Public Administration Select Committee

Responsibility for overseeing the operation of government


The Public Administration Select Committee investigation into Ethics and Standards continues apace with Grant Shapps MP interviewing Rt Hon Lord Smith, Rt Hon Lord King about their perception of the way that the undertaking of public duties have changed over the years.
 

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Transcript of questioning by Grant Shapps MP:

Q126  Grant Shapps:  I should just like to put the same points to Lord Smith initially, if I may? 

Lord Smith of Finsbury:  The answer to the question “Do you think honours are being sold?” is that I do not know.  I hope not; I fervently hope not.  I should agree absolutely with the point that Tom made that the fact of a donation to a political party should not disbar anyone from being considered for an honorary peerage, a knighthood or whatever.  The decision should be made purely on the basis of their service to their country and their ability to make a contribution to the House of Lords rather than on the mere fact of a donation to a party.

Q127  Grant Shapps:  Lord King of Bridgwater said before that this is all down to the question of perception.  Would you agree that the perception is that honours are being sold?

Lord Smith of Finsbury:  The perception at the moment is terrible.  It is incumbent on everyone to clear it up as rapidly as possible. 

Q128  Grant Shapps:  If honours were being sold, and I understand Lord King’s view but I just want to check you feel the same way, presumably you would feel that was wrong.  The reason I ask though is that every political system has to be funded in some way and most of us do not think it should be done through taxpayers’ money.  This is a way of doing it and if the worst that happens is they get a peerage, then do you think that would be acceptable as a price to pay?

Lord Smith of Finsbury:  No.  So long as we have a rather peculiarly constituted upper House, it should not operate on such a basis.  In terms of how you fund your politics, I should put three things in place.  One:  complete transparency about donations.  Two:  the encouragement of small donations rather than huge donations.  Three:  some element of public funding for political parties, probably for things like their research work rather than for their political campaigning.

Q129  Grant Shapps:  I am sure we might do funding of political parties as a separate thing, so I shall not lead us off down that route.  Would you agree that after all these years from Nolan, you have these frameworks and codes of conduct and committees, that we are just no further forward at all and public perception has not shifted at all?  So is there any point in doing this, given that Lord King says that perception is everything?  If it is not solving that simple problem, why do it?

Lord Smith of Finsbury:  The original impetus for Nolan was cash for questions here in the House of Commons and the appointments to public boards and public bodies.  Actually we have made very substantial progress on those two issues.  The codes of conduct and the provisions for proper inspection and reporting of the actions of members of the House of Commons are now in pretty good shape.

Q130  Grant Shapps:  But the public does not agree with that, does it?  That is the problem surely.  Tom says that is all that matters in a sense, but it has not worked.

Lord Smith of Finsbury:  If you focus specifically on that issue, I think the public would agree with that.  There are other issues that have since cropped up and those now need attention.  Yes, it is important to address issues about, for example, the way in which honours are granted, but let us not decry the fact that some progress has been made on some of those initial issues which caused the establishment of the Nolan Committee in the first place.

Q131  Grant Shapps:  Lord King, you said in your opening remarks that you were very encouraged when the current Prime Minister said he would be whiter than whiter and I imagine, at around that time in 1997-98, public perception actually did improve for a short while.  Nothing to do with committees and codes of conduct, but actually all to do with the political climate of the day.  Anyone who sets themselves up as whiter than whiter is always going to end up looking dirty and muddied over a period of time; that is what is happening now, public perception had sunk back again.  In a sense, you are never really going to win with this, are you?

Lord King of Bridgwater:  You always get problems, occasionally bad apples.  It was Oscar Wilde who said of the House of Commons that not many of them were worth painting – you have a picture of Lord Grimond on the wall - but a few of them could do with a coat of whitewash.  So the world has not entirely changed and you will get problems.  There has to be a mechanism to deal with them.  I agree actually with what Lord Smith of Finsbury said about this; in areas there have been improvements and the register is now tougher than it was, the register of members’ interests, which was one of the recommendations originally made, and the issue about public appointments.  In fact the way in which some of these things get flagged up and the way in which the media are on the hunt is often a more effective watchdog than somebody in Parliament.  There are rules from which they can work, but at the end of the day none of these rules works unless the example is set from the top that these are important issues; they are not sideline issues, they are not issues that people are too busy to deal with or not issues that are decided at too low a level.  Once you get that leadership from the top and the understanding that people are expected absolutely to perform otherwise they are out, that is what leadership is about.  That is why we put it down as the last principle.  It feeds right through the system.  People then know that for their prospects, their career prospects and all that, they had better keep to high standards and that is what we ought to see.  I very much hope the Prime Minister will recognise that and show by example that he intends to return to that path.


Promoted by Amanda Perkins on behalf of Grant Shapps, both of Maynard House, The Common, Hatfield, AL10 0NF