Parliamentary Standards Bill

House of Commons

Session 2008 - 09
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Other Bills before Parliament

Parliamentary Standards Bill

Parliamentary Standards Bill
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A
Bill
To
Make provision establishing a body corporate known as the Independent
Parliamentary Standards Authority and an officer known as the
Commissioner for Parliamentary Investigations; to make provision relating to
salaries and allowances for members of the House of Commons and to their
financial interests and conduct; and for connected purposes.
Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and
consent of the Lords Spiritual and Temporal, and Commons, in this present
Parliament assembled, and by the authority of the same, as follows:—
Independent Parliamentary Standards Authority etc
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Independent Parliamentary Standards Authority etc
(1)
There is to be a body corporate known as the Independent Parliamentary
Standards Authority (“IPSA”).
(2)
Schedule 1 (which makes provision about the IPSA, and in particular provides
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for its administration functions to be carried out by its chief executive in
accordance with paragraph 17 of that Schedule) has effect.
(3)
There is to be an officer known as the Commissioner for Parliamentary
Investigations (“the Commissioner”).
(4)
Schedule 2 (which makes provision about the Commissioner) has effect.
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(5)
There is to be a committee known as the Speaker’s Committee for the
Independent Parliamentary Standards Authority.
(6)
Schedule 3 (which makes provision about the Committee) has effect.
Salaries and allowances for MPs
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MPs’ salaries
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(1)
The IPSA is to pay the salaries of members of the House of Commons in accordance
with the relevant resolutions of the House.

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(2)
That is subject to anything done in exercise of the disciplinary powers of the
House (as to which see further section 8).
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MPs’ allowances scheme
(1)
The IPSA is to pay allowances to members of the House of Commons in accordance
with the MPs’ allowances scheme.
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(2)
In this Act “the MPs’ allowances scheme” means the scheme prepared under
this section as it is in effect for the time being.
(3)
The IPSA must—
(a)
prepare the scheme;
(b)
review the scheme regularly and revise it as appropriate.
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(4)
In preparing or revising the scheme, the IPSA must consult—
(a)
the Leader of the House of Commons,
(b)
the Speaker of the House of Commons,
(c)
any committee of the House of Commons nominated by the Speaker,
(d)
the Review Body on Senior Salaries,
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(e)
the Treasury, and
(f)
any other person the IPSA considers appropriate.
(5)
The IPSA must lay the scheme (or revision) before the House of Commons.
(6)
The scheme (or revision) comes into effect on the date specified in the scheme
(or revision).
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(7)
The scheme may, for example—
(a)
provide for allowances to be payable in respect of specified kinds of
expenditure or in specified circumstances;
(b)
provide for allowances to be payable only on specified conditions (such
as a condition that claims for allowances must be supported by
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documentary evidence);
(c)
impose limits on the amounts that may be paid.
(8)
This section does not affect the provision of pensions for or in respect of
persons with service as a member of the House of Commons (see the
Parliamentary and other Pensions Act 1987 (c. 45)).
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Dealing with claims under the scheme
(1)
No allowance is to be paid to a member of the House of Commons under the
MPs’ allowances scheme unless a claim for the allowance has been made to the
IPSA.
(2)
The claim must be made by the member (except where the scheme provides
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otherwise).
(3)
On receipt of a claim, the IPSA must—
(a)
determine whether to allow or refuse the claim, and
(b)
if it is allowed, determine how much of the amount claimed is to be
allowed and pay it accordingly.
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(4)
Subsection (5) applies if—

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(a)
the IPSA determines that a claim is to be refused or that only part of the
amount claimed is to be allowed, and
(b)
the member asks the IPSA to review the determination.
(5)
If this subsection applies, the IPSA must—
(a)
review whether the determination was properly made, and
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(b)
in light of that review, decide whether or not to confirm or alter the
determination (and any necessary adjustments are to be made
accordingly).
(6)
The MPs’ allowances scheme may include—
(a)
further provision about how claims are to be dealt with;
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(b)
provision about deducting from payments of allowances amounts that
a member is required to repay under section 8(1) or that the member
has agreed with the IPSA to repay.
MPs’ financial interests and code of conduct
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MPs’ financial interests rules
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(1)
The IPSA must prepare rules under subsections (7), (8) and (10) to be observed
by members of the House of Commons.
(2)
In this Act “the MPs’ financial interests rules” means the rules prepared under
this section as they are in effect for the time being.
(3)
The IPSA must review the rules regularly and revise them as appropriate.
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(4)
In preparing or revising the rules, the IPSA must consult—
(a)
the Leader of the House of Commons,
(b)
the House of Commons Committee on Standards and Privileges, and
(c)
any other person the IPSA considers appropriate.
(5)
The IPSA must lay the rules (or revision) before the House of Commons.
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(6)
The rules (or revision) do not come into effect until they are approved by a
resolution of the House of Commons.
(7)
The rules must require members to register specified information about
specified financial interests in a register maintained by the IPSA.
(8)
The rules—
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(a)
must require a member who has a specified financial interest in any
matter to declare specified information about that interest before taking
part in any specified proceedings relating to that matter;
(b)
may require a member who has a specified financial interest in any
matter to declare specified information about that interest in other
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specified circumstances;

and the rules may require the declaration to be made in a specified way.
(9)
In subsection (8) the reference to a member who has a specified financial
interest in any matter includes a reference to a member—
(a)
who, in specified circumstances, had such an interest, or
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(b)
who knows that the member will have such an interest.
(10)
The rules must prohibit a member from—

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(a)
by any specified means, advocating or initiating any cause or matter on
behalf of any person in consideration of any specified payment or
benefit in kind, or
(b)
in consideration of any specified payment or benefit in kind, urging any
other member to advocate or initiate, by any specified means, any cause
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or matter on behalf of any person.
(11)
The IPSA must publish the register mentioned in subsection (7) in a way it
considers appropriate.
(12)
In this section “financial interest” includes—
(a)
a benefit in kind;
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(b)
an indirect financial interest (such as a financial interest of a member of
the family of the member concerned).
(13)
In this section references to a payment or a benefit in kind include references—
(a)
to a payment or benefit in kind to any person;
(b)
to an offer or agreement to make a payment or provide a benefit in
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kind.
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MPs’ code of conduct
(1)
The House of Commons is to continue to have a code of conduct
incorporating—
(a)
the Nolan principles;
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(b)
such other matters as may be determined by the House from time to
time.
(2)
“The Nolan principles” means the seven general principles of public life set out
in the First Report of the Committee on Standards in Public Life (Cm 2850) or
such other similar principles as may be adopted by the House from time to
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time.
Investigation and enforcement
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Investigations
(1)
The Commissioner may conduct an investigation if the Commissioner has
reason to believe that a member of the House of Commons—
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(a)
may have been paid an amount under the MPs’ allowances scheme that
should not have been allowed, or
(b)
may have failed to comply with the MPs’ financial interests rules.
(2)
An investigation may be conducted—
(a)
on the Commissioner’s own initiative,
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(b)
at the request of the IPSA, or
(c)
in response to a complaint by an individual.
(3)
For the purposes of an investigation, a member of the House of Commons and
the IPSA must each provide the Commissioner with any information the
Commissioner reasonably requires.
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(4)
After conducting an investigation, the Commissioner must make a report to
the IPSA on the Commissioner’s findings.

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(5)
The IPSA must determine—
(a)
procedures in relation to investigations under subsection (1);
(b)
procedures in relation to complaints under subsection (2)(c);
(c)
procedures in relation to the circumstances in which a report under
subsection (4) is to be published.
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(6)
The procedures must, in particular, provide a member who is the subject of an
investigation or complaint with an opportunity—
(a)
to make representations to the Commissioner about the investigation
or complaint;
(b)
to make representations to the IPSA in light of the Commissioner’s
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report.
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Enforcement
(1)
The IPSA may direct a member of the House of Commons—
(a)
to repay to it within a specified time an amount paid to the member
under the MPs’ allowances scheme that the IPSA determines, on the
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basis of an investigation under section 7 or otherwise, should not have
been allowed;
(b)
to take any steps necessary to correct an omission or inaccuracy, in
relation to the member, in the register maintained by it under
section 5(7) (register of financial interests).
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The IPSA may publish a direction that it has given.
(2)
The IPSA may recommend to the House of Commons Committee on Standards
and Privileges that the House should exercise any of its disciplinary powers in
relation to a member of the House.

The IPSA may publish a recommendation that it has given.
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(3)
If the IPSA proposes to give a direction under subsection (1) or to make a
recommendation under subsection (2), the IPSA must give the member
concerned an opportunity to make representations to the IPSA.
(4)
Subsection (5) applies to a failure by a member of the House of Commons to
comply with—
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(a)
the MPs’ financial interests rules,
(b)
the duty in section 7(3), or
(c)
a direction under subsection (1).
(5)
The failure—
(a)
may be punished by the House of Commons in exercise of any of its
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disciplinary powers, but
(b)
otherwise, is not to have any legal effect (subject to section 9).
(6)
The IPSA must, with the agreement of the Speaker’s Committee on the
Independent Parliamentary Standards Authority, prepare a statement (a
“protocol”) setting out how the following are going to work with each other—
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(a)
the IPSA,
(b)
the Commissioner,
(c)
the House of Commons Committee on Standards and Privileges,
(d)
the Director of Public Prosecutions,
(e)
the Commissioner of Police of the Metropolis, and
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(f)
any other person the IPSA considers appropriate.

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(7)
Before preparing a protocol the IPSA must consult each of the persons
mentioned in subsection (6)(b) to (f).
(8)
Nothing in section 7 or this section shall prevent the House of Commons
exercising any of its disciplinary powers otherwise than following an
investigation by the Commissioner or a recommendation by the IPSA.
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(9)
The fact that a member of the House of Commons is, or has been, the subject of
criminal proceedings in respect of particular conduct (whether or not
convicted of an offence) does not stop a power conferred by or mentioned in
section 7 or this section being exercised in relation to that conduct.
(10)
References in this section to the disciplinary powers of the House of Commons
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include, in particular, the power to—
(a)
determine that a member’s salary is to be withheld for a specified
period;
(b)
suspend a member from the service of the House for a specified period;
(c)
expel a member from the House.
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(11)
In this section “conduct” includes omissions or statements.
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Offences
(1)
A member of the House of Commons commits an offence if the member—
(a)
makes a claim under the MPs’ allowances scheme, and
(b)
provides information for the purposes of the claim that the member
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knows to be false or misleading in a material respect.
(2)
A member of the House of Commons commits an offence if, without
reasonable excuse, the member fails to comply with a requirement included in
the MPs’ financial interests rules by virtue of section 5(7) (registration of
interests).
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(3)
A member of the House of Commons commits an offence if the member
contravenes a prohibition included in the MPs’ financial interests rules by
virtue of section 5(10) (prohibition on paid advocacy).
(4)
A person guilty of an offence under subsection (1) is liable—
(a)
on summary conviction, to imprisonment for a term not exceeding
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12 months or to a fine not exceeding the statutory maximum or to both;
(b)
on conviction on indictment, to imprisonment for a term not exceeding
12 months or to a fine or to both.
(5)
A person guilty of an offence under subsection (2) or (3) is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.
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(6)
In the application of this section—
(a)
in England and Wales, in relation to an offence committed before the
commencement of section 154(1) of the Criminal Justice Act 2003 (c. 44),
or
(b)
in Northern Ireland,
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the reference in subsection (4)(a) to 12 months is to be read as a reference to
6 months.