Mr Peter Hain - Standards and Privileges Committee Contents


Mr Peter Hain



Introduction

1.  In our Fifth Report of Session 2007-08, published in February 2008, we informed the House that the Parliamentary Commissioner for Standards had submitted to us a memorandum on the progress of his investigation of complaints that the Rt Hon Peter Hain, the Member for Neath, had failed to register in the Register of Members' Interests within the required time limit all the donations he received in respect of his campaign for election as Deputy Leader of the Labour Party.[1] The Commissioner informed us that, with the agreement of the Chairman of the Committee, he had suspended his inquiry pending the completion of police investigations into Mr Hain's failure to report the same donations to the Electoral Commission. The matter had been referred to the police by the Electoral Commission on 24 January. In line with our policy on such cases, we agreed with the decision of the Commissioner to suspend his inquiry.

2.  The police completed their inquiries and passed a file to the Crown Prosecution Service in July 2008. It was not until December 2008 that the CPS announced there was insufficient evidence to charge Mr Hain with an offence under the Political Parties, Elections and Referendums Act 2000. The Commissioner informed us on 9 December that he was resuming his inquiry, a decision that we supported. We congratulate the Commissioner on completing his inquiry into this complaint within five weeks, notwithstanding that that period included the Christmas and New Year breaks.

3.  A copy of the Commissioner's memorandum on this case is attached at Appendix 1. In accordance with our usual practice, we have shown the memorandum to Mr Hain. Mr Hain has informed us that he does not wish to add to what he has already told the Commissioner.

The complaint

4.  The complaint against Mr Hain was brought by Mr David T C Davies, the Member for Monmouth. This was followed by complaints from Mr Bill Fry and from Mr Jeremy Wotherspoon. All three complaints related to Mr Hain's failure to declare to the Registrar of Members' Interests donations to his Labour party deputy leadership campaign totalling more than £100,000.

The Commissioner's findings

5.  Mr Hain registered ten donations he received to his campaign in the period to May 2007 within the four-week deadline for registering such donations; these came to £77,000. He registered two further donations late, in November and December 2007, with a combined value of £10,000. He registered 17 further donations late in January 2008, the oldest of them dating back to April 2007 and the most recent to November. The donations registered in January 2008 totalled more than £103,000.[2]

6.  The Commissioner has accepted Mr Hain's assessment that a change of personnel in his campaign team was an important factor in his failure to register donations to the campaign between May and November 2007 (the campaign ended on 24 June). Another important factor was the disbandment of the campaign team while donations were still coming in, and before the large debts that were incurred during the campaign had come to light. A further important factor was Mr Hain's failure to identify any continuing need for registration after it ceased in May 2007, until prompted to do so by one of his donors in November.

7.  At the time of the Labour leadership and deputy leadership elections, Mr Hain was Secretary of State for Northern Ireland and Secretary of State for Wales. Immediately after the elections, Mr Hain was made Secretary of State for Work and Pensions and Secretary of State for Wales. The Commissioner notes the pressures on Mr Hain as a senior member of the Government and that Mr Hain has accepted that he bore overall responsibility for ensuring that donations to his deputy leadership campaign were properly registered.[3]

8.  The Commissioner has upheld the complaints that Mr Hain failed to register in time all the donations he received for his campaign for election as Deputy Leader of the Labour Party.[4] He has accepted Mr Hain's assurances that all the donations he received had been registered by 11 January 2008.[5] He has also accepted that, once Mr Hain identified the oversight, he acted quickly and openly to address it, and that Mr Hain has both accepted responsibility for and rectified his errors. Finally, the Commissioner notes that Mr Hain apologised at the first opportunity.

9.  However, the Commissioner also concludes that Mr Hain's breach of the rules "was both serious and substantial."[6]

Conclusion

10.  This is a case of an experienced Member, a Cabinet Minister at the time, failing in his duty as a Member of Parliament to register donations within the time required by the House. We understand that the pressures on Ministers and on front-benchers can be onerous, but we cannot accept—and we are sure that none of them would suggest—that this excuses them from their obligations under the rules of the House.

11.  In his brief but thorough memorandum, the Commissioner has reported the outcome of his inquiries involving 19 cases of late registration of donations, totalling over £100,000. We agree with the Commissioner that Mr Hain's failure to register donations on this scale is both serious and substantial. We are bound to take this into account, notwithstanding the facts that Mr Hain has apologised unreservedly, and that he acted with commendable speed to rectify his omissions once he discovered them, without waiting for others to invite him to do so. Because of the seriousness and scale of this breach and noting the considerable, justified public concern that it has created, we would ordinarily have been minded to propose a heavier penalty. However, we accept that there was no intention to deceive and Mr Hain has already paid a high price for his omissions. We therefore recommend that Mr Hain apologise by means of a personal statement on the floor of the House.




1   Conduct of Mr Peter Hain, HC 324 Back

2   Appendix 1, para 45 Back

3   Appendix 1, para 59 Back

4   Appendix 1, para 55 Back

5   Appendix 1, para 59 Back

6   Appendix 1, para 59 Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2009
Prepared 22 January 2009