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Constitutional Reform and Governance Bill


Constitutional Reform and Governance Bill
Part 4 — Parliamentary standards etc

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      (4)  

An appointment under paragraph 1(e) is to be for a fixed term not

exceeding five years.

      (5)  

A person who has been appointed under paragraph 1(e) may not be

appointed under paragraph 1(e) again.

      (6)  

A person appointed under paragraph 1(e) ceases to be a member of

5

the Committee if the person becomes a member of either House of

Parliament.

      (7)  

A person appointed under paragraph 1(e) may resign from the

Committee by giving notice to the Committee.

      (8)  

The Speaker of the House of Commons may require the IPSA to pay

10

to members of the Committee appointed under paragraph 1(e) such

remuneration and allowances as the Speaker may determine.

      (9)  

The IPSA must make the payment accordingly.”

40      

Transparency etc

(1)   

The Parliamentary Standards Act 2009 (c. 13) is amended as follows.

15

(2)   

After section 3 insert—

“3A     

General duties of the IPSA

(1)   

In carrying out its functions the IPSA must have regard to the principle

that it should act in a way which is efficient, cost-effective and

transparent.

20

(2)   

In carrying out its functions the IPSA must have regard to the principle

that members of the House of Commons should be supported in

efficiently, cost-effectively and transparently carrying out their

Parliamentary functions.”

(3)   

In section 5 (MPs’ allowances scheme) after subsection (5) insert—

25

“(5A)   

When the scheme (or revision) is laid, the IPSA must publish in a way

it considers appropriate—

(a)   

the scheme (or revision), and

(b)   

a statement of its reasons for adopting that scheme (or making

that revision).”

30

(4)   

In section 6 (dealing with claims under the MPs’ allowances scheme) after

subsection (7) insert—

“(8)   

The IPSA must publish such information as it considers appropriate in

respect of—

(a)   

each claim made under or by virtue of this section, and

35

(b)   

each payment of an allowance by the IPSA under or by virtue of

this section.

(9)   

The IPSA must publish the information at times it considers

appropriate and in a way it considers appropriate.

(10)   

The IPSA must determine procedures to be followed by the IPSA in

40

relation to publication of the information, and in doing so must

consult—

 
 

Constitutional Reform and Governance Bill
Part 4 — Parliamentary standards etc

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(a)   

the Speaker of the House of Commons,

(b)   

the Leader of the House of Commons,

(c)   

the House of Commons Committee on Standards and

Privileges,

(d)   

the Compliance Officer, and

5

(e)   

any other person the IPSA considers appropriate.”

41      

MPs’ salaries

(1)   

For section 4 of the Parliamentary Standards Act 2009 (c. 13) (MPs’ salaries)

substitute—

“4      

MPs’ salaries

10

(1)   

Members of the House of Commons are to receive a salary for the

relevant period.

(2)   

The salaries are to be paid by the IPSA.

(3)   

Salaries are to be paid on a monthly basis in arrears.

(4)   

The amounts of the salaries are to be determined by the IPSA (see

15

section 4A).

(5)   

“Relevant period”, in relation to a person who is a member of the House

of Commons, means the period beginning with the day after the day of

the poll for the parliamentary election at which the member was elected

and ending with—

20

(a)   

if the person is a member immediately before Parliament is

dissolved, the day of the poll for the parliamentary general

election which follows the dissolution;

(b)   

otherwise, the day on which the person ceases to be a member.

(6)   

No payment of salary is to be made to a member before the member has

25

made and subscribed the oath required by the Parliamentary Oaths Act

1866 (or the corresponding affirmation).

(7)   

The duty of the IPSA to pay a salary to a member is subject to anything

done in relation to the member in the exercise of the disciplinary

powers of the House of Commons.

30

4A      

Determination of MPs’ salaries

(1)   

This section is about determinations under section 4(4).

(2)   

A determination may provide for higher salaries to be payable to

members while holding an office or position specified for the purposes

of this subsection in a resolution of the House of Commons.

35

(3)   

A determination by virtue of subsection (2) may make different

provision for different offices or positions or different classes of

member (and may include exceptions).

(4)   

A determination may include a formula or other mechanism for

adjusting salaries from time to time.

40

(5)   

A determination (other than the first determination) may have

retrospective effect.

 
 

Constitutional Reform and Governance Bill
Part 4 — Parliamentary standards etc

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(6)   

The IPSA must review the current determination (and make a new

determination as appropriate)—

(a)   

in the first year of each Parliament;

(b)   

at any other time it considers appropriate.

(7)   

In reviewing a determination (and before making the first

5

determination) the IPSA must consult—

(a)   

the Review Body on Senior Salaries,

(b)   

persons appearing to the IPSA to represent persons likely to be

affected by the determination or the review,

(c)   

the Minister for the Civil Service,

10

(d)   

the Treasury, and

(e)   

any other person the IPSA considers appropriate.

(8)   

After making a determination, the IPSA must publish in a way it

considers appropriate—

(a)   

the determination, and

15

(b)   

a statement of how it arrived at the determination.

(9)   

If the IPSA reviews the current determination but decides not to make

a new determination, it must publish in a way it considers appropriate

a statement of how it arrived at that decision.

(10)   

The IPSA may delegate to the Review Body on Senior Salaries its

20

function of reviewing a determination (but not its function of deciding

whether or not to make a new determination).”

(2)   

The first determination under section 4(4) of the Parliamentary Standards Act

2009 (c. 13) does not have to come into effect before 1 April 2012; and section

4A(6)(a) of that Act does not apply in relation to a Parliament that begins before

25

that date.

(3)   

Until the first determination under section 4(4) of that Act comes into effect, the

amounts of the salaries payable by the Independent Parliamentary Standards

Authority under section 4 of that Act are to be determined in accordance with

the relevant resolutions of the House of Commons.

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42      

MPs’ allowances scheme

In section 5 of the Parliamentary Standards Act 2009 (MPs’ allowances scheme)

after subsection (8) insert—

“(8A)   

Any duty of the IPSA to pay an allowance to a member is subject to

anything done in relation to the member in the exercise of the

35

disciplinary powers of the House of Commons.”

43      

Allowances claims

(1)   

Section 6 of the Parliamentary Standards Act 2009 (dealing with claims under

the MPs’ allowances scheme) is amended as follows.

(2)   

Omit subsections (4) and (5).

40

(3)   

In subsection (6) for paragraph (b) substitute—

“(b)   

provision for deducting amounts within subsection (6A)

from allowances payable under the scheme or salaries

 
 

Constitutional Reform and Governance Bill
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payable under section 4;

(c)   

provision about how such deductions, and deductions

under paragraph 5 or 12 of Schedule 4, are to be made.”

(4)   

After subsection (6) insert—

“(6A)   

This subsection applies to amounts which a member (under section 9(8)

5

or otherwise) has agreed to repay, in respect of amounts paid to the

member under the MPs’ allowances scheme that should not have been

allowed.”

(5)   

After section 6 of that Act insert—

“6A     

Review of IPSA’s determination

10

(1)   

This section applies if—

(a)   

the IPSA determines under section 6(3) that a claim is to be

refused or that only part of the amount claimed is to be allowed,

and

(b)   

the member (after asking the IPSA to reconsider the

15

determination and giving it a reasonable opportunity to do so)

asks the Compliance Officer to review the determination (or

any altered determination resulting from the IPSA’s

reconsideration).

(2)   

The Compliance Officer must—

20

(a)   

consider whether the determination (or the altered

determination) is the determination that should have been

made, and

(b)   

in light of that consideration, decide whether or not to confirm

or alter it.

25

(3)   

The Compliance Officer must give the IPSA a statement of any decision

under subsection (2)(b), and may include a statement of the

Compliance Officer’s findings about the way in which the IPSA has

dealt with the claim.

(4)   

The IPSA must make any payments or adjustments necessary to give

30

effect to the Compliance Officer’s decision; but it must not do so until—

(a)   

it is no longer possible for there to be a relevant appeal, and

(b)   

all relevant appeals have been withdrawn or determined.

(5)   

A relevant appeal is—

(a)   

an appeal under subsection (6) brought before the end of the

35

period mentioned in subsection (7), or

(b)   

a further appeal in relation to the Compliance Officer’s decision

which—

(i)   

is brought before the end of the usual period for

bringing such an appeal, and

40

(ii)   

is an appeal against the determination of an appeal

which was itself a relevant appeal.

(6)   

The member may appeal to the First-tier Tribunal against a decision of

the Compliance Officer under subsection (2)(b).

(7)   

The appeal must be brought before the end of the period of 28 days

45

beginning with the day on which notice of the decision is sent to the

 
 

Constitutional Reform and Governance Bill
Part 4 — Parliamentary standards etc

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member (unless the Tribunal directs that it may be brought after the

end of that period).

(8)   

The appeal is by way of a rehearing.

(9)   

On an appeal under subsection (6) the Tribunal may—

(a)   

allow the appeal in whole or in part, or

5

(b)   

dismiss the appeal.

(10)   

If the Tribunal allows the appeal (in whole or in part) it may—

(a)   

order the IPSA to make any payments or adjustments necessary

to give effect to that decision;

(b)   

make any other order it thinks fit.

10

(11)   

If the Tribunal dismisses the appeal it may make any other order it

thinks fit.

(12)   

The Compliance Officer must notify the IPSA of the Tribunal’s decision

(and the result of any further appeal).”

(6)   

In section 7 of that Act (information and guidance about taxation)—

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(a)   

before subsection (1) insert—

“(A1)   

The IPSA must—

(a)   

prepare guidance for members of the House of

Commons about making claims under the MPs’

allowances scheme;

20

(b)   

review the guidance regularly and revise it as

appropriate;

(c)   

publish the guidance in a way the IPSA considers

appropriate;

(d)   

provide to any member on request such further advice

25

about making claims as the IPSA considers

appropriate.”, and

(b)   

in the heading omit “about taxation”.

44      

MPs’ code of conduct relating to financial interests

Omit section 8 of the Parliamentary Standards Act 2009 (c. 13) (MPs’ code of

30

conduct relating to financial interests) and the italic heading before it.

45      

Investigations

For section 9 of the Parliamentary Standards Act 2009 (investigations)

substitute—

“9      

Investigations

35

(1)   

The Compliance Officer may conduct an investigation if the

Compliance Officer has reason to believe that a member of the House

of Commons may have been paid an amount under the MPs’

allowances scheme that should not have been allowed.

(2)   

An investigation may be conducted—

40

(a)   

on the Compliance Officer’s own initiative,

(b)   

at the request of the IPSA,

 
 

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(c)   

at the request of the member, or

(d)   

in response to a complaint by an individual.

(3)   

For the purposes of the investigation the member and the IPSA—

(a)   

must provide the Compliance Officer with any information

(including documents) the Compliance Officer reasonably

5

requires, and

(b)   

must do so within such period as the Compliance Officer

reasonably requires.

(4)   

The Compliance Officer must, after giving the member and the IPSA an

opportunity to make representations to the Compliance Officer,

10

prepare a statement of the Compliance Officer’s provisional findings.

(5)   

The Compliance Officer must, after giving the member and the IPSA an

opportunity to make representations to the Compliance Officer about

the provisional findings, prepare a statement of the Compliance

Officer’s findings (subject to subsection (7)).

15

(6)   

Provisional findings under subsection (4) and findings under

subsection (5) may include—

(a)   

a finding that the member failed to comply with subsection (3),

(b)   

findings about the role of the IPSA in the matters under

investigation, including findings that the member’s being paid

20

an amount under the MPs’ allowances scheme that should not

have been allowed was wholly or partly the IPSA’s fault.

(7)   

If subsection (8) applies, the Compliance Officer need not make a

finding under subsection (5) as to whether the member was paid an

amount under the MPs’ allowances scheme that should not have been

25

allowed.

(8)   

This subsection applies if—

(a)   

the member accepts a provisional finding that the member was

paid an amount under the MPs’ allowances scheme that should

not have been allowed,

30

(b)   

such other conditions as may be specified by the IPSA are, in the

Compliance Officer’s view, met in relation to the case, and

(c)   

the member agrees to repay to the IPSA, in such manner and

within such period as the Compliance Officer considers

reasonable, such amount as the Compliance Officer considers

35

reasonable (and makes the repayment accordingly).

(9)   

Before specifying conditions under subsection (8)(b) the IPSA must

consult the persons listed in section 9A(6).

(10)   

References in this section (and section 9A) to a member of the House of

Commons include a former member of that House.

40

9A      

Procedures etc

(1)   

The IPSA must determine procedures to be followed by the

Compliance Officer in relation to investigations under section 9.

(2)   

The procedures must in particular include provision about—

(a)   

complaints under section 9(2)(d),

45

(b)   

representations under section 9(4),

 
 

Constitutional Reform and Governance Bill
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(c)   

representations under section 9(5), and

(d)   

the circumstances in which the Compliance Officer must

publish the documents listed in subsection (4).

(3)   

Provision under subsection (2)(b) must include provision giving the

member who is the subject of the investigation—

5

(a)   

an opportunity to be heard in person, and

(b)   

an opportunity, where the Compliance Officer considers it

appropriate, to call and examine witnesses.

(4)   

The documents referred to in subsection (2)(d) are—

(a)   

statements of provisional findings under section 9(4),

10

(b)   

statements of findings under section 9(5), and

(c)   

agreements under section 9(8).

(5)   

The IPSA must also determine procedures to be followed by the

Compliance Officer as to the circumstances in which the Compliance

Officer must publish—

15

(a)   

statements under section 6A(3), and

(b)   

penalty notices under paragraph 6 of Schedule 4.

(6)   

Procedures under this section must be fair, and before determining

procedures the IPSA must consult—

(a)   

the Speaker of the House of Commons,

20

(b)   

the Leader of the House of Commons,

(c)   

the House of Commons Committee on Standards and

Privileges,

(d)   

the Compliance Officer, and

(e)   

any other person the IPSA considers appropriate.”

25

46      

Enforcement

(1)   

After section 9A of the Parliamentary Standards Act 2009 (c. 13) insert—

“9B     

Enforcement

(1)   

Schedule 4 (which makes provision about the enforcement powers of

the Compliance Officer) has effect.

30

(2)   

The Compliance Officer may provide to the Parliamentary

Commissioner for Standards any information connected with an

investigation under section 9 or action taken under Schedule 4 which

the Compliance Officer considers may be relevant to the work of the

Parliamentary Commissioner for Standards.”

35

(2)   

After Schedule 3 to that Act insert the Schedule set out in Schedule 5.

47      

Relationships with other bodies etc

After section 10 of the Parliamentary Standards Act 2009 insert—

“10A    

Relationships with other bodies etc

(1)   

The IPSA and the Compliance Officer must prepare a joint statement

40

setting out how the IPSA and the Compliance Officer will work with

the following—

 
 

 
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