Standards and Privileges - First Report

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Here you can browse the report together with the Proceedings of the Committee. The published report was ordered by the House of Commons to be printed 2 July 1994.

Volume I

TABLE OF CONTENTS

Terms of Reference

Description	Paragraph
REPORT
PROCEEDINGS OF THE COMMITTEE
CONCLUSIONS
SUMMARY OF FINDINGS AND RECOMMENDATIONS
APPENDIX: MEMORANDUM SUBMITTED BY THE PARLIAMENTARY COMMISSIONER FOR STANDARDS
PREFACE	1
I. BACKGROUND TO THE ALLEGATIONS	9
II. THE ALLEGATIONS	36
THE "LOBBYING GROUP"	41
a) Mr Smith, Mr Hamilton, Sir Andrew Bowden, Sir Michael Grylls,     Sir Peter Hordern	42
b) Mr Smith	42
c) Mr Hamilton	42
d) Sir Andrew Bowden	42
e) Sir Michael Grylls	42
f) Sir Peter Hordern	42
OTHER MEMBERS ASSOCIATED WITH MR GREER AGAINST WHOM MORE THAN ONE ALLEGATION HAS BEEN MADE	43
a) Mr Brown	43
b) Mr Malone	43
c) Lady Olga Maitland	43
THE RECIPIENTS OF ELECTION DONATIONS	44
Allegations falling outside the Terms of Reference of the Inquiry	46
III. ASSEMBLING THE EVIDENCE: PROCEDURAL, LEGAL AND PRACTICAL PROBLEMS	49
PROCEDURAL PROBLEMS	50
LEGAL PROBLEMS	58
PRACTICAL PROBLEMS	60
IV. THE INQUIRY PROCEDURES	69
V. THE APPROACH ADOPTED IN INVESTIGATING COMPLAINTS AND REACHING CONCLUSIONS	74
1) ACCEPTANCE OF IMPROPER PAYMENTS OR OTHER FINANCIAL INDUCEMENTS	76
2) BREACHES OF THE RULES RELATING TO REGISTRATION AND DECLARATION OF INTERESTS	96
a) Registration	99
b) Declaration	106
VI. SUMMARIZING THE EVIDENCE	108
1) BACKGROUND	108
2) IAN GREER ASSOCIATES	111
3) THE LOBBYING OPERATION	115
Chronology	115
1985	115
1986	119
1987	128
1988	150
1989	164
1990	173
The Composition of the Group	174
4) ALLEGATIONS RELATING TO CASH PAYMENTS	176
Chronology of the Allegations	176
5) ANALYSIS OF THE ALLEGATIONS OF CASH PAYMENTS, DIRECT AND INDIRECT, RELATING TO THE HOUSE OF FRASER LOBBYING OPERATION	193
The so-called Slush Fund	195
The Principal Evidence in Support of Allegations concerning the Existence of a "Slush Fund"	195
a) The Quarterly Payments of £5,000	195
b) The Cheque for £13,333	205
c) The Cheques for £12,000 and £6,000	210
The Principal Evidence against the Allegations concerning the Existence of a "Slush Fund"	213
a) The Quarterly Payments of £5,000	215
b) The Cheque for £13,333	220
c) The Cheques for £12,000 and £6,000	224
The Position of Sir Peter Hordern, Mr Smith, Mr Hamilton and Sir Andrew Bowden in relation to the "Slush Fund" Allegations	233
The Position of Sir Michael Grylls in Relation to the "Slush Fund" Allegations	236
Commission Payments to Sir Michael Grylls	237
Fees from the Unitary Tax Campaign	248
The `Top-Up' Payments to Sir Michael Grylls	249
The Documentary Evidence	256
The November 1985 Payment	262
The 14 May 1986 Payment	263
The 3 October 1989 Payment	264
Alleged Cash Payments by Mr Al Fayed directly to Members	272
Sir Andrew Bowden	273
The Evidence in Support of the Allegation (£5,000 in cash and a demand for £50,000)	273
The Evidence against the Allegation (£5,000 in cash and a demand for £50,000)	284
The Evidence in Support of the Allegation (the £5,319 election donation)	296
The Evidence against the Allegation (the £5,319 election donation)	303
Mr Smith	307
Mr Hamilton	344
The Evidence in Support of the Allegations	346
a) Mr Al Fayed	346
b) The Guardian	359
c) Mr Smith	360
d) Mr Royston Webb	361
e) Corroboration	365
(i) Alison Bozek	365
(ii) Iris Bond	375
(iii) Philip Bromfield	379
f) Documentary Evidence	384
g) Mr Hamilton's Pattern of Parliamentary and Lobbying Activity	398
The Evidence Against the Allegations	406
The Credibility of Mr Al Fayed and The Guardian	410
The Credibility of the Corroborative Witnesses	416
The Credibility of Mr Webb	424
The Documentary Evidence	426
The Pattern of Parliamentary Activity	430
The Comparison with Mr Smith	431
Other Evidence	433
Other Inquiries	434
The Credibility of Mr Al Fayed	435
Mr Betterman's Statement	435
Professor Rider's Statement	438
The Credibility of Mr Royston Webb	440
The Credibility of Ms Bozek, Ms Bond and Mr Bromfield	445
The Guardian	459
Mr O'Sullivan	463
The Documentary Evidence	465
Alleged inconsistencies in the Evidence concerning the Allegations	468
Other Cash Payments	471
The Comparison between Mr Hamilton and Mr Smith	473
Mr Hamilton's Financial Affairs	476
Diaries for 1987, 1988 and 1989	505
Mr Hamilton's Credibility	506
The Telephone Conversation with Mr Heseltine	511
The Guardian Journalists' Interview with Mr Hamilton in 1993	518
The Reasons for the Collapse of the Libel Action	528
Other Payments and Benefits received by Members from Mr Al Fayed	539
a) Harrods Gift Vouchers	539
b) The 1987 Stay at the Ritz	546
c) The 1990 Visit to Paris	579
6) ALLEGATIONS RELATING TO NON-REGISTRATION OF INTERESTS	587
a) Mr Hamilton	588
i) Balnagown Castle	589
ii) Harrods Hampers	593
iii) Commission Payments	594
National Nuclear Corporation	595
United States Tobacco	601
iv) Strategy Network International	613
b) Mr Brown	617
Commission Payments: Mr Andrew Roth's Evidence	622
c) Mr Smith	628
d) Sir Andrew Bowden	634
i) Campaign Election Donations	634
ii) Lecture Fees	639
e) Sir Peter Hordern	642
f) Sir Michael Grylls	645
g) Lady Olga Maitland	650
h) Mr Malone	655
7) ALLEGATIONS RELATING TO NON-DECLARATION OF INTERESTS	658
a) The Lobbying Operation on behalf of House of Fraser	660
1986	661
1987	661
1988	661
1989	662
b) The Campaign relating to Skoal Bandits	680
1988	686
1989	686
8) OTHER ALLEGATIONS OF MISCONDUCT	697
Mr Hamilton	698
National Nuclear Corporation	698
Mobil Oil	703
Plateau Mining	707
Sir Michael Grylls	711
Charles Church	711
Rank Xerox	714
9) ALLEGATIONS CONCERNING NON-REGISTRATION OF DONATIONS TO ELECTION EXPENSES	720
VII. CONCLUSIONS	738
Introduction	738
The Lobbying Operation	747
The "Slush Fund"	751
Alleged Cash Payments to Mr Greer	753
The Cheque for £13,333 plus VAT	758
The Cheques for £12,000 and £6,000	760
Alleged Payments to Members from the "Slush Fund"	765
Sir Michael Grylls	769
(i) Commission Payments	769
(ii) Fees from the Unitary Tax Campaign	769
(iii) Other Payments	769
Alleged Cash Payments by Mr Al Fayed directly to Members	773
Sir Andrew Bowden	773
Mr Smith	781
Mr Hamilton	788
The Credibility of Witnesses	797
Ms Bozek, Ms Bond and Mr Bromfield	798
Mr Webb	802
Mr Hamilton	803
Other Payments and Benefits received by Members from Mr Al Fayed	808
Alleged Non-Registration of Interests	812
Mr Hamilton	813
Mr Smith	816
Sir Andrew Bowden	819
Sir Peter Hordern	821
Sir Michael Grylls	822
Mr Brown	824
Lady Olga Maitland	826
Mr Malone	827
Alleged Non-Declaration of Interests	829
Other Allegations of Misconduct	837
Mr Hamilton	838
Sir Michael Grylls	842
Allegations of Non-Registration of Donations to Election Expenses	844
Mr Deva	848
Mr Lamont	853
VIII. SUMMARY OF FINDINGS AND RECOMMENDATIONS	857
Mr Smith	857
Mr Hamilton	857
Sir Andrew Bowden	857
Sir Michael Grylls	857
Sir Peter Hordern	857
Mr Brown	857
Mr Malone	857
Lady Olga Maitland	857
Recipients of Election Donations	857
ANNEX 1 THE PROCEDURE ADOPTED FOR THE INQUIRY
ANNEX 2 LIST OF WITNESSES
ANNEX 3 LIST OF ORAL HEARINGS
ANNEX 4 LIST OF WRITTEN EVIDENCE SUBMITTED TO THE INQUIRY
ANNEX 5 THE DEVELOPMENT OF THE RULES RELATING TO REGISTRATION AND DECLARATION OF INTERESTS

VOLUME II

LIST OF APPENDICES TO THE MEMORANDUM SUBMITTED BY THE PARLIAMENTARY COMMISSIONER FOR STANDARDS

APPENDICES TO THE MEMORANDUM SUBMITTED BY THE PARLIAMENTARY COMMISSIONER FOR STANDARDS

VOLUME III

LIST OF ORAL HEARINGS CONDUCTED BY THE PARLIAMENTARY COMMISSIONER FOR STANDARDS

MINUTES OF ORAL HEARINGS CONDUCTED BY THE PARLIAMENTARY COMMISSIONER FOR STANDARDS

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Prepared 8 July 1997