Thoughts on politics and life from a liberal perspective

Showing posts with label Expenses. Show all posts
Showing posts with label Expenses. Show all posts

Thursday, 9 April 2009

Smart move by Nick Clegg on second homes

Just read on LDV quoting a Sam Coates story in The Times that Nick Clegg is going to propose that the capital gains from second home sales revert to the public purse when the properties are sold. He also wants to make sure that they cannot claim at all for mortgage interest payments, only rent.

Whilst there will doubtless be practical complications, I think these are great ideas in principle and they chime with what I have said in the past about needing to make sure that MPs do not benefit from the capital gains as they do at the moment.

Clegg also wants an end to the ability to claim for things like flat screen TVs and furniture and only be able to claim for utilities and council tax.

As Guido suggests, MPs are likely to be horriried by these proposals but something has to be done to restore public trust and Nick Clegg's proposals are exactly the sort of radical reform that is needed to do this.

It will be interesting to see how Gordon Brown and David Cameron respond to this smart move by Clegg.

Sunday, 5 April 2009

If I hear "It was within the rules" one more time...

If I hear the phrase "It was within the rules" one more time I may have to damage something. Hard. The continuing revelations about MPs allowances and expenses has now made me understand what Mr Eugenides means when he says he is "trying to hold back the rage".

The latest senior MP to have been caught enriching himself at the taxpayer's expense is Geoff "Buff" Hoon. Predictably his defence is that what he did was within the rules.

When will these people understand that we have now reached the point where the rules are so widely despised that use of this phrase is tantamount to sticking two fingers up to the rest of us? Any rules that allow public servants to make tens of thousands of pounds of captial gains profit from public money are rotten.

To Eric Pickles credit, he has now recognised that his pathetic attempt to justify MPs second homes was wrong and he has now changed his view.

Just to clarify my view on this, WE DO NOT NEED YET MORE INQURIES. What we need is for the rules to be changed right now to stop politicians from shafting the tax payer. Here are a few suggestions to go into the pot (I have mentioned some of these previously):

1) MPs researchers and assistants should be paid for directly by the state. There should be monitoring of this to be sure that this is done fairly (e.g. MPs with a particularly "busy" constituency may need more help than some others). The jobs should be given to the best candidate in an open process, not necessarily given to wives, children, friends etc. unless they happen to be the best qualified.

2) The state could purchase (or build, or adapt one or more of its existing buildings) into a large accomodation block for MPs. They would be able to use their flat within this to live in when they needed to be in London and it could operate like a military baracks or halls of residence whereby meals etc. were provided, thus allowing them to concentrate on the busy job in hand that they have. The flats would be furnished to a reasonable standard already. There would be no need to provide money to them for accomodation and they would not realise any capital gains in the end as the property would revert to the state. I understand there are practical problems with this but with the political will they could be overcome. I see that Irfan Ahmed is also floating this idea and there is a No 10 petition for it.

3) MPs would still be given expenses for things like travel to and from their constituency etc. but all receipts will need to be kept and they would need to put in a expense claim which if necessary may require justifcation like us mere mortals have to.

4) If my suggestion 2 is not followed, and property can still be claimed on, then any captial gains that acrue on property that has claims made by politicians as part of their allowances must be repaid to the exchequer on sale of the property.

5) No pay rises for MPs to compensate for any reduction or modification to the allowances regime. If MPs are worried that there is public disquiet at the moment, just let them try this. Then they will find out the true meaning of the word disquiet.

Friday, 3 April 2009

Labour MPs will regret the groans and jeering

I missed PMQs this week and have only just caught up with watching it this morning. I have to say that what Cameron led on is exactly what I have been saying regarding MPs expenses. I have reproduced the relevant portion from Hansard below (although you really need to watch it to hear the barracking from 33 minutes in for about 4 minutes here):


Mr. David Cameron (Witney) (Con): On behalf of all Conservative Members, I join the Prime Minister in welcoming President Obama and the First Lady, and all the other Presidents and Prime Ministers, to our country this week.

Before turning to the G20, may I ask the Prime Minister about the issue of MPs’ expenses? [ Interruption. ] MPs may groan, but frankly I am fed up with our politics being dragged through the mud. We need a solution that is transparent, costs less than the current arrangements, and restores faith in the political process. Is it not the case that we cannot wait for another review, and that this needs to be agreed now? So instead of another review, will the Prime Minister agree to an urgent meeting between the main party leaders so that we can sort this out once and for all?

The Prime Minister: I agree and have said on many occasions that this whole system has to be reformed and improved. I think that there is common ground in this House that it brings no repute to MPs if we are continually having to deal with these issues. We have made some changes, by the will of the House, to the way that expenses are documented, to the way that the Green Book is organised, and to the way that people are obliged to account for their expenditures of money. Both the parties agreed that the Committee on Standards in Public Life could do a good job in looking at these
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issues. Of course I am happy to meet the leaders of the Opposition parties to discuss this, but to restore public confidence in the matter the Committee will have to complete its review as well, and I have asked it to speed up that review so that it is completed as quickly as possible.

Mr. Cameron: Frankly, the problem is that we do not need another review. Let us be clear: this is exactly what happened last time. The Prime Minister supported a review, he sent it a letter and when it came up with conclusions, he did not vote for them. [Hon. Members: “Nor did you.”] I did vote for them. The public are sick and tired of this situation, and it requires political leadership. That means political leaders making decisions, which means the Prime Minister, the leader of the Liberals and me. I ask the Prime Minister again: will he have that meeting of party leaders so that we can sort this out? May we have it, instead of a review, not in six months’ time, not in a year’s time, but right now?

The Prime Minister: The right hon. Gentleman wrote his question before he heard my first answer. I said I was quite happy to meet him and the leader of the Liberal party to discuss these issues, but he has to remember that if we in this House are to command public confidence for what we do, we need to satisfy the Committee on Standards in Public Life as well as ourselves. The whole purpose of the discussions we have had in recent years is to take MPs’ pay out of politics, so that it is not MPs who are held responsible for the original recommendations on pay, or for voting for them. I believe that we have to satisfy more than ourselves on the standards we apply in public life. Yes, I am prepared to talk to the right hon. Gentleman, but he should agree to what was agreed before: that the Committee on Standards in Public Life should continue to review this issue and report as quickly as possible.

Mr. Cameron: The problem is that we can all hear the rustling of the long grass.



It's good to see Cameron following Nick Clegg's lead on this. He was the first party leader to suggest a meeting between the three leaders to try and sort this all out and I welcome the Tory support for this.

Cameron is spot on about the sound of the long grass and the need for urgent reform. The groans and the jeering from Labour MPs when Cameron started his question demonstrate how out of touch they are. If they had any sense of the public feeling about this issue they would shut up and listen hard to the suggestions being made. This should not be a party political football, it is damaging our democracy and needs to be fixed and quickly.

I suspect members of the public will have been disgusted with this sort of response to sensible suggestions about reform of how our money is spent.

It was also heartening to hear Nick Clegg go for Brown on tax havens, the lack of a green stimulus and the wasteful VAT cut, call of which I fully agree with and I did not feel Brown's platitudes addressed his questions. As usual.

Tuesday, 31 March 2009

Fisking Polly Toynbee

Polly Toynbee has written a comment piece for the Guardian today which tries to argue that we should keep things regarding our MPs in perspective. I have tried to address some of her points below:


This isn't even the beginning of the end. After Jacqui Smith, expect a stream of MP expense scandals drip-fed into papers week by week. Rumours abound: is there a mole in the Commons fees office? Is it a Tory? Is someone selling these scoops? One thing is certain: deep-pocketed tabloids are chasing ministers, hiring Benji the Bin Man-type rummagers, bribing officials or just calculating MPs' property profits from expenses.

You are doubtless correct Polly, but the "deep-pocketed tabloids" would have nothing to uncover if the MPs had not been so greedy in the first place.


All parties are in for a roasting. In the autumn every MP's bath plug and lightbulb claim will be published. By bad luck, yesterday saw their pay rise by 2.33% to add to public anger.

Bad luck? They are in control of their own pay rises and have chosen to do this in the middle of a recession. Each individual MP is at liberty to give away their rise to charity or back to the Exchequer. Let's see how many of them do.


If moral instincts fail them, then every political sinew should alert MPs to do nothing they wouldn't want splashed across front pages, whatever the custom and practice of the house. Talk to MPs who don't claim much and they boil over at those claiming more than they need. Jacqui Smith calling her sister's back bedroom her main home looked all wrong, even if, apparently, officials said it was OK. The £10 blue movie fiasco is an embarrassing error, but hardly a high crime. For years no spotlight shone in this dark corner.

The blue movie fiasco will amost certainly destroy Smith's career and will become as emblematic of the sleaze of New Labour as brown envelopes and Neil Hamilton were for the Tories.


Now the system must change - and fast. What's up with the dilatory Committee on Standards in Public Life, refusing to lumber into action until September, not reporting until after the next election? This slo-mo response risks bringing the committee into the same disrepute as the MPs. Public thirst for blood spilled over on Question Time when Eric Pickles was booed and barracked for utterly failing to catch the angry moment. He looked shocked: frankly, they all do. If party leaders were wise, they would rush together to announce new rules, draw a line under the past and try to staunch the anti-politician bile.

I agree with all of this and indeed Nick Clegg has already written to the other two main party leaders suggesting this.


(Read online comments after this for waves of cynical hatred.)

This seems to be a pretty flagrant attempt to smear any criticism of her article before it has even been published (assuming this was not added afterwards but there is no EDIT comment attached to it). I have read some of the comments and they are largely polite but just disgusted with politicians and Polly's attempts at defending them.


But keep all this in perspective. Our politicians are among the cleanest in the world - 16th out of 180 nations and bunched less than two points from the top, according to Transparency International. Below us are the US, Belgium, France and Spain. But from the uproar, MPs stretching expense rules has been made to look like the pork barrel, backhander and bribery scams that plague other countries.

And? So what? We want a clean politics for this country. I don't care whether we are "not as bad" as some other countries. This is a red herring argument.


Let's repeat this: our MPs are rarely corrupt. Our feral press, however, finds growing transparency and freedom of information - brought in by Labour - offers easy meat for cheap stories. These hyped up "scandals" are frivolous compared with serious investigations such as the Guardian's arduous and risky revelations on company tax avoidance. If only more newspapers gave the same space to investigating opaque corporate bad behaviour that they devote to exposés of minor MPs' misdemeanours. Eternal trivia is not eternal vigilance.

Hmm. I agree with the need for us to more vigorously pursue tax avoidance but it is not an either/or situation. We should pursue things like that and also pursue public servants who have structured an "allowances" system to line their own pockets. The total amount of MPs expenses according to the figures released yesterday is over £80 million. This is not trivia.


But here's the wake-up call. MPs have been caught napping by the new wave of puritanism. Others will now come under unaccustomed scrutiny. Let this be a warning to all public officials, quangos, councils, NHS officials, sports authorities or anyone holding even minor power. Something has snapped. If public trust was always low, it has fallen down a crevasse in this financial crisis.

Absolutely. People are furious with our politicians and public officials and they have to respond to this right now. Right now. No kicking it into the long grass with inquries led by the great and the good reporting after the next election. Now.


Historians will see why: people feel a grand conspiracy by a well-paid elite has failed them. They were told this was a golden age, that astronomic pay at the top was yielding rich returns for the nation. They were told their soaring property values came thanks to the brilliance of the governing and banking classes. When your house price rose by £50 a day, why question the very clever, very well-paid people overseeing this great tide of wealth? Polls showed surprisingly little indignation as top pay rocketed. People believed those in power who said the golden geese were delivering the eggs.

I still thought there were problems with the current system as I am sure did many others even when times were good. However Polly is right that now times are tough there will be much more focus on this subject.


But no longer. MPs are getting the first blowback of the new mood. Everyone earning in the top tax bracket had better watch out: the real nature of inequality has been rumbled. Remember, only some 10% of people earn over £40,000. That means 90% earn less. All those with power - leaders, managers, controllers, commentators, decision-makers - inhabit a very small elite paid far above the norm. Median pay is around £23,000, so half the population earns less. Now trade unions no longer have the power to rattle the cage of the powerful, the upper 10% has lost its grip on reality, failing to realise how well off it is. MPs and others feel entitled to more if they compare themselves upwards, with the top 1% earning a monstrous swag. Extreme inequality causes pay dysmorphia - failing to see your pay in proper proportion to everyone else's.

But MPs earn more than 2.5x the median in salary alone (and that's before the tens of thousands of pounds of "allowances" are factored in). Do they really, honestly think they are badly paid?


It is unjust that the public sector - less greedy, less rich, more motivated by civic sense - will feel the blowtorch of this new mood. Beware throwing public-sector leaders into tumbrels. But as an easy target in a downturn, they had better cut back those top rates that have been infected by the private-sector pay virus. Meanwhile, businessmen flying "executive" class for no good reason, eating Michelin stars and conferencing in golf-friendly foreign spas pilfer public-company funds from other people's pensions under far less scrutiny.

No, I am sorry Polly but when times are tough, everybody has to share the burden. The caricature of businessmen eating swans and swimming in caviar is an attempt to distract from this. I am in business myself and we are having to be very careful on expenditure as I am sure most other businesses are. There are pay freezes, pay cuts, short time working, downsizing, suspended pension contributions, you name it going on in the private sector at the moment. the public sector cannot go on expanding whilst the private sector takes all the pain. It goes against natural justice and is economically wrong headed.


Beware of joining the general denigration of MPs. There are few Jonathan Aitken bad hats: you know them by the pricking of your thumbs. Most MPs in every party go into politics to change things for the better. A salary set today at £64,766 is fine, but most (not all) could do better outside.

This last bit is absolute rubbish. £65K per year is a huge salary and many MPs these days, certainly Labour ones are time servers who have never done a job outside politics. Once you factor in the "allowances" we are talking well over £100K. I simply do not believe that most MPs could earn this sort of money outside of politics and it insults our intelligence to suggest they can. Oh, and if they really do think they can, they should resign from the house and do it. There are no shortage of people waiting to replace them.


Few reach cabinet or even junior office. If they do, their powerlessness can still feel mortifying. Years of weekly graft in constituencies yield little personal benefit: most rise and fall with their party's fortunes.

MPs under collective omerta are usually better people in private than they are allowed to be in public. This era of Labour MPs has rebelled more than any other - though rebellion is not always as honourable as suffering under collective decision. We who comment on them do well to remember how plush is our perch, in comparison.

But the collective omerta is entirely their own fault. They control our system of government. If they want to be allowed more individualism, it is in their own hands. I agree it would be better if they were more independent minded but many MPs, certainly in the Labour and Conservative parties are politically cowardly when it comes to speaking their true mind on issues. Look at the conspiracy of silence for example on the failure of the "war on drugs". MPs are very quick to scream "Gaffe!" or "Soft on drugs/crime!" at each other as soon as one of them steps outside the ridiculously narrow bounds they set for themselves. It is their own fault.


Those who abuse, belittle and encourage popular contempt for MPs should consider that we need more good people in politics. Observing the excruciating public humiliation of the home secretary's husband for watching a couple of porn movies, with their children cringing indoors, how many potentially good future politicians decided they would rather not invite the world to root through their private life after all?

It is richly ironic that Jacqui Smith who has done so much to undermine our liberties and to ensure the state can poke their noses into our private business is likely to be undone by someone poking their noses into her private business (although made public due to the claim on taxpayer's money). Good people have nothing to fear from going into politics as long as they keep their side of the street clean and do not engage in the sort of egregious practises we have seen recently.

The MPs are getting exactly what they deserve and they only have themselves to blame.


Monday, 30 March 2009

I don't care who is leaking this stuff - MPs must change

Guido is spot on with his post today about how the focus of anger of many MPs is on whoever is leaking embarrassing information about MPs expenses to the media.

This is exactly what I thought too when I heard last night that the Labour Party is trying to spin relevations that are coming out as politically motivated and being leaked by a Tory mole.

Frankly, I couldn't give a flying toss who is leaking this information and what their motivations are. I actually shouted at the TV last night (I try and stop myself but sometimes can't help it!) that this is utterly irrelevant. If the information is available in the first place then it is because MPs have been playing the system, even if it is within the rules it is clear that public opinion is massively against them and they have to face this and change their practises.

I was actually thinking about this the other day. When Harriet Harman was being questioned about Shred's pension she said that although his contract may be enforceable by law, it is not enforceable in the "court of public opinion" and hence the government would "step in". I wonder whether she takes a similar view about Jacqui Smith trousering over £100K by claiming that a room in her sister's house is her main residence whilst she has a huge house in Redditch where her husband and children live. It is clear that is also not enforceable in the "court of public opinion. Is she now going to "step in"?

It is a shame nobody asked her this at PMQs last week.

Friday, 27 March 2009

Eric Pickles made a fool of himself on Question Time

I watched Question Time last night and whilst Eric Pickles seemed to do OK in the first half, when it came to a question about MPs expenses he made an utter fool of himself.

You can watch it for yourself here. The question is from 38:30 and Pickles contribution starts at about 44:00.

I have transcribed the first part of his answer here:


Dimbleby: Eric Pickles do you have a two house system with an allowance?
Pickles: I do indeed have a two house system and an allowance, but if I could just make a brief contribution...
Dimbleby: How far are you away from Westminster?
Pickles: 37 miles.
Dimbleby: And you need two houses?
(BOOS FROM THE AUDIENCE)
Pickles: And let me, if I could just make this brief contribution to "Hang an MP week"! If I could just...
(SOME LAUGHTER FROM THE AUDIENCE)
Dimbleby: Take your time, take your time.
Pickles: OK, then let me explain why. And I have actually had experience of commuting that distance when my wife was ill, she's fully recovered now. But, for a month I did it and it was an extremely difficult experience, I'll explain why. Because the House of Commons works on clockwork. You have to be there, if you're on a committee, you have to be there precisely. Particularly for someone like me, I was a number two...
(BOOS FROM THE AUDIENCE)
Pickles: Let me explain, let me explain, please just let me explain for a moment. I had to be there, I was number two....
Dimbleby: Like a job in other words?
(BURST OF LAUGHTER FROM AUDIENCE THEN APPLAUSE AND CHEERS)
Pickles: Yes exactly like a job. If you're number two in the opposition, essentially running the committee. So I was, I had to be there at 9:30 to move those amendments. (Points at Ed Davey) - It doesn't matter if a Liberal Democrat isn't there, but it matters if I'm there...
Davey: That's just cheap.
Pickles: But it matters if I'm there, I have to be there so when I was doing it properly, when I was doing this I was leaving home at 5:30 in the morning to guarantee that I was going to be there and I wasn't getting back until about 12 and 1 in the morning. Now you can do that once or twice, you can do that for a while but you've got to understand that the House of Commons runs like clockwork.
(DAVEY AND LUCAS ATTEMPT TO INTERJECT)
Pickles: I have never, ever claimed my full allowance. I have always claimed the amount...
(JEERS FROM THE AUDIENCE)
Pickles: Well you can, I mean I publish them, I've always published them on my website. They've always been there for people to see. I have always been accountable and I can tell you I think things are going to come out in a week's time. You'll find I think I have only cleared about 60% of the allowance, it might even be 55% of the allowance. But I am a serious guy who will put in the hours and I will work for those hours, but I can tell you this, it is no fun doing 5:30 in the morning, right the way through sometimes, now some...
(FURTHER JEERS FROM THE AUDIENCE)
Pickles: You can't be sat on train saying to yourself am I going to make it, am I not going to make it and that's why I do it.


I found his contribution deeply unimpressive. He seemed to be genuinely unable to understand that many people other than MPs have jobs that involve long hours and require them to be there at specific times. None of them get extra houses or thousands of pounds a year to pay for their upkeep. You could tell from the audience's responses that he is totally out of touch.

Eric Pickles is often put forward by Tories as an example of a bluff speaking northerner in their ranks and this performance tonight does not bode well for them. It seems their "Man of the People" is actually a creature of the Westminster Village and hopelessly out of touch, on this issue at least.

UPDATE: Stephen Tall of LDV put up a detailed post about this at the same time as I was posting this. Great minds, etc.

Also further blog reaction here, here and in the comments here.