Parliamentary Standards Bill

Obviously, I rise to speak to amendment 71 and new clause 10, which are tabled in my name. I begin by noting and accepting the strong case that has been made for amendment 68. The House would reject it at the risk of creating a very serious misunderstanding and misapprehension. If we were not to include the Committee on Standards in Public Life in this statutory consultation list at a time when that Committee is carrying out work on this issue and is conducting hearings—indeed, it is to take evidence in Belfast tomorrow—that would send out the signal that we were legislating in deliberate disregard of the important work of that Committee. I therefore believe that we would be wise to accept the sensible amendment tabled by the hon. Member for Chichester (Mr. Tyrie). On amendment 26, I am less convinced about insisting on statutory consultation with all Members of Parliament, because that would take us back in another direction. Clearly, other interests who have responsibilities in this House and have regard to the needs, circumstances and rights of people in it are factored into this consultation, so I am unsure whether it needs to be extended to all Members. On amendment 71, the reason I believe HMRC needs to be specifically included in the list is because the Treasury is included and it is, thus, easy for people to misunderstand things and believe that their only reason for consulting the Treasury might be to consider what the tax treatment implications would be of different allowances—either those that exist or new allowances that might be created in future. Obviously as Governments change the rules on the treatment of benefits in kind and various other work-related benefits and subsidies, issues will arise from time to time. Those matters are best addressed by the authority speaking directly to the independent professional people who are handling and interpreting those issues, namely Her Majesty's Revenue and Customs. So, if the authority proposes significantly to change the allowance system, create some new allowances or insist that certain allowances should be available for particular purposes on the basis of particular entitlements, it is right that due consideration and due regard should be given in advance of any possible unforeseen tax implications. Similarly, as the tax rules change—as approved by this House and tabled by Government—it would be necessary from time to time for the authority to liaise with and talk to HMRC to see whether the changes affect how parliamentary allowances are treated. It seems to me to be sensible and proper that we should do that. New clause 10 has been tabled because, at the minute, the Bill would have the new Independent Parliamentary Standards Authority see nothing, say nothing and consider nothing in relation to taxation and parliamentary standards. If we are saying that one reason that the Bill is necessary is the concern and consternation that has been raised by the recent revelations, we have to remember that that concern and consternation does not relate solely to the issue of allowances and expenses. It also relates, very substantially, to the whole question of MPs' attitudes to tax returns. The whole question of flipping, as it is called, is not just a matter of people using the designation of a property to draw down expenses in respect of one property and then to do so in respect of another. Flipping goes to the heart of the question of capital gains tax, and of people being able to avoid capital gains tax in a way that has scandalised some but that was obviously within the rules and was the approach that was advised by people in the Revenue at the time as well as by others.