20 May 2009

Patrick Hall Writes Openly About MPs' Expenses

Given the Telegraph’s dramatically staged release of information about some MPs’ expenses which has been reported by the whole media, public anger and despair has been notched upwards on a daily basis since early May.  I have already made my feelings clear in my monthly column in the Times and Citizen; the relevant extract reads as follows:

With daily revelations in the media about MPs' expenses, it is difficult to keep up with all of the detail.

However, I will say that I feel ashamed that a job that exists only in order to serve the people and the country has been abused by some for unjustified personal gain at public expense.

It is not only a matter of the expenses system being too flexible or even plain stupid in part – it comes down to every MP taking responsibility to behave in an ethical and honest manner in the first place.

I consider it a privilege to serve Bedford and Kempston but this cannot be effective unless openness, trust and integrity underpin our Parliamentary democracy. There is much to be done to rebuild that.

(Hall in the House, Bedford Times and Citizen, 14 May 2009)

The revelations are a mixture of the bizarre, immoral and possibly criminal. They also pose more questions than the media has attempted to answer. I hope therefore that it will prove helpful to my constituents in Bedford & Kempston to set out the situation in greater detail.

Freedom of Information and the Publication of MPs Expenses

Publication has taken place in October every year since 2004; that year the information also went back to 2001. This lists every MPs expenses under a number of categories. Mine for the most recent year for which figures have been released are reproduced here:

To view earlier years and all MPs, click here

Following a high court decision in 2008 the House of Commons authorities agreed that all expenses details should be published in July 2009, less bank account details and addresses. With regard to the publication of all invoices, I support this provided that personal bank account details are not released. Regarding addresses, general release would be a gift to burglars and nutters and so should not be published. However, the media does need to be able to scrutinise such matters and should have that information provided it agrees not to reveal addresses.

Freedom of Information

I have always supported the publication of MPs expenses under the Act introduced by this Government. I was therefore very concerned when in May 2007 a group of MPs sought to prevent the Act from applying to Parliament. They used the device of a Private Members Bill on a Friday when most MPs are working in their constituencies. Together with other colleagues, I worked hard to overturn that negative measure – both by supporting an EDM and organising meetings. In the event the proposal failed to proceed. If anyone wants to know more about this, let me know.

In January 2009 the House of Commons confirmed that all receipts going back to April 2004 should be published by 1 July 2009. There are hundreds of thousands of receipts and each one has been examined to blank out bank account details etc. Presumably it was someone employed in that process who stole a copy of the whole lot and sold it to the Telegraph.

MY JOB – A SUMMARY

From the questions being asked of me at present, it is clear that many people do not really know what I do as their MP. I have answered such questions in full in the past but very few people have asked since 1997 until now.

When the House is sitting – around 34 weeks of the year – the week goes something like this:

Monday mornings

– meetings in Bedford, go to constituency office in The Broadway and talk to staff about the week etc. Sign letters etc etc.

Around lunchtime – train to London.

Monday afternoon until Thursday evening

– continue constituency work in my office in Portcullis House, meetings with ministers and colleagues and outside organisations about matters relevant to Bedford & Kempston, also All Party Group and Select Committee meetings as well as discussions and briefings as a member of the Foreign and Commonwealth Office team (I am PPS to Caroline Flint MP, Minister for Europe). And of course participate in votes.

Thursday evening

– return by train to Bedford. Occasionally I am able to attend meetings in Bedford during the week especially if they are not in the evenings.

Friday

– a very full day in Bedford & Kempston with meetings in my office and elsewhere as well as a catch up of the weeks post and signing letters. Often I will have an evening event or meeting to attend.

Saturday

– on the first three Saturdays of every month I hold a morning Advice Surgery in each of our three town libraries in turn. This can be followed by a visit or meeting. I often attend community events during the afternoon and/or evening.

Sunday

– nearly every morning I walk the route of that day’s Roving Surgery which covers a group of streets. It is a ‘Forth Bridge’ task, taking months to complete Bedford and Kempston at which point I simply start all over again. I confess to a break during Christmas and New Year and when on summer holidays. Very often I have further meetings/community events to attend at lunch times. I try hard to keep Sunday afternoons and evenings free – although I usually spend some hours trying to catch up with the email backlog!

When the House is not sitting – especially during August and September but also at Christmas and Easter – I continue to work in Bedford. It is a very useful period of time because it is easier to meet local people and organisations. Naturally, I do have some holidays especially during the summer but have not been away longer than 10 days or so since being elected. In fact, I had longer holidays away before becoming an MP.

Why Stay Overnight in London?

I have never made any secret of the fact that I stay overnight in London when the House is sitting.

When I was first elected in 1997 the last votes of the day in the House of Commons were usually anytime between 10pm and 2am on Mondays, Tuesdays and Wednesdays. On Thursdays it was around 7pm. Combined with the wish to participate in morning business starting around 8.30 - 10am, for me this meant sleeping in London.

After several weeks sleeping on a friends’ sofa, I rented a flat in Pimlico for a few years. After the 2001 General Election I bought a leasehold on a newly converted flat in an old building at The Oval where I have since remained.

MPs have now reformed and improved the sitting hours. Votes now usually finish by 10.30pm

Mondays and Tuesdays, 7.30 Wednesdays. Late night sittings are much rarer – thank goodness!

However, I do not think that returning to Bedford is a sensible or healthy option. I would not get home until about 12.15am or so, making an early start a real struggle. It is true that on Wednesdays I could get back by 9.30pm if I did not work in my office or attend occasional other business/meetings in the House. On balance, daily commuting is just not on for me with those hours.

Costs of Staying Overnight Away from Home

In most jobs that require this, it is normal for reasonable subsistence to be reclaimed from the employer. That is how I have always viewed the Parliamentary allowance. Parliament (the taxpayer) will pay reasonable hotel bills, rent or mortgage interest up to a limit.

If an MP rents a flat or has a mortgage on a flat in order to be able to stay away from home for the reasons stated above, it is also normal to reclaim insurance, council tax and utility bills, together with essential furniture (both my flats were unfurnished) and a subsistence allowance.

I have noticed that some MPs are now pointing out that they rent rather than owning a property – however, the test should be how much it costs. My costs are lower than many who rent as well as buy.

Second Home Shenanigans

I am disgusted with how some MPs have played games with the designation of any second home in order to profit at public expense and avoid capital gains tax at the point of sale. It is good that this has now been exposed and is rapidly coming to an end. With the exception of Ministers who at one time were required to designate their London accommodation as their main home, no one has any excuse here.

In my case I have lived in Bedfordshire since 1962 and my main home is unambiguously in Bedford. When I required accommodation in London because of my job, I regarded that as my second home, plain and simple. Therefore there has never been any question of claiming for any expense incurred in Bedford.

WHAT NEXT?

In March 2009 the Parliamentary Committee on Standards in Public Life said that it was going to undertake an inquiry into MPs’ allowances under the chairmanship of Sir Christopher Kelly. He has been asked to report in the autumn.

Meanwhile on 30 April and again on 19 May Parliament has agreed some interim reforms pending the Kelly report.

On 30 April the following was agreed:

· Greater London MPs will no longer be able to claim expenses for second homes as there will no longer be a distinction made between inner and outer London. All MPs representing seats within 20 miles of Parliament will be entitled to the £7,500 London allowance only.

· All MPs will be required to submit receipts to back up all claims regardless of the amount.

· MPs will no longer employ staff directly

· MPs with second jobs will have to publish details of their employer, earnings, and number of hours worked.

These measures are, however, temporary, pending a more thorough review of MPs expenses by the Committee on Standards in Public Life.

On Tuesday 19 May the party leaders also agreed to further measures pending the Kelly report. These include:

· MPs who are couples will be obliged to nominate the same main home and will only be able to claim one person's accommodation allowance between them

· All claims will be published quarterly online

· Members will have to be "completely open" with the tax authorities about whether properties are second homes and liable to capital gains tax

· With regards to accommodation, only rent, hotel bills, overnight subsistence, mortgage interest, council tax, utility charges and insurance will be allowed

· Mortgage claims must be accurate, for interest only and on continuing loans

· A clear test of "reasonableness" will be applied to all claims by the Department of Resources in an effort to "tighten up" allowances

· All past claims under the former Additional Costs Allowance over the past four years will be examined.

· Claims which are the subject of any doubts will be refused with no opportunity of appeal

With regard to the examination of past claims, Gordon Brown, who proposed this, had already made it clear that if all party agreement had not been forthcoming, the Labour Party would have launched its own investigation into all Labour MPs, supported by a leading lawyer and firm of accountants.

The Prime Minister has also stated that the outcome will need to be tough on MPs who have transgressed, including banning them from the party and from standing as Labour candidates.

In my view, as stated in my Hall in the House article above, the test should include the spirit of the rules, not just the rules themselves. Paying back expenses because someone has been caught should not let them off the hook.

We all know that in many walks of life people try to get away with all kinds of things. MPs must be beyond reproach and seen to be so. There must be integrity and honesty in Parliament underpinned by a genuine wish to serve. MPs who do not understand that do not deserve respect and our democracy itself will be weakened.

Any Questions?

If you are a resident of Bedford or Kempston and have a question or comment to make about these matters, please let me know by clicking here

I hope that the above is helpful.

Patrick Hall

Member of Parliament for Bedford & Kempston