Proposed Revisions to the Guide to the Rules Relating to the Conduct of Members

House of Commons Committee on Standards and Privileges

Proposed Revisions to the Guide to the Rules relating to the conduct of Members

Third Report of Session 2012–13

Report and Appendix, together with formal minutes

Ordered by the House of Commons to be printed 4 December 2012

HC 636 Published on 6 December 2012 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 Kevin Barron MP (Labour, Rother Valley) (Chair) Sir Paul Beresford MP (Conservative, Mole Valley) Annette Brooke MP (Liberal Democrat, Mid Dorset and North Poole) Rt hon Tom Clarke MP (Labour, Coatbridge, Chryston and Bellshill) Mr Geoffrey Cox MP (Conservative, Torridge and West Devon) Matthew Hancock MP (Conservative, West Suffolk) Oliver Heald MP (Conservative, North East Hertfordshire) Julie Hilling MP (Labour, Bolton West) Heather Wheeler MP (Conservative, South Derbyshire) 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 Eve Samson (Clerk), Margaret McKinnon (Second Clerk) and Miss Christine McGrane (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.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 1

Contents

Report Page

1 Introduction 3 The Commissioner’s proposals 3 The basis of the rules 5 Greco Evaluation 6

2 Lobbying for reward or consideration 7 The previous ban on initiation 9 Former Members and Lobbying 12 Other proposals relating to lobbying 13

3 Code of Conduct 15

4 The future 16

5 Next steps 17

Annex 1: The Commissioner’s Recommendations and the Committee response18

Annex 2: Proposed New Guide to the Rules as recommended by the Committee 25

Formal Minutes 62

Appendix 1: Memorandum from the Parliamentary Commissioner for Standards EV 1

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 3

1 Introduction

The Commissioner’s proposals

1. The Committee on Standards in Public Life has recommended that the Code of Conduct and the Guide to the Rules relating to the Conduct of Members should be reviewed once each Parliament. Standing Order No. 150 provides that one of the duties of the Parliamentary Commissioner for Standards is:

to monitor the operation of such code and registers, and to make recommendations thereon to the Committee on Standards and Privileges or an appropriate sub- committee thereof.

As we explained in our Report on the Code of Conduct, that work was delayed in the last Parliament, because of the need to take account of and respond to the expenses scandal.1

2. In this Parliament the Commissioner has consulted on revisions to both the Code and to the Guide to the Rules. The House has already dealt with revisions to the Code of Conduct. The Commissioner has now set out his recommendations on the Guide to the Rules in the memorandum published alongside this Report. Responses to the consultation can be found on the Commissioner’s web pages

3. The Commissioner’s work has resulted in an entirely new Guide. In addition to proposed changes in practice, the content is set out much more clearly. Although the result should be helpful to Members, this radical revision means that Members and their staff should read the revised Guide carefully, to ensure they comply with the new arrangements. We are extremely grateful to the Commissioner and to those who assisted him in improving the current Guide.

4. The draft Guide attached to our Report shows where we have amended the draft put forward by the Commissioner. It does not indicate where changes have been made to the existing Guide. The revised Guide we propose:

• reduces the number of registration categories, from 12 to 10 (with one, rather than three, employment categories);

• enables Members to make a single registration of regular employment payments and to register any work undertaken in advance of the payment being received;

• clarifies and harmonises the rules in relation to registering gifts, benefits and hospitality given to third parties in relation to a Member’s membership of the House or a Member’s political activities;

• harmonises the rules for registering property, gifts, benefits and hospitality from United Kingdom and foreign sources;

1 Nineteenth Report of Session 2010–12, Review of the Code of Conduct, HC 1579, paragraph 2

4 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

• harmonises the rules on providing the date when an interest was acquired so that that the same rule applies for all categories;

• accepts the specific recommendation from the Committee on Standards in Public Life2, so that Members who were Ministers in the preceding two years state in their register entry whether they sought the advice of the Advisory Committee on Business Appointments before accepting any employment they register;

• changes the rules on lobbying, to prevent a Member initiating proceedings or approaches to Ministers, other Members or public officials which could confer a financial or material benefit on a person or organisation from whom he or she, or a family member, receives reward or consideration, while ensuring that Members remain able to bring their outside experience to bear on matters of public policy;

• provides that former Members should be bound by the lobbying rule for six months after they have left the House;

• requires all Members to register in a new category details of any family members involved in public sector lobbying;

• updates the procedure for inquiries and removes the requirement for the Commissioner to consult the Committee before initiating an inquiry following a self-referral by a Member;

• lowers the thresholds for registration as set out in the following table:

Category Financial threshold for registration

1. Employment and Over £100 for individual payments earnings Over £300 for the total of multiple payments of whatever size from the same source in a calendar year

2. Donations and other Over £1,500, either as individual payment, or for the total of multiple support donations of more than £500 from the same source in the course of a calendar year

3. Gifts, benefits and Over £300 for the total of benefits of whatever size from the same hospitality from UK source in a calendar year sources

4. Visits outside the UK Over £300 if not wholly borne by Member or public funds

Threshold also applies to the total of benefits of whatever size from the same source in a calendar year

5. Gifts and benefits Over £300 for the total of benefits of whatever size from the same from sources outside source in a calendar year the UK

6. Land and property Total value of property held: over £100,000 in the UK and elsewhere Income derived from property: over £10,000 in a calendar year

2 See CSPL response to the consultation, on the Commissioner’s webpages

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7. Shareholdings Greater than 15% of issued share capital (on preceding 5 April), or if 15% or less of issued share capital (on preceding 5 April), greater in value than £70,000

8. Miscellaneous No threshold.

9. Family members Remuneration of over £700 in a calendar year employed and remunerated through parliamentary expenses

10. Family members No threshold. engaged in lobbying

5. If the House does not agree with our recommendations, the Guide to the Rules attached to this Report can be amended when the matter comes to the House for decision.

The basis of the rules

6. At the suggestion of the Clerk of the House, the Commissioner has proposed a radical change to the way in which the rules themselves are defined. In the past the rules of the House relating to the conduct of Members have rested on a series of separate Resolutions. As the Clerk of the House said in his response to the Commissioner’s consultation:

there is a certain amount of doubt about what actually constitutes the “rules” of the House; the Code, and, particularly, the current edition of the Guide to the Rules rest on a series of Resolutions, some of considerable antiquity. The relationship between those resolutions and the Guide is not clear. Other matters, such as the rules relating to All Party Groups, are governed by Resolutions which are regularly amended; there are further rules which are found in various handbooks or leaflets for Members.3

7. We agree with the Clerk of the House and the Commissioner that the situation should be clarified, and that the number of different sources for the rules should be reduced. Defining the rules of the House through a series of Resolutions of varying antiquity, which need to be regularly amended, is unsatisfactory. The spirit of these Resolutions underlies the House’s Code of Conduct for Members, and there is no need to repeal them. But we do not consider it necessary to rely on them to set the parameters of acceptable conduct any longer. The new Code approved by the House on 12 March this year contains Rules of Conduct. This Guide sets out guidance on the practical application and interpretation of some of those rules. The existing Resolutions should remain in force, but we invite the House to agree the following Resolution:

That previous resolutions of this House in relation to the conduct of Members shall be read and given effect in such a way which is compatible with the Code of Conduct and the Guide to the Rules relating to the Conduct of Members.

3 See response to the consultation, on the Commissioner’s webpages

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8. The Code and the Guide to the Rules do not cover every aspect of the rules governing Members’ conduct in the House. There are a number of administrative rules about the use of facilities which would not sit sensibly in this body, and there are conventions and rules about behaviour in the Chamber. We welcome the fact that the new Members’ Handbook on the internet contains links to relevant guidance, which should ensure these other rules are more easily accessible to Members than they were before.

Greco Evaluation

9. Earlier this year the Group of States against Corruption (GRECO) conducted its fourth evaluation round, “Corruption Prevention in respect of Members of Parliament, Judges and Prosecutors.” GRECO is a body of the Council of Europe, of which the United Kingdom is a member. GRECO conducts its work in a series of evaluation rounds. The process is that after an initial questionnaire an evaluation team visits the country and prepares a draft report which is then adopted by the GRECO plenary. The evaluation team for the UK visited earlier this year and met the Chair and the Parliamentary Commissioner for Standards among others.4 Although we await publication of the final Report we are aware of the GRECO recommendations. We have considered those recommendations carefully and taken them into account in the course of revising the Guide to the Rules.

4 The evaluation team members for the UK were Ms Jane Ley, Deputy Director, US Office of Government Ethics (United States of America), Mr José Manuel Igreja Martins Matos, Judge, Vice-President of the Ibero-American Group of the International Association of Judges, Judge in courts in criminal, civil and labour matters (Portugal), and Ms Marja Tuokila, Counsel to the Legal Affairs Committee, Parliament (Finland).

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2 Lobbying for reward or consideration

10. In the previous Session the Committee considered the case of Members of Parliament approached by undercover reporters purporting to offer employment after they had left the House. Some, but not all, of those approached, breached the rules of the House. In our subsequent Report we noted the case for a wider review of the content and operation of the rules relating to lobbying, in particular the paid advocacy rule, the rules relating to former Members and those relating to meetings with officials and agreed there was a strong case for a review of the rules relating to lobbying.5 The revision of the Guide has provided an occasion for such a review. We appreciate the Commissioner’s real concerns about how to balance the need to ensure that Members have access to and are able to deploy the broadest possible knowledge, and the need to ensure that no impropriety occurs.

11. The Committee has considered and debated the Commissioner’s proposals relating to lobbying particularly carefully. As the Commissioner says, it is very important that “the absolute prohibition on paid advocacy should not be undermined by inadequacies in the lobbying rules.” We note his view that:

I do not believe that the current provision permitting lobbying other than for exclusive benefit is an adequate protection of the fundamental rule in the Code.

That concern must be addressed.

12. There is a balance of interest here, between ensuring that Members have access to and are able to deploy the broadest possible knowledge, and ensuring that no impropriety occurs. In its First Report the Committee on Standards in Public Life said:

We believe that those Members who wish to be full-time MPs should be free to do so, and that no pressure should be put on them to acquire outside interests. But we also consider it desirable for the House of Commons to contain Members with a wide variety of continuing outside interests. If that were not so, Parliament would be less well-informed and effective than it is now, and might well be more dependent on lobbyists. A Parliament composed entirely of full-time professional politicians would not serve the best interests of democracy. The House needs if possible to contain people with a wide range of current experience which can contribute to its expertise.6

Members should be able to bring their outside experience to bear on matters of public policy, but should not abuse their position to advantage those paying them.

13. The term “lobbying” can cover a wide range of behaviour. As the Committee on Standards in Public Life has said:

5 Ninth Report of Session 2010–11, Sir John Butterfill, Mr Stephen Byers, Ms Patricia Hewitt, Mr Geoff Hoon, Mr Richard Caborn and Mr Adam Ingram, HC 654–I, paragraphs 70–76 6 First Report of the Committee on Standards in Public Life, Standards in Public Life, Cm 2850-I, paragraph 19

8 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

The democratic right to make representations to government - to have access to the policymaking process - is fundamental to the proper conduct of public life and the development of sound policy.7

We note that the definition of lobbying in the Government’s consultation paper on a statutory register of lobbyists is:

those who undertake lobbying activities on behalf of a third-party client or whose employees conduct lobbying activities on behalf of a third party client.8

The consultation paper also notes that:

the register is not intended to capture or deter a range of activity that is essential to a vibrant democracy. So, for example, the register is not intended to cover the normal interaction between constituents and their MPs. Nor should the essential flow of communication between business leaders and government, civil figures, community organisations and Government and so on be included.9

We note that the narrowness of this definition has been criticised.10

14. In its response to the Commissioner’s consultation, the Committee on Standards in Public Life (CSPL) noted:

we acknowledge that there remains a question about whether the rule is appropriately drawn to ensure that while Members are able to speak on matters informed by their outside financial interests, there is sufficient transparency to enable the public to know about their interests and to assess their contributions accordingly. We consider that the precise formulation of the rule is a practical matter, rather than one of principle.11

Formulating the rule may be a practical matter, but it is not an easy one.

15. Chapter 3 of the current Guide to the Rules deals with the application of the ban on lobbying for reward or consideration, which is closely linked to paragraph 11 of the Code, and its underlying resolutions. The House’s current rules on lobbying for reward or consideration go wider than the definitions in the Government’s consultation paper. They encompass any registrable or declarable financial interest a Member may have. The scope of the rules will be affected by the level of the financial thresholds chosen for registration, and we agree with the Commissioner that some of those thresholds, particularly those relating to employment, should be reduced.

16. The current rules prohibit paid advocacy, that is the promotion of a particular matter for a fee or reward. The prohibition does not simply apply to formal Parliamentary

7 Sixth Report of the Committee on Standards in Public Life, Reinforcing Standards: Review of the First Report of the Committee on Standards in Public Life, Cm4557, paragraph 7.10 8 Introducing a Statutory Register of Lobbyists, Consultation paper, Cm 8233, January 2012, p 11 9 Cm 8233, p 9 10 Second Report from the Political and Constitutional Reform Committee, Introducing a statutory register of lobbyists, HC (2012–13)153 , paragraphs 17–20 11 See response to the consultation on the Commissioner’s web pages

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 9

proceedings, but also covers approaches to Ministers, public officials and colleagues. Despite this prohibition, Members are currently able to initiate proceedings or approaches to Ministers and colleagues providing that the intervention does not seek to confer benefit exclusively upon a body or individual outside Parliament from which the Member has received, is receiving or expects to receive a financial benefit, and that the benefit is properly registered and declared. As we reported in 2010:

The problem which the Commissioner has identified is that the relaxation of the rule [on lobbying] in 2002, which came about in response to a recommendation of the Committee on Standards in Public Life, has provided Members with a defence that the change or action which they are advocating would benefit, not just the person or body which is paying them, but a wider business sector to which that person or body belongs.12

17. The Commissioner proposes a distinction between actions which seek to set the parliamentary or policy making agenda, and participation in activities which someone else has initiated:

In my view, Members who initiate the action themselves—whether it be a proceeding in Parliament or in seeking a meeting or discussion with a Minister, another Member or a public official—are seeking to set the policy making or parliamentary agenda. Any Member who seeks to do that should in my judgement be seen to act only in the public interest. There should be no suspicion or suggestion that a private interest—of an employer or anyone else—might be involved. The Member should initiate no action, therefore, which could reasonably be thought by others to confer any financial or material benefit on an individual or organisation from which he or she has received, is receiving or expects to receive reward or consideration.13

He proposes that there should be a more stringent ban on initiating proceedings or other activities such as approaching Ministers or officials where lobbying by a Member could confer a financial or material benefit on those paying him or her.

The previous ban on initiation

18. As the Commissioner notes, this is a modified version of the approach taken by the Select Committee on Standards in Public Life. The Code of Conduct agreed by the House in 1996 also contained a ban on initiation. This applied as follows:

When a Member has received, is receiving or expects to receive a pecuniary benefit from a body (or individual) outside Parliament the Member may not initiate any parliamentary proceeding which relate specifically and directly to the affairs and interests of that body (or individual); any kind of such a body (or individual); any

12 HC 654–I, paragraph72 13 Appendix, paragraph 160

10 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

group, sector category or organisation whose affairs and interests are substantially the same as those of the outside body (or individual).14

The decision to remove the ban on initiation in 2002 was prompted by concerns that the rule was making it more difficult for knowledgeable Members to contribute to the House’s debates as effectively as they might. This concern was shared by the Committee on Standards in Public Life which considered that the then guidelines on paid advocacy and initiation were “operating unnecessarily harshly” and that the distinction between participation and initiation should be removed.15 Our predecessor Committee consulted on changes to the rules. It noted that the Committee on Standards and Privileges had earlier been reluctant to propose such a change in the rule because to relax the rules would fatally undermine the ban on paid advocacy, but that it had received further representations and would look at the matter afresh. It reported:

it was widely felt that the rules were operating too harshly when a Member with a registered interest in arable farming decided he would be unable to perform effectively as an opposition spokesman on agriculture because of the way the advocacy rule was applied.16

19. One of the cases which may have prompted the rethink of the original rules on initiation in 2002 was that of Tony Banks, who was given a researcher by an animal welfare charity because of his interest in animal welfare. The provision of that benefit was held to engage the advocacy rule and prevent him from tabling EDMs on the welfare of wildlife.17

20. The Commissioner’s proposal to ban initiation was itself drafted more narrowly than the 2002 ban but although we accepted this approach we considered that further clarification and modification was necessary so that the rules reduced the risk of improper lobbying, while allowing Members with outside interests to draw on their expertise and to raise matters of concern that they become aware of through such interests.

21. The new provision is much more tightly drawn than in the previous Guide. That banned initiation of “parliamentary proceedings which relate specifically and directly to the affairs and interests of that body (or individual)” or others with similar interests (see paragraph 18 above). The new formulation focuses on actions which seek to confer “financial or material benefit” on the person or organisation paying the Member, whether or not such benefit is exclusive to the individual or organisation concerned. Matters of general concern to the individual or organisation would not be caught by the prohibition, unless there was a financial or material benefit, although of course a Member would have to ensure relevant interests were registered and declared. So, for example, a Member who had received support from an animal welfare charity would be prevented from initiating matters which would provide financial or material benefit to the charity concerned, but he

14 See Committee on Standards and Privileges, Third Report of Session1995–96 The Code of Conduct and the Guide to the Rules Relating to the Conduct of Members, HC 604, paragraph58.1, CJ (9995–96) 527, HC (1995–996) 688 15 Sixth Report of the Committee on Standards in Public Life, Reinforcing Standards: Review of the First Report of the Committee on Standards in Public Life, Cm4557, paragraph 3.96 16 Fourth Report of Session 2001–02 Restrictions on the Initiation of Parliamentary Proceedings: A Consultation Paper, , HC 478, paragraph 5 17 Committee on Standards and Privileges, Seventeenth Report of Session 1997–98, Complaint against Mr Tony Banks, HC 769

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or she would be able to initiate proceedings to promote animal welfare more generally without falling foul of the new rule, as long as by doing so no financial or material benefit could accrue to the charity.

22. In consultation with the Commissioner, we have clarified and modified his original proposals in a number of ways.

23. First, we have inserted introductory material to set out the principles which underpin the rules.

24. Second, we have made it clear that the rules are aimed at Members seeking to provide a financial or material benefit to identifiable persons or organisations who are giving them, or who they expect to give them, payments or other material benefits. This therefore distinguishes lobbying for reward or consideration from lobbying which may provide a financial benefit to the Member him—or herself—where the rules on registration and declaration would apply and questions of conflict of interest might arise.

• While Members should not use the House to pursue interests which are wholly personal or particular, they can draw on their direct experience to deal with public policy matters. So, for example, a farmer would not be inhibited in raising matters which related to farming generally because a change in policy would also benefit the farmer him or herself—as long as the farmer is not also receiving reward or consideration from an outside person or organisation who is paying the Member;

• Where there is prospect of outside reward or consideration—i.e. third party payment— some relationship between the person or organisation and the Member concerned has to exist at the point where the Member takes action. The rules would not prohibit a Member taking action which might have the effect of giving him or her some possible future benefit from hypothetical third parties—so for example, a doctor in private practice would not be prohibited from pressing for the authorisation of some new treatment because in future some as yet unknown patient might pay to receive that treatment.

25. We have inserted a “whistle-blowing” provision to make clear that in exceptional cases, where there is some serious wrong or substantial injustice a Member may approach the responsible Minister or public official even if doing so might incidentally benefit a paying client.

26. We have carefully considered the definitions of initiating and participating in parliamentary proceedings, which were based on those in the 2002 Guide to the Rules.18 Procedure has developed since then. The 2002 rules did not apply to supplementary questions to another Member’s question. Since then, topical questions have been introduced, and are considered as supplementary questions.19 However, unlike other supplementary questions, the scope of such questions is not limited by the terms of a question tabled by another Member. A Member asking a Topical Question or a question to the Prime Minister has the opportunity to raise concerns or to press a case with Ministers

18 Published before the change to the rules on initiation 19 Official Report, Monday 26 November 2012, col 67

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on the floor of the House. If a Member would otherwise be prevented by the lobbying rules we propose from initiating proceedings or approaches, it seems to us illogical that those same rules should allow that Member to ask a question of his or her choosing on the floor of the House. We therefore consider that the definition of initiating proceedings should include Topical Questions and all questions to the Prime Minister.

Former Members and Lobbying

27. The Commissioner proposes the following rule:

Former Members

Former Members must abide by the restrictions of the lobbying rules for two years after their departure from the House in respect of any approach they make to Ministers, Members or public officials. During that period former Members must register with the Parliamentary Commissioner for Standards any occupation or employment for which they receive reward or consideration which involves them or their employer in contact with Ministers, Members or public officials. This registration must be made within 28 days of the occupation or employment being accepted. Former Members may not use their privileged parliamentary pass for the purposes of lobbying on the parliamentary estate.

These provisions do not apply to former Members who are Members of the House of Lords.20

28. The exemption for Members of the House of Lords reflects the fact that that House has its own registration requirements. We note that the provision relating to the use of the Parliamentary pass widens the existing rules prohibiting the use of the former Members pass to use the House’s dining facilities for lobbying.

29. We have considered very carefully the principles and the practicalities of this proposal. We recognise the potential problem which the Commissioner has identified. But, given the flexibility available to former Ministers through The Advisory Committee on Business Appointments (ACoBA), we are concerned that a two year rule for former Members would operate unnecessarily harshly and more fiercely than the rules for former Ministers. ACoBA considers the cases of former Ministers and civil servants and equivalents21 at Permanent Secretary or Director General level who wish to take up appointments within two years of leaving Crown servants. While there is no formal register of occupation for such persons the ACoBA annual reports do indicate the professions they have taken up. Public servants who are not covered by ACoBA rules may have to seek departmental approval for posts taken up within two years of leaving public service, depending on circumstances, but there is no easily accessible register of departmental approvals.

30. Ministers are subject to a two year ban on lobbying. The lobbying ban can be reduced by the Advisory Committee if they consider this to be justified by the particular

20 Guide to the Rules as annexed to the Appendix, Chapter 3, paragraph 11 21 Including Diplomats and members of the Armed Forces

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circumstances of a particular application.22 We note that the most recent report from ACoBA records that the lobbying restrictions have been eased in several cases. Unlike back-benchers, Ministers and senior public servants have direct involvement in making policy and may have direct decision making powers on contracts, even at levels below those monitored by ACoBA. We consider it could be disproportionate to impose a stricter regime upon former back benchers than upon former Ministers and Crown servants.

31. The Commissioner made this proposal:

to avoid any suggestion that imminently retiring Members had been influenced in their actions in the final stages of their political career by the prospect of becoming a paid lobbyist for any particular cause or that they had been prepared to exploit their recent parliamentary and governmental contacts developed in their role as a Member of Parliament for subsequent personal financial gain. The principal concern, therefore, is to protect the reputation of the House from adverse perceptions of the conduct of present Members—a suitable matter for the Code of Conduct and Guide to the Rules—on account of the potential lobbying activities of Members once they leave the House.23

The CSPL also notes:

It is important for public confidence in Parliament to ensure that, during their time in the House, Members are not perceived to be influenced in their behaviour by the hope or expectation of future personal gain.24

32. We recognise the significance of these concerns. We consider that they would be met by a requirement that Members should be bound by the lobbying rule for six months after they leave the House. We have also considered carefully the enforceability of both proposals: that relating to registration and that relating to lobbying. We consider it is not necessary at this stage to put in place a register for former Members. It would nonetheless be possible to put in place sanctions to deal with a limited ban on public sector lobbying. Passes can be withdrawn from those who disregard the rules, including from former Members or anyone else holding a House of Commons pass. A six month ban is proportionate, and it would possible to take prompt action to identify breaches of the rules and withdraw passes.

33. We trust the Committee on Standards would take a stern line if a sitting Member was influenced in his or her actions by the prospect of becoming a paid lobbyist, or entered into improper agreements relating to future lobbying activities. We have amended the proposed Guide to make this clear.

Other proposals relating to lobbying

34. We agree with the Commissioner’s recommendation that:

22 ACOB Annual Report 2010–11, p 21 23 Appendix, paragraph 166 24 CSPL memo published on the Commissioner’s webpages

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Members who were Ministers in the preceding two years state in their register entry whether they sought the advice of ACoBA before accepting the employment they now register.25

35. We also agree that there should be a new category under which Members should register family members engaged in lobbying the public sector. The original proposal was that this category should include details of the clients of any such family members. We consider that this not only raises practical difficulties, it also intrudes too much on the privacy of family members and their clients, and have amended the proposed Guide accordingly.

25 Appendix, paragraph 54

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3 Code of Conduct

36. In March this year, the House amended the Code of Conduct we put forward. It accepted the principle that the Code should extend to conduct which significantly damages the reputation and integrity of the House of Commons as a whole or of its Members generally, but an amendment passed by the House inserted a proviso that the Commissioner may not investigate any such matter which related only to the conduct of a Member in their private and personal lives.

37. In his memorandum the Commissioner notes:

In my judgement the current position is both unsatisfactory and uncertain. In such wholly exceptional circumstances the House would either be unable to act or would have to try to initiate some unprecedented procedure without the involvement of the independent Commissioner appointed by the House to do this work.26

We agree. The current position is that either (a) there is no person or body who can consider breaches of the requirement not to undertake any action which would cause significant damage to the reputation and integrity of the House of Commons as a whole, or of its Members generally in relation to actions taken in a Member’s personal and private life or (b) that the Committee itself should investigate such allegations. We do not consider it appropriate for the Committee to be both investigating and sentencing body.

38. We understand our colleagues’ reservations about investigations into purely private and personal matters. It was clear from the debate that some of the difficulty may have been in definition: is, for example, a breach of the law committed in private life a purely personal and private matter? Trying to refine definitions simply opens more grounds for argument and challenge, but we consider that the House needs to have the ability to take action in extreme circumstances. Like the Commissioner, we are attracted by the proposal the Chair of this Committee put forward, namely that the Commissioner should be able to investigate, but should be able to do so only with the express consent of the Committee on Standards, and that consent should be given only in exceptional circumstances.

26 Appendix, paragraph 186

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4 The future

39. The current Parliamentary Commissioner for Standards, John Lyon CB, will end his term on 31 December 2012. He has held the office in the most testing circumstances. His good judgement was crucial in enabling the Committee to deal with the expenses scandal. The thoroughness of his investigations was beyond doubt. Under his guidance we have been able to set in place clear mechanisms for ensuring that where there could be a clash between Parliamentary and criminal investigations, criminal investigations always take precedence. We pay tribute to his independence and integrity and the exemplary way in which he has performed his role over the last five years.

40. We have been able to draw on our own experience and that of the Commissioner in making the proposals set out in this Report. This has enabled us to consider both matters of principle, and the practicalities of applying such principles. On 12 March 2012, the House agreed to establish a new Committee on Standards, which will contain three lay members. We expect the motion nominating those lay members to appear before the House very shortly. When it is approved, this Committee will cease to exist. This is a change we ourselves sought, and we welcome it. The lay members should not be seen as spectators, judging whether or not the Committee on Standards is acting reasonably in coming to judgement, but as participants who bring their experience to bear both on individual cases, and on the wider work of the Committee. We expect the Commissioner and the new Committee to keep the Code and Guide under review and to bring forward any necessary revisions in the next Parliament.

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5 Next steps

41. The House also has registers covering Members’ secretaries and research assistants, journalists who hold Parliamentary passes, and staff of All Party Groups. The Parliamentary Commissioner has responsibility for making arrangements for the compilation and maintenance of these rules of these registers, and the Committee has the responsibility for reviewing the form and content of the registers.27 When the House has made its decision on the Guide, we expect that the Commissioner will work with either this Committee or the Committee on Standards to ensure that other registration arrangements are appropriately aligned with those for Members, as has been the practice in the past.

42. There will be some administrative changes to be made as a consequence of the new Guide. We recommend that these new arrangements and the new Guide do not come into effect until the beginning of the next financial year. This will allow time for Members and their staff to be briefed and to prepare for the changes.

43. The revised Guide to the Rules appended to this Report sets out our view for the House to consider and endorse or amend.

44. We recommend that the House: a) agrees a new Resolution to the effect that:

That previous Resolutions of this House in relation to the conduct of Members shall be read and given effect in such a way which is compatible with the Code of Conduct and the Guide to the Rules relating to the Conduct of Members. b) approves the Guide to the Rules appended to this Report, to take effect from 6 April 2013; c) approves the following amendments to the Code of Conduct:

i. to leave out paragraph 17

ii. to insert a new paragraph after paragraph 19 as follows:

The Commissioner may not investigate a matter relating only to the conduct of a Member’s private and personal life, unless the Committee authorises such an investigation. Such investigations shall be authorised only in exceptional circumstances.

27 Standing Orders Nos. 150 (2) (a) and 149 (1) (a)

18 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

Annex 1: The Commissioner’s Recommendations and the Committee response

Introductory The Committee endorses the following recommendations:

1. The House should adopt the clearer format proposed in the consultation paper, which is reflected in the new Guide to the Rules which I have placed at Annex 2. (Paragraph 7)28

2. The Introduction to the Guide should make clear that any changes agreed by the House following this review do not apply retrospectively and affect only those actions of Members after the commencement date or dates agreed by the House. (Paragraph 10)

3. The Committee should consider inviting the House to consider a motion on the lines that “Previous resolutions of this House in relation to the conduct of Members shall be read and given effect in such a way which is compatible with the Code of Conduct and the Guide to the Rules relating to the conduct of Members”. (Paragraph 12)

Employment The Committee endorses the following recommendations:

4. There should be a single registration category for all paid employment with each Register entry laid out in a manner which distinguishes clearly between directorships and other paid employment and which gives due prominence to the names of any clients for whom Members work. (Paragraph 20)

5. A Member with an employment contract for twelve months or more, who receives regular payments, should be permitted to register this by giving the agreed start and (if any) end dates of that contract, the sums and dates agreed for these payments, and the hours to be worked. Such a Member would then not be required to record each such payment as it is received. (Paragraph 22)

6. Members should continue to register the hours worked for each payment in Category 1: Employment and earnings. (Paragraph 24)

7. A Member registering a payment in Category 1: Employment and earnings should in future be required to give the date when it was received. (Paragraph 26)

8. The requirement to lodge an agreement for the provision of services should be removed. Instead, the form for the registration of employment should ask Members to confirm that they have not engaged in paid advocacy. (Paragraph 28)

28 Paragraph numbers refer to the Commissioner’s memorandum appended to the Report

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 19

9. Members should be required to register payments for opinion surveys only if they exceed the relevant thresholds for the registration of employment and earnings. (Paragraph 30)

10. The Guide should make clear that if payments in respect of work done by a Member are made to some other person or organisation, and if those payments are not passed on to the Member in a form which can be easily linked to the work done, or at all, that Member should nevertheless register any such payment to the other person or organisation in respect of the Member’s work (but not in respect of work done by anyone else who may be supporting him or her). The Guide should also make clear that if a Member passes an employment payment to another person or organisation he or she may note that in the Register. (Paragraph 34)

11. The Guide should make clear that Members should register redundancy and ex gratia payments under Category 1: Employment and earnings. (Paragraph 36)

12. A Member who has completed a piece of work and agreed a payment for it should be permitted to register that payment at any time between completing the work, and 28 days after receipt of that payment. A Member registering in advance of payment should record, instead of the payment date, the date when he or she completed the work. (Paragraph 38)

13. The Register should not be extended to include Members’ pension arrangements. (Paragraph 42)

14. There should be no change to the arrangements for registration of earnings by Members who are self-employed sole traders, who should continue to register each payment to them as it is received. (Paragraph 45)

15. The rules should make clear that wherever possible salaries and earnings figures are to be registered before any deductions, and that fees received are to be registered before the addition of VAT. (Paragraph 49)

Former Ministers The Committee endorses the following recommendation:

16. The registration rules should require Members who had ceased to hold Ministerial office in the preceding two years to indicate alongside any employment registration whether or not they had sought the advice of ACoBA in respect of that employment. (Paragraph 54)

Development and secondment programmes The Committee endorses the following recommendations:

17. The Guide should make clear that Members are not required to register the fact that they participate in developmental and secondment programmes which are approved by the parliamentary authorities. (Paragraph 58)

18. Members should continue to register gifts, benefits, hospitality and visits which they receive through developmental and secondment programmes which are approved by

20 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

the parliamentary authorities, subject to the normal registration rules. (Paragraph 61)

Gifts and Hospitality The Committee endorses the following recommendations:

19. Members should continue to include in the Register details of any donations received by their constituency party organisation which are linked directly to them; and of any donations received via their Party’s central organisation which are accompanied with a wish that they be allocated to the support of that Member or his or her office. (Paragraph 63)

20. A Member should be required to register any gift, benefit or hospitality from UK sources which is given to any third party, either alone or alongside benefits for him or her, only if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it was given because of his or her membership of the House or political activities. (Paragraph 67)

21. The Guide should require Members to register under Category 4: Visits outside the UK visits which relate to or arise out of their political activities, as well as those which relate to or arise out of their membership of the House. (Paragraph 72)

22. The Guide should require a Member to register under Category 4: Visits outside the UK any visit provided for third parties, whether or not alongside benefits for the Member. Such registration should be required only if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it was given because of his or her membership of the House or political activities. (Paragraph 73)

23. Members should be required to register gifts and benefits from sources outside the UK which relate to their political activities. (Paragraph 78)

24. A Member should be required to register any gift or benefit from sources outside the UK which is given to any third party, either alone or alongside benefits for him or her. Such registration should be required only if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it was given because of his or her membership of the House or political activities. (Paragraph 80)

Other registration requirements The Committee endorses the following recommendations:

25. Members should no longer be required to include in this section a note drawing attention to any employment payments from sources outside the UK. (Paragraph 82)

26. The Guide should explicitly require Members to register land and property both within and outside the UK. (Paragraph 86)

27. No change should be made to the Guide in order to require Members to register in a separate subcategory, or otherwise to distinguish from their other registrable holdings, the land or property from which they derive rental income. But where rental income is received from a property, that should be stated in the Register entry,

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 21

including in cases where that income is paid to another person or organisation. (Paragraph 89)

28. A Member who makes a registration under Category 6: Land and property should be required to register the date on which the land or property was acquired or, in the case of land or property already held, the date on which the Member believes it achieved registrable value. As with other provisions, this should not have retrospective effect. (Paragraph 92)

29. A Member who makes a registration under Category 7: Shareholdings should be required to register the date on which the shares were acquired or, for shares already held, the date on which they achieved registrable value, and the date on which they were sold or ceased to be of registrable value. As with other provisions, this should not have retrospective effect. (Paragraph 96)

30. The Guide should continue to provide the opportunity for Members to register non- financial interests including unremunerated directorships or employment if they consider that these satisfy the test of relevance—without requiring Members to register all non-financial interests. (Paragraph 99)

31. Members should not be required to register classes of assets other than land, property and shareholdings. (Paragraph 103)

32. The Guide should be amended to encourage Members to register under Category 8: Miscellaneous, other financial assets which meet the test of relevance. (Paragraph 104)

33. The Guide should not require or encourage Members to register indirect interests. (Paragraph 106)

34. Members should not be specifically encouraged under Category 8 to register donations to charity which they have solicited. (Paragraph 108)

35. Members who register an interest under this Category [Category 8: Miscellaneous] in future should be required to provide the date when that interest arose or became registrable. (Paragraph 110)

Family Members The Committee endorses the following recommendations, with the exception of the requirement to register client details:

36. The Guide should in future require Members to register details of any family members whom they employ including a spouse, civil partner or cohabiting partner of the Member and the parent, child, grandparent, grandchild, sibling, uncle, aunt, nephew or niece of the Member or of a spouse, civil partner or cohabiting partner of the Member. (Paragraph 114)

37. A Member should be required to register details of any of their family members involved in public sector lobbying, and who their clients are, if he or she is aware, or could reasonably be expected to be aware, of this involvement. (Paragraph 118)

22 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

Financial Thresholds The Committee endorses the following recommendations:

38. The financial threshold for the registration of individual payments within Category 1: Employment and earnings should be more than £100, and for the total of multiple payments of whatever size from the same source in the course of a calendar year, more than £300. (Paragraph 129)

39. There should be no change to the financial threshold which applies within Category 2: Donations and other support for activities as a Member of Parliament, and which is a statutory requirement. It should remain at more than £1,500, either as a single donation or as multiple donations of more than £500 from the same source. (Paragraph 130)

40. The financial threshold for the registration of benefits within Category 3: Gifts, benefits and hospitality from UK sources; Category 4: Visits outside the UK and Category 5: Gifts and benefits from sources outside the UK, should be more than £300 received in one or more donations of whatever size from a single source in the calendar year. (Paragraph 131)

41. The financial thresholds which apply under Category 7: Land and property should be more than £100,000 for the value of the property and more than £10,000 for the value of the rental in a calendar year. (Paragraph 132)

42. The financial thresholds which apply under Category 8: Shareholdings should be more than 15% of the issued share capital (or equivalent) or, for lesser holdings, a value of more than £70,000 on the preceding 5 April. (Paragraph 133)

43. Under Category 9: Family members employed, Members should register the names of any family members who earn more than £700 in a calendar year, paid from parliamentary expenses. (Paragraph 134)

Declaration of Interests The Committee endorses the following recommendations:

44. Members should not be required to declare non-financial interests, but should be encouraged to declare such interests where relevant. (Paragraph 138)

45. The Guide should be revised in order to require a Member to declare financial interests held by a family member as defined for Category 9 of the Register, if that interest meets the test of relevance, and if the Member is aware, or could reasonably be expected to be aware, of that interest. The name of the family member, and their relationship to the Member, need not be disclosed. (Paragraph 141)

The Committee endorses the following recommendation with minor amendments as shown:

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 23

dining rooms. For this purpose a function is where significant hospitality including food and drink is provided: a declaration should not be necessary when booking a room simply for a meeting or presentation where simple refreshments such as tea and biscuits may be available. (Paragraph 143)

Lobbying The Committee accepts the thrust of these recommendations. See chapter 2 of the Report for more detail

47. The Guide should make clear that the restrictions of the lobbying rules apply to foreign hospitality and funded visits outside the UK. (Paragraph 150)

48. The lobbying rule should be redrawn to restrict Members from initiating parliamentary proceedings or approaches to Ministers, other Members or public officials which would confer any financial or material benefit on an outside organisation or individual from whom they have received, are receiving or expect to receive reward or consideration. Members would continue to be able to take part in parliamentary proceedings or approaches to Ministers, other Members or public officials initiated by others—other than the organisation or individual from whom they have received, are receiving, or expect to receive reward or consideration— provided they are not seeking to confer any financial or material benefit. (Paragraph 162)

49. Former Members should be subject to the lobbying rule for two years after their departure from the House in respect of any approach they make to Ministers, Members or public officials. (Paragraph 173)

50. Former Members should be required to register any occupation or employment which involves contact with Ministers, Members or public officials in the two years following their departure from the House. (Paragraph 174)

51. Former Members should not be permitted to use their privileged pass for the purposes of any lobbying on the parliamentary estate. (Paragraph 175)

52. Members should be subject to the restrictions under the lobbying rule in respect of any relevant benefit received, in any form, in the previous six months. (Paragraph 179)

53. Members should be able to free themselves from the lobbying restrictions by returning or repaying any relevant benefit received in the previous six months. (Paragraph 180)

Procedure The Committee endorses the following recommendations

54. The threshold for the Commissioner seeking the agreement of the Committee in respect of complaints into past conduct should be maintained at seven years. (Paragraph 185)

24 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

55. The Committee should consider inviting the House to agree that the Commissioner should only be able to inquire into allegations that a Member’s conduct in his or her private and personal life had seriously damaged the reputation and integrity of the House or its Members generally in exceptional circumstances and when the Committee has explicitly agreed in advance to such an inquiry. (Paragraph 187)

56. The complaints procedure should be amended to remove the requirement for the Commissioner to seek the agreement of the Committee on Standards and Privileges before initiating an inquiry following a self-referral. (Paragraph 190)

57. The Guide to the Rules should no longer make particular provision in the complaints procedure for frivolous and vexatious complaints but should retain the reference to the Commissioner not being required to inquire into a matter where he or she considers such an inquiry disproportionate. (Paragraph 193)

58. The Guide to the Rules should reflect the special arrangements which exist for apologies by way of a point of order in the event of non-declaration. (Paragraph 196)

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 25

Annex 2: Proposed New Guide to the Rules as recommended by the Committee Introduction

1. The Code of Conduct provides a set of rules to which Members must adhere. 29 Some of these rules are supported by more detailed guidance. Those set out in this Guide relate to the registration and declaration of interests, and to paid lobbying. The Guide also sets out the procedure for inquiries by the Parliamentary Commissioner for Standards.

2. The Guide to the Rules and amendments to it are approved by means of Resolutions of the House of Commons. This Guide therefore carries the authority of the House. The House has agreed that its previous resolutions in relation to the conduct of Members shall be read and given effect in a way which is compatible with the Code of Conduct and this Guide to the Rules relating to the conduct of Members.30

3. The Guide is structured as follows:

• Chapter 1 of the Guide explains the requirements in relation to the registration of Members’ financial interests;

• Chapter 2 explains the requirements in relation to the declaration of interests in proceedings of the House and on other occasions;

• Chapter 3 sets out the restrictions on Members engaging in lobbying for reward or consideration;

• Chapter 4 provides an outline of the Commissioner’s remit, and sets out the procedures in relation to the Commissioner’s inquiries.

Registration and declaration of financial interests (Chapters 1 and 2)

4. Paragraph 13 of the Code of Conduct provides:

13. Members shall fulfil conscientiously the requirements of the House in respect of the registration of interests in the Register of Members’ Financial Interests. They shall always be open and frank in drawing attention to any relevant interest in any proceeding of the House or its Committees, and in any communications with Ministers, Members, public officials or public office holders.31

29 Members are personally responsible for their adherence to the Code including when breaches may have been caused by the actions of a member of staff. 30 This is subject to the House’s agreement when considering any motion in these terms. 31 The Code of Conduct together with the Guide to the rules relating to the conduct of Members 2012, HC 1885

26 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

Member of Parliament.32 Financial interests include material benefits and payments in kind.33 Each Member is responsible for making a full disclosure of such interests, which is achieved by registering and declaring them in accordance with the requirements of the House. The aim of this is openness. Neither registration nor declaration imply any wrongdoing.

6. Registration requires Members to place information about relevant financial interests in the Register of Members’ Financial Interests, thus making it available to the public on a continuing basis. In addition, some of the information required for the Register reflects the requirements of the Political Parties, Elections and Referendums Act 2000 (PPERA), as amended. The Electoral Commission extracts the information which it needs from the published Register, or, where the publication timescale of the Register does not permit this, by accessing from the office of the Parliamentary Commissioner for Standards the relevant information provided by Members.

7. The Parliamentary Commissioner for Standards is responsible for preparing the Register, which is published electronically under the authority of the Committee on Standards and Privileges. A printed version is also produced under the Committee’s authority soon after the beginning of each new Parliament and approximately annually thereafter. Entries remain in the Register for twelve months, or until they have appeared in one printed Register, if that is later.

8. The Guide sets out the categories in which Members are required to register their financial interests and the information to be provided. These categories are summarised below, together with the financial thresholds which apply. When considering registration, Members are also required to keep in mind the overall purpose of the Register.34 If a Member has any financial interests which meet that purpose but which do not fall clearly into one of the defined categories, he or she is nonetheless required to register them, normally under the Miscellaneous category.

Category Financial threshold for registration

1. Employment and Over £100 for individual payments earnings Over £300 for the total of multiple payments of whatever size from the same source in a calendar year

2. Donations and other Over £1,500, either as individual payment, or for the total of multiple support donations of more than £500 from the same source in the course of a calendar year

3. Gifts, benefits and Over £300 for the total of benefits of whatever size from the same hospitality from UK source in a calendar year sources

32 This reflects the recommendations in the First Report of the Select Committee on Members’ Interests, Session 1991– 92, Registration and Declaration of Financial Interests, HC 236, paragraph 27 33 The term “financial interests” should be read in this way throughout this Guide. 34 The purpose of the Register is set out at paragraph 5 above.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 27

4. Visits outside the UK Over £300 if not wholly borne by Member or public funds

Threshold also applies to the total of benefits of whatever size from the same source in a calendar year

5. Gifts and benefits Over £300 for the total of benefits of whatever size from the same from sources outside source in a calendar year the UK

6. Land and property Total value of property held: over £100,000 in the UK and elsewhere Income derived from property: over £10,000 in a calendar year

7. Shareholdings Greater than 15% of issued share capital (on preceding 5 April), or if 15% or less of issued share capital (on preceding 5 April), greater in value than £70,000

8. Miscellaneous No threshold.

9. Family members Remuneration of over £700 in a calendar year employed and remunerated through parliamentary expenses

10. Family members No threshold. engaged in lobbying

9. The requirement for the declaration of interests, set out in Chapter 2, applies in almost every aspect of a Member’s activities, in the Chamber, in Committee and in their contacts with others, including Ministers, other Members, public officials and public office holders. It covers, as well as registrable interests, other financial interests which meet the test of relevance but which do not require registration, including past interests and expected future interests, and the indirect financial interests of a spouse, partner or family member. Members may also declare non-financial interests if they consider these meet the same test of relevance. The test is whether those interests might reasonably be thought by others to influence his or her actions or words as a Member.

10. Members are not required to register or declare benefits available to all Members, such as their parliamentary salaries, or expenses met from parliamentary sources, or from a scheme for parliamentary expenses. Nor are they required to register or declare benefits provided by their own political party, except as required under registration Category 2: Donations and other support for activities as a Member of Parliament.

Lobbying for reward or consideration (Chapter 3)

11. Paragraph 11 of the Code of Conduct provides:

11. No Member shall act as a paid advocate in any proceeding of the House.35

12. A Member may, however, still hold a remunerated outside interest as a director, consultant or adviser or in any other capacity. Members who receive such financial benefits

35 The Code of Conduct together with the Guide to the rules relating to the conduct of Members 2012, HC 1885

28 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

may take part in parliamentary proceedings or in meetings and discussions with Ministers, other Members and public officials which could affect that interest, provided they do so in accordance with the provisions set out in Chapter 3 of this Guide. But such Members must not initiate proceedings or meetings which would provide a financial or material benefit to any organisation or individual from whom they have received, are receiving or expect to receive reward or consideration.

Procedure for inquiries (Chapter 4)

13. Paragraphs 18 and 19 of the Code of Conduct provide:

18. The application of this Code shall be a matter for the House of Commons, and particularly for the Committee on Standards and Privileges and the Parliamentary Commissioner for Standards acting in accordance with Standing Orders Nos 149 and 150 respectively.

19. The Commissioner may investigate a specific matter relating to a Member’s adherence to the rules of conduct under the Code. Members shall cooperate, at all stages, with any such investigation by or under the authority of the House. No Member shall lobby a member of the Committee in a manner calculated or intended to influence its consideration of an alleged breach of this Code.36

14. Allegations about failure to register or declare a relevant interest in accordance with the rules of the House, failure to abide by the rules on lobbying for reward or consideration, or any other alleged failure to meet the rules set out in the Code of Conduct are considered by the Parliamentary Commissioner for Standards who reports to the Committee on Standards and Privileges.

15. Complaints about the misuse of the scheme for parliamentary expenses since May 2010 are a matter for the Independent Parliamentary Standards Authority. However, if the Independent Parliamentary Standards Authority or its Compliance Officer consider that a Member’s conduct justifies it, they shall refer that Member, with the relevant evidence, to the Commissioner for him or her to decide whether to inquire into a potential breach of the Code of Conduct and its associated rules.

Ministers of the Crown

16. Ministers of the Crown who are Members of the House of Commons are subject to the rules on registration and declaration of interests in the same way as all other Members (although Ministerial office is not registrable and salaried Ministers may still speak in support of Government policies without breaching the restrictions on lobbying for reward or consideration). Members are not required to register either Ministerial office or benefits received in their capacity as a Minister. But Ministers are subject to the further guidelines and requirements laid down by successive Prime Ministers in the Ministerial Code, available from the Cabinet Office. These are not enforced by the House of Commons and so are beyond the scope of this Guide.

Sources of advice

36 Ibid.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 29

17. No written guidance can provide for all circumstances, and the references in this Guide should not be regarded as exhaustive. The Parliamentary Commissioner for Standards (“the Commissioner”) and the Registrar of Members’ Financial Interests (“the Registrar”) are available to give advice, as is the Electoral Commission as regards the permissibility of donations, and the requirements of the Political Parties, Elections and Referendums Act 2000 (PPERA).37

Commencement

18. The provisions of this Guide apply to all actions, by or required of the Member from the commencement date or dates of the Guide agreed by the House. Actions undertaken by or requirements of Members before that commencement date or dates are governed by the previous version of the Guide in force at the material time.

37 Please contact the Electoral Commission on 020 7 271 0616.

30 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

1 Registration of Members’ Financial Interests

Requirements of the House

1. Paragraph 13 of the Code of Conduct for Members of Parliament provides:

2. The House requires new Members, within one month of their election, to register all their current financial interests, and any registrable benefits (other than earnings) received in the 12 months before their election. After that, Members are required to register within 28 days any change in those registrable interests. Such a change includes both the acquisition of a new interest and the ceasing of any registered interest, for example because an employment has ceased or because a holding has reduced in value or been sold.

3. A Member who has a registrable interest must notify the Commissioner of that interest before he or she undertakes any action, speech or proceeding of the House (except voting) to which the interest would be relevant.

4. The paragraphs below set out the requirements of the House under ten categories. When considering registration, Members are also required to keep in mind the overall purpose of the Register, which is to provide information about any financial interest or other material benefit which a Member receives which might reasonably be thought by others to influence his or her actions, speeches or votes in Parliament, or actions taken in his or her capacity as a Member of Parliament. If a Member has any financial interests which meet that purpose but which do not fall clearly into one of the defined categories, he or she is nonetheless required to register them, normally under the Miscellaneous category.

5. The Miscellaneous category may also be used to register non-financial interests when the Member considers they meet the purpose of the Register. Category 1: Employment and earnings

Threshold for registration

6. Members must register, subject to the paragraphs below, individual payments of more than £100 which they receive for any employment outside the House. They must also register individual payments of £100 or less once they have received a total of over £300 in payments of whatever size from the same source in a calendar year.

Requirements for registration

38 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 31

7. Under this category Members must register:

Any of the following received as a director or employee or earned in any other capacity: a) Salaries, fees and payments in kind; gifts received in recognition of services performed; b) Taxable expenses, allowances and benefits such as company cars; c) Redundancy and ex gratia payments; d) Income as a member of Lloyd’s; and39 e) Payments for opinion surveys (unless they fall below the registration threshold).

8. Members should not register under this category: a) Earnings received as a Member, Minister or select committee Chair in the UK Parliament; b) Unremunerated directorships (unless associated with, or a subsidiary of, a company or group of which the Member is a remunerated director);40 c) Directorships of companies not currently trading;41 d) Earnings of the Member’s spouse, partner or family members; e) Income received by way of dividends; and f) Pension payments.

9. Members are required to provide the following information: a) Whether the Member is a director of the organisation; b) The name and address of the payer42 and a brief description of their business (if not self evident); c) The name and address of any client to whom the Member has personally provided services43, if different from the payer, and a brief description of their business (if not self evident);

39 Members who have resigned from Lloyd’s should continue to register their interest as long as syndicates in which they have participated continue to have years of account which are open or in run-off. In such circumstances Members should register the date of resignation. Members of Lloyd’s are also required to disclose the categories of insurance business which they are underwriting. Any member of Lloyd’s receiving financial assistance (including relief from indebtedness or other loan concessions but excluding any general settlement available to all Lloyd’s members) from a company, organisation or person within or outside the United Kingdom should register that interest under gifts and other benefits. 40 Members may register these if they consider them relevant, under Category 8: Miscellaneous. 41 Members may register these if they consider them relevant, under Category 8: Miscellaneous. 42 Unless this would be contrary to any legal or established professional duty of privacy or confidentiality.

32 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

d) The size of the payment received, and the nature and value of any taxable benefits and any payments in kind. (Earnings should be given gross, i.e. before tax or other deductions, wherever possible. Fees should be given before the addition of VAT); e) The nature of the work involved, and the number of hours’ work to which each payment relates; f) The date when the payment was received (or, if not yet received, the date when the work was completed); and g) Confirmation that the Member has not engaged in paid advocacy.44

Members who ceased to hold Ministerial office within the previous two years

10. Such Members should state, additionally, whether they sought the advice of the Advisory Committee on Business Appointments in respect of this employment.

Payments made to other people or organisations

11. A Member who receives payment for his or her work and then donates it to another person, or to a charitable or community organisation, must make their registration in the usual way but may note the donation in their Register entry.

12. A Member who does not receive payment for his or her work in a recognisable form or at all, because it is made to another person or organisation, should nevertheless register the payment within 28 days of its receipt by that other person or organisation. This applies only to payments which, if made direct to the Member, would have required registration under this category.

Contractual agreements for twelve months or more

13. A Member who has a contractual agreement for twelve months or more and receives regular payments may choose, instead of registering each payment as it is received, to register such payments in advance, provided that he or she afterwards registers within 28 days any variation to the information already provided. The initial information to be provided is as set out in paragraph 9 above, except that instead of the information required under subparagraphs (d) and (f), the Member should provide:

(h) The agreed start, and (if any) end dates for the contract;

(i) The agreed payments, including any taxable benefits and payments in kind;

(j) The dates agreed for those payments.

Registering ad hoc payments in advance

43 Unless this would be contrary to any legal or established professional duty of privacy or confidentiality. 44 As described in paragraph 1 of chapter 3 of this Guide.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 33

14. A Member who has undertaken work and agreed the terms of payment need not wait to receive that payment before making a Register entry, but may register the work at any time between completing the work and 28 days after receiving any payment. In such cases, the Member should provide the date when the work was completed.

Category 2: Donations and other support for activities as a Member of Parliament

Threshold for registration

15. Members must register, subject to the paragraphs below, support for their activities as a Member, or for candidacy at an election for parliamentary or non-parliamentary office, which has a value of more than £1,500, either as a single donation or in multiple donations of more than £500 from the same source in a calendar year.45

Requirements for registration: Category 2(a) and 2(b)

16. This category has two parts:

Category 2(a): support received by a local party organisation or indirectly via a central party organisation.46 A Member must register under this sub-category support received by his or her constituency party organisation or which he or she receives via a central party organisation if there was a clear link between the donation and him or her; for example, if it was given to a such an organisation with a wish that it be allocated to him or her, to his or her fighting fund or to a front bench office which he or she held; if it was assigned to him or her in circumstances where he or she was aware, or could reasonably be expected to be aware, of the identity of the donor; or if he or she had invited or encouraged the donation;

Category 2(b): any other support received by a Member. This includes support received indirectly, for example via a political club.47 Before accepting any donations registrable under this category, Members must check that they are from a permissible donor. Under the Political Parties, Elections and Referendums Act, Members must not accept impermissible donations and must notify the Electoral Commission within 30 days of receipt.48

17. Under this category Members must register: a) Financial support and sponsorship;

45 The terms “donations” and “support”, as used in this chapter, include both financial support and support in kind. 46 Defined as a registered political party or an accounting unit of such a party. 47 A political club is not a registered political party or an accounting unit of such a party. It is likely to be a Members’ association under PPERA, defined as an organisation separate from, but which may be affiliated to, registered parties, but whose members come mainly from one party. 48 For an explanation of a permissible donor see the end of this section. Please contact the Electoral Commission for further advice on checking permissibility and how to report and return an impermissible donation: tel 0207 271 0616. Members must check the permissibility of all donations with a value of £500 or more. Members have 30 days from receipt of the donation to check that the donor is permissible and decide whether or not to accept it. If the donor is not a permissible source then the Member must return the donation and notify the Electoral Commission within the 30 days. Responsibility for checking the permissibility of donations registered under category 2(a) rests with the relevant party organisation.

34 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

b) Loans and credit arrangements; c) Support in kind, including any of the following, if provided either free or at concessionary rates: advice or information services; receptions and events; training or development for the Member or his or her staff; the services of staff or interns; the provision of office space or equipment; hospitality or travel benefits such as season tickets or parking; 49 d) Bequests; e) Gifts of property.

18. Members should not register under this category: a) Direct support from the Member’s own party organisation; b) Trade union support for a constituency party organisation, where this is linked to the constituency and would be provided irrespective of the identity of the Member; c) Facilities, equipment or services provided by Parliament, or for which the Member claimed under a scheme for parliamentary expenses; and loans or credit arrangements taken out in order to fund activities for which the Member may claim expenses under a scheme for parliamentary expenses; d) Hospitality from UK public bodies, including for example devolved administrations, government departments, the armed services or the police, or local or health authorities. If there is any doubt as to the permissibility of such donors, Members should consult the Electoral Commission;50 e) The hours contributed by volunteers (unless funded by another body); f) Any money or support provided out of public funds for the Member’s security; g) Participation in developmental and secondment programmes, such as those operated by the Industry and Parliament Trust, the Armed Services Parliamentary Scheme and the Police Service Parliamentary Scheme, which are approved by the parliamentary authorities;51 h) Donations or gifts which are intended to provide personal benefit, which should be registered if necessary under Category 3: gift, benefits and hospitality from UK sources or Category 5: gifts and benefits from sources outside the UK; i) Foreign visits, which should be registered if necessary under Category 4: Visits outside the UK;

49 A concessionary rate should be valued by reference to the nearest equivalent commercial rate. 50 Tel 020 7 271 0616. See also the list of permissible donors. 51 Incidental benefits such as gifts or visits do however require registration under categories 3, 4 or 5 if they are received in the course of such a fellowship or secondment.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 35

j) Donations or other support received in a Member’s capacity as a Minister, which should be recorded, if necessary, within the relevant Government Department in accordance with the Ministerial Code.

19. Members are required to provide the following information: a) The name and address of the donor and (if the donation was received indirectly) of the organisation acting as intermediary;52 b) The amount of the donation, or its nature and value if it is a donation in kind;53 c) Category 2(b) only: the dates of receipt54 and acceptance; d) The status of the donor (whether an individual, building society, friendly society, LLP, registered party (other than the Member’s own party), trade union, unincorporated association or company, in which case the company registration number is required); e) If the donor is a trust, the name and address of the person who created the trust; if created after 27 July 1999, the names and addresses of all others who have transferred property to the trust, or, if created before 27 July 1999, the date it was created; f) If the donation is by means of a bequest, the name and last address of the person who made the bequest, or, if that address is not listed in an electoral register, the last address where that person was registered in the previous five years.

Permissible donors

20. Members must not accept any donations, loans, security or other support valued at over £500 from impermissible donors. They must also report them to the Electoral Commission within 30 days of receipt. The following are permissible donors:

• an individual registered in a UK electoral register (or a bequest from such an individual);

• a UK registered company which is incorporated within the EU and carries on business in the UK;

• a Great Britain registered political party;55

• a UK registered trade union;

52 Private addresses will not be published. 53 When registering any income from fundraising, for example by local party organisations or political clubs, Members should give the net figure (i.e. the surplus generated by the fundraising after costs are deducted) along with details of any individual donation which exceeded the financial threshold, and the relevant donor. If the funds were raised for more than one Member, each should register as if he or she was the sole beneficiary. 54 Subscriptions, memberships and staff secondments are generally regarded as received on their start dates. 55 Northern Ireland parties are not included as permissible donors because of the different rules on donations to which they are subject.

36 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

• a UK registered building society;

• a UK registered limited liability partnership that carries on business in the UK;

• a UK registered friendly society;

• a UK based unincorporated association that carries on business or other activities in the UK.

21. In addition, certain trusts may be permissible as donors, but not as lenders or providers of security or credit. Local councils are not permissible donors or lenders. Category 3: Gifts, benefits and hospitality from UK sources

Threshold for registration

22. Members must register, subject to the paragraphs below, any gifts, benefits or hospitality with a value of over £300 which they receive from a UK source. They must also register multiple benefits from the same source if these have a value of more than £300 in a calendar year.56

Requirements for registration

23. Under this category Members must register:

Any benefits which relate in any way to their membership of the House or political activities, if provided by a UK source either free or at concessionary rates, including:57 a) event or travel tickets;58 b) hospitality in the UK, including receptions, meals and accommodation; c) gifts such as clothing or jewellery; d) club subscriptions and memberships; e) loans or credit arrangements; f) discount cards.

See paragraph 27 below for guidance on the registration of benefits given to others.

24. Before accepting any benefit over £500 which would require registration in this category, (including a credit facility or a loan which exceeds £500 in value) Members are

56 Subsequent references to benefits in this category include gifts and hospitality. 57 A concessionary rate should be valued by reference to the nearest equivalent commercial rate. 58 International travel and hospitality received abroad should normally be registered under Category 4: Visits outside the UK.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 37

required to satisfy themselves that it is from a permissible donor, and to notify the Electoral Commission within 30 days of any impermissible donations. 59

25. Members should not register under this category: a) Benefits which could not reasonably be thought by others to be related to membership of the House or to the Member’s parliamentary or political activities; for example, purely personal gifts or benefits from partners or family members. However, both the possible motive of the giver and the use to which the gift is to be put should be considered. If there is any doubt, the benefit should be registered; b) Hospitality from UK public bodies, including for example devolved administrations, government departments, the armed services or the police, or local or health authorities. If there is any doubt as to the permissibility of such donors, the Member should consult the Electoral Commission;60 c) Benefits received in recognition of a service performed by a Member, e.g. after giving a speech. If these benefits would not have been received had this service not been performed, they should be registered under Category 1: Employment and earnings; d) Donations or other assistance given to a Member to support his or her parliamentary or political activities, or for candidacy at an election for parliamentary or non- parliamentary office, which should be registered under Category 2: Donations and other support for activities as a Member of Parliament; e) Foreign visits, including international travel and hospitality received outside the UK (even if funded by UK sources), which should be registered under Category 4: Visits outside the UK; f) Other benefits from sources outside the UK, which should be registered under Category 5: Gifts and benefits from sources outside the UK.

26. Members are required to provide the following information: a) The name and address of the donor;61 b) The amount of the donation, or its nature and value if it is a donation in kind; c) The dates of receipt62 and acceptance; d) The status of the donor (whether an individual, building society, friendly society, LLP, registered party (other than the Member’s own party), trade union, unincorporated association or company, in which case the company registration number is required);

59 For an explanation of a permissible donor see the end of the section on Category 2. Advice is available from the Electoral Commission, tel 020 7 271 0616. 60 Tel 020 7 271 0616. See also the list of permissible donors under Category 2 of this Guide. 61 Private addresses will not be published. 62 Subscriptions, memberships and staff secondments are generally regarded as received on their start dates.

38 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

e) If the donor is a trust, the name and address of the person who created the trust; if created after 27 July 1999, the names and addresses of all others who have transferred property to the trust, or, if created before 27 July 1999, the date it was created; f) If the donation is by means of a bequest, the name and last address of the person who made the bequest, or, if that address is not listed in an electoral register, the last address where that person was registered in the previous five years.

Benefits given to other people or organisations

27. A Member must register under this category any benefit given to any third party, whether or not this accompanied a benefit for him or her, if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it was given because of his or her membership of the House or parliamentary or political activities.

Benefits received during a parliamentary attachment

28. Members must register under this category any incidental benefit, such as gifts, hospitality, or travel, received from a UK source in the course of a fellowship or secondment such those arranged through the Armed Forces Parliamentary Scheme, the Police Service Parliamentary Scheme or the Industry and Parliament Trust.

Benefits received as a member of an All-Party Group

29. Groups themselves must register any benefit which exceeds the relevant threshold set out in the Guide to the Rules for All-Party Groups (over £1,500 in 2012–13, either as a single donation or as multiple donations of over £500). Each Member benefiting should also include in their Register entry details of any benefit to them from a UK source which exceeds the threshold for the Members’ Register. If the ultimate donor is identifiable, Members should give their details, as well as naming the Group.

Legal funds

30. Members should normally register under this category contributions to legal funds. This would apply if, for example, the legal action arose out of activity as a Member of Parliament but the donation was not specifically in support of the Member’s activities as a Member of Parliament. Category 4: Visits outside the UK

Threshold for registration

31. Members must register, subject to the paragraphs below, any visits to destinations outside the UK where the cost is over £300 if that cost is not wholly borne by the Member or by UK public funds. They must also register multiple visits funded by the same source if taken together these have a value of more than £300 in a calendar year.

32. Costs which are met from parliamentary resources or by UK public bodies do not require registration. But such costs should be taken into account for the purpose of establishing whether the cost of an individual visit exceeds the registrable threshold.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 39

Paragraph 35 below provides further details on the sources of funding which do not require registration.

Requirements for registration

33. Under this category Members must register:

Any travel or hospitality received in the course of a visit outside the UK, if it relates in any way to their membership of the House or to their parliamentary or political activities, including: a) international and other travel; b) hospitality, including hotel or other accommodation, and meals; c) car hire; d) reimbursement of the costs of any of the above.

The person or organisation funding the visit may be within the UK or elsewhere. Visits funded or arranged by the British Council, the Armed Forces Parliamentary Scheme, the Police Service Parliamentary Scheme, or the Industry and Parliament Trust may require registration, subject to the financial threshold.

34. See paragraph 37 below for guidance on the circumstances in which visits by others may require registration; and paragraph 38 for visits undertaken as part of an All-Party Group.

35. Members should not register under this category: a) Visits wholly funded by their own political party; b) Visits undertaken with or on behalf of a select committee of the House; c) Visits wholly unconnected with membership of the House or with the Member’s parliamentary or political activities (e.g. family holidays); d) Visits undertaken on behalf of, or funded by, HM Government, or an international organisation to which the United Kingdom Government belongs, such as the EU or a political group of the European Parliament; e) Visits undertaken on behalf of or under the auspices of the Commonwealth Parliamentary Association, the Inter-Parliamentary Union, the British American Parliamentary Group, the British-Irish Parliamentary Assembly, the Council of Europe, the Western European Union, the Westminster Foundation for Democracy, the NATO parliamentary assembly, or the Organization for Security and Co-operation in Europe Parliamentary Assembly; f) Visits funded to an extent which goes significantly beyond reimbursement of the costs incurred. Such visits should be registered (subject to the relevant threshold) under Category 2: Donations and other support for activities as a Member of Parliament;

40 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

g) Visits undertaken for the purpose of outside employment, including for example giving a speech. If the reason for meeting the Member’s expenses lies in that outside employment and the Member received any remuneration or taxable expenses, the visit should be registered under Category 1: Employment and earnings.

36. Members are required to provide the following information: a) The name and address of the person or organisation funding the visit;63 b) The amount of any payment, and/or the nature and value of any donation in kind such as flights or accommodation; c) The destination of the visit; d) The date(s) of the visit; e) The purpose of the visit.

Visits by others

37. Members should register in this category any visit outside the UK which is undertaken by someone else, whether accompanying the Member or not. Registration is required if the Member is aware, or could reasonably be expected to be aware, that part or all of the visit was paid for by another person or organisation because of that Member’s membership of the House or parliamentary or political activities. 64

Visits undertaken through an All-Party Group

38. Groups themselves must register any visit which exceeds the relevant threshold set out in the Guide to the Rules for All-Party Groups. Each Member benefiting should also make a Register entry if the value of the benefit to them exceeds the threshold for visits in the Members’ Register. If the ultimate funder is identifiable, Members should give their details, as well as naming the Group. Category 5: Gifts and benefits from sources outside the UK

Threshold for registration

39. Members must register, subject to the paragraphs below, any gifts or benefits with a value of over £300 which they receive from a source outside the UK. They must also register multiple benefits from the same source if taken together these have a value of more than £300 in a calendar year.65

Requirements for registration

40. Under this category Members must register:

63 Private addresses will not be published. 64 Subject to the relevant thresholds, Members’ staff who hold parliamentary passes as secretaries or research assistants should also register their visits in the Register of Members’ Secretaries and Research Assistants. 65 Subsequent references to benefits in this category include gifts and hospitality.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 41

Any benefits which relate in any way to their membership of the House or parliamentary or political activities, if provided by a source outside the UK either free or at concessionary rates, including:66 a) event or travel tickets;67 b) hospitality in the UK, including receptions, meals and accommodation;68 c) gifts such as clothing or jewellery; d) club subscriptions and memberships; e) loans or credit arrangements; f) discount cards etc.

41. See paragraph 44 below for guidance on the circumstances in which benefits given to others must be registered.

42. Members should not register under this category: a) Benefits which could not reasonably be thought by others to be related to membership of the House or to the Member’s parliamentary or political activities, for example purely personal gifts or benefits from partners or family members, or loans or mortgage arrangements on commercial terms. However, both the possible motive of the giver and the use to which the gift is to be put should be considered. If there is any doubt, the benefit should be registered; b) Benefits received in recognition of services performed by a Member, e.g. after giving a speech. If these benefits would not have been received had the Member not performed that service, they should be registered under Category 1: Employment and earnings; c) Donations or other assistance given to a Member to support his or her parliamentary or political activities, or for candidacy at an election for parliamentary or non- parliamentary office, which (if permissible) should be registered under Category 2: Donations and other support for activities as a Member of Parliament. NB: There are legal restrictions on acceptance of benefits from sources outside the UK which amount to such support for a Member of Parliament, and before accepting any such support of more than £500 (including a credit facility or a loan which exceeds £500 in value) Members are required to satisfy themselves that it is from a permissible donor, and to notify the Electoral Commission within 30 days of any impermissible donations.69

43. Members are required to provide the following information:

66 A concessionary rate should be valued by reference to the nearest equivalent commercial rate. 67 International travel and hospitality received abroad should normally be registered under Category 4: Visits outside the UK. 68 See footnote above. 69 For an explanation of a permissible donor see the section on Category 2. The Electoral Commission can advise on the permissibility of donors, tel 020 7 271 0616 .

42 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

a) The name and address of the donor;70 b) The amount of the donation, or its nature and value if it is a donation in kind; c) The dates of receipt71 and acceptance; d) The status of the donor (whether an individual, building society, friendly society, LLP, registered party (other than the Member’s own party), trade union unincorporated association or company, in which case the company registration number (if any) is required); e) If the donor is a trust, the name and address of the person who created the trust; if created after 27 July 1999, the names and addresses of all others who have transferred property to the trust, or, if created before 27 July 1999, the date it was created; f) If the donation is by means of a bequest, the name and last address of the person who made the bequest, or, if that address is not listed in an electoral register, the last address where that person was registered in the previous five years.

Benefits given to other people or organisations

44. Member must register under this category any benefit given to any third party, whether or not this accompanied a benefit for him or her, if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it is given because of his or her membership of the House or parliamentary or political activities.

Benefits received during a parliamentary attachment

45. Members must register under this category any incidental benefit, such as gifts, hospitality, or travel, received from a source outside the UK in the course of a fellowship or secondment such those arranged through the Armed Forces Parliamentary Scheme, the Police Service Parliamentary Scheme or the Industry and Parliament Trust.

Benefits received as a member of an All-Party Group

46. Groups themselves must register any benefit which exceeds the relevant threshold set out in the Guide to the Rules for All-Party Groups (over £1,500 in 2012–13, either as a single donation or as multiple donations of over £500). Each Member benefiting should register any benefit to them from a source outside the UK which exceeds the threshold for the Members’ Register. If the ultimate donor is identifiable, Members should give their details, as well as naming the Group. Category 6: Land and property

Threshold for registration

47. Members must register, subject to the paragraphs below, any land or property in the UK or elsewhere which:

70 Private addresses will not be published. 71 Subscriptions, memberships and staff secondments are generally regarded as received on their start dates.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 43

i. has a value of more than £100,000; or forms part of a total property portfolio whose value exceeds £100,000; and/or

ii. alone or together with other properties owned by the Member, provides rental income of more than £10,000 in a calendar year.

Requirements for registration

48. Under this category Members must register: a) Land or property which they own or hold, either by themselves or with or on behalf of their spouse, partner or dependent children.72

49. Members should not register under this category: a) Any land or property which is used wholly for their own personal residential purposes, or those of their spouse, partner or dependent children.

50. Members are required to provide the following information: a) The type of property; e.g. whether business or residential, and if land, the type of use to which it is put; and b) Its location, for example the relevant local authority area; and c) Whether the holding falls to be registered under (i) and/or (ii) of paragraph 47 above. If the rental income is paid to another person or organisation, this should be stated; d) The date on which the land or property was acquired, or when the value of the property (or the rental received) achieved registrable value.73 Category 7: Shareholdings

Threshold for registration

51. Members must register, subject to the paragraphs below, any holdings which:

(i) amount to more than 15% of the issued share capital of that company, or more than 15% of a partnership;

(ii) are valued at more than £70,000.74 Requirements for registration

72 This includes land and property of registrable value which is held in trust for the Member, for example as part of a self-invested personal pension. 73 If the value of the land or property is close to the threshold for registration, the Member should periodically check its value and, if it exceeds the threshold, should register it within 28 days of the date of that valuation. 74 Holdings should be valued as at the previous 5 April. If this is not possible, the Member should make their best estimate of the value on that date and register the holding within 28 days of the 5 April valuation. Holdings which fall below the registrable thresholds but meet the test of relevance should be registered under Category 8: Miscellaneous.

44 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

52. Under this category Members must register: a) Shareholdings or share options which they hold, either by themselves or with or on behalf of their spouse, partner or dependent children. This includes any shares which are managed by a trust (other than a blind trust75 or similar delegated management arrangement) and any holdings in sector-specific vehicles; b) Interests in LLPs or other partnerships.

53. Members should not register under this category: a) Holdings in collective investment vehicles such as unit trusts, investment companies with variable capital (ICVCs) and investment trusts; b) Assets held in blind trusts;76 c) Pensions (except for property held for self-invested personal pensions).

54. Members are required to provide the following information: a) The name of the company or organisation; b) A brief description of the nature of its business, and of any relevant trust or delegated management arrangement; c) Whether the holding falls to be registered under (i) or (ii) of paragraph 51 above; d) The date on which the holding was acquired or achieved registrable value.77 Category 8: Miscellaneous

Requirements for registration

75 For a trust to be regarded as a blind trust the Member must not know details of how their assets are invested or give trustees instructions about specific investments. They may however give general directions about the nature of investments when the trust is established, may receive reports on its overall performance and may realise some or all of its assets. In certain circumstances there may be a requirement to declare a blind trust. See paragraph 4 of chapter 2 for more details. 76 Ibid. 77 Existing holdings should be valued as at the previous 5 April. If this is not possible, the Member should make their best estimate of the value on that date and register the holding within 28 days of their valuation, the date of which should be given.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 45

financial interest. This might include an unpaid employment or directorship, or directorship of a company not currently trading, non-practising membership of a profession, or a fund established to defray legal costs arising out of the Member’s work, but from which no benefit has yet been received.

56. Members are required to provide the following information: a) A description of the interest and, where relevant, the name of the donor; b) Any other relevant information. It is not necessary to provide a value for financial interests in this category; c) The date when the interest arose or became registrable. Category 9: Family members employed

Threshold for registration

57. Under this category Members must register, subject to the paragraphs below, details of any family members whom they employ if those employees receive, from parliamentary expenses, remuneration of more than £700 in a calendar year.

Requirements for registration

58. Under this category Members must register:

a) Any family members employed and remunerated through expenses or allowances available to support his or her work as a Member of Parliament. Family members should be regarded as including a spouse, civil partner or cohabiting partner of the Member and the parent, child, grandparent, grandchild, sibling, uncle, aunt, nephew or niece of the Member or of a spouse, civil partner or cohabiting partner of the Member.

59. Members are required to provide the following information:

a) The name of any family members employed and paid from parliamentary expenses;

b) Their relationship to the Member;

c) Their job title;

d) Whether they work part time. Category 10: Family members engaged in lobbying

Requirements for registration

60. Under this category Members must register:

46 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

a) Details of any of their family members involved in lobbying the public sector; 78 if they are aware, or could reasonably be expected to be aware, of the involvement of the family member in such a lobbying activity.

61. For the purposes of this category, lobbying is defined as undertaking activities in a professional capacity and on behalf of a third party or client in an attempt to influence, or advise those who wish to influence, the UK Government, Parliament, devolved legislatures or administrations, regional or local government or other public bodies on any matter within their competence.

62. Members are required to provide the following information: a) The name of any family members involved in lobbying; b) Their relationship to the Member; c) Their job title; d) The name of their company or employer, if any.

78 Family members are defined as under Category 9. See paragraph 58 above.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 47

Chapter 2: Declaration of Members’ Interests

Requirements of the House

1. Paragraph 13 of the Code of Conduct for Members of Parliament provides:

2. The declaration of interests ensures that Members, the public and others are made aware at the appropriate time, in proceedings of the House and on other occasions, of any interest relevant to those proceedings or to the actions or words of a Member. The requirement to declare an interest complements the registration requirements and applies from the time the House first sits after the Member is elected and to almost every aspect of a Member’s parliamentary duties. It covers a broader range of interests than registration.

3. Declarations must be informative but succinct. A Member who has already registered an interest may refer to his or her Register entry. But such a reference is unlikely to suffice on its own, as the declaration must provide sufficient information to convey the nature of the interest without the listener or the reader having to have recourse to the Register or other publication.

Requirements for declaration

4. Members are required, subject to the paragraphs below, to declare any financial interests which satisfy the test of relevance, including: a) past financial interests (normally limited to those active within the last twelve months); b) indirect financial interests, such as the financial interests of a spouse or partner, or another family member, if the Member is aware or could reasonably be expected to be aware of that interest. It is not necessary to identify the person concerned: a formula such as “A member of my family has a financial interest in [ ]”will usually suffice. The definition of a family member is as under Category 9 of the Register;80 c) expected future interests, if the Member’s plans have moved beyond vague hopes and aspirations and reached the stage where the Member has a reasonable expectation that a financial benefit will accrue;

79 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885 80 See paragraph 58 of Chapter 1 of this Guide.

48 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

d) financial interests of a sort which do not require registration, including for example blind trusts,81 and interests which fall below the financial thresholds; e) financial interests which require registration but have not yet appeared in the published Register; f) any registered non-financial interests.

Members may also declare, if they think it appropriate, non-financial interests which are not registered but which they consider meet the test of relevance.

5. The test of relevance is whether those interests might reasonably be thought by others to influence his or her actions or words as a Member.

6. Members are not required to declare an interest: a) if to do so would unduly impede the business of the House; for example, during oral Questions, when asking supplementary Questions, or when responding to a Ministerial statement; or b) when voting, either in the House or in committee. But a Member who has a relevant registrable interest which has not yet been registered should seek to register it before the vote; or if this is not possible, as soon as possible afterwards; or c) if that interest is a benefit available to all Members, such as the parliamentary salary, or expenses met from parliamentary sources or from a scheme for parliamentary expenses; or d) if it is a benefit provided by the Member’s own party (unless it is registrable under Category 2: Donations and other support for activities as a Member of Parliament).

Occasions when declaration is required

7. Subject to paragraphs 1 to 6 of this chapter, Members must declare a relevant interest: a) In the Chamber and in general committees:

i. when speaking in a debate;

ii. in the Committee or consideration stage of a Bill. In a Public Bill Committee a Member should declare an interest at the first meeting or when he or she first addresses the Committee. The declaration should be repeated later if speaking on any amendment to which the interest is particularly relevant; b) In Committee on Opposed Private Bills:

A Member nominated by the Committee of Selection to serve on a Committee on an Opposed Private Bill must sign a declaration that “my constituents have no local interest,

81 Members should be aware that existence of a blind trust may be declarable for example during proceedings concerning legislation which would affect such trusts. In addition, if a Member is aware that the trust invests in a particular sector he or she may need to declare that where relevant.

Proposed Revisions to the Guide to the Rules relating to the conduct of Members 49

and I have no personal interest, in the said Bill.”82 Advice is available from the Clerk of Bills. c) In Select Committees:

i. at the Committee’s first meeting. Members must provide details of any registered financial interests, and of any non-registrable interests which meet the test of relevance.83 These are circulated under the authority of the Chair (if elected by the House) or in other cases the senior Member before the Committee’s first meeting. Members who do not attend the Committee’s first meeting must make their declaration at the beginning of the first meeting they do attend;

ii. when the Committee is deciding on the subject of an inquiry;

iii. at the beginning of any inquiry to which their interest particularly relates;

iv. at sessions of evidence, and in any hearings involving witnesses to whom the interest is particularly relevant and before any questions which might reasonably be thought by others relevant to that interest.

These declarations will be recorded in the Committee’s proceedings.

If the subject matter of the inquiry is of direct concern to an outside body in which a Member has a financial interest, he or she must consider whether it is proper to take part in the inquiry without conflict of interest, and whether it is possible to participate effectively in the inquiry without crossing the borderline into paid advocacy. And a Member who has a personal interest which may reflect upon the work of the Committee or its report should stand aside from the Committee proceedings relating to it.84 d) When tabling any written notice:

i. when tabling a notice for the presentation of a Bill, or tabling an amendment to a Bill. A Member who gives his or her name in support of a Bill, or who tables an amendment to a Bill, must notify the Legislation Office of any relevant interest;

ii. when tabling oral or written Questions. Members must indicate any relevant interest on the question form. If the question is for oral answer there is no need for further declaration when called in the Chamber;85

iii. when applying for urgent Questions or emergency debates. Members must inform the Speaker of any relevant interest. If the request is granted the Member must also declare the interest orally when asking the question or moving the motion;

82 Standing Order 120 refers. 83 The test of relevance is set out in paragraph 5 of this chapter. 84 Further guidance on select committees, including restrictions on the activities of Chairs, is available in the Guide for Select Committee Members: http://intranet.parliament.uk/Documents/intranet/offices-departments/assets/guide- %20for-select-Ctte-members-june10.pdf 85 There is also no need to declare an interest when asking a Supplementary Question.

50 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

iv. when tabling motions, including Early Day Motions [EDMs], or amendments to motions, or adding their name to a motion or amendment. Members must indicate any interest in the appropriate place on the form;

v. when applying for an adjournment debate. Members must inform the Table Office of any relevant interests;

vi. when giving notice before presenting a petition and when presenting a petition in the House. Members must notify the Journal Office of any relevant interest when giving notice of presentation of a petition, providing an explanatory note if the nature of that interest is not immediately obvious from their Register entry. They must then declare any relevant interests in the House when presenting that petition;

vii. when standing for election as chair of a Select Committee. The Member’s full Register entry is published with his or her nomination.

8. When an interest is declared, the symbol [R] (for ‘Relevant Interest Declared’) will normally be printed on the relevant Notice Paper or Order Paper. If it is not readily apparent which of the Member’s interests is relevant, he or she should provide an explanatory note which will then be made available for inspection. e) When approaching others:

Members must declare a relevant interest in any communication, formal or informal, with those who are responsible for matters of public policy, public expenditure or the delivery of public services.86 That includes communications with Ministers, either alone or as part of a delegation: with other Members; with public officials (including the staff of government departments or agencies and public office holders). If those communications are in writing, then the declaration should be in writing too; otherwise it should be oral. f) When booking facilities on the parliamentary estate.

Members who book private dining rooms or any other rooms through the Facilities Department for the purpose of holding a function must indicate on the booking form if they have a relevant interest. This requirement applies if the function is on behalf of an outside organisation other than the Member’s political party. Members who have such an interest must also indicate this on the invitations to their event. For this purpose a function is where significant hospitality including food and drink is provided: a declaration is not necessary when booking a room simply for a meeting or presentation where simple refreshments such as tea and biscuits may be available.

86 The test of relevance is set out in paragraph 5 of this chapter.

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Chapter 3: Lobbying for reward or consideration

The principle

1. Paragraph 11 of the Code of Conduct for Members of Parliament provides:

11. No Member shall act as a paid advocate in any proceeding of the House.87

2. Taking payment in return for advocating a particular matter in the House is strictly forbidden. Members may not speak in the House, vote, or initiate parliamentary proceedings for payment in cash or kind. Nor may they make approaches to Ministers, other Members or public officials in return for such payment.

3. A Member may not enter into any contractual arrangement which fetters the Member’s complete independence in Parliament, nor may an outside body (or person) use any contractual arrangement with a Member of Parliament as an instrument by which it controls, or seeks to control, his or her conduct in Parliament, or to punish that Member for any parliamentary action.

4. The rules on lobbying are intended to avoid the perception that outside individuals or organisations may reward Members, through payment or in other ways, in the expectation that their actions in the House will benefit that outside individual or organisation, even if they do not fall within the strict definition of paid advocacy. They prevent a Member initiating proceedings or approaches to Ministers, other Members or public officials which would confer a financial or material benefit on such a person or organisation. These rules are intended to provide the right balance between enabling Members to bring to bear their experience outside the House on matters of public policy while avoiding any suggestion that the parliamentary or policy agenda can be set by an outside individual or organisation making payments to a Member.

5. The lobbying rules do not prevent a Member holding a paid outside interest as a director, consultant, or adviser, or in any other capacity, whether or not such interests are related to membership of the House.

6. The lobbying rules apply only to Members who receive an outside reward or consideration and whose activities would provide a financial or material benefit to the person or organisation providing that reward or consideration. They do not otherwise prevent Members from initiating or participating in proceedings or approaches to Ministers, other Members or public officials, even where they themselves may have a financial interest. In such cases the rules on registration and declaration apply. Members must also consider whether they have a conflict of interest. If so, they must resolve it, at once, in accordance with Paragraph 10 of the Code of Conduct.

87 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885

52 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

7. Interests which are wholly personal and particular to the Member, which may arise from a profession or occupation outside the House, ought not to be pursued by the Member in proceedings in Parliament.

The rules relating to lobbying

8. The rules place the following restrictions on Members: a) When initiating proceedings or approaches to Ministers, other Members or public officials. Subject to paragraph 10 below, Members must not engage in lobbying by initiating a proceeding or approach which seeks to confer, or would have the effect of conferring, any financial or material benefit on an identifiable person from whom or an identifiable organisation from which they, or a family member, have received, are receiving, or expect to receive outside reward or consideration, or on a registrable client of such a person or organisation; b) When participating in proceedings or approaches to Ministers, other Members or public officials. Members may lobby by participating in such proceedings or approaches which would confer a financial or material benefit on the identifiable person from whom or identifiable organisation from which they, or a family member, have received, are receiving or expect to receive outside reward or consideration (or on a registrable client of such a person or organisation) provided that they have not initiated those proceedings or approaches and that their approach or participation does not seek to confer benefit exclusively on that person or organisation (or on their client) and provided that that person or organisation (or their client) has not initiated the event.

9. Exceptionally, a Member may approach the responsible Minister or public official with evidence of a serious wrong or substantial injustice even if the resolution of any such wrong or injustice would have the incidental effect of conferring a financial or material benefit on an identifiable person from whom or an identifiable organisation from which the Member, or a member of his or her family, has received, is receiving or expects to receive, outside reward or consideration (or on a registrable client of that person or organisation).

Time limits

10. The restrictions under the lobbying rules apply for six months after the reward or consideration was received. A Member can free him or herself immediately of any restrictions due to a past benefit by repaying the full value of any benefit received from the outside person or organisation in the preceding six month period. Definitions

11. Initiating a proceeding of the House includes: a) presenting a Bill; b) presenting a Petition;

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c) tabling and asking a Parliamentary Question, including a Topical Question or a Question to the Prime Minister; d) asking a supplementary question to the Member’s own Question; e) initiating, or seeking to initiate an adjournment (or other) debate; f) tabling or moving any motion (e.g. an “Early Day Motion”, a motion for leave to introduce a Bill under the “Ten Minute Rule” or a motion “blocking” a Private Bill); g) tabling or moving an Amendment to a Bill; h) proposing a draft Report, or moving an Amendment to a draft Report, in a Select Committee; i) giving any written notice, or adding a name to such a notice, or making an application for and introducing a daily adjournment debate, or emergency debate.

12. Participating in a proceeding of the House includes: a) making a speech in the House, in Committee of the whole House, in Westminster Hall or in a general committee; b) making an intervention in a debate statement or other proceeding or asking a supplementary question to another’s Question; c) asking a question in a Select Committee when taking formal evidence.

13. Outside reward or consideration includes: a) past financial interests or material benefits, including “one-off” registrable interests, such as visits and gifts, and continuing benefits such as directorships, employment and sponsorships. b) all present financial interests or material benefits which must be either registered or declared; c) future financial interests or material benefits, where a Member has a firm and specific expectation that such a financial benefit from an identifiable outside person or organisation will accrue in the next six months.

14. Outside reward or consideration does not include: a) any non-financial interest or benefit, even though this may be registered or declarable; b) any payment to someone from the Member’s family which arises out of that person’s own occupation. This is not regarded as a benefit for the purposes of the lobbying rule, although it may be declarable.88

88 The definition of a family member is as under registration Category 9; see paragraph 58 of Chapter 1 of this Guide.

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15. An identifiable person or organisation is a named person or organisation from whom a Member has received or is receiving outside reward or consideration, or from whom a Member has a firm and specific expectation of receiving such reward or consideration, at the time of the relevant parliamentary proceeding or approach to Ministers, Members or public officials.

16. Family members comprise: a) all those defined under registration Category 9 (see paragraph 58 of Chapter 1 of this Guide). The lobbying restriction arising from the receipt of outside reward or consideration by a family member applies only when the Member is aware or could reasonably be expected to be aware of such reward or consideration.

17. Public officials include: a) all those who are responsible for matters of public policy, public expenditure or the delivery of public services. The term therefore includes all staff of government departments and agencies and public office holders.

18. Making any approach to a Minister, other Member or public official includes: a) participating in or accompanying a delegation or group to discussions or meetings, whether these are formal or informal in nature. Application of the lobbying rules

Matters outside the lobbying rules

19. The following fall outside the lobbying rules: a) Ministers: Members who are acting in the House as government Ministers are not subject to these rules when acting in that capacity. b) Other elected bodies: Membership of other specified elected bodies shall not be taken into account when applying this rule. These bodies comprise: the Scottish Parliament; the National Assembly for Wales; the Northern Ireland Assembly; the European Parliament; and local authorities in the United Kingdom. c) Constituency issues: Members may pursue any constituency interest in any approach to a Minister or public official, subject to the registration and declaration rules. NB: The lobbying rules do apply, however, in respect of Members initiating any proceeding of the House on behalf of a person or organisation in their constituency from whom or from which they, or a family member receive, have received or expect to receive outside reward or consideration. d) Trade union sponsorship: The rules do not prohibit Members being sponsored by a trade union or any other organisation, subject to the rules on registration and declaration. e) Representative organisations, associations, charities, etc:

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i. Membership alone (i.e. without remuneration) of a trade association, staff association, professional body, charity or other similar representative organisation is not taken into account when applying the lobbying rules .

ii. A Member who is a member of a representative organisation may lobby by initiating or participating in parliamentary proceedings or approaches to Ministers, other Members or public officials in support of a policy position held by, or a campaign run by, that organisation, irrespective of any other relevant financial interest, provided any such interests are properly declared.

iii. Members who are remunerated advisers to representative organisations are subject to the lobbying rules in respect of such organisations as they would be in respect of other identifiable persons or organisations under paragraph 7 above. f) Private Members’ Bills: Private Members (including those successful in the Ballot for Bills) are not prevented from introducing and proceeding with a Bill by reason of the fact that they receive free or subsidised assistance from an organisation connected with the purposes of the Bill, provided the Member had no pre-existing financial relationship with the organisation which is registered, or is required to be registered.

Former Members

20. Former Members must abide by the restrictions of the lobbying rules for six months after their departure from the House in respect of any approach they make to Ministers, other Members or public officials. Former Members may not use their privileged parliamentary pass for the purposes of lobbying on the parliamentary estate.

21. These provisions do not apply to former Members who are Members of the House of Lords.

22. The Committee on Standards and Privileges has indicated it would expect the Committee on Standards to regard it as a serious matter if a sitting Member were influenced in his or her actions by the prospect of becoming a paid lobbyist, or entered into improper agreements relating to future lobbying activities.

23. Hospitality from foreign governments and visits outside the UK

24. .Members may not initiate any parliamentary proceeding or approach to a Minister, other Member or public official which seeks to confer, or would have the effect of conferring, any financial or material benefit on a foreign government, non-governmental organisation (NGO) or other agency which has, within the previous six months, funded a visit they have undertaken or provided them with hospitality. 89

25. Members may, having declared their interest, participate in parliamentary proceedings or approaches to Ministers, other Members or public officials which they have not initiated and which relate to a country from which they have received hospitality or where a foreign

89 Subject to the provisions in paragraph 6(a) above which enable a Member to free him- or herself of a past benefit.

56 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

government has funded their visit, provided that their participation does not seek to confer benefit exclusively on that government or organisation.

Points of Order

26. The Speaker has declined to receive points of order relating to registration or lobbying.90

90 Select Committee on Standards in Public Life, Second Report, Session 1994–95, HC 816,paragraph 26 and e.g. HC Deb, vol 276, col 605 and vol 277, cols 767–68

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Chapter 4: Procedure for Inquiries

Requirements of the House

1. Paragraphs 18 and 19 of the Code of Conduct provide:

2. The Parliamentary Commissioner for Standards:

• considers complaints alleging that a Member of Parliament has breached the Code of Conduct and its associated rules; and

• if he or she thinks fit, investigates specific matters which have come to his or her attention relating to the conduct of a Member; and

• exceptionally inquires into a matter referred to the Commissioner by a Member in relation to his or her own conduct.

3. In all cases, the Commissioner will only initiate an inquiry if he or she is satisfied that the evidence put before the Commissioner is sufficient to justify such an inquiry. It is not sufficient to make an unsubstantiated allegation and expect the Commissioner to look for any supporting evidence.92 The receipt of a complaint or the initiation of an inquiry by the Commissioner does not imply that there has been a breach of the rules of the House.

4. Details of the Commissioner’s current inquiries are provided monthly on the Commissioner’s webpages.93

5. Complaints about the misuse of the scheme for parliamentary expenses since May 2010 are a matter for the Independent Parliamentary Standards Authority. However, where the Independent Parliamentary Standards Authority or its Compliance Officer consider that a Member’s conduct justifies it, they shall refer that Member, with the relevant evidence, to

91 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885 92 Select Committee on Members’ Interests, First Report of Session 1992–93, HC 383, paragraph 4 93 http://www.parliament.uk/mps-lords-and-offices/standards-and-interests/pcfs/publications/inquiries/current-inquiries/

58 Proposed Revisions to the Guide to the Rules relating to the conduct of Members

the Commissioner for the Commissioner to decide whether to inquire into a potential breach of the Code of Conduct and its associated rules.

Submitting a complaint

6. Complaints must: a) be submitted by an individual, whether a member of the public or a Member of Parliament. Complaints from organisations, or made on behalf of someone else, cannot be accepted; and b) be made in writing and signed, and provide the complainant’s name and full postal address; and c) make clear in what respect the complainant believes that the Member may have breached the Code of Conduct and its associated rules. Allegations should be supported by sufficient evidence to justify the initiation of an inquiry.

7. It is a basic courtesy that a Member making a complaint to the Commissioner should at the same time send a copy of the letter of complaint to the Member concerned.

8. Further guidance on the complaints procedure is available in the Commissioner’s procedural note, which can be found on the parliamentary webpages.94

Parliamentary privilege

9. Communications between a member of the public and the Commissioner are not covered by parliamentary privilege unless and until the Commissioner has accepted the matter for inquiry.

Initiating an inquiry

10. When considering any reference to the Commissioner, he or she will first consider if the matter is within his or her remit. If so, the Commissioner will consider whether in his or her view, sufficient evidence has been provided to justify the initiation of an inquiry into whether the Code of Conduct and its associated rules may have been breached.

11. The Committee has made it clear that it would expect the Commissioner to consult it before exceptionally initiating an inquiry into a former Member or in respect of a matter which goes back more than seven years. The Committee would expect to authorise such inquiries only in exceptional circumstances.

94 The procedural note has been approved by the Committee on Standards and Privileges and issued by the Commissioner. http://www.parliament.uk/mps-lords-and-offices/standards-andinterests/pcfs/publications/inquiries/complaints-process/

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institute such an inquiry. That decision is made by the Commissioner. If the Commissioner considers that an inquiry would be disproportionate given the nature and seriousness of the allegation made, the Commissioner may decide not to inquire into that matter. If the Commissioner considers the evidence received is insufficient to justify an inquiry, or the matter falls outside the Commissioner’s remit, he or she will so decide and inform any complainant. The Commissioner will report briefly to the Committee on the consideration of all formal complaints and allegations submitted.

Resolution of inquiries: Parliamentary Commissioner for Standards

13. If the Commissioner accepts a matter for inquiry the Commissioner will notify any complainant and invite the Member to respond to the allegation. The Commissioner will then make any subsequent enquiries he or she considers necessary.

14. Under the Code of Conduct Members are required to cooperate with any inquiry into their conduct.95 Members must also not lobby the Committee or the Commissioner in a manner calculated to influence their consideration of the matter. The Committee on Standards and Privileges has regarded any breach of this rule as particularly serious and it alone has led to suspension from the House

15. If, after or during the course of an inquiry, the Commissioner concludes that the allegation has not been substantiated, the Commissioner will not uphold it and will report that conclusion briefly to the Committee. The determination letter and the evidence relevant to that inquiry will be published on the Commissioner’s webpages.96 It is, however, open to the Commissioner to decide to submit a memorandum to the Committee into an allegation which the Commissioner proposes should not be upheld. This may be because of the particular seriousness of the allegation or because the inquiry raises matters of wider interest or relevance. The Committee will then consider the Commissioner’s conclusions and submit its own report to the House.

16. Under Standing Order No. 150 the Commissioner may decide that the matter can be resolved through the rectification procedure.97 If so, and the Member agrees and apologises, the Commissioner will determine the matter on that basis and report the fact briefly to the Committee. The determination letter and the evidence associated with that inquiry will be published on the Commissioner’s webpages.98 In the case of non- registration, rectification requires a belated entry in the current Register in bold italic type with an appropriate explanatory note.99 In the case of non-declaration, it requires an apology to the House by means of a point of order in accordance with the procedure

95 The Code of Conduct together with the Rules relating to the Conduct of Members, Session 2010–12, HC 1885 96 http://www.parliament.uk/mps-lords-and-offices/standards-and-interests/pcfs/publications/inquiries/matters-not- upheld/ 97 Standing Order No. 150(3) 98 http://www.parliament.uk/mps-lords-and-offices/standards-and-interests/pcfs/publications/inquiries/matters- rectifiied/ 99 A rectified entry remains in the Register in that form for 12 months or until the next printed edition, whichever is the later.

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established for such apologies by the Speaker. In cases involving parliamentary facilities or resources, the rectification procedure normally requires the Member to make any repayment or other relevant rectification.

17. If, after inquiry, the Commissioner finds that there has been a breach, which is not suitable for the rectification procedure, or that the inquiry raises issues of wider importance, the Commissioner will normally report the facts and his or her conclusions to the Committee in the form of a memorandum. The Committee will then publish the Commissioner’s memorandum on the case, alongside a report setting out its conclusions in the matter, including any recommendation to the House on whether further action is required.

Resolution of inquiries: Committee on Standards and Privileges

18. The Committee considers any matter relating to the conduct of Members, including specific allegations against a Member in relation to alleged breaches of the rules of the House which have been drawn to the Committee’s attention by the Commissioner.

19. The Committee may, under Standing Order No. 149, send for persons, papers and records; order the attendance of any Member before it; and require that specific documents in the possession of a Member relating to its inquiries or to the inquiries of the Commissioner be laid before it. The Committee will decide whether evidence is to be taken in public or in private. Its normal practice is to take evidence in private. The Committee is empowered to refuse leave for the broadcasting of any public sessions. The Committee’s internal discussions are always held in private.

20. Where the Commissioner has concluded that there has been a breach of the rules, and the Committee agrees in whole or in part, those concerned face a range of penalties. In a very few cases, the reputational damage of an adverse report will be deemed sufficient, together with any action required to remedy the breach. In more serious cases the Committee will make recommendations for further action. The Committee may recommend:

a) a written apology;

b) for relatively minor failures to declare interests, an apology on the floor of the House by means of a point of order;

c) an apology on the floor of the House by means of a personal statement;

d) for non-Members, withdrawal of Parliamentary passes, either indefinitely or for a fixed period;

e) suspension from the service of the House for a specified number of sitting days (during which time the Member receives no salary and must withdraw from the precincts of the House.)

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In the most serious cases the Committee has the power to recommend expulsion. While the House itself decides whether a Member should be suspended, its practice has been to accept the Committee’s recommendations on such matters.

21. The Committee may also report to the House on other matters referred to it by the Commissioner.

Remit of the Parliamentary Commissioner for Standards

22. Subject to paragraphs 16 and 17 of the Code, the House of Commons has agreed a number of exceptions to the Commissioner’s remit. As a result the Commissioner is unable to investigate complaints about: a) policy matters; b) a Member’s views or opinions; c) a Member’s handling of or decision about a case (whether or not anyone involved is a constituent of the Member); d) a matter which relates only to the conduct of a Member in his or her purely private and personal life.100

23. The following matters, which fall outside of the Commissioner’s remit, may be referred by the complainant to the relevant body or individual: a) conduct in the Chamber, which is a matter for the Speaker; b) complaints about the misuse of the scheme for parliamentary expenses since May 2010, which are matters for the Independent Parliamentary Standards Authority and its Compliance Officer; c) allegations of criminal misconduct, which are normally a matter for the police; d) the funding of political parties and the permissibility of donations, which are matters for the Electoral Commission; and e) alleged breaches of the Ministerial Code, which governs the conduct of government Ministers in their capacity as Ministers and which are matters for the Cabinet Office.

24. Complaints of non-registration by Members’ staff, All-Party Groups and journalists will be considered by the Registrar of Members’ Financial Interests. The Registrar will seek to resolve the complaint, but can, if necessary, refer the matter to the Commissioner.

100 The Code of Conduct together with the Rules relating to the Conduct of Members, Session 2010–12, HC 1885, paragraph 17

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Formal Minutes

TUESDAY 4 DECEMBER 2012

Members present:

Mr Kevin Barron, in the Chair

Sir Paul Beresford Heather Wheeler Annette Brooke Dr Alan Whitehead

Draft Report (Proposed Revisions to the Guide to the Rules relating to the conduct of Members), proposed by the Chair, brought up and read.

Ordered, That the Chair’s draft Report be read a second time, paragraph by paragraph.

Paragraphs 1 to 3 read and agreed to.

Paragraph 4 read, amended and agreed to.

Paragraphs 5 to 8 read and agreed to.

Paragraph—(Mr Kevin Barron)— brought up, read the first and second time, and inserted (now paragraph 9).

Paragraphs 9 to 10 (now paragraphs 10 to 11) read and agreed to.

Paragraph 11(now paragraph 12) read, amended and agreed to.

Paragraphs 12 to 19 (now paragraphs 13 to 20) read and agreed to.

Paragraph 20 (now paragraph 21) read, amended and agreed to.

Paragraphs 22 to 31 read and agreed to.

Paragraph 32 read, amended and agreed to.

Paragraphs 33 to 35 read and agreed to.

Paragraphs 36 to 48 disagreed to.

Paragraphs 49 to 51(now paragraphs 36 to 38) read and agreed to.

Paragraph 52 (now paragraph 39) read, amended and agreed to.

Paragraphs 53 to 54 (now paragraphs 40 to 41) read and agreed to.

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Paragraph—(Mr Kevin Barron)—brought up, read the first and second time, and inserted (now paragraph 42).

Paragraph 55 (now paragraph 43) read and agreed to.

Paragraph 56 (now paragraph 44) read, amended and agreed to.

Annexes agreed to.

The Commissioner’s memorandum was appended to the Report as Appendix 1.

Resolved, That the Report, as amended, be the Third Report of the Committee to the House.

Ordered, That the Chair make the Report to the House.

Adjourned till a time to be fixed by the Chair

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Appendix 1: Memorandum from the Parliamentary Commissioner for Standards

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Contents

1 Foreword 3

2 Format of the Guide to the Rules 4

3 Introduction to the Guide to the Rules 5 Additions to the Introduction 5 Status of the new Guide 5

4 Registration of Financial Interests 7 Category 1: Employment and earnings 7 Number of employment categories 7 Employment contracts for one year or more 8 Hours worked 8 Dates of employment payments 9 Agreements for provision of services 9 Payments for opinion surveys 10 Employment payments to third parties 10 Redundancy and ex gratia payments 11 Advance registration of ad hoc payments 12 Occupational and other pensions 12 Sole traders 13 Net and gross earnings 13 Business appointments of former Ministers 14 Category 2: Donations and other support 15 Developmental and secondment programmes 16 Support received via local and central party organisations 17 Category 3: Gifts, benefits and hospitality (UK) 17 Gifts, benefits and hospitality provided to third parties 18 Category 4: Visits outside the UK 18 Visits relating to political activities, and visits by third parties 19 Category 5: Gifts and benefits from sources outside the UK 20 Gifts and benefits relating to political activity 20 Gifts and benefits provided to third parties 20 Employment benefits from outside the UK 21 Category 6: Land and property 21

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Land and property outside the UK 22 Rental income 22 Dates of acquiring and disposing of land and property 23 Category 7: Shareholdings 23 Dates of acquiring and disposing of shareholdings 23 Category 8: Miscellaneous 24 Unremunerated positions and holdings below the registrable thresholds 24 Other assets 25 Indirect interests 26 Donations to charity 26 Dates when interests arose or ended 26 Category 9: Family members employed 27 Information about family members employed 27 Category 10: Family members involved in lobbying 28 Financial thresholds 28

5 Declaration of Interests 32 Non-financial interests 32 Indirect interests 32 Function rooms 33

6 Lobbying for Reward or Consideration 34 Lobbying following foreign hospitality and visits outside the UK 34 General application of the lobbying rule 35 Activities of former Members of Parliament 38 Past benefits 40 Other changes in relation to lobbying 41

7 Procedure for Inquiries 42 Limiting inquiries into past conduct 42 Conduct in private and personal lives 43 Self-referrals 43 Frivolous or vexatious complaints and disproportionate inquiries 44 Rectification of non-declarations: procedure for apologies 44

Annex 1: Recommendations 47

Annex 2: Proposed new Guide to the Rules relating to the conduct of Members 52

Annex 3: List of respondents to consultation 83

Annex 4: Example of new register entry in Category 1: Employment and Earnings 84

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1 Foreword

1. This memorandum reports on the outcome of my review of the Guide to the Rules relating to the Conduct of Members.

2. I launched a consultation on the Guide on 19 January 2012.1 I received the final response on 15 May 2012. I was very grateful for the thirteen responses received: while their number was limited, each response was valuable and allowed me to consider a range of views on the presentation and the policies included in the Guide.

3. The Guide to the Rules supports some of the rules set out in the Code of Conduct for Members of Parliament. The current Code was approved by the House on 12 March 2012, and is published together with the edition of the Guide which was approved on 9 February 2009.2 That Guide provides further guidance on the rules in relation to the registration of financial interests, to the declaration of interests and to lobbying for reward or consideration. It also provides further guidance on the conduct of inquiries into possible breaches of the Code. Other guidance, published elsewhere, supports other rules set out in the Code, in particular on expenses which are matters for the Independent Parliamentary Standards Authority, and on the use of House stationery and House facilities.

4. The Guide is broken down into separate chapters—registration, declaration, lobbying and inquiries. In my consultation paper, and in the memorandum which follows, I consider possible changes in each of these areas. In each section I provide any necessary background, a summary of the consultation responses, a discussion section leading to my own conclusions and my recommendations.

5. I include a number of annexes to this memorandum. The principal Annex is Annex 2. I have included there what I recommend should be the new version of the Guide to the Rules. This new Guide incorporates the policy and presentational changes I recommend in the memorandum. The Guide is set out in its new format, which I believe will be clearer and easier for Members, their staff and the public to follow and to understand.

6. I am very grateful to the Registrar of Members’ Financial Interests and to the other staff in my office for their help in producing the memorandum which follows.

1 My consultation paper is available at: http://www.parliament.uk/mps-lords-and-offices/standards- andinterests/pcfs/consultation-on-code-of-conduct-for-mps/. 2 The Code of Conduct together with The Guide to the Rules relating to the conduct of Members 2012, HC 1885

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2 Format of the Guide to the Rules

Background

7. The new Guide attached to my consultation paper listed in an itemised format the requirements in each part of the Rules and what each Member needed to do to comply with these requirements. Partly by removing the references to past resolutions of the House and by simplifying some of the commentary, it was possible to reduce its length and to offer a clearer and more accessible Guide. My first question in the consultation paper was whether the new format worked.

Question 1: Does the draft new Guide at Appendix 1 set out the requirements of the House more clearly and in a more accessible format? If not, what further changes are needed?

Responses to consultation The Public Standards Commissioner for Scotland, the Electoral Commission and the Leader of the House (Sir George Young) all welcomed the new and simpler structu re proposed.

Discussion

8. I received no representations against the proposed change in format, and those responses I received were supportive.

Recommendation 1

9. The House should adopt the clearer format proposed in the consultation paper, which is reflected in the new Guide to the Rules which I have placed at Annex 2.

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3 Introduction to the Guide to the Rules

Introduction

10. The Introduction to the Guide to the Rules provides a summary of each of the chapters in the rest of the Guide—on registration, declaration, lobbying and the procedure for inquiries. It also provides important information about the financial thresholds for registration and about the timescale in which registration must be made. The consultation paper included no particular questions about the Introduction, but I received from respondents some suggestions in relation to the operation and implementation of the Guide which they considered could usefully be included in the Introduction.

Additions to the Introduction

Issue: Should any additional points be added to the Introduction?

The Leader of the House suggested that two additions were needed. He said that it would be helpful if the Introduction to the new Guide and Chapter 4 of the new Guide reflected the changes made to the role of Commissioner to reflect that of the new Independent Parliamentary Standards Authority. He also commented, in relation to the requirements for additional information when registering land, property and shareholdings, that these changes ought not to have retrospective effect.

Discussion

11. I agree with Sir George Young on both these matters. I have made the necessary additions, both to the Introduction and to Chapter 4, to take account of the role of the Independent Parliamentary Standards Authority. And in view of Sir George Young’s concerns about retrospectivity, I consider that it would be helpful for the Introduction to the Guide to make clear that the amended and new provisions in the new Guide affect only those actions required of Members after any commencement date or dates agreed by the House.

Recommendation 2

12. The Introduction to the Guide should make clear that any changes agreed by the House following this review do not apply retrospectively and affect only those actions of Members after the commencement date or dates agreed by the House.

Status of the new Guide

Issue: What is the relationship between the Code of Conduct and the Guide and the Resolutions of the House?

The Clerk of the House said that at present “there is a certain amount of doubt” about the relationship between the Code, the Guide and the founding Resolutions. He suggested that it would be helpful to make clear that the Code and Guide are paramount, in terms of the rules of the House.

Discussion

13. I am grateful to the Clerk of the House for this suggestion. I agree that clarification would assist Members, as well as the public, and would mean that any perceived differences of emphasis between the Guide and earlier Resolutions would no longer be a potential subject of contention. The Clerk’s suggestion could be implemented in the text of any motion put before the House when seeking its agreement to a new Guide.

Recommendation 3

EV 6 Review of the Guide to the Rules relating to the conduct of Members

14. The Committee should consider inviting the House to consider a motion on the lines that “Previous resolutions of this House in relation to the conduct of Members shall be read and given effect in such a way which is compatible with the Code of Conduct and the Guide to the Rules relating to the conduct of Members”.

Review of the Guide to the Rules relating to the conduct of Members EV 7

4 Registration of Financial Interests

Introduction

15. This chapter sets out the detailed requirements for the registration of Members’ financial interests. These have been developed and added to over the lifetime of the Guide and can be difficult to follow. In the draft new Guide I updated and simplified the guidance in order to make it easier to follow. In my consultation paper I also invited views on possible changes to the substance of the rules. I set out below, under the categories used in the draft new Guide, the questions I raised and the responses I received. I also consider some further issues raised by respondents and others, which were not canvassed in that consultation paper.

Category 1: Employment and earnings

Background

16. Members must currently register, within 28 days of receipt, detailed information about each payment received in return for any outside work they undertake. Payments must be registered in one of three categories: Category 1: Directorships; Category 2: Remunerated employment, office, profession etc; and Category 3: Clients. There is a separate form for Members to complete for each Category. Three quarters of the changes in each updated Register involve entries in Categories 1 and 2.

17. The requirement to record each employment payment in detail dates from 30 April 2009, when the House agreed that Members should in future register each payment from an employer, together with the hours associated with the payments, and the name and address of that employer. This has been interpreted as requiring Members to include all payments received for work done for others, including the completion of opinion surveys, and without exemptions for ongoing employment arrangements. On 7 February 2011 the House reintroduced a financial threshold which was, for individual payments, over 0.1% of the parliamentary salary (currently £66), and for the total of payments of whatever size received from the same source in a calendar year, over 1% of that salary (currently £660). The House did not however require Members to register the date when the payment was received.

18. In addition, if a Member provides services in his or her capacity as a Member of Parliament, he or she must lodge with my office an agreement for the provision of services in which his or her employer must undertake that the Member will not be asked to engage in paid advocacy.

19. There are two areas in which the 2009 Guide does not provide comprehensive guidance. The first is the registration of remuneration which is paid to a third party rather than to the Member. The second is whether Members are required to register redundancy or ex gratia payments from past and present employers. Some such payments have in the past been registered under Category 11: Miscellaneous.

Number of employment categories

Question 2: Should the current three employment categories be retained; or should they be replaced with a single category (new Category 1: Employment and earnings) as shown in the draft new Guide at Appendix 1?

Responses to consultation The Public Standards Commissioner for Scotland supported the proposed reduction to one category. The Leader of the House (Sir George Young) said that in his personal view there were advantages in keeping the three categories. He said that “A directorship remains different in kind to other types of employment, bringing...distinct legal obligations”, and that “Clients and payments to them are of distinct interest to the public, and arguably merit continued inclusion in a separate category.”

Discussion

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20. In my draft of the new Guide I had provisionally amalgamated these three categories into one, thus bringing together under a single heading all employment-related information about each Member, including any clients for whom the Member had worked. I suggested that the small number of Members who had clients did not justify the retention of a separate category for these. By reducing the number of categories and of forms to be completed, I hoped also to simplify both the Register and the process for making an entry.

21. I recognise Sir George Young’s view that directorships are different in kind from other types of employment, and that a Member’s clients and payments from them arguably merit being included in a separate category. Equally, I consider it important to try to simplify the presentation of the Register and reduce the amount of form-filling it involves. I believe it is possible to meet Sir George Young’s concerns about the importance of employment as a director and to satisfy the public interest in any client payments while at the same time creating a single registration category. This can be achieved by amending the format for a single employment category in the Register so that it distinguishes clearly between directorships and other forms of employment, and identifies separately any client. This should enable the reader to see in one place all a Member’s outside employments, while simplifying the registration process. I include at Annex 4 an example of a new Register entry. The first item shows how the Register might in future record work as a director, and the second how it might record work for paid clients.

Recommendation 4

22. There should be a single registration category for all paid employment with each Register entry laid out in a manner which distinguishes clearly between directorships and other paid employment and which gives due prominence to the names of any clients for whom Members work.

Employment contracts for one year or more

Question 3: Should Members with employment contracts for one year or more, who receive regular payments, be permitted to register these by giving the annual salary and the hours agreed and without recording each individual payment they receive?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland supported this proposal.

Discussion

23. I consider this would be a useful simplification which would relieve Members of unnecessary burdens, while still providing the necessary financial information to the public. The first and fourth items in the example new entry at Annex 4 show how such a contract might be recorded in the Register.

Recommendation 5

24. A Member with an employment contract for twelve months or more, who receives regular payments, should be permitted to register this by giving the agreed start and (if any) end dates of that contract, the sums and dates agreed for these payments, and the hours to be worked. Such a Member would then not be required to record each such payment as it is received.

Hours worked

Question 4: Should the requirement to register the hours a Member has worked continue?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland favoured ending this requirement, which the Leader said had not been considered in detail in 2009. He said “There is a risk that those hours will be taken in isolation from the hours worked in a parliamentary capacity and without regard to when they are worked.”

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Discussion

25. I recognise Sir George Young’s concern that the hours a Member records as spending on outside employment may be taken out of context. After all, Members are not required—and should not be expected— to record the hours they spend on all their other activities, so this information alone cannot fairly be used to judge the time Members give to their constituency duties or their duties in the House. Nevertheless, in 2009 the recommendation of the Committee on Standards in Public Life that Members should remain free to undertake some paid activity outside the House of Commons was clearly conditional on there being “transparency about the nature of the activity and the amount of time spent on it”.3 The Committee noted that “recording the number of hours worked, as well as the payment received, will increase transparency”.4 It suggested that the arrangements should be reviewed early in the current Parliament to see if they were working effectively and without disproportionate effect. I recognise that there are sometimes difficulties for Members in identifying how much time is spent—for example in preparing for a speech or writing a book— but, although I know the requirement to register hours worked is seen as onerous by some, in my judgement there is not sufficient evidence that it is causing such difficulty to Members as to justify dropping it at this stage. In view of the public sensitivity about this issue, I recommend that the hours requirement should be kept. The matter should, however, be considered again at the next review.

Recommendation 6

26. Members should continue to register the hours worked for each payment in Category 1: Employment and earnings.

Dates of employment payments

Question 5: Should Members in future be asked to supply the dates when they received any payments for employment?

Responses to consultation The Public Standards Commissioner for Scotland commented in favour of the proposal. The Leader of the House said that he believed registering the date of a payment to be superfluous.

Discussion

27. I consider that there is value in identifying when a payment was received. Without this date it can be difficult for constituents and the public to tell whether an interest is relevant to a particular action by a Member. Members are already required to register the dates when they receive benefits such as gifts and hospitality, and the dates of visits. It would make for a more consistent and more useful Register if dates were included for all registrations. I therefore recommend that in order to make this category as transparent as other parts of the Register, Members should be required to register the dates when they receive payment for their outside employment.

Recommendation 7

28. A Member registering a payment in Category 1: Employment and earnings should in future be required to give the date when it was received.

Agreements for provision of services

Question 6: Should the requirement to lodge an agreement for the provision of services be ended?

3 MPs’ expenses and allowances, Twelfth Report of the Committee on Standards in Public Life, Cm 7724, November 2009. Paragraph 11.18 and recommendation 34 refer. 4 Ibid, paragraph 11.24

EV 10 Review of the Guide to the Rules relating to the conduct of Members

Responses to consultation The Leader of the House expressed no view on this. The Public Standards Commissioner for Scotland said that the requirement should be ended “on the basis of the Member signing a declaration that they had not undertaken paid advocacy”.

Discussion

29. I have received no evidence that agreements for the provision of services have assisted Members by preventing, or helping them to resist, any demands to undertake paid advocacy. And my office has identified no cases where Members have told us that these agreements have been of help. I recommend therefore that this requirement should be ended, but that when Members register paid employment, they should be asked to confirm that they have not engaged in paid advocacy.

Recommendation 8

30. The requirement to lodge an agreement for the provision of services should be removed. Instead, the form for the registration of employment should ask Members to confirm that they have not engaged in paid advocacy.

Payments for opinion surveys

Question 7: Should the requirement to register payments received for the completion of opinion surveys be ended?

Responses to consultation The Leader of the House advocated ending the requirement to register payments for the completion of opinion surveys “where the payment is below £100.” The Public Standards Commissioner for Scotland favoured ending the requirement to register these surveys.

Discussion

31. I agree with Sir George Young. If the House approves my proposal of new thresholds of over £100 for a single payment and of over £300 for multiple payments, then opinion surveys paying below £100 will no longer need to be registered unless, of course, Members receive multiple payments from the same source which amount to over £300 in a calendar year.5

Recommendation 9

32. Members should be required to register payments for opinion surveys only if they exceed the relevant thresholds for the registration of employment and earnings.

Employment payments to third parties

Question 8: Should the rules be clarified to reflect current advice to a Member who is an unpaid director or employee of a company or other organisation and who undertakes services for clients who pay that organisation? The rules would then make clear that the Member should register this by giving details of the client, the payments made to the company and the hours worked.

Question 9: Should the Guide confirm current advice that Members should register as earnings payments for their services which are made directly or indirectly to local party organisations, to charitable or community organisations?

5 See the discussion of financial thresholds at paragraph 121ff.

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Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland agreed with my proposals for clarifying the rules in relation to unpaid directors and employees. They also agreed that the new Guide should confirm current advice on payments made to charities and community organisations.

Discussion

33. These two questions both concern the registration requirements which should apply if payment for the Member’s outside work is made to some other person or organisation. Such payments might arise if, for example:

(a) the Member was engaged by a consultancy organisation in order to advise a third party, who then paid the consultancy for that advice; or

(b) the Member undertook freelance work via an agency, such as an agency for after dinner speakers, which invoiced the organisers of the dinner for the Member’s services and received their payment; or

(c) the Member was a director or employee of a business owned by him or her or by a family member and which received payment for his or her work; or

(d) the Member asked for payment for his or her work to be made directly or indirectly to a local party organisation or to a charity or community organisation.

34. There should be no difficulty with any of the arrangements outlined in (a) to (c) above if the organisation acting as intermediary passes the payment to the Member. The existing rules require Members to register both the work they do for clients and the payments they receive for this work. But a possible difficulty arises if the remuneration is not passed to the Member, or if the payment cannot easily be linked to the work done. My office has advised Members in this position to register under the existing category for Clients any payment which has been made to an intermediary in respect of work the Member has done, but not in respect of work done by others. I believe that this is correct. A Member should not be able to avoid registration by the device of ensuring that payments for his or her work are made to an intermediary.

35. If a Member’s remuneration is paid directly to a local party organisation or to a charity or community organisation ((d) above), the longstanding advice from this office, formalised in the new Guide, is that the Member should register the work he or she has done in the usual way, while noting in the Register that the payment has been made to another organisation. Equally, if the payment is made directly to the Member who then passes it on to another person or organisation, that payment should be registered, although it is open to the Member to note in their entry that it has been donated elsewhere. I consider these are necessary and reasonable requirements. Members should not be able to avoid identifying their paid outside work by the way in which they deploy the remuneration for it.

Recommendation 10

36. The Guide should make clear that if payments in respect of work done by a Member are made to some other person or organisation, and if those payments are not passed on to the Member in a form which can be easily linked to the work done, or at all, that Member should nevertheless register any such payment to the other person or organisation in respect of the Member’s work (but not in respect of work done by anyone else who may be supporting him or her). The Guide should also make clear that if a Member passes an employment payment to another person or organisation he or she may note that in the Register.

Redundancy and ex gratia payments

Question 10: Should redundancy and ex gratia payments from past or present employers in future be included in this Category?

EV 12 Review of the Guide to the Rules relating to the conduct of Members

Responses to consultation The Leader of the House supported this proposal. On the other hand, the Public Standards Commissioner for Scotland said that he considered that the inclusion of redundancy and ex gratia payments would be “disproportionate and of limited value”.

Discussion

37. I agree with Sir George Young. Since a Member is required to register all remuneration for employment, ex gratia payments from current employers should be included. In the same way, redundancy and ex gratia payments from past employers could be seen to indicate a continuing financial relationship which might reasonably be thought by others to influence a Member’s behaviour. For these reasons I believe that this class of payments should be included in the Register. But, as with earnings, the requirement to register should apply only to payments received while a Member of the House.

Recommendation 11

38. The Guide should make clear that Members should register redundancy and ex gratia payments under Category 1: Employment and earnings.

Advance registration of ad hoc payments

Issue: Should the rules be changed to allow Members to register ad hoc employment payments before they have been received?

Mr Jack Straw said that because Members are not presently permitted to register employment payments until they have established that they have received the payment, which may not always be easy to do, a Member could be vulnerable to criticism if it was known that he or she had undertaken the work, but had not registered it because the payment had not yet been received. He suggested therefore that in future Members should be able to register such employment payments at any time between undertaking work and 28 days after receipt of the payment for it.

Discussion

39. I agree that this change would simplify the registration process for some Members while providing some greater transparency through earlier registration. I consider therefore that it should be possible for a Member to register an agreed payment at any time between having completed the work, and 28 days after the payment has been received. If the payment has not yet been received, the Member should include in the Register entry, instead of the date when the payment was received, the date on which the work was completed.

Recommendation 12

40. A Member who has completed a piece of work and agreed a payment for it should be permitted to register that payment at any time between completing the work, and 28 days after receipt of that payment. A Member registering in advance of payment should record, instead of the payment date, the date when he or she completed the work.

Occupational and other pensions

Background

41. Members are not currently required to register either membership of a pension scheme or receipt of a pension.6 But they may on occasion be required to declare in the House any pension arrangements, other than their membership of the parliamentary scheme, if these are relevant to proceedings.

6 There is one very limited exception. Under paragraph 59 of the 2009 Guide to the Rules, Members are required to register identifiable holdings under a self-invested personal pension fund (SIPP).

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Issue: Should Members be required to register outside pension arrangements?

The Clerk of Standards of the Northern Ireland Assembly, writing at the request of the Assembly’s Committee on Standards and Privileges, drew my attention to the requirement for Members of the Legislative Assembly to register membership of occupational pension schemes (whether or not their pensions are in payment). In addition, the Clerk to the Standards of Conduct Committee of the National Assembly for Wales forwarded a paper inviting that Committee to consider, among other possible changes, whether to require the registration of personal or occupational pensions.

Discussion

42. I have considered, in the light of these examples, whether Members should be required to place all their outside pension arrangements on the permanent record in the Register. After careful consideration I have concluded that I do not believe this to be necessary. Members are already required to declare a relevant interest such as receipt of a pension or membership of a pension scheme if others might reasonably think that it might influence their parliamentary behaviour. I do not consider that the fact that a Member’s previous employment has entitled him or her to a pension is sufficiently likely to influence his or her actions or words as to justify requiring every Member who receives or is entitled to a pension to record this in the Register.

43. Nor do I think it necessary for Members to record in the Register whether or not any current registered outside employment is pensionable since this does not in my view add significantly to the information properly provided in relation to current outside employment—the size of the payment and the nature of any taxable benefits.

Recommendation 13

44. The Register should not be extended to include Members’ pension arrangements.

Sole traders

Background

45. At present Members who are sole traders must register their income within 28 days of receiving each payment. It is open to them, as it is to any other Member, to amend or adjust those figures in the light of later information, such as any adjustments made at the end of the relevant financial year or in the course of preparing their annual accounts.

Issue: Should there be special arrangements for the registration of sole traders’ income?

The Clerk of Standards in the Northern Ireland Assembly described arrangements which allow MLAs who are self employed sole traders to postpone registering their income until they know the amount of their end year profit, as reported in financial statements.

Discussion

46. While the arrangement in Northern Ireland has the advantage of ensuring that earnings recorded in the Register are based upon firm figures, I consider that the inevitable delay in registration would not enhance the accuracy or transparency of the Register.

Recommendation 14

47. There should be no change to the arrangements for registration of earnings by Members who are self- employed sole traders, who should continue to register each payment to them as it is received.

Net and gross earnings

Background

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48. The Guide is currently silent on whether net or gross figures should be used in this category, but my office has consistently advised that salaries should be registered before any deductions, and fees before the addition of VAT.

49. While I did not consult specifically on this issue and no respondent raised it with me, some Members have raised this with the Registrar and so I address it now.

Issue: Should the Guide clarify that Members’ earnings are to be registered before any deductions?

I have considered whether it would be helpful if the rules made clear that Members are expected to register their earnings before deduction of for example, income tax, national insurance and any other stoppages. This is the basis on which Members currently register payments to them. And I have considered whether fees received should be given before the addition of VAT.

Discussion

50. I consider that it would be inconsistent with the way payments are usually quoted if practice were changed in order to require registration of net earnings instead of gross. It is common practice to quote salary figures before income tax and other deductions. Fees for service, on the other hand, such as those paid to barristers, are usually quoted before the addition of VAT. In both instances I consider that the Register ought to follow standard practice.

Recommendation 15

51. The rules should make clear that wherever possible salaries and earnings figures are to be registered before any deductions, and that fees received are to be registered before the addition of VAT.

Business appointments of former Ministers

Background

52. Under the Ministerial Code former Ministers are required to seek advice from, and to abide by the advice of, the independent Advisory Committee on Business Appointments (ACoBA) about any appointments or employment they wish to take up within two years of leaving office.7

53. In my review of the Code of Conduct I considered a proposal from the Committee on Standards in Public Life that the Code should be extended to require Members who are former Ministers to follow the advice provided by ACoBA.8 Having consulted ACoBA and the Secretary of the Cabinet I concluded that the Code should not be extended in this way.

54. In considering my conclusion, the Committee on Standards and Privileges noted that this proposal would mean that former Ministers who remained in the House would be subject to a different and more stringent regime than others, which it did not believe would be right. Its view was that the Government should consider bringing forward legislation to make ACoBA’s recommendations binding. It did not believe it was appropriate for the House to take action in respect of former Ministers in relation to its Members alone.9

Issue: Should the registration rules require Members who are former Ministers to record in the Register whether or not they have sought the advice of the Advisory Committee on Business Appointments before taking up outside employment?

7 Cabinet Office, Ministerial Code, May 2010, paragraph 7.25 8 Committee on Standards and Privileges, Nineteenth Report of Session 2010-12, Review of the Code of Conduct, HC 1579, Appendix 9 Committee on Standards and Privileges, Nineteenth Report of Session 2010-12, Review of the Code of Conduct, HC 1579, paragraph 20

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Responses to consultation In its response to the consultation on the Guide to the Rules, the Committee on Standards in Public Life said that the public had a right to expect that former Ministers would abide by the business appointment rules and noted again that it was a potential weakness in the current system that serving Members who did not follow the advice of ACoBA were not subject to any formal compliance procedure.

The Committee on Standards in Public Life suggested that when Members who are former Ministers take on remunerated employment or clients within two years of their return to the backbenches, they should be required to record in the Register of Members’ Financial Interests whether they sought the advice of ACoBA before taking on the appointment.

Discussion

55. I recognise that the Committee on Standards in Public Life feel strongly about this issue. I agree with the Committee on Standards and Privileges that the wider issue of providing sanctions to enforce ACoBA’s decisions is a matter for the Government and not for the Code of Conduct whose principles should apply equally to all Members. But this current proposal from the Committee on Standards in Public Life would not infringe that principle. It would require only an additional item in the Register so that any Member who was a former Minister and who took up employment within two years of leaving Ministerial office would be required to indicate in their Register entry whether (or not) they had sought the advice of ACoBA. I understand that this information is already included in ACoBA’s Annual Report. But a reference in the more frequently published Register might be useful to the public and serve as a reminder to Members of their obligations. It would be a breach of the rules not to provide this information in the Register. But it would not be for the Commissioner or the House to decide whether the former Minister should have consulted ACoBA or whether he or she had followed its advice. That would properly remain a matter for ACoBA and the Government.

Recommendation 16

56. The registration rules should require Members who had ceased to hold Ministerial office in the preceding two years to indicate alongside any employment registration whether or not they had sought the advice of ACoBA in respect of that employment.

Category 2: Donations and other support

Background

57. Members are currently required to register under this category, subject to financial thresholds, any support which they receive for their parliamentary or political activities. Such support may be in money or in kind, for example in the form of the services of staff paid partly or wholly by an outside organisation, or subsidised or free office accommodation. Members are not currently required to register their participation in schemes such as the Armed Forces Parliamentary Scheme or the external placements arranged through by the Industry and Parliament Trust, although they are required to register (subject to the usual thresholds) gifts, benefits and hospitality and overseas visits received during their participation in these programmes.

58. As a result of successive revisions, most recently in order to reflect the requirements of the Political Parties, Elections and Referendums Act 2000, the guidance on registering political support can be difficult to follow. In the draft new Guide I set out the requirements in what I believed to be a more logical format. The draft at Annex 2 builds on this by distinguishing between donations received indirectly via a party organisation and support received from other sources. I have also proposed making provision for Members to register in this category those loans and credit arrangements which are currently registered under Category 10. Very few such registrations have been made.

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Developmental and secondment programmes

Question 11: Should the Guide put beyond doubt that Members are (or are not) required to register developmental activities and training provided in the UK by the British Council, the Armed Forces Parliamentary Scheme, the Police Service Parliamentary Scheme, the NCVO MP Secondment Scheme10, or the Industry and Parliament Trust?

Responses to consultation The Chief Executive of the Industry and Parliament Trust commented that his organisation felt that the current registration arrangements were “...appropriate and proportional to the broader framework of rules surrounding parliamentary expenses.”

The Chairman of the Armed Forces Parliamentary Scheme, who is also Chairman of the Police Service Parliamentary Scheme, acknowledged some confusion about the financial thresholds for registration and said: “I do hope that the new regulations ... will raise the lower figures to at least the £1,000 pa it was under the Electoral Commission or preferably 2% of a Member’s parliamentary pay. This then covered most of our overseas visits and avoided detailed declarations. This figure should also provide for increases”.

The Leader of the House said “I believe there should be no requirement to register such activities, provided that information on the funding of such schemes is publicly available elsewhere.” He suggested that the proviso to not registering routinely the financial sponsors of such programmes should be that the sponsors’ names should appear on the programme’s website, together with the names of the current participants.

Discussion

59. The Guide requires Members to register benefits which they receive in money or in kind and which might be thought by others to influence their parliamentary actions or words. It is not a register of Members’ activities. These named programmes operate with the support of the House. It is not obvious that simple participation in these programmes provides a Member with an identifiable financial benefit. In my view, Members should not, therefore, be required to register the fact of their participation in programmes which are approved by the House authorities. I consider that it would be helpful if the Guide made this clear.

Recommendation 17

60. The Guide should make clear that Members are not required to register the fact that they participate in developmental and secondment programmes which are approved by the parliamentary authorities.

61. While Members are not required to register the fact that they participate in these programmes, they are already required to register any gifts, hospitality or travel which they may receive in the course of such placements, whether from the organisers of the programme or from any public or private sector partner or sponsor. Where a Member has received such a benefit, it is right and consistent—as well as in the interests of transparency—that this should be registered, even if the funding is provided to the scheme, rather than directly to the Member. Sponsors of these schemes are likely to have an interest in the views and opinions of Members and parliamentary proceedings. In order to protect Members, therefore, from any perception that the benefits they receive through these schemes could be seen to influence them, I consider that the requirement to register these benefits should continue.

62. These benefits will require registration under Category 3: Gifts, benefits and hospitality from UK sources; Category 4: Visits outside the UK or Category 5: Gifts and benefits from sources outside the UK. I have proposed minor additions to the Guide in each of these categories in order to make this clear. They should be subject to the same threshold for registration as other benefits in each of the relevant categories.11

Recommendation 18

10 I understand that NCVO does not currently operate a scheme for Members. 11 See the discussion of financial thresholds at paragraph 121ff.

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63. Members should continue to register gifts, benefits, hospitality and visits which they receive through developmental and secondment programmes which are approved by the parliamentary authorities, subject to the normal registration rules.

Support received via local and central party organisations

Question 12: Are the advantages of showing in the Register support received from a constituency party organisation outweighed by the additional complexities involved in registration?

Question 13: Are the advantages of showing in the Register the support which a Member receives via a central party organisation outweighed by the additional complexities involved in registration?

Responses to consultation The Leader of the House saw no need for change in relation to the registration of donations received via a constituency party organisation. In relation to question 13 he said “I accept that there may be a case for registering the receipt of funds via a central party organisation where this is clearly received as a member of Parliament for the execution of their parliamentary duties, in cases where it would not create a requirement for separate registration by more than one Member in identical terms.”

The Electoral Commission noted the risk of over-reporting and under-reporting and said “We welcome the clear references in the new draft Guide to the requirements on Members to report impermissible donations to us, and on parties to check permissibility and register donations with us. It is also helpful that Members are now required to indicate whether or not donations have been reported to us by their party. Taken together, these measures will mitigate the risks connected with overlapping reporting requirements between this category of the Rules and PPERA.

“In principle we would still favour an end to the overlapping reporting requirements in this area. However, we can see that it is helpful in terms of transparency if Members are required to register funding received by their party that is intended to benefit them, or that they have helped to raise. In view of the mitigating factors described above we would not have strong concerns if the current reporting arrangements were to continue.”

In response to these two questions, the Public Standards Commissioner for Scotland said “I consider that the continuing need by a Member to register support ... (which also falls to be declared to the Electoral Commission) amounts to unnecessary duplication of effort.”

Discussion

64. The balance of opinion amongst those who responded was in favour of continuing the current requirements. While recognising the overlap identified by the respondents, I note that the Electoral Commission’s information is collected for a different purpose and does not distinguish from amongst the donations to a Member’s central or local party organisation those donations which are linked specifically to that Member. I consider that in the interests of transparency and to help the reader find in one place these forms of support provided to the individual Member, this provision should remain in the Register.

Recommendation 19

65. Members should continue to include in the Register details of any donations received by their constituency party organisation which are linked directly to them; and of any donations received via their Party’s central organisation which are accompanied with a wish that they be allocated to the support of that Member or his or her office.

Category 3: Gifts, benefits and hospitality (UK)

Background

66. The existing Guide requires Members to register certain gifts, benefits and hospitality received because of their membership of the House or their political activities. But, since the current description of the category

EV 18 Review of the Guide to the Rules relating to the conduct of Members

refers only to gifts made to the Member and their spouse or partner, the Guide does not put beyond doubt that certain gifts to, for example, friends, children and staff must also be registered, although the subsequent guidance in paragraph 40 requires a Member to register benefits received by “another person together with or on behalf of themselves”...

Gifts, benefits and hospitality provided to third parties

Question 14: Should the Guide make clear that the requirement to register gifts, benefits and hospitality given by UK sources to a spouse or partner should also extend in the same way to gifts to third parties, who may or may not be related to the Member, if the benefit is given because of the Member’s membership of the House or that Member’s political activity?

Responses to consultation The Leader of the House said “I believe that any such requirement should be clearly stated as applying only where the Member is aware of [the link to his or her] membership of the House or political activities.”

The Public Standards Commissioner for Scotland commented “No—I consider that this could be argued as being disproportionate as well as being problematic in relation to proving the relevant connection.”

Transparency International commented “Several questions relate to the extension of registers of interest to third parties, including children, siblings and close associates. The presumption should be that such categories of person are included within the rules, just as such a presumption is made when dealing with ‘politically-exposed persons’ overseas in, for example, anti-money laundering regulations.”

Discussion

67. A Member cannot easily find the answer in the current Guide if he or she wishes to know whether to register a gift which was given to someone else on account of his or her membership of the House or political activities. This requires clarification.

68. I consider that if a third party received benefits such as hospitality or gifts which were given because of a Member’s membership of the House or political activities, others might reasonably think that these benefits had the potential to influence the Member’s parliamentary behaviour. For this reason I believe that registration should be required, whether or not the Member received the same benefit at the same time. I agree with Sir George Young however that this should be limited to instances where the Member is aware of that link to his or her membership of the House or political activities—or, in my view, could reasonably be expected to be so aware. And I do not consider that this requirement should apply to benefits given to companies controlled by third parties such as the Member’s staff, friends or children since this would be too convoluted an interest and it is unlikely that it could reasonably be considered to influence the Member’s conduct.

Recommendation 20

69. A Member should be required to register any gift, benefit or hospitality from UK sources which is given to any third party, either alone or alongside benefits for him or her, only if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it was given because of his or her membership of the House or political activities.

Category 4: Visits outside the UK

Background

70. The existing Guide requires Members to register certain visits outside the UK which are paid for by others. It does not explicitly include visits relating to political activities. This information is however required by the

Review of the Guide to the Rules relating to the conduct of Members EV 19

Electoral Commission, which draws from the Register the information it requires about donations to Members, and my office would advise Members, if asked, that these should be included.

71. Similarly, my office would also advise, if asked, that visits by third parties (such as an assistant accompanying a Member) should also be registered if they were funded because of that Member’s membership of the House or that Member’s political activities.

Visits relating to political activities, and visits by third parties

Question 15: Should Members be required to register under proposed new Category 4: Visits outside the UK visits relating to their political activity as well as those relating to their membership of the House, in the same way as they register gifts, benefits and hospitality received in the UK in support of their political activity?

Question 16: Should the Guide make clear that the requirement to register visits outside the UK by a spouse or partner should also extend in the same way to visits undertaken by third parties, who may or may not be related to the Member, if the visit is funded because of that Member’s membership of the House or that Member’s political activity?

Responses to consultation The Leader of the House agreed with the proposal at question 15. So did the Electoral Commission and the Public Standards Commissioner for Scotland.

In relation to question 16, the Leader of the House said “I believe that any such requirement should be clearly stated as applying only where the Member is aware of the link to a Member’s membership of the House or political activities.” The Public Standards Commissioner for Scotland considered that this proposal could be disproportionate.

Transparency International however commented “Several questions relate to the extension of registers of interest to third parties, including children, siblings and close associates. The presumption should be that such categories of person are included within the rules, just as such a presumption is made when dealing with ‘politically-exposed persons’ overseas in, for example, anti- money laundering regulations.”

Discussion

72. I think it is important that the Guide puts beyond doubt that Members are required to register visits relating to their political activities, as these visits could on occasion reasonably be thought by others to influence their conduct. Moreover, a Member’s parliamentary and political activities are often intertwined, for example in a visit undertaken as a front bench spokesperson in relation to a matter before the House.

73. As I have explained above, I believe that if third parties benefit from, for example, tickets, hospitality or gifts which were given because of a Member’s membership of the House or political activities, these should be registered by that Member. For the same reason I consider that Members should register overseas visits provided for third parties because of that Member’s membership of the House or political activities, whether or not the Member took part in the visit themselves. Such visits might reasonably be thought by others to influence his or her actions or words as a Member of Parliament. I agree with Sir George Young that this should be limited to instances where the Member is aware—or, I suggest, could reasonably be expected to be aware—that the visit was provided because of his or her membership of the House or political activities.

Recommendations 21 and 22

74. The Guide should require Members to register under Category 4: Visits outside the UK visits which relate to or arise out of their political activities, as well as those which relate to or arise out of their membership of the House.

75. The Guide should require a Member to register under Category 4: Visits outside the UK any visit provided for third parties, whether or not alongside benefits for the Member. Such registration should be required only if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it was given because of his or her membership of the House or political activities.

EV 20 Review of the Guide to the Rules relating to the conduct of Members

Category 5: Gifts and benefits from sources outside the UK

Background

76. The existing Guide requires Members to register certain benefits from sources outside the UK if these in any way relate to membership of the House. The financial limits and guidelines which apply are generally the same as those which apply in relation to Category 3: Gifts, benefits and hospitality from UK sources.12 There is however one exception. A Member must currently register a benefit which in any way relates to his or her political activity if it comes from a UK source, but there is no such requirement if it comes from an overseas source.

77. I have suggested above, under Category 3: Gifts, benefits and hospitality from UK sources, a change to those rules in order to put beyond doubt that such benefits given to third parties must be registered if they are given because of the Member’s membership of the House or political activities. The question is whether a similar provision is needed for benefits from sources outside the UK.

78. Because of the sensitivity which attaches to interests arising outside the UK, Members are currently required to include in this section a short note drawing attention to any employment payments from sources outside the UK, although those payments would be registered under the employment categories.

Gifts and benefits relating to political activity

Question 17: Should Members be required under proposed new Category 5: Gifts and benefits from sources outside the UK, to register benefits relating to political activity as well as those relating to their membership of the House, as already required under the existing rules for gifts, benefits and hospitality within the UK?

Responses to consultation The Leader of the House said “I accept that there is a logic behind this proposed change.” The Public Standards Commissioner for Scotland commented “No – I consider that this could be argued as being disproportionate.”

Discussion

79. It is in my view inconsistent that Members are required to register gifts, benefits and hospitality from UK sources if these arise out of or are linked to their political activities, but not any such gifts or benefits from sources outside the UK. I recommend that this anomaly is ended.

Recommendation 23

80. Members should be required to register gifts and benefits from sources outside the UK which relate to their political activities.

Gifts and benefits provided to third parties

Question 18: Should the Guide make clear that the requirement to register gifts, benefits and hospitality from sources outside the UK to a spouse or partner should also extend in the same way to gifts to third parties, who may or may not be related to the Member, if the benefit is given because of that Member’s membership of the House or that Member’s political activity?

Responses to consultation The Leader of the House said “...any such requirement should be clearly stated as applying only where the Member is aware of [the link to his or her] membership of the House or political

12 Hospitality overseas, however, normally requires registration Category 4: Visits outside the UK.

Review of the Guide to the Rules relating to the conduct of Members EV 21

activity.”

The Public Standards Commissioner for Scotland commented “No – I consider that this could be argued as being disproportionate as well as being problematic in relation to proving the relevant connection.”

Discussion

81. It would be logical—and right—to bring the rules in relation to gifts and benefits from sources outside the UK into line with those for gifts and benefits from UK sources. For the reasons I have explained under Category 3 above, I believe that certain benefits provided to third parties should also be registered if they are provided because of the Member’s membership of the House or political activities, and the Member is aware—or could reasonably be expected to be aware—of this.

Recommendation 24

82. A Member should be required to register any gift or benefit from sources outside the UK which is given to any third party, either alone or alongside benefits for him or her. Such registration should be required only if the Member is aware, or could reasonably be expected to be aware, of the benefit and that it was given because of his or her membership of the House or political activities.

Employment benefits from outside the UK

Question 19: Should Members in future continue to include in this section a short note drawing attention to any employment payments from sources outside the UK?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland both agreed that such a note should be unnecessary.

Discussion

83. I agree with the respondents. The details of employment payments from sources outside the UK will continue, as now, to be recorded under the heading of employment. I see no need to make a cross reference in this Category.

Recommendation 25

84. Members should no longer be required to include in this section a note drawing attention to any employment payments from sources outside the UK.

Category 6: Land and property

Background

85. Under this category Members must register any land or property which they own either by themselves or jointly with a spouse or partner if its value is more than the parliamentary salary (currently £66,000),13 or if it

13 Land or property whose value is below the registrable threshold must be registered if it is part of a total property portfolio whose value exceeds the registrable threshold. Land or property used for the personal residential purposes

EV 22 Review of the Guide to the Rules relating to the conduct of Members

gives a rental income of more than 10% of the parliamentary salary (currently £6,600) in a year.14 But since this Category is not subdivided, it is not always clear when a registered property generates rental income.

86. The guidance in this category is brief. It is not specific about whether Members should register properties outside the UK. And it does not require Members to give dates. This could be regarded as inconsistent with the requirements to register the dates when interests under Categories 1 to 5 became registrable.

Land and property outside the UK

Question 20: Should the Guide in future explicitly require Members to register property outside the UK as well as property held in the UK?

Responses to consultation The Leader of the House, the Public Standards Commissioner for Scotland and Transparency International all agreed that this requirement should be included in the future rules.

Discussion

87. I agree that including in the Guide a specific requirement to register land and property outside the UK would put the matter beyond doubt. It is the holding of the land and property that counts, not its location.

Recommendation 26

88. The Guide should explicitly require Members to register land and property both within and outside the UK.

Rental income

Question 21: Should entries under this Category in future be subdivided in the Register in order to show whether a property was registered because of its value or because of the income derived from it?

Responses to consultation The Leader of the House said “It is not evident to me what relevance this distinction has and therefore what the value would be of subdividing the Register in this way.” The Public Standards Commissioner for Scotland was in favour of this subdivision.

Discussion

89. I agree with Sir George Young that there is likely to be little value in further distinguishing land or property rented out from other registrable holdings. But Members should continue to identify in their Register entry the fact that rental income is received from the land or property.

90. The current Guide is silent on whether Members should register rental income from registrable properties if it is paid to other people or organisations. I consider that it would be helpful if this were clarified. It would be right for Members to record in such cases that rental income is received. A Member should not be able to avoid the registration requirements by diverting payments to another party.

Recommendation 27

91. No change should be made to the Guide in order to require Members to register in a separate subcategory, or otherwise to distinguish from their other registrable holdings, the land or property from

of the Member or their spouse, partner and dependent children does not however require registration unless it provides a registrable income. 14 Either alone or as part of the Member’s total property portfolio.

Review of the Guide to the Rules relating to the conduct of Members EV 23

which they derive rental income. But where rental income is received from a property, that should be stated in the Register entry, including in cases where that income is paid to another person or organisation.

Dates of acquiring and disposing of land and property

Question 22: Should the Guide in future ask Members to register the dates when they acquired or disposed of land or property registered under proposed new Category 6, and when they became and ceased to be of registrable value?

Responses to consultation The Leader of the House said “I am not sure that it will always be clear when a property became of registrable value. Any requirement for such dates should only apply in respect of acquisitions and disposals after the date of the changes and should not have retrospective effect.” The Public Standards Commissioner for Scotland favoured including such dates in the Register as “the dates of acquisition or disposal are material factors in dealing with alleged breaches of the Rules.”

Discussion

92. Given the requirement—which I support—to register land or property worth more than the relevant financial threshold (currently £66,000), I consider it is reasonable for a Member who has such land or property close to the threshold periodically to check whether market values have affected their registration. I recognise that this may require the Member from time to time to seek some expert advice—but it need not be detailed or extensive. In these circumstances it would be reasonable to expect the Member to reflect any new valuation in their Register entry within four weeks of having received it, and to provide the date of the valuation in their Register entry.

93. I recognise and accept Sir George Young’s point that this provision should not have effect in relation to the acquisition of any land or property which became registrable before any commencement date agreed by the House for the new provisions.

Recommendation 28

94. A Member who makes a registration under Category 6: Land and property should be required to register the date on which the land or property was acquired or, in the case of land or property already held, the date on which the Member believes it achieved registrable value. As with other provisions, this should not have retrospective effect.

Category 7: Shareholdings

Background

95. Under this heading Members must register shares and holdings in partnerships if they hold more than 15% of an entity’s issued share capital or if their holding has a value of more than the parliamentary salary on the previous 5 April. The information required of Members under this category, like that required under the category for land and property, does not include the dates when holdings became or ceased to be registrable. This could be regarded as inconsistent with the requirements to register dates when interests under Categories 1 to 5 became registrable.

Dates of acquiring and disposing of shareholdings

Question 23: Should the Guide in future ask Members to register the dates when they acquired or disposed of holdings in proposed new Category 7, and when they became and ceased to be of registrable value?

EV 24 Review of the Guide to the Rules relating to the conduct of Members

Responses to consultation The Leader of the House said that the difficulties which would attach to a requirement to give dates under the category for land and property would also apply with added force to shareholdings, as their value can fluctuate significantly. He also added that any such requirement (if agreed) should only apply to acquisitions and disposals after the date of the changes and should not have retrospective effect.

On the other hand, the Public Standards Commissioner for Scotland said that he would favour including such dates in the Register as “the dates of acquisition or disposal are material factors in dealing with alleged breaches of the Rules.”

Discussion

96. I recognise that share prices can fluctuate significantly, but I do not believe that this should be a bar to recording the dates when Members bought or sold shares above the registrable threshold, or when shares already held became registrable. There should be no difficulty in identifying the value of most shares on the date on which they were acquired or sold; and it would be good practice and consistent with other categories in the Register for that date to be included in the Register entry. The current rules already provide that for the purposes of the Register, shares already held should be valued as at the previous 5 April, thus avoiding the difficulties of assigning values to shares in a fluctuating market. Members with shareholdings, particularly if they are close to the registration threshold, should check the value of their holdings shortly after 5 April each year. It would be in the interests of transparency and simplicity if the date of that valuation were recorded in the Register since not all readers should be expected to be experts on the details of the rules.

97. I recognise and accept Sir George Young’s point that this provision should not have effect in relation to any acquisition of shareholdings which became registrable before any commencement date agreed by the House for the new provisions.

Recommendation 29

98. A Member who makes a registration under Category 7: Shareholdings, should be required to register the date on which the shares were acquired or, for shares already held, the date on which they achieved registrable value, and the date on which they were sold or ceased to be of registrable value. As with other provisions, this should not have retrospective effect.

Category 8: Miscellaneous

Background

99. Under this category Members are required to register financial interests which do not obviously fall within any of the other categories, but which they nevertheless consider to be relevant to the Register’s purpose, which is to provide information about any financial interest or other material benefit which a Member receives which might reasonably be thought by others to influence his or her actions or words as a Member. In the past this category has been used to register shareholdings below the registrable thresholds and funds set up to defray legal expenses, but from which no benefit has yet been received. The category also allows—but does not require—Members to register non-financial interests—such as unremunerated directorships or unpaid employment—which Members consider might be thought by others to influence their actions in the same way as remunerated interests.

Unremunerated positions and holdings below the registrable thresholds

Question 24: Should the Guide continue to provide the opportunity for Members, if they wish, to register unremunerated directorships or employment, or shareholdings below the registrable thresholds?

Responses to consultation The Leader of the House said that he favoured the continuation of current guidance which

Review of the Guide to the Rules relating to the conduct of Members EV 25

discourages but does not prohibit this. The Public Standards Commissioner for Scotland disagreed, saying that Members should simply be reminded of the continuing need to consider such categories under the rules on declaration of interests.

Discussion

100. The purpose of the Register is to record Members’ relevant financial interests. Members who have relevant financial interests which do not fall clearly into another category are already required to register them under the miscellaneous category. The present provision also enables a Member to register under this category any non-financial interest if he or she considers it satisfies the test of relevance—that is, it might reasonably be thought by others to influence his or her actions or words as a Member in the same way as a financial interest. But to require Members to register all non-financial interests such as unremunerated employment, instead of permitting them to do so as at present, would amount to a fundamental change to the scope and purpose of the Register which I do not believe to be justified.

Recommendation 30

101. The Guide should continue to provide the opportunity for Members to register non-financial interests including unremunerated directorships or employment if they consider that these satisfy the test of relevance—without requiring Members to register all non-financial interests.

Other assets

Question 25: Should the Guide in future provide the opportunity for Members, if they wish, to register in this category assets other than land, property and shareholdings?

Responses to consultation The Leader of the House said that he considered it important for Members to be able to register financial instruments other than shares. He added that in other instances the possibility of declaration should suffice. The Public Standards Commissioner for Scotland said that Members should be reminded of the need to consider such categories under the declaration rules.

Discussion

102. It is a fundamental principle of the Register that it is not a register of wealth. Members are therefore not presently required to register assets other than land, property and shareholdings, although they are encouraged to consider other assets for registration and declaration, if these might reasonably be thought by others to influence his or her actions or words as a Member. Members are also encouraged to register in this category shares which fall below the registrable threshold, if these meet the same test of relevance.

103. I agree with the responses I have received on this point that these arrangements should suffice; there is no need to extend the registration requirements to require registration of other classes of asset.

104. I agree with Sir George Young that a Member should be encouraged to register financial assets other than shares, if these interests satisfy the test of relevance; that is if they might reasonably be thought by others to influence his or her actions or words as a Member. Bonds or loans, for example, might be so considered. I consider that these might best be registered in the Miscellaneous category.

Recommendations 31 and 32

105. Members should not be required to register classes of assets other than land, property and shareholdings.

106. The Guide should be amended to encourage Members to register under Category 8: Miscellaneous, other financial assets which meet the test of relevance.

EV 26 Review of the Guide to the Rules relating to the conduct of Members

Indirect interests

Question 26: Should the Guide encourage Members who may have to declare indirect interests to register them in this category?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland both agreed that declaration should be sufficient.

Discussion

107. I agree that Members should not be required to register indirect interests such as the interests of their partner or other family members, although these may need to be declared where relevant .15

Recommendation 33

108. The Guide should not require or encourage Members to register indirect interests.

Donations to charity

Question 27: Should the Guide make no reference to the current advice that Members should register donations to charity which they have solicited, thus rescinding that advice?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland both considered that the advice should be rescinded.

Discussion

109. I agree. Few Members have registered donations to charity and since I do not believe that soliciting a donation for charity amounts in every case to an interest which requires registration, I agree that it should not be singled out as an example of a registrable action. It would of course remain open to a Member to make a Register entry if they considered that it would reasonably be thought by others to influence their actions or words as a Member. And the requirement for declaration would still apply.

Recommendation 34

110. Members should not be specifically encouraged under Category 8 to register donations to charity which they have solicited.

Dates when interests arose or ended

Question 28: Should the Guide require Members to give the dates when their interests in this category arose, became registrable or ended?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland both supported this requirement in principle. The Leader said that it should only apply to interests which were acquired or became registrable after the date of the changes.

Discussion

15 See paragraphs 141-143 below, and Chapter 2 of the Guide. Family members are those listed under Category 9 of the Register.

Review of the Guide to the Rules relating to the conduct of Members EV 27

111. I agree that it is right in principle that the date when any registrable interest arose should be included in Register entries under this Category. I agree with Sir George Young that this information should not be required in respect of interests which became registrable before any commencement date agreed by the House for the new provisions.

Recommendation 35

112. Members who register an interest under this Category in future should be required to provide the date when that interest arose or became registrable.

Category 9: Family members employed

Background

113. Members are currently required under this category to register the names and job titles of family members whom they employ and pay from parliamentary expenses together with information about the familial relationship. Registration is required for any family member employed and paid more than 1% of the parliamentary salary (£660 in 2012-13). This information is published as Part 2 of the Register. In addition the Independent Parliamentary Standards Authority (IPSA) publishes each year the names of those Members who employ “connected parties”, with the names of those staff and their salaries in £5,000 bands. The definition of “connected parties” is wider than family members, as it also includes bodies corporate and trusts with which the Member is connected. There is nevertheless considerable overlap between the two sets of information.

Information about family members employed

Question 29: Should Members continue to be required to register information about family members employed as well as reporting these to IPSA?

Responses to consultation The Leader of the House, the Public Standards Commissioner for Scotland and Transparency International all favoured keeping this requirement. The Leader and the Commissioner both noted the degree of public interest in this category, and the Public Standards Commissioner for Scotland commented that only annualised data was available elsewhere.

Discussion

114. I accept respondents’ views that this information should be retained in the Register in recognition of the public interest in it and in the interests of transparency. I consider it would avoid confusion and assist Members in making the registration if the definition of “family member” in the Register were made the same as that used by IPSA. The IPSA definition of family members is already very similar to that used by the House, and the only effective difference would be to require a Member in future to make a registration if he or she employed a grandparent of his or her spouse or partner.

115. I do not consider that there are sufficient grounds to extend the registration requirement to the other “connected parties” in the IPSA definition—namely a body corporate, or a firm or a trust with which a Member is connected as defined in section 252 of the Companies Act 2006.

Recommendation 36

116. The Guide should in future require Members to register details of any family members whom they employ including a spouse, civil partner or cohabiting partner of the Member and the parent, child, grandparent, grandchild, sibling, uncle, aunt, nephew or niece of the Member or of a spouse, civil partner or cohabiting partner of the Member.

EV 28 Review of the Guide to the Rules relating to the conduct of Members

Category 10: Family members involved in lobbying

Background

117. In my consultation paper I asked whether the lobbying rule required any further amendments. The Committee on Standards in Public Life responded that in their view that there remained a question about whether Members were able to speak on matters informed by their outside financial interests with sufficient transparency to enable the public to know about their interests and to assess their contributions accordingly. In addition to supporting the proposal to extend the restrictions on lobbying to former Members, the Committee suggested including within the Register details of Members’ close relatives who were lobbyists.

Issue: whether Members should be required to register details of any of their family members involved in lobbying.

Responses to consultation The Committee on Standards in Public Life suggested that, in the interests of transparency, Members be required to record in their individual entry on the Register if any of their close relatives were involved in lobbying, and who their clients were.

Discussion

118. I recognise the particular concern of the Committee on Standards in Public Life about identifying the activities of those who lobby the public sector (public sector lobbyists) who may be related to a Member of Parliament. The Member’s relationship to a lobbyist may in certain instances be declarable in debate or otherwise where it is relevant to the matter under discussion. But there is nowhere at present where people can see a Member’s personal connection to such a lobbyist. In view of the public concern about the role and possible influence of lobbyists, I accept that it would be in the public interest—and in the interest of Members—to have these connections registered and transparent. The particular nature and public sensitivity of the work of the public sector lobbyist in my view justifies their registration in a way which does not extend to other activities by a Member’s family.

119. Accordingly, I propose that Members should be required to record in the Register the name and position of any of their family members involved in lobbying the public sector and who their clients are. To ensure that this requirement is proportionate, I recommend that a tight definition of lobbying is used along the lines of that proposed by the Government in their proposals for a statutory register of lobbyists.16 This would require the family member to be involved in lobbying activity on behalf of another person or client, rather than lobbying for their own interests, or those of their direct employer. Lobbying activities would include attempting to influence, or advise those who wish to influence, the UK Government, Parliament, devolved legislatures or administrations, regional or local government or other public bodies on any matter within their competence. The definition of family member should, as a matter of consistency, be the same as elsewhere in the Register, but Members would only be required to register the family member if they were aware or could reasonably be expected to be aware that the family member was a lobbyist.17

Recommendation 37

120. A Member should be required to register details of any of their family members involved in public sector lobbying, and who their clients are, if he or she is aware, or could reasonably be expected to be aware, of this involvement.

Financial thresholds

Background

16 HM Government, Introducing a statutory register of lobbyists, Cm 8233, January 2012 17 Family members are those listed under Category 9 of the Register.

Review of the Guide to the Rules relating to the conduct of Members EV 29

121. Members are required to register payments or benefits above certain levels (the financial thresholds). The financial thresholds vary according to the category of registration, and it is hard to justify some of the differences between categories. For example, Members must now register all employment payments of over 0.1% of the parliamentary salary (£66). Payments of less than this threshold also require registration once the Member has received over 1% of the parliamentary salary (£660) from the same source in a calendar year. On the other hand, visits, gifts, benefits and hospitality are only registrable when the benefit received exceeds 1% of the parliamentary salary (£660). So payment in return for work done is registrable above £66, while a gift or gifts (in return for no work done) is only registrable above £660. And sponsorships or donations in support of activities as a Member of Parliament are only registrable if they exceed £1,500, in individual payments of over £500. These differences—in levels and in presentation—seem to have arisen less from a principled appraisal of each form of benefit than from the consideration of each category separately at different periods of time and in response to different pressures and expectations. This review of the Guide provides an opportunity to revisit the thresholds and the way they are presented, at the same time.

Question 30: Is the cumulative threshold of £660 for registration of employment in proposed new Category 1 still necessary?

Question 31: Should there be a single threshold for new Categories 2, 3, 4 and 5 (donations and other support for activities as an MP; gifts, benefits and hospitality from UK sources; visits outside the UK, and gifts and benefits from sources outside the UK)? If so, what should it be?

Responses to consultation The Leader of the House, the Public Standards Commissioner for Scotland and Transparency International all favoured keeping the separate cumulative threshold in Category 1. The Leader commented that the differences between the different categories might justify the continuation of different thresholds. On the other hand, the Public Standards Commissioner for Scotland supported the proposal for a single threshold across categories 2, 3, 4 and 5.

Discussion

122. Having carefully considered the nature of each category against the need for consistency and simplicity, I consider that there will be a continued need for differentiation between the thresholds for the different categories: otherwise some would be too high and others too low. I consider also that the thresholds should be expressed as a cash sum in all cases, in preference to the current mix of cash and percentages. The threshold levels are not so sensitive that they need to move every time Members’ salaries change. And a cash figure is in my view much clearer and easier to understand. The levels can be reviewed when the Guide is updated, broadly once in each Parliament.

123. I therefore propose the following levels:

Category Current threshold Proposed new threshold

Category 1: Employment and Over 0.1% of parliamentary Over £100 for individual Earnings salary (currently £66) for payments individual payments Over £300 for the total of Over 1% of parliamentary salary multiple payments of whatever (currently £660) for the total of size from the same source in a payments of whatever size from calendar year the same source in the course of a calendar year

Category 2: Donations and Over £1,500, either as individual No change other support for activities as a payment, or for the total of Member of Parliament multiple donations of more than £500 from the same source in the course of a calendar year

Category 3: Gifts, benefits and Over 1% of parliamentary salary Over £300 for the total of hospitality from UK sources (currently £660) for the total of benefits of whatever size from benefits of whatever size from the same source in a calendar

EV 30 Review of the Guide to the Rules relating to the conduct of Members

the same source in the course of a year calendar year

Category 4: Visits outside the Over 1% of parliamentary salary Over £300 if not wholly borne by UK (currently £660) if not wholly Member or public funds. borne by Member or public Threshold also applies to the total funds. of benefits of whatever size from Threshold also applies to the total the same source in a calendar of benefits of whatever size from year the same source in the course of a calendar year

Category 5: Gifts and benefits Over 1% of parliamentary salary Over £300 for the total of from sources outside the UK (currently £660) for the total of benefits of whatever size from benefits of whatever size from the same source in a calendar the same source in the course of a year calendar year

Category 6: Land and Property Total value of property held: over Total value of property held: over parliamentary salary (currently £100,000. £66,000). Total income derived from Total income derived from property: over £10,000. property held: over 10% of parliamentary salary (currently £6,600).

Category 7: Shareholdings Greater than 15% of issued share Greater than 15% of issued share capital (on preceding 5 April), or capital (on preceding 5 April), or If 15% or less of issued share If 15% or less of issued share capital (on preceding 5 April), capital (on preceding 5 April), greater in value than greater in value than £70,000 parliamentary salary (£66,000)

Category 8: Miscellaneous No threshold given No change

Category 9: Family members Remuneration of over 1% of Remuneration of over £700 in a employed parliamentary salary (currently calendar year £660) in the calendar year

Category 10: Family members No threshold engaged in lobbying

124. I agree that it is worthwhile to retain the cumulative threshold for payments in the employment category. I propose that this should be the same as the threshold which I propose in the categories for gifts, benefits and hospitality and visits outside the UK: over £300. This would require a Member who receives a series of employment payments, which included some below the threshold for individual payments, to register those payments when the total value of all payments from the same source in the calendar year exceeds £300, rather than (as now) when it exceeds £660. This avoids any problem of deciding if some comparatively small benefits are payments for services or gifts.

125. I consider however that the threshold for registration of individual payments in the employment category is too low at its present level of over £66 when compared to, for example, the thresholds for gifts, benefits and hospitality (currently £660). I recommend an increase of the threshold for employment payments to over £100. This would mean that a Member who receives a payment of £100 or less would not normally need to register this, unless—as described in the previous paragraph – he or she received from the same source payments with a total value of over £300 in the calendar year.

126. I propose that the thresholds for registering gifts, hospitality and visits in Category 3, 4 and 5 should be reduced from their present level of over £660 to over £300. The lower threshold would mean that a Member who receives a series of small benefits, such as modest hospitality from a company in his or her constituency, would in future have to register it once he or she had received from that company benefits with a total value of

Review of the Guide to the Rules relating to the conduct of Members EV 31

over £300 in a calendar year. At present these would only require registration once he or she had received benefits with a total value of over £660 from the same source in the calendar year. I consider the current threshold is too high—both of itself and in comparison to the threshold for employment. Any gift or hospitality singularly or cumulatively worth more than £300 is in my view much more than a token and should be registered. It is arguable that even this level is too high compared for example to the rules for Ministers and for other jurisdictions. But a balance has to be struck between having too high a threshold, allowing significant payments to escape registration, and too low a threshold, obscuring the principal purpose of the Register with a host of entries whose level might not be thought to have the potential to influence a Member. I have proposed halving the gifts, benefits and hospitality threshold—at least for now. This should be reviewed, and subject to experience of how it is working, consideration might be given to reducing it further.

127. The thresholds for registering land and property under Category 7 would also require translation into cash figures. At present land and property does not require registration unless it has a value of more than the parliamentary salary (currently £66,000) or yields a rental income of more than 10% of that salary (currently £6,600). While I have not received any evidence in favour of changing these thresholds, £66,000 seems low in comparison to average property prices in the UK. I propose a modest uprating to over £100,000 and over £10,000 for rental income, which would preserve the same proportionate relationship between the two thresholds.

128. I propose that the threshold for registering shareholdings under Category 8, which was also over £66,000, should be rounded up slightly to over £70,000. A Member who holds 15% or less of an entity’s shareholding would then be required to register that holding if its value exceeded £70,000.

129. I have also not received any evidence in favour of changing the threshold for registering family members employed under Category 9. I therefore propose that the existing threshold of over £660 should be rounded up slightly to over £700. Members would then have to register the names of any family members whom they employed and paid from parliamentary expenses if they earned more than £700 in a calendar year.

130. I consider that turning the thresholds into simple cash figures and aligning them as I have suggested will make the task of registration easier to explain and to understand, and will provide a better balance between the categories and a better reflection of the purpose of the Register.

Recommendations 38 to 43

131. The financial threshold for the registration of individual payments within Category 1: Employment and earnings should be more than £100, and for the total of multiple payments of whatever size from the same source in the course of a calendar year, more than £300.

132. There should be no change to the financial threshold which applies within Category 2: Donations and other support for activities as a Member of Parliament, and which is a statutory requirement. It should remain at more than £1,500, either as a single donation or as multiple donations of more than £500 from the same source.

133. The financial threshold for the registration of benefits within Category 3: Gifts, benefits and hospitality from UK sources; Category 4: Visits outside the UK and Category 5: Gifts and benefits from sources outside the UK, should be more than £300 received in one or more donations of whatever size from a single source in the calendar year.

134. The financial thresholds which apply under Category 7: Land and property should be more than £100,000 for the value of the property and more than £10,000 for the value of the rental in a calendar year.

135. The financial thresholds which apply under Category 8: Shareholdings should be more than 15% of the issued share capital (or equivalent) or, for lesser holdings, a value of more than £70,000 on the preceding 5 April.

136. Under Category 9: Family members employed, Members should register the names of any family members who earn more than £700 in a calendar year, paid from parliamentary expenses.

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5 Declaration of Interests

Introduction

137. Members are required to declare, during debate and on other relevant occasions, any financial interests which might reasonably be thought by others to influence their actions or words as a Member. The existing Guide provides advice on this requirement. The Code of Conduct agreed by the House on 12 March 2012 makes clear that it applies not only in parliamentary proceedings and in communications with Ministers and other Members, but also in any communications with public officials and public office holders.18 In the draft new chapter of the Guide I have updated the existing guidance to take account of the text of the new Code and of other developments, and to make it easier for the reader to follow. I consider below the responses I received to the questions in my consultation paper.

Non-financial interests

Background

138. The current Guide makes clear that the interests which Members must consider for declaration go wider than those which are in the Register and may include, for example, interests not yet registered, future interests and indirect interests. It does not however explain the term ‘indirect interests’.

Question 32: Should the Guide continue to permit Members to declare non-financial interests without requiring them to do so – or should it require them to declare non-financial interests which satisfy the test of relevance?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland agreed that Members should not be required to declare non-financial interests. Transparency International however suggested that non-financial interests and relationships can be “as important as direct financial interests in influencing behaviour”.

Discussion

139. While I recognise Transparency International’s general point, I do not think that it follows that financial and non-financial interests should necessarily be treated in the same way. In my view, in relation to Members of Parliament, financial interests are of a different order to other forms of interest. Financial interests need to be declared if they fall into the categories agreed by the House. It should be a matter for the Member to judge whether exceptionally he or she considers that some non-financial interest meets the test of relevance; that is, it might reasonably be thought by others to influence his or her actions or words as a Member. If the Member thinks the non-financial interest is as important as a direct financial interest in meeting the relevance test, it should be declared: if not, it should not be. Non-financial interests are less direct and more amorphous than a financial interest and should not be subject to the same rigorous requirements of the declaration rules.

Recommendation 44

140. Members should not be required to declare non-financial interests, but should be encouraged to declare such interests where relevant.

Indirect interests

Question 33: Should the Guide explain that the indirect interests which should be declared are those where the Member’s spouse, partner or relative (rather than the Member) has a financial

18 The Code of Conduct together with The Guide to the Rules relating to the conduct of Members 2012, HC 1885

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interest which satisfies the test of relevance as it relates to the Member?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland agreed that this would be helpful. Transparency International commented in general terms that the presumption should be that third parties including children, siblings and close associates should be included within the rules.

Discussion

141. I agree with the respondents that some clarification of this provision would be helpful. Where Members are aware, or could reasonably be expected to be aware, of a financial interest of a family member, it should be declared if it satisfies the test of relevance; that is, if it might reasonably be thought by others to influence their conduct in any particular debate or other discussion. The presumption should be that the requirement would apply in relation to a family member as defined under Category 9 of the Register. A Member who is unaware of those financial interests could not reasonably be thought to be influenced by them.

142. It is also important to make clear what information a Member is expected to declare about indirect interests, so that unnecessary personal information about others is not disclosed. I consider that it would be helpful if the new Guide included the current advice that the person holding the indirect interest need not be identified.

Recommendation 45

143. The Guide should be revised in order to require a Member to declare financial interests held by a family member as defined for Category 9 of the Register, if that interest meets the test of relevance, and if the Member is aware, or could reasonably be expected to be aware, of that interest. The name of the family member, and their relationship to the Member, need not be disclosed.

Function rooms

Question 34: Would there be advantage in requiring Members to declare interests when booking rooms other than the private dining rooms for functions on the parliamentary estate?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland both said that this could be disproportionate.

Discussion

144. I accept that it would be disproportionate to apply a declaration requirement every time a room is booked for a meeting. I believe that the requirement should however apply to booking a room for a function where hospitality including food and drink is provided. I find it hard to see a distinction in principle between booking a function in a private dining room, which would require a declaration if the Member had a relevant interest in the organisation concerned, and booking a similar function in a conference room or meeting room, when no such declaration is at present required. The requirement for declaring an interest should depend on the nature of the occasion and not on which type of room a Member has booked—or indeed on whether the hospitality is provided sitting round a dining table or standing up at a reception.

Recommendation 46

145. Members should be required to declare a relevant interest when booking any room for a function in the Palace of Westminster, and to declare that interest in inviting guests to the function in the same way as they are required now to do only for private dining rooms. For this purpose a function is where food and drink is provided: a declaration should not be necessary when booking a room simply for a meeting or presentation.

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6 Lobbying for Reward or Consideration

Introduction

146. This chapter of the Guide to the Rules sets out the provisions governing lobbying by Members. The lobbying provisions have developed following successive amendments to the Resolutions of the House reflecting previous reviews. The consultation paper posed a number of questions intended either to clarify or in some respects to tighten the operation of the lobbying rule. I consider below the responses I received to these.

Lobbying following foreign hospitality and visits outside the UK

Background

147. The existing Guide to the Rules includes two references to the application of the lobbying rule to overseas visits and foreign hospitality.

148. In one section the Guide describes the circumstances in which hospitality from foreign governments is subject to the rule as follows:

“...there is a point at which promoting the interests, of e.g. a foreign Government from which hospitality has been received, crosses the line between informed comment and lobbying. Members may not, for example, advocate in debate increased United Kingdom financial assistance to a Government from which they have recently received hospitality. Nor may a Member advocate any other measure for the exclusive benefit of the host Government.”19

149. Another paragraph of the Guide, however, states that: “Although ... overseas visits must be registered and declared, such visits shall not be taken into account when applying the rule.”20

150. These references to visits outside the UK were recommended by the then Committee on Standards and Privileges first in 2000 and again in 2001.21 The Committee recommended that the fuller guidance should be followed in future while at the same time recommending introducing the briefer reference. Read by itself that reference could be interpreted as incompatible with the fuller guidance since it might suggest that the restrictions of the lobbying rule do not apply in respect of a funded overseas visit undertaken by a Member.

Question 35: Do respondents agree that the fuller guidance on foreign hospitality and visits outside the UK should be retained in the Guide?

Responses to consultation The Public Standards Commissioner for Scotland and Transparency International UK supported the retention of the fuller guidance. In the view of Transparency International UK this was an area open to abuse and therefore high levels of transparency and accountability were desirable. The Leader of the House said he could see a case for retaining the fuller guidance, in view of the possible inconsistency identified above.

Discussion

19 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885, paragraph 100 (d) 20 Ibid, paragraph 99 (7) 21 Committee on Standards and Privileges, Fifteenth Report of Session 1999–2000, Consultation on Proposed Amendments to the Rules Relating to the Conduct of Members, HC 710, paragraph 8; Committee on Standards and Privileges, Fifth Report of Session 2000–01, Proposed Amendments to the Rules Relating to the Conduct of Members, HC 267, paragraph 5

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151. It is important that the Guide to the Rules gives clear advice about the application of the lobbying rule to overseas visits and foreign hospitality. I agree that high levels of transparency are desirable and, therefore, recommend that the provisions of the fuller guidance set out in paragraph 148 above should be retained in the Guide, in a form which is compatible with the new format I have recommended, and that the subsequent shorter reference should be dropped.

Recommendation 47

152. The Guide should make clear that the restrictions of the lobbying rules apply to foreign hospitality and funded visits outside the UK.

General application of the lobbying rule

Background

153. The current lobbying rule prevents Members from lobbying for the exclusive benefit of an outside body (or individual) from which they have received, are receiving, or expect to receive a financial benefit. The “exclusive benefit” rule applies to Members in parliamentary proceedings and when making any approach to Ministers, other Members or public officials. The rule seeks to balance the value of Members gaining experience in outside employment which they can bring to their parliamentary work against trying to ensure that the outside employer does not unduly benefit from the support which the Member could give them in the House or in his or her dealings with others. The Committee on Standards and Privileges noted that my lobbying inquiry in 2010 suggested that it was possible within the exclusive benefit rule for a Member to undertake lobbying which might substantially benefit a dominant presence in a particular market, from whom the Member was receiving a financial benefit, because it might also benefit other less dominant providers and so could not be held to be for the exclusive benefit of the organisation paying the Member.22 The consultation paper asked whether in trying to enable Members to speak more freely on matters informed by their outside financial interests, the balance had swung too far in that direction, and whether the current lobbying rule should be made more restrictive.

154. The rules on lobbying and advocacy have a long history. In 1667, a Member was expelled for receiving payment from merchants for business done in the House.23 In 1858 Parliament resolved to prohibit paid advocacy.24 This was followed by a further Resolution in 1947 specifically preventing Members from entering any contractual arrangement which fettered their complete independence in Parliament.25 The lobbying rule as it was first set out in the Guide to the Rules in 1996 drew a distinction between initiating and participating in parliamentary proceedings.26 The restriction on participating in proceedings was as the current rule, namely prohibiting the Member from seeking to confer exclusive benefit on a relevant body or individual. The restriction on initiating proceedings, however, went wider, preventing Members from initiating any proceeding which related specifically and directly to the affairs and interests of a body or individual from whom they received a financial benefit.

155. This rule was subsequently the subject of some debate. The Committee on Standards in Public Life considered it in 2000, taking account of experience since 1995.27 They concluded: “Bearing in mind the evidence we have heard about the present guidelines on ‘initiation’ and the ban on paid advocacy, we believe that they are operating unnecessarily harshly and that they should be amended.”28 The Committee

22 Committee on Standards and Privileges, Ninth Report of Session 2010-12, HC 654 23 Resolution of 22 November 1667. 24 Resolution of June 1858: Rewards for Members. 25 Resolution of 15 July 1947: Conduct of Members. 26 The Code of Conduct together with the Rules relating to the conduct of Members, approved by the House of Commons on 24 July 1996, HC 688 27 Sixth Report of the Committee on Standards in Public Life, Reinforcing Standards, Cm 4557 28 Sixth Report of the Committee on Standards in Public Life, Reinforcing Standards, Cm 4557, paragraph 3.96

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recommended that the distinction between initiating and participating in parliamentary proceedings should be removed, thereby introducing some liberalisation in the way Members could act.

156. The Committee on Standards and Privileges considered this recommendation on two separate occasions. First, in 2000–01 when the Committee concluded that it “would amount to a considerable relaxation of the current guidelines” which “...would fatally undermine the ban on paid advocacy which we have agreed we need to retain.”29 Second, in 2001–02, a newly constituted Committee consulted on changing the rule.30 It subsequently recommended that the rule be altered to allow Members both to initiate and participate in proceedings, unless either was for the ‘exclusive benefit’ of a body or individual from whom the Member had a financial benefit.31 The Committee made clear that if the House accepted that recommendation, they would regard it as a very serious breach of the rules of the House if a Member failed to register or declare an interest which was relevant to a proceeding he or she had initiated. The Committee also repeated the recommendation of its predecessor that the lobbying rule should be extended to apply where Members made approaches to Ministers or public officials, in addition to parliamentary proceedings. The House agreed to these recommendations in 2002, creating the current rule as outlined in paragraph 153 above.

157. In my consultation paper I identified five possible options for amending the lobbying rule as it applied to Members with a financial interest in an outside body or individual who might benefit from such lobbying. They were: to prevent any lobbying for the benefit of such an outside body or individual; to prevent any such lobbying where the benefit is more than a minor one; to prevent any such lobbying which confers a financial benefit on a dominant presence in a defined market; to prevent any such lobbying which confers a disproportionate financial benefit on that outside body or individual, and to allow lobbying, provided that the relevant registrations and declarations are made and the Member does not engage in paid advocacy.

Question 36: Should the current lobbying rule be maintained, made more restrictive or relaxed, and if so, taking account of the options suggested, how?

Responses to consultation Those who responded to this question generally supported maintaining a lobbying rule, although views varied on how that rule might be expressed. The view expressed by the Committee on Standards in Public Life was that lobbying was a legitimate and potentially beneficial activity when exercised responsibly. It accepted that being lobbied and engaging in lobbying were inescapable parts of being a Member. The Committee believed that the principle on which the current lobbying rule was based was correct: that Members of Parliament should not be influenced by payments they received. They acknowledged that there remained a question about whether the rule was appropriately drawn to ensure that while Members were able to speak on matters informed by their outside financial interests, there was sufficient transparency to enable the public to know about their interests and to assess their contributions accordingly. As they considered that the precise formulation of the rule was a practical matter, rather than one of principle, they did not propose an alternative, but noted that they looked forward with interest to the evidence and conclusions on this matter. The Leader of the House and the Public Standards Commissioner for Scotland believed that the lobbying rule should be maintained in its current form. On the other hand, Transparency International UK supported a more restrictive rule along the lines of the option in the consultation paper of restricting Members from lobbying to confer any financial benefit on a relevant outside body or individual.

Discussion

158. I agree with the respondents that there should be some restriction on lobbying by Members who receive financial benefits from outside interests. I remain concerned that the current restrictions are too lax in that

29 Committee on Standards and Privileges, Fifth Report of Session 2000-01, Proposed Amendments to the Rules Relating to the Conduct of Members, page xix (Letter from Mr Robert Sheldon, Chairman of the Committee, to Lord Neill) 30 Committee on Standards and Privileges, Fourth Report of Session 2001-02, Restrictions on the Initiation of Parliamentary Proceedings: a Consultation Paper, HC 478 31 Committee on Standards and Privileges, Ninth Report of Session 2001-02, A New Code of Conduct and Guide to the Rules, HC 763

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they do not adequately uphold the principle that Members should not be thought to be influenced in their actions or speeches by any payments they receive from others, or the prospect of such payments. But I consider that the restrictions should not be so tight as to prevent Members from speaking out on the issues and policies of the day.

159. I think it is right, therefore, that Members should continue to be able to take part in lobbying Ministers, other Members and public officials on matters on which they feel strongly. They should be able to be informed in that lobbying by knowledge or understanding gained while in paid outside employment. But they should not be able to lobby in circumstances where it might reasonably be thought that they did so only or principally because of their paid outside interest.

160. The present rule does not provide Members—or the public—with a sufficient assurance that any lobbying is for the public interest rather than the commercial interest of the organisation or individual who has provided money or benefit to the Member. The effect of the exclusive benefit rule is to enable Members to lobby in their paymaster’s interests as long as others benefit as well. This provides, in my judgement, insufficient protection to the public interest. As the then Committee on Standards and Privileges noted in 2000, there is the risk that the current rule could be seen to conflict with the absolute ban on paid advocacy which is the very basis of the lobbying restrictions.32

161. I have considered whether the options suggested in the consultation paper are sufficiently clear and straightforward for them to be easily understood and as easily implemented. I doubt that they are. I do not consider the two outliers—a total ban and no restrictions at all—could meet the public interest in allowing Members to draw on their own experience while preventing any private interests being thought to influence the Member’s actions or words. But on reflection I think the intermediate options rely too heavily on the interpretation of such phrases as “dominant presence” and “disproportionate financial benefit” and the definition of a “market”. The result is likely to be uncertainty and inconsistency in the application of the rule.

162. Having carefully considered this matter, I have come to the conclusion that there is a strong argument for introducing a modified version of the initial approach of the Select Committee on Standards in Public Life, which sought to distinguish between actions initiated by the Member and activities initiated by others. In my view, Members who initiate the action themselves—whether it be a proceeding in Parliament or in seeking a meeting or discussion with a Minister, another Member or a public official—are seeking to set the policy making or parliamentary agenda. Any Member who seeks to do that should in my judgement be seen to act only in the public interest. There should be no suspicion or suggestion that a private interest—of an employer or anyone else—might be involved. The Member should initiate no action, therefore, which could reasonably be thought by others to confer any financial or material benefit on an individual or organisation from which he or she has received, is receiving or expects to receive reward or consideration.

163. But if anyone other than the Member receiving outside payment has sought to set the agenda by initiating proceedings in the House or by arranging meetings with Ministers, other Members or public officials, then I consider that the Member who has a personal financial interest should be able to take part in those proceedings, meetings, or discussions as long as that relevant interest is properly declared and the Member is not seeking to confer benefit exclusively on his or her employer or client. Under this proposal, it would still be open for a Member’s employer or client to seek a meeting with a Minister or a public official— or to seek separately to persuade another Member to initiate parliamentary proceedings—but the Member who is receiving payment or other benefit should take no part in that meeting or in such proceedings, or in encouraging the initiation by or participation of other Members in the proceedings.

Recommendation 48

164. The lobbying rule should be redrawn to restrict Members from initiating parliamentary proceedings or approaches to Ministers, other Members or public officials which would confer any financial or material benefit on an outside organisation or individual from whom they have received, are receiving or expect to receive reward or consideration. Members would continue to be able to take part in

32 Committee on Standards and Privileges, Fifth Report of Session 2000-01, Proposed Amendments to the Rules Relating to the Conduct of Members, page xix (Letter from Mr Robert Sheldon, Chairman of the Committee, to Lord Neill)

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parliamentary proceedings or approaches to Ministers, other Members or public officials initiated by others—other than the organisation or individual from whom they have received, are receiving, or expect to receive reward or consideration—provided they are not seeking to confer any financial or material benefit.

Activities of former Members of Parliament

Background

165. The consultation paper considered whether restrictions should be placed on the lobbying activities of former Members: currently there are no such restrictions. My lobbying inquiry suggested that, once Members had left the House, there was nothing to prevent them using the contacts which they had developed during their time in Parliament to lobby Ministers or public officials, in support of the causes and objectives of bodies from whom they were receiving payment.33 Former Members are entitled to apply for a parliamentary pass and therefore to gain privileged access to the facilities of, and those who work in, the Palace of Westminster: the only restriction is that former Members must not use their pass in order to use the House’s dining facilities for lobbying activities.

166. There are currently restrictions on former Ministers which are set out in the Ministerial Code. Under this Code former Ministers are expressly prohibited from lobbying Government for two years after leaving office. They are also required to seek and abide by advice from the Independent Advisory Committee on Business Appointments (ACoBA) about any appointments or employment they wish to take up within two years of leaving office. Senior Civil Servants must also seek the advice of ACoBA for outside appointments within two years of leaving office.

167. The consultation paper proposed three options, namely:

(a) extending the lobbying rule for Members to former Members for a period of, say, two years;

(b) a requirement on former Members to register any occupation or employment involving contact with Ministers, Members, public officials and public office holders; and

(c) a requirement on those receiving lobbying, effectively preventing them from doing so from former Members who were seeking to lobby in the manner prohibited by the lobbying rule for Members.

Question 37: Should there be a restriction on the lobbying activities of former Members?

Question 38: If so, which of these options or combination of the options would be preferable, or is there a better way?

Responses to consultation The Committee on Standards in Public Life noted that it was possible that former Members may take on a significant and influential role in public affairs and exploit the contacts and knowledge gained through membership of the House in order to do so. The Committee considered that it was important for public confidence in Parliament to ensure that, during their time in the House, Members were not perceived to be influenced in their behaviour by hope or expectation of future personal gain. The Committee supported, therefore, the suggestion that the lobbying restriction applied to current Members, preventing them lobbying for exclusive benefit, be extended to former Members for a period of two years from leaving office.

Transparency International UK believed that there should be a restriction on the lobbying activities of former Members. It felt there should be post-public employment rules for MPs taking into account differences in the incidence of conflict-of-interest risk between various roles, and being sensitive to the job insecurity that elected MPs faced. Transparency International UK was of the view that consideration of this issue should be linked to an examination of the remuneration of MPs.

33 Committee on Standards and Privileges, Ninth Report of Session 2010–12, HC 654

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The Public Standards Commissioner for Scotland considered that it could be argued that a restriction on the lobbying activities of former Members was disproportionate. He noted that, if a restriction were to be imposed then, taking into account the two year restrictions on former Ministers and civil servants, a one year restriction on former Members might be proportionate. The Leader of the House noted the current restriction on former Members being specifically excluded from using their pass to use the House’s dining facilities for lobbying activities. He did not believe that a case could be made for further restrictions on the lobbying activities of former Members. He considered that any such activities may be undertaken away from Parliament. He noted that, if such a proposition were to be pursued, very careful consideration would need to be given to the appropriateness of the sanctions that might reasonably be imposed on former Members. In his view the withholding or suspending of a pass might not be a relevant sanction and he considered the calling of a former Member to the bar of the House to be inappropriate.

Discussion

168. Having carefully considered the differing responses and the issues involved, I consider that the House should accept the guidance of the Committee on Standards in Public Life and agree to introduce some restrictions on the lobbying activities of former Members of Parliament. This is principally to avoid any suggestion that imminently retiring Members had been influenced in their actions in the final stages of their political career by the prospect of becoming a paid lobbyist for any particular cause or that they had been prepared to exploit their recent parliamentary and governmental contacts developed in their role as a Member of Parliament for subsequent personal financial gain. The principal concern, therefore, is to protect the reputation of the House from adverse perceptions of the conduct of present Members—a suitable matter for the Code of Conduct and Guide to the Rules—on account of the potential lobbying activities of Members once they leave the House.

169. I agree with the Committee on Standards in Public Life that the lobbying restrictions should apply to former Members for a period of two years from leaving Parliament. The two year period would mirror that in the ACoBA rules for Ministers and civil servants. The restriction should be the same as for current Members except, of course, that it would be less extensive as there would be no question of former Members themselves being able to initiate or participate in parliamentary proceedings. The restrictions would only apply, therefore, in respect of approaches to Ministers, other Members or public officials.

170. By itself, however, this rule is insufficiently transparent to provide the necessary degree of public confidence sought by the Committee on Standards in Public Life in its response to the consultation. It would not be possible to know whether a former Member had taken some form of employment which might engage the lobbying restriction. I consider, therefore, that, for a period of two years from leaving Parliament, former Members should be expected to put in a register, which would be maintained and made publicly available by the Commissioner’s office, any occupation or employment which involved their employer or themselves in contact with Ministers, other Members or public officials.

171. The lobbying restriction and this registration requirement should not apply to former Members who are Members of the House of Lords, which has its own rules on lobbying.

172. On reflection, I do not consider it practical or necessary to seek to enforce these provisions through placing restrictions or requirements on the recipients of any lobbying.

173. I recognise the concerns of Sir George Young about the sanctions which any breach of the rules might attract. When a former Member has used his or her privileged access to the House to pursue any inappropriate lobbying, withdrawal of his or her pass for a specified period might be a viable sanction. Where inappropriate lobbying has taken place outside the precincts of the House, then public disapproval by the House could be an appropriate sanction since such disapproval is unlikely to further a former Member’s lobbying career: and it would be open to the House in appropriate circumstances also to withdraw the former Member’s pass for a period.

174. At present, former Members are prevented from using their privileged access to use the dining facilities to conduct lobbying. I suggest the provision be extended to the use of any of the facilities of the House.

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Former Members outside the “purdah” period of two years could still lobby on the parliamentary estate, but would need a normal visitor pass in order to do so.

Recommendations 49 to 51

175. Former Members should be subject to the lobbying rule for two years after their departure from the House in respect of any approach they make to Ministers, Members or public officials.

176. Former Members should be required to register any occupation or employment which involves contact with Ministers, Members or public officials in the two years following their departure from the House.

177. Former Members should not be permitted to use their privileged pass for the purposes of any lobbying on the parliamentary estate.

Past benefits

Background

178. The restriction under the lobbying rule applies to past, current and future benefits. The current Guide applies the rule inconsistently to the two types of past benefit. This is because it distinguishes between:

(a) ‘one-off’ benefits, such as visits and gifts, where the restriction remains for twelve months after the benefit is registered; and

(b) continuing benefits, such as directorships, other employment and sponsorship where a Member can dispose of the benefit, for example, by resigning from his or her employment, and be immediately free of restriction under the lobbying rule (provided there is no expectation of a renewal of the benefit).

179. The consultation paper considered whether such a wide variation in the treatment of the receipt of these two forms of past benefits could be justified. It proposed a number of alternative options: to provide no ‘cooling-off’ period, to retain it just for ‘one-off’ benefits but for a shorter period, or to harmonise the period at three, six or twelve months.

Question 39: What restrictions, if any, should apply under the lobbying rule in respect of benefits which Members have received in the past?

Responses to consultation The Leader of the House believed, while he did not have a firm view, that a case could be made for a consistent cooling off period for both ‘one-off’ and ‘continuing’ benefits. The Public Standards Commissioner for Scotland considered that the cooling off period should be harmonised at six months with Members having the ability to divest themselves of the restriction by repaying the benefit.

Discussion

180. The responses accept the principle that restrictions under the lobbying rule should continue to apply to Members in respect of financial interests from the recent past. I agree. A benefit received in the recent past could reasonably be thought by others to influence a Member in lobbying in support of the donor. I agree also that, in principle, Members should be able to free themselves from the lobbying restrictions within a reasonable period of ceasing to receive the benefit. I consider that a reasonable ‘cooling-off’ period would be six months. Where it is possible to return the full benefit received—either in the form of a gift given or a payment made over the previous six months—then the full or remaining ‘cooling-off’ period may be waived.

Recommendations 52 and 53

181. Members should be subject to the restrictions under the lobbying rule in respect of any relevant benefit received, in any form, in the previous six months.

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182. Members should be able to free themselves from the lobbying restrictions by returning or repaying any relevant benefit received in the previous six months.

Other changes in relation to lobbying

Question 40: In addition to the issues raised above, does the lobbying rule require any further amendments?

Responses to consultation

The Committee on Standards in Public Life suggested extending the Register of Members’ Financial Interests in order to record whether former Ministers had consulted ACoBA about their registered employment. I discuss this under the heading of employment and earnings at paragraphs 52 to 56 of this memorandum. No other issues were raised in response to this question.

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7 Procedure for Inquiries

Introduction

183. The final chapter of the Guide to the Rules sets out the main elements of the procedure for handling allegations of breaches of the Code of Conduct and its associated rules. It is supported by a separate procedural note agreed by the Committee and published on the Commissioner’s webpages. The procedural note, which was updated in April 2012, provides further detail on the procedure for inquiries and is aimed at assisting those involved in an inquiry.34

184. As well as replacing the word ‘complaints’ in the title with ‘inquiries’, to reflect the fact that it is possible for an inquiry to be initiated by the Commissioner responding to evidence which has come to his or her attention, the draft new chapter 4 at Annex 2 includes some further minor amendments to the draft published with the consultation paper, in addition to the policy changes discussed below. These drafting amendments seek to provide further clarity on the procedure. These changes are consistent with the amended procedural note which was agreed by the Committee on Standards and Privileges and published on the Commissioner’s webpages in April 2012.35 I consider below the questions raised by the consultation, and a further substantive policy change identified by the Clerk of the House.

Limiting inquiries into past conduct

Background

185. The current Guide makes clear that the Committee will normally expect the Commissioner to consult it before initiating an inquiry into a complaint which goes back more than seven years, which it would expect to authorise only in exceptional circumstances.

Question 41: Should the threshold for complaints about historic conduct be extended or reduced? If it should be reduced should it be brought in line with the new fixed-term Parliaments?

Responses to consultation The Leader of the House felt that the current threshold should be maintained. He considered that a change to the threshold was likely to be perceived as an attempt to restrict the Commissioner’s powers to consider alleged wrongdoing which comes to light some years later. The view of the Public Standards Commissioner for Scotland however was that the threshold should be reduced and set at five years.

Discussion

186. In my view it is important that the threshold for considering conduct from some years ago achieves the right balance between the House’s ability to maintain and uphold high standards and the proportionality and relevance of an inquiry into a Member’s past conduct, recognising that both the evidence and memories can erode with the passage of time. I have considered whether the current threshold of seven years continues to achieve that balance. In my opinion, while I see the merit of a threshold which mirrors the new fixed-term Parliaments, I agree with the Leader of the House that that does not outweigh the risk that any change might be perceived as an attempt to restrict the independent exercise of the Commissioner’s responsibility to decide whether the evidence is such as to justify the initiation of an inquiry. If the passage of time has eroded the initial evidence, then the Commissioner would not embark on the inquiry. As with inquiries into former Members, therefore, I consider that the Commissioner should continue to seek the agreement of the Committee before initiating an inquiry into conduct which goes back more than seven years.

34 http://www.parliament.uk/documents/documents/Procedural_Note-April_2012.pdf 35 Ibid.

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Recommendation 54

187. The threshold for the Commissioner seeking the agreement of the Committee in respect of complaints into past conduct should be maintained at seven years.

Conduct in private and personal lives

188. When the House debated the revised Code of Conduct on 12 March 2012, the Chair suggested that the procedure whereby I consult the Committee before initiating exceptional inquiries could be extended to include any proposed inquiry by me into conduct which related only to a Member’s private or personal life where that conduct had seriously damaged the reputation and integrity of the House or its Members generally.36 This could have provided an assurance that the Committee had considered and agreed with the Commissioner’s judgement that, despite the importance of personal privacy, it was both necessary and proportionate exceptionally for the Commissioner to initiate an inquiry. If the Committee did not agree, the inquiry would not go ahead. The House decided, however, to accept an amendment to the revised Code to place the investigation of such conduct outside the Commissioner’s remit. I hope that the House might wish to consider this matter further when considering this review of the Guide. In my judgement the current position is both unsatisfactory and uncertain. In such wholly exceptional circumstances the House would either be unable to act or would have to try to initiate some unprecedented procedure without the involvement of the independent Commissioner appointed by the House to do this work. If the House did consider this matter again, in the context of my review of the Guide to the Rules, I would support the Chair’s proposal and endorse his judgement that the Commissioner should be required to refer the matter to the Committee before initiating any inquiry and that the Committee should be expected to give its approval only in exceptional circumstances.

Recommendation 55

189. The Committee should consider inviting the House to agree that the Commissioner should only be able to inquire into allegations that a Member’s conduct in his or her private and personal life had seriously damaged the reputation and integrity of the House or its Members generally in exceptional circumstances and when the Committee has explicitly agreed in advance to such an inquiry.

Self-referrals

Background

190. The current procedural note states that the Committee will normally expect the Commissioner to consult it before initiating an inquiry into a self-referral by a Member. It notes that it would expect to authorise such an inquiry only in exceptional circumstances.

Question 42: Should the complaints procedure be amended to remove the requirement for the Commissioner to seek the agreement of the Committee before initiating an inquiry following a self-referral?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland supported the removal of this requirement.

Discussion

191. The case for retaining this requirement is that it allows the Committee and the House to make clear that individual Members cannot expect the Commissioner routinely to act on a self-referral and that the Commissioner needs some protection from a demanding Member. The former objection can, however, be met by a statement in the Guide; the latter reflects on the Commissioner’s firmness of purpose. In any event

36 HC Deb, 12 March 2012, col 89

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this provision might be thought incompatible with the provision introduced in December 2010 allowing the Commissioner him- or herself to initiate an inquiry where sufficient evidence has come to the Commissioner’s attention to justify such an inquiry.37 There is properly no requirement on the Commissioner to consult the Committee in such circumstances. The Commissioner should be relied on not to take on inquiries which a Member may seek for his or her own purposes but which the Commissioner cannot justify in the wider public interest.

Recommendation 56

192. The complaints procedure should be amended to remove the requirement for the Commissioner to seek the agreement of the Committee on Standards and Privileges before initiating an inquiry following a self-referral.

Frivolous or vexatious complaints and disproportionate inquiries

Background

193. Under the current procedure, if the Commissioner considers that a complaint is frivolous or vexatious or that an inquiry would be disproportionate the Commissioner may decide not to inquire into it. In such cases the Commissioner is required to report the matter to the Committee.

Question 43: Should the complaints procedure continue to make special provision for frivolous and vexatious complainants or complaints where the Commissioner considers an inquiry would be disproportionate?

Responses to consultation The Leader of the House and the Public Standards Commissioner for Scotland considered that this should be a matter to be agreed between the Commissioner and the Committee.

Discussion

194. In practice, I am aware of no cases where a complaint has been rejected on the grounds that it is frivolous or vexatious. The Commissioner will not accept a complaint which is not supported by evidence sufficient to justify an inquiry: the nature of the complainant is not at issue; the strength of the evidence is paramount. Frivolous complaints will not get through: neither will vexatious complaints unsupported by sufficient evidence however often or however hard they are pressed. The Commissioner should, however, be able to decide not to pursue an inquiry when the evidence suggests some sort of breach, but where an investigation would be disproportionate. I see no need, therefore, for a separate category for frivolous or vexatious complaints or disproportionate inquiries, although the Commissioner can be expected to report to the Committee any such complaints in the same way as he or she reports on the nature of other complaints received and not proceeded with.

Recommendation 57

195. The Guide to the Rules should no longer make particular provision in the complaints procedure for frivolous and vexatious complaints but should retain the reference to the Commissioner not being required to inquire into a matter where he or she considers such an inquiry disproportionate.

Rectification of non-declarations: procedure for apologies

Background

196. Under Standing Order No. 150 the Commissioner can decide to resolve a matter through the rectification procedure. I normally consider whether to institute this procedure in circumstances where the

37 Votes and Proceedings, 2 December 2010

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Member accepts that there has been a breach of the rules of the House, where there is no clear evidence that the breach was intentional and where it was at the less serious end of the spectrum. The Committee expects the Member to apologise for any breach of the rules. Where a Member has failed to make a declaration as required under the rules, the Guide to the Rules states that in rectifying the breach an apology to the House by means of a point of order is required.

Issue: whether there should be particular arrangements for making apologies by way of a point of order in the event of non-declaration.

Responses to consultation The Clerk of the House considered that it was an understood feature of this procedure that the rectification by apology through a point of order fell well short of the procedure required for a personal statement. He noted that rectification of a non-declaration by point of order was plainly intended to be lower on the “tariff” than a personal statement. He noted a statement by the Committee which said it was “markedly less significant than a personal statement, announced by the annunciator in advance and heard by the House in silence.”38 He considered, having discussed the matter with the Speaker, that it might be best if henceforth the procedure for rectification of a non-declaration by a point of order should be handled slightly more formally while preserving the distinction from a personal statement. Specifically:

The Member making the rectification would inform the Speaker in advance of his intentions and a date and time agreed.

The text of the point of order must be agreed in advance by the Speaker. The Speaker would call the Member explicitly “on a point of order in connection with the Code of Conduct, to rectify a failure to declare.” Hansard would publish the point of order under a separate column heading from other “standard” points of order raised.

The Clerk did not consider that it would be necessary to include these detailed provisions in the Guide, but it would be fair to Members to include in the text some indication that there was a particular regime for such points of order to be raised.

Discussion

197. I am grateful to the Clerk of the House and to Mr Speaker for addressing this matter and for this suggested resolution. I agree that it would be helpful to Members to include a reference in the Guide to these special arrangements. I would expect the Commissioner to advise any Member rectifying a non-declaration to consult the Speaker’s office about the necessary arrangements.

Recommendation 58

198. The Guide to the Rules should reflect the special arrangements which exist for apologies by way of a point of order in the event of non-declaration.

38 Committee on Standards and Privileges, Twenty-second Report of Session 2010–12, HC 1766, paragraph 17

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Conclusion

199. In this memorandum I have proposed a number of changes to the provisions of the Guide to the Rules, notably to improve and streamline the rules on registration and to ensure that the lobbying rule is redrawn to ensure that Members are able to have outside interests which inform their contributions without enabling them to lobby in a way which gives a private commercial benefit to those providing them with reward and consideration. In considering what changes should be made to the Guide I have carefully considered all the points made by those who responded to the consultation. I consider that the amended Guide at Annex 2, if agreed by the House, will be significantly more effective in its operation because of the clarified and, where necessary, strengthened rules and because of the clearer and more concise presentation which I hope Members and the public will find easier to navigate.

200. I have considered whether the amended Guide is likely to have a differential impact on Members. I have considered in particular whether it is likely to have a differential impact on certain groups, those with different circumstances, including age, disability, ethnicity, gender, religion and sexual orientation. I do not consider the substance of the Guide to have such an impact, although I note that the registration requirements will continue to affect those with greater outside financial interests, and those whose family members receive hospitality, visits or benefits associated with the Member’s role. In considering amendments to the rules on registration, I have aimed to remove or reduce unnecessary burdens on Members while upholding the principle of the Register. That should result in some saving of time for Members, their staff and the Commissioner’s office.

201. I have considered also the resource implications of the changes which I have recommended. It is difficult to state with any certainty the overall resource requirement on Members, or the staff of the Commissioner’s office. That requirement is a combination of the time spent on applying the rules to the Members’ situations and the number of entries which have to be made. The latter is affected in particular by the nature and extent of each Member’s financial interests, which can vary greatly. Time and therefore resources should, however, be saved by the greater clarity which I believe the new rules provide. And, while the number of individual entries in the Register may well reduce in some categories, in particular in the employment category, I expect this to be counterbalanced by an increase in the categories for visits, gifts, benefits and hospitality, following a reduction in the relevant financial thresholds. Taking all these factors into account I would expect that for most Members the resource requirement will be largely neutral. I note, however, that the new requirement to register relatives who undertake lobbying will impose a new burden on some Members, and the new lobbying register for former Members will impose a new requirement on some of them as well.

202. In the short term I would expect resources in my office to be devoted to initiating the new provisions and ensuring Members and their staff are fully briefed on the new requirements. I would also expect the new lobbying register of former Members to require particular attention at election time. The overall resource requirement arising from the Guide will need to be considered further once the provisions have been considered and approved by the House.

John Lyon CB Parliamentary Commissioner for Standards 5 September 2012

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Annex 1: Recommendations

1. The House should adopt the clearer format proposed in the consultation paper, which is reflected in the new Guide to the Rules which I have placed at Annex 2. (Paragraph 9)

6. Members should continue to register the hours worked for each payment in Category 1: Employment and earnings. (Paragraph 26)

7. A Member registering a payment in Category 1: Employment and earnings should in future be required to give the date when it was received. (Paragraph 28)

9. Members should be required to register payments for opinion surveys only if they exceed the relevant thresholds for the registration of employment and earnings. (Paragraph 32)

11. The Guide should make clear that Members should register redundancy and ex gratia payments under Category 1: Employment and earnings. (Paragraph 38)

13. The Register should not be extended to include Members’ pension arrangements. (Paragraph 44)

14. There should be no change to the arrangements for registration of earnings by Members who are self- employed sole traders, who should continue to register each payment to them as it is received. (Paragraph 47)

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18. Members should continue to register gifts, benefits, hospitality and visits which they receive through developmental and secondment programmes which are approved by the parliamentary authorities, subject to the normal registration rules. (Paragraph 63)

23. Members should be required to register gifts and benefits from sources outside the UK which relate to their political activities. (Paragraph 80)

25. Members should no longer be required to include in this section a note drawing attention to any employment payments from sources outside the UK. (Paragraph 84)

26. The Guide should explicitly require Members to register land and property both within and outside the UK. (Paragraph 88)

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held, the date on which the Member believes it achieved registrable value. As with other provisions, this should not have retrospective effect. (Paragraph 94)

29. A Member who makes a registration under Category 7: Shareholdings, should be required to register the date on which the shares were acquired or, for shares already held, the date on which they achieved registrable value, and the date on which they were sold or ceased to be of registrable value. As with other provisions, this should not have retrospective effect. (Paragraph 98)

30. The Guide should continue to provide the opportunity for Members to register non-financial interests including unremunerated directorships or employment if they consider that these satisfy the test of relevance—without requiring Members to register all non-financial interests. (Paragraph 101)

31. Members should not be required to register classes of assets other than land, property and shareholdings. (Paragraph 105)

32. The Guide should be amended to encourage Members to register under Category 8: Miscellaneous, other financial assets which meet the test of relevance. (Paragraph 106)

33. The Guide should not require or encourage Members to register indirect interests. (Paragraph 108)

34. Members should not be specifically encouraged under Category 8 to register donations to charity which they have solicited. (Paragraph 110)

35. Members who register an interest under this Category in future should be required to provide the date when that interest arose or became registrable. (Paragraph 112)

43. Under Category 9: Family members employed, Members should register the names of any family members who earn more than £700 in a calendar year, paid from parliamentary expenses. (Paragraph 136)

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44. Members should not be required to declare non-financial interests, but should be encouraged to declare such interests where relevant. (Paragraph 140)

46. Members should be required to declare a relevant interest when booking any room for a function in the Palace of Westminster, and to declare that interest in inviting guests to the function in the same way as they are required now to do only for private dining rooms. For this purpose a function is where food and drink is provided: a declaration should not be necessary when booking a room simply for a meeting or presentation. (Paragraph 145)

47. The Guide should make clear that the restrictions of the lobbying rules apply to foreign hospitality and funded visits outside the UK. (Paragraph 152)

48. The lobbying rule should be redrawn to restrict Members from initiating parliamentary proceedings or approaches to Ministers, other Members or public officials which would confer any financial or material benefit on an outside organisation or individual from whom they have received, are receiving or expect to receive reward or consideration. Members would continue to be able to take part in parliamentary proceedings or approaches to Ministers, other Members or public officials initiated by others—other than the organisation or individual from whom they have received, are receiving, or expect to receive reward or consideration—provided they are not seeking to confer any financial or material benefit. (Paragraph 164)

51. Former Members should not be permitted to use their privileged pass for the purposes of any lobbying on the parliamentary estate. (Paragraph 177)

52. Members should be subject to the restrictions under the lobbying rule in respect of any relevant benefit received, in any form, in the previous six months. (Paragraph 181)

53. Members should be able to free themselves from the lobbying restrictions by returning or repaying any relevant benefit received in the previous six months. (Paragraph 182)

54. The threshold for the Commissioner seeking the agreement of the Committee in respect of complaints into past conduct should be maintained at seven years. (Paragraph 187)

57. The Guide to the Rules should no longer make particular provision in the complaints procedure for frivolous and vexatious complaints but should retain the reference to the Commissioner not being

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required to inquire into a matter where he or she considers such an inquiry disproportionate. (Paragraph 195)

58. The Guide to the Rules should reflect the special arrangements which exist for apologies by way of a point of order in the event of non-declaration. (Paragraph 198)

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Annex 2: Proposed new Guide to the Rules relating to the conduct of Members

Introduction

1. The Code of Conduct provides a set of rules to which Members must adhere. Some of these rules are supported by more detailed guidance. Those set out in this Guide relate to the registration and declaration of interests, and to paid lobbying. The Guide also sets out the procedure for inquiries by the Parliamentary Commissioner for Standards.

3. The Guide is structured as follows:

• Chapter 1 of the Guide explains the requirements in relation to the registration of Members’ financial interests;

• Chapter 2 explains the requirements in relation to the declaration of interests in proceedings of the House and on other occasions;

• Chapter 3 sets out the restrictions on Members engaging in lobbying for reward or consideration;

• Chapter 4 provides an outline of the Commissioner’s remit, and sets out the procedures in relation to the Commissioner’s inquiries.

Registration and declaration of financial interests (Chapters 1 and 2)

4. Paragraph 13 of the Code of Conduct provides:

13. Members shall fulfil conscientiously the requirements of the House in respect of the registration of interests in the Register of Members' Financial Interests. They shall always be open and frank in drawing attention to any relevant interest in any proceeding of the House or its Committees, and in any communications with Ministers, Members, public officials or public office holders.40

5. The overall aim of both registration and declaration is to provide information about any financial interest which might reasonably be thought by others to influence a Member’s actions, speeches or votes in Parliament, or actions taken in his or her capacity as a Member of Parliament.41 Financial interests include material benefits and payments in kind.42 Each Member is responsible for making a full disclosure of such interests, which is achieved by registering and declaring them in accordance with the requirements of the House. The aim of this is openness. Neither registration nor declaration imply any wrongdoing.

39 This is subject to the House’s agreement when considering any motion in these terms. 40 The Code of Conduct together with the Guide to the rules relating to the conduct of Members 2012, HC 1885 41 This reflects the recommendations in the First Report of the Select Committee on Members’ Interests, Session 1991– 92, Registration and Declaration of Financial Interests, HC 236, paragraph 27 42 The term “financial interests” should be read in this way throughout this Guide.

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of the information required for the Register reflects the requirements of the Political Parties, Elections and Referendums Act 2000 (PPERA), as amended. The Electoral Commission extracts the information which it needs from the published Register, or, where the publication timescale of the Register does not permit this, by accessing from the office of the Parliamentary Commissioner for Standards the relevant information provided by Members.

8. The Guide sets out the categories in which Members are required to register their financial interests and the information to be provided. These categories are summarised below, together with the financial thresholds which apply. When considering registration, Members are also required to keep in mind the overall purpose of the Register.43 If a Member has any financial interests which meet that purpose but which do not fall clearly into one of the defined categories, he or she is nonetheless required to register them, normally under the Miscellaneous category.

Category Financial threshold for registration

1. Employment and Over £100 for individual payments earnings Over £300 for the total of multiple payments of whatever size from the same source in a calendar year

2. Donations and other Over £1,500, either as individual payment, or for the total of multiple support donations of more than £500 from the same source in the course of a calendar year

3. Gifts, benefits and Over £300 for the total of benefits of whatever size from the same hospitality from UK source in a calendar year sources

4. Visits outside the UK Over £300 if not wholly borne by Member or public funds

Threshold also applies to the total of benefits of whatever size from the same source in a calendar year

5. Gifts and benefits Over £300 for the total of benefits of whatever size from the same from sources outside source in a calendar year the UK

6. Land and property Total value of property held: over £100,000

Income derived from property: over £10,000 in a calendar year

7. Shareholdings Greater than 15% of issued share capital (on preceding 5 April), or if 15% or less of issued share capital (on preceding 5 April), greater in value than £70,000

8. Miscellaneous No threshold.

43 The purpose of the Register is set out at paragraph 5 above.

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9. Family members Remuneration of over £700 in a calendar year employed and remunerated through parliamentary expenses

10. Family members No threshold. engaged in lobbying

Lobbying for reward or consideration (Chapter 3)

11. Paragraph 11 of the Code of Conduct provides:

11. No Member shall act as a paid advocate in any proceeding of the House.44

12. A Member may, however, still hold a remunerated outside interest as a director, consultant or adviser or in any other capacity. Members who receive such financial benefits may take part in parliamentary proceedings or in meetings and discussions with Ministers, other Members and public officials which could affect that interest, provided they do so in accordance with the provisions set out in Chapter 3 of this Guide. But such Members must not initiate proceedings or meetings which would provide a financial or material benefit to any organisation or individual from whom they have received, are receiving or expect to receive reward or consideration.

Procedure for inquiries (Chapter 4)

13. Paragraphs 18 and 19 of the Code of Conduct provide:

19. The Commissioner may investigate a specific matter relating to a Member's adherence to the rules of conduct under the Code. Members shall cooperate, at all stages, with any such investigation by or under the authority of the House. No Member shall lobby a member of the Committee in a manner calculated or intended to influence its consideration of an alleged breach of this Code.45

44 The Code of Conduct together with the Guide to the rules relating to the conduct of Members 2012, HC 1885 45 Ibid.

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Ministers of the Crown

Sources of advice

Commencement

46 Please contact the Electoral Commission on 020 7 271 0616.

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1 Registration of Members’ Financial Interests

Requirements of the House

1. Paragraph 13 of the Code of Conduct for Members of Parliament provides:

5. The Miscellaneous category may also be used to register non-financial interests when the Member considers they meet the purpose of the Register.

Category 1: Employment and earnings

Threshold for registration

Requirements for registration

7. Under this category Members must register:

47 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885

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d) Income as a member of Lloyd’s;48 e) Payments for opinion surveys (unless they fall below the registration threshold).

8. Members should not register under this category: a) Earnings received as a Member, Minister or select committee Chair in the UK Parliament; b) Unremunerated directorships (unless associated with, or a subsidiary of, a company or group of which the Member is a remunerated director);49 c) Directorships of companies not currently trading;50 d) Earnings of the Member’s spouse, partner or family members; e) Income received by way of dividends; f) Pension payments.

9. Members are required to provide the following information: a) Whether the Member is a director of the organisation; b) The name and address of the payer51 and a brief description of their business (if not self evident); c) The name and address of any client to whom the Member has personally provided services52, if different from the payer, and a brief description of their business (if not self evident); d) The size of the payment received, and the nature and value of any taxable benefits and any payments in kind. (Earnings should be given gross, i.e. before tax or other deductions, wherever possible. Fees should be given before the addition of VAT); e) The nature of the work involved, and the number of hours’ work to which each payment relates; f) The date when the payment was received (or, if not yet received, the date when the work was completed); g) Confirmation that the Member has not engaged in paid advocacy.53

Members who ceased to hold Ministerial office within the previous two years

10. Such Members should state, additionally, whether they sought the advice of the Advisory Committee on Business Appointments in respect of this employment.

Payments made to other people or organisations

48 Members who have resigned from Lloyd’s should continue to register their interest as long as syndicates in which they have participated continue to have years of account which are open or in run-off. In such circumstances Members should register the date of resignation. Members of Lloyd’s are also required to disclose the categories of insurance business which they are underwriting. Any member of Lloyd’s receiving financial assistance (including relief from indebtedness or other loan concessions but excluding any general settlement available to all Lloyd’s members) from a company, organisation or person within or outside the United Kingdom should register that interest under gifts and other benefits. 49 Members may register these if they consider them relevant, under Category 8: Miscellaneous. 50 Members may register these if they consider them relevant, under Category 8: Miscellaneous. 51 Unless this would be contrary to any legal or established professional duty of privacy or confidentiality. 52 Unless this would be contrary to any legal or established professional duty of privacy or confidentiality. 53 As described in paragraph 1 of chapter 3 of this Guide.

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Contractual agreements for twelve months or more

(h) The agreed start, and (if any) end dates for the contract;

(i) The agreed payments, including any taxable benefits and payments in kind;

(j) The dates agreed for those payments.

Registering ad hoc payments in advance

Category 2: Donations and other support for activities as a Member of Parliament

Threshold for registration

Requirements for registration: Category 2(a) and 2(b)

16. This category has two parts:

Category 2(a): support received by a local party organisation or indirectly via a central party organisation.55 A Member must register under this sub-category support received by his or her constituency party organisation or which he or she receives via a central party organisation if there was a clear link between the donation and him or her; for example, if it was given to a such an organisation with a wish that it be allocated to him or her, to his or her fighting fund or to a front bench office which he or she held; if it was assigned to him or her in circumstances where he or she was aware, or could reasonably be expected to be aware, of the identity of the donor; or if he or she had invited or encouraged the donation;

54 The terms “donations” and “support”, as used in this chapter, include both financial support and support in kind. 55 Defined as a registered political party or an accounting unit of such a party.

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Category 2(b): any other support received by a Member. This includes support received indirectly, for example via a political club.56 Before accepting any donations registrable under this category, Members must check that they are from a permissible donor. Under the Political Parties, Elections and Referendums Act, Members must not accept impermissible donations and must notify the Electoral Commission within 30 days of receipt.57

17. Under this category Members must register: a) Financial support and sponsorship; b) Loans and credit arrangements; c) Support in kind, including any of the following, if provided either free or at concessionary rates: advice or information services; receptions and events; training or development for the Member or his or her staff; the services of staff or interns; the provision of office space or equipment; hospitality or travel benefits such as season tickets or parking; 58 a) Bequests; b) Gifts of property.

18. Members should not register under this category: a) Direct support from the Member’s own party organisation; b) Trade union support for a constituency party organisation, where this is linked to the constituency and would be provided irrespective of the identity of the Member; c) Facilities, equipment or services provided by Parliament, or for which the Member claimed under a scheme for parliamentary expenses; and loans or credit arrangements taken out in order to fund activities for which the Member may claim expenses under a scheme for parliamentary expenses; d) Hospitality from UK public bodies, including for example devolved administrations, government departments, the armed services or the police, or local or health authorities. If there is any doubt as to the permissibility of such donors, Members should consult the Electoral Commission;59 e) The hours contributed by volunteers (unless funded by another body); f) Any money or support provided out of public funds for the Member’s security; g) Participation in developmental and secondment programmes, such as those operated by the Industry and Parliament Trust, the Armed Services Parliamentary Scheme and the Police Service Parliamentary Scheme, which are approved by the parliamentary authorities;60

56 A political club is not a registered political party or an accounting unit of such a party. It is likely to be a Members’ association under PPERA, defined as an organisation separate from, but which may be affiliated to, registered parties, but whose members come mainly from one party. 57 For an explanation of a permissible donor see the end of this section. Please contact the Electoral Commission for further advice on checking permissibility and how to report and return an impermissible donation: tel 0207 271 0616. Members must check the permissibility of all donations with a value of £500 or more. Members have 30 days from receipt of the donation to check that the donor is permissible and decide whether or not to accept it. If the donor is not a permissible source then the Member must return the donation and notify the Electoral Commission within the 30 days. Responsibility for checking the permissibility of donations registered under category 2(a) rests with the relevant party organisation. 58 A concessionary rate should be valued by reference to the nearest equivalent commercial rate. 59 Tel 020 7 271 0616. See also the list of permissible donors. 60 Incidental benefits such as gifts or visits do however require registration under categories 3, 4 or 5 if they are received in the course of such a fellowship or secondment.

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h) Donations or gifts which are intended to provide personal benefit, which should be registered if necessary under Category 3: gift, benefits and hospitality from UK sources or Category 5: gifts and benefits from sources outside the UK; i) Foreign visits, which should be registered if necessary under Category 4: Visits outside the UK; j) Donations or other support received in a Member’s capacity as a Minister, which should be recorded, if necessary, within the relevant Government Department in accordance with the Ministerial Code.

19. Members are required to provide the following information: a) The name and address of the donor and (if the donation was received indirectly) of the organisation acting as intermediary;61 b) The amount of the donation, or its nature and value if it is a donation in kind;62 c) Category 2(b) only: the dates of receipt63 and acceptance; d) The status of the donor (whether an individual, building society, friendly society, LLP, registered party (other than the Member’s own party), trade union, unincorporated association or company, in which case the company registration number is required); e) If the donor is a trust, the name and address of the person who created the trust; if created after 27 July 1999, the names and addresses of all others who have transferred property to the trust, or, if created before 27 July 1999, the date it was created; f) If the donation is by means of a bequest, the name and last address of the person who made the bequest, or, if that address is not listed in an electoral register, the last address where that person was registered in the previous five years.

Permissible donors

• an individual registered in a UK electoral register (or a bequest from such an individual);

• a UK registered company which is incorporated within the EU and carries on business in the UK;

• a Great Britain registered political party;64

• a UK registered trade union;

• a UK registered building society;

61 Private addresses will not be published. 62 When registering any income from fundraising, for example by local party organisations or political clubs, Members should give the net figure (i.e. the surplus generated by the fundraising after costs are deducted) along with details of any individual donation which exceeded the financial threshold, and the relevant donor. If the funds were raised for more than one Member, each should register as if he or she was the sole beneficiary. 63 Subscriptions, memberships and staff secondments are generally regarded as received on their start dates. 64 Northern Ireland parties are not included as permissible donors because of the different rules on donations to which they are subject.

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• a UK registered limited liability partnership that carries on business in the UK;

• a UK registered friendly society;

• a UK based unincorporated association that carries on business or other activities in the UK.

21. In addition, certain trusts may be permissible as donors, but not as lenders or providers of security or credit. Local councils are not permissible donors or lenders.

Category 3: Gifts, benefits and hospitality from UK sources

Threshold for registration

Requirements for registration

23. Under this category Members must register:

Any benefits which relate in any way to their membership of the House or political activities, if provided by a UK source either free or at concessionary rates, including:66

a) event or travel tickets;67

b) hospitality in the UK, including receptions, meals and accommodation;;

c) gifts such as clothing or jewellery;

d) club subscriptions and memberships;

e) loans or credit arrangements;

f) discount cards.

See paragraph 27 below for guidance on the registration of benefits given to others.

24. Before accepting any benefit over £500 which would require registration in this category, (including a credit facility or a loan which exceeds £500 in value) Members are required to satisfy themselves that it is from a permissible donor, and to notify the Electoral Commission within 30 days of any impermissible donations. 68

65 Subsequent references to benefits in this category include gifts and hospitality. 66 A concessionary rate should be valued by reference to the nearest equivalent commercial rate. 67 International travel and hospitality received abroad should normally be registered under Category 4: Visits outside the UK. 68 For an explanation of a permissible donor see the end of the section on Category 2. Advice is available from the Electoral Commission, tel 020 7 271 0616.

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b) Hospitality from UK public bodies, including for example devolved administrations, government departments, the armed services or the police, or local or health authorities. If there is any doubt as to the permissibility of such donors, the Member should consult the Electoral Commission;69 c) Benefits received in recognition of a service performed by a Member, e.g. after giving a speech. If these benefits would not have been received had this service not been performed, they should be registered under Category 1: Employment and earnings; d) Donations or other assistance given to a Member to support his or her parliamentary or political activities, or for candidacy at an election for parliamentary or non-parliamentary office, which should be registered under Category 2: Donations and other support for activities as a Member of Parliament; e) Foreign visits, including international travel and hospitality received outside the UK (even if funded by UK sources), which should be registered under Category 4: Visits outside the UK; f) Other benefits from sources outside the UK, which should be registered under Category 5: Gifts and benefits from sources outside the UK.

26. Members are required to provide the following information: a) The name and address of the donor;70 b) The amount of the donation, or its nature and value if it is a donation in kind; c) The dates of receipt71 and acceptance; d) The status of the donor (whether an individual, building society, friendly society, LLP, registered party (other than the Member’s own party), trade union, unincorporated association or company, in which case the company registration number is required); e) If the donor is a trust, the name and address of the person who created the trust; if created after 27 July 1999, the names and addresses of all others who have transferred property to the trust, or, if created before 27 July 1999, the date it was created; f) If the donation is by means of a bequest, the name and last address of the person who made the bequest, or, if that address is not listed in an electoral register, the last address where that person was registered in the previous five years.

Benefits given to other people or organisations

Benefits received during a parliamentary attachment

69 Tel 020 7 271 0616. See also the list of permissible donors under Category 2 of this Guide. 70 Private addresses will not be published. 71 Subscriptions, memberships and staff secondments are generally regarded as received on their start dates.

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Benefits received as a member of an All-Party Group

29. Groups themselves must register any benefit which exceeds the relevant threshold set out in the Guide to the Rules for All-Party Groups (over £1,500 in 2012-13, either as a single donation or as multiple donations of over £500). Each Member benefiting should also include in their Register entry details of any benefit to them from a UK source which exceeds the threshold for the Members’ Register. If the ultimate donor is identifiable, Members should give their details, as well as naming the Group.

Legal funds

Category 4: Visits outside the UK

Threshold for registration

Requirements for registration

33. Under this category Members must register:

34. See paragraph 37 below for guidance on the circumstances in which visits by others may require registration; and paragraph 38 for visits undertaken as part of an All-Party Group.

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d) Visits undertaken on behalf of, or funded by, HM Government, or an international organisation to which the United Kingdom Government belongs, such as the EU or a political group of the European Parliament; e) Visits undertaken on behalf of or under the auspices of the Commonwealth Parliamentary Association, the Inter-Parliamentary Union, the British American Parliamentary Group, the British-Irish Parliamentary Assembly, the Council of Europe, the Western European Union, the Westminster Foundation for Democracy, the NATO parliamentary assembly, or the Organization for Security and Co- operation in Europe Parliamentary Assembly; f) Visits funded to an extent which goes significantly beyond reimbursement of the costs incurred. Such visits should be registered (subject to the relevant threshold) under Category 2: Donations and other support for activities as a Member of Parliament; g) Visits undertaken for the purpose of outside employment, including for example giving a speech. If the reason for meeting the Member’s expenses lies in that outside employment and the Member received any remuneration or taxable expenses, the visit should be registered under Category 1: Employment and earnings.

36. Members are required to provide the following information: a) The name and address of the person or organisation funding the visit;72 b) The amount of any payment, and/or the nature and value of any donation in kind such as flights or accommodation; c) The destination of the visit; d) The date(s) of the visit; e) The purpose of the visit.

Visits by others

Visits undertaken through an All-Party Group

Category 5: Gifts and benefits from sources outside the UK

Threshold for registration

72 Private addresses will not be published. 73 Subject to the relevant thresholds, Members’ staff who hold parliamentary passes as secretaries or research assistants should also register their visits in the Register of Members’ Secretaries and Research Assistants.

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Requirements for registration

40. Under this category Members must register:

Any benefits which relate in any way to their membership of the House or parliamentary or political activities, if provided by a source outside the UK either free or at concessionary rates, including:75 a) event or travel tickets;76 b) hospitality in the UK, including receptions, meals and accommodation;77 c) gifts such as clothing or jewellery; d) club subscriptions and memberships; e) loans or credit arrangements; f) discount cards etc.

41. See paragraph 44 below for guidance on the circumstances in which benefits given to others must be registered.

42. Members should not register under this category: a) Benefits which could not reasonably be thought by others to be related to membership of the House or to the Member’s parliamentary or political activities, for example purely personal gifts or benefits from partners or family members, or loans or mortgage arrangements on commercial terms. However, both the possible motive of the giver and the use to which the gift is to be put should be considered. If there is any doubt, the benefit should be registered; b) Benefits received in recognition of services performed by a Member, e.g. after giving a speech. If these benefits would not have been received had the Member not performed that service, they should be registered under Category 1: Employment and earnings; c) Donations or other assistance given to a Member to support his or her parliamentary or political activities, or for candidacy at an election for parliamentary or non-parliamentary office, which (if permissible) should be registered under Category 2: Donations and other support for activities as a Member of Parliament. NB: There are legal restrictions on acceptance of benefits from sources outside the UK which amount to such support for a Member of Parliament, and before accepting any such support of more than £500 (including a credit facility or a loan which exceeds £500 in value) Members are required to satisfy themselves that it is from a permissible donor, and to notify the Electoral Commission within 30 days of any impermissible donations.78

43. Members are required to provide the following information:

74 Subsequent references to benefits in this category include gifts and hospitality. 75 A concessionary rate should be valued by reference to the nearest equivalent commercial rate. 76 International travel and hospitality received abroad should normally be registered under Category 4: Visits outside the UK. 77 See footnote above. 78 For an explanation of a permissible donor see the section on Category 2. The Electoral Commission can advise on the permissibility of donors, tel 020 7 271 0616 .

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a) The name and address of the donor;79 b) The amount of the donation, or its nature and value if it is a donation in kind; c) The dates of receipt80 and acceptance; d) The status of the donor (whether an individual, building society, friendly society, LLP, registered party (other than the Member’s own party), trade union unincorporated association or company, in which case the company registration number (if any) is required); e) If the donor is a trust, the name and address of the person who created the trust; if created after 27 July 1999, the names and addresses of all others who have transferred property to the trust, or, if created before 27 July 1999, the date it was created; f) If the donation is by means of a bequest, the name and last address of the person who made the bequest, or, if that address is not listed in an electoral register, the last address where that person was registered in the previous five years.

Benefits given to other people or organisations

Benefits received during a parliamentary attachment

Benefits received as a member of an All-Party Group

46. Groups themselves must register any benefit which exceeds the relevant threshold set out in the Guide to the Rules for All-Party Groups (over £1,500 in 2012-13, either as a single donation or as multiple donations of over £500). Each Member benefiting should register any benefit to them from a source outside the UK which exceeds the threshold for the Members’ Register. If the ultimate donor is identifiable, Members should give their details, as well as naming the Group.

Category 6: Land and property

Threshold for registration

47. Members must register, subject to the paragraphs below, any land or property in the UK or elsewhere which:

i. has a value of more than £100,000; or forms part of a total property portfolio whose value exceeds £100,000; and/or

ii. alone or together with other properties owned by the Member, provides rental income of more than £10,000 in a calendar year.

79 Private addresses will not be published. 80 Subscriptions, memberships and staff secondments are generally regarded as received on their start dates.

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Requirements for registration

48. Under this category Members must register: a) Land or property which they own or hold, either by themselves or with or on behalf of their spouse, partner or dependent children.81

49. Members should not register under this category: a) Any land or property which is used wholly for their own personal residential purposes, or those of their spouse, partner or dependent children.

Category 7: Shareholdings

Threshold for registration

51. Members must register, subject to the paragraphs below, any holdings which:

(i) amount to more than 15% of the issued share capital of that company, or more than 15% of a partnership;

(ii) are valued at more than £70,000.83

Requirements for registration

52. Under this category Members must register: a) Shareholdings or share options which they hold, either by themselves or with or on behalf of their spouse, partner or dependent children. This includes any shares which are managed by a trust (other than a blind trust84 or similar delegated management arrangement) and any holdings in sector-specific vehicles;

81 This includes land and property of registrable value which is held in trust for the Member, for example as part of a self-invested personal pension. 82 If the value of the land or property is close to the threshold for registration, the Member should periodically check its value and, if it exceeds the threshold, should register it within 28 days of the date of that valuation. 83 Holdings should be valued as at the previous 5 April. If this is not possible, the Member should make their best estimate of the value on that date and register the holding within 28 days of the 5 April valuation. Holdings which fall below the registrable thresholds but meet the test of relevance should be registered under Category 8: Miscellaneous. 84 For a trust to be regarded as a blind trust the Member must not know details of how their assets are invested or give trustees instructions about specific investments. They may however give general directions about the nature of investments when the trust is established, may receive reports on its overall performance and may realise some or all of its assets. In certain circumstances there may be a requirement to declare a blind trust. See paragraph 4 of chapter 2 for more details.

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b) Interests in LLPs or other partnerships.

53. Members should not register under this category: a) Holdings in collective investment vehicles such as unit trusts, investment companies with variable capital (ICVCs) and investment trusts; b) Assets held in blind trusts;85 c) Pensions (except for property held for self-invested personal pensions).

Category 8: Miscellaneous

Requirements for registration

55. Under this category Members must register: a) Any relevant financial interest or material benefit which does not clearly fall into one of the other categories, including any shareholding which falls below the relevant threshold, or any other financial asset, including an asset held in trust, if the Member nevertheless considers that it meets the test of relevance; in other words, that it might reasonably be thought by others to influence his or her actions or words as a Member; and b) Any other interest, if the Member considers that it might reasonably be thought by others to influence his or her actions or words as a Member in the same way as a financial interest. This might include an unpaid employment or directorship, or directorship of a company not currently trading, non-practising membership of a profession, or a fund established to defray legal costs arising out of the Member’s work, but from which no benefit has yet been received.

85 See footnote above. 86 Existing holdings should be valued as at the previous 5 April. If this is not possible, the Member should make their best estimate of the value on that date and register the holding within 28 days of their valuation, the date of which should be given.

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Category 9: Family members employed

Threshold for registration

Requirements for registration

58. Under this category Members must register:

59. Members are required to provide the following information:

a) The name of any family members employed and paid from parliamentary expenses;

b) Their relationship to the Member;

c) Their job title;

d) Whether they work part time.

Category 10: Family members engaged in lobbying

Requirements for registration

60. Under this category Members must register: a) Details of any of their family members involved in lobbying the public sector; 87 and b) Details of the clients of any such family members if they are aware, or could reasonably be expected to be aware, of the involvement of the family member in such a lobbying activity.

62. Members are required to provide the following information:

a) The name of any family members involved in lobbying;

b) Their relationship to the Member;

c) Their job title;

d) The name of their company or employer, if any;

87 Family members are defined as under Category 9. See paragraph 58 above.

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e) The name and address of any client to whom the Member’s family member has provided services.

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Chapter 2: Declaration of Members’ Interests

Requirements of the House

1. Paragraph 13 of the Code of Conduct for Members of Parliament provides:

Requirements for declaration

4. Members are required, subject to the paragraphs below, to declare any financial interests which satisfy the test of relevance, including: a) past financial interests (normally limited to those active within the last twelve months); b) indirect financial interests, such as the financial interests of a spouse or partner, or another family member, if the Member is aware or could reasonably be expected to be aware of that interest. It is not necessary to identify the person concerned: a formula such as “A member of my family has a financial interest in [ ]”will usually suffice. The definition of a family member is as under Category 9 of the Register;89 c) expected future interests, if the Member’s plans have moved beyond vague hopes and aspirations and reached the stage where the Member has a reasonable expectation that a financial benefit will accrue; d) financial interests of a sort which do not require registration, including for example blind trusts,90 and interests which fall below the financial thresholds; e) financial interests which require registration but have not yet appeared in the published Register; f) any registered non-financial interests.

Members may also declare, if they think it appropriate, non-financial interests which are not registered but which they consider meet the test of relevance.

88 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885 89 See paragraph 58 of Chapter 1 of this Guide. 90 Members should be aware that existence of a blind trust may be declarable for example during proceedings concerning legislation which would affect such trusts. In addition, if a Member is aware that the trust invests in a particular sector he or she may need to declare that where relevant.

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5. The test of relevance is whether those interests might reasonably be thought by others to influence his or her actions or words as a Member.

Occasions when declaration is required

7. Subject to paragraphs 1 to 6 of this chapter, Members must declare a relevant interest: a) In the Chamber and in general committees:

i. when speaking in a debate;

A Member nominated by the Committee of Selection to serve on a Committee on an Opposed Private Bill must sign a declaration that "my constituents have no local interest, and I have no personal interest, in the said Bill."91 Advice is available from the Clerk of Bills. c) In Select Committees:

i. at the Committee’s first meeting. Members must provide details of any registered financial interests, and of any non-registrable interests which meet the test of relevance.92 These are circulated under the authority of the Chair (if elected by the House) or in other cases the senior Member before the Committee’s first meeting. Members who do not attend the Committee’s first meeting must make their declaration at the beginning of the first meeting they do attend;

ii. when the Committee is deciding on the subject of an inquiry;

iii. at the beginning of any inquiry to which their interest particularly relates;

91 Standing Order 120 refers. 92 The test of relevance is set out in paragraph 5 of this chapter.

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These declarations will be recorded in the Committee’s proceedings.

v. when applying for an adjournment debate. Members must inform the Table Office of any relevant interests;

vii. when standing for election as chair of a Select Committee. The Member’s full Register entry is published with his or her nomination.

When an interest is declared, the symbol [R] (for ‘Relevant Interest Declared’) will normally be printed on the relevant Notice Paper or Order Paper. If it is not readily apparent which of the Member’s interests is relevant, he or she should provide an explanatory note which will then be made available for inspection. e) When approaching others:

Members must declare a relevant interest in any communication, formal or informal, with those who are responsible for matters of public policy, public expenditure or the delivery of public services.95 That includes communications with Ministers, either alone or as part of a delegation: with other Members; with public officials (including the staff of government departments or agencies and public office holders). If those communications are in writing, then the declaration should be in writing too; otherwise it should be oral.

93 Further guidance on select committees, including restrictions on the activities of Chairs, is available in the Guide for Select Committee Members: http://intranet.parliament.uk/Documents/intranet/offices-departments/assets/guide- %20for-select-Ctte-members-june10.pdf 94 There is also no need to declare an interest when asking a Supplementary Question. 95 The test of relevance is set out in paragraph 5 of this chapter.

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f) When booking facilities on the parliamentary estate.

Members who book private dining rooms or any other rooms through the Facilities Department for the purpose of holding a function must indicate on the booking form if they have a relevant interest. This requirement applies if the function is on behalf of an outside organisation other than the Member’s political party. Members who have such an interest must also indicate this on the invitations to their event. For this purpose a function is where food and drink is provided: a declaration is not necessary when booking a room simply for a meeting or presentation.

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Chapter 3: Lobbying for reward or consideration

Requirements of the House

1. Paragraph 11 of the Code of Conduct for Members of Parliament provides:

11. No Member shall act as a paid advocate in any proceeding of the House.96

Members may not, therefore, speak in the House, vote, initiate parliamentary proceedings or urge Ministers or other Members to do so in return for outside reward or consideration.

Lobbying

2. The rules place the following restrictions on Members: a) When initiating proceedings or approaches to Ministers, other Members or public officials. Members must not engage in lobbying by initiating a proceeding or approach which seeks to confer, or would have the effect of conferring, any financial or material benefit on a person from whom or organisation from which they, or a family member, have received, are receiving, or expect to receive outside reward or consideration, or on a registrable client of such a person or organisation; b) When participating in proceedings or approaches to Ministers, other Members or public officials. Members may lobby by participating in such proceedings or approaches which would confer a financial or material benefit on the person from whom or organisation from which they, or a family member, have received, are receiving or expect to receive outside reward or consideration (or on a registrable client of such a person or organisation) provided that they have not initiated those proceedings or approaches and their approach or participation does not seek to confer, and could not have the effect of conferring, benefit exclusively on that person or organisation (or on their client) and provided that that person or organisation (or their client) has not initiated the event.

3. The lobbying rules do not prevent a Member holding a paid outside interest as a director, consultant, or adviser, or in any other capacity, whether or not such interests are related to membership of the House. By convention, however, interests which are wholly personal and particular to the Member, and which may arise from a profession or occupation outside the House, ought not to be pursued by the Member in proceedings in Parliament.

Definitions

4. Initiating a proceeding of the House includes: a) presenting a Bill; b) presenting a Petition; c) tabling and asking a Parliamentary Question; d) asking a supplementary question to the Member’s own Question; e) initiating, or seeking to initiate an adjournment (or other) debate; f) tabling or moving any motion (e.g. an “Early Day Motion”, a motion for leave to introduce a Bill under the “Ten Minute Rule” or a motion “blocking” a Private Bill); g) tabling or moving an Amendment to a Bill; h) proposing a draft Report, or moving an Amendment to a draft Report, in a Select Committee;

96 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885

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i) giving any written notice, or adding a name to such notice, or making an application for and introducing a daily adjournment debate, or emergency debate.

5. Participating in a proceeding of the House includes: a) making a speech in the House, in Committee of the whole House, in Westminster Hall or in a general committee; b) making an intervention in a debate or asking a supplementary question to a Question, statement or other proceeding; c) asking a question in a Select Committee when taking formal evidence.

6. Outside reward or consideration includes: a) past financial interests or benefits, including “one-off” registrable interests, such as visits and gifts, and continuing benefits such as directorships, employment and sponsorships. The restrictions under the lobbying rules apply for six months after the benefit was received, regardless of what form the benefit took. A Member can free him- or herself immediately of any restrictions due to a past benefit by repaying the full value of any benefit received from the outside person or organisation in the preceding six month period. b) all present financial interests or benefits which must be either registered or declared; c) future financial interests or benefits, where a Member has a reasonable expectation, beyond vague hopes and aspirations, that a financial benefit will accrue in the future.

7. Outside reward or consideration does not include: a) any non-financial interest or benefit, even though this may be registered or declarable; b) any payment to someone from the Member’s family which arises out of that person’s own occupation. This is not regarded as a benefit for the purposes of the lobbying rule, although it may be declarable.97

8. Outside reward or consideration received by a family member includes: a) outside reward or consideration defined as above; b) a family member is defined as under registration Category 9 (see paragraph 58 of Chapter 1 of this Guide). The lobbying restriction arising from the receipt of outside reward or consideration by a family member applies only when the Member knows or could reasonably be expected to know of such receipt.

9. Public officials include: a) all those who are responsible for matters of public policy, public expenditure or the delivery of public services. It therefore includes all staff of government departments and agencies and public office holders.

10. Making any approach to a Minister, other Member or public official includes: a) participating in or accompanying a delegation or group to discussions or meetings, whether these are formal or informal in nature.

Application of the lobbying rules

Matters outside the lobbying rules

11. The following fall outside the lobbying rules:

97 The definition of a family member is as under registration Category 9; see paragraph 58 of Chapter 1 of this Guide.

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a) Ministers: Members who are acting in the House as government Ministers are not subject to these rules when acting in that capacity. b) Other elected bodies: Membership of other specified elected bodies shall not be taken into account when applying this rule. These bodies comprise: the Scottish Parliament; the National Assembly for Wales; the Northern Ireland Assembly; the European Parliament; and local authorities in the United Kingdom. c) Constituency issues: Members may pursue any constituency interest in any approach to a Minister or public official, subject to the registration and declaration rules. NB: The lobbying rules do apply, however, in respect of Members initiating any proceeding of the House on behalf of a person or organisation in their constituency from whom or from which they, or a family member, receive, have received or expect to receive outside reward or consideration. d) Trade union sponsorship: The rules do not prohibit Members being sponsored by a trade union or any other organisation, subject to the rules on registration and declaration. e) Other associations and charities: Membership alone (i.e. without remuneration) of a trade association, staff association, professional body, charity or other similar representative organisation is not taken into account when applying the lobbying rules. Members who are remunerated advisers to representative organisations, may support a campaign which is of particular interest to that organisation provided that they do not initiate a parliamentary proceeding or approach to Ministers, other Members or public officials seeking to confer any financial or material benefit for the benefit of that organisation or participate in such proceedings or approaches for the exclusive benefit of that organisation or its membership. f) Private Members’ Bills: Private Members (including those successful in the Ballot for Bills) are not prevented from introducing and proceeding with a Bill by reason of the fact that they receive free or subsidised assistance from an organisation connected with the purposes of the Bill, provided the Member had no pre-existing financial relationship with the organisation which is registered, or is required to be registered.

Former Members

12. Former Members must abide by the restrictions of the lobbying rules for two years after their departure from the House in respect of any approach they make to Ministers, Members or public officials. During that period former Members must register with the Parliamentary Commissioner for Standards any occupation or employment for which they receive reward or consideration which involves them or their employer in contact with Ministers, Members or public officials. This registration must be made within 28 days of the occupation or employment being accepted. Former Members may not use their privileged parliamentary pass for the purposes of lobbying on the parliamentary estate.

13. These provisions do not apply to former Members who are Members of the House of Lords.

Hospitality from foreign governments and visits outside the UK

14. Members may not initiate any parliamentary proceeding or approach to a Minister, other Member or public official which seeks to confer, or would have the effect of conferring, any financial or material benefit on a foreign government, non-governmental organisation (NGO) or other agency which has, within the previous six months, funded a visit they have undertaken or provided them with hospitality. 98

15. Members may, having declared their interest, participate in parliamentary proceedings or approaches to Ministers, other Members or public officials which they have not initiated and which relate to a country from which they have received hospitality or where a foreign government has funded their visit, provided that their

98 Subject to the provisions in paragraph 6(a) above which enable a Member to free him- or herself of a past benefit.

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participation does not seek to confer benefit exclusively on that government or organisation. They may, therefore, raise matters relating to the problems of the country generally, or make use of any local insight they have obtained into national or regional problems or information they have obtained on local developments or initiatives. Similarly, a Member whose visit was funded by an NGO or other agency may speak about its work or the problems it was dealing with.

Points of Order

16. The Speaker has declined to receive points of order relating to registration or lobbying.99

99 Select Committee on Standards in Public Life, Second Report, Session 1994-95, HC 816, paragraph 26 and e.g. HC Deb, vol 276, col 605 and vol 277, cols 767-68

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Chapter 4: Procedure for Inquiries

Requirements of the House

1. Paragraphs 18 and 19 of the Code of Conduct provide:

2. The Parliamentary Commissioner for Standards:

• considers complaints alleging that a Member of Parliament has breached the Code of Conduct and its associated rules; and

• if he or she thinks fit, investigates specific matters which have come to his or her attention relating to the conduct of a Member; and

• exceptionally inquires into a matter referred to the Commissioner by a Member in relation to his or her own conduct.

3. In all cases, the Commissioner will only initiate an inquiry if he or she is satisfied that the evidence put before the Commissioner is sufficient to justify such an inquiry. It is not sufficient to make an unsubstantiated allegation and expect the Commissioner to look for any supporting evidence.101 The receipt of a complaint or the initiation of an inquiry by the Commissioner does not imply that there has been a breach of the rules of the House.

4. Details of the Commissioner’s current inquiries are provided monthly on the Commissioner’s webpages.102

Submitting a complaint

100 The Code of Conduct together with the Guide to the Rules relating to the conduct of Members 2012, HC 1885 101 Select Committee on Members’ Interests, First Report of Session 1992-93, HC 383, paragraph 4 102 http://www.parliament.uk/mps-lords-and-offices/standards-and-interests/pcfs/publications/inquiries/current-inquiries/

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c) make clear in what respect the complainant believes that the Member may have breached the Code of Conduct and its associated rules. Allegations should be supported by sufficient evidence to justify the initiation of an inquiry.

7. It is a basic courtesy that a Member making a complaint to the Commissioner should at the same time send a copy of the letter of complaint to the Member concerned.

8. Further guidance on the complaints procedure is available in the Commissioner’s procedural note, which can be found on the parliamentary webpages.103

Parliamentary privilege

9. Communications between a member of the public and the Commissioner are not covered by parliamentary privilege unless and until the Commissioner has accepted the matter for inquiry.

Initiating an inquiry

12. If, in the Commissioner’s view, he or she has received, from the complainant or otherwise, sufficient evidence to justify the initiation of an inquiry into whether a named Member has breached the Code of Conduct or its associated rules the Commissioner will institute such an inquiry. That decision is made by the Commissioner. If the Commissioner considers that an inquiry would be disproportionate given the nature and seriousness of the allegation made, the Commissioner may decide not to inquire into that matter. If the Commissioner considers the evidence received is insufficient to justify an inquiry, or the matter falls outside the Commissioner’s remit, he or she will so decide and inform any complainant. The Commissioner will report briefly to the Committee on the consideration of all formal complaints and allegations submitted.

Resolution of inquiries: Parliamentary Commissioner for Standards

14. Under the Code of Conduct Members are required to cooperate with any inquiry into their conduct.104 Members must also not lobby the Committee or the Commissioner in a manner calculated to influence their consideration of the matter.

103 The procedural note has been approved by the Committee on Standards and Privileges and issued by the Commissioner. http://www.parliament.uk/mps-lords-and-offices/standards-andinterests/pcfs/publications/inquiries/complaints-process/ 104 The Code of Conduct together with the Rules relating to the Conduct of Members, Session 2010–12, HC 1885 105 http://www.parliament.uk/mps-lords-and-offices/standards-and-interests/pcfs/publications/inquiries/matters-not- upheld/

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into an allegation which the Commissioner proposes should not be upheld. This may be because of the particular seriousness of the allegation or because the inquiry raises matters of wider interest or relevance. The Committee will then consider the Commissioner’s conclusions and submit its own report to the House.

16. Under Standing Order No. 150 the Commissioner may decide that the matter can be resolved through the rectification procedure.106 If so, and the Member agrees and apologises, the Commissioner will determine the matter on that basis and report the fact briefly to the Committee. The determination letter and the evidence associated with that inquiry will be published on the Commissioner’s webpages.107 In the case of non- registration, rectification requires a belated entry in the current Register in bold italic type with an appropriate explanatory note.108 In the case of non-declaration, it requires an apology to the House by means of a point of order in accordance with the procedure established for such apologies by the Speaker. In cases involving parliamentary facilities or resources, the rectification procedure normally requires the Member to make any repayment or other relevant rectification.

Resolution of inquiries: Committee on Standards and Privileges

a) a written apology;

b) for relatively minor failures to declare interests, an apology on the floor of the House by means of a point of order;

c) an apology on the floor of the House by means of a personal statement;

d) for non-Members, withdrawal of Parliamentary passes, either indefinitely or for a fixed period;

e) suspension from the service of the House for a specified number of sitting days (during which time the Member receives no salary and must withdraw from the precincts of the House.)

106 Standing Order No. 150(3) 107 http://www.parliament.uk/mps-lords-and-offices/standards-and-interests/pcfs/publications/inquiries/matters- rectifiied/ 108 A rectified entry remains in the Register in that form for 12 months or until the next printed edition, whichever is the later.

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21. The Committee may also report to the House on other matters referred to it by the Commissioner.

Remit of the Parliamentary Commissioner for Standards

109 The Code of Conduct together with the Rules relating to the Conduct of Members, Session 2010–12, HC 1885, paragraph 17

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Annex 3: List of respondents to consultation

Standards of Conduct Committee, National Assembly for Wales Rt Hon Jack Straw MP Industry and Parliament Trust Committee on Standards and Privileges, Northern Ireland Assembly Clerk of the House of Commons and Chief Executive The Electoral Commission Police Service Parliamentary Scheme Armed Forces Parliamentary Scheme Professor Sir Ian Kennedy, Chair, Independent Parliamentary Standards Authority Transparency International, UK Public Standards Commissioner for Scotland Committee on Standards in Public Life Rt Hon Sir George Young MP, Leader of the House of Commons

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Annex 4: Example of new register entry in Category 1: Employment and Earnings

This sample register entry shows how new style entries might look in this category if the Commissioner’s recommendations are accepted.

Name of Member (constituency)

Category 1: Employment and Earnings

Company A, [address]; director and chairman; company specialising in oil exploration. Engaged at £1,000 a month for 2 years from 1 January 2012. Hours: 10 hrs a month. (Registered on 13 January 2012)

Company B, [address]; consultant advising clients on general management. Received £4,000 on 4 April 2012 for advising [client’s name and address]. Hours: 25 hrs. (Registered on 5 April 2012) Received £2,000 on 26 June 2012 for advising [client’s name and address]. Hours: 25 hrs. (Registered on 28 June 2012)

Company C, of [address]; employed as mediator. Received £1,000 on 10 May 2012 for confidential work with clients. Hours: 25 hrs. (Registered on 18 May 2012) 19 June 2012, invoiced for £1,000 for confidential work with clients, completed 19 June 2012. Hours: 25 hrs. (Registered on 21 June 2012)

Company D [address]; employed to advise the company on general management. Engaged at £1,274 a month for one year from 1 August 2012. Hours: approx 2 hrs a month, 24 hrs in total. (Registered on 13 August 2012)