ANNEX A
Letter
to the Parliamentary Commissioner for Standards from Mr Harry
Barnes MP
I ask you to investigate
what seems to me to be a violation of Section 58, sub-section
1 of "the Guide to the Rules relating to the Conduct of Members"
(see page 2 of HC Paper 688) by Mr Howard Flight, the Hon Member
for Arundel and South Downs in an Oral Question to the Prime Minister
on 17 December (see column 325 of Hansard).
The Register of Members'
Interests (HC291) records Mr Flight as being Deputy Chairman of
Guinness Flight Hambro Asset Management Ltd and one of its registered
shareholders.
Mr Flight's question to
the Prime Minister involved advocacy against the Government's
proposals on Individual Savings Accounts (ISAs). These proposals
were issued by the Inland Revenue as a Consultative Document earlier
this month. I enclose an extract from that document, showing the
Government's proposals.
As its title indicates,
the Company for which Mr Flight is a remunerated director and
shareholder is involved in asset management and its operations
will be directly affected by the Government's proposals. He is
also a Director of 18 of its subsidiary and associated companies.
So although Mr Flight is
receiving a pecuniary benefit from Guinness Flight Hambro Asset
Management Ltd, he initiated a parliamentary proceeding in a matter
relating to the interest of that body. It is on the above grounds
that I ask you to investigate this matter.
In Section 58, sub-section
1 of "the Guide to the Rules relating to the Conduct of Members"
there is a note on what the initiating of a parliamentary proceeding
includes. In relation to Parliamentary Questions it covers the
tabling and asking of such questions.
The Questions which Mr Flight
tabled was on the Prime Minister's Engagements for that day, but
his supplementary question, which under the new procedure for
Prime Minister's Questions, was the only one Mr Flight asked and
had answered was on the new ISAs.
As it was clearly Mr Flight's
intention to raise the ISAs issue as a proceeding in the House
(and he succeeded in this objective), then I believe that he was
in violation of the requirements of the House's Code of Conduct.
I enclose relevant documentation
on this matter, including copies of Points of Order which I raised
in the House on Mr Flight's conduct, following Prime Minister's
Questions.
18 December 1997
Guidelines
on the application of the advocacy rule
"58. If a financial interest
is required to be registered in the Register of Members' Interests,
or declared in debate, it falls within the scope of the advocacy
rule. The Committee on Standards and Privileges has provided
the following Guidelines to assist Members in applying the rule:
1. Initiating
a parliamentary proceeding: When a Member has received, is
receiving or expects to receive a pecuniary benefit from a body
(or individual) outside Parliament, the Member may not initiate
any parliamentary proceeding which relates specifically and directly
to the affairs and interests of that body (or individual); any
client of such a body (or individual); any group, sector, category
or organisation whose affairs and interests are substantially
the same of those of the outside body (or individual).
[Note: "Initiating
a parliamentary proceeding" includes:
- presenting a Bill;
- presenting a Petition;
- tabling and asking
a Parliamentary Question;
- initiating, or seeking
to initiate an adjournment (or other) debate;
- tabling or moving any
Motion (eg an "Early Day Motion", a Motion for leave
to introduce a Bill under the "Ten Minute
Rule" or a Motion "blocking" a Private Bill;
- tabling or moving an
Amendment to a Bill;
- proposing a draft Report,
or moving an Amendment to a draft Report, in a Select Committee;
- giving any written
notice, or adding a name to such notice, or making an application
for and introducing
a daily adjournment
debate, or an emergency debate.]"
[Extract from The Guide to the Rules relating
to the Conduct of
Members, HC 688]
Extracts
from Hansard, 17 December 1997
Cols. 325-6
"Q7. [19636] Mr Flight:
Does the Prime Minister regret the lack of consideration given
to the proposals for individual savings accounts and the way they
were handled? Does he realise the fierce resentment that he has
aroused in Middle England, not only because the playing field
has been changed but because people in middle England who have
completed their tax planning will be hit with a £50,000 limit?
[Laughter] Labour Members might laugh, but middle England's
fury towards the Government is considerable. Does the Prime Minister
realise that it will be impossible to regulate individual savings
accounts because they fall into three different areas and, as
all regulators will tell him, there cannot be three different
financial products in one? Does the Prime Minister further realise
that ISAs offer nothing to the lower income groups that was not
available through personal equity plans and tax-efficient special
savings accounts? [Hon. Members: "Hurry up."] Will
the Government reconsider their proposals and the Minister responsible
for them?
The Prime Minister: First,
the proposals amount to £50,000 worth of tax-free saving
for an individual, and £100,000 for a couple. These are quite
significant sums of money. First, just to correct the hon. Gentleman
on two points, that is the amount of money that people can pay
into the fund: it is not necessarily the value of the fund, which
can rise to far more than that. Secondly, the proposals are not
retrospective, as the hon. Gentleman suggests.
As for the lower income groups,
it is estimated that around 6 million more people could get the
chance to save. The hon. Gentleman talked as though ISAs were
a bad deal for TESSA holders. There are 4.5 million TESSA holders,
but the limit on TESSAs is £9,000 and the money has to be
tied up for a considerable period. Under our proposals, the sum
can rise to £50,000 and the money can be withdrawn at will.
There is also an ability to put cash in, too. I suggest that
that is rather a good deal for low-income savers."
Col. 330
"Mr Harry Barnes (North-East
Derbyshire): On a point of order, Madam Speaker. It relates to
Prime Minister's questions. The hon. Member for Arundel and South
Downs (Mr. Flight) asked a lengthy question about personal equity
plans and individual savings accounts. However, the Register
of Members' Interests declares that he is deputy chairman of Guinness
Flight Hambro Asset Management Ltd. It lists associate companies
such as Guinness Flight Global Strategy Fund Ltd among others.
He has clearly been involved in advocacy on behalf of those bodies,
because PEPs and ISAs are in direct opposition to their interests.
Madam Speaker:
As the hon. Member and the House are aware, no Member has to declare
an interest during Question Time. If he has some point to make
- it seems that he has - he should approach the Parliamentary
Commissioner for Standards about the matters."
Col. 332
"Mr Barnes: On another
point of order, Madam Speaker. The point that I am attempting
to make may have been missed. The problem is not about an hon.
Member needing to declare an interest when asking a question.
It is a question of advocacy. Interests are recorded in the Register
of Members' Interests. The matter is for you, because you may
stop an hon. Member proceeding if advocacy is being engaged in.
Madam Speaker:
I do not enforce the regulation. It is for the Parliamentary Commissioner
for Standards to carry out such duties and for any hon. Member
- in this case Mr Barnes - to inform the Commissioner of the information
he has. It is not for the Chair."
Mr
Flight's entry in the Register of Members' Interests
as at 31st October
1997
FLIGHT, Howard (Arundel
and South Downs)
1. Remunerated directorships
Deputy Chairman, Guinness
Flight Hambro Asset Management Ltd.
Director of the following
subsidiary and associated companies:
Guinness Flight Global
Strategy Fund Ltd (Guernsey)
Guinness Flight International
Accumulation Fund Ltd (Guernsey).
(Director's fees for
the above two companies are credited to Guinness Flight Hambro,
not to myself personally).
Guinness Flight Fund
Managers (Ireland) Ltd. (Ireland) (unremunerated).
Guinness Flight Select
Funds PLC (Ireland) (unremunerated)
First India Asset Management
Ltd (India) (unremunerated)
Guinness Flight (Mauritius)
Ltd (Mauritius) (unremunerated)
Guinness Flight Fund
Managers Ltd (unremunerated)
Guinness Flight Hambro
Investment Management Ltd (unremunerated)
Guinness Flight Hambro
Portfolio Management Ltd (unremunerated)
Finistere Life Assurance
Company Ltd. (Guernsey) (unremunerated)
Guinness Flight and
Calder S.a.r.l. (Guernsey), re-named Guinness Flight Trustees
(unremunerated)
Guinness Flight Asia
Ltd (Cayman Islands) (unremunerated)
Guinness Flight Fund
Managers (Guernsey) Ltd (Guernsey) (unremunerated)
Guinness Flight Worldwide
Umbrella Fund Limited (Guernsey)
Plough Court Fund Management
Limited (unremunerated)
Guinness Flight Hambro
Global Fund Managers Limited (unremunerated)
Guinness Flight Hambro
Pacific Fund Management Limited (Hong Kong) (unremunerated)
Director, Halliday Flight
Halliday Ltd.;, family company, for receipt of income from any
articles and broadcasting activities.
2. Remunerated employment,
office, profession etc.
Member of Political Opinion
Panel of BPRI (Business Planning and Research International).
(£1-£1,000). Fees received are donated to Arundel
and South Downs Conservative Association.
8. Land and Property
House and 70 acres of mixed
rented farmland in Worcestershire, including approximately an
acre of land with planning permission, owned by my wife.
50% interest in a small
farmhouse in the Tarn area in France (pending disposal).
9. Registrable shareholdings
(a) Guinness Flight
Hambro Asset Management.
Halliday Flight
Halliday Ltd.
Extract
from the Inland Revenue's Consultative Document:
The new Individual
Savings Account,
December 1997
"5. Investors will be
able to choose the make-up of their account and invest up to a
specified amount each year within an overall investment limit.
This consultative document assumes an annual limit of £5,000
(of which no more than £1,000 may be in cash and £1,000
in life insurance) and an overall limit of £50,000."
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