Committee for Privileges and Conduct
4th Report of Session 2016–17
The conduct of Lord Mandelson (No. 2)
Ordered to be printed 18 October 2016
Published by the Authority of the House of Lords
HL Paper 52 The Committee for Privileges and Conduct The Committee for Privileges and Conduct is appointed each session by the House to consider questions regarding its privileges and claims of peerage and precedence and to oversee the operation of the Code of Conduct. Detailed consideration of matters relating to the Code of Conduct is undertaken by the Sub- Committee on Lords’ Conduct.
Current membership The members of the Committee for Privileges and Conduct are: Lord Bassam of Brighton Lord Brown of Eaton-under-Heywood Earl Cathcart Lord Dear Lord Eames Baroness Evans of Bowes Park Lord Hope of Craighead Lord Irvine of Lairg Baroness Jay of Paddington Lord Mackay of Clashfern Lord McFall of Alcluith (Chairman) Lord Newby Baroness Smith of Basildon Lord Taylor of Holbeach Viscount Ullswater Lord Wallace of Tankerness
The members of the Sub-Committee on Lords’ Conduct are: Lord Brown of Eaton-under-Heywood (Chairman) Lord Cope of Berkeley Lord Dholakia Lord Irvine of Lairg Baroness O’Neill of Bengarve
The Code of Conduct and the up-to-date Register of Lords’ Interests are on the internet at: http://www.publications.parliament.uk/pa/ld/ldreg.htm
General information Further information about the House of Lords and its Committees, including guidance to witnesses, details of current inquiries and forthcoming meetings is available at: http://www.parliament.uk/business/lords
Contacts General correspondence should be addressed to the Clerk of the Committee for Privileges and Conduct, House of Lords, London SW1A 0PW (telephone 020 7219 8796). Correspondence relating to the work of the Sub-Committee on Lords’ Conduct should be addressed to the Clerk of the Sub-Committee on Lords’ Conduct, House of Lords, London, SW1A 0PW (telephone 020 7219 5307). CONTENTS
Page Report from the Committee for Privileges and Conduct 3 Annex 1: Report from the Commissioner for Standards 4 Summary of the complaint 4 Key facts and Lord Mandelson’s response 4 Findings 5 Appendix A: Letter from Mr Richard Heller to the Commissioner for Standards, 31 May 2016 6 Appendix B: Letter from the Commissioner for Standards to Lord Mandelson, 10 June 2016 6 Appendix C: Letter from Lord Mandelson to the Commissioner for Standards, 10 June 2016 7 Appendix D: Letter from the Commissioner for Standards to Lord Mandelson, 14 June 2016 7 Appendix E: Note of a meeting between the Commissioner for Standards and Lord Mandelson, 6 September 2016 10
The conduct of Lord Mandelson (No. 2)
REPORT FROM THE COMMITTEE FOR PRIVILEGES AND CONDUCT
1. The Commissioner for Standards has submitted the attached report on a complaint made about Lord Mandelson. 2. The complainant alleged that Lord Mandelson did not register his non- financial interest as Chancellor of Manchester Metropolitan University within one month of taking up the post, as the Code of Conduct requires. 3. The Commissioner found that Lord Mandelson was not required to register the interest until he was installed as Chancellor and began his duties. Lord Mandelson registered the interest the day after his installation. The Commissioner therefore found that Lord Mandelson did not breach the Code of Conduct. 4. In accordance with paragraph 141 of the Guide to the Code of Conduct we report this case to the House for information. 4 The conduct of Lord Mandelson (No. 2)
Annex 1: REPORT FROM THE COMMISSIONER FOR STANDARDS
Summary of the complaint 1. I received a complaint dated 31 May 2016 from Mr Richard Heller about Lord Mandelson.1 The complainant alleged that Lord Mandelson’s entry in the Register of Lords’ Interests did not include his chancellorship of Manchester Metropolitan University, a post which the complainant alleged he took up on 1 April 2016. 2. I carried out a preliminary assessment of the complaint. In doing so I noted that a page on the university’s website referred to Lord Mandelson being appointed as Chancellor from 1 April 2016. I therefore decided that it was appropriate to investigate the allegation. 3. I wrote to Lord Mandelson on 10 June 2016 inviting him to respond to the allegation.2 He replied on 10 June 2016.3 I wrote further on 14 June 2016.4 Lord Mandelson and I met on 6 September 2016 to discuss the further request for information. A note of that meeting was produced and Lord Mandelson agreed that the note was an accurate account of the meeting.5
Key facts and Lord Mandelson’s response 4. Under paragraph 10(a) of the Code of Conduct6 members must “register in the Register of Lords’ Interests all relevant interests, in order to make clear what are the interests that might reasonably be thought to influence their parliamentary actions”. Interests are registered in 10 categories. In category 10 members must register certain non-financial interests. Paragraph 82(b) of the Guide to the Code requires members to register “membership of public bodies such as … the governing bodies of universities”. 5. Paragraph 13 of the Code of Conduct states that members are responsible for ensuring their registered interests are accurate and up-to-date. It requires members to register any change in their relevant interests within one month of the change. 6. Lord Mandelson registered his position as Chancellor of Manchester Metropolitan University under category 10(b) on 14 June 2016. The issue for me to determine was whether Lord Mandelson should have registered the position within one month of 1 April 2016, and so breached the Code by not registering it until after then. 7. In his letter to me of 10 June 2016 Lord Mandelson stated that he would not be installed as Chancellor until 13 June 2016. He said he would take up his duties after then and would register the interest in the normal way.7 8. In response I alerted Lord Mandelson to three articles on the university’s website, including one dated 13 June 2016 about his installation ceremony,
1 Appendix A. 2 Appendix B. 3 Appendix C. 4 Appendix D. 5 Appendix E. 6 Fifth edition: July 2016 (HL Paper 40). All references to the Code and Guide in this report are to the fifth edition. 7 Appendix C. The conduct of Lord Mandelson (No. 2) 5
which referred to him being appointed to the post from 1 April 2016. I invited Lord Mandelson to comment on this matter.8 9. Lord Mandelson and I met to discuss the case. Lord Mandelson said that after the university asked him to become Chancellor discussions began about when he would take up his duties. The university was naturally keen to announce the appointment, but it was agreed that his functions would not begin until he was installed. Therefore his first day in office was the day of his installation: 13 June 2016.9 The interest was registered the next day.
Findings 10. Members who are university chancellors register the position as a non- financial interest in category 10(b) of the Register of Lords’ Interests. Lord Mandelson duly registered his chancellorship in that category. 11. The purpose of requiring members to register interests is for there to be transparency about the interests members hold or have held.10 It follows that members are required to register new interests within one month of the interest arising, but there is no obligation to register them before then.11 12. Lord Mandelson in his response said that his duties as Chancellor did not begin until his installation on 13 June 2016. Therefore he would not have, for example, undertaken ceremonial or ambassadorial duties until then. It is reasonable to conclude that the interest could not be considered to have arisen before he was formally installed and began to take up his duties. He therefore was correct to register the interest within one month of that (in fact it was registered the following day); he was not obliged to register the interest before then. 13. I find that Lord Mandelson did not breach the Code of Conduct by registering his chancellorship of Manchester Metropolitan University in the Register of Lords’ Interests at the time he did.
Lucy Scott-Moncrieff CBE Commissioner for Standards
8 Appendix D. 9 Appendix E. 10 Expired interests stay on the Register of Lords’ Interests for one year after the member ceases to hold the interest: paragraph 42 of the Guide. 11 Under paragraph 94 of the Guide members may be required to declare relevant future interests if there is a clear prospect that the interest will shortly arise. 6 The conduct of Lord Mandelson (No. 2)
Appendix A: Letter from Mr Richard Heller to the Commissioner for Standards, 31 May 2016 I have just noticed that Lord Mandelson’s entry on the Lords Register of Interests fails to declare the Chancellorship of Manchester Metropolitan University, a post which he took up on 1 April. Clearly, this post should have been registered under Category 10b of the Guide to the Code of Conduct. The appointment was well publicized and Lord Mandelson went to some lengths to acquire it, so I assume that there is no sinister motive for the omission. However, it does suggest that his entry in the Register cannot be relied on by the public.
Appendix B: Letter from the Commissioner for Standards to Lord Mandelson, 10 June 2016 I am writing to you as the new House of Lords Commissioner for Standards. I have to advise you that I have received a complaint against you from Mr Richard Heller. He alleges that you have breached the Code of Conduct by not registering in the Register of Lords’ Interests your position as Chancellor of Manchester Metropolitan University. A copy of the complaint is enclosed. I have carried out a preliminary assessment of the complaint and decided that it would be in the interests of all concerned for me to investigate it. On the basis of the complaint it appears that the following provisions of the Code may have been breached. “10. In order to assist in openness and accountability Members shall: (a) register in the Register of Lords’ Interests all relevant interests, in order to make clear what are the interests that might reasonably be thought to influence their parliamentary actions; … 11. The test of relevant interest is whether the interest might be thought by a reasonable member of the public to influence the way in which a Member of the House of Lords discharges his or her parliamentary duties: in the case of registration, the Member’s parliamentary duties in general; in the case of declaration, his or her duties in respect of the particular matter under discussion. 12. The test of relevant interest is therefore not whether a Member’s actions in Parliament will be influenced by the interest, but whether a reasonable member of the public might think that this might be the case. Relevant interests include both financial and non-financial interests. 13. Members are responsible for ensuring that their registered interests are accurate and up-to-date. They should register any change in their relevant interests within one month of the change.” Paragraphs 83 to 85 of the Guide to the Code of Conduct are also particularly relevant. I further draw your attention to the seven general principles of conduct identified by the Committee on Standards in Public Life and incorporated into the Code of Conduct. The conduct of Lord Mandelson (No. 2) 7
I invite you to respond in writing with a full and accurate account of the matter in question. A response by 30 June 2016 would greatly assist me in investigating this matter in a timely fashion. As an investigation is under way there is a requirement for all evidence and correspondence relating to the case to remain confidential unless and until it is published by the Committee for Privileges and Conduct. In accordance with paragraph 118 of the Guide a webpage on the parliamentary website will include basic information about the case. I enclose and a copy of the Code of Conduct for Members of the House of Lords and Guide to the Code of Conduct (fourth edition: May 2015).
Appendix C: Letter from Lord Mandelson to the Commissioner for Standards, 10 June 2016 Thank you for your letter of today’s date. I am not installed as Chancellor until this coming Monday and take up my duties after then. I will register this in the normal way. Richard Heller is a regular stalker and you will find that you hear from him in the future!
Appendix D: Letter from the Commissioner for Standards to Lord Mandelson, 14 June 2016 Thank you for your letter of 10 June 2016 The Manchester Metropolitan University website contains three articles referring to you being appointed to the position of Chancellor from 1 April 2016. Copies of them are enclosed. I would be grateful for your comments on this matter.
Lord Mandelson appointed Manchester Met Chancellor: set to serve the University from April 201612 Manchester Metropolitan University’s Board of Governors today unanimously agreed to appoint Lord Mandelson to the role of Chancellor for a five-year term, in the first instance, from 1 April 2016, succeeding Dame Dianne Thompson DBE. Lord Mandelson will be formally invested as Chancellor at a ceremony next year. The role of Chancellor is to act as the most senior ambassador and ceremonial head of the University, promoting its mission, vision and values. Lord Mandelson will support the efforts of the University leadership team to be world-class providers of education and research, and to work in partnership with business, industry, public sector and university collaborators, as Manchester occupies an increasingly important place on the world stage. Lord Mandelson has a distinguished track record. He is a former European Trade Commissioner and British First Secretary of State. Prior to this, he was Minister without Portfolio, Secretary of State for Trade and Industry, Northern Ireland Secretary and Secretary of State for Business, Innovation and Skills in the British government. He is now a working peer in the House of Lords, President of the Policy Network think tank, chairman of Global Counsel, a consultancy
12 http://www.mmu.ac.uk/news/news-items/4034/ [accessed 8 September 2016]. 8 The conduct of Lord Mandelson (No. 2) and advisory business he co-founded in 2010 and a senior adviser to Lazard. He became President of the Great Britain China Centre in 2015. Vanda Murray OBE, Pro-Chancellor and Chair of the Board, said: “We sought a Chancellor who is committed to excellence and who believes in the transformative power of education to change lives and benefit society. As a world-class statesman who has held the highest offices of state, Peter will bring immense expertise, knowledge and skill to enhance our relationships with business and international partners.” Professor Malcolm Press, Vice-Chancellor, said: “We are delighted that Lord Mandelson has enthusiastically embraced this opportunity to be part of Manchester Metropolitan’s future. We are already in the global top 3% of universities and we play a vital role in transforming the lives of our students. We seek to build on our successes, strengthening our research, growing our links with business, and developing strong international partnerships. Peter will be enormously influential in all these regards. Regional devolution and the Northern Powerhouse agenda provide us with tremendous opportunities. We are committed not only to the success of our University, but to Manchester as a whole, working with our world- class partners here in the City and beyond to achieve this.” Lord Mandelson said: “As a former Northern MP, I am strongly committed to the vision of Manchester Metropolitan University and to the changes Manchester is undergoing. The city has the vision, the professional organisation and teamwork to play a key role in radically reshaping Britain’s economy and political system. That was an important project for me in my time in government and so I am delighted to accept this offer to contribute further as the Chancellor of Manchester Metropolitan University. As a former EU Trade Commissioner, I look forward to enhancing the international relationships of Manchester Metropolitan and to working with the Vice-Chancellor and colleagues across the University to do this. It will be a great honour to be associated with such a successful, world-class university.” Sir Howard Bernstein, Chief Executive, Manchester City Council, said: “I am very pleased that Peter has accepted the position at Manchester Metropolitan University and that he will be renewing his relationship with the City. Peter’s commitment to work with all stakeholders within the City and the wider region will play a large role in ensuring we achieve our full economic potential—an issue of national as well as local importance.”
The Rt Hon Lord Mandelson, University Chancellor13 The Rt Hon Lord Mandelson was appointed to the role of Chancellor from 1 April 2016. The role of Chancellor is to act as the most senior ambassador and ceremonial head of the University, promoting its mission, vision and values. Lord Mandelson will support the efforts of the University leadership team to be world-class providers of education and research, and to work in partnership with business, industry, public sector and university collaborators, as Manchester occupies an increasingly important place on the world stage. Lord Mandelson has a distinguished track record. He is a former European Trade Commissioner and British First Secretary of State. Prior to this, he was
13 http://www2.mmu.ac.uk/about/governance/chancellor/ [accessed 8 September 2016]. The conduct of Lord Mandelson (No. 2) 9
Minister without Portfolio, Secretary of State for Trade and Industry, Northern Ireland Secretary and Secretary of State for Business, Innovation and Skills in the British government. He is now a working peer in the House of Lords, President of the Policy Network think tank, chairman of Global Counsel, a consultancy and advisory business he co-founded in 2010 and a senior adviser to Lazard. He became President of the Great Britain China Centre in 2015. Professor Malcolm Press, Vice-Chancellor, said: “We are delighted that Lord Mandelson has enthusiastically embraced this opportunity to be part of Manchester Metropolitan’s future. We are already in the global top 3% of universities and we play a vital role in transforming the lives of our students. We seek to build on our successes, strengthening our research, growing our links with business, and developing strong international partnerships. Peter will be enormously influential in all these regards. Regional devolution and the Northern Powerhouse agenda provide us with tremendous opportunities. We are committed not only to the success of our University, but to Manchester as a whole, working with our world- class partners here in the City and beyond to achieve this.” Lord Mandelson said: “As a former Northern MP, I am strongly committed to the vision of Manchester Metropolitan University and to the changes Manchester is undergoing. The city has the vision, the professional organisation and teamwork to play a key role in radically reshaping Britain’s economy and political system. That was an important project for me in my time in government and so I am delighted to accept this offer to contribute further as the Chancellor of Manchester Metropolitan University. As a former EU Trade Commissioner, I look forward to enhancing the international relationships of Manchester Metropolitan and to working with the Vice-Chancellor and colleagues across the University to do this. It will be a great honour to be associated with such a successful, world-class university.”
Lord Mandelson installed as Chancellor: Grand Ceremony held at Manchester Town Hall14 The Rt Hon Lord Mandelson has today (June 13) been officially installed as Chancellor of Manchester Metropolitan University during a grand ceremony at Manchester Town Hall. The former Labour minister and European Trade Commissioner was presented as Chancellor to become the University’s fourth such figurehead. Lord Mandelson was installed as Chancellor by Vice-Chancellor Professor Malcolm Press and Pro-Chancellor Vanda Murray OBE. He was also presented with an honorary Doctor of Letters in front of over 300 University members, leading lights from the business community, political leaders and student representatives in the resplendent Great Hall.
Pride Lord Mandelson spoke of his pride at joining the University: “What struck me about everyone at Manchester Metropolitan is the excitement and ambition. The students, the staff, the plans for the future. It is going to be so exciting to be involved and I think it’s going to be tremendous fun.”
14 http://www.mmu.ac.uk/news/news-items/4445/ [accessed 12 September 2016]. 10 The conduct of Lord Mandelson (No. 2)
Lord Mandelson took time out of his hectic STRONGER IN campaign schedule for the installation and added: “The University sector is one of this country’s greatest assets. European Union partnerships and funding benefit our knowledge economy and we must do all that we can to maintain that world leading position.” The role of Chancellor is to act as the most senior ambassador and ceremonial head of the University, promoting its mission, vision and values. Lord Mandelson will support the efforts of the University leadership team to be world-class providers of education and research, and to work in partnership with business, industry, public sector and university collaborators, as Manchester occupies an increasingly important place on the world stage. Lord Mandelson was appointed to the role of Chancellor from 1 April 2016 for a five-year term, succeeding Dame Dianne Thompson DBE.
Global regard Professor Malcom Press, Vice-Chancellor, said: “We are a University looking to the future. A confident University, a sustainable University, rooted in our community, driven by aspiration, and working in partnership. “As we have got to know each other I have been consistently impressed by Peter’s ability to see the bigger picture. To help me grasp the important elements in projects where we are working together. To understand the importance of a clear message and coherent strategy and then to move swiftly towards an elegant solution. “It is these qualities that Prime Ministers and Presidents recognise and so deeply admire in Peter. He is a global statesman, held in high regard, in the highest places across the world.” Vanda Murray, OBE, Pro-Chancellor and Chair of the Board of Governors, said: “Today is about celebrating the accession to our team of its newest member, Lord Mandelson. Peter is someone who shares our ambition and is determined to work with us to maximise our potential. We are delighted to welcome Peter to our University and to ‘Team Manchester’ and to work together in this fantastic dynamic city.”
Experience Lord Mandelson is a former European Trade Commissioner and British First Secretary of State. Prior to this, he was Minister without Portfolio, Secretary of State for Trade and Industry, Northern Ireland Secretary and Secretary of State for Business, Innovation and Skills in the British government. He is now a working peer in the House of Lords, President of the Policy Network think tank and chairman of Global Counsel, a consultancy and advisory business he co- founded in 2010. He became President of the Great Britain China Centre in 2015.
Appendix E: Note of a meeting between the Commissioner for Standards and Lord Mandelson, 6 September 2016 The Commissioner said that she was grateful to Lord Mandelson for agreeing to meet so that she could explain the request in her latest letter. The issue was that although Lord Mandelson was installed as Chancellor of Manchester Metropolitan University on 13 June 2016, the university’s website stated that he was appointed to the role from 1 April 2016. She would find it helpful to have clarity on that matter such that her report on the case could explain the situation fully. The conduct of Lord Mandelson (No. 2) 11
Lord Mandelson said that after the university asked him to become Chancellor and he accepted discussions began about when he would take up his duties. The university was naturally keen to announce the appointment of its Chancellor, but it was agreed that his functions would not begin until he was installed. Therefore his first day in office was the day of his installation. The Commissioner thanked Lord Mandelson for the explanation. A note of the meeting would be sent to Lord Mandelson for approval, and the situation would be explained in the Commissioner’s report on the case.