5 Lobbyists
67. Apart from the provision relating to the
frequency with which local authorities may publish newssheets,
the other provision of the proposed Code which has attracted significant
adverse comment from local authorities was that relating to lobbyists.
Clause 26 of the proposed code seeks to prohibit the use of 'private
specialists, contractors or consultants ("lobbyists")
commissioned with the intention to publish any material designed
to influence public officials, MPs, political parties or the Government
to take a particular view on any issue'. Clause 27 adds that 'Local
authorities should not incur expenditure to have stands or displays
at conferences of political parties to issue publicity designed
to influence members of political parties to take a particular
view on any issue'.
68. Although recognising the force of the argument
that councils should not be asking third parties to speak to Ministers
for them, the local authority representative organisations described
the provision on lobbyists as unnecessary and inappropriate. The
LGA's response to the consultation said:
Clearly it would be inappropriate for councils to
spend money on lobbyists when their in-house communications staff
could do a similar job, and all authorities should demonstrate
that the use of external providers passes a value for money test.
Bringing in expertise to work on a specific project—e.g.
to campaign for local transport improvements—can result
in significant economic benefits for an area, and is often cheaper
than employing staff directly.
London Councils' response, after noting the requirement
to publish all items of expenditure over £500 online, commented
[...] local authorities and the communities they
represent often have a direct interest in informing the development
of national policy-making, and ensuring the workability of parliamentary
legislation. There are therefore certain occasions when it is
entirely appropriate for councils to inform their dialogue with
government and other decision makers, and we do not believe that
councils should be prevented from hiring external expertise or
resources to support this work. The Department would not seek
to ban local authorities from contracting out cleaning or catering
services to the private sector if this were demonstrably more
cost-effective for residents; it is unclear why such a distinction
should be made for services which communicate policy. Indeed,
for some councils these services would arguably be better suited
to external contract, given their close correlation to time-defined
political cycles.
69. The Minister's argument in response to our
questioning on this issue essentially rested on two points: first,
approaching Ministers through lobbyists was ineffective, if not
actively counterproductive; and second, without central intervention
there was a risk of an "arms race" where if one authority
hired specialists to promote its case for, for example, inward
investment or regeneration expenditure, others would feel compelled
to do likewise.[82] He
also argued that expenditure on lobbyists had "got out of
control", suggesting that the amount of money being spent
on lobbyists had "grown very dramatically".[83]
This contrasted with the view of Cllr Kemp, representing the Local
Government Association, that "this is not done very often
[…] We can see from the Government's own figures […]
that this is another sledgehammer to crack a nut."[84]
70. John Findlay for the NALC questioned whether
the use of lobbyists should be addressed at all in a code about
local authority publicity, suggesting that "it might be better
addressed in a separate setting".[85]
Cllr Kemp, answering the same point, described the code as "not
[…] coherent" and "cobbled together".
71. The Secretary of State felt it necessary
specifically to justify the inclusion of this provision in the
code in the introduction to the consultation document. The Code
is being promulgated under section 4 of the Local Government Act
1986, which grants power to do so in the following terms:
The Secretary of State may issue one or more codes
of recommended practice as regards the content, style, distribution
and cost of local authority publicity, and such other related
matters as he thinks appropriate, for the guidance of local authorities
in determining whether to incur expenditure on publicity.
"Publicity" is defined as "any communication,
in whatever form, addressed to the public at large or to a section
of the public" (section 6(4)). The consultation document
says
The provision relating to the prohibition on the
use of lobbyists appears in the proposed Code as a consideration
that the use of lobbyists is related to the use of publicity,
in that it is one of the methods by which authorities might spend
taxpayers' money to influence people one way or another in relation
to political issues. It is therefore within the general ambit
of the code of practice.[86]
We find this argument unconvincing.
72. Similarly unconvincing were the Minister's
answers when pressed on what constituted a "lobbyist".
Small local authorities in particular may on occasion need to
buy in information and advice about complicated issues on which
they need to engage with Government. This provision of the Code
would appear to risk preventing them from doing so, because it
is not clear what is and is not caught by the terms 'private specialists,
contractors or consultants'. The Minister argued that "this
is like having a conversation about the difference between a doctor
and dentist. Everyone understands the difference between them."[87]
We are not, however, convinced that the distinction is so easily
drawn. Any specialist brought in by a local authority to advise
on a particular technical issue might be invited by that authority
to produce material 'designed to influence public officials, MPs,
political parties or the Government to take a particular view'
on the issue concerned; and we do not consider that it would necessarily
be poor value for money for them to do so.
73. We are persuaded that the
issue of the use of public money on political lobbying is an important
one which central government needs to address. However, we are
not persuaded that a code of practice on local authority publicity
is the correct tool by which to apply constraints upon such activity.
It is far from clear that the powers under which the Secretary
of State may promulgate the code are sufficient to bring this
issue with its remit; such a measure may therefore prove ineffective.
74. Nonetheless, we agree with
the Minister that the hiring of political lobbyists by local authority
to contact Ministers and Members of Parliament is a waste of public
money. We recommend that different arrangements
be made to address the use of political lobbyists by local authorities
in a manner that employs the new register of political lobbyists
created by the UK Public Affairs Council (UKPAC) in response to
the recommendations made by the Public Administration Select Committee
in the last Parliament.[88]
75. We recommend that the Government
work with representative organisations for all tiers of local
government, with UKPAC and with the Chartered Institute of Public
Relations Local Public Services Group to develop a Code of Practice
for local authorities on the use of lobbyists. Such a Code should
ensure close adherence to best practice and detailed attention
to cost effectiveness by all councils.
76. We also consider that any
future code of practice addressing the use of 'lobbyists' will
need to clarify more precisely than current proposals where the
use of consultants to give appropriate short term expert advice
(or the employment of short term contractors to fill key technical
or professional vacancies) will remain a legitimate course of
action for a local authority. This code should also specify that
the cost of hiring any such expertise be published, clearly identified,
so that councillors and local electors can make a clear choice
about whether such expenditure represents good value for money.
82 Qq 119-134. Back
83
Q123 Back
84
Q30 Back
85
Q33 Back
86
Condoc, para 12. Back
87
Q134 Back
88
http://www.cipr.co.uk/content/news-opinion/press-releases/5845/ukpac-register-of-lobbyists-now-open. Back
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