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Mr Tony Mcnulty House of Commons Committee on Standards and Privileges Mr Tony McNulty Tenth Report of Session 2008–09 Report and Appendices, together with formal minutes Ordered by The House of Commons to be printed 27 October 2009 HC 1070 Published on 29 October 2009 by authority of the House of Commons London: The Stationery Office Limited £0.00 The Committee on Standards and Privileges The Committee on Standards and Privileges is appointed by the House of Commons to oversee the work of the Parliamentary Commissioner for Standards; to examine the arrangements proposed by the Commissioner for the compilation, maintenance and accessibility of the Register of Members’ Interests and any other registers of interest established by the House; to review from time to time the form and content of those registers; to consider any specific complaints made in relation to the registering or declaring of interests referred to it by the Commissioner; to consider any matter relating to the conduct of Members, including specific complaints in relation to alleged breaches in the Code of Conduct which have been drawn to the Committee’s attention by the Commissioner; and to recommend any modifications to the Code of Conduct as may from time to time appear to be necessary. Current membership Rt Hon David Curry MP (Conservative, Skipton and Ripon) (Chairman) Rt Hon Kevin Barron MP (Labour, Rother Valley) Mr Andrew Dismore MP (Labour, Hendon) Nick Harvey MP (Liberal Democrat, North Devon) Rt Hon Greg Knight MP (Conservative, East Yorkshire) Mr Elfyn Llwyd MP (Plaid Cymru, Meirionnydd Nant Conwy) Mr Chris Mullin MP (Labour, Sunderland South) The Hon Nicholas Soames MP (Conservative, Mid Sussex) Mr Paddy Tipping MP (Labour, Sherwood) Dr Alan Whitehead MP (Labour, Southampton Test) Powers The constitution and powers of the Committee are set out in Standing Order No. 149. In particular, the Committee has power to order the attendance of any Member of Parliament before the committee and to require that specific documents or records in the possession of a Member relating to its inquiries, or to the inquiries of the Commissioner, be laid before the Committee. The Committee has power to refuse to allow its public proceedings to be broadcast. The Law Officers, if they are Members of Parliament, may attend and take part in the Committee’s proceedings, but may not vote. Publications The Reports and evidence of the Committee are published by The Stationery Office by Order of the House. All publications of the Committee (including press notices) are on the Internet at: www.parliament.uk/sandp. Committee staff The current staff of the Committee are Mr Steve Priestley (Clerk), Miss Rhiannon Hollis (Second Clerk) and Ms Jane Cooper (Committee Assistant). Contacts All correspondence should be addressed to The Clerk of the Committee on Standards and Privileges, Journal Office, House of Commons, London SW1A 0AA. The telephone number for general enquiries is 020 7219 6615. Mr Tony McNulty 1 Contents Report Page Mr Tony McNulty 3 Introduction 3 The Commissioner’s findings 3 Standard of Proof 6 Mr McNulty’s evidence 6 Conclusion 7 Recommendation 9 Appendix 1: Memorandum from the Parliamentary Commissioner for Standards 11 Appendix 2: Letter to the Clerk of the Committee from Mr Tony McNulty, 19 October 2009 68 Appendix 3: Letter to Mr McNulty from the Clerk of the Committee, 20 October 2009 71 Appendix 4: Letter to the Clerk of the Committee from Mr McNulty, 21 October 2009 71 Formal minutes 72 Mr Tony McNulty 3 Mr Tony McNulty Introduction 1. We have received a memorandum from the Parliamentary Commissioner for Standards, reporting on the outcome of his inquiries into a complaint against the Rt hon Member for Harrow East, Mr Tony McNulty. The memorandum is appended to this Report.1 2. The complaint against Mr McNulty was made in March 2009 by Mr Greg Hands, the Member for Hammersmith and Fulham, following media reports that Mr McNulty had claimed against his Additional Costs Allowance (ACA) in respect of a property in his constituency where his parents lived. The property was only nine miles from Mr McNulty’s main home, in Hammersmith, and was just eleven miles from Parliament.2 3. The rules set out in the Green Book clearly state that: The Additional Costs Allowance (ACA) reimburses Members of Parliament for expenses wholly, exclusively and necessarily incurred when staying overnight away from their main UK residence … for the purpose of performing parliamentary duties.3 The essence of Mr Hands’ complaint is that Mr McNulty claimed against ACA for expenditure that was not wholly, exclusively and necessarily incurred for the purpose of performing his Parliamentary duties.4 The Commissioner’s findings 4. The Commissioner has established that Mr McNulty lives with his wife in Hammersmith, West London. Mr McNulty also owns a house in his constituency, which he bought for £135,000 in 1998, putting down a £7,000 deposit and borrowing the remainder.5 The mortgage on the Harrow property is in Mr McNulty’s name. Since March 1998, this property has been the sole residence of Mr McNulty’s parents, who pay many of the household bills and who look after the house but who have paid no rent.6 5. Mr McNulty designated his Hammersmith residence as his main home in late 2001 or early 2002. He claimed against the ACA for costs relating to his second home, in Harrow, from that time until December 2008. Following a thorough investigation, the Commissioner has concluded that for the six financial years from 2002–03 to 2007–08, the best estimate is that Mr McNulty spent between 52 and 66 nights a year in his Harrow 1 Appendix 1 2 Appendix 1, WE1 3 Appendix 1, paragraph 7 4 Appendix 1, paragraph 13 5 Appendix 3 6 Appendix 1, paragraph 54 4 Mr Tony McNulty home when on Parliamentary duties. The number fell to 33 nights for the 9 months from April to December 2008.7 6. The Commissioner notes that Mr McNulty’s claims against the ACA for the Harrow house in the four years from 2004–05 to 2007–08 were in the range £8,251 to £12,600 a year, which represented between 66% and 92% of the total estimated running costs of the Harrow house. These figures exclude sums later repaid. For the nine months from April to December 2008, Mr McNulty claimed £7,330, representing 46% of the estimated total running costs for the year 2008–09. Mr McNulty claimed mainly in respect of mortgage interest and council tax. The remaining running costs for the property were borne by him and his parents.8 The total claimed by Mr McNulty against ACA in the period 2002 to 2008 was £72,528.9 7. Mr McNulty ceased making ACA claims for his constituency property after December 2008.10 The Commissioner notes that in or around August 2009—that is, after the Commissioner had begun his investigation of Mr Hands’ complaint—Mr McNulty realised that he had claimed for twelve rather than ten monthly payments of full council tax in the years 2004–05, 2006–07 and 2007–08. Mr McNulty then made an immediate repayment of £444.31 in respect of the overclaimed sum and subsequently repaid a further £2,600 in respect of overclaims of mortgage-related payments for 2004–05 and 2006–07.11 8. The Commissioner concludes that there was nothing in the House’s rules to prevent a Member whose main home was within 20 miles of his or her constituency claiming ACA in respect of a second home, provided that the second home was needed in order to perform the Member’s Parliamentary duties. The Commissioner considers that it is: … right that Members should be given a good deal of discretion in deciding how best to perform those duties, including the duties in their constituency. It would no doubt have been possible for Mr McNulty to have undertaken most, at least, of his constituency duties in Harrow from his Hammersmith base if he had been prepared to have undertaken regular late night or early morning journeys and to have allowed plenty of time for traffic hold-ups. But I consider that it was reasonable for Mr McNulty to decide not to do this and to decide instead that he needed a residence actually in his constituency where he could stay overnight to enable him to carry out his constituency duties in the way he thought fit.12 The Commissioner concludes that Mr McNulty was within the rules in establishing a 13 second home within his constituency. 7 Appendix 1, paragraph 55 8 Appendix 1, paragraphs 39 and 56 9 Appendix 1, paragraph 16 10 Appendix 1, paragraph 57 11 Appendix 1, paragraph 58 12 Appendix 1, paragraph 66 13 Appendix 1, paragraph 67 Mr Tony McNulty 5 9. In order to resolve the complaint, the Commissioner has considered whether the expenses for which Mr McNulty claimed against ACA in respect of his second home were wholly, exclusively and necessarily incurred by him for the purpose of performing his Parliamentary duties. The Commissioner notes that Mr McNulty has acknowledged that he breached the rules by mistakenly overclaiming for some of his mortgage-related payments, although it is not clear whether these were interest or capital repayments.14 Mr McNulty also breached the rules by claiming for twelve monthly council tax payments in 2004–05, 2006–07 and 2007–08, when he had made only ten. All these overclaimed sums, amounting to just over £3,000, have since been repaid. 10. The Commissioner also considers that Mr McNulty should not have claimed the full council tax because, had his parents not been in the home, he would have qualified for a discount.
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