areas. At the moment we draw a distinction between a Member “initiating” or “participating” in an approach to or a meeting with a Minister or an official. That is a completely false distinction and we need to get rid of it.

    The one big difference I have with the Leader of the House is in relation to the registration of ministerial interests. I know the previous Leader of the House used the line about the constitutional principle of the separation of powers a lot. That is complete and utter baloney. It is nonsense. That phrase has carried on from the previous Leader of the House but one, now I think about it. We do not have a separation of powers. By definition, Ministers are Members of this House. My anxiety is that ministerial offices quite often get the rules about the House wrong, and sometimes Ministers or Members leave staff to do the registration when it is the responsibility of Members. I hope we can get to a better place on that.

    It is a fundamental principle that a member of public should be able to look online for a Member—whether they are Minister now, were a Minister a month or six months ago, or have not been a Minister at all this year—and see all the facts about their registrable financial interests, so as to be able to judge whether that Member was acting “without fear or favour”, or was acting with some other consideration in mind. It is, in a sense, even more important for a Minister than it is for others. If two Members, one an ordinary Member of Parliament and one a Minister, go to an air show, with the hospitality, the accommodation and so on paid for by an arms company—it might come to £3,500—it is probably more important for us to know that the Minister was given that hospitality, because it is the Minister who might be making decisions on procurement from that company. Transparency and equality between all Members is really important, and all the information needs to be searchable and findable. We need to do more work on that.

    The Government need an adviser on the ministerial code, and I hope that that will come as soon possible. I am very fond of Lord Geidt, who is a magnificent man. I think he felt crushed by the events of the last of years. If we are to hold in trust the reputation of Parliament and of the whole of politics, we must get someone in place as soon as possible.

    Like the hon. Member for Warrington South (Andy Carter), I thank the lay members of the Committee. I shall mention only two fully by name, because they have just left: Jane Burgess and Arun Midha have served out their time, and we are recruiting new lay members at the moment. We are one down, and we will need another three next year. Paul, Rita, Mehmuda, Vicky, Michael and Tammy do a magnificent job, and I am enormously grateful to all of them.

  • PRESS RELEASE : Opening remarks by Commissioner Simson and Commissioner McGuinness at the press conference on a new package of measures to fight high energy prices and ensure security of supply [October 2022]

    PRESS RELEASE : Opening remarks by Commissioner Simson and Commissioner McGuinness at the press conference on a new package of measures to fight high energy prices and ensure security of supply [October 2022]

    The press release issued by the European Commission on 18 October 2022.

    Opening remarks by Commissioner Simson and Commissioner McGuinness at the press conference on a new package of measures to fight high energy prices and ensure security of supply.

    Thank you President, good afternoon, everyone.

    The EU has been fighting the energy crisis for a year. As the crisis has evolved, we have responded together, protecting our people and businesses, directing revenues to support consumers, ensuring sufficient gas storage, reducing demand and negotiating with old and new suppliers.

    These steps have helped to bring prices down, compared to the record levels in August. But they are still high and the risk of further price hikes and gas supply disruptions for this winter is real.

    President von der Leyen has already laid out very clearly the context of today’s proposals and their main elements. Let me go into some more detail.

    First, the joint purchase of gas. This is a topic where the groundwork has already been done. In April, we put in place the Energy Platform and since then, we have created five regional task forces to better understand our gas needs and infrastructure opportunities.

    Today, we are proposing the tools to make joint purchasing possible. This is a no-regret option, as buying together gives us more leverage. On the other hand, it is not easy to implement. Gas is in the EU usually bought by companies, not Member States, let alone the Commission. We have worked very closely with EVP Vestager and her team to find a solution that is in line with the EU competition policy.

    We propose a two-step approach. First, we will aggregate the demand, pooling the gas needs of the companies willing to participate. The Commission will contract this procedure out to a service provider, who will collect the necessary data via an IT-tool.

    Following that, the companies can conclude their contracts with the suppliers. They can also form a gas purchasing consortium and buy gas together, coordinating volumes, prices, delivery points and times.

    There is a mandatory element, which is that the aggregation has to cover an amount of gas equivalent to 15% or their storage filling requirement.

    This is around 13.5 billion cubic meters of gas – equivalent to the annual gas use of Greece, Bulgaria, Croatia and Slovenia combined. Or the joint consumption of Portugal, Ireland and Finland. So, it is a meaningful amount that would be attractive to sellers and helpful in terms of refilling storage. The participating companies will be free to aggregate and purchase more than 15%, we are only setting the absolute minimum.

    But joint purchase alone will not be enough to address the level of prices we are seeing due to Russian manipulation and very tight global markets.

    We need a new price benchmark that better reflects today’s market reality, better than TTF. While TTF was a good proxy for the EU gas prices when we received large amounts of Russian pipeline gas, this is no longer the case. Now, TTF prices are pushed up by infrastructure bottlenecks and regional dynamics.

    We have therefore tasked ACER to immediately prepare a price assessment tool. Our proposal grants them the necessary powers to collect real-time information on all daily LNG transactions. Based on this, they can establish a benchmark by the end of March.

    Until then, we propose to create a market correction mechanism that could be used to limit prices when needed. We envisage it in the form of a TTF cap – a ceiling on the maximum value of the TTF Virtual Trading Point. More work is needed, in cooperation with the Member States, to develop the details. Me and my services are ready to complete this work fast and with the right safeguards, if given the mandate by the Council.

    In addition, we aim to end the excessive volatility on EU energy derivatives markets. Mairead will tell you more about this in a minute.

    As we make every effort to keep prices predictable and gas flowing to Europe, we cannot exclude a real supply crisis with a shortage of gas. For this, solidarity and demand reduction are key.

    In the worst-case scenario, all our Member States need to be supported by their neighbours and countries with LNG facilities. Solidarity rules will apply automatically even if the Member States don’t have a bilateral agreement in place. Solidarity should be non-negotiable.

    In addition to households and other protected consumers, solidarity obligation will now also apply to critical gas-fired power plants, to avoid an electricity crisis. In case of an emergency, there will be an allocation mechanism determining how gas is distributed and at what price.

    It is also absolutely critical that we continue to reduce our gas demand. In today’s proposal, we give the Member States more flexibility to do this and continue work on other fronts. For example, this Friday, I will host with IEA executive director Fatih Birol an event on helping our small and mediumsized enterprises through the crisis. Energy savings and efficiency can play a key role in this.

    Increasing our energy efficiency is also a central tenet of the Digitalisation of Energy Action Plan that the Commission adopted today. Many of the solutions touched upon there are relevant to our current situation: smart meters, remotely-controlled devices and innovative renewable solutions all make energy more affordable and accessible.

    As we fight the current crisis, we are laying the foundations of a cleaner and more modern energy system which will serve us well in the years and decades to come.

    Thank you.

     

    _____

     

    Commissioner Mairead McGuinness:

    Thank you President, and Kadri.

    Good afternoon everyone. Just to focus on the financial side of the energy issues. What we are doing today is working on the nexus between energy markets and financial markets.

    And as you know my role as Commissioner, it has financial stability at its very heart.

    So the measures we propose – and I will give you details shortly – are both targeted and time-limited.

    And they are focusing on easing the liquidity stress that some energy companies have faced in meeting their margin requirements, and on tackling the extreme price volatility on energy derivative markets.

    In doing this we worked really closely with our regulators – so ESMA and national regulators – and sought their guidance as to how we could do this, mindful of the need to address the liquidity issues, but clearly mindful of the need for financial stability.

    And I want to thank our finance ministers for their contribution, and indeed our work with the European Parliament is paramount to deliver.

    So first I want to deal with the trading side. We’re proposing a temporary measure as part of the emergency instrument: a so-called “intra-day price spike collar”.

    Now what this is about smoothing out is smoothing excessive volatility and price spikes in gas and electricity derivative markets.

    It is a price collar that limits extreme changes in a short period of time.

    And in that sense, it is not intending to prevent prices from moving upwards or indeed downwards, but rather to ensure that these movements are more incremental than what we observed at some times over the past months.

    EU trading venues for energy derivatives will have to put such a tool in place by the end of January, under the control of national and European regulators.

    But in the interim period, we will be asking EU trading venues to set up an intraday volatility tools that would broadly achieve the same result.

    My second point is on the issue of collateral.

    We know some energy market participants have experienced pressures on liquidity because of higher margin calls linked to rising energy prices.

    Usually collateral is provided in the form of cash.

    Today we are adopting a delegated act that expands the list of what these companies can use as collateral. We are doing this on a temporary basis.

    Energy firms will be allowed to use uncollateralised bank guarantees.

    And all market participants will be allowed to use public guarantees.

    Again we’re following the advice of ESMA on this, and striking the right balance between helping energy operators and maintaining financial stability.

    The third measure is also related to energy derivatives markets.

    And this is an amendment to another delegated act for energy firms using OTCs – over the counter – derivatives.

    We are raising the clearing threshold from €3 billion today to €4 billion.

    And below this €4 billion threshold, firms using over-the-counter derivatives will not have to provide margins for the bilateral trades.

    And again, this is in line with ESMA’s recommendations, reflecting the sharp price rises in energy derivatives.

    On benchmarks, I think Kadri you have covered that very well and we work together on achieving the proposal you have outlined.

    And clearly, also, to encourage when the benchmark is in place, that it is used so that it will impact derivative markets as well.

    I believe that what we are proposing today on the nexus between the financial markets and energy will make a real difference to energy operators and to energy markets.

    And in the short to medium term, that will help alleviate pressure on consumers and businesses who are experiencing energy price rises right now.

    But at the same time, we are staying vigilant when it comes to financial stability.

    Thank you.

     

  • Ursula von der Leyen – 2022 Speech at the European Parliament Plenary on the preparation of the European Council meeting

    Ursula von der Leyen – 2022 Speech at the European Parliament Plenary on the preparation of the European Council meeting

    The speech made by Ursula von der Leyen, the President of the European Commission, on 19 October 2022.

    Dear Minister Bek,

    Honourable Members,

    Yesterday, we saw again Russia’s targeted attacks against civilian infrastructure. This is marking a new chapter in an already very cruel war. The international order is very clear. These are war crimes. Targeted attacks on civilian infrastructure with the clear aim to cut off men, women, children from water, electricity and heating with the winter coming – these are acts of pure terror. And we have to call it as such.

    This is the moment to stay the course. We will back Ukraine for as long as it takes. And we will protect Europeans from the other war that Putin is waging – this is his war on our energy. I know that Europeans are concerned; concerned about inflation; concerned about their energy bills; concerned about the winter. The best response to Putin’s gas blackmail is European solidarity and European unity.

    In this spirit, the Commission agreed yesterday on a strong legislative framework to address the energy crisis. Let me outline the main points to you.

    The first one is as logical as important: Instead of outbidding each other, Europeans should buy gas together. This is very simple. For this, we will purchase together gas at EU level. Aggregation of demand will be mandatory for at least 15% of the volumes needed to fill gas storages. And the companies involved may form a ‘gas purchasing consortium’. We do this because we have learnt the lesson. We literally saw in August of this year, at the height of the filling season, how Member States were outbidding each other and thus really driving up the prices. We definitely can be smarter on that one. Pooling our demand is a must.

    My next point is about sharing gas in Europe. We know that some Member States are more directly exposed than others to Russian gas. The situation is especially challenging for landlocked countries in Central Europe. But in the end, if you look at our Single Market with highly integrated supply chains, a disruption in one Member State has a massive impact on all Member States. So, sharing gas is absolutely critical. Member States have already, since five years, an obligation under EU law to conclude solidarity agreements with their neighbours in their home region. However, if you look at what has been concluded so far, of 40 possible agreements only 6 have been concluded. This is simply not enough in times of a crisis like this one. This is why we will put in place default rules for Member States. These rules will be binding, as long as Member States do not conclude individual solidarity agreements. Energy solidarity is a fundamental principle of our Treaties, so let us bring that to life, it is very simple.

    Honourable Members,

    These three measures – pooling, saving, sharing – will have a positive impact on the prices. But of course, more needs to be done to address the price spikes and to address the Russian manipulation of the energy market. Just to give you two figures: Compared to September 2021, if we look now at September 2022, Russia has cut 80% of its pipeline gas supplies. But Europe has been able to compensate all that. We have diversified towards our trusted partners, like for example Norway and the United States. We have increased the savings. And it is good, we achieved in September a reduction of 15%. We have filled our storages up to 92%. We did not give in to this blackmail. We made it. And I think we can be proud of that. We resisted. That is important. But we also see that resisting the Russian energy coercion comes at a price. European families have seen their gas bills skyrocketing. And our companies are struggling to keep up competitiveness. It is not only about the competitiveness in the Single Market – that is also important. But it is also about the global competiveness that our companies are fighting for.

    You might recall that in March, we proposed to the Council the option to cap gas prices. At that time, this did not gain any traction. But today, we are coming back to this. So what is the model? The current benchmark determining gas prices is TTF. TTF is only focused on pipeline gas. What we see now is that the market has really changed, from a pipeline gas market to a LNG market. So we need a new, a specific price benchmark for LNG. The Commission will now develop this complementary benchmark together with the European regulator. But this takes time. So in the meantime, as a stop-gap measure, we will limit prices at TTF. We call this the market correction mechanism. Yesterday, we proposed guiding principles as a first step. On this basis, we will prepare the operational mechanism in a second step. This is concerning the price cap at wholesale level.

    But gas also drives up the electricity prices. And here, the Iberian model comes into play. It really merits to be considered at EU level. There are still questions to be answered, but I want to leave no stone unturned. So let us face that, let us look at that and let us work on that.

    Honourable Members,

    We live in times of high economic uncertainty. And, as I said, I am concerned about the competitiveness of our economy – not only concerning the Single Market, but also concerning the global competitiveness of our economy. So, all our actions have to take this into account, all our actions have to take the competitiveness of our SMEs and our industry into account. This includes that we will introduce a standard competitiveness-check in our regulation. I think it is time to do that. In addition, we have to speed up investments all over Europe. If I speak about investment, it is infrastructure, it is energy efficiency and it is renewables.

    This brings me to REPowerEU. When we proposed REPowerEU in March, keep in mind that the situation was as such: There was a huge dependency on Russian gas. At that time, we anticipated that it would take several years to replace the Russian gas. Fact is today, it took us only eight months to replace two-thirds. In other words: We have massively accelerated the diversification to other suppliers of gas from abroad. But this comes at a high price. So the actual solution to maintain our competitiveness is to invest into home-grown sources of energy, especially renewables. That has to happen in all of Europe. However, only Member States with sufficient fiscal space can undertake these critical investments. This will inevitably unlevel the playing field of our Single Market.

    Therefore, we do not only need REPowerEU now, so we have to accelerate it, but we have to boost it, we have to increase its firepower. We will come with a proposal on that because it will give every Member State the same opportunity to prepare for the future. This is not only about energy, this is about our global competitiveness and it is about our sovereignty.

    Long live Europe.

    Many thanks.

  • Wendy Chamberlain – 2022 Speech on Standards

    Wendy Chamberlain – 2022 Speech on Standards

    The speech made by Wendy Chamberlain, the Liberal Democrat MP for North East Fife, in the House of Commons on 18 October 2022.

    I rise today to speak in favour of the two amendments on the Order Paper in my name. I will confine my comments to those amendment, but first I want to echo the expressions of thanks to the Standards Committee and its Chair, the hon. Member for Rhondda (Chris Bryant), for their work. I also offer my thanks to the right hon. Member for Staffordshire Moorlands (Karen Bradley), the Chair of the Procedure Committee, who met me earlier this year in relation to this issue. I am grateful to her and her Clerks for giving me their time.

    As has been highlighted by both the Leader of the House and the shadow Leader of the House, my amendments make a straightforward change to what happens when the House votes on a motion to sanction a Member for their conduct. At the moment, a Member in that situation can vote on their own censure. Some of us might think that would never actually happen after an independent investigation has found a Member not only responsible for breaking the code of conduct but responsible for such an egregious breach that their privileges as a Member of this place should be curtailed as a result. We would like to think that there would be a sober reflection and making of amends in that situation but, sadly, we know that is not always the case.

    It is less than a year since the censure of the former Member for North Shropshire. In those two votes, the former Member voted against his own suspension. As a result, I secured a Standing Order No. 24 emergency debate on standards, as an opportunity for the House to begin repairing the potential damage that affects us all in this place when such things happen.

    It might be the former police officer in me—I have mentioned being a former police officer a few times today, as I spoke in the debate on the Public Order Bill—but it infuriates me that a Member can vote on their own suspension. It puzzles me, too. Surely, with the million rules and conventions in this place about what we can and cannot do, it should not have been allowed.

    I had a look and spoke to the Clerks, who are much appreciated by all of us as a fount of knowledge. I found that, yes, there is a convention that, although Members can speak at the start of a debate on their conduct, the expectation is that they should subsequently withdraw, with the implication being that they should not return for the vote. There is a further convention that a Member can lodge a motion objecting to another Member’s participation in a vote in which they have a financial interest in the outcome, but I think you would agree, Madam Deputy Speaker, that this is cumbersome and basically impossible with the rate of business and the number of MPs that we now have in this House.

    Importantly, they are both currently conventions, not rules. Simply put, conventions last only as long as people choose to adhere to them. When people do not, it reflects on all of us. The Conservative party potentially had the most mud stuck to them as a result of what happened last year, but this is House business and it reflects on all of us to ensure that we uphold standards in this place.

    My two amendments amend the Standing Orders to make these two conventions a rule. Members will not be able to vote on sanctions relating to proven breaches of the code of conduct by themselves. It is worth noting that the vast majority of cases considered by the Standards Commissioner are either not upheld or are rectified without further action, but there are always MPs under investigation, and I suspect there always will be. Although it has nothing to do with those individuals, it is important that we as a House are seen to be acting accordingly.

    Where cases are more serious and there is a report to the Standards Committee, and where all the appropriate procedures, including those set down in the motion itself, have been followed and the recommendations reach the Floor of the House, we must ensure that due process is done and, most importantly, seen to be done.

    Ironically, it was during Parliament Week last year that we saw the situation that the shadow Leader of the House mentioned, and it is almost Parliament Week again. When I talk to my constituents, they ask me about working here, fairness and transparency, and I genuinely think this is the best job I have ever had. It is an enormous privilege, and I think the vast majority of Members agree and want to act accordingly.

    I want to be able to tell my constituents, and I feel very encouraged that I will be able to do so, that we have taken a long, good look at ourselves and that the vast majority of us who want to maintain those high standards and hold the respect of the people we serve did something to make things better.

    I am keen that this is not seen to be a party political issue, and the hon. Members for Batley and Spen (Kim Leadbeater), for Brighton, Pavilion (Caroline Lucas), for Rutland and Melton (Alicia Kearns) and for Lancaster and Fleetwood (Cat Smith), and the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), all put their names to the amendments. For that reason, I hope very much that I will not need to press them to a vote. If there is an objection, I intend to do so this evening.

  • Thangam Debbonaire – 2022 Speech on Standards

    Thangam Debbonaire – 2022 Speech on Standards

    The speech made by Thangam Debbonaire, the Shadow Leader of the House of Commons, in the House on 18 October 2022.

    I thank the Leader of the House for tabling the motions. I also thank my hon. Friend the Member for Rhondda (Chris Bryant) and his Committee for all the hard work that they have put into their inquiries and reports on standards over many months. I really would have liked to see all that work recognised in the motion today. After months of calling on the Leader of the House and her predecessors to implement the Standards Committee’s full recommendations, I am sure that the right hon. Lady will have imagined my initial excitement when I heard the words “Members’ code of conduct” during her recent business statement, but sadly that turned to some disappointment when I found that it did not include all the Committee’s work to strengthen standards in Parliament. I understand what the right hon. Lady has said, but I will come back to that shortly.

    Let me now turn to the substance of our debate: the appeals process. Let me first place on the record my thanks and welcome for the work that Sir Ernest Ryder has done on the House’s current system for the Standards Committee. It has been helpful to have a well-respected external figure investigating whether or not our existing standards needed to be improved or strengthened. I know that the Committee made good use of Sir Ernest’s extensive experience when considering the important issues of fairness, natural justice and the right of appeal, and I note that he gave thoughtful and considered support to our standards system overall. I picked out the issues of fairness, natural justice and the right of appeal because I seem to remember those words being used in a debate on 3 or 4 November 2021 which, I am afraid, did not show the House in a good light. That is partly why we are here today.

    Sir Ernest proposed that there should be a right of appeal against both the findings of the Standards Committee and any sanctions that it imposed or recommended. It seems wholly sensible that such an appeal should be to an independent body with judicial expertise, and that leads us inevitably to the Independent Expert Panel. I am assured that its chair, the right hon. Sir Stephen Irwin, has said that the panel should be able to take on this role, and that it should be able to manage the workload without expanding the current panel size of eight. I am grateful to him for that confirmation. I assure the Leader of the House that she has my support on the motions, and that they will be supported by the Opposition.

    However, let me turn to the slightly wider but related issue of standards in general and, in particular, standards and ethics in parliamentary and governmental life. It was the well-respected former Cabinet Secretary Lord O’Donnell who said recently, “It’s always best to look at reasons why your predecessor fell and fix that.” Unfortunately, however—and I say this with disappointment and sadness, because it affects all of us in this place—everything we have heard from the current Prime Minister, not just during her leadership campaign but in the context of her lack of action since taking office, suggests so far that we are in for more of the same when it comes to trashing standards. I wanted to believe that that was not so, but the Prime Minister even refused to say that she would appoint an independent ethics adviser after the previous two had resigned—admittedly, under the previous Prime Minister—in despair.

    I am glad that the Leader of the House has said that the Government are committed to appointing one, but I want to see some urgency. It would be reassuring for the House and for the country if the Prime Minister could commit to appointing that much-needed ethics advisor.

    On parliamentary standards specifically, there should have been a lot more in the motion—namely, the rest of the recommendations, in my view. I thank the Leader of the House for her update, and she has been extremely co-operative with me and my office on this, but again we need some urgency to repair the damage that has been done by some—not all—on the Government side to the public’s view of how we conduct ourselves in this place and the surrounding neighbourhood.

    In response to my questioning on this at business questions last Thursday, the Leader of the House said:

    “It is not that we are not doing them”.—[Official Report, 13 October 2022; Vol. 720, c. 260.]

    I absolutely believe her, but does this mean that the Government will bring forward a motion to cover all the Standards Committee’s recommendations? I get that sense from what she has said, and I would like to know that that is the general direction of travel, but if not, why not? Can she tell us which ones the Government like and which ones they do not? I would be grateful if she could give us a much more specific timeframe for when they will be brought forward.

    I welcome the assurances that the Leader of the House has given, but when it comes to parliamentary standards and the Tories, I think she probably understands why the public are feeling a lack of trust. Unfortunately, it is the party that refused to fix a loophole that let one Member off the hook for a particular misdemeanour. It is the party that was prepared to change the rules retrospectively seemingly to support cash for access but not to stop sexual harassment.

    I do not kid myself that there was ever a golden age when the public saw us all as completely trustworthy and the holders of the highest standards, even though I believe that most of us in this House absolutely are. However, the public need to—and at times have been able to—trust the system of standards enforcement and sanctions around our general principles. As my hon. Friend the Member for Rhondda once told me, there have been rules on how MPs should behave honourably since 1695. Since that time, the rules have only ever gone in one direction, which is to be strengthened—that is, until some Conservative Members unfortunately sought to drag them backwards during the Owen Patterson affair, which showed all too clearly that we have, in Conservative Members, some people who seem to be willing to change the rules retrospectively if they or their mates get caught.

    Until we see a motion on the Order Paper covering all the Standards Committee’s recommendations—or some form of them—we can only assume or guess that the Government have apprehensions about bringing them forward. Banning MPs from doing paid consultancy work and increasing the transparency of Members’ interests are measures that Labour has long been calling for, and I believe that there is cross-party support for them. I have referred to the Owen Paterson affair with good reason, because that was the place where some of those concerns grew really strong.

    We will of course support the amendments tabled by the hon. Member for North East Fife (Wendy Chamberlain). It seems a great pity that they needed to be put into writing, but evidently they did—

    Wendy Chamberlain (North East Fife) (LD) indicated assent.

    Thangam Debbonaire

    I see that the hon. Member is nodding. I support the amendment and the motions, but I want to put on the record that if we were in government and I were at the other Dispatch Box, I would want to enact the Standards Committee’s recommendations as soon as possible.

    In that vein, can I urge the Leader of the House to bring forward a further motion to do the work that she has referred to? She will find that she has support from this side for any co-operative and collaborative work that she wishes to do, and even for any critical or difficult work. We stand ready to work with her. This is not a matter that should be party political, although I have made some party political points because unfortunately it has been shown to be so in the past year. I will support the motions and the amendments, and I commend the report and the inquiries of the Standards Committee to all right hon. and hon. Members.

  • Penny Mordaunt – 2022 Statement on Standards

    Penny Mordaunt – 2022 Statement on Standards

    The statement made by Penny Mordaunt, the Leader of the House of Commons, in the House on 18 October 2022.

    The House is being asked to consider the creation of an appeals process for non-Independent Complaints and Grievance Scheme cases to be heard by the Independent Expert Panel. The motion would introduce the formal appeals process that Sir Ernest Ryder recommended and proposes that the panel would hear appeals against the decisions and sanctions of the Committee on Standards. The motion also puts to the House the new procedural protocol, which would sit alongside the new appeals process.

    I am grateful to the Committee on Standards for its work reviewing the code of conduct for Members and the overall operation of the standards system in the House of Commons. Since becoming Leader of the House, I have had some discussions with the Chair of the Committee, the hon. Member for Rhondda (Chris Bryant), who I look forward to hearing from today. I assure him and the House that the Government have carefully considered his Committee’s recommendations, alongside the procedural protocol and covering report.

    I am sure that the whole House agrees that Members of Parliament must uphold the highest standards in public life and that the procedures we have in place must be fair, robust and command the respect and confidence both of Members and the wider public. I believe that today’s motion takes a positive step in the right direction.

    There are other issues that are not covered in the motions today, and I plan to seek consensus on a wider package and to come back to the House in due course, but it is good to make progress on the issues as we can.

    Before coming to the substance of today’s motion, I wish to briefly cover some areas in relation to the wider proposed package of changes from the Committee on Standards that we are not debating today. Let me be clear: I am very conscious that there is further progress to be made and the House should have the opportunity to consider the additional recommendations proposed by the Committee. I reassure the House and the Committee that we are seeking to identify solutions that can command cross-party support on those outstanding issues.

    Specifically, the Committee made recommendations on measures to improve the transparency and timeliness of ministerial declarations. The Government are clear in their views that the rules regulating Members’ interests and ministerial interests are necessarily distinct, reflecting the underlying constitutional principle of the separation of powers. There are differences between the role of an MP and that of a Minister and, reflecting that, the rules differ on what interests are permitted and how potential conflicts of interest are managed. There are clear rules regarding the registration of interests and the receipt of gifts in the ministerial code and Ministers should, and do, take their responsibilities very seriously. Nevertheless, I recognise the concerns of the Committee. Since being appointed Leader of the House, I have raised those concerns and have instructed officials to bring forward proposals for an improved system.

    I can confirm to the House that revised guidance on ministerial transparency data will be published in the coming weeks. We will also publish it on gov.uk for the first time. The guidance has been updated to more closely reflect modern working practices and Ministers’ obligations under the ministerial code.

    It is important that the Government conduct ourselves openly. I will continue to work with the Cabinet Office and across Government to ensure that we are fulfilling our obligations. In doing so, I keep very much in mind the challenge set for me by the Chair of the Committee on Standards: that a Member who attends an event such as the BAFTAs should report in a particular way, so a Minister who attends the same event should report in a similar way and their interests should be transparent to the public. I hope that the House and the Committee will support these changes; I will happily engage with the Committee should they not have the desired effect. [Interruption.] For the benefit of Hansard, the Chair of the Committee chuckled knowingly.

    The House will be aware that an appeals process is already in place within some aspects of the parliamentary standards system. Those who are subject to investigation under the Independent Complaints and Grievance Scheme have the right of appeal to the Independent Expert Panel, which is chaired by the former High Court judge Sir Stephen Irwin. The ICGS and the IEP have been an essential part of achieving positive culture change in the House and demonstrating its rigorous judicial process, its transparency of operation and the right to appeal.

    The Government have therefore welcomed Sir Ernest Ryder’s report and his timely review of the Commons standards system and its compatibility with the principles of fairness and natural justice. As we set out in a letter to the Committee on Standards, the Government supported the majority of the proposals, including the introduction of a formal appeals process. We note that the Committee has accepted all the recommendations, with a few minor modifications. I welcome the proposal that appeals be heard by an independent body with judicial expertise. We also welcome Sir Ernest’s consideration of the grounds for appeal and the acceptance that the Independent Expert Panel is the appropriate body to hear appeals.

    We propose two main amendments to the procedural protocol. First, we propose to amend paragraph 118 to allow MPs to inform their own staff in the event that they are subject to investigation by the Parliamentary Commissioner for Standards. Secondly, we propose to leave out paragraph 62 on Members recusing themselves if not present for all but a “small proportion” of evidence sessions. These amendments reflect the Government’s position, as set out in our response to the Committee; I hope that the House and the Committee will support them. The other proposed amendments are purely technical changes to ensure that the protocol works with the current version of the rules and guide.

    I wish to speak briefly about amendments (a) and (b) in the name of the hon. Member for North East Fife (Wendy Chamberlain) and others. The amendments stipulate that

    “no Member shall be eligible to participate in any division on such a motion where it relates to their own conduct.”

    That stipulation would apply both to conduct motions related to breaches of the code of conduct and to motions related to the ICGS. This is, of course, a matter for the House to consider. I note that the Committee on Standards chose not to pursue the issue in detail as part of the inquiry.

    I am aware that the Chair of the Procedure Committee, my right hon. Friend the Member for Staffordshire Moorlands (Karen Bradley), has raised the issue of Members being permitted to vote on their own suspension. My predecessor wrote in response to her that there would be benefit in the Committee’s looking into whether such changes are needed. If necessary, they could be put to the House for consideration. Hon. Members will be aware that there is a convention that Members should not participate in such votes. In our parliamentary democracy, conventions guide how we work in this place, and codification of these norms should be carefully considered; I would therefore welcome it if the matter were considered by the appropriate Committee. Subject to its approval, the Government would be happy to bring the matter back to the Floor of the House for approval in due course.

    If there is no objection from the Chair of the Committee on Standards or from other hon. Members present, I would certainly be content to support these amendments.

    Chris Bryant (Rhondda) (Lab)

    I see no reason why we should not simply put what is already a convention into, as it were, the statutes of the House—the Standing Orders. I support the motion and, looking around the Chamber and seeing other members of the Committee who are present, I think that they will as well. I think it would save us all a bit of time if we just got on with it and agreed to the amendments.

    Penny Mordaunt

    I thank the right hon. Gentleman for that helpful intervention.

    Karen Bradley (Staffordshire Moorlands) (Con)

    May I add my view, as Chair of the Procedure Committee? I feel that the amendments are absolutely fine, and we should be happy to see them passed tonight.

    Penny Mordaunt

    I thank my right hon. Friend for her support for the amendments. We are hopefully saving ourselves some time, and efficiency is always great to see. It is important to point out, however, that if Members did object and wanted the Committee to look at this, they could oppose the amendments, which are obviously subject, potentially, to a vote tonight.

    We support the work being undertaken to introduce measures to empower the standards system in Parliament, and I am committed to continuing conversations both within Government and with parliamentary colleagues to continue to introduce improvements proposed by the Committee on a cross-party basis. I assure the House that my door is always open and I am always willing to discuss these matters with all Members. I hope that the House will approve the proposed changes, and I commend them to the House.

  • Catherine West – 2022 Speech on the Chinese Consulate and Attack on Hong Kong Protesters

    Catherine West – 2022 Speech on the Chinese Consulate and Attack on Hong Kong Protesters

    The speech made by Catherine West, the Labour MP for Hornsey and Wood Green, in the House of Commons on 18 October 2022.

    I am so pleased that there is consensus across this House that freedom of expression is an important principle which we hold dear in our democracy, and it is testament to our freedoms that on countless occasions in recent years protesters have been able to express their views, whether on China, Russia, Myanmar or countless other countries.

    What we saw at the weekend in Manchester was, as the Mayor of Manchester has said, a sharp departure from this established pillar of our liberal democracy. The sight of suspected Chinese consular officials destroying posters, using violence and intimidation, and dragging a protester into the grounds of the consulate and assaulting him is deeply shocking. We all want to be clear that that behaviour is not and never will be acceptable and deserves condemnation in the strongest possible terms. We simply cannot tolerate the type of action we have seen. The principle of free expression is so important, as is the protection of Hong Kongers and others who have fled Beijing’s repression, although I note with irony that later today we will be debating a Government Bill that discusses some of the same themes.

    Labour has been consistently warning about the need to protect newly arrived Hong Kong people. May I press the Minister on what exactly will happen to consular officials who have been properly identified as involved in this incident? Can this House expect that they will be expelled from the UK?

    What discussions has the Minister had with the Home Office and Levelling Up Secretaries on a proper plan for robust and extensive support for Hong Kong people across the country to ensure that they are protected and supported in the face of ongoing surveillance and oppression? What steps will he take to ensure that the sanctity of our freedoms—specifically, the freedom of expression—is protected outside all foreign embassies and consulate grounds in the UK to avoid a repeat of this shocking behaviour? Mr Speaker, as you said yesterday, the Hong Kong community in the UK is watching, and actions must match words.

    Jesse Norman

    I thank the hon. Lady for her questions. She asked about the treatment of consular officials. Of course, I would wish to be able to give the House details of my personal views on these matters, but the fact of the matter is that we are in a process of law. I would expect that process to be diligently and effectively carried out, but, for reasons that she will understand, I cannot comment on it.

    As regards the treatment of Hong Kong visitors and arrivals to this country under the new scheme, my colleagues in the Home Office and the Levelling Up Department have taken great measures to put in place a welcome set of arrangements for them and to manage the processing in an effective and timely way. I am pleased that we have done that because we need to support Hong Kong in all the ways that I am sure she would welcome.